good afternoon and welcome to capital account i'm lauren lyster here in washington d.c. and more m.f. global exacts adam to the list of people who say they don't know where the missing customer money is. that you can gamble for your phone where's the money senator unfortunately i do not know where the the money is. that happened on the hill today former c.e.o. john kors line of course said something similar at a hearing last week he was there today to again testifying meanwhile farmers and customers who can't get their money are dumbfounded retail investors say they've

lost their trust in the sanctity of customer accounts we'll talk to one of them gerald celente to find out what is going on with his money and the strait of hormuz the most important oil transit channel in the world well after reports that iran will hold drills to close it boil prices this morning spiked modestly above one hundred dollars a barrel reportedly on summers that it was closed more importantly though does announcing these military exercises drive home the point that iran has the capacity to make life miserable for oil consumers around the world and the fed announced as it will keep rates near zero makes no big policy changes if the final effluents the meeting of the year it remains to be seen though if wishing ben bernanke a happy birthday is the best or most exciting thing that will come out of the minutes when when they're released three weeks from now if you turn fifty eight today let's get to. day's capital account.

today m.f. global's former executives the chief financial officer and the chief operating officer testified on the hill they told the senate agriculture committee they don't know how an estimated one point two billion dollars in customer money went missing . she think campbell where's the money senator unfortunately i do not know whether the money is salvo where's the money senator as i said in my statement but i do not know where the money is unbelievable if you feel like you're having deja vu if you feel like you've heard this before that's

because you have you heard it last week when former m.f. global c.e.o. john corazon testified on the hill before the house agriculture committee simply do not know where the money is or why the accounts it's not been reconciled to the. there you have it he was on the hill again today dodging the question and today though is a little different this is the first time he's come before his former colleagues in the senate remember john course i was a senator he's also a governor and former c.e.o. of goldman sachs before taking the reins at m.f. global and being at the helm as m.f. global disclose more than six billion dollars on european sovereign debt a bet that went bad a capital shortfall they went bankrupt and client money went missing i wonder though how this all sits with customers who've had their accounts frozen well let's catch up with gerald celente and see what's happening with his money he's founder of trance research institute and publisher of the trends journal but if you recall

he made a rather large splash when he came on our show in november on the fourteenth and told us how he got a phone call and found out that six figures according to him of his money in an account with lin waldock was with a trustee for m.f. global and he couldn't get any answers and he certainly couldn't get his money gerald welcome back to the show it's so nice to see you of course now we've seen a lot more heard some more from m.f. global former exacts so i don't know how much that really comforts someone like you one point two billion dollars of course is the estimate of what's missing the last time we spoke six figures of that you believed was yours trustees reportedly set in motion the return of four billion dollars in funds so we've heard have you heard if you're going to get your money back or has anything moved for you or has a move of course i put in the claim but that senate hearing lord is nothing more than a why it was that the white shoe boys get

a free ride once again how come this guy hasn't been diving who who could get away with the law and why i don't know or have been to one point two billion dollars and it's a month later you know i just read that they sent him a predator drone. own up in wyoming or north dakota or some place because they claim that these guys stole six cow they brought in the swat teams you know the whole big deal this guy jawn cause on i can't find one point two billion dollars and he gets a free ride from his senator's friends with all these solve all solve more requests and yet i thought anybody in the in the business knows what the deal is and i know people in the business and they'll tell you right away they know what's

going on these funds don't disappear you have to listen to the language listen to what chorus zines says quote i never gave any instructions to misuse customer funds oh of course he didn't say go steal the cats money right you know he just said go use it because we need it just as just a whitewash and you're let me get in here because you're not the only person saying that you know we had a former rep former regulator william k. black on this show last week when corazon was testifying he of course prosecuted the bankers during the savings and loan crisis oversaw more than ten thousand criminal referrals and we thought hey is this a buyable excuse for the c.e.o. to say he doesn't know where the money is and he said no way because there's too much i want to play what he said. not a dollar of this. the underlying problem if you're too

much in terms of client funds is because you've got a huge clicquot to the problem. to have been something that the c.e.o. would have been dealing with i'm not just on a daily basis but an hourly basis so he doesn't buy it and you don't buy it if you were on the hill today you being a customer who's had their money frozen and put in a claim doesn't know what's going to happen what will you want to say to these guys to john corazon and the other exact and ask them well again you see this isn't the forum to do it he should have been indicted you know they should have had pros on those job really grilling him and questioning him and that's not what's going on so regardless of what questions you ask on this forum without an indictment nothing is going to happen the guy is free to do is eat pleases and is also another bunch of information out here that's not being put out for example it was only until

a month before the the company crashed that moody's downgraded their their rating when it was moody's all long before this the company that used to rate triple junk triple as a hair added again and then you look at the c.m.a. group the chicago mercantile exchange or as i'd like to say the chicago mafia and surprise i heard that guy clarence duffy who talk today is well say year ago that the semi group. was the guarantor and that they had a hundred billion that's with a b. one hundred billion dollars to cover losses like mine i'll tell you what's going on warren i don't believe anybody has the money i don't believe the c.m.e. has the money to back it i don't think they have the gold to deliver and that's why i didn't get mine and other customers there's a lot more going on here than they're putting out in public and well and gerald we

heard from farmers we heard from other customers that have lost their money or that haven't seen their money and one farmer was saying today at the hearing that you know he heard of global was in trouble he called he followed up about his money they said no one has ever lost a penny in a segregated account don't worry what happens a couple days later and that bubble goes bankrupt declares bankruptcy and he can't see his money so my question to you as being someone who's been in a similar situation so my position do you trust your money as a retail investor any more to be safe do you trust in the financial system not at all not at all and that's why by the way i had a contract to pick up gold in december now and now but i didn't think you know this is the first time in the history that the exchanges of a done this and let the customers go bankrupt no that's why i always recommend gold and silver if you don't have it your pocket your money why do you think they came

up with those stories all over the years of people putting their money in the fact is because of the corrupt system and look what's going on to lithuania look what's going on in greece and italy there are runs on banks people of pulling it out knowing that this is coming down oh and by the way it's very important with these guys these front men for m.f. talking today mark my words they're going to come up with a full god somebody way down the wind and probably with a name like you know says i was just. some indian you know it's easy not to like an indian oakum up with a fall guy to take the hit and cause zein and his buddies will walk free there's your protection gerald if you are giving other people advice and we're almost out of time i just need a real quick answer would you tell them to follow the people that we see lined up in latvia and get their money out of firms like this i could only speak for myself

i only have operating expenses in the banks and nothing more we are forecasting we're coming out with our trends so twenty twelve economic martial law of some sort in twenty twelve the systems are collapsing and there's no way of saving them gerald celente i want to continue the conversation because there's more i want to get to but we thank you so much for giving us that update on what's going on with you personally with m.f. global as well as your analysis that was gerald solenn founder of trends of research institute. all right it's time now for word of the day where we break down a financial term or concept for our very smart viewer but just maybe not the financial expert and today it is f o m c the federal open market committee and

we're doing it given that they met today they made an interest rate decision and it's drawing some headlines here's one from this morning it said the u.s.d. the u.s. dollar of course struggles ahead of the f o m c rate decision and now this afternoon they announce rates will remain near zero this is no change more of the headlines then said f o m c takes no action or no big surprise there but what is that oh and see exactly it is this it is the branch of the federal reserve board that determines the direction of monetary policy using three major tools including raising or lowering the discount rate adjusting reserve requirements and engaging an open market operations which we've done is the word of the day so go look at that on our website now the f o m c holds eight regularly scheduled meetings per year and today was their last meeting of the year now the most significant discussions at the f o m c are invariably decisions reached on open market

operations which is just a fancy way of saying buying or selling assets in the open market now if the fed wants to expand the money supply pushing down rates it prints money and buys fixed income assets things like treasuries and more recently mortgage backed securities it wants to contract the money supply and then raise rates as a result it sells fixed income assets from its portfolio now minutes are ordinarily made available for these meetings three weeks after the o. f. and f o m c holds them and this is the clincher though this is really where the federal reserve policies are made so when you hear us talk about quantitative easing or operation twist look no further than the f o m c as the culprit. and figureheads stay right here still ahead on the capital account you better watch out and we are telling you why jim cramer has some stocks for underneath the christmas tree but is this just part of his plan to sell high this holiday fees

that and first your closing numbers. you just put a picture of me when i was like nine years old until she told the truth. i'm a confession i am a total get a princess i love driving hip hop music and for. that he was kind of the jester day. i'm very proud of the will without you sure has played. oh oh oh. oh. you know

sometimes you see a story and it seems so. you think you understand it and then you glimpse something else you hear sees some other part of it and realize that everything you thought you knew you don't know i'm sorry welcome is a big issue. what drives the world the fear mongering used by politicians who makes decisions to break through it's already been made who can you trust no one who is you know view with the global machinery see where we had a state controlled capitalism is called sash. when nobody dares to ask what we do are to question more.

welcome back today there were rumors circulating that the strait of hormuz was closed for military drills they were rumors that turned out not to be true but this is the stuff oil traders buy and sell on and reportedly you see that spike their oil went up to more than one hundred dollars a barrel as a result reportedly when we saw brant crude jumped to one hundred eleven dollars a barrel more importantly though these rumors were because of a report from a high ranking iranian official that iran's military will practice sealing off its strait of hormuz a move showing iran's capability to disrupt the world's oil supply and make live lousy for customers around the world oil consumers around the world now this strait of hormuz is otherwise known as the world's most important oil transport channel about fifteen point five million barrels of oil go through there a day about

a sixth of global consumption flows through it bloomberg reported now. a founder of trance research institute i want to break bring him back into the conversation because i want to talk to him about this as well some other stories going on jerrold i want to bring you back and before we move on to this i want to just back to m.f. global ask you one more question because you kept saying there's something else going on here there's something else going on here and i really wanted to get at the root of what you really think that is and one thing that came up for us is are you are you suggesting anything having to do with gold that you don't think maybe there's enough physical gold to meet the paper obligations or claims exactly i don't think that callbacks has it and i've been hearing stories coming out that what they are delivering is in the line is that it's supposed to be and i also don't believe the chicago mercantile exchange has the money to back what they said they were going to do again you know we've said the video out of terence does the

over a year ago the c.e.o. of the see me say that they have one hundred billion dollars in collateral. so you know so when deals go bad like the m.f. global did customers would lose their money they can't come up with what five hundred million they've come up with i mean we're talking one point two billion and you're claiming that you have one hundred billion in collateral to cover this so no something's wrong here there's a lot more going on than meets the eye and also let's put this in perspective lord we're talking about the eighth largest bankruptcy in american history that this is huge yeah and the implications of far reaching so they work they're doing is they're trying to narrow it down into like a one a wall and i'm saying there's a lot more going on with other institutions that well as well that are ready to come down because remember it was all only until september that moody's downgraded

the rating of m.f. global so i think there's a lot warmer trouble out there that they're not showing and indeed just to follow it up one more question on that do you think this is a canary in the coal mine as far as insolvent firms are firms that have made bad bets and are getting away with that or dipping into customer accounts or something having to do with physical gold and that not having enough available combination of all three i don't care which institution it is they're over leveraged they're over gambled they have a lot are rotten as sets on their books and that's what the whole situation is about whether it's in the united states or over in europe holding a lot of bed paper and having made a lot of bed that's and they're robbing customers accounts robbing celebrities to pay to pay the goldman sachs gang if you will ok well you know i want to thank you for sharing those thoughts with us i want to switch gears though i do want to bring

up the strait of hormuz story because we saw oil increase kind of on this. rumor but there was a report from an iranian official substantiating that they are planning or you know claim to be planning to hold some kind of a drill to close the strait of hormuz of course this is a major threat in terms of how much oil passes through here just to give an example an energy analyst i've spoken to says that and the event of any kind of combat that would close the strait of hormuz you would see oil prices go up in fifty dollar leaps to two hundred fifty dollars a barrel he predicted does this just show how precious oil has become you know it shows a lot more than the house it shows that we're on the verge of something that could explode into a major geo political conflict let's let's put all the ducks in a row of the here last month iran suffered why the last several days two major hits one on the uranium processing facility another one on

a missile testing facility then they also shot down a u.s. drone over the territory suppose a drone iranian drone was shot down over the united states you know we'd all be hard red alert yet a big said the missiles so rinse or rod worth so then touching on this point i want to bring up a chart for our viewers so that they can see how many u.s. military bases surround iran and they're just all over the place around the country so if you are on and many are suggesting that the united states are questioning whether the united states is already waging some kind of covert war against iran if you are wrong would you be doing the same thing holding drills to close this very important strait well again this is war already because the other one i was going to mention on the sanctions iran is the third largest oil exporter in the world behind russia and saudi arabia and a lot of that oil goes into europe and now the europeans are cutting them out of

the market you take greece for example you cite thirty percent twenty percent of greece's oil so now they say. look we're loaning you the money to bail you out you're not going to boy iranian oil so what dick they are creating a state of war by closing all of their ability to earn a living and it's going long worldwide and it's a great how wars start it's i hear what you're saying really quickly before we go because i brought up the f o m c meeting i'm almost out of time with you but no big change their rates are near zero however it is ben bernanke is birthday do you have any quick birthday wish for him. now that i don't care less about yeah. you're going to fast today on the way i have never seen you at a loss of words words general i don't want to say that bad about down on his birthday fair and all right thank you for being on the show that was gerald celente

founder and publisher of the trends research journal. all right we've talked about gerald's the lead to a missing is money he says gerald solenn taser gun rod to pay the goldman sachs now let's talk about who else might be getting rod and to the benefit of who i want to bring in our producer dimitri kofi and us as well as shannon donahoe in the control room to talk about this one because jim cramer of course very well known host of mad money on c n b c says he has the perfect gift for your children this holiday season and you know it looks like kids are even fans of jam and really listen to his advice listen to this. oh.

so he has stock picks that he's issued for christmas gifts or holiday gifts for children that he's suggesting but we want to bring up some of his suggestions he's got on there apple computers and viacom ok why are these interesting well because when this story was published kramer's charitable trust own them also mcdonald's honeywell conoco phillips these are funny because what is he telling kids to get invested in getting that being a war contractor and pillaging the world for oil. you know i think i remember the famous video that was circulating around where he talked about. basically creating sort of level of market activity and a fiction around the stock. if you want to stock up you pumped it up with one of down shut it down and this could really be an attempt by you know it's we all know that kids love stories in general and fiction and fairy tales so i think you kind

of moving to an easier prey thread for the holidays jim a just one of the pump and some of these stocks up pump because it's because the buy them you know create a fiction pop the stocks up in the dump and you know and make and i think it's the moans apple and viacom to have the companies that he's suggesting is this child exploitation i mean if you search on load some of those stocks are in the face of the show this is a blow up for christmas and i think you know what we'll worry about there shannon when you think about buying your kids mcdonald's stock for christmas with a happy meal on the side. i wouldn't buy the stock and i wouldn't buy them a happy meal either but you did buy a green bay packer stock you did not suffer get that but it's clearly a different story all right and it's also not on jim cramer's list so let's move on continuing in the holiday spirit we have all seen commercials on repeat this one. buy it on layaway well it's. seems i didn't even know people still do that until we

saw this story it seems some secret santa has in michigan in california got the hint and they have been donating money to pay off people's layaways donations of up to two grand have been reportedly given paying off fourteen layaways i want to know if someone like you is behind this dimitry someone who is an austrian you can economists who is saying we want to reward people who are who know that debt is the problem because they're not taking credit cards like everybody does and buying their purchases at k.-mart on those they're putting things on layaway the old fashioned way where they can afford them well i think i think it's more interesting here is that they're basically paying down the paying down the they're getting help to pay down the debt no it's not that it's on layaway that's the point is that you i want to. tell the audience that i didn't know if this dimitri didn't know what this was apparently he's always been able to afford everything right when he needed it but layaway is what people have done when they want to lock something down and

pay a little bit at a time for it until they can afford it shannon you love this story why. i just think i mean people being secret santa you know sometimes it's like oh i don't know it by someone but these people are paying off i mean people who are used layaway i would assume that there are people who need some help in the money department and these people are paying off their entire layaways making everybody's christmas a little bit brighter but once a door wanting to buy on good retreat you're the person who says the debt is the wrong thing but isn't the way was i don't get a lay away is in debt it's where you're going to. talk to me just for getting a definite date of the last you know what you know when body because we're out of time but we got to go explain to a way to dimitry that fit for our show thank you so much for for tuning in and feel free to follow me on twitter at lauren lyster also please go to youtube dot com slash capital account become lessers subscriber if you're not already you can see

all of our shows our interviews are passwords of the day up there you can also give us your feedback which you know we will respond to on friday if it's the best i'm more in leicester and until tomorrow from everyone here at capital account have a great night. wealthy british style sun. it's no time to. go to. market why not. find out what's really happening to the global economy with mike stronger or no holds barred look at the global financial headlines tune into kaiser report on our you know sometimes you see

a story and it seems so you think you understand it and then. something else here sees some other part of it and realized everything you thought you knew you don't know. welcome to the big picture. me it is easy to. be a.