believin to return to the gold standard you are now officially an extremist according to the f.b.i. yeah we got of just where we want you know they're trying to keep the gold price keep because it makes a mockery of the us dollar so the f.b.i. is saying if you buy gold you're a terrorist thus increasing the panic buying of gold around the world this is just like the federal reserve chairman ben bernanke trying to talk his way into some kind of economic nirvana which is failed miserably now the f.b.i. believes that their hospitality economists are going to talk gold down yeah right that's going to happen you idiots you're only going to cause more panic buying i will ball or. in fact it's actually worse than what this headline from zero hedge suggests they are saying that if you believe in a return to the gold standard you're in extremis according to the f.b.i. in fact is actually if you think that the u.s. government went bankrupt by going off the gold standard you're an extremist now you

know look at the full context however of the f.b.i. warning f.b.i. warns of threats from anti-government extremists now if it weren't for the goal warning you would think these were bankers anti-government extremists opposed to taxes and regulations pose a growing threat to local law enforcement officers in the united states the f.b.i. warned on monday these extremist sometimes known as sovereign citizens believe they can live outside any type of government authority the f.b.i. said the extremists may refuse to pay taxes defy government environmental regulations and believe the united states went bankrupt by going off the gold standard i know i like the way they refer to it in the past and they say the f.b.i. saying that the united states went bankrupt when they got off the gold standard

guess what the u.s. got off the gold standard and they filled the economy worth of now fifteen plus trillion in debt that's true if they went bankrupt so the f.b.i. is saying if in fact you pick up a history book if you look at a fact on the internet if you speak with a neighbor about the fact of the reality of the bankruptcy united states oh you're going to we're going to come after you and we're going to cause massive global panic buying of gold because this whole smart we are the f.b.i. mentions that these so-called sovereign citizens are committing many crimes mostly white collar crimes of fraud they say again if it were not for that one single sentence of gold standard issue you would not. no the difference between who they're talking about and bankers how many taxes did goldman sachs or j.p. morgan pay last year max about one percent of income general electric zero ok so the these extremist refused to pay taxes how many regulations does jamie diamond

say he wants to abide by. he goes to other countries like canada and gets them to go around their own regulations exactly however we're going to turn to some more extremism max how your dollar got to be worth just three point eight cents this is an extremist chart from credit suisse bank on the extremist web site business insider dot com and you can see from the chart on the read the rising prices notice how prices really started to take off max after nineteen seventy one the blue is the purchasing power in one thousand nine hundred dollars now notice the two huge catastrophic drops of about fifty percent at a ten year period when your purchasing power dropped by fifty percent the first time nineteen ten to one nine hundred twenty what happened in that ten year period . the federal reserve was created then the second one thousand nine hundred seventy

two one thousand eighty do you remember what happened in that ten year period max unlike me we went off the gold standard so this is an extremist chart you might be arrested for looking at it. that's correct as you point out from one nine hundred seventy one when the u.s. went off the gold standard to the president the dollar lost like ninety seven percent of its value it's about believe it or not it's about to lose another sixty or seventy percent of its value ben bernanke he is self in his recent testimony said by inflation targeting he wants the u.s. to lose thirty three percent of its purchasing power over the next five to six years ok so by all the f.b.i.'s definition they should be frog marching ben bernanke out of the federal reserve into the prison system but i don't get it was worth the double standard that oh that's right your panic people buy into panic buying and gold smart move now again we're going to turn to an extremist series of

maps here and you'll find that in fact. the reason why the f.b.i. is warning i believe a against people saying the u.s. went bankrupt by going off the gold standard if you look at these series of charts from one nine hundred seventy to one thousand nine hundred to one thousand nine hundred to two thousand what you notice is that in fact in one nine hundred seventy the u.s. was already bankrupt and then they went off the gold standard if you look at the rest of the globe and all these maps from zero had in fact the rest of the world was pretty solvent while the u.s. was going bankrupt but what happened once the u.s. and the rest of the world went off the gold standard the rest of the world became bankrupt you know because of the toxic derivatives that are floating in all the other banks around the world that are manufactured in the united states because the u.s. is of the gold standard and as you point out in the seventy's they were already bankrupt because of the vietnam war that they couldn't pay for and i noticed that the f.b.i. has issued a statement saying that unless america gets out of these wars if they can't pay for

it will continue to be bankrupt i don't see the cia or obama saying that unless america stops these wars around the world that they can't pay for that the u.s. will continue to be in bankruptcy so that those words are not in the dictionary down there at langley or ever you're hanging out watching this show and panic buying gold i know you are again let's return to this last chart there the last map of the external debt to g.d.p. . when it's a gold standard if the us had was in debt they had a trade deficit that meant they had to sell and their gold to friends they had to send gold to britain meaning that britain had a surplus and they were not in debt and they were not bankrupt however as you see from this last chart here in the last decade every single nation on earth is bankrupt therefore where is the wealth going to come from we are all bankrupt but excellent points and you know and the use of the language is really phenomenal

like this use of the word sovereign if you wish sovereignty or terrorist i mean this is exactly what they're telling the people in greece people in greece would like economic sovereignty to the people of greece would like sovereign say but the troika the i.m.f. the e.c.b. and whatever other for dr organization they got down there saying that no sovereignty is for job you want to be a debt slave you want to be a chimp like us here take more debt and the greek people are like well gosh i'm not sure is really what we should be doing while we're eating our civil. speaking of greece we have greece in the headlines max dramatic drop in budget revenues now this might be an extremist language here too but finance ministry in greece is reporting that january data shows a revenue decline of seven percent against their budget projections of a rise of eight point nine percent it's in freefall like argentina for the same reason the other clip the crabs come in and steal all your money now the economy is in freefall and it's going the way of all flesh into the terminal decline in the

greek experiment only five thousand years old is finished and remember it's the people who have been for the last few years resisting the i.m.f. and the e.u. and the troika they're the extremist we're still value added tax receipts posted an eighteen point seven percent decrease last month from january this follows a last year here's a headline max greece increases reduced vats and austerity measures so to get the last round of bailouts they had to increase their of that from thirteen percent to twenty three percent on food it's resulted in a catastrophic decline in revenues the person lusaka is skyrocketing so nobody can afford it anymore to make a good. use of old grapes and all of. well the finance ministry officials attribute the slump that receipt figures to the major cash flow

problems that enterprises are facing some of the latter are choosing not to pay for their vatican order to plug other holes caused by liquidity problems well the whole thing is a farce because the i.m.f. came in and they said if you don't take these austerity measures we're going to we're going to have to cut you off the record of supply in your economy will go into freefall and you lose your bond rating so then the rating agencies came in like moody's and s. and p. and said well because of the austerity measures that you put in place in your country are going to cut your credit rating anyway so the bond market collapse the income is collabs the g.d.p. is collapse the entire sovereignty is collapsed the use of the word sovereignty is not considered a terrorist act and the people are out in front of the parliament building and jump to a square. well max now plugging these holes is the only thing we have since going off the gold standard the story about the vat receipts declining because enterprises are plugging their holes or taking any cash they get and

filling in their debt holes their black holes of debt it sounds like what happened with m.f. global of course. the other thing of global. the most are from the did come from global. this is only the most beef from customer lobbies segregated accounts we respect them we just feel the money. well here's a headline on m. of global to mulch with last days an m.f. global collapse and investigation in the us by the trustee for m.f. global has revealed the brokerage misuse customer funds five days before the new york based parent company filed for bankruptcy in october the three month investigation into the us parent also shed light on the growing chaos inside m.f. global during its final days as customers were pulling funds from the broker that specialized in derivatives and high risk trading products now. who

actually went bust whose money was stolen it wasn't people engage in high risk trading products this is the same sort of propaganda that we see in the first headlines you can act like a banker you cannot pay taxes you you cannot believe in regulation you could dump all sorts of toxins into the environment but as long as you don't believe in the gold standard you're fine here the same thing these were small farmers mostly who had all of their money stolen but to the population at large they're saying they were engaged in high risk trading right the small farmers who use the futures markets to reduce risk of farming this is what futures markets are created but in the last days of m.f. global the speculators like or zine and jamie diamond who are taking the opposite trade from the farmers and leveraging that by a thousand times and then putting that risk out into the public domain to be absorbed by the derivatives market that ends up being forced it on countries like greece anyway they're the ones are being victimized who look to them more booze.

i couldn't buy my yacht made less most. other jamie diamond. cries and there should be a permanent booth marked up this guy's keester but no he just goes to the street like everything's fine even though he's the fricken terrorist. ok stay there with thanks so much for being on the kaiser report thank you max don't go away much more coming away so stay right there.

well. it's technology innovations all the developments around russia we've got the future covered. and. i am asked guys are welcome back to the kaiser report time now to go to new york and speak with francine mckenna who operates a blog re the auditor's dot com a specialized news site about the business of the big four on it for arms including price waterhouse cooper where she previously worked she also writes for forbes francine welcome to the kaiser report thanks for having me let's talk about m.f. global the m.f. global client funds have been vaporized and then found and then vaporize their toes over many times here well the money ever been be found where is this money well i don't believe any of the latest reports because they keep talking about legitimate

transactions this money is gone it's not coming back because i think that it disappeared as a result of an illegitimate transaction you don't have legitimate transactions real things like sales of assets to goldman sachs who are borrowing against a line of credit at j.p. morgan that doesn't result in money actually missing and they've actually admitted that. been missing ever since the thirty first when they went bankrupt just before the thirty first there was a huge outflow of cash right to credit jurors who apparently had some inside information this was about to blow up is that true well there was a report out today that perhaps they started moving customer assets even earlier than they thought the twenty sixth and that's consistent with some theories that i've put out which says that once they thought they were in the clear and they had handed the c.m.e. group the last report that said everything was in order they started moving assets

around and i think my theory is that they pledged them for a line of credit to try to get through the weekend they planned on selling the company and then maybe putting those assets back unfortunately their plans were for oil by the force bankruptcy and that's why i think those assets are gone completely because whoever had sold them let's talk about those words vaporize for a second according to the wall street journal they're saying these funds vaporized have been up and in your experience money doesn't just disappear what's unusual here for something that's sort of potentially criminal or fraudulent situation is that we don't have somebody who's skipped town is ended up in the cayman islands or the money in a swiss bank account everybody is still on board everybody is still here so it's the money itself it's the assets themselves that got used in a illegitimate manner and they're no longer on the balance sheet of m.f.

global they're going to have to sue some people and they may have to put some handcuffs on people to get them to return the value of what they took at that point ok now to follow up on the point in the global trustees of said this week that m.f. global did all those records cash movements is an outright fraud absolutely and i think it's disingenuous to say that in the last days things were a little chaos. i can crazy of course they didn't record things but the difference is did they not record transactions that were legitimate and they're just a little behind on their bookkeeping or did they actually do something that was under the table i believe that you can't have a billion to gone unless they did something that was under the table again with the hope that they could sell the company and be able to put all the money back in time before anyone knew it was missing francine when i was working on last range of compliance officer the guy who is supposed to oversee the day to day margin calls

and and balancing the books he was a guy we bribed routinely to look the other way this is similar to this this is a similar situation basically where the office to compliance guy was slipped a little a few bucks and presto change suddenly the phones are vaporized that's kind of what we're talking about well i think if you watched him testify mr stockman last week before congress you would see that you probably didn't have to pay him off he looked a little oblivious to the whole thing and he admitted more than once that he was either out to lunch out on vacation or just completely out of it not invited to meetings not included in the discussions at a senior level i mean there's a there's a theory or a word for this is called plausible deniability the less people they tell the less people they have to worry about that might slip up and say the wrong thing and blow the whole deal i think that the machinations were contained in

a very limited group of people perhaps the two or three people at the top and all these other folks that are being dragged through the mud in the operations of the back office some of the names that were dropped at previous hearings those people were just doing their job but i really don't believe that they were part of the criminal or the illegitimate activity that took place i think that they were just there and did what they were told to do ok now who specific. really are the auditors involved in the m.f. global case and all there any conflict of interest there the auditors are pricewaterhouse coopers and they have a very long history with m.f. global because they were the auditors and they still are the auditors of the e.t.f. man of man financial which is the company that spun off. m.f. global into a public company in two thousand and seven p w c also was the ones that created the original internal control procedures and sarbanes oxley procedures way back when

the company was called refco. pete have you see has an enormous number of catholics with this particular issue and they're not being called to account they haven't yet been called to testify even though the rating agencies have they know where the company stood from a segregated assets perspective at the into a report period in march at the time when the bonds were issued in august they had to file special reports with the f.c.c. they had to file special reports that says the f.t.c. and those reports are no longer on file at the f.c.c. or the c f t c so we as a public or the investors or the customers can look and see what did peter b. c. say or do about any kind of weakness in controls at any point in time in the immediate future or immediate past now one minute keeps popping up all the time as j.p. morgan what was their role in all of this well interestingly enough peter b. c also audits j.p.

morgan and you have pete obviously also auditing the law firms that the trustee good is work for. so you have a lot of vested interest in everybody keeping the noise down and in fact j.p. morgan was the primary banker to m.f. global and j.p. morgan was also the trustee on the bond issue that f. global had back in august my strong opinion is that. no one is willing to say that the money was actually taken or stolen because that means that all of these folks have to acting particular the trustee and they're going to be suing firms like j.p. morgan and peter have you seen like they've done in similar circumstances such as refco or any other bankruptcy new century some of the other bankruptcies that had very strong pointers to these third parties like the banks the investment banks the law firms in the accounting firms who allowed criminal activity to take place the need to look the other way or potentially help them along the way and reports

suggest that j.p. morgan in the bankruptcy was junior to the customers in terms of claims but somehow that manipulated the regulations to become senior to the customers and in fact stole money from customers describe what events took place is not a fair characterization there's a lot a lot of concern about how the bankruptcy was actually structured that it was a forced bankruptcy by supposed securities investor protection or core corp that put. the wrong people as a priority and that it would have been done as a chapter seven and then they would have had the customers put first my personal belief is that this is really sort of peripheral to the fundamental issue if there wasn't money missing it really wouldn't matter how the bankruptcy was structured because you wouldn't have to be as concerned about customers. having to eat the

loss that's not occurred too often however it has happened before and some of the comments that have been made in certain testimony that oh customer assets have never been taken this is never happened before we never had to deal with it is not necessarily true it's just that these things are settled quietly and they're settled. in ways such that we don't see who are the real culprit. it's there's plenty of examples of people taking customer assets the sentinel case which is one that's been mentioned quite a bit and there was one about ten years back called griffith trading and nobody talks about that because everything is under seal all right francis mckenna you mentioned rev como a couple of times and of course going back to two thousand and seven when the rev co situation blew up it was a huge red flag at the time in terms of combing global financial credit market collapse but nobody did anything at the time but could you

give us a little insight into how rev co situation relates to the m.f. global well refco is sort of the genesis of m.f. global refco is the futures firm that became a meth global after it was sort of washed through man financial but refco as you alluded to was a big scandal a big fraud a bankruptcy people went to jail people were sued in that litigation is still going on bankers lawyers and accounting firms were sued but they fight it because as soon as you have executives that have actually done something wrong and that have been convicted of it everybody else just claims that they were duped and that's the most common defense and that's the defense that probably the accounting firms lawyers or anybody else that was either standing on the sidelines or helping create documents or support this effort at m.f. global will probably claim they didn't know or they were fooled or they had

something put in front of them that they didn't really understand refco also had something very specific occur that helped them along and had a bankruptcy examiner the trustee hired a specific attorney to go through and do the investigation here at m.f. global we have a do it yourself investigation this turned into a cluster schmock between the d.o.j. the c.f. . d.c. to some extent the c.m.e. although they've been sort of put on the sidelines and you don't have anybody really with a completely independent or objective view gathering all the facts taking interviews and depositions you have a lot of competing interests and therefore the possibility that somebody is going to keep something under the rug it will never really know the true story given everybody's willingness to defend each other and keep the other out of trouble all right finally junk or sign of m.f.

global he claimed in front of congress that he had no idea where this money went do you believe him and that statement francine mckenna absolutely not and i think that he was probably instrumental to do the kind of deal they did to try to keep the company alive because i think that that was the goal of course dion ablow and his consider larry ferber to keep the company alive they had to have a go to person or a go to for somebody to help them through this process and those kinds of connections through long term relationships i suspect that when we find out who benefited from this situation we're going to find somebody very close to course i knew or to the goldman sachs ok we'll have to have you back on that spread of time though thanks so much for being on the khans report francine mckenna thank you all right and that's going to do it for this edition of the kaiser report was made max kaiser and stacy herbert i guess francine mckenna if you want to send me an e-mail please do so or kaiser report or t t v dot ru until next time x.

has are saying bye go.

egypt's streets on squares are alive with the rallying cry outs once again a year after president mubarak was forced from power. people here are calling the military council to step down immediately saying they're blocking reforms in the country more from tahrir square just ahead. and more pressure is piled on the syrian regime as a violence escalates sunda a new resolution blaming it lands at the u.n. general assembly. in new greek lawmakers to brussels with more cuts in exchange for a bailout cash people vent their frustration on the streets about. it

is a good to have you with us here in our role research this is worldwide news live from moscow egyptians staging a general strike and a day of civil disobedience to mark the first anniversary of the toppling of former leader hosni mubarak the calling for the military rulers to step down immediately accusing them of hindering reform there were reports from the iconic sober square if you ask those people they will tell you that really nothing has really seen in the years since the barak has been ousted does matter of fact there is thing that things have gotten worse because now they have to deal with the military council the scouts which is a head of the country's government right now fully for refusing to step down for saying that they are going forth with democratic forms but most people here believe that is not the case and that is why.