it's technology innovation paul believes developments from around russia. the future. eleven thirty am in moscow here are if you have a life you when it is closer to a syrian peace plan to make both sides lay down their arms while the u.s. threatens more pressure on the regime if it doesn't comply opposition leaders admit that foreign states are sending weapons and support for the rebels. prez's interior minister says the toulouse gunman could already be dead as he wants to die with guns in his hands police are laying siege to the house where the self-styled hiding the hottest new suspected of killings at a jewish school has been holed up for a second day. the u.k.'s new spending plan the bankers budget with motorists and

the elderly taking a battering how you can fuel prices will deal a heavy blow to small businesses that are driving the struggling economy and financial troubles across the atlantic explored up next in keizer report stay with us. i am i started this is because a report you know we got segregation back in america and around the world that's right get to the back of the bus stays there yes max you're there are banks there or you're in on banks or you're in unbanked unemployed is bad enough unbanked can be worse so thirty million americans have no access to the financial system they don't have a bank account and this article is pointing out that five point seven percent of san francisco households lack conventional accounts according to

a two thousand and nine survey by the federal deposit insurance corporation there is two as the unbanked lacking a bank account imposes limitations on a person's financial options says greg cato policy and legislative manager of the office of the treasurer a tax collector in san francisco he points out that you know the fees for a check cashing at these alternative methods like the check cashing locations the payday lenders they could cost of two thousand dollars a year and also post four hundred twenty five percent interest rates on loans right this is like segregation this is like colored to the back of the bus unbanked to the back of the bus and back to pay thousand dollars in fees and you pay four hundred twenty percent on interest on your payday loans and this is segregation this is a financial part time if you're on wall street you actually your funds are negative or negative one percent the fed gives you gift you money and then you park it back

at the said you make a one percent spread that's a negative interest rate you know it's just like the indians back in two hundred fifty years ago two hundred years ago a buffalo bill the only be rolling across the plains shooting the indians and shooting the buffalo dead to starve out the. the indians here blankfein and jamie diamond j.p. morgan are starving out the poor people america hoping they just die and go away that's the whole place the myth is and the propaganda is that the economy in the united states is now booming everything is recovering so all of these unbanked people they might become banked you know they might get a job one day well penta soaring oil inflation and households soaked in debt michael pentode an investment adviser is that banking world news to respond to the claims that the economy is recovering he points to the trade deficit widening and nonfinancial debt is at a record of two hundred fifty percent of g.d.p. and then he says but most importantly please don't believe the lie that the fed's

money printing is laying fallow at the central bank and that inflation isn't harming the american middle class and the economy consumer prices rose point four percent in the month of february loan and year over year increases including gas prices are five percent and twelve percent respectively money supply is up ten percent in the past twelve months and banks are now buying u.s. treasuries with reckless abandon so commercial banks have purchased seventy eight point two billion dollars the treasury and agency then january february two thousand and twelve alone this is much as they purchased in all of twenty eleven because the word got out of that front humanity that the next round of quantitative easing going to be buying back these agencies debt for par for other cents on the dollar and so it's another gift to the banks and the hedge funds they're telegraphing what they're going to do it's insider trading again for the banks but the entire modus operandi of the federal reserve is to target stock price as the basis of their policy they don't target employment or wages or savings those people

are considered not part of the economy and they are not factored into any of the data that is coal aided by the government to it's inform them as to the health of the economy so the savers are continuing to get a repressed and the people with. wages are jobs are continuing to be pushed off the grid but the speculators are continuously getting gifted and we call that a recovery it's a recovery in fraud fraud has never been higher where you mention that these insiders these bankers are buying up agency debt with the expectation that a q e three is coming and that quantitative easing the next round of it the fed is going to buy these mortgage backed securities with it so jessie's a cafe american calls this when the abuse of insider information and control grows so large as to become the market the moral hazard and decay has progressed so far has tainted so much that the u.s. markets are not even worthy to be called casinos much less capital management and

efficient allocation mechanisms they've become avatars with a real wealth of the nation is taken and slaughtered these fellows produce nothing create nothing except for fraudulent conveyance to take other people's wealth and the best example he says is m.f. global but yes the m.f. global scandal is a high watermark and the malfeasance going on in the wall street led economy were wealth was simply stolen from customers right out of their accounts but you know the economy rebounding as such. by definition a poll only of those people that survive the last poll grow the last financial hole a cost that wiped out millions those people aren't counted anymore they're considered to have been you know wiped off the system of the remaining group that's there then they say well all of those wealth that we stole those people are now

wealthier and therefore the economy is growing and some people are feeling positive because they only had ten percent stolen in the example of m.f. global banks with inside track take advantage of m.f. global mystery so this is from francine mccann and she says five months on from the m.f. global collapse we know less now than we did when they declared bankruptcy there's one thing we know for sure however and that is some banks must know where the missing customer funds are otherwise why would they be so sure that customer claims will be paid in full and paid soon that their bidding as much as ninety percent of face value for the claims very slotnick bicolor defense lawyer says these banks are so confident that they're buying the claims for their own account not resell well they're buying their claims and are simultaneously hedging the claims for two or three percent so they have no risk once again they're taking a risk less position than the being gifted money by the federal government and the

people are having their money stolen or left you know crying on the sidelines but it's also a mafia racket if it is the likes of j.p. morgan they know where the money is in their bank account that's why they know so they're able to go to you know joe the farmer out in missouri and say joe the farmer i know for a fact you've lost a million dollars we'll give you nine hundred thousand dollars back now or you know what we'll give it to you in ten years' time when you go through all the litigation necessary so you take ninety percent now and we'll make ten percent so you're. to feel lucky that farmer joe the farmer's going to feel really good about the economy because he at least he was down a million before now he's down only a hundred thousand right it could be hundred thousand that is the difference between actually surviving as an ongoing entity because he may be leveraged going into the harvest as farmers generally are but again those people who fall off the grid are just consider collateral damage and whether it's you know the america's

foreign policy that kills people in the pursuit of their oil policies and same thing in the united states if you get wrapped up in this thing and you get terminated you're just not counted anymore and then fred seaman kind of goes on to know another interesting thing so we're five months on no charges have been laid and no apparent investigation is even happening she says note that m.f. global chief operating officer barry al below filed a chapter eleven bankruptcy petition for the holding company on october thirty first two thousand and eleven not a chapter seven chapter eleven allows the debtors previous management in this case represented by al below general counsel. and chief financial officer henry steenkamp to remain in charge so the same guys in charge of the crime of the fraud in the first place were allowed to stay in because of chapter eleven bankruptcy and therefore cover up their tracks absolutely because they're connected and they don't have to pay for their crimes and you know all the money that they're printing to cover up all these crimes of course ends up trickling down in the form of inflation

for stuff like gas and food so people are paying more for gas and food and obama as a some kind of study out there is trying to figure out why the price of gas is going so i was because you keep papering over all the products more issuance of currency that has the effect of the base in their currency so there is a price to pay and the fact that you've got some cognitive dissonance there i think that's the way i say that cognitive you know by polarization has got he's got bipolar disease of the cognitive bipolar disease by obama is sitting there like i don't understand. the price of gas is i if i look only at reality this right i consume like tell us i don't understand it. and then he's like oh oh money are good for both supporters what does that come from these are grown from for all i don't know i can see paul is stupid i could grade yeah oh. yeah this where you know those americans dysfunctional what can i say is the place is going

down the tubes back to the bankers and their their insider information on which they trade and the great banks central banks counts on falling gold a sharp fall in gold prices has triggered large purchases of bullion by central banks in recent weeks the bank for international settlements which acts on behalf of central banks has been buying significant quantities of gold on the international market amid falling prices traders say according to several estimates the b. i asked got four to six tons of gold worth roughly two hundred fifty million to three hundred million at current prices and the over the counter physical market last week with purchases particularly strong at the end of the week the total purchases over the past three or four weeks were likely to be as much as gullable that the trader said so this comes as they say gold prices a slid in the past three weeks as strong economic data from the u.s. has lowered investors' expectations of quantitative easing but as you pointed out

all the bankers know that there's quantitative easing coming and they're preparing and yet all the you know the great on bank they watch the news and they're all they have is hope that's all they have and that's a very bad thing to have is just. opium yes that's what most people in america survive on a little hope you. understand me but the central banks around the world of buying gold you know gold gold him gold look gold is the collateral that is the foundation for the entire global banking system it's a. misnomer to say that we're not on a gold standard we are the gold standard we always have been we always will be sometimes we choose to believe or not and they would puff up seven hundred trillion dollars of derivatives but it still resting on a core value of gold central banks understand this people who want to protect themselves against fraud should be buying gold and silver and when you're buying gold to put it into

a technical term for you hedge fund traders out there it's like buying a volatility straddle ok you know the vix which is the volatility index you can buy straddle could put in a call the same strike price and then only way to lose is if there's no volatility if you buy gold the only way you lose is if the economy progresses smoothly without any interruptions whatsoever but given the amount of fraud and the amount of misallocation and malinvestment and outright scandalous psychotic axe murderers who run the central banks and america's financial policy do you really think that the next twelve to twenty four months is going to run smoothly without some kind of a catastrophe either on the hyperinflation or the hyperinflation side doesn't matter if the volatility spread you can only lose as if things just go like it's one nine hundred fifty five again and eisenhower is a president that's the only way to lose so let's eisenhower is coming back to be president united states gold is going higher that's that's your risk that

eisenhower is reanimated and stuffed and he's put the white house and it's i like ike and we went backwards in time that's your only risk in owning gold if that doesn't happen you're going to make money and protect yourself against these fricken psychopaths that wrong the system stays over thanks so much for being because the report thank you don't go away much more coming your way possibly and they could kone worshiper. fewer chances book full of life. limited time. more optimistic. the theater for the ingenious open

their hearts to the rest of us. are limits. i am asked rather welcome back to the kaiser report time now to go to new york and speak with marc mellon on correlated investments marc welcome to the kaiser report thanks max good to be here all right mark relative spent five months says m.f. global collapse what do you know about what crimes took place what are the unmentionables who are the untouchables of the unmentionables in the untouchables max i don't think we have enough time for that but let me just give you some of the headlines i was in d.c. and i was speaking to a number of people i heard that a finra investigator had actually said to me that the counter parties which is one of the unmentionables and off global has some very interesting aspects of it that

should be investigated you know my big question is is there an investigation going on there is clearly been indications of fraud is not a fact in congressional testimony the chairman of the c.m.e. group noted that documents were falsified from enough global to the regulators i don't know seems like that's fraud to me but there's no fraud investigation here and it appears that trustee louis freeh the former federal bureau of investigations director. who for some reason is in charge of a bankruptcy where he stands to make hundreds of millions of dollars doesn't feel the need to investigate fraud so i don't know max where do i start i guess is my issue but just to fill in some of the target as a family and i see any group or both regulators travelers want to aspect of the securities industry c.m.e. is their chicago drivers wallace commodities industry but it's a it's a regulator that self-regulating right at bay they regulate themselves and as such

they've done a bad job regulating themselves well no i think you have to take a look at this it is a lot more complex than i actually feel that the regulators in my opinion are doing a better job than the government regulators if you look at how this i.c.c. for instance has handled this and there are some documents that the f.c.c. apparently withheld at the behest of mr course on critical wrist documents before floating a three hundred million dollar bond offering it's all documented i give everything to congress they have it where's the investigation i can't speak to figure out as much as i can speak to the national futures association i'm from the commodity industry that's where i come from the n f a they may be the self regulatory body but by and large they get their funding off of every transaction that occurs and i've found them to be very independent as my fight i would say in the commodities industry for the most part there's a fear and

a respect of the regulator that's not what i'm seeing at all with the c c i'm i quite frankly see a larger picture of regulatory capture that i think is damaging the integrity of the u.s. financial system yeah well how unusual was it that within one minute of requesting it a transfer of hundreds of millions of dollars was made from m.f. global segregated clients funds to j.p. morgan's accounts the money arrived with j.p. morgan within fifteen minutes and you speak out to mark excuse me for laughing at this because there's one aspect you need to get of this the money that was. transferred is transferred from a four d. segregated account ok in our industry a segregated account is radio active you do not touch a segregated account and transfer money into transfer money out of a segregated account everyone that i talked to in our industry knows that so first off not only are the transfer of this money in a second but it's been done in the most sank row sacked area so

entirely in my opinion on believable it's not to be believed and then for that to be approved in a matter of seconds no if someone were sitting in a desk a compliance officer with any kind of training and they saw money coming out of a segregated account that would generate alarm bells or warm bells they would be talking to a number of different people you do not make that transfer in my opinion in one second doesn't happen right so basically j.p. morgan of course has come out with their quarterly earnings they're up there buying back their own stock but they're doing so with money that they stole from customers breaking the law so i mean if you want to buy fraud you can buy a j.p. morgan stock and you had a great play on fraud which seems to be a fantastic growth industry in america and now banks are reportedly buying m.f. global client claims at ninety cents on the dollar one client stanley hair is holding out for a hundred percent you interviewed embrace of that yourself what's the story there

mark this is a story of individual standing up it's not a story about me it's a story about guys like stanley hart's a story about james cook toolis the story about a new york i named david rose and these are individuals that had to stand up a stanley's been a leader in going to congress and send a congressman guys are you kidding me this is ridiculous this is the most brazen act of potential fraud and cover up in that almost the history of the financial industry in this not being investigated so. well another interesting angle of this story is that who's protecting the commodity markets and their integrity there are some things that are happening in this bankruptcy they're literally changing the structure of investor protections so remember people are looking at this from the standpoint of it's changing the core of investor protections and no one saying anything about it the way you leaders aren't saying anything about it the major institution the c.m.e.

group isn't saying anything about the n f a is sitting on the sidelines they're leaving it up to guys like stanley haar and could tulis and grow and rosen these are individuals with money out of their own pockets how low the core commodity industry integrity and i'm going to say the integrity of the financial markets in general is being questioned right now and no one's doing anything about it well it's interesting that while this scandal is going on in these capital markets there's a resurgence of. alternate political reality in the united states there is there are now parties that are doing that are favoring more of a collectivist approach as we saw the 1930's during the aftermath of the last time j.p. morgan crash the stock market nineteen twenty nine. in your interview with stanley are. you apparently there was a conspiracy that's what on ravel between j.p. morgan goldman sachs and what about this connection between gall that j.p. morgan there may be some j.p. morgan goldman sachs involvement based on the information i have in front of me

a goldman sachs is a minor player in the entire m.f. global's and on what's to be uncovered with m.f. global is much larger than what's already been uncovered so in my opinion based on what i have seen and this is subjective it's really a j.p. morgan story but remember in lehman brothers j.p. morgan essentially took seven billion dollars out of the carcass of lehman brothers that was lehman brothers what j.p. morgan is now doing is taking money from farmers and retirees so here's my question to you. if they're going to be able to take money from farmers and retirees whose next is a bank account knocks can they do this to individual savers with a checking account you know could they flip the rules around so they also want someone one day could wake up and boom the money out of their checking account is gone i don't know just asking some questions where's the national outrage because if you look at a group like occupy wall street the protests remained pretty much silence about the

sum of all will collapse they don't see the connection what what why don't what why is it just because they're illiterate financially you know i don't know i know some very sharp people that i've seen alexis goldstein occupy the c c sharp person these are the type of people that need to sort of stand up and say what is going on so you know you've got a look at this what i see right now i see the core integrity of the u.s. financial system at stake it's not about the futures industry of the little commodity industry that no one ever pays attention to it's about the u.s. financial system as a whole and one of things about the too big to fail banks they benefit few you know what they're doing benefits of a very slim group of people and i think it harms everyone on wall street so you know i think it's time for people to stand up on wall street stand up and financial services you know i keep my wall street they need a message but you know tearing apart capitalism in my opinion isn't the message.

i'm seeing more and more stories of art allen coming from different academic studies different industry related studies suggesting that part of the problem is that the people in this industry are classic sociopaths or psychopaths they're reckless that are rogue whether they're drug enable or whether they're just psychotic is still room to be degraded but how do you get rid of that element of a sociopath that is tearing themselves apart they're on a suicide mission they're destroying themselves as well has the industry how do you deal with that as a professional your fellow professionals. are like charles manson of the industry i think you did with that that's all right max but here's my observation and you know when i give observations an opinion sometimes just based on my individual life experiences i've run into very well let me just go to your site a little bit aside interrupted mark well i mean i'm quoting to you from editorials from the wall street journal's another in the financial times nine now who are

reporting on this i don't think i know the wall street guys like i know the chicago guys they're reporting on a drug that psychopath all a-g. is up the root of the of the folks that are running these futures desks so it's a problem that has to be dealt with is it dealt with drugs that their numbers are not going to regulate that the futures trader is the regulations of them oh and around the world people are resorting to other forms of of political organization because no one knows doing anything about this so you're in the business how you deal there is false psychotic oh ok well i actually think good regulation is the way to deal with it you know and i'm in favor of good regulation intelligent regulation i think where we're going now and here's the warning that the main street of wall street needs to understand look at all these protests they're coming for a reason but i think when regulators are captured and now we just turn a blind eye to what's going on but actively work on the behalf of too big to fail

banks and and there's a s.c.c. document scandal where essentially the f.c.c. apparently worked on behalf of john kors on to limit disclosure of their material so over debt exposure before a bond offering so why don't we just go down to the f.c.c. and some of the regulators down there and put a sign up front that says this is a branch office of a too big to fail bank it's not a government office anymore i think what needs to happen is i think the regulators need to be independent i think it can be cleaned up i think just get independent regulators you know a prosecute someone ok you know not prosecuting people for obvious crimes obvious crimes in my opinion is a crime itself. no but fraud has become the biggest profit center in corporate america and nobody is going to be going to you know that it will destroy if that is the case if that is the case the system will destroy from within ok so take note of

how the rest of your sort of it i like chicago don't destroy my culture and that's where we're headed if it's too big to fail banks aren't stop this is in my opinion brazen fraud people intelligent people in financial services professional investors they're watching and left global are you kidding me if there isn't a prosecution this is going to be a damnation of the u.s. financial industry and it's going to impact everyone and it's going to benefit a very slim group of people the time to stand up is now yeah one hundred forty billion of bonuses last year based almost entirely on fraud that's it's up against anyway mark malloch brown of time thanks so much for being on the kaiser report my pleasure max thank you all right nothing to do it for this edition of the kaiser report with me max hazare and i want to thank my guest mark mellon is going to send me an e-mail please do so at kaiser report at r t t v dot ru until next time ice guys are saying.