both sides. pressure on the regime. of killing seven people. dead in the police. where he had been holed up for the past two days. short of police

out of the window. and. budget with the elderly taking a hike in fuel prices. who are driving. to stay with us here. for the judge. wall street. report. this is because the report you know we got segregation back in america and around the world that's right get to the back of the bus so there's never yes max you're there

a blank stare or you're in unbanked store 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 very first too as the banks lacking a bank account imposes limitations on a person's financial options says greg cato policy legislative manager of the office of the treasurer 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 payday lenders they could cost up to a thousand dollars a year and also imposed four hundred twenty five percent interest rates on loans but this is like segregation this is like colored to the back of the bus and banks

to the back of the bus unbanked you 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 apartheid if you're on wall street you actually your funds are negative they're negative one percent the fed gives you gift you money and then you park it back at the fed you make a one percent spread that's a negative interest rate you know it's just like the indians back to one hundred fifty years ago two hundred years ago with buffalo bill the only be rolling across the plains shooting the indians shooting the buffalo dead to start up. indians here blankfein and jamie donna j.p. morgan are starving out the poor people in america hoping they just die and go away that's where all 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 so in day michael

pentode an investment advisor is asked on king world news to respond to the claims that the economy was and 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 in food and 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 in treasury and agency debt in january of two thousand and twelve alone as much as they purchased in all of two thousand and eleven because they weren't going out to the hedge fund humanity that the next round of quantitative easing going to be buying back his agency debt for car four hundred

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 cole aided by the government to inform them as to the health of the economy so the savers are continuing to get a repressed and the people with. wages or 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 is never going to hire well 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 café american calls us when the abuse of insider information and control who are so large as to become the market the moral hazard to k. 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 out which was where the 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 survived the last poll wrong 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 thousand problem 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 their missing customer funds are otherwise why would they be so sure that customer claims will be paid in full and paid soon that they're getting as much as ninety percent of face value for the claims barry slotnick color 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 they're simultaneously hedging their claims for two or three percent so they have no risk once again they're taking a risk most position then they're being gifted money by the federal government and the people are having their money stolen or left crying on the sidelines but it's also a mafia racket if 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 i will 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. i 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 a 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 that 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 the price human 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 ablow filed a chapter eleven bankruptcy protection 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 lori ferber 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 where 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 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 was going so i was because you keep papering over all the fraud with more issuance of currency that has the effect of basing our 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 where he's sitting there like i don't understand. the price of gas is high if i look only at reality this right i consume like this bit and get it and then he's like oh oh

oh buddy i guess we're both supporters or the psychophysical i don't know i can't see color stupid i can't figure out and. when you know those americans dysfunctional what i say is the price is going down the tubes back to the bankers and their their insider information on which they trade and the great. central banks pounce on fall and gold a sharp fall in gold prices has triggered large purchases of bully on 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 and falling prices traders say according to several estimates that the i asked bought 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 double that the trader said so this comes as they say gold prices have 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 going to state of easing coming and they're preparing and yet all the you know the great on banked 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 hope hope yes that's what most people in america survive on a little hope yeah yeah. but central banks around the world are buying gold you know gold gold and 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 and we always will be sometimes we choose to believe or not and they would puff up seven hundred trillion

dollars of derivatives but it's still so resting on a coup or 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 technical terms 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 the only only way to lose is if there's no ballance selling if you buy gold the only way you lose is if the economy progresses smoothly without any interruptions whatsoever given the amount of fraud and the amount of misallocation and malinvestment and outright scandal was 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 and 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 live so let's eisenhower is coming back to the president the united states goal is going i or that's that's your risk that eisenhower is reanimated and stuff 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 bull if that doesn't happen you're going to make money and protect yourself against these fricken psychopaths that run 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.

i am a scratch your 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 well it's been five months m.f. global collapse what do you know about what crimes took place what are the unmentionables who are the untouchables oh 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.

i was speaking to a number of people i heard that a finger an investigator had actually said to me that they 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 as a matter of fact in congressional testimony the chairman of the c.m.e. group noted that documents were falsified from a mouth 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 the trustee louis freeh the former federal bureau of investigations rector 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 jargon herself and i see any group or both

regulators covers one aspect of the securities industry see. me is a cargo covers wallace commodities industry but i say it's a regulator that's self regulating they regulate themselves and as such they've done a bad job regulating themselves correct well no i think you have to take a look at this is a little 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 kors on critical risk documents before floating a three hundred million dollars bond offering it's all documented i gave everything to congress they have it where's the investigation i can't speak the finner 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 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 client funds to j.p. morgan's accounts the money arrived with j.p. morgan within fifteen minutes and you speak of that 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 disaggregated account ok in our industry a segregated account is radioactive you do not touch a segregated account and transfer money into transfer money out of a segregated account everyone that i talk to in our industry knows that so first

off not only are they transfer. it's money in a second but it's been done in the most sankoh 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 a 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 alarm bells they would be talking to a number of different people you do not make that transfer in my opinion in one sec it doesn't happen right so basically j.p. morgan of course has come out with their quarterly earnings they're. 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 j.p. morgan stock and you have a great play on fraud which seems to be

a fantastic growth industry in america and banks are reportedly buying m.f. global client claims at ninety cents on the dollar one client stanley harris holding out for one hundred percent you interviewed him recently 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 tulis it's a 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 the almost the history of the financial industry and it's not being investigated so what 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 the number of 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 regulators aren't saying anything about it the major institution the c.m.e. group isn't saying anything about the n f they is sitting on the sidelines they're leaving it up to guys like stanley haar and could tulis in a row 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 what about this connection between goldman and j.p. morgan there maybe 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 amount global scan 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 with 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 that all someone 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 is the national outrage because if you look at a group like occupy wall street the protests remained pretty much silence about the stem after lobel collapse they don't see the connection what what what 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 s.e.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 or the little commodity industry that no one ever pays attention to it's about the u.s. a financial system as a whole and one thing about the too big to fail banks they benefit few you know what they're doing benefits a very slim group of people and i think it harms everyone on wall street so 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 most. i'm saying more and more stories work well and 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 the rogue and whether they're drug enabled or whether they're just psychotic is still room to be debated but how do you get rid of that element of a sociopath that is tearing themselves apart there on a suicide mission they're destroying themselves as well as the industry how do you deal with that as a professional your fellow professionals are like charles manson of industry i think if that that's all right max but here's my observation and you know when i give observations or opinion sometimes just based on my individual life experiences i've run into very well let me just go to first i guess

a little bit aside interrupter not relevant i'm quoting to. you from editorials from the wall street journal's another in the financial times now i know who i am reporting on this i rather think i know the wall street guys like i know the chicago guys they're reporting on a drug that psychopath ology is that 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 they're obviously not going to regulate the the features traders there's no regulations of them oh and around the world people are resorting to other forms of political organization because no one's now is doing anything about this so you're in the business how do you deal if you're still a psychotic 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 in 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 is a s.c.c. document scandal where essentially the f.c.c. apparently worked on behalf of john corps 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 what 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 event will destroy if that is the case if that is the case the system will destroy from within ok so take note i don't. play on your side of it i like chicago don't destroy my culture and that's where we're headed if the too big to fail banks aren't stopped this is in my opinion brazen fraud people intelligent people in financial services professional investors they're watching and that's global are you kidding me if there isn't a prosecution this is going to be i d.m. nation of the us 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 what you're up against anyway martin eleanor out of time thanks so much for being on the kaiser report my pleasure max thank you all right that's going to do it for this edition

of the kaiser report with me max kaiser 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 are you in for a life time back either saying.