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mags kaiser this is the kaiser report you've heard of urban blight but have you heard of market blith. her. max she speaks blithely masters on the blogosphere silver manipulation gold x. clients and doing the wrong thing so this is blith masters the inventor of the credit default swap and the head of the commodities trading at j.p. morgan a lot of concern has been placed though about j.p. morgan particularly its positions in the metals space and looking at your positions in silver we talked earlier about the volatility in the silver market can you talk about j.p. morgan's positions and price volatility and how are they related as i mentioned

earlier a business is a client driven business where we execute on behalf of clients to achieve their financial and risk management objectives the challenges that commentators don't see all of that activity civil train is leaving so just to give you a simple example we store significant amounts of commodities for example so for your own behalf of customers we operate votes in new york city in singapore and in london and often when customers have that metal stored in our facilities they hedge it on a forward basis through j.p. morgan. and hedges itself in the commodity markets if you see only the hedges and our activity in the futures markets but you don't aware of the underlying client position that we're hedging that it would suggest inaccurately that we're running a large directional position yet in fact that's not the case tool we have offsetting positions we have no stake in where the price is right or decline rather we're

running a flat or a recipe now so it's not she's lying of course we can go into all the different ways that she's lying but more importantly stacy. has made a fatal mistake by. coming out into the public and exposing the fact that the silver market has a witch. masters. and therefore we are going to new york we're going to be in new york and paroled twelfth at eight pm at one seventy eight mob street to rally the silver liberation army in new york city to new york we go well let's speak specifically about the life she presented here she said that we have no stake in whether prices rise or decline rather we're running a flat or relatively flat notch book so what she's saying by saying we have a matchbook is that they have no net proper exposure i.e. they haven't broken the volcker rule so you are the inventor of the virtual specialist technology which is a market maker technology is he just saying claiming to be

a market maker and that it's all just providing liquidity and no big deal most years long or for example it takes twenty million dollars of orders for a downtick it takes one hundred million dollars of dollars for an uptick but that's a completely lopsided market has been that way for years you know the market should have some kind of relative dynamism where yes there is an imbalance and number of trades it takes to affect it up to core and down to it it changes pretty radically throughout the trading day and over a trading session and over a month but to have every single day this imbalance or it takes twenty million for a down to make it a hundred million for an uptick that shows complete manipulation they have both sides of the book they are completely on the sell side with her naked credit default swaps and then she's asked specifically that while people in the blogosphere are saying that you manipulate the silver market and here her answer let's turn to this video again max his way as calmly out there is that j.p.

morgan is manipulating the metals market and from what you're outlining that is not possible because of the different sides of the business that you're a part of that's right but it's no part of a business model would be wrong and we don't do it population is the very center of j.p. morgan's business model whether it's through end of global for example where they got caught red handed the pending lawsuits in london. j.p. morgan is named for manipulating the silver markets the various fines it j.p. morgan has had to pay over the past twelve twenty four thirty six months for market manipulation you know there's sort of model their model is market manipulation otherwise they would not be able to take these outsized bonuses and extracted from the market as they do unless that they are perpetuating some kind of fraud as even one company has said if you're making more than two times the rate of inflation you're stealing he says it and jamie diamond and life masters personify it they personify after the last of the stick cycle past and we're going to new york and

we're going to get this over liberation army rally these troops and we're going to march on these crooks ok so max here bly have claims that never would j.p. morgan take a position and especially against their clients so let's turn to a headline where the very same day this came out j.p. morgan trader accused of breaking c.d.s. index market with a massive proposition and j.p. morgan chase trader of derivatives linked to the financial health of corporations has amassed positions so large that he's driving the price loose in the ten trillion dollar market traders outside the firm said he's doubling the london whale and his name is bruno in the london desk of j.p. morgan as you point out the very exact same day that life masters are saying that o.j.p. morgan doesn't take positions out of the clients of the product esther's that out of control there's a huge profit freighter in london out of control trading out of clients and committing massive fraud at right next to blight masters and of course london and

life in london are where most of the frauds take place where there's a i.g. lehman brothers of the local provocation or a up off occasion silver market manipulation all goes through blith all goes through london and we say to time and time and time again well in particular the silver market manipulation is alleged to happen specifically through london this is what andrew maguire argues this is how he was able to front run j.p. morgan's own minute. lation so if blithe master says no way do we manipulate markets how would our a team of traders able to front run them if there was no plan behind what they were doing right well silver and gold are for life and these crop traders a source of funds they know that there's a huge demand for these precious metals as the professional banks flood the market with cash so there's a natural upward bias and every once in a while they come in there and they clip the wings of silver and gold these massive they could short sell positions and they book some easy money it's easy money it's a source of funds but there is nevertheless the possibility and the potential for

individuals to buy silver physical take it off the market in boston or ability to rape these markets daily as they're doing now and the silver liberation army now is that enough of enough we're occupy wall street is basically had its day the silver liberation army is the next chapter you know we're taking it now to the next level forget occupy occupy is had its day the s.l.a. the s.l.a. is now this year's today right now and the great thing about the s.l.a. is that the silver it was ron paul showed he hold it up to the bam pyar you hold this sort of life masters the silver bullet we had great success last are taking it to fifty now we're going to take it to five hundred now let's look at this other issue at this ten trillion dollar market this credit default swap market investors complain that bruno excels trades may be distorting prices affecting bond holders who use their instruments to hedge hundreds of billions of dollars

a fixed income holdings analysts and economists also use the indexes to help gauge professions of risk in credit markets is some cases the trader is believed to have broken the index wall street lingo for the market dysfunction that occurs when a price gap between index and it's on or lying constituents yes we have explained that on this show. many times we call it price propaganda when they affect the perception of price when they arrange the index as it relates to the market they create a response like pavlovian dogs or you know you create a reaction when you have a certain price in the marketplace this creates user buyers or sellers and they know that so they exactly what's being talked about here you use your outsized influence in these markets to create a price that effects propaganda that creates propaganda and zero has in the article about blythe was questioning whether or not they were working on behalf of the fed

here the same thing you see j.p. morgan london manipulating the c.d.s. market altering people's perceptions of risk in the credit markets we saw the same thing with the libel rate altering people's perceptions of risk in the in the credit markets now clearly bank of england the u.s. federal reserve bank the central bank of europe they don't want people to perceive there to be any risk but they don't want people to perceive there's any inflation so they keep interest rates near zero percent that's part propaganda meanwhile energy and food are going to all time highs now people say well what's the difference if they're really the price of the upside of the downside they're still making money the difference is that at the end of the day they're flooding these markets with fear of currency and causing massive inflation and loss of purchasing power and negative real interest rates and lending to people like in athens who are blowing their brains out thank you ply for master you murder her you put up all the guys said clive ok now when you takes over the five hundred what happens we get

rich it's our money we get to reestablish our money and way more important than that because as all of these traders in the c.d.s. market in london are saying all this hedge funds hundreds of billions of dollars under their control and they're being forced out of the market by a giant whale who has the entirety of the federal reserve balance sheet the entirety of the bank of england. and she on their side they could do what they want they could smash you but at the end of the day life masters is not going to go down into a mine and go mining for silver i mean little clue about something they have the vast resources of the market as you just expressed they have near zero percent interest rates and they have a backstop with a central bank and they use this to commit fraud and it's time they make a mistake they put a gun to the head of government say either give us another bailout or going to kill the economy i'm saying put an end to that cycle you know if you take silver to five hundred dollars and you take people's gives them the chance to own real financial

independence as opposed to being the pendant on the fed and on the government and being a slave being in do a pen did the declaration of independence he remembers those words ok it's all about what he says the constitution united states of america poland so over already all the recognize lodhi but i say so first got another five hundred and we can do it so let's look at this crew lucian between these top banks on the fed how they work together to distort our perceptions of what we see around us why the fed will intervene if stocks fall too far this is in the dow jones market watch ok this same sort of publication that would mock the occupy wall street socialist here they are saying investors looking for more federal reserve intervention can pretty much ignore the economic data i.e. the people don't matter and treat their sights on one area the stock market and how

much of a drop it will take before the central bank comes to the rescue according to christian cross be chief market strategist have credentials and annuities mr bernanke and former fed chair alan greenspan made it clear that the stock market is the transmission mechanism for monetary policy so here you have it the proof of why j.p. morgan. would be manipulating silver prices people laugh and say it's a conspiracy but here you're saying openly oh well it's accepted that the price is transmitting monetary policy for a very select group of people who are benefiting from this private inflation that completely does a bypass around wages that's why when i'm in new york and it was all that i'd be at once i beat mob street in manhattan we're going to be rallies. they take silver to five hundred this is the next chapter and all of these people like bly and ben and jamie are going down all right stay sober thanks much because

a report thank you max but i'm much more coming going to stay right there. free. education free storage free. free. free. q three. the old free book video for your media project a free radio guide to our chief com. i

am max foster welcome back to the kaiser report let's stay on this blight masters. of ache in the studio he is the author of a life masters pierre the spider has come out of her mast and she's made a public appearance on television tell us is this to try to deflect some p.r. away from for example goldman sachs and greg smith came out with that letter he said god was sacked as all these awful things are they trying to get ahead of the p.r. curbed by putting bull like out into the media well your thoughts at this point oh my total quite simple you know there's only one parishioner of like master response in d.c. and that was an interview made by boat designing and the but she didn't spoke at the time before j.p. morgan she spoke for the so she was the head of the time this was doing let's do only mainstream interview of her and that was like four years ago four or five

years ago and no solution came out. to talk about this and diversity you know they gave morgan gave five million dollars to the university of denver you know you know special lessons and diplomas about commodities you know i do go to a commodities mostly and this is absolutely fascinating. this she came out first because they need to have students you know to learn how to manipulate the commode it is called this is called well let's you know. this is something very new basically and the certain point is that we started to see a verb out press about g.p. morgan also. point of view j.p. morgan have taken two pounds of goldman sachs where the where was the super position for most of the superposition in good position to this point the financial

times wrote huge articles two days ago about g.p. morgan position especially on the global scandal which i don't. yes all good points for morgan is not very good let's just remind you of the important point to come from pog who was the p.r. of goldman sachs. he has been fired has been fired for what's happening to presidents goldman sachs and who replaced. you know the information or good it was the previous p.r. of timothy geithner it's interesting all right so on this topic of incest let's talk about you smashing guy. life masters and jamie diamond i mean let's keep in mind that j.p. morgan has ninety trillion in derivatives that essentially they park on the balance sheet of the fed they don't really keep it on their own balance sheet but they

nevertheless control it there simultaneously you've got this issue of market making that she claims to be involved with on all manner of markets including global commodity markets all get that in a sack and simultaneously you've got ben bernanke who goes out and testifies in congress that he doesn't see any inflation out there and of course there's more of the data points you point to purr. that there is no inflation is the relatively subdued performance of gold and silver and other commodities and yet when you take a step back what you see what you find out is that blight who's the commodity head in a lot of j.p. morgan is buying commodities aggressively around the world simultaneously to give them that opportunity they like to keep their prices still relatively keep saying so that people are ticked off you know exactly ok so is it a bad guy or mobsters diamon they're all in bed together meanwhile j.p.

morgan tells about the commodities that are buying this in the ever university now to educate the next generation of of j.p. morgan cult like the zombie neal liberal idiots could tell but the commodity position because this is basically what you know if shown in the book is that black ministers she left the credit default swaps operation in two thousand and seven the credit default swaps right she left she left a disappointment and she took over. the commodities department of j.p. morgan which was extremely tiny at the time j.p. morgan didn't have any kind of history i mean strong history and coincidences and she started to to say that. in crisis moments you know people will always need to buy or there will need to feed you know they're willing to go to the doctor is an orphan so she was going to store to buy. commodities and this is exactly what you

started to do in two thousand and seven and two thousand and eight and now listed for example what i'm showing in the book is that she's going. you know live cattle oranges. and of course sugar sugar in them are five and remember eleven and so forth and. not only should those four do better but she does that also for all the customers of j.p. morgan so. this is extremely interesting because she is putting the whole world i mean she made think about that she made three million dollars in her department she just blew out the goldman sachs girl i mean j.p. morgan point of view she did a tremendous job snow and you know that's that's for sure but this is what have we have seen together like one year ago i think is that we are now in not extremely like a poor french revolution states because in the seventeen eighteen eight. they are used to cross were the only one to be able to buy land you know and through to sell

the commodities to agricultural communities know what it was think was do can morgan is that not only. on her department or by all the cultural common disease in the whole world that's why for example you have seen you know last year the price of coffee you know jumping were between twenty and thirty percent more and you were paying i am paying and everybody was watching you guys are paying your mortgage and not only things she's doing down for everything and this is something new because we're going back in history you know banks are buying our commodities they're taking their money even before you know a stake is and then the kitchen you know think about a sense when the normal banks like thirty years ago since when did you go to the bank you know to buy a stake through you know in through to buy some paper or some oil. orange juice on her face i mean this is absolutely this ok so you don't end up

buying from the market anymore you're buying from the bank the bank now controls these commodities they own the majority interest in these commodities there's also a thing as price discovery anymore there's no free market anymore there's no supply and demand anymore there's only the monopoly position of j.p. morgan all these commodities the biggest commodity desk in the world out life masters doubt out croaking and out tricking and larson mystically outperforming our counterpart it goldman sachs she says they're not making any money and that they don't manipulate markets well for her point of view you know as you would you know let's just remind something she said regarding the credit default swaps you say that she's not responsible you know she's like the colts you know who or she like ford does not own civil if you get in the car accidents you know no i mean on that point this was our ally. everyone's shooting those just got the bullets he said oh

i know the bullets i'd rather guy die i don't know why that guy that explodes brains out made. about it we have seen and there was a couple of web sites who have shown that we have seen the last year and even true just before the massive g.p. morgan position on how they bought and hard to own loaded or under when their position so the only at once every monday morning you know at nine o'clock or seven o'clock i don't remember but it was quite interesting so. blind masses point of view yes he didn't really and money i'm just even be wondering how you can morgan and her department is making her money this way get quite interesting because she's not going to make much money if she does don't do you know how did she made you her treat billion almost three billion dollars in cost worth over customers i mean it's very interesting but don't forget that she's doing that for the fed also you know so well i guess right yes so we're going back to insist and also a gold price should be suppressed similar price of course should be suppressed she

showed already you know last year how she killed at the supermarket you know we have spoken about it so this is nothing new but not so says she's always acting like. you know like a young. american you know we're doing a fine job you know we're doing nothing wrong were hedging on hedges which are also had ads on the edges i mean it's quite interesting i like i like very much her name . as we say in french but she's not they've all she does she perfectly knows what she's doing and of course don't expect black masters you know come on t.v. and cindy specifically and say yes we were in the whole market i mean of course essentially now for the past twenty years if you had gone long gold and silver during market hours in asia and then short it. and lights were up and running and

conscious and had a cup of coffee when it's being pounded by her manipulation and you would have analyzed over forty percent of the air you have outperformed buffet so roast everybody because of this it market when she's asleep as actually a normal market bet is heading higher when she gets up she pounded on martha play with her naked shorts and it brings it back down again exactly i would have even seen better would have seen. some memos from peter morgan's research you know saying that gold is going to be extremely high by gold you're referring you know so everybody can all just jump on the original object morgan said we should buy gold so they all got gold and exactly like forty four days later you know the whole market which is killed that one girl so it's interesting i remember i saw it on the radio this is truly dangerous because if the g.p. morgan is saying don't we should buy gold you know something is wrong you know definitely you know the fed doesn't sound go cold north river and yes

blood ministers don't forget she never spoke to any kind of media she never went on n.b.c. c.b.s. things etc she choose exactly the moment when she would she wants to do scene and specifically right no she announced you know as we have seen she gave five million dollars tradition versity so which is interesting i do it was funny when bands are telling to diversity what they should teach i mean this is weird yeah well she's like you know this is a new word is upside down it's a reverse vampire she's an have during the day. but the silver bullet is still capable of killing the vampire and you know if the physical silver is taken off the market we can still kill this vampire dead which is the point of my trip to the upcoming new york anyway pierre you're gonna make the name of the book is blight masters let me say just once and for. there is a french painter who did. row

a big painting of her and. we have the. surprise sure it's true and you. know if you show fantastico i look forward to showing that the mona lisa exactly like the screaming in pain echoes a blessed gabby by the shore to police she became a brute very famous icon she was doing a million move to financial crisis. are welcome to do it they were the master. of that he's also got one of the most listened to podcast of radio shows in france and that's going to do it for this edition of the kaiser record me max keiser and stacy her but i guess because of a lot of make about to send an email please just reported r t t v dot r us like timex guys are saying.

you know how sometimes you see a story and it seems so for lengthly you think you understand it and then you limp something else you hear or see some other part of it and realize everything you thought you knew you don't know i'm sorry welcome to the big picture.