let me let me use one word let me ask you a question. here on this network is what we're having the debate we have are nice enough. to do you disagree with the space station there's a get here you disagree with the idea we talk about surveillance we. welcome to the kaiser report imax kaiser i want to talk about trickle down stupid last week a judge in the u.k. dismissed a jury for being too stupid to understand even the most basic english words or concepts of trial by jury like guilty beyond a reasonable doubt what's that they ass oh or i know the british media mocked

a stupid jury of morons and idiots and yet does the british media snicker when finance ministers banking regulators department of justice and president the united states ask when presented with evidence of libel or rigging market manipulation fraudulent selling of securities money laundering but is this a crude time they ask bankers ever be guilty they ask stupidly u.s. and attorney general eric holder when presented with not only evidence of a crime but a fricken confession of h.s.b.c.'s guilt for drug money laundering and terrorism financing asks. should i as head of the u.s. justice department charge them with a crime or how about president obama when asked why his justice department had done nothing against the criminals responsible for the small drink wreck of a financial system right there in front of his own two eyes asks well when the

bankers just taking advantage of loopholes that's just like destructive impact caused by bankers wasn't necessarily illegal was it they say. indeed max and we see these destructive impacts around the world in the elite circles and every single time they ask they act like a moronic jury that doesn't understand the concept of guilt or innocence and yet they're not dismissed from their role as a juror they don't even qualify to be on the jury on any case in the u.k. and here we have a libel or settling still not clean despite scandal so this is gary gensler chairman of the commodity futures trading commission one of the people one of the regulators overseeing libel or rate setting in the bankers that control that he suggested that the library was often completely made up it had to be made up he said because of course there was no interbank lending so they just made up a number and then he said speaking of the scandal mr gensler spoke of pervasive rigging and said authorities could not guarantee the rate is fraud free but refused

to criticize the f.s.a. or suggest that setting their rate should be moved to the united states yeah gensler well as a name pops up over and over again doesn't you know he's part of these these are the regulatory side of the fraud of the five fingers of death you know got the rating agencies regulators the bankers the media etc you know he's part of regulating fraud so well comparing it again to this jury here in the u.k. they often they also asked you know can we use information not presented evidence not presented to the court to determine whether this woman is guilty or not here he's been presented with all the evidence he's saying there's still pervasive rigging they're still rigging the rates and he's still saying well can we use signs of innocence not actually presented in this case right just to recap in a jury trial here in the u.k. where the journey was just too stupid to understand the instructions from the judge like they didn't know what reasonable doubt man so they were just

a mess they have to retry this case because the jury is too stupid you know it reminds me of the frank quattrone defense frank quattrone credit suisse during the dot com scam. well he was engaged in legal laddering of i.p.o.'s and he got off because the jury was too stupid to understand his financial crimes well that's a little bit more complicated these are very very very basic simple fundamental concepts of jury law is guilt beyond a reasonable use a phrase a deficit of comprehension deficit of of basic understanding yes it was a polite way of saying you're frickin brain dead get out of my court house before we throw you in jail for being too stupid well in this case there were thousands of e-mails between thousands of traders who are actually a few dozen traders saying set the rules at a rate that is not true we get it for me and they're saying that this is somehow complicated that we can't do anything about it because there are signs of innocence outside this circle of the actual writers of innocent act being committed somewhere

in the universe so should we apply a standard of guilt to this admission of guilt by a just b.c. yeah i just recently admitted that there are a lot of money and financing terrorism but somebody somewhere buried in a setback something in a parallel universe perhaps so can we call it just b.c. guilty can we give you say oh oh oh wow there's three thousand mexicans headless because of the body laundering they just created it is terrorist but should we care because after all somebody committed it is an act somewhere so they're not guilty you know the same thing going back to the bush administration and the obama administration sent in a drone go murder somebody because somebody might not know what's going on if in fact you look at the stupid work done it reported it's not a picture of refraction of a mirror because we're that stupid well let's turn back to the b.b.c. interview with gary gensler chairman of the c f.t.c. responsible for these libel or rigorous pervasive rate rigging so where we need to go is we need to go to something that is far better for the public they can't be so easily manipulated so are you suggesting the doing

a way of life. i'm suggesting that any reference rate has to be based on facts and not be. fiction it has to be based on real transactions and the challenge here is banks are no longer essential the lending to each other so what is live for it's something that in the past banks were supposedly lending to each other but now they don't so again he doesn't understand basic concept the word is fraud it's the libel rate should be based on fact not fraud he says it should be based on fact not fiction fiction is not the same thing as fraud not wealth but it is in this case the lives or rate is just a rate they pull out of their butt to help in committing fraud gary gensler knows that he has admitted on several occasions but of course somebody somewhere is looking at a reflection of them as some sort of convex mirror guessers own dimentia so

therefore it's ok then it's trickle down stupid because again it's no wonder you see this throughout the world throughout history is that the elite the people who rule the society acts like criminals crooks corrupt officials and they can't find everything any evidence of any crime by any banker despite all of the evidence that is obvious to everybody else then of course the population won't understand what guilt is beyond a reasonable doubt right i mean here you have gary gensler is acting like a moron he's acting like a full fledged certifiable all diminished mental capacity who under any other circumstances you would see this guy say he needs to be either a straight jacket on drugs or put in a home for the mentally disadvantaged but he has a job as a regulator the see have to see so here you have jurists who show up at the jury and they'll say well our standard of intelligence should be at least you know comparable to gary gensler is running

a big government agency so that when they start to spew insanity out of their mouth and it becomes apparent that they have the education of a of a not even a kindergarten. student and then the why is the judge just missing this jury if this is the jury of their peers this is the population that gary gensler and lloyd blankfein and jamie diamond and stephen hester and this is and george osborne this is the population a creative cretins this is the jury system they should put this guy gary gensler in front of this jury of cretins and add them. judgment upon his head and then show smite him well ok so see f.t.c. also failed to identify any sign of any crime and that's global when john kors line reached into client funds took it and gave it to j.p. morgan he was unable to find any sort of evidence of a crime there this is an idiocracy this is where people don't know remember in the future in this film that the population of america didn't know that you had to

water plants and the other think about honor i'm you know why is the judge casting aspersions toward these idiot jurists doesn't he understand the state of the society that we're in today the judge needs to recuse himself for having a grant of the sixth grade education we need stupider judges to handle super jurists to go after stupid bankers to make stupid crimes right on now here's another. crime that has happened on the international stage we saw this live happening live and everybody acted like no nicolas sarkozy can't be guilty of anything he has no alterio motive in tunisia or in libya or any other place that france the size to invade tunisia is dictator ben ali smuggled sixty two million pounds in gold via france gold and that's worth up to seventy two million euros or sixty two million pounds were smuggled out of tunisia via france by former dictator

ben ali and his wife tribe l.c. despite you freezing the family assets so max shortly after the government was toppled mules posing as passengers took suitcases each filled with up to forty kilos of gold through various french airports including me some more say in paris it continued up until last week when was the last time they went through their. fingers at the mules ended up on offenders lasagna i know so well you know these north african dictators that's a lot of couscous as a resource for talking about. they've got to protect their future purchases so they've got gold naturally and sarkozy a cause and criminal behavior but i think that there's nobody is shocked they're right so this revelation came via the newspaper in the south of france and they interviewed some custom officials at nice airport custom officials at nice airport said we never usually see gold coming through here so when the third tunisian came

forward saying he carried ten twenty or forty kilos in ingots we told ourselves that we had a little problem when we found out that the same thing was happening in our se or paris we told our superiors but we were never asked to intervene so max relate this to the story about the jurors where no guilt can be found because they don't know what beyond a reasonable doubt means. you know trickle down stupidity as you mentioned. stupidity in cretinism is now endemic throughout the. tire system and you have it from start cozy who's a guy you like to take bribes going down to the airport officials to of course take bribes for african dictators to also take bribes and meanwhile the only currency worth anything is gold and that is proven quite convincingly by this story and that and her research sauce with little cous cous is what i like to have when i'm going moroccan well of course that brings up the the stupidest judge and regulator of

them all which was ben bernanke when he was asked his gold money said i don't think so is gold money well ben bernanke is a perfect example of somebody who's out of the bottom e. for the sake of neoliberal economics here's a man who can add to post it here's a man who believes that by printing money ad infinitum you're going to strengthen the value of that currency there's a man who believes that the scarcity value of gold makes it invalid as a form of currency here's a man who is quite quite possibly the stupidest man in america stupider than the jurist he stupor than the judge he stupider than the airport clarence people he could be the stupidest man american of course that qualifies him to be the federal reserve chairman thank you stacy herbert all right well thanks for being on the kaiser report thinking back all right that's going to do it for this africa has reported a turn for the second half a whole lot more. would like. to know silence.

every day is a struggle. for our children. we are palestinian women. we've done more for our kids. than times in this life.

cretaceous three sports three. three. three. three. three broncos c.d.o. four year media projects c.e.o. don carty dot com. welcome back to the kaiser report imax kaiser i'm pleased to welcome to our studio world renowned mathematician and monetary scientist professor talf the cat of the new austrian school of economics and for cancer research professor welcome to the kaiser report thank you my it's a pleasure to be here people are extremely excited to have you on the show and others have copied you but it was you who pioneered the importance of observing the gold basis as a sign of global financial distress explain gold basis and what is currently

telling us about the global financial system you should think of the gold base is the most sensitive. to. ever. a lot of people talk about the prize that is being manipulated well i tell you the good news is came out the manipulating what is the basis for break it down for us i tell you the base is very simply the difference between the cash price of gold and the future price of gold because there's a cash market for gold and there's a futures market and the prices diverged and the difference is very very sensitive and the whole story would take several lectures to explain but what we. are talking about here specifically is the nearest future of the one which will make it within

a month or so and that is the basis. there are two things about the business to remember one is that. it's anomalous and highly irregular the gold business becomes negative which means the the future prize goes to a discount as against the cash ok let me jump in because when i was working on wall street i traded options and of course when you're trading on the options market the close of the near term option is trading at a discount to the longer term option because any option when you price options typically it's out time has some has some value and you see that premium the time premium and you see that quite clearly so what you're describing is that if you look at gold and you look at the the way that the futures contracts are traded for

gold and normal configuration a so-called contango would be that the near term contract is trading at a discount to the longer term. track because the high time has money effectively and that cation only the longer term contract trades at a discount to the short term contract this is called backwardation correct no not quite because you emphasise the difference between two futures contract a nearby and this but what i am sizing is the different new cash the immediate right here and now and the nearest future. they are not the same they don't vary together and the most important point is we're talking more difference being cash and the nearest future i guess the reason why there is some i guess you could call it confusion is that the price that we see quoted in

the paper or on the news is the futures price or the paper price of the surprise and prepare prize not really the same correct we don't usually see the pin on the cash prize oh if we saw paper price only that's right so isn't that right there an indication that this market is not giving us accurate signals that definitely i agree with and that's not by accident this is by design in those who in whose interest that is to put a cap on the gold price for ever so to speak they want to conceive will be actual cash prize and you have to begin to the market to find let's dig into this market the cash price in in london it's quoted twice a day that's the fixed price that london fix is that a cash prize is supposed to be a cash prize however i would say it's manipulated like light boris manipulated.

your ok same thing so where does one find a cash prize call up bully him bank and say cruel to me the. billion dollar for. and then they may decline but if they want your business then they will give you a quote and if the difference is small enough then you can toss that if you. spread the i wouldn't trust their quotation it's interesting because the cash price as you are describing it is not. as readily available or is easy to find or to see even difficult to juggle to find out why he said spike design now why why would that be i mean i think the answer is that there's an emphasis on the

paper markets over something hard like gold and solver that talk about those the name of the game to. exchange as little as possible and as a march gold of the pearl futures as possible because there is that's where the money is that's where the profit is that's where the bullion bank that. nobody in the gold business wants to see gold floor. and that is historically the reason the why governments have gone of the gold standard because gold was flowing out and they tried to devise ways and means to stop or slow down or cool but when the you have the wrong paula says you cannot stop it gold is going to floor like water from the high ground to the law

and this is exactly what's happening today except that it's not the governments who are calling the tunes but the boolean banks and those who stand behind them ok i want to just touch again on this idea of backwardation and just to be clear you are speaking about the. the cash price vs the futures price and when the futures prices trading at a discount to the cash price the market isn't backwardation is it's correct yes ok now is it true this kind we also say that. currently we've seen gold in backwardation we've seen the futures price trading at a discount to the cas price i would observe that it and this is true for silver as well you see the paper contracts being dumped on to the market as a way to force that price down as a way to manipulate that price that's not the way i see ok i see.

a tremendous on usual the man for the cash so i would say well you know way you are right too because it's a distrust in the futures market and so all those who have large positions are as you say dumping the future contracts the juiced of the matter is the demand for the cash so in the case of let's say germany is repatriating their goal they want the gold the real stuff and that pushes the cash price higher is that a fair statement well that's the pedestrian explanation. i mean i'm i'm i'm i'm just a tourist err i'm faster i am trying to just broker this knowledge through the television but but if it is just a show because the germans are not free agents the german government the germans

sent to each this by no those three asian they do what the americans want them to do so i think it's just for the public consumption you know. another thing it is that it's a trial balloon they don't really know. home march back to demand those who cash gold so the location newly letting trial balloons up to see do with ok i think we're never going around the same ideas from a slightly different perspective you have written a piece the last contango in washington you say policymakers have been preparing for permanent backwardation in the world's gold futures market ok so we've tightly explained it backwardation mean you're saying we're heading to a permanent backwardation talk about that about. preparing for perm but who this is not the right expression and this was written

several years ago today i would do the form of the say they are very much afraid of the possibility of permanent backwardation the realizing that this is the main danger because this is means internal bleeding you don't see it but when sporadic backwardation becomes permanent that's internal bleeding which is fatal and they know. is the they just have to prevent that ok another word for permanent backwardation i could be a gold standard. no mo berman back would be. a means barter as opposed to arthur but then gold becomes an intricate part of the

economy in a way that it's not now we're going back to what you said a moment ago professor you were saying that the reason why you have the futures market and why it's set up the way it is is because of the money that is made by trading gold derivatives and we don't see a lot of trade in cash gold we see gold derivatives you know we see derivatives throughout the banking system you know that's where the money is those who have that if in fact gold emerges and it goes into what you can call permanent backwardation you can call it it's used as barter it's used as something of a currency which is not classified as a currency right now this in effect would take money away from the derivatives traders today and they would do anything to stop that correct they moved through then you see they didn't see that the clearly say two three four years ago but now every day they realize this is the problem the cash goold is disappearing

it shows. into hiding and they have to stop that fly by who koku. the sleuth who for the first time ok but not love the stock about this and other words we mentioned germany repatriating gold venezuela has been repatriating their gold they've also been devaluing the currency so here we see the two things working at the same time to get the derivatives are being devalued gold is being revalued and so there's as paper becomes debased and people start looking for gold there if you're saying there's a situation where they're beginning to wake up to the fact that there's not much gold around. well the same story as. bird in hand is worth in the bush you see the bird in the bush is the paper gold i think it's a bird in hand is worth two in the bush i think by having

a dozen in the bush you talk about inflation. and the more of them bad it means that. you may not have something to eat to morrow i mean if it comes down to the nitty gritty event of the interview on a cliffhanger professor we have to we have to say goodbye for this part of the interview but you've left it on a very intriguing point we're going to continue this on the next show if you if that's ok with you oh my god by all means let's. look at excellent and that's all the time we have for this edition of the kaiser report with me max keiser and stacy herbert like to thank our guest for fessor for cats for cancer research dot com make sure you watch the second half of our interview went well talk about so over backward asian manipulation and liberation you'd like to contact us you can e-mail us at kaiser reported r t t v dot ru or tweet us a kaiser report so next time ask i was in bio.

you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else you hear or see some other part of it and realized everything you thought you knew you don't know i'm tom we're looking at is a big check. color . clocks coming out.