they won the lawsuit well the framing products that on mass could destroy the health of millions of americans is no blasphemy in my book but that's just my opinion. wealthy british style sun. sometimes. markets why not. find out what's really happening to the global economy with max cons or a no holds barred look at the global financial headlines tune into kinds a report. about

international that was in the very heart of moscow. max keiser welcome to the kaiser report crash is the new black you've got your act crashes your gold crashes your crash crashes crashes the new thing it's the in thing stacy. crash so this season you should try some the first tweet from hacked a.p. twitter account causes dow to drop one hundred and. fifty points now we all know

this was the a.p. tweeted out that the white house there were two explosions at the white house and obama was injured in fact it was a hacked a.p. twitter account that sent this out and then the headlight from that reads from a twitter hack to the complete evaporation of all market liquidity and one chart the chart here is from an x. and it shows the plunge the hundred fifty point plunge but you see no liquidity right well that's exactly right stacy herbert because these markets are essentially a hologram they're hologram that is concocted with algorithms that are injected into the protoplasm that is pseudo liquidity called new york stock exchange and all related contingencies markets tend gentle markets derivative markets and it's riding on the edge of an event horizon called probability of one hundred percent that this going to blow. there is no

underlying liquidity people say derivatives and liquidity that's a false that people say market making as iterated by as defined by lloyd blankfein or jamie dimon that's a lie these markets are nothing but a shadow of a shadow of a kind mera a whole gram and they're going to blow the other thing that c m b c noted here was that it's not so much that the computers initiated trades what happened is that they cancelled the orders so the bids came out of the market that caused the crash and you see when and that chart there was zero volume not a single participant so it looked like genuinely one hundred percent of the market is by algorithms who are reading twitter where half of the tweets are fake anyway or hacked tweets well the volume is fake and i know from the technology i invented the virtual specialist technology that the shadow banking

system that's run by wall street banks in the city of london banks you put into the system i call it the ghost trader that's how it's defined in the patent but they call it shadow banking system they just flood the the market maker the guy the price discovery mechanism with ten twenty fifty one hundred two hundred times normal daily volume as a way to create a profit you want number goldman sachs' they pick a price they want and then they flood the market drawing to get to that price that's how they manipulate these markets now when there is a rumor on twitter and suddenly the shadow banking system or the ghost traders i defined it back in the early ninety's is simply counsels that side of the transaction and you have the trap doors open and i used to do this all the time this is why. in hollywood we had never had that discussion with disney for example they were trying to get me to get the price of their movies at a certain level as part of their propaganda techniques but here on wall street you

simply create prices that are. part of an agenda but has nothing to do with free market capitalism it has nothing to do with prices coverage it has nothing to do with economics this is stalin ism this is this is this is stalin ism that's traded every single day and it's called new york stock exchange well speaking of stalinism let's move to the gold crash story the headline from business insiders joe wiesenthal a paper bug as you call him the gold collapse is great news now he notes with great glee about how gleeful all the anti gold people were on twitter and it was like a pack of hyenas very happy when on april twelfth friday april twelfth the markets crashed the gold markets crashed and he said why is this good news well gold bugs are frequently jerks in this vindicates the economic ideas of the economic elites so he's saying that you know these economic elites are trying to take care of us

and to respond to the economic crisis economists and mainstream policymakers have favored highly unusual policy measures massive fed balance sheet expensive massive stimulus except for these ideas are usually based on years traditional economic research keynesianism monitor is an exception and you saying it was gold bugs that was ruining it for the likes of these monetarist and all these experiments right joe wiesenthal over there because of cider along with henry blodget they worship personalities whether it's bernanke here paul krugman they hate markets they hate price discovery they hate capitalism noticed during this twitter crash flash crash good price stayed rock solid because it hasn't trends of value where apple stock it could be seven under one day four hundred the next day there is no real intrinsic value of apple they've got a lot of cash on the balance sheet they have a few gadgets that people like but that could easily go to zero like enron go to zero world com go to their j.p.

morgan could easily go to zero whereas gold is never good. got a zero and it performed beautifully during this controlled demolition by paper bugs like joe wiesenthal a stalinist paper book terrorist who need to be really constrained in some way because it is these propaganda is destroying the american economy well it's a battle between where in the at a point where that system is falling apart so it makes sense that they're trying to justify everything and look for reason to continue to have hope and the gold price is it's not so much intrinsic value it's our subjective value where viewing it with our human consciousness is saying well there's no counterparty risk there there's no risk of being defrauded by the way blankfein or jamie diamond they're not going to be able to take it unless they come into my yard and dig up it out of my backyard well not only going to just jump in the first second because the average lifespan of a paper currency is less than fifty years going back hundreds of years every single

paper currency become extinct the average lifespan is less than fifty years during that time during that hundreds of years during those thousands of years nobody has ever turned down gold as money gold has always been money so to say whether you turn the value subjective or objective or to debate or it's a keynesian or it's this school or that school it's completely outside the main consideration here which is that paper money has always become worthless there's never been an exception gold has always been money that's never been an exception ok now turning back to this his joy at the crash of golden why it's good it's all about perception and he doesn't even really recognise that he says so the collapse in gold is not about gold but about vindication for a large corpus of belief in economic research which has largely panned out it's great that our economic elites know what they're talking about and have the tools out there disposal to address crises without creating some new catastrophe what you know we will fulfill is to point out is that while his paper bug brother and. are

crashing the paper price of gold the price of physical gold and the demand for physical gold has never been higher and history the demand for physical gold is never going to higher history joe but of course he does look at the man and supply that would be economics he looks at algorithms and the and the puffs of smoke that come out of federal reserve system because he worships the pope fraud ben bernanke because he's a solid. it is so let's look at some of what that means stream financial media was looking at those things those very days able twelfth five april twelfth monday april fifteenth let's see and here's joe wiesenthal mocking anybody who thinks that there could be anything unusual happening in the for in the gold market both author of the thirteen hundred dollar and even twelve hundred dollars marks our lines in the sand it's a slaughter says carsten fritsch senior commodity analyst at commerce bank it all comes via the futures market on friday more than one thousand one hundred tons of paper gold have been traded that is more than annual gold man from china or india i

can't see a fundamental reason for this to be honest so here he is saying this is a guy looking at it on a fundamental reason he's never seen one thousand one hundred tons of paper gold jumped on the market at one time now put that into a comparison of the washington agreement where the central banks which hold most of the physical gold in the world agreed to offload some of their gold but five hundred tons a year over very carefully you know to not impact the price so here is in one day eleven hundred tons remember joe is a dangerous duplicitous ideologues just six months ago he was recommending that a creation of a magical one trillion dollar platinum coin yes if you look this up believe that you could create a magical one trillion dollar platinum coin to rectify america's deficit this is what joe believes so we have bought some boxes in a very limited area of a few weird paper bugs in new york and he does no one in around in the workers

elsewhere no joe wiesenthal from joe the weasel who is terrorizing our garden and this show however goes out to tens of millions of people every single week and russia and india and china around the world in america they understand what i'm saying that keep buying joe wiesenthal and the banks toure's. gold is now trading higher than the paper price the physical price that's all you need to know that the joe wiesenthal's and the henry blodgett in the ben bernanke he's in the paul krugman are being destroyed thank goodness so then going back to this article from market watch where they're looking at the actual action happen live in the markets april twelfth friday april twelfth at sharpe's pic lee c.e.o. ross norman said three point four million ounces of gold or one hundred tons hit new york's market on friday at the open that was only the start in a shock and awe campaign that had all the hallmarks of a concerted short sale now it's

a bigger boeing stampede yeah as we told every one of the well that is good and they're happily buying gold and also miners. they're not making money at gold at these levels so they're shutting down a what's not going to do to the to the supply of gold i guess it reduces it the demand is high let's see how demand lower supply let's see joe can you figure out what would happen to the price of that case it's called supply and demand it's called economics you've been around spender bank because you can't figure that out you're too frickin stupid to figure out what a demand supply curve looks like a quick one is quote krugman so i have to go to the top of it and what but what do i why by doing that wash my hands first do what i did i'm just a stupid new york. so roster when it starts pixley said there was a concerted short sell going on so we're going to look at what a concerted short sale how that could possibly be used to intentionally cause the price to go down joeys and all says that's a conspiracy theory and it's wacky now we're going to turn to a little clip from

a film from c.b.c. in canada they did a documentary this week about the secret world of gold and in it there was a scene with bart chilton c f t c executive where he is investigating gold and silver manipulation and this is how he explains that happens what we've seen all too often is where you have an individual trader who has excessive concentration. when i say excessive i mean concentration that can lead to pushing prices around and we've seen it in precious metals in silver in gold and in some of the other commodities so far shelton a c f c c regulator admits that there is concentrated positions of market manipulation but he can't do anything about it because he's just waving his blonde hair and shaking of breasts through the t.v. cameras and he's completely ineffectual as a regulator all right now after the break we talk to ed mcguire about those in depth but say she never thanks much may i add a part of human now go away and you mcguire coming right up.

to the future good makes two pewters these days so super is the brief for that russian research have got a few ideas that could make cognitive computing a reality what about the process or check out a radical new architecture that promises unparalleled power design for the stars is that got you all hot under the collar don't worry because the lead is cooling systems ensure neither you nor the top supercomputers break a sweat known to him day here on we go to the future cover.

international and world in the very heart of moscow. welcome back to the kaiser report i max kaiser time now to turn to precious metals expert and was a blower andrew maguire andrew welcome to the kaiser report it's great to be here max nice to see you yes great to have you know now andrew but why are you say that a gold default is underway as we speak and that this is reason for the recent gold

smash so first of all what i mean my gold to fall so people understand that means ok so basically what i'm saying is is that if you are a holder of bullion and you think you own that bullion and you just happened to turn up and offer that bullion and you were told i'm sorry we don't have a body and so we take cash instead in fact you're going to take caution said well technically that's a default now you know under the. l b m a system technically if you read through the small print you can be said for cash however that's not what most people think ok d l b m a people have seen you and others part of the recent losses that's been waged against banks for manipulating the price of silver and what came out was that the l b m a is leveraged one hundred to one in some cases on their precious metal position so here's a here's an exchange that is even more leverage than enron was the height of it.

before it collapsed before world com collapse there's one hundred to one leverage for every every dollar of physical they've got a hundred a paper and so when people go to take delivery of that gold and silver there's no we have to get paper instead of number one number two there's a real threat that it could cause a run on the exchange and this leads to. the recent smash because people are demanding their precious metal and then this leads to the recent smash talk about it yeah that's exactly right i think what the straw that broke the camel's back was the cyprus issue and i had a love very large client come to me and say i'm get my physical so he went this is a this is part of the a.b.m. story so he went and this is before your letter was sent out to once he went on his belly and back i was told well no no it we are certainly for cash but hang on a minute this is my billion you know reduce small print you don't actually have

a numbered bomb but you actually believe when they go and apply for a bullion account with the bullion bank that's part of the all b.m.a. system you're told you've got two choices it's much cheaper to go this route it's not you don't actually get a number of bob but essentially fast your gold otherwise you wouldn't buy it in the first place or go that are allocated through it's going to cost you a lot more money you get a number bob but you know why incur the cost right so people are not able to take delivery of their gold i was just writing jim sinclair was talking about a client or a friend if he was having the same problem in switzerland so in switzerland they went to get his gold and they're saying wait a minute there's a little here we're going to settle for a paper now let's talk about the paper goldmark for a second because there's a big paper gold vehicle g.l.d. it sure looks exchanged but that's not real gold is it really paper gold and there was as part of the is maneuvers to smash the price of course you have the futures market that gets massed with naked short sales and a lot of case but these e.t.s are also smashed but if you buy an e.t.f. like g.l.d.

you're not buying physical gold are you well know you're ending up with shares and a claim on gold that's what you look at century there's only two things you either got something in your hand you can crank or it's i don't trust the latter and obviously when we saw this recent short smash you notice that goldman sachs when they came out and issued the sell short note which was just before before the. intervention came in they started by shorting g.l.d. very interesting because you get a lot of leverage what forces obviously. the redemptions force you know force the bullion to be to be purchased but it also if you think about it none of this bullion in all of this smash not one ounce of that bullion has turned up there is no physical for sale so you know where i suggest strongly that it's going to rip replace inventories that were not there in the first place all these inventories are mismatched by duration and it's incurred itself over the years

you've had basically or all the way back from that from the from the lease carry trade so you had bullion banks building up positions never really needing to purchase the gold and all of a sudden you get someone like china like russia like central banks and sovereigns and other small investors saying look i tell you our m.f.g. didn't like what happened there re hypothecated gold no i think i'll take delivery so now you've got the this enormous pressure on the bullion that was never anticipated in the first place so when they originally took your ten million dollars from the pension pension fund they decided well let's not buy bullion let's give give you a receipt in our index the price of gold obviously number one by not buying gold it didn't go up number two now you've got an incentive not for price for price not to go the price of gold not to go up so of obviously suddenly more than three or four

people coming for their answer gold hundred to one is going to cause a problem right now angela where you've been a perfect you're in the really the the scandal really that is the gold market in server market this is something that's been covered by the gold antitrust action committee for years people have been writing about it they've been on a really the margins and then as the price has gone high. aaron this outcry toward what appears to be manipulation of the ground over the years and then you actually sat down the regulator and said look here's where the price is going to be manipulated the price is going to crash at this moment this is any you tell and you basically explained the manipulation before it was going to be manipulated it did exactly what you said it was going to do the minute the regulator looked at that they said well that it was a let's investigate they did an investigation. right ok it's ongoing you show them the smoking gun you showed it to manipulation here's we're going to happen there's a great video i know that there is it's going to crash right here because are manipulating it right this price you show them the slow going good the evidence so

what happened exactly well we're still ongoing now the thing is is that and obviously you know there are things i really wish i could discuss but there is an active investigation going on it doesn't it covers more than one country and so obviously you know there's not a lot of comment i can make about that but other than they were definitely given sufficient evidence to be able to. pursue that investigation further there is also new evidence coming in all the time what i will say is this recent documentary them out a much and i think a new documentary that came out was called we talked about in the first half of the show the. credible secret world rich rich i mean i see people so close to the gold market they're a little disappointed there wasn't more about manipulation in there but generally speaking at least what it did was perhaps educate millions of people around the world on the history channel various countries my goal and if i've got any gold i

want it so really you're actually educating people then with those bankers can't be trusted and it what about this idea of cognitive dissonance because we know for a fact now that the major banks the same billion banks who operate is non billion banks i mean they rate the library market multi hundred trillion dollars they had made it they paid a fine they showed that yes we do it we can. purpose to with rigging live or if you're going to keep interest rates manipulated and currencies manipulated you would have to by definition also manipulate gold and silver because otherwise because why many people are and then have gold and silver skyrocket well right what people fail to remember when you see people talking about gold and silver is going to these they are actually currencies and writing forget but actually trade as a foreign exchange cross so when you go to own gold you are shorting the dollar so why is it so difficult for people to understand that gold the silver being manipulated just like like war it's just amazing to me it's just absolutely staggers me ok let me ask you this then the markets as you've described and others

are at a major inflection point because there's a run on gold and silver price matched by the paper cartel has only increased demand. and as a result these features exchanges are being overwhelmed they can smash the price now every time they do smash the price the unintended consequence is they're increasing demand almost exponentially so the people in india russia china are out there queuing up around the block to buy gold are they ultimately going to smash these billion banks and the cartel is that the hope of the of the world is in the hands of the people killing in bangkok to buy gold bullion to decimate just b.c. barclays and this these what i call financial paper terrorists is that how close are we now in europe thought and what we're seeing is obviously the visible side is the retail side you seeing and in sexual demand people losing faith in currencies and buying physical whether it's crossing the line is into the wholesale market and

i think that is the key is the wholesale market that is now short in supply and that is that is what we ran into very recently three weeks ago when a.b.m. roof issued that very first written default of an l.b.s. over here that for the first because this was a major turning point the just extract describe that briefly to give the background there if you. well we'll obviously i mentioned i had a client the go it went in the. physical he was refused they must have been having a lot of other requests because a letter came out within a day or two to all their client saying they no longer could settle could receive their billion in cash well that is a major smoke signal and i couldn't believe that none of the financial press picked that up and that is a a crack in the dam then you converse the codes of the comix and see a ninety day reduction incredible reduction in inventories and you suddenly see there's a every reason in the world either one of two things going to happen the billion

banks have to buy back their gold which drives the price through the roof or you're going to have to default ok let's just take the example of blame banks default or comix defaults or l b m a the fault will the central planners the central bankers the commercial banks will they step in and bail them out with more paper that's the question people obviously are they say well they can never default because they're tied at the hip to the central banks and they'll always just bail them out your thoughts all they're going to do and i'm sure max you've covered this before they're going to hit a keystroke they're going to print some money they're going to settle people in cash the price will go up you'll be subtle going in cash on the day before and the price will start to find its true level you will not be on board for all the years that you've been to you intended to hedge yourself you have lost that instantly right the people people buy physical gold against the inflation of the paper money supply so the fact that they're going to start to save the markets by increasing the money supply is not a reason not to buy gold it's the opposite it's

a reason to buy gold now ben davies who is a friend of the show and is a gold manager as well he made an excellent comment that gold will go to five thousand dollars an ounce but nobody will own it. you know i think you know because they're scaring people out of gold you know and then there's going to be a default as i understand ben's comments and then you'll see a gap opening to five thousand dollars an ounce but by then he will if you don't know any at that point it's too late if you don't need only the physical that's the that's the key of course is you've got to own the physical anyone who's mileage and to be honest i really have no sympathy for people who have a margin themselves if you're all about i just self but the point is is that yes he's right of course gold is going to find its true level we don't even know what that is it's been in the press for so many years but certainly one thing for sure you've got china russia as you mentioned these other countries now looking to back their own currencies with a reserve of gold so that makes their currencies and i think the i.m.f.

issued a statement that within three to five years trying is going to be there was world's reserve currency and to require at a time thanks so much being on the kaiser report great to be here max and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert or thank my guest andrew mcguire if you'd like to send us an email please do so at kaiser reported r t t v are you. going to take three. three. three. three. three. three videos for your media project.

sometimes you see a story so you think you understand it and then you hear some other part of it and realize that everything you thought you don't know i'm tom harkin is a big. well into the future that makes computers these days so super is the memory for that russian research is have got a few ideas that could make cognitive computing a reality what about the process of radical new architecture that promise is

unparalleled our design for the stars is that under the collar don't worry because the latest cooling systems ensure neither you nor the globe's top super computers break a sweat. on along with the future. president putin says. the western media. russia as terrorists he was speaking about last week's boston bombings during his annual q. and a session with the nation. and braces itself for more and see all staring protests people direct their anger at the three international financial institutions accused of demanding cuts but offering very few solutions.

and the u.s. again increases the number of detainees that at mit's are on hunger strike at guantanamo bay as the official figure edges closer to that claim by lawyers since the very beginning.