welcome to the kaiser report max kaiser hey last week an anti counterfeiting raids across the world interpol arrested six thousand people of sees one hundred thirty three million was a fake that not one of those arrested away ever was a central banker who had conjured up fictional national wealth by fiddling with q.e. buttons on a quantitative keyboard nor were any of those arrested spoof trading high frequency algo bots generating fake liquidity with a very real front running no banker

a broker trafficking in bogus or rivet is backed by delusional collateral no naked short selling silver manipulator and not a single robo signing mortgage forger nor if a club or rate giving banker was seized by interpol no it appears interpol made the world safe from one hundred thirty three million in fake shampoo. but failed to spot the trillions in sham financial transactions destabilizing global labor currency and bond equity markets ah now we get some more on this stacy well max we know financial regulators apparently refused to do anything about all those fake derivatives and bogus transactions happening globally and i thought maybe interpol might be someone we could you know appeal to to arrest all these fake derivative wielders interpol operations that millions of fate goods so they netted tens of million dollars in fake shampoo phony cigarettes and turkey and bogus booze

until a and interpol said the reason why they did this is it's about quality and expectations you're buying a particular electrical component part you have to trust because it's a brand we know and respect but that product could in fact be dangerous or defective it's misusing trust of the browns counterfeiting is an interesting concept in this context in that you have central banks or counterfeiting money that's not on collateralized by any economic activity or savings there's no savings in the world america doesn't save money britain doesn't see money there's no collateral there's no basis for having an economy with banks offering loans based on collateral there is no collateral it's all counterfeit money trillions of dollars worth of counterfeit money which do stabilize the economy to such

a degree that you end up with people having to sell junk as shampoo whether in china they're selling members famously the pork stuffed cardboard runs as food chicken feed come with their young eggs as food that's a result of the counterfeiting at the central bank level so yes i take your point that one hundred thirty three million dollars of fig shampoo is. the result of one hundred sixty trillion in counterfeit cash from bernanke and the fellow in town and of the hockey puck to the head mark carney xandra of course one of the things from china you also have the melon mind and the milk which killed a lot of babies and you also had the fake. building products so houses were falling apart so the foundations of these houses were falling apart and of course who they are the foundations of this global fraudulent financial system but larry summers and he's in the news he's one of the people in the running for treasury secretary that not treasury secretary but the head of the federal reserve bank to replace ben

bernanke he's one of the few names larry summers a billion dollar bad bets at harvard they're referring to him now as the cambridge whale which is fitting today is we have a new royal baby of cambridge. a new royal baby i read all about on frankie boyle tweet stream you don't assume that it's going to add any value to the u.k. economy according to frankie boyle by the way look at this photo of him this is a him looking much like the duchess of cambridge before she got the total of the baby my god these kids are obese what do they feel you. should be ashamed of or something look at that fat baby oh my god how did you pass the three little you oh my. goodness durbin wow well no that was larry summers the macro nurse larry summers and this billion dollar bad bet was that during the financial crisis harvard lost nearly one billion dollars because of some unusual and ill judged

interest rate swaps that summers implemented and the early two thousand during the troubled tenure as the university's president so what he had done max is he had thrown his lot behind some fake derivatives basically that the same sort of derivatives that have blown up greece italy jefferson county alabama and now at detroit interest rate swaps allow bar was to lock in a fixed interest rate on. floating rate debt which can be good to hedge against short term uncertainty the problem with harvard was that summers one had to lock in interest rates for money that the university hadn't actually borrowed and wasn't planning on borrowing for a long time and i remember when people were kidnapped or used to be a crime story larry summers obviously was kidnapped by a banking terrorist and forced to participate in an illegal ponzi scheme but that's a cause of celebration lost a billion dollars for harvard's money i'd like to point out grace was kidnapped a pop and was kidnapped and by john paulson the hedge fund manager and lloyd blankfein over c.e.o. of goldman sachs put a gun to either except their credit default swaps are going to blow your frickin

head off he then took a billion dollars but it is mother's day so larry summers he's qualified to be the fed chairman now because he's shown himself to be easy to extort money to manipulate to print to counterfeit money he's a serial financial killer he's the these the you know the charles manson of banking so he's perfect to run the fed of course when he was in the clinton white house he was part of he was considered one of the biggest brains out there right he was the guy who set us on the course along with robert rubin to regulate everything and he was also here ahead of president of harvard so a guy who's supposed to be smart he's the guy who's known to be smart and yet he engaged in these derivatives that blew up into a disaster so these are the same things being sold to passive funds across the

world that have blown up passive funds and nations across the world and cities across the world because they also bought these these were being sold to unsuspecting investors and he was a suspecting investor and didn't understand how to detroit's pensions fail so badly one of the many shocking aspects of the bankruptcy and there are many but one of them is how quickly their pensions fell into deficit because they were actually in surplus in two thousand in two thousand and two two thousand and three they were still in surplus and by two thousand and five they were there was a huge deficit. what happened was the mayor at the time kwame kilpatrick turned to one street just like a lot of other units. so in two thousand and five the city joined many other municipalities by issuing municipal bonds to fund its pension obligations while these bonds do no such thing

they simply kick today's liabilities into the future they have proven to be catnip to borrowers as well as to wall street which earned significant underwriting fees. detroit jefferson county greece harvard's endowment although in the u.k. there's dozens of businessmen who have been solved these credit default swaps as a way to enhance their bottom lines knowingly by his b.c. barclays royal bank of scotland and the other for. banking criminality and they've all explode in their face so yeah detroit is america's gaza basically and look for that trend to continue they're going to wall that city and just start everyone to death and try to make a few bucks as a prison operator well speaking of the counterfeiting however these are this was counterfeiting payments to the pension fund because it wasn't real it's just debt they were just conjuring up debt putting it into the pension fund and saying they had met their obligations but then what happened is they got into

a cycle of having to ever go back and repackage and borrow more money from wall street accumulating c.f. to feed they've paid over five hundred million dollars in the last few years in just fees to wall street for underwriting these new bonds to pay back the old bonds that they have almost defaulted on so they're in a cycle of ever winding bad debts right there like don't want to look at this guy larry summers should run along in the u.k. which is the charge five thousand percent interest rate there is actually a mafioso type organization that is. as a loan shark but on steroids they put loan sharks out of business they know you want to increase jobs in the u.k. put the loan sharks back in business and you know get rid of longa or if you want to have some kind of economic activity in america if you don't want detroit to be the new gods up then don't have large numbers on the phone oh wait you do want to try being the new gods you do want to part time you do want a poll grow in america i forgot you love it so speaking of these counterfeit things

so they were sold a counterfeit good of a bill of goods because no doubt following wall street counsel the city entered into a complex arrangement involving floating rate debt and interest rate swaps for eight hundred million dollars of new debt in an opaque rube goldberg arrangement that only a banker could love the deal us then simply reduced the city's interest free expenses in reality it did not reduce the expenses just as buying cheap building products do not reduce your expenses in the long run it actually increased and it's now the largest line item on their budget is the interest rate payments and underwriting fees to wall street yet know the original debenture call it cycle on big but instead they weigh it with a deferred debenture underwritten by ponzi as future payments collateralized by money that will be printed in the future by larry summers in the pocket of banks or is double edged butterfly put spread in your face upside down interest rate

sensitive toward the inflation rate discount mechanism that we've got big into the hedge product from goldman sachs to create a new gaza called the train very good bankers you succeeded in creating apartheid in america american apartheid goldman sachs know you are beautiful. it wouldn't turn larry summers upside down you don't know what might come out. but nest speaking larry summers he's in the running to be the next fed chairman but the previous night the current fed chairman is in the news gold futures hic up indicates demand outpacing supply so you can speak to send about backwardation gold isn't backwardation it's been in backwardation since january suggesting that there's a constriction the supply people are having a hard time finding supply ben bernanke last week said nobody understands gold prices and i don't really pretend to understand them either. and you have

a stretch your i don't know was not that good that they're not looking at. this ben bernanke you we hear you clearly gold is in backwardation and the gap is growing we're going to take you out of the structure but you in large numbers are going to be the. finance heatedly speaking. well larry summers can't be taken out in a stretcher he needs a helicopter he needs would have been going to. larry from his house. so garo barb who is of the new austrian school of economics the same school that comes from he is interviewed in this reader's piece and he says the actual message of the backwardation is that there is behind the curtains a lack of confidence in the fia monetary system he then goes on to say that's why a fall arrives and gold prices is not so relevant anymore the monetary fire alarm

message courtesy of the relationship between spot and futures prices is run for your gold there is a not enough for all and germany guess what no gold for you schmucks china russia much gold america. no gold all right so you're with thanks so much for being on the kaiser report thank you bags. they have a whole lot more. at .

least be told language. programs in documentaries in arabic in school here. reporting from the will talks books of the ip interviews intriguing story for you. in trying. to find out more visit all tito it's called. language as well but i will only react to situations i have read the reports i'm likely to put to the no i will leave them to state clearly to comment on your latter point someone to say it's a good place to carry out a car is on the docket no god. no more weasel words. when you made a direct question be prepared for a change when you throw a punch be ready for

a bad. freedom of speech and down to freedom to cast. live right on the scene plimer stricklin i think the term limits. on our reporters live . all right welcome back to the kaiser report imax guys are time now to turn to sandy daily have to get the research back sandeep welcome back thanks as report things are happening to hopping in the gold market the the trend of backward it which is.

something you rarely see really in markets but is it is being exacerbated so talk a little bit about and i understand the london berlin market association is now in a situation where they can't deliver the gold that people want they there's panic buying over there at the london blowing market association in fact there's a run like a bank run there's a run over there going on this is the reuters just reported i mean this is what you've been warning about talk about well you've you had become negative over the past few weeks so that is like the over the counter measure of the gold basis so that wasn't unexpected so you've had go for becoming negative and that's exactly signifying what you're suggesting no go release rates which is the flip side for goo for going negative going up you know it's always explained sort of you know miners want to start hedging when the gold price falls you know so they wish to

borrow gold they bid up the lease rate and that moves it in the back of the ocean you know frankly i think that's that's nonsense i've met about fifteen miners over the past two months and none of them have said the hedging the production. so the flipside of that is well why else would you want to borrow gold if the miners don't want it it can only be to satisfy gold denominated obligations so you might have bought what you might have bought gold previously but because you have no intention of actually wanting to take hold of the gold it can be lent alt could be lent out forever as far as as far as the banker is concerned but when you come along and say you actually want to live free of physical gold you throw the lease books into chaos basically if you have a go go to enough gold coming in from your lease books as you need to sort of give up for the gold obligations you're going to have

a problem. because when it when this happens in the banking industry in two thousand and eight the credit froze banks collapsed federal reserve stepped in other central banks they printed more money here d.l. b.m.a. you've got to run in the bank but they can't print more gold so now when ben bernanke you for example they asked him in testimony what is gold explain gold you know what gold is and he put on his face like he had just swallowed a stupid pill i guess he thinks he can fool congress but he actually told congress that he was a functional you can use a lot of these words these days because they're not politically correct anymore but i don't know what the politically correct word is for someone of mentally incapacitated and he got away with this as if he had just been hit on the head with a frying pan and he struck it but he knows that if the price of gold starts ticking higher and people don't want paper they want physical gold there's

a massive run of the on these buoyant banks like the right problem real huge problem because whatever the reason was for the gold price coming down you know whoever did it you know it was for a particular reason but we're not from hambro amro couldn't deliver the gold and of course germany wants. gold venezuela take their gold so they crash the gold price using paper now that start to take higher the people out there realize they don't want paper they want physical gold so they're making this problem much worse well the idea was with price collapse was to get people out of the markets or anyone who was a week in the gold market scare them out of it recovery economic recovery for your credit is king you know and last forever you know so that was the intent it was it was it was it was to say look the go price is crushing fee up credit is king and we'll survive forever now the problem is that when the gold price did crash people

didn't lose interest more people became interested and if you look at the open interest on the exchange on the comix exchange it just shot up of the dot which is something i imagine they weren't expecting you know so instead of scaring people out of the market sort of saying you know gold is going to five hundred to water it got more people interested in gold made a move from about seven hundred down to the twelve hundreds or so the response in the east eastern hemisphere was to queue up thousands at a time and a mad scramble for a goal so that's definitely now what they are anticipating i mean people around the world watch the show they know what we're talking about they know that there's a bond pocalypse baked into the cake they know that the only wealth ever have is going to be in gold and silver all paper is going to be hyper inflated away to zero so these people how vulnerable is it for example if right now this week in the next two weeks millions hundreds of millions in china india russia and the central banks

go up and say give us more physical give us more physical is it just b c was technically insolvent barclays is insolvent the bullion banks are insolvent and they would have to declare their insolvency they couldn't hide it any more correct yes it could be. insolvency if if people started to do it in their interest to do that if you want to get rid of these bad actors who are ripping people off blind like you just b.c. barclays royal bank of scotland you take physical delivery like we've been saying for a couple years but don't forget. if there's one gold failure it basically means the out is exposed for what it is you're more likely to see central bank gold coming to the public market to satisfy all of these gold obligations than a default but they've released already hundreds of tonnes they can't release there's a they can react papa kate their leases they release a lease and release and infinitely at least in lease and lease again by that but

now we're at a point where there is coming some notion of a transparency and these insolvency when a just b.c. a little back of scholars that are technically insolvent they do not have an ongoing franchise is becoming obvious that people's blood in the water this is my point there's blood in the water if these gold vigilantes come in there start buying physical they know they can put a just b. c. on its back they can short h.s.b.c. buy gold and make a huge profit but i'd say you're going to see gold come out of the woodworks to satisfy obligations the yes of course you know most of the central bank gold is probably on leaks but the gold is is slowly returning from those leases but it's never going to return at the rate at a quick enough rates you know for it to satisfy the obligations look at germany ok when they also the gold ok they thought that gold was just sitting there in wherever in new york so to turn around and say well you have to have you can have

it back but over a seven year period well that's insolvency to me it means that we've actually lent it out and we're not going to get it back until seven years so you either have a seven year payment chargeable or nothing basically so that's and so. seems to me they look at things like happening like snowden for example in america and they say this country is toast if one guy in a computer can take down the stricken country i want my goal i want it now and so there's never been a point of greater vulnerability so going forward j.p. morgan's eligible goal of the comics has plunged to just over one ton or forty six thousand ounces tell us about that yes if you watch the first all there are two call says a billion in the comic suppose a tree eligible registered registered is well it's just outstanding futures for delivery media delivery so registered gold is what mountains and you look at as

a proportion of the total gold and that's gone from about seventy percent in two thousand to sixteen percent as we speak at the moment so basically they have no gold basically they have no gold there's no use saying another supply of gold is tapped they've got no gold they've been listing it out selling it out and hoping that they would scare people they didn't scare people so they're the big boogie man jamie diamond you didn't scare anybody you fricken jack moron so now you're going to stop for good i want to see him raked over the coals and like pour gasoline over the guy just lighted my fire flaming jamie beautiful right now last year you're talking about the central banks are going to take back to the stone age of quantitative easing now here's the question. they mention tapering markets crashed they backed off ben bernanke in his recent testimony said that and i quote or paraphrase i should say he said basically that if in fact we

taper if we ease off on the easing the economy crashes is what he said. i think but last year they said that member in fifteen minutes they could raise interest rates and that would be no problem this year is saying if we raise interest rates the economy crashes according to bernanke. so they can't that tells me again that they're out of all their tricks there's no more dress in the bag by oh they are no more tricks of the back there are no more tricks of people by taking their gold delivery people are taking delivery and wanting to take delivery of the go to see the all of these gold obligations people were happy to keep in dollars because you could do the exchange ok but they're out of it league gold obligations they're not their only dollar people are any willing to hold them and exchange them against dollars because of the sanctity of the gold obligation basically now if that son to t. is is questioned in any way whatsoever you know there are going to be huge

problems huge problems and much they're going to dress it up as something else but probably i can often see in the north i mean that aside ok whatever happens in the gold market just like nixon talked about the money speculators back in seventy one causing the gold market to collapse but come up with some other kind of nonsense you know as to why the gold futures market isn't functioning you know people hoarding or or whatever goes on hungry and hungry last week the prime minister blamed the bond vigilantes for the country's problems so they're already vilifying the financier's the bond vigilantes so you're saying that once it becomes clear that the gold buyers are are causing a massive bank failures they're going to delve attempt to vilify the heroic observer buyers a silver liberation army who should whole and esteem of course the same central bankers will tempt to vilify them a scapegoat them yeah but we need to remain strong against these charlatans in the

central bank the larry summers of the world. market. is it entered a secular period now of rising interest rates i don't think so well if you have other moves against my theory. you remember you know it's like i compare it back to the us in the arts and fronts ok so they they they were launched with a six percent interest but by the time they collapsed six percent interest in the us and not sold in the us and that could be exchanged for nothing you know so or right yes in nominal terms interest rates might go up to five percent or six percent you know i only talked in nominal terms yeah but i don't know that you're talking to the doctor really your system will never fail and it's because it doesn't need to fail and so he just said we just said it it's got sunday. we have to have him back again but that's all the time we have today so thanks for being on the gas report. ok and that's all the time we have for this episode of the

kaiser report with me max kaiser and stacy herbert i'd like to thank our guest on deep daily if you if you can attend a lecture by sundeep and professor at the british museum on the fifth and sixth of october you're welcome to for more details go to their site for cancer research dot com if you'd like to get in touch with us tweet us at kaiser report until x. time x. guys are saying buy off.

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 realize everything you thought you don't i'm tom harpur welcome to the big picture. i cut.

the screen. which i. think. that a little. secret lover touring. was able to build the most sophisticated robot which fortunately dorna found anything since mission to teach me the creation of why you should care about humans and. this is why you should care.

because of poised to gain full access to personal data on hundreds of millions of mobile phones worldwide. to be cyber detected the threat. report claims one in five victims of u.s. drone strikes in pakistan are civilians as the pentagon looks to expand operations in the country's tribal zones. the think tank warns of a dramatically wide gap in britain future welfare reforms described as speeded up for is a top stories this hour.