her 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 let's 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 products could in fact be dangerous or

defective it's misusing trust of the browns counterfeiting is an interesting concept in this context and that you have central banks who are 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 save 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 to stabilize the economy to such a degree that you end up with people having to sell junk as shampoo whether in china there are members famously the pork stuffed cardboard buns as food

chicken feed coming out of their young yang's 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 pig 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 . the mellon mine 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 bet 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 it doesn't seem to 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 all what do they feed. should be ashamed of herself look at that fat baby oh my god how did you pass that through a little you oh my. goodness durbin wow no that was larry summers the mag. 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 wanted 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 because of celebration last a billion dollars for harvard's money i'd like to point to 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 accept or 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 that how did 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 if there was a huge deficit. what happened was the mayor at the time kwame kilpatrick turned to what street just like a lot of other units of power. so in two thousand and five the city joined many other ministry polities 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 starve 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 just

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 wonga or if you want to have some kind of economic activity in america if you don't want detroit to be the new gaza 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 pole 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 the wall street council the city entered

into a complex arrangement involving floating rate debt and interest rate swaps for eight hundred million dollars of new debt and 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 and b. but instead they went with 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 detroit very good bankers you succeeded in creating apartheid in america american apartheid goldman sachs know you are beautiful. i 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 the current fed chairman is in the news gold futures hick up indicates demand outpacing supply so i know you're going to speak to said about backwardation gold isn't backwardation it's been in backwardation since january suggesting that this is 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. of you out of a stretch you're not even though i was not that good that. yes 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 you know. finance heatedly speaking. well larry summers can't be taken out in a stretcher he needs a helicopter he needs what is it going to. larry from his house. so garo barbell who is of the new austrian school of economics the same school that comes from he is interviewed in this reuters 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 a rise in 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. say to us i could have a whole lot more. nobody chooses to be holes nobody chooses to me and us are all. isidro for the show to. get in the six pm get out six b six. they were in. school or. not to me the class before the. days no word against the word.

it's tough to think about all of them comes of it. and to know that many may not have only been lost due to won't should never be but they're also due to for closures that never should have. come into the future. this will point to updates and you try to transmission makes for a smoother ride bush and scientists comes up could crystal's the e.u. says he's laser sight subject on one of the take giants comes to town come to see a day here on. leave the country. download the official up location to your cell phone choose your language stream quality and enjoy your favorites from alzheimer's if you're away from your

television well it just doesn't matter how would your mobile device if you could watch on t.v. any time anyway. all right welcome back to the kaiser report imax guys are it time now to turn to sandy daily have to get the research that sandeep welcome back thanks as report things are happening there hopping in the gold market the the trend of back when 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 that a lot of bling 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 isn't the reuters just reported it 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. go release rates which is the flip side for good for going negative going up you know it's always explained as 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 into backwardation 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 a gold denominated obligations so you might have bought what you might have bought gold previously but because you had no intention of actually wanting to take hold of the gold it can be lent out could be lent out forever as as far. 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 if 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 at the l b m a you've got a run of 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. use 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 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 on these buoyant banks like the right problem a real huge problem because whatever the reason was for the gold price coming you know whoever did it you know it was for a particular reason but we're not from hambro and rome couldn't deliver the gold and of course germany wants or gold venezuela take their gold so they crash the gold price using paper now that starts 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 the price collapse was to get people out of the market so anyone who was a week in the gold market scared the miles of it recovery economic recovery for your credit. 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 will 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 after that 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 the 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 h.s.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 a case of 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 figure 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 tons they can't release there's a they can react papa cait 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. royal bank of scotland then 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 or start buying physical they know they can put a just b. c. on its back they can sure h.s.b.c.

buy gold and make a huge profit but i'd. you're going to see gold come out of the woodworks to satisfy your blog oceans the yes of course you know most of the central bank gold is probably on leaks but the gold 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 without 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 insolvency to me and they look at things like happening like snowden for example in america and they say

this country is toast if one guy the 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 gold to comics has plunged to just over one ton or forty six thousand ounces tell us about that. yes if you watch the first to call says of bullion in the comac suppose a tree eligible registered registered is what's holding outstanding futures for delivery immediate 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 dimon he didn't scare anybody good frick and jack moron so now you're going to stop for good i want to see him raked over the coals and like pour gasoline on the guy just light 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 a 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 traveling

back by zero zero zero no more tricks in the bag their own 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 hoping to keep in dollars because you could do the exchange ok but there. ultimately gold obligations them not their only dollar people or 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 with 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 now there's another dream in hungary 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 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 all temp 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 entering a secular period now of rising interest rates i don't think so well you have the rebels against my theory. you remember you know it's like i compare it back to the us in the. case so they they they were launched with a six percent interest but by the time they collapsed six percent interest and i

said you know it's all an ass and that could be exchanged for nothing you know so or i yes in nominal terms interest rates might go up to five percent or six percent you know i only talk in nominal terms yeah but i don't know that you are talking to the doctor really your system will never fail in its because it doesn't need to fail and so he just said we just said it it's got sunday if. we have to have him back again 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 next time

ask others saying by a. b . b. i've seen the perception of the cross many times to. doesn't matter if there's snow a heat wave or hail stones people keep on going but i didn't expect anything just one i told myself i keep on going as long as my heart told me to that's all i wanted at the moment micki i have sense so mind she's seen i'm carrying these sayings on my shoulder.

do you want me to put a bandage shared you know that's fine a lot of people were so exhausted they could barely walk their feet hurt and some of them fainted google read back to it three to wanted to keep going i don't know what tomorrow will bring. but all told her my language as well but i will only react to situations i have read the reports and like the pollution i know i will leave them to stay current a comment on your latter point completely. secure you have a car as are you talking no. they do no more ways where. when you veda direct question the prepared for a change when you find you should be ready for a battle freedom of speech and a little down to freedom to watch. live

. live live. live

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the us police force has gotten leaner and meaner in some major cities police departments now have a force that looks more like a military unit will look at this trend ahead. and there's been a massive jailbreak at iraq's abu ghraib prison allowing the escapees of an al qaeda members the attack comes nearly a decade after infamous photos of abuse at the prison were released more details coming up. and the house is considering amendments today to the defense spending bill one lawmaker is pushing that to the dea to defund the n.s.a. surveillance program we'll have an update from capitol hill later in the show. hello there it's tuesday july twenty eighth.