strasser this is the car. all right stacey herbert what do we got bang bang you might say this is the theme of the show max because lots of banging going on in the markets here and of course led by the c.e.o.'s and bankers right behind us in the city of new york highest paid u.s. c.e.o.'s are often fired or fined study about forty percent of the highest paid c.e.o.'s in the united states over the past twenty years eventually ended up being fired paying fraud related fines or settlements or accepting government bailout money according to a study released on wednesday the report was by the institute for policy studies max and it appears that a lot of c.e.o.'s the top paid ones you get paid to defraud explain this by

a times before a board of directors of any s. and p. five hundred company america today wants to see implicated in some crime committing malfeasance committing fraud subpoenaed or in jail because the shows initiative they want to push the edge they want to go that extra mile they want to break the law and then they want to throw it to the justice department. eric holder catches. them if they do get caught they change the law they modify the law they rewrite the law and that's what it's all about breaking the law for law and order bring back the. bridge and. then the biggest yet you know criminal in the news the biggest bang bang are in the news this past few months and fact has been jamie diamond and he's in the next headline uncle sam comes call and ask jamie dimon for another six billion dollars so the federal housing finance agency f.h.a. and f.a.a.

is. asking for six billion dollars from jamie dimon steeping morgan for defrauding the taxpayer about mortgage backed securities these are put back claims so the f h f a said the bank j.p. morgan falsely claimed that loans back in thirty three billion dollars of mortgage backed securities complied with underwriting guidelines and that it significantly overstated the ability of the borrowers to repay their mortgage loans of course kaiser report covered this years ago with the time to work with saying that that they were only putting aside reserves of one billion dollars for these put back claims from the f.h. f.a. and terry buell our guests said that it would be closer to nine billion dollars here we have six billion dollars j.p. morgan itself is refusing to pay this so it will still be in billions that they have to pay but it could be one billion it could be ten billion it could be one hundred billion it could be a trillion it doesn't matter because they just go over to the fed they print more money and then they will of course debase the currency and to keep the currency

from inflating too badly they'll start a war and have a lot of service by going to kill that's the deflationary offset for the inflation that helps jamie diamond sleep at night because he's not happy unless a lot of people are dying and he's defrauding the government the big way in other words here is a marshmallow gun this is what eric holder uses to penalize financial terrorism or a financial terrorist like jamie diamond this is a marshmallow gun jamie diamond is like you know the isle of banking and he'll commit a massive back to financial terrorism people will die people are starving and eric holder will go up there. i'm going to hit you with my marshmallow guard who owed got hurt oh oh i can get eric holder that's so painful that marshmallow going to be where i'm so and so and so rich. well of course. eric holder the f.c.c. all the various agencies the state attorneys general like in new york keep on

finding these guys. it's just emerged that these banks have spent one hundred billion dollars so far on legal fees just a legal fees of course that dorms what they paid in actual fines because of course we know they're never find very anything right of course the lawyers are corrupt the accounting firms are corrupt the rating agencies are corrupt the hedge funds are corrupt and the banks are corrupt and eric holder is corrupt and barack obama is corrupt they should go after them as a syndicate under rico and put them all in jail because they suck well the biggest market of all i would ask you but i bet you'll know the answer is the currency market is the foreign exchange market the four x. market and that's in this next headline currency spikes at four pm and london provide reading clues to this four point seven trillion dollars in currency exchange every single day in global markets as the least regulated of all and it's concentrated in just four banks who control about fifty percent of the market

number one is deutsche bank they control fifteen percent of the foreign exchange market citibank is just under fifteen percent making it number two and tied for three and four are u.b.s. and barclays each at ten percent of the market now bloomberg talk to some people and vester is an expert and professors n.y.u. who looked at this and it looks like they're basically banging the clothes so before we move on to the details tell us what banging the clothes is banging the clothes like painting the tape in other words do you want to call price propaganda as i've said on the show many times you want to have a price that the newspaper with and carries a headline the next day and this will set the tone for the next day and all such you up for manipulation the following day so banging the clothes in this case could mean just dumping a lot of water in at the close but a coal market a close order to put in a lot of market to close orders and those orders have to be executed at the market

and there's a whole rush of them either to buy or sell you're going to create a price move. and if you've got other offsetting traits other markets are going to benefit from the price and let's say the stock market and you might make money in the options market you see this on triple witching hour which is the simultaneous expiration of options futures on options and stocks and options on stocks and you have this all happening every quarter so it's a way to essentially just write a check and put it in the pockets of the big banks for doing nothing but being fraudulent yes so bloomberg looked at years of data and they found that in fact there is there was a huge amount of evidence for rigging because basically at the end of the every month there was always a price anomaly half an hour before it trading closed and it was costing investors pension funds passive funded basters what's remarkable about this is that we've seen over the past few years a move toward what's called big data so the ability for the government and corporations to delve deeper into the transactions and the specific data tick by

tick kernel by kernel is extraordinary so the culpability of fraudulent activity is never been clearer there's never been a greater. evidence than now that citibank deutsche bank goldman j.p. morgan the whole lot of them commit straw hourly minute by minute and yet as simultaneously we never had a weaker justice department never that we had such a limp we need justice department anthony wiener you should run the just apartment he's got the right equipment to run that the parliament he's all limp about it he can't do a single gosh darn thing that's it it's a good it's a match made in heaven so let's talk about this banging the clothes in the global four x. mark it happens via london of course but here's bloomberg data they looked at the data and this is what they say found in the space of twenty minutes on the last friday in june the value of the u.s. dollar jumped point five percent against its canadian counterpart the biggest move

in a month within an hour. two thirds of that gain had melted away the same pattern a sudden surge minutes before four pm in london on the last trading day of the month followed by a quick reversal occurred thirty one percent of the time across fourteen currency pair's over two years according to data compiled by bloomberg for the most frequent traded peers such as euro dollar it happened about half of the time data showed the recurrent spikes are happening in the w m routers index this is the world markets reuters index indexing as another way to accentuate the fraud because now you have indexes that have a basket of these underlying prices and it can manipulate components of the index unit going in itself and so much the market is tied to index the thing with them being the dow jones index and a lot of contracts of products like a spider dow jones exchange traded fund tied to an index that index made up of all the component stocks in the office trying to start to completely manipulate as we know from

a bloomberg story concurrently i might add that if you can manipulate for each market every single day then you are by definition also manipulating gold and silver so that's why gold and silver that's a tough time getting through the manipulative ceiling to put the money in the pockets of these terrorists that's a conspiracy theory. syndromes down to syria the terrorists are vero down on broadway and broad street do you have a map there is stupid i would america pretty and the u.k. it's a. they put the stupidest idiots in office cameron. i'll do it democracies tend to get the fools they deserve that's what w. h. mencken would have said but regarding this story here a lot of the fools who vote these sort of people in a democracy one thing that they will think is well it's only point five seven percent that this particular exchange the dollar versus the canadian dollar that's only point five percent is tiny tiny tiny tiny why the individual who is just trading one hundred dollars canadian dollars into one hundred us dollars wouldn't

have. notice that so they look at this in fact it's a four point seven trillion dollars per day and it adds up to tens of millions of dollars per day that these banks are making off of these trades so they look at this particular trade at the end of last day of june this year and investors seeking to change one billion canadian dollars nine hundred fifty million dollars u.s. dollars into u.s. currency on june twenty eighth would have received five point four million dollars less had the trade been made at the wm reuters rate instead of the spot rate twenty minutes before the four pm window they speak to james copper in an expert here in new york who looked at the technical data and what he said regarding this consistent banging the close he said funds that consistently trade using the w m reuters fix are basically trading against themselves and their portfolio is taking a hit this is tens of millions of dollars every single month taken from pension

funds and passive investors i think james. is right in his analysis of the situation. basically is the cycle model remember and psycho the psychotic is. murdering his own mother norman bates so america is in a position where it's an old hag and it's murdering itself thinking it's somehow achieving economic growth so there's america knifing and raping itself in the mirror over and over again ok there's america raping and murdering and so over and over again in the mirror. psycho they're really good at so free america visit today. so you know again pension funds and money managers pay their foreign exchange using this rate so they're the ones being self raped by this this is what you indicate here but i want to you know

you try. about bang bang and that and the justice department is using marshmallows from prosecuting these bankers so close on this final quote here from bloomberg because they receive client orders in advance of the close and some traders discuss orders with counterparts at other firms banks have an insight into the future direction of rates five dealers interviewed in june said that allows them to maximize profits on their clients' orders and sometimes make their own additional bets according to the dealers who asked not to be identified because the practice is controversial so they're making huge amounts of profits this is why you have quarter after quarter after quarter after quarter after quarter after quarter where banks report no losses on their own trading books all right stacy thanks so much for being on the kaiser report thank you max job or better. yet.

the most obviously. slightly but it's their commitment to cover all sides of the story just in case one of them happens to be. true. that was funny but it's closer to the truth and might think. it's because one full attention in the mainstream media works side by side the joke is actually on here. at our team

we have a different. because the news of the world is not this funny i'm not like dammit i'm not i. can do the job well handled. welcome back to the cuz the report imax kaiser time out to go to geneva and speak with david smith geneva business insider blogspot dot com david welcome back to the kaiser report pleasure to be with you next all right david the flow of gold from london to switzerland in the first half of twenty thirteen stands at seven hundred and ninety eight metric tons the highest amount since one thousand nine hundred eighty eight what's going on. well it's

a very interesting trend but what you have to remember is that such wonders one of the major centers for nosing of refining and finding gold so the move actually reflects school being transferred to london to be. for shipment to switzerland so what you're seeing is that these refineries are now running more or less. sometimes in twenty four hour shifts in order just through process and wanted to sue google this coming year but they're only used to some schools actually starting in switzerland i think most of it is probably. to the far east to own song to to india in session or to satisfy demand that region well as part of the effort to keep the price of gold down bank of england has been leasing gold and they've been leasing gold of countries that they should have as held as just out ends and we just found out recently that they're missing about fifteen hundred tons of gold

because studying gold so apparently not only add they leased out their gold for other countries but they're shipping it to switzerland and is going to be shipped off to china and india so what happens when they have to make good on these claims when these countries like germany wants three hundred tons from new york and new york saying no you can't have your gold i was setting this up for a run on the gold on the sama gold market they have it. yes i think that's the case know what well what is happening at the moment are starting to trend global gold club new grass is close to the physical market he said he's seen a lot of cisco gold coming here but in large quantities and the buyer solve it aren't large institutions central banks of the banks to set aside their requirements and ultimately as a risk going to the. breakdown and a single market although at the moment it looks yellow gold while being tight does not actually appear to be completely run out but we should see new sources of

potential for foreign gold anyway if you look at what's happening in india now talking about recent gold in this is the most intriguing because what is going to happen there is a look at least it knows it sent somewhere else and no doubt when they ask for the goal that little and little well you probably have to send yours as well so if i were. in the indian central bank lessing i would do it single to people in the certain knowledge of the future go to france can only go up and scarcity actually really completely hits and there's nothing left in the warehouses and i would lose out on the outside of the about gold at that point right you say that it's there is some supply of gold on the market however we do say backwardation in the futures market and we which implies that there is no supply of gold and there are so we also see it go forward rates in gold at least markets. inverted prices that also suggest that there is no physical gold around and it's funny this india story

because just a few years ago right they bought quote unquote two hundred times for me international monetary fund of course that gold was never delivered to india just an accounting entry now they want to turn a better turn around and because of the crisis in india because of the collapse of the repay and i note that gold is only within ten percent of trading our all time high against the end. this could be another all time high against another currency coming up for gold as we enter a cycle of gold trading at an all time highs against all major currencies but what so they want to lease the gold that they just bought walk us through exactly the insanity going on in india right now david smith. well i mean india is in critical care is situation in the moment it's had. no use in you know it's a great deal of foreign investment into developing markets and you know since our market the last years that's been slowing down you sincerity of foreign central and the cancer rate which is absolutely dramatic it's greatly squeezing of you know

putting pressure on the domestic carlson's and so on. there is capital flight from india obviously it was interesting in occurrence it which is collapsing you want to get out and believe it or not many people are actually getting out of the security of the u.s. dollar which is yet once again one of the world's biggest jokes so what you're having you take a very correctly on is a fact that in rupee terms. gold is being perceived as as a very good investment because it is it is rising as a trance is collapsing gold is rising in rupee terms which is exactly was going to happen ultimately in dollar terms or styling terms arc or euro tyrant's amount and that's they do will be oppressors a little price try and try and push it down so. i am very happy to see the little house lies in india by herself one ounce of gold or whatever because

after all there are there's a population of over a billion there's a culture of gold being stored value of and currency so this it is these very small purchasers an indexing keep on going to his i don't they were all back it will be dramatic and the other of a interesting thing missing at the moment is just how porous the borders are between india and their neighbors when it comes to smuggling gold into the country it's almost as chorus as a border between the u.s. and mexico for cocaine so i can only encourage those people to keep in the golden forget the competing yeah it seems that about the black my. getting gold now is the biggest black market in india people buying gold and silver too and this is the been the big surprise david smith during the last three or four months the cartel or the london bullion markets association in conjunction with the come backs and bankers like j.p. morgan and h.s.b.c. have flooded the market with hundreds of thousands of paper claims against gold

that they've basically have counterfeited on these various futures exchanges hoping that people would dump their galled and get discouraged about owning gold but the exact opposite happened cues out the door all over asia china people clamoring to buy gold they completely misjudged this market corrected it's red. as i think it's the biggest central planning blunder in a very long time but like so many other central planning blunders once it's made they just keep on doing the same thing again our older definition of insanity but yes i mean it is made small buyer and in developing countries very keen instead of probably the kind of middle class semi absolute arson who will die and later golden got snatched and it is so but it stimulated enormously the physical market

and what is going to bring an end to all the corrupt manipulations which are going on in gold is only when the physical amounts of gold sister develop and if you look at what's happening in comics vaults or you know be any or j.p. morgan vaults you know they're not quite running on empty but they're getting close to it now i'm not imagining that j.p. morgan will not be able to pull its hands on physical goals. by sarah means or foul either by squeezing it out of the yes or client accounts or doing whatever they usually do to send their own skin before everyone else's but that has to come down to this and as in the end is on the horizon now whether they're going to come in a week or a month where there's a tendency to fall with a comment suddenly start settling in in favor of dollars and cents as google although i really have no idea but the certainty is there that the demand for gold is going to overwhelm the central counters and

a manipulator of paper over markets and i saw david's right there there in switzerland surrounded by lots and lots are rich people you yourself have a career managing a wealth of high net worth individuals etc and imagine a do u.s. dollar earlier and some people are buying dollars as they get out of these currencies like the indian or a bank but my question is the wealthy. in switzerland and around the world if given a choice are they going to any by the dollar thinking that the world is heading into a deflationary depression or b. they're going to buy gold thinking that we're heading into more of an inflationary depression your thoughts is this is a difficult question the the reality of the world is a very real city people are correctly advice and are stocking gold i'm not talking

about a guy ruth you know what decent salary and who stayed off as markets but people in substantial assets are allocating already considerable amounts of money to gold as a long term resource. what is going to happen whether there's going to be an inflation and deflation or depression goodness only knows it depends a lot of mr bernanke he does with his tutoring understands that all the rest of it but rest rest assured wealth and powerful are still in bank vaults to the point where the banks are actually having to do new votes a new storage capacity to store the gold which their clients want to hold and most people realize that sooner or later the dollar's demise is inevitable but because it's world's reserve currency it's going to last less currency i think to sink or let's move on to greece for a second a perth agrees on the verge of requiring another very significant belle out should the greeks explore activity cyprus this time in other words will it be

a bell and this time will it be confiscation from bank accounts this time david smith. well i think the answer is definitely yes if you look at merkel's position on this and it most recently but shortly only strewn over dinner and there are those great results. in germany about this which has political consequences but as you if you look at the solutions greece will never ever be able to generate enough tax revenues to pay off debts it's doing quite a lot to sell off assets to basically they're being assets triggered by the chinese and multinational companies cetera. but if there's a hole left at the end of it and present to do of course assume the money from and also tears so as you know at the moment legislations being put in place globally. by the central banks and implementing this soon at all it isn't science.

today alone where wherever you go so this is this is an inevitability in many countries not just try to have a spread we'll have about thirty seconds left i'm hearing rumors about dr bank as being the next lehman brothers that's what i'm hearing i realize that's a bit of a interesting rumor circulating but i understand you have been hearing some rumblings about data bank what do you hear. well as in deutsche bank it is definitely on the ropes it's a giant which is financed by. international money did not but it also has money it's true leverage is probably around sixty times its assets as a base and it has the latest a religious position in the world something that sixty five trillion and i would not like to see what's happened to their absolute last few days for it was in the interest rates rising because it will always are two derivatives and us particular words and your euros which are the benchmark very often are soaring and doubling in the last few weeks all right david. don't you bank levered sixty to one which is

about where lehman was before it imploded we're out of time thanks so much for being on the kaiser report pleasure to be here on to get a night's thanks a lot and that's going to do it for this edition of the kaiser report with me max kaiser and the lovely stacy herbert i like to thank our guest david geneva business insider blogspot dot com if you'd like get in touch tweet us the kaiser reported to next time acts that are saying aioe.

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