welcome to the kaiser report i'm max keiser you now in july of two thousand and eight just weeks before the collapse of lehman brothers took down the financial markets with the bank and before tarp and syrup and nerve george w. bush was caught on camera at a fundraiser in houston texas saying quote there is no question about it wall street got drunk the question is how long will it take to sober up and not try to do all those fancy financial instruments. if dr goes code for fraud then georgie the party was just getting started. max wall street is drunk again and actually they're drunk driving it appears to eat from deal book sub prime auto loans are bundled and sold by banks to insurance companies mutual funds and public pension funds well this is based on an investigation by deal with new york

times and the headline from that investigation max reads in a subprime bubble for used cars borrowers pay sky high rates ronnie durham stopped working in one nine hundred ninety one declared bankruptcy and lives on social security nonetheless wells fargo lent him fifteen thousand one hundred ninety seven dollars to buy a used mitsubishi sedan i am not sure how i got the loan mr derm age sixty said yeah yeah yeah yeah yeah it's whack a mole comes to mind you know they want from the subprime housing crash economy as you point out lehman brothers so now they move to autos you know it just goes around and around and around i mean there's no attempt to stop this from going on i mean we can only guess what the next area of fraud will be but yes harlow at the moment the fraud does your yeah wimber barack obama when he came into office said we have to look forward we have to go forward we cannot look back the economy needs

to recover we need to continue forward now the stories i'm going to tell you here are the exact same not a single thing different about the frauds committed in the subprime mortgage market here these are sub prime loans i sub prime equals anybody with a credit score less than six hundred forty in america so these are subprime loans for used cars not even new cars used cars so this guy mr durham in this article who received a fifteen thousand dollars loan hasn't worked since one thousand nine hundred one the new york times looked at his loan application form however and on the form it was filled in that. he earned thirty five thousand dollars working as a technician at lourdes hospital in binghamton new york he told however the loan officer at wells fargo that he hasn't worked since one thousand nine hundred one they just filled it and regardless now remember a lot of the subprime loans for the make mansions in america what happened well the mcdonald's workers received five hundred thousand dollars loans because somebody filled in that they were earning sixty seventy thousand as

a manager of regional mcdonald's one of the liar's loans as they call them so i remember going back to the subprime era you had the fraud committed by various banks they were fraudulent they making loans they were involved in liar loans they were involved in selling the book of loans to other institutions frauds of the only they were involved in goldman sachs' case selling these loans off to their own customers knowing that they would crash and making bets against their own customers . they were mis rated by the rating agencies who knowingly engaged in fraud to give these packages of fraudulent loans to play ratings they were manipulated by hedge funds who were trading on inside information they were bailed out by hank paulson who was also trading in trying to from a shit hole in the american economy hostage for that huge seven hundred fifty billion dollars bailout fund which became twenty trillion dollars so the fraud is replete throughout every aspect of the economy the rating agencies the government the wall street banks the hedge funds and the media of course in this case the

n.b.c. who tied the whole thing up in a ribbon and handed over to the american public and a big turd sandwich so what was the result of this wall street moved on to auto loans and i have is that exact same thing all over again fraudulent loans made based on liar loans they'll take all those car loans and package him off to institutions and pension funds were to blow up and cause people to be impoverished it will be rated by rating agencies in a way that's completely fraudulent when i have in fact you're predicting in the next few quotes i am almost always talking exactly about that so these loans have increased by one hundred thirty. percent since the financial crisis so one in four loans auto loans is now a subprime mortgage a mortgage a mortgage on a car essentially because the actually like the length of a mortgage now so why is what's driving this the article in new york times points out exactly as you've been saying actually but we'll say it here as well the explosive growth is being driven by some of the same dynamics that were at work in subprime mortgages

a wave of money is pouring into subprime autos as the high rates and steady profits of the loans attracts investors just as wall street stoke the boom in mortgages some of the nation's biggest banks and private equity firms are feeding the growth in subprime auto loans by investing in lenders and making money available for loans so again the banks have a one step removed so they'll never get in trouble it's just the middleman they're extending these loans this money to these intermediaries who give the subprime auto loan directly to the customer and then what are these private equity and banks doing well according to the article and like sub prime mortgages before the financial crisis many subprime auto loans are bundled into complex bonds and sold the securities by banks to insurance companies mutual funds and public pension funds a process that creates ever greater demand for loans we know all of this what happened with the subprime mortgage thing but we should just move forward don't really examine this because we already know we have to move past this we can't hold people accountable because we need to make the economy continue to grow. i mean that's the

logic behind it that's the those are the talking points or the propaganda as it's cooked up by wall street and. by c. and b. c. a network of financial propaganda and you know i thought that the financial soft spot would be what was happening in the student loan market because remember we were reporting a few months ago on the exact same thing happen in the student loan market which has become a one trillion dollar mortgage fraud type market that was set to explode or implode or ripple through the economy in the. way but apparently this auto auto loan fraud has kind of snuck in ahead of the student loan well the thing about the student loan is that you owe the government the government can. do that the person the student they'll take whatever they can seize your bank accounts seize your income seize your i.r.s. tax returns so you're forever stuck there here companies are saying the cars from these people and driving them into bankruptcy. and also packaging them into complex

bonds all of these sub prime auto loans none of these student loans are being packaged in they're sold to pension funds like these these are pension funds are being sold these are some prime auto loans but remarkably they also point out that interest rates on these some prime auto loans can exceed twenty three percent and the loans were typically at least twice the size of the value of the used cars purchased including dozens of battered vehicles with mechanical defects hidden from borrowers such loans can thrust already vulnerable borrowers through there into debt even propelling some into bankruptcy so the new york times found out this information by going to bankruptcy court looking at the bankruptcy filings to see who were speaking driven into bankruptcy by the subprime auto loans and the way you remarkable number of them and many of them because they thought they were not only given these subprime high interest rate mortgage i keep on saying mortgages but they are in a way the auto loans and yet they were

a lot of them were dodgy cars so of course when the thing when this blows up as it inevitably will then the media and wall street will blame the victims will blame the people who took out loans just like they blame the people who took out the mortgages during the subprime crisis even though it was institutionalized fraud geared toward disenfranchisement and certain financial bludgeoning that took place and people were bleeding out of every orifice of their financial being they were blamed for the fact that they were ganged up on by financial. folks and taken advantage of mercifully so the car loan. loan recipients will be similarly abused when this all blows up and you know as we've been predicting been saying i may just decide to repeat itself because there's no to turn for frog interest rates are too low so encourages mal investment there's no oversight there's no s.c.c. there's no regulatory body that's worth its salt the financial media is corrupt and full of propaganda and the rating agencies are completely corrupt and the hedge

funds are trying is that information a completely corrupt i mean remember a bomb i said we have to move forward we can't look back wells fargo and new york times pointed to the very first sentence of this story is the one that loan fifteen thousand dollars to this guy who hasn't had a job since the one nine hundred ninety one wells fargo is one of the biggest participants in the subprime mortgage disaster putting wells fargo as one of the too big to fail banks that as a result of the last crisis even bigger to fail or even bigger to fail are and when this blows up they'll be another consolidation wave and the banks will become even much bigger behave less of fraud would no competition here's a thing about it that is really destructive to the american economy is that it discourages competition and america really can't move forward unless there's competition and there's less and less competition especially in the banking sector which is being consolidated into really one or two players will be j.p. morgan and wells fargo which is warren buffett's little pet bank and everyone else

will have been consumed by these two big banks and they'll engage in monopoly extraction of wealth in told there's nothing left so the rating agencies as you've mentioned have been raiding these bonds these complex bonds that have been sold to the pension funds they've been giving them their blessing but at the same time protecting themselves by warning people that there are way too many of these subprime auto loans and it looks dodgy and it looks scary but despite these warnings the volume of total subprime auto loans increased roughly fifteen percent to one hundred forty five point six billion dollars and the first three months of the year from a year earlier according to experian. a credit rating firm so as soon as you point out to the investing community that here is a problem of course which they do they accelerate their loans because they know oh my god this is great because this is obviously too big to fail it's obviously going to be an impending disaster this means we're guaranteed that the fed and the government will come in and swoop in and bail us out because this is a critical. you know vulnerable point for the people or taking this car loans of

course the make the payments they have a cost structure at the end of the month that's contingent upon gas prices being low you know american gas prices are some of the lowest in the world but given the geopolitics at the moment i would posit that is about to change so if you're somebody paying eight nine ten dollars a gallon for gas then you will most certainly default on your car loan triggering another lehman style collapse and another huge banking consolidation and another loss of competition and liberty in the united states so it's it's a foregone conclusion driven by artificially low rates and corruption in every single sector including the media now i did see a statistic just published on i think it was the wall street journal today that the average american wealth is still down fifty percent there aggregate wealth all their holdings their pension fund everything since the financial crisis so here we are at this point where it's like become a junkyard i mean this is like like even lower than houses this is like people who

are living in their cars you know that were forced into their cars from the previous thing plus you have no problem they will strike up saying mortgages because people are going to be ending up moving into their cars yeah and they're living in their cars so for them this is their mortgage because that's where they live well exactly but it was so once this crash because all the pension funds have been buying these subprime auto loans i'm i was surprised that it's as big as one hundred forty five billion dollars worth of one quarter that's a big number ok well we got to go but i know. all right states in the second half an interview i did with joe's goals earlier. they want to so this kind of is back to the middle ages a public event. for the abyss and you know they derive their villages from the very

very rigid interpretation of iraq if you look at a country like egypt for example saudi with very high poverty the reason this might also be i think is because the religion is called the boundary and the border and that's the kind of suppression if you look at the liberal base let's say of a country like turkey almost ninety nine percent muslim. because of the. economic downturn in the final months of the deal and the rest. will be every week.

welcome back to the kaiser report imax kaiser time editor to jens goals of the real company agenda welcome back to the kaiser thank you very much having me howie oh really well now there's a rumor on the street they've got a new title tell us about it yeah i've just been made the c.e.o. of the realistic company say how does it feel to be a c.e.o. now quite exciting the scary really makes sense a good challenge i really can forward say i absolutely love love my job i love working with golden state i'm just i'm quite excited to be heading heading up to realize that company now and taking on a new direction so you like right up there with peter schiff over there and james turk and then there's jeff school. of the better watch out amazing executive talent in the gold and silver us big of these are folks of europe aciphex capital and gold money they get into the crypto game thanks to our recommendation and now you're

getting into the crypto game tell us about it yeah i think it's about a year just every year do you describe me as bit curious we sat here we talked about big korean and i decided looking to be korean and you're a bit curious. and say we've looked a lot more and say in the next month we'll save by september we'll be launching out the queen for gold exchange which is i think that would be. saying you know kind of the people who are interested in bitcoin generally they understand gold as well and i think that is i don't see them as as competitive. investments as they were compressed assets instead they are very much complementary and it makes sense to sort of use them in facilitating that way in terms of you know maybe save in your gold spend in your in your bitcoin so i think i think that would be a really good efficient to the platform we've currently got so let's talk about silver for a second because you have some remarkable demand numbers on industrial and precious metal silver tell us about it and well. i think it's just long not long after i

lost his head so when she released a report for the. numbers in twenty thirty min it was amazing the increase in demand and considering the price in general and said this would dampen sentiment in the market and actually it climbed by thirteen percent which is a big leap but might not sound that big when you look at it and generally compared to other demand numbers but seventy six percent of that was g two sorry much that was due to the seventy six percent increase in cotton and bar demand in so s. and so physical demand is really driving this increase that we're seeing and i think that's a really good reflection that actually people are still wanting to hold so over and they sort of rushed into that moment and in terms of the ratios how this compared to silver coin damone versus goldman it was very much want to want in terms of how much was being spent and i think that's actually a better reflection of what the true demand of the true ratio is when we talk about silver and gold and industrial demand is down slightly in this half of the year but actually for silver it's climbing along with the price which is up ten percent and we're seeing a huge deficit in terms of the supply i think it was ninety six million ounces

deficit last year that's compared to a surplus the year before so it's quite interesting and generally stocks are declining and for the last thirty years industrial amount has in has exceeded that of mining demand so i think we're coming to quite an interesting turning point in silver price overall it's been very quiet you know it has been light but it has performed well this year so far and as markets and again said in our interview that will be broadcast see where we're possibly at that breaking point now where we'll have a breakout and regional touches normal high that we've seen before in the precious metals space we have a true stand out of a rock or a roller in palladium ok which is trading really a multi-year highs what do we do before going to buy. yeah yeah it's exactly like that's a technical term that's a c.e.o. you can say i like that about you know a technical. you don't get out for pizza you know explain. you know

so what i was happy. palladium will play d.m. and is very interesting as is a plan and the two they've been having this is this major issue in south african mining the mines that are going on there's been this big standoff between the workers and the the mining companies and the unions that revolt and it's been going on fifty six months they keep saying it's going to be resolved mine is a returning to work but actually to start fooling i was talking to someone about plate him and they were saying this do not show the amount of plate in that is coming to the market where that is coming from that's quite so i mean it is an industrial use industrially played yes he's investing was quite interesting i played him i'm not played him as i am perhaps in gold so as i understand it for some machinery that's been built to take home platinum sort of mechanical items you can replace them with palladium items so it's quite an interesting invest a toe industrial metal that you can use in overseas also cheaper than platinum and is now also being seen in joey to money increase in joint amounts for played. as well wes paying attention to because it's interesting is unlike so over you don't

have bankers dropping the price of play the amusing paper contracts and make a paper contract so it's more of a true representation of supply demand the demand is very high the supplies tight so the market in play games moving much higher in so what you've just described is a high demand type market and if the price is not moving and we know why because of the open manipulation that goes on using paper contracts to keep the price as cheap as they possibly can is there a limit to how much banks like j.p. morgan h.s.b.c. can manipulate to keep the price of silver at these artificially low levels or does it just some point the dam breaks and you see as was the case when the the gold cartel broke in the sixty's you had that huge spike is that what we're looking at well in terms of so this heat spike in the price am i can i keep going back to ben he was saying we may well see repeat what happened in the seventy's with the soap price when it just completely shot up and went up by

a two thousand percent so maybe we are seeing a sort of break in the down. that's towards were heading towards you and i was speaking about manipulation a lot and i you know it clearly is there is something up in the market in terms of how long they can keep going who knows you know how long can they so keep fiddling and in terms of you know we look at this so fixed now that's now sort of being changed there is that is the change of the server fix because as part of a scandal of the gold fixing in the london market bullion market association there rejigging the how the silver price of the gold fix is done can you walk us through what's going to be happening there so. in terms of the silver fakes dropped out of what was a so fix it was set by three three three banks so they really could be two banks left of that is due to end on fourteenth will be signed to stand it say the l b m a so put out a kind of you know a proposal set for was going to happen with the so were fakes there were several proposals and a lot of people are very complementary by the way the where may have managed this in that they did turn to the market and say how would you like the price of silver

to be fixed and you know they did open out say now the result is that same in a joint venture with thomson reuters will be using electronic system by which the price of silver is set in a again it's been complimented because they said that this is bringing a huge amount of liquidity awareness to the market will be audited it is electronic if there's a whole lot more transparent but of course there are people in this space you know that you and i talk to regularly who are much better versed in this than i am who disagree with the whole system and believe just generally the price of silver should be based on supply and demand and i shouldn't be a kind of a decision made as to how the solar price is set and terms of the gold fix as there is a very that's going through various stages at the moment some groups are sort of been involved in trying to find third parties for instance the london gold fix the people that organize and then go fix it where i have just recently asked for a third party to be involved in helping build it that process they have confirmed that they are looking at a similar system two of them even two on the so were fakes in terms of electronic system let me jump in here for

a second so historically what is what was the basis for the gold and silver fix right i mean it's a. london bloom rights association i think it's once or twice a day they came out what they fix the price i mean this is the theory is that this is the price that contractors going forward and it's good for mining companies if the time so if you know a set of contracts and things that are supposed to be the idea behind it but of course there's a lot of debate like you say i have with barclays they were fined twenty six million because they were admitted that they were trying to while one particular trader admits to sort of trying to manipulate the gold price say in terms of how the gold and silver price officially space to operate or what they're officially for there are there is evidence in fact bindi's torso of banks is means and purposes and barclays themselves admitted that there was a says the german activism for really there's no real use for but it's a legacy that perpetuates because those in the banking industry have learned how to game it to get some ill gotten and it's a way of sort of i believe the london value market maintaining some kind of control over the global precious metals market you know whether this is where the price was

set price day this is the oldest bullion market and it's still going on and it's just a kind of it's just a way of them kind of you know keep maintaining it's a real yeah yeah and that in and i think that is something no matter how much people trying to mend the gold fix in the so we're fakes again something as you and i have often talked about is the power of to china or bringing it to the gold and silver markets and you know the launch of this new development bank last week you know if the brakes are doing these are all just movements trying to challenge the western financial system and say as we see these things happening these countries become more developed for want of a better phrase in terms their dealings with their development bank is the brics it's russia china. and india i guess are they involved and they actually can be heading up for the first five years so it's a hundred billion hundred billion it's development bank it's designed for infrastructure projects projects and i've spent quite a lot of clients who believe the i.m.f. and the world bank the u.s. dollar germany kind of are we don't need to manage this are in regard to sources

and you know they've set up reserves of one hundred one hundred billion and a lot of clients. a step towards moving to some kind of bullion backed banking system currency why there was a rumor that the deal between china and russia which was a four hundred billion dollar gas deal that at some point they're going to announce there is a precious metal component to that deal there is a gold in the mix so if you've heard anything on that rumor i haven't heard anything more in that remit than exactly what you've just said to see imo in that with the people of it dealing with. the real us and i don't believe in the us all to a company they didn't consult me but i also had the james tackles and consultants are known to write about it take a bit tens of being ca the last a company one of the things i want to talk to you guys for was the fact that we are looking at launching a what we all don't a gold backs a crypt a currency that's going to be launching and just course this is breaking news breaking it down i brought it to you for us backdrop the currency gold back

cryptocurrency to be cold gold fish is going to be the name of go back to take currency which will be available to buy the real asset company in the autumn this is very exciting gold fish fish how is that they're doing how is that nato came about ok i'm about three i would like to say to you know he can see i'm an effort but actually i just think it's just a great name for for you very likely decision i made an exact just like radically said i'm calling this goldfish rubbish names on the fence with names we couldn't go to fish ok i can actually tell me in what is a minute but crypto gold so how does a block chain is involved a shame to really putting gold onto the block chain say you know you know you know i base that the bloke she works as a lead just this time so it's another way of showing your gold holdings it will be ordered saved by a major old saying firm on the name of the moment and say that's kind of the stage one that this is another way of storing your gold and on the block chain it's still stored in volts a you have a currency and in that respect you can then use it is

a much easier way of trading gold and hopefully at some point as a media. same to swell that you can be spending your gold then what about folks like in india we met any of there's a huge importation of gold in india an enormous amount of sixty five percent last month i had it so it would seem that here's a good way for folks in india who are buyers of gold and small amounts if they used up watching technology it would be perfect for that you know absent half i think this this whole while approaching is fantastic is it makes einar ship of various assets commodities more accessible i mean you know if you want to buy these these key life boats which actually the last a company we've never required the minimum amount to buy is a gram anyway by having on the block chain to be able to trade it makes the to gold a much more accessible tooling commodity fee to be easing whether it's a meter of exchange a form a savings but ultimately a store of value and say half of people in india or whoever wants to buy gold in full amount this is perfect but i don't fish goldfish general thanks for coming on

the kaiser report thank you for having me all right that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert of thank our guest jeff skiles the newly appointed c.e.o. of the real asset company realized again ties tweet us because the report and so i started by a. right to see. first street view and i think that you're. on our reporters. in. the the in

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carefully takes no demand for credit nothing to get any economic benefit in life there are absolute and there are but. this is r.t. international this ukrainian warplanes reportedly bomb a town near the crash site of the malays even passenger jets despite the president's ban on his deliveries. supporting two anti government forces have handed over the flight data recorders to the officials probing the crash while the train carrying the bodies of flight m.h. seventeen victims reaches hard. completing them the first stage of its journey. russia's defense ministry presents radar evidence that a ukrainian fighter jet was in the nearby airspace at the time of the disaster and circled the crash site.