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hi america this is the kaiser report coming at the speed of sound and the speed of light that's one hundred eighty six thousand miles per second imagine that into your own conscious mind causing all kinds of havoc. they said max we had the good fortune of recording the second half of this episode first so i know what you're going to talk about and i am going to introduce it with this headline because this headline happened over the past week or two we did not cover it at the time because we knew we were going to get the expert on vick's onto the program to talk about the details of it but i just want to remind people in case they're under the misguided notion that there's been any sort of you know you know we dug in criminal activity within markets apparently that's not true well vix manipulation cost

investors billions whistleblower says a whistleblower told u.s. regulators that a scheme to manipulate the vix the volatility gauge thrust into the spotlight last week during a wild trading session cost of esther's hundreds of millions of dollars every month a washington based lawyer told the securities and exchange commission and the commodity futures trading commission the nation's top market regulators in a letter monday that his client found a flaw that allows traders with quote sophisticated algorithms to move the vix up or down by simply posting quotes on s. and p. options and without needing to physically engage in any trading or deploying any capital billions in poor diddly ill gotten profits have been scooped up by an ethical electronic option market makers according to the letter of the show as

reported by many. times over many years you know the scams on wall street are the same they just repackage them and they take the old rancid wine and they put it into a new bottle and the vix contract which was a product invented to allow people to trade volatility a separate from actually having to own anything was obviously going to be prone to manipulation and it was just a matter of time before blew up and now it has blown up a lot of people have lost tons of money and we predicted this probably no less than twenty times on the show and we've been charting for years now the growth of this product the manipulation behind the product the players who are manipulating this product and alerting regulators like the f.c.c. or whoever that if you're interested in putting crooks in jail here's a product that allows you to see clearly crooks behaving in a crooked manner and the response was just like you've got about markets be markets because america is a country that is with you know fill in the blanks i mean without the fraud take the fraud capital fraud about america i mean it can't you know it's you know in

this empty suit there's going to be another one after this does this want to maybe die down and then in six months they'll be a new product they launch that will be considered to be the whiz bang product of the century that everyone's got to own and talk about and trade because it's a reflection of something innovative in the financial space and it will be completely and will be right back where we were just as a portfolio insurance in eighty seven the sun prime market in two thousand and eight the all the other myriad products that we've talked about on the show that are completely fraudulent again like let's go into a specific detail here that many people assume that markets can't be manipulated because for every buyer there's a seller for every seller there's a buyer and as they're saying you're as this guy this whistleblower is establishing that they don't need to engage in trading any physical training and they don't need

to deploy any capital on. all they have to do is put spoof quotes for s. and p. options so. there's no real there's no there there they don't have to actually engage in any buying and selling the algorithm is look at the market and they see price quotes that are out of the market that are not actually in threat of being executed no money will trade play take place will exchange hands and so the computers will then drive trading to get to that price that they see is necessary to fulfill some order and on the books from some other trader but of course the second that trades about to go through oh my god that bit of that offer that you know spoof has been ripped from the market it doesn't exist anymore but the price movement did in fact cause other derivatives and options to become profitable for those that are trading on inside information now who engages in this every single p. and l. every single corporation in america has a guy sitting at a desk who's engaged in fraudulent trading to extract money from the markets and bankrupt america and causing taxes to go up it causes fraudulent programs like

obamacare to rip people off because infrastructure projects to die it causes people in san francisco living on the street living in their own feces because guys on wall street are in sync it's necessary to create scams to just rip capital out of these markets and so you have a dysfunctional dystopian fishies austere called united states of feces as well today rename as to replace the stars with little piles of dog poop and say this is where we live now thank you wall street this show for suggested a campaign by silver crash j.p. morgan crash j.p. morgan by silver and that was back in two thousand and eleven and that was based on the notion that. j.p. morgan when they did the sweetheart deal where they were gifted bear stearns over the weekend in two thousand and eight when they collapsed well they that they had inherited this huge short position that bear stearns held in silver so again these are in the futures markets they had

a short position that was greater than the in. silver even available for them to close to that and we use you pointed out that if every person on earth actually bought just an ounce of silver or even one hundred million people bought an ounce of silver at fifteen bucks that this would crash j.p. morgan well remarkably here's a story on value walk because apparently j.p. morgan currently has like one hundred thirty two million ounces of silver one of the largest positions in the world if not the largest and the tweets from them do like j.p. morgan's doing by silver and notice that t. shirt the woman is wearing crash a p morgan by silver so they're using a image from that campaign in two thousand and eleven and remarkably here's the chart of the j.p. morgan silver position this is two thousand and eleven and kim fein and this is how much silver they now have and the article in value walk points out j.p. morgan now has

a record high one hundred thirty two point one million ounces of physical silver in this comix warehouse inventory why they ask the start of j.p. morgan's co max silver bullion stacking began only a few months removed from outspoken financial commentator max kaiser's november twenty ten public plea to buy silver crash j.p. morgan this was broadcasted across the world on russia today r.t. is funded in whole or in part by the russian government so they credit you as causing j.p. morgan to start to accumulate silverware in order to avoid your campaign i guess it was you were pointing out a flaw in their algorithm or in their understanding of futures markets in the left that they were vulnerable to any physical purchases of over their vote on their balance sheet it was a balance sheet they had this enormous a vulnerability that on market a on realized mega. and i just lost interest in bed this rest that was not being

accounted for and that as a player at the time you know if people bought silver in the process everyone from seventeen to fifty and that campaign and then of course regulators and the sea you know allowed for a huge paper dump of silver to keep the price down by on behalf of j.p. morgan who then turned around and said oh my god we have this enormous vulnerability on our balance sheet we need to cover it by buying a lot of silver so now they were over at the t.v. morgan was one of the biggest buyers a silver at fifty dollars you know that they were horrible for about six months to being put out of business yeah which. campaign it spread as it should have jamie dimon would be completely out of work at the moment he would be like with black master selling hot dogs in london or something but you know that now they've covered there and they they've bought a bunch of silver obviously and they're obviously not short they're they're not really a big hole in their balance sheet down so they they're invulnerable now they're just the

a monopoly behaved with monopolist predatory crony capitalist dirtbag the article that also says as a quick aside the russian federation has been actively acquiring bullion heavily over the same timeframe here the pictures to prove it and they have a photo after photo of all these gold bullion bars that the russian federation has shown the central bank has revealed that it was destroyed that's reversed propaganda and they also had they had one photo of some silver bullion so there you know apparently they have been buying a lot of silver and a lot of gold according to that they could they should absolutely be because they understood what we were saying at that time and we told any government that's interested in selling themselves against a dollar collapse to be buying gold so another story related to silver this is interesting because it comes from clive mond and he's often on three to one gold and he's kind of one of the. the more like conservative he's never been really one

of those like silver buy silver by gold or like he's never been a super cheerleader he's always very calm and rational and says well you know it's overbought now. you know gold could fall for the next three years and then ended up falling for you know or staying in there in a range for about five to six seven years but now here's an all caps article he writes which was kind of crazy but it's gold silver clive's on silver at one eightieth the price of gold this is crackers a very serious anomaly has arisen with so over weight for silver us dollars sixty and seventy five is now one eightieth of the gold price at one thousand three hundred sixty seven dollars an ounce this is crackers gold geochemical abundance is four parts per billion silver's geo chemical abundance is

seventy five parts per billion therefore silver is roughly twenty times more abundant than gold therefore if the markets value silver as geochemical abundance relative to gold the silver price should be sixty seven dollars or an ounce or four times the present price obviously you know markets are subjective all value is subjective so people do value gold more than the geochemical abundance of gold versus silver and platinum or play b.m.r. any of the other precious metals are metals created by the explosion of stars and they are distant past but nevertheless he's saying that ratio there is a gold silver ratio that is storable sort of average and it's way off either gold is going to have to fall sharply to meet the same ratio to silver or silver is going to have to rise. sharply and with the dollar trending lower it would implies

that gold and silver are be moving up so if gold really breaks out of this long term kind of lackluster performance then you're going to see silver obviously outperform gold as it is always the case is more volatile than gold so it's super cheap if j.p. morgan is hoarding silver you've got j.p. morgan working for you know. other banks are probably buying it the central banks of various countries are buying precious metals i mean this is probably a fantastic time actually this sector is obviously very conspiracy theory oriented and believe in the superpowers of the likes of jamie diamond so a lot of conspiracy theorists will of course look at this and say well should the price of silver rise haha j.p. morgan has a lot of physical silver it's a dump on the market so that's the conspiracy theory interpretation of silver being able to even rise above six hundred seventy five well it depends if they want to dump their silver and buy dollars but at the dollars collapsing that would be

stupid the word they're buying this summer because they understand the dollar is on the precipice of collapse and so you're not going to dump your silver or gold to buy a junk currency like the dollar so if you are a well you know j.p. morgan you print dollars this is the most money is created by issuing dollar yes and that was not a crisis over higher yet so you know they can put all the money they want and still will keep skyrocketing so i mean this is the era of silver and gold now in the we're leaving the era of the u.s. dollar is rolled out here being that could be this is an opinion we are offering and another opinion i will offer in the last few seconds here is that it will be interesting post these regulatory find some posed on certain banks who were found to have indeed been many bin laden silver futures in particular so it'll be interesting to see with that if they're not able to do that so easy. and they've moved on to manipulating the vix whether or not it's me yeah exactly so it's

a movable feast when it comes to fraud on wall street yeah well all be having a lot more to talk about after the break so don't go away. i would still like to be for this because everyone in it for the sake of peace and stability that with it's the russians or the americans or the pakistanis or the indians or the month by and large we are addicted to the theme just peace and stability within the region now if that is the board then. no one is done or for the. presence of foreign troops inside of one this. would be what the region.

focused on ending the war that's not intermingle to humanitarian concern which is falling apart schools bombing of civilians the shelling of damascus by rebel groups . and also the bombing by the. summits that. the political objectives which some people may still. welcome back to the kaiser report imax kaiser's i'm not a star to measure our stein author of planet mitch welcome back it's great to be here max right now mets for several years now we've been talking about something called the vix the volatility and x. and you are on the front line of money management you are looking at these markets every single day you pointed out to us on several occasions that the vix is that what it appears and there are a lot of irregularities going on with the vix and here suggested that the best way

to manipulate the market is to manipulate the vix because it's the tail that wags the dog can you just walk us through how that is how that works and what we've done we'll get into what we've seen recently that well absolutely i mean you know as we've discussed in numerous occasions if you as you pointed out the vix index originally was trading back in the early two thousand may be seven hundred or six hundred contracts per day that has increased two by twenty thousand percent so if you just look at the volumes of increase in the amount of money that's being spent on shorting volatility it's just amazing but you know there are other products that are going to cause a meltdown the vix is one that's easily to easy to manipulate if you understand how the basic markets work not to get too complex the vix as we've discussed and gone on ad infinitum is a manipulable index and there are other problems systemic problems within the

markets what's happened in the past nine years is the federal reserve has created grotesque asset bubbles in the bond market the property markets and of course the stock markets so these markets are based on printing hundreds of trillions of dollars with coordinated global central bank actions around the world starting with the u.s. federal reserve the bank of japan and the european central bank of course and the bank of england does roll back that extra seconds as you point out. it started out with relatively low volume it's a wall street grade a coming out with products and they come of products all the time because they need stuff to trade because they get money trading stuff so they invent stuff and then vent products and some of them work and some of them down and this volatility index is a product that is supposed to track volatility and it was came out of the brain wave of some financial engineer some day and they launched it and then what happened is that people figured out that if the federal reserve is going to prevent the markets from going down by constantly buying stocks by printing money then you can make

a lot of money but as you say you're going to short volatility you're going to sell the vix naked in cape that cash you know you're going to be a seller of this mix because the downside risk is pretty small because the federal reserve is always going to be there to buy stocks if there's ever any slippage or price movement down you know they will remember the greenspan put became the bernanke he put became the janet yellen put and stocks just never ever go down because the fed is out there buying stocks so then what happened was if you want to manipulate the markets in a quick and easy way because of the as you point out the entire operability and interconnectedness of all these markets if you were to simply manipulate that vix you can buy algorithmic extension because it's all connected manipulate the s. and p. as a whole it is that a fair statement what i think is going on it's very difficult because the fed is incredibly opaque as to what they're doing and will never really know but i can

tell you for a fact because the swiss national bank is purchasing massive quantities of u.s. stocks and they're buying u.s. corporate bonds which is impacting the market the same thing with the european central bank so you know the swiss national bank should be a central bank they should be speculating and manipulating u.s. stock prices and u.s. asset prices and that's all part of the bubble now whether the u.s. is buying vix or pushing the vix down to suppress fall. i'll tell it when causing people to rush into the market to offset what they're doing in the futures market that is a definite possibility and that could be part of what we're seeing but look as i've always maintained there's always a cause and then there's a reaction and then there is an event and then you have you got to have a result so so with the vix collapse we've seen one e.t.f. which was you know the jokers who created the products so and one thread that to go back to what you said about all these products that are created they all generate

fees the more products the more fees now do you get crushed by buying my products who cares i make my fees so it doesn't matter this is all about making fees so they thought that they would be cute to say oh you want to go short vix well let's see the opposite of vix we'll call it x. i.v. right so look you keep investing in this investing in this you make ninety percent a month ninety percent a month ninety percent a month and then in one day you're drawdown is ninety percent of everything you've made in two years i warned about this many times same thing with exchange traded funds which i've told you were the devil's tool those heroes i'm telling you are also the tail that's wagging the dog and we that's a long conversation because not a whistleblower has come forward to tell regulators that the fix is manipulated rights are now what you've been saying for years right is now been confirmed by a wessel blower so exactly what has this was a blower said and what is the proof of what they said and as it. went easy

i mean look there's no regulation i mean we have seen that our government has no interest in regulating anything is what's the proof i mean what you need is a regulatory body to go in and find out who's buying who's selling and what it's correlated to and you need the fed to disclose exactly what they're doing until we see that you can blow all the whistles you want but there's no you know nobody's going to do anything so it's a great or look at the banks to keep you know. you guys focus on this on your show the banks keep violating numerous laws nobody ever goes to jail nobody like in my book planet ponzi no bankers ever jailed around the world no matter what happened look at the hundreds of trillions of dollars of wealth that was crushed out of the market during the first credit crisis the next one going to be much bigger but none of the bankers were punished that even alan greenspan the old fed federal reserve chairman said numerous laws were violated we don't need new laws we need in forstmann of the existing laws nobody wants to enforce existing laws the banks all

violated laws nobody went to jail so what kind of message does that send look if you get all whistleblowers you want but then they're going to say oh yeah we're going to we're going to call a committee we're going to investigate we're going to look into it we're going to we're going to we're going to let you know about it right so this is the scenario this same manipulation and then this is collapsing catastrophic collapse of the a.t.f. i mean so it's a product that goes back to the portfolio insurance of one nine hundred eighty seven and led to the crash of one thousand and seven then you had the subprime credit crisis of eighty eight two thousand and eight which was just the rate packaging. of assets in a way once again to create a product that was not really needed but create a lot of faisalabad to be is and there was a collapse so wall street is never ever going to stop creating these products that have no real application or yes but they do create systemic risk they blow up and they cause huge problems and there's nobody stepping in to stop it that hasn't been in thirty years and you know max also you know there i was long volatility on february fifth and we had that meltdown and you might have seen on my twitter feed

i said these guys you know they're marking they were marking to market mark to market is what they closed their book out at the end of the day to prices that were so off market it was ridiculous it was obvious to me that there was some systemic failure that they were trying to hide by the prices that they put in you know it's like saying that the asset at the close of the day was worth only five when it was really worth one hundred propaganda what is it. no they would have to they would have to come in and wind the companies up because they would say look if you market to market then you're insolvent right and that's why there was a surprise this is mark yes a mismatch so the prices are masking something that is catastrophic in the sense so it's price propaganda it's systemic failure and price to create the illusion of something then you've created price propaganda but i caught a chance years or so charlie munger you know partner warren buffett right he says regulators should back off wells fargo they've paid enough for their multitude of

crimes over there wells fargo korea charlie munger what do you think well i think you know berkshire hathaway warren buffett's the biggest shareholder of wells fargo isn't he and you know look charlie munger is past its sell by date what does he ninety five now i mean that sounds a just i mean i hate to cast aspersion charlie munger just because you know they are one hundred years old was saying here is be uttering nonsense and it is don't diaper what they do is there he's talking his own position right so of course if you own the most shares of wells fargo you're going to leave fargo alone you're going to say they never did anything wrong because if the stock goes down your investors lose money so you and the the other problem is the media now it's all fake news i mean so of course they're going to put him on television to pitch his own book right so he rocks up and he says yeah wells fargo didn't do anything wrong sure she'd go hire buy him go buy them but here in castle wells fargo they patently did lots of stuff wrong they stole from people's accounts i think all money really didn't right they went into and took money out of corporate business accounts and

charge people fees that they weren't authorized to charge so i will be here just as well why don't you go for that why is there is just a system for a while fargo is different than everybody else i mean if i want to lock over liquor store i'd be in trouble too big to bail too big to jail and too connected to prosecute right. well i mean and then you know he likes to get on his moral high horse and lecture people about how to make it and obviously the way to make it a. if charlie munger is to be a large serial arsonist dick crony capitalist pig him and warren buffett i mean that's well i mean look at their big stick in the one nine hundred sixty s. and seventy's and eighty's is value investing. you know value investing worked back then but it doesn't work anymore i mean i would argue that right now the markets are too distorted from government intervention so look we're going to have a collapse me you can't you know there will tell you the best thing when when you had a sixteen year bear market and stocks are trading at below their breakup value. and

yet that ended you know ten fifteen twenty years ago when markets started to trade well above their intrinsic value based on federal reserve money printing printing right now we're talking about valuations which if you see quickly adjust the price earnings multiples we're talking highest in history i mean even above a lot of them are trading above where the dot com bomb was so no you know people are saying it's different this time look i've been doing this since the one nine hundred eighty s. it's never different any time not this time not next time not any time it's never different you know give me a scenario why it's different. when i'm going to get you to stay for another segment sure all right but at least for me let's just wrap this up but i will get into some more stuff here j.p. morgan apparently is very very long silver you know this is a long running story here on the show be we're going to get into that additionally in a second segment is as well so stay right there that's going to do it for this edition of the kaiser report with me max geyser and stacy herbert like to thank our guest mentioned and author of planet ponzi eight now available esperanza if you want to

reach us on twitter it's kaiser report until next time. fifty years ago breaking within to come to go on as a sleeping pill and justice would turn me in because i had to. the side effects were terrible but not on the road. nor the war. across europe victims are starting legal battles demanding at least some compensation. in two ways first will the physical damage

itself as well as the concert mind of the people who actually perpetrated this crime has never been the justice and there's been a couple. of . long and welcome to well to part the concept of geopolitics as the grand chessboard the region aided in asia and it is also in asia where that vision is unraveling most rapidly the united states still maintains a military foothold in afghanistan but all around the country said b.z. building new networks of trade and diplomacy pulpwood is the region at defining and perhaps redefining its own imperatives well to discuss that i'm now joined by him

that read bonnie hart former foreign minister of pakistan madame hard's great to talk to you thank you very much for your time. that had to be now pakistan's foreign policy has made a very dramatic shift over the last decade or so and it's interesting that while your successive governments may have disagreements on internal politics there is a quite a bit of consistency when it comes to foreign policy in terms of putting regional agenda regional relations and had those geopolitical interests what do you think spurred that change and how sustainable it is it's not true change i think it is perfectly i would even want to argue that it is in any way unsustainable because as i said it is not true change french speaking to something that they should've had embedded within the foreign policy paradigm of pakistan from the got our independence and own fourteen focus nine hundred forty because seven.