basically moved from the m.f. global balance sheet in the us to the m.f. global ltd u.k. subsidy and that's global which would have been under the financial services authority that didn't question where that money came from or how it related to customer funds that basically turned a blind eye which is what it tends to do although again the f.c.c. turned a blind eye to the rest of the almost billion dollars worth of customer funds that also managed to disappear and be misused in misappropriated fraudulently spread about by m.f. global are left to go a little deeper let's bring in j.p. morgan goldman sachs reports now suggest that m.f. global is offering assets to goldman sachs in the days leading up to the firm collapse on october twenty seventh but that j.p. morgan never transferred to funds m.f. global as there was that outstanding one point two billion dollars quite a line the brokerage firm had with j.p. morgan so your thoughts on j.p. morgan's role in the m.f. global story know me well first that look at the one point two billion dollars again for a second that one poi

morgan sent a letter out to m.f. global which was a comfort letter in which m.f. global was so s'posed to say that no the funds that you're dipping into our customer funds they never got a response from m.f. global so you think that their hands were in the pot in that regard that they sort of never got the comfort level but they went ahead and sort of took customer collateral we know that the trustee has one point five billion dollars that he has which he could distribute that would get customers about ninety percent whole yet he's holding back on those funds why because it's another m.f. global entity called m.f. global holdings and j.p. morgan is trying to claw back across the balance sheet once again and to grab that grab that money from m.f. global holdings into the m.f. global customer counts and once again we've louis freeh managing a second bankruptcy but this is all an a in accounting problem when you have trillions of dollars worth of derivatives a small percentage loss. results in a in a debt that cannot be covered so customer funds always have to be tapp

holdings into the m.f. global customers and once again we've louis freeh managing a second bankruptcy but this is all an a in accounting problem when you have trillions of dollars worth of derivatives a small percentage loss results in a in a debt that cannot be covered so customer funds always have to be tapped in that regard and it's not just m.f. global it's as. when it has a bank account and j.p. morgan chase it has a bank account at bank of america that has a brokerage account that is hypothecated aree hypothecated it's everyone that's living in the physical world that is reliant on an accounting system which is broken you rely on oil which is not properly cost accounting we have u.s. military projection one point two trillion dollars a year in total and that is not accounted into the price of oil and we see em populous empire breaking down in middle east north africa we see the us desperate to try to keep global trade active and we all monitor the financial aspects of this breakdown crisis because it's somet

fiasco because m.f. global was a brokerage bankruptcy which is not that i'm talking of it has happened many times since i'm thirty eight but what was unique about the m.f. global issue was that the federal regulators and the bankruptcy judge that handled that bankruptcy privileged j.p. morgan over the customers now this is key because what happened was that customers who had money with m.f. global who in other circumstances ordinarily should have gotten all their money back because they hadn't they were having that money in play they simply had it on deposit with them just as you or i would have money on the possible local savings and loan well these customers lost their money to j.p. morgan the government privileged the bank over the individuals who had money and they lost money that was rightfully theirs and this is not money that they had a margin or that they had put on jets or any sort of anything like that rather it was money that they simply have with m.f. global but that was they are now the problem is

rule which restricts you know what firms like m.f. global can do with their customers money i mean it's just every kind of connection yeah i'm sorry i'm sorry but i got to go out because we have to hit a break here but. it all makes very much sense and just too little too late i guess to start regulating on what was legal and still made everything go around thanks so much for joining us tonight. my pleasure thank you. for taking a break but we will be right back. to the police corruption. like what a protester nobody seems to know. that never a pepper sprayed the face but part of the argument that they're being overly dramatic. you know sometimes you see a story and it seems so silly you think you understand it.

money any way it wanted basically and now a billion two of it is gone and no one can account for m.f. global went into bankruptcy and three you know a month after of global goes into bankruptcy they passed this new rule called the m.f. global rule which restricts you know what firms like m.f. global can do with their customers money and i mean it's just every kind of connection yeah i'm sorry i'm sorry i got to go out because we have to hit a break here but. it all makes very much sense and just too little too late i guess to start regulating on what was legal and still made everything go around thanks so much for joining us tonight. my pleasure thank you. for taking a break but we will be right back. to the police corruption. like what a protester nobody seems to know. but never a pepper sprayed the face by part of the argument that they're being overly dramatic. you know sometimes you see a story and it seems so small a plea you think you understand it and then you glimpse something else you hear or see someone.

m.f. global's balancing your thoughts on the connection with a silver gold m.f. global collapse and do you see any connection there at j.p. morgan well you can't dispute it's very odd that those numbers line up that's about all say i think you make light enough for people to think on their own well i will add to that is that i'm remiss and i don't mind being wrong but i really upsets me because i've stated from the get go that if you had a fully paid for warehouse receipt plain peanut storage on your silver or gold and it was one of the warehouses which is really a bank approved by the c.m.e. that you were safe and that turns out not to be true looks like it's buried right now it's in the final rule it may be on and might have missed let's go back from vacation but regardless it's like seventy two percent so you've actually paid for metal you bought it you stored it you've put all your fees into the storage costs and you're only going to get seventy percent on that dollar i mean this is so so bad and that's another reason you're going to see more movement in the p

morgan m.f. global accounts of buying physical and this is causing the near term price to get higher than the out outward price so-called backwardation and this trend is clear indication of the silverball market is well in place and going much higher i would imagine men yeah absolutely and bear in mind as well we have the the second element of this which is the fact they're exposed to it back in the market for three hundred million dollars where the physical of course when he announced his first purchase of physical in think it was oktober of twenty ten the price was around the sort of eight hundred twenty dollars level and when you consider when you think about a market this stream physical tightness like silver does and someone comes in and they're moans delivery of physical and saw it was no surprise to see that as a major catalyst for the run up to a new fifty dollars the place over a period of about six months i think is very interesting that we've go back creation and brought back buying in saw it

morgan m.f. global accounts of buying physical and this is causing the near term price to get higher than the out outward prize so-called backwardation and this trend is a clear indication of the silverball market is well in place and going much higher i would imagine men yeah absolutely and bear in mind as well we have the the second element of this which is the.

odds go through london m.f. global went through london because they won't do it member the tobin tax is the big issue that david cameron has basically injected the u.k. from the european union now michael thomas said possibly an excess profits tax retroactive to two thousand and seven or some form of tobin tax on trans jackson's or wealth tax the air of money for nothing will be over that's what he says but it won't stop at taxes at all because the people the people who have been defrauded and the people who do not get justice because there is a queen there is a prince philip there is a ben bernanke he there is a mervyn king there are these people standing between you and your wealth they have they allow for the bankers to steal your wealth over and over and over and they will not ever do anything to stop it so there will be prosecutions and show trials says michael thomas there will be violence mark my words he says houses burnt property defaced i just hope that this time the mob targets the right people and wall stre

bump up in the mafia organization to get gangsters john karr's on another proven killer from m.f. global former governor new jersey ex goldman sachs terrorist he's got a big payday coming i guess or move him to a new office and give him another role in ransacking the the economy what are your thoughts on john course on at this juncture and the school has been talked about to death but i do you know and i mention this on metals interview i did recently it was a huge deal for people like me the head is sort of following the markets in the background saying ok will what's their next move where they can attack futures are is the theft good to excel or it is that is john coors on has seemingly gotten away with what he's got away. with and the media really giving him a break and a lot of defense and the fact he's looking for an office as you say and was looking for a chateau in france on if you saw that story a few weeks prior to the bankruptcy that it will this all further proves the fact that there is no rule of law in the united states and by participating in the u.s. if you see no of the m