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tv   [untitled]    November 9, 2010 11:30am-12:00pm EST

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i have asked geyser this is the kaiser report markets finance and scandal i'm max kaiser this estate's here but get a good shot of stays there for debt that's right stay sending him the rarest element known to man gone and you know stacey speaking of rare elements i was reading about how in hong kong it's rumored to be true that most of the brokers there are snorting lots of cocaine and it brought back memories to my days on wall street back in the eighty's when the market was making new highs the new york times estimated that ninety eight percent of the professionals working on wall street were doing cocaine and of course the market kept hitting new highs now hong kong keeps hitting new highs why because the brokers are blitzed tunku now america dealing with the depression what are they mining what are you going for lithium that's right afghanistan what if the i'm opium downers. you understand drugs
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drive the global economy more on that later let's get some of the headlines of stacy talk to me well max talking about the global economy first headline is stiglitz we have to throw bankers in jail or the economy won't recover so this is nobel prize winning economist joseph stiglitz saying that the reason why the economy is not recovering is none of these bankers are in jail. now there was one thing that he said in particular that made me think of the rest of the stories in the headlines i have the legal system is supposed to be the codification of our norms and beliefs things that we need to make our system work so this codification of our norms and beliefs can be seen in the very first headline i have following this shameless britain lacks embarrassment about debt so these are our norms we are not embarrassed by debt anymore according to
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a new survey coming out of britain britain has become a shameless nation where a third of adults are not embarrassed to discuss their debt and eighteen percent feel no shame about bankruptcy they have a debt addiction and they're in denial about their dead addiction whether it's cocaine heroin or debt whether it's the british people who went overboard on real estate speculation or whether it's brokers in hong kong or whether service contractors servicemen contractors in afghanistan they're all on drugs in one way or another and so joseph stiglitz is asking where is the justice where are the bankers being arrested how come they're not in jail ok william k. black asks the same question you put over a thousand in jail for the yes no prices how come they're not in jail i've been saying this for years they've been committing fraud it was fraud in two thousand and seven eight known to be fraud next year geithner burning summers they're all crooks they should all be in jail they should all be doing so well obama lost a midterm election what because he's soft on financial terrorism soft on financial
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terms of now he's live a. doc nobody loser and they got fricken republican tea party it is down there in washington or just the koch brothers it's folks there is for the same fricken corrupt most notable wall street is that we had before except worse but mags that the legal system is a reflection of the population itself so these populations if they're operating their own personal ponzi scheme where this is the policies they want and you see that in the following headline the federal reserve just slammed savers and gave a huge gift to the banks so everybody thinks they are a bank themselves by going into huge amounts of debt and therefore all policy is in order to encourage more debt and order to make the debtors happy because anytime interest rates go up or the cost of servicing their debt gets beyond a certain limit they screech that's what the savers the people who put money aside
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after they've worked for it are subsidizing the speculators and the borrowers this is the true divide that separates the have from they have yachts and this is truly what's going to counter pull us into the global conflict the. against corporate and banking occupation it's savers versus speculators the savers i'm only one recourse and as true on the central bank level and as true on the individual level it's precious metals that's the only recourse we have and the gold you live are going to win in the end and the price tells us this let's go back to this heaven where the savers were wiped out of course this is the new round of quantitative easing and this headline on this reads wall street's cash cow tow the fed reins money on corporations but leaves main street high and dry so of course this is part of that whole trickle down thing where all the fiscal policy and all the. any policy around
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the population the bottom ninety nine point nine percent is all very stair and austerity measures that flicked it upon them and the theory is that monetary policy will remain this free money down upon these bankers who will bless us with more loans since you know what we're talking about here we saw with americans pushing the indigenous people into reservations with the manifest destiny then rolled across the plains of america now the walmart of korea indians the people who live at wal-mart waiting for their food stamps coupons to renew it the stroke of midnight will be put on reservations and be you know basically put out there to die we saw this in the forty's when they open concentration camps the final solution to get rid of all these poor people that they made they made poor this fascist made the people poor and to get rid of their crimes they burnt them now in america to
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get rid of these poor people they're going to come up with their own final solution is going to cut them off from the current supply co to the t. i'm going to go to the a.t.m. for their food stamp to go down to the wal-mart company's store to get a slice of processed cheese will do that. and you are no longer an american please die in the mud well how these people are dying in the mud of course is the population is being thrown out of their homes through this foreclosure crisis and in this article about the fed raining cash down upon the bankers they talked to about bill gross who heads the largest bond fund in the world and he was asked how he made so much money over the last eighteen months and he said in addition to a variety of other investments he's made money by quote from mortgages yes in terms of buying them in front of the fed and selling them to the fed over the six to twelve month period of time so they're front running the fed they know he knows he speaks to officials at the fed and he is able to know when they're about to buy mortgage backed securities he goes by saw these homes foreclosed upon and packaged
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into mortgage backed securities and then sell them back to the fed but is that. well psycho inside information is illegal yes it is apparently no it's not illegal bill gross thinks it's legal why because he like those folks on wall street think he's doing god's work you know he thinks he's above the law now we move on to another part of this well seeking justice from the crimes that the bankers have committed headline reads jamie diamond racketeer oh my god this guy's still walking the streets g.b. doug is still free song prison jamie diamond as the c.e.o. of j.p. morgan the largest derivatives holder is a little girl just crack dealer on wall street who largest fake security virtual nonsense you know market manipulator ever in the history makes charles ponzi look like mother teresa jamie frick and almost didn't want to manipulate her diamond issued hand in those vertical stripes he wears down there when he goes to work for
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the horizontal stripes go to jail oh well of the lawsuit has been filed against him a rico. so he's being charged with racketeering yeah talking in a class action suit filed according to the complaint j.p. morgan amassed a sizeable short position in silver futures and options in part through its march two thousand and eight acquisition of investment bank bear stearns they were the acquisition happened over the weekend where they got a sweetheart deal the fed forced bear stearns all their good asset onto the books of j.p. morgan all the bad assets were taken and giving to the taxpayer and i was going to wall street you know we knew all about bear stearns let me tell you something about the story we talked to at the at the very beginning of this show a guy named jimmy cayne was known for his. election for something that sounded similar to his name where is he now he blew his entire fortune it's not because he was using all his mental faculties at the time or was a given
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a little bit too to much. the ravages of the byproduct of america's military excursions into. afghanistan jimmy cayne the former head of bear stearns lost his fortune and much of same way bernie ebbers did he believed in the ponzi he was pushing he held on get on your own supply that's the cardinal rule of the a debt pusher the debt pusher jamie dimon he doesn't make the mistake but you don't know you know it's still early in the game for jamie diamond he may go the way of jimmy cayne flat fricken broke so this racketeering lawsuit of course is something that you've been pushing over the last few years you're saying that it's an organized crime syndicate and the suit alleges that third in early two thousand and eight that two banks j.p. morgan and h.s.b.c. began manipulating the silver futures market by accumulating an unusually large short position and then secretly coordinating enormous sales of silver futures contracts on the commodity exchange which is known as max and is part of the new
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york mercantile exchange rudy giuliani went after drexel burnham concerned with rico ok it's the only way you can actually effectively break up the rackets on wall street and this is true whether it's organized crime with al capone in america whether it's goldman sachs change j.p. morgan citigroup of course speaking to drug dealing in oh we've got the case with wells fargo that bought i think was washington mutual that was implicated in a multi hundred billion dollar a mexican drug cartel money laundering scam so i mean that's what we're talking about here remember in two thousand and eight stacey herbert at the nadir of the financial crisis when no bank on earth had money to meet repo and overnight obligations the only place that had money were the organized drug cartels who supplied the cash to keep the global economy running for those critical forty eight hours those are the only folks with actual cash of course they're in the pocket of goldman j.p. morgan city bank of course they're all part of the same fire. natural
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infrastructure and of course they're all abusing the products of these drug cartels all over the world and of course that's one of the reason why the stock market's going higher because the brokers themselves are stone crack out of their mind on drugs well the final headline is relating to this quantitative policing the u.s. government will spend five hundred eleven million dollars to expand its embassy in kabul the u.s. ambassador said place for something you know the resale market on the on the opium this is a this is a sell financing embassy expansion five hundred million they'll make that the first twelve months on the street sale of all the crack and opium that the government will be selling in the ghettos around the world and particularly in the us in the ghettos that they create you know corrections corps of america who who's behind the the immigration bills in america it's correction corps of america to fill their jails because that's their business model well stay here with thanks so much for being on the kaiser report thank you max now when we come back i'll be talking with
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probably the foremost authority on the silver market in the world david morgan so don't go away stay right there. for the full story we've gone to. the biggest issues get a human voice face to face with the news makers. welcome back to the kaiser report special guest with me today david morgan who publishes the morgan report david welcome the kaiser report if you are screwed to be with you now i've been watching i've been following your work for years now and
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you have been the man to go to in the silver market on this show we talk about gold all the time but now silver has bolted out of its trading range and want to tell us a little bit about what's happening with silver relative to gold just to get this conversation started from the first of august of this year so a couple months ago the gold silver ratio was about sixty eight to one so it took sixty eight ounces of silver by one ounce of gold today it's about fifty six so silver is really really accelerating the last couple of months once a go to the twenty dollar level in u.s. terms it's really bolted up to use your words in the kitchen a lot of attention all right now the big story in precious metals is manipulation we've had bill murphy on the show before talking about well we're talking about the gold suppression schemes and now bart chilton over to see if to say the commodity futures trading commission is step to the plate and made some comments that indicate that he's aware anyway that there is some shenanigans going on in the
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silver market the the comix market what's the what's the current state of play right now because the there's a huge incentive to keep precious metals cheap because precious metals are almost the antithesis of the fractional reserve currency ponzi scheme economics that is destroying the the economy some would argue and precious metals are kind of the antithesis of this of there's an ascent of the keep it cheap what's the state of play right now how close are we to getting some clarity in terms of what this suppression of manipulation is all about where we're very close i mean as you know when to believe. that there's been manipulation but he chose his words very carefully actually said influence the price i believe that you can't manipulate the long term trend that's been up for whom silver for a decade however within that trend you can smash the price down we all know price
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moves markets a lot of wind pressure moves it up a lot of so impression moves it down during a see if you see here is one of the best traders in the market testified that about twenty five percent of the above ground supply of silver was sold in one triggered now that's going to move the price down and move down significantly now since that time to millibar chilton's the price has been influenced in influence over and over again particular on options expiration i think that the people that are in the position to be able to move those kind of markets are being watched more closely because we haven't seen much go on since august first we've seen a little bit of short covering as the prices going up but it's such a small amount i'm not going to get all excited about it yet but i believe that the open interest is huge we don't know the end of the game until the open interest decreases to see who the winners and the losers are but i think we're getting close to the sea of to see officially making a statement about your position limits or some type of rule change or whatever but i don't know exactly what will come out now what's happening over in the let's say
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the s. and p. futures market just recently we've had the scales the high frequency trading going on quote stuffing as it's called where the algorithmic trading is coming in and they're jamming the price discovery that is to say the buys in the south coming in to create these markets they've created fake orders fake volume and so it's now it's being widely accepted that these markets these flash crashes and the manipulation that goes on with the stock market is becoming more common knowledge but and the goal and several we've seen this for years now it seems that at some point there's going to be a realisation that yell all that market manipulation of the s. and p. futures contracts is happening and that happening on these golden futures contracts for years. and the incentive let's talk about the incentive because i think people don't understand because they still market manipulation and always want to go up but here it's the opposite you want to go down and before we were talking about this the silver you discover users this is the association talked about that is
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that actually this is new to me please a lot of right on this well there are a commodity that has or users association of silver and this is a group of the biggest users in the silver market which is like kodak dupont dow chemical those type of companies and they have an association and you can take their word for whatever meaning you wish but they basically have a good contract with the and producers which is basically your base metal companies like r.t.c. your b.h.p. those type of companies that spin off massive amounts of silver but really don't care about the price because their primary markets are lead and zinc as an example so silver of the silver went up both three times it might add a tenth of a cent to the bottom line because there's so much of the other metals that are produced so those metals are in the system and these users can make deals with them in the forwards market not in the futures market which most people even though you know we're talking about and they keep getting their steady supply and they have an incentive to manage the price let's say so that's been going on for years and i
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defy anyone to come up with the gasoline use associates or they go along those lines so that's step number one step number two is this what you're saying on the s. and p. you've got this spoof bits so explain it to the public i think in the easiest terms is if you had an auction and you're off an exotic car and it was got their little hands up with the little cards for the number they start off the bidding and there's just tons of numbers up there are tons of bits of the auctioneer's that the market look at all these bits and he goes then ok rex and it's you know two hundred thousand and two hundred thousand and they look around all the bids are pulled out that's it well this is what's been going on the futures market that's one of the lawsuits the other lawsuit is on what i mentioned earlier which is the options are . parisian where it's about medically improbable that every time the price gets knocked down and i'm exaggerating slightly but that's been going on for years and chris i've actually took advantage of it myself because it's something the global sit watched it hasn't helped the last couple months so has definitely been treated
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much different. than it has in the last decade and the last few months right now i imagine that in the short term the issue of manipulation is different then the long term trend of the long term trend is that if you look at the long term inflation trends you look at the long term trends of the fraud that has become endemic in the banking system all supporting a longer term price support on precious metals and so over moving the prices higher and what about the fact that the big holders of silver in the fund business for example the eric sprott up in canada or his chief analyst john emery they've said they've come out john embry came out and said he guarantees hyperinflation now the only way he could guarantee hyperinflation is if what these golden so over a vigilante is as i call them get these huge orders and force physical delivery and
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to bust the comebacks there's a lot of discussion about whether you can bust a come x. . because now they settle up in cash they cetera now are these precious metals vigilantes. can they bust can they bust the markets and bust the price oppressions games by taking physical delivery and forcing the issue do you see it happening is this a trend that. can we take some stock in i believe we can also agree dude off the comix i mean when you go back to nineteen ninety nine and warren buffet or do we one of the richest men in the world one hundred twenty nine point seven million ounces of foreign silver the comix had two hundred. a million ounces at that time he only got ninety million off the exchange initially so they made him the way he did it make him anything but he said i'll give you more time to the deal is very very lease rates went to about seventeen percent he i believe he least back
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that forty million ounces until he got it over time so since that time they now have a rule that says you can only take fifteen hundred contracts or seven point five million ounces of silver physically off the exchange you can get ninety billion there's only one hundred million ounces on the exchange right now about fifty percent of it or more is long term investor so the real dealer inventory is only about fifty million ounces of silver so seven months max you're going to take off all the silver in exchange for they're going to do what you just said they're going to own will read the rules will make you settle in cash but that doesn't mean you can't force the issue because the amount of silver that's being invested in and the amount used for an industry in my study which i'm going to be presenting here later today says that in three years we're going to go back to a deficit who knows what the inflation market's going to look like three years from now so i see what i would call a natural corner there's no way out the way i see it so it does have to come from the comix to cause a real problem and i'd say probably the next two to three years right people raise
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people by precious metals and they don't want cash sell if you tell them that well we're going to sell for cash this is going to have a red flag to the ball like what are you talking about i want metal right exactly so you're saying that on the because it's so mark it's not that big isn't even small talk about the actual size of the silver mark because the gold market's roughly a hundred fifty thousand tons i believe and it's got above ground value i haven't done the calculations recently but something of the three to three naturally and range versus six hundred trillion and derivatives just for that perspective but silver is very small we all know the price to go fluctuates daily so a five dollar move in a price of gold buys up the entire silver market. i know there was revealed that in a five dollar price in the goal is worth the entire silver market for the physical market correct and the mining stocks are not a subset even of that number or is it are they right use physical more could be a greater number going to go over there or something but i mean just the physical
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small we're going to another way or asked was asked this once ok let's raise funds . this is this is blood in the water i mean it's going to john paulson or paul tudor jones you know these guys they they know that there's a huge demand demand for us over the industrials they're huge and there's going to be rolling around with solar and food and water processing and purification it's cute you look at an increase of probably two hundred million ounces of the next ten years you've got rampant corruption on these exchanges from the industry this artificially keep the price cheap you've got. it's a liquid i mean it's like with security and it's everybody regardless of what you believe it's thought about where most of the world actually so on that on a technical basis. you got me interested now by the way dave robbie actual sober so. this is an interesting point this is from one of the miners i guess you'd be visiting here in france
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a lot of folks come through france and come to us and they visit mine they have these due diligence meetings etc and they come on the show and they bring me so over this is i'm finding my retirement. i need is another fifty thousand with a lot of shows yet to do so dave margan the physical delivery is a problem and for example all tom talking to folks on the inside all the time and they say that some of these banks who have these silver certificate programs where they actually give you a certificate that's not backed by paper or cash but backed by actual solver and some of the big banks some of the most well known banks that have you know charging bulls as their logo they know they apparently they're having trouble. making good on this they see a possible shortage of dire you hearing anything like that yeah i've heard it time and again i don't make a big issue of it because i really like to deal in facts but i can be relatively certain that there's a lot more paper silver out of some of these banking houses and brokerage houses that say you max kaiser own fifty thousand ounces of silver but it's just like
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a bank run if we all go down or say we want our money in cash so you know ten to one factor may be greater than that same thing on the silver side this is an issue that isn't really discussed very often where a lot of these paper certificates were silver with no clause saying you have to cast subtle i'm convinced that there's a lot more paper certificates over than exist in the physical realm and that's going to cause a problem this is i think also missing back in the what the fourteenth of the four hundred fifteen hundred they sold out of this paper and they didn't have the metal in the vault and you know that was the beginning of fractional reserve banking so if we're confident circle. all the way back to barter i guess in that case it's good to have these stuff these things i know you've got a newsletter writer and i do ok david if i search david morgan on the on the web i'll find all the information put david morgan silver to me there's a lot of david morgan. david morgan so right yeah good good tip all right and
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that's going to do it for this edition of the kaiser and for with me max geyser and stacy herbert now i thank my guests david morgan and want to send me an e-mail please do so at kaiser reported r t t v are you until next time this is max kaiser saying bio.
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weapons of mass destruction the u.s. is accused of feeding its people scare stories about russia and china to divert attention from failures at home. as washington's rhetoric takes the route to isolation of the revelations of george bush's memoirs to see what prompted america's widely criticized one policy. barrier to progress as the world renews pressure on israel to tear down its west bank wall even look at how some are
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cashing in on the segregation. and the suffering is far from over for hundreds of thousands of vietnamese children whose lives have been wrecked by agent orange toxic chemicals used by the u.s. decades ago. you're watching are coming to you live from the russian capital welcome to the program now first off a fear of all things chinese is spreading through the u.s. and is being blamed on the rhetoric in washington now some officials warn america is risking a trade war with its biggest creditor if it keeps portraying beijing as an enemy but as are. reports china is not the only country the u.s. is casting as a bogeyman.


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