A MarketPlace of Ideas

I'm Max Keiser this is the Kaiser report hey we're going to be talking about central banks so I'm from a vomit bag this is handy anytime you take a slice you know pick one of these up so when I talk about central bank's on TV you can really set you seal it up yeah I use it a few times and then send it to the Federal Reserve Bank in Washington DC and they can use it as collateral to help finance the American economy so max I won't say anything about the vomit bag there but I do want to talk about central bank's I want to talk about in particular the ECB in the Reichsbank in the past week they both came out and they warned about housing bubbles how is in bubbles popping up everywhere but we've seen a Toronto for example we know about the 35 percent increase in house prices in the past year before I had it what is like 20 percent and 16 percent like double-digit price gains every year in these housing markets so now these central banks are warning about it but I want to look at the environment they have created in which they've terrified the ordinary person not only into stampeding into overvalued assets but also into acting irrationally so here's the first headline it's really crazy what this ECB has rocked in the land of new refugees and reverse Yankees who will get crushed at the end of the week which was last week something special happened something totally absurd but part of the new normal the average yield of euro denominated junk bonds the riskiest non investment grade corporate bonds dropped to the lowest level ever two point seven seven percent max that is junk bonds in the eurozone two point seven seven percent they're yielding that is in comparison to the US Treasury the 10-year Treasury which is considered the safest of all assets of all bonds and that is trading at two point three three percent at the same time you saw junk bonds and the euro zone trading for two point seven seven percent you know the central bank's warning of asset bubble inflation I mean it's like the IRA right theses call and say hey the bomb is going to go up at some location somewhere they would call in the bomb right so the central banks are telling you about there they're in finance terrorism they're saying we're creating these incredible bubbles we're calling it in if you want to do something to protect your lives do it now buying junk bonds at a to whatever percent yield it is is the same thing as blowing your brains out let's look at the actual chart also because you are indeed guaranteed to almost lose money because junk bonds or junk bonds they're rated junk they're junk companies they're likely to default there's a high chance of you losing everything so you know a lot of these pension funds have to hold these bonds to maturity by the way so they're the European Central Bank is buying up all the sovereign bonds they're buying up the bonds that are unlikely to completely default because they can either print money or be bailed out here these don't companies are unlikely to be bailed out and these pension funds have to hold them to maturity so they guaranteed to lose quite a lot but even just an inflation terms so the two point seven seven percent Europe this is the inflation number in the eurozone is actually positive they have positive inflation at 1.9% which if you subtract that from the two point seven seven percent that investors are getting for giving money to junk companies they're only being paid point eight seven percent to take a massive risk you know why are they just not buying US trade is it in the parlance of wall street you are picking up nickels in front of steamrollers you know the return is miniscule the risk is huge and yes pension funds are forced to buy these things because that's where banks dump their risk it's a toxic risk dump for sovereign banks for big banks they take all their garbage from their balance sheet they stick it into the firemen or the nurses or somebody else's pension fund and then they wait five or six years it goes to zero it blows up and then they blame quote the market it's like arsonists blaming the house burning down on something other than the fact that they just set it on fire so you know this is the game that's been going on for a while instead of having a normal business cycle where you we eat out the losers you weed out the poor performers the companies that are making it or the banks that are committing fraud the central banks have decided to globally coordinate their policies to keep these zombie banks afloat and to keep rolling over their non sellable debts until such time as the interest on all this debt eclipses global GDP and we're rapidly approaching that number and then you have hyperinflation fiat currency collapse and Bitcoin of course would go to much higher here there the nerve refugees are negative interest rate policy refugees these are investors that need to invest their money they have money that they have to invest these pension funds have to invest the money they have to do something with it so they're forced into these negative interest rate of bonds whatever is available that the ECB hasn't bought or in this case then they go into junk bonds in America but this is where the reverse Yankees come is I guess the there is a bigger deeper richer debt market and the Federal Reserve Bank is not buying up as much of all the the investment grade debt that the European Central Bank is because I guess there's less investment grade debt in Europe and the ECB is buying up all that so we have reverse Yankees is the second half of the story issuing junk bonds and euros it's not just the prerogative of European companies it includes issuance of junk rated US companies that seek out this cheap money reverse Yankees is these bonds are calls have become a large factor in Euro bond issuance but not only that you have it in like Pemex in Mexico as has issued one of these euro bonds so I think it's like two billion dollars in the company that's just unveiled out by the Mexican government and it's on the verge of collapse and that they operate in pesos obviously they're going to earn a lot of dollars for their oil but you know you're starting to take these currency risks because people are crazy and desperate for investment these newark refugees will buy every anything even if it's like a bizarre situation like Pemex issuing euro bonds and likely to they've already defaulted they've already gone bust the Mexican government bailed them out well let's take a bigger look at this because you met and that Americans are floating bonds in this euro environment it's a global conspiracy a genuine conspiracy where a bonds are being issued to satisfy pension buyers who by law need to put money to work in some income-producing asset and you mentioned a point eight percent return of course that is only possible to come up with that number if you understate inflation dramatically by two three four or five percentage points which in the case of America and around the world is the case because they don't include in their inflation calculations things like the cost of health care obviously if you live in America and you have Obamacare you've noticed that your health care went up 100 percent fifty percent one percent hundred twenty percent over the past year just have to go up again next year that's not included in the basket of goods and services that is used to calculate inflation so they take out everything that's going up in price they only keep stuff that's going down in price like maybe slave made goods in American prisons and based on that the deflator the inflation deflator they can say that well the inflation rate is a positive and it's low and this bond is you know yielding of 1% more and therefore we've got a positive carry and we're going to keep this Ponzi scheme going and the bankers get fees based on the size of the debts that they underwrite and until such time is the interest on this debt eclipses global GDP and then you have hyperinflation in the global financial collapse the likes of which we've never seen we did see a financial collapse in 2007 through 2009 and that was precipitated by record household debt we are back now in the past week again talking about how the central banks have caused insanity and we have crazy behavior in the US household sector the US Federal Reserve has of course been encouraging more more debt that they've achieved that household debt just surpassed the record level reached during the 2008 financial crisis during the financial crisis that was twelve point seven trillion right before and then it fell and now it's 13 trillion but on a per capita basis is less because obviously the population has grown but I want to say the irrational crazy thing that has asked is mortgage debt which was non-recourse remember the jingle mail that we had back in 2008 when everybody just walked away from this debt that they couldn't afford so it was really no big deal for the average household they could just walk away from the debt and it was up to the banks to sort it out they're the ones that took the risk of lending to these people who couldn't pay it and blah blah blah so now this time around a mortgage debt has fallen from 73 percent to 68 percent of all household that has risen is student that which you cannot walk away from because remember the federal government also under-eyes almost all of it and they can come after you for your Social Security your Medicare until you're 95 years old in the old folks home they'll still be taking money from you he ends auto loans and this is a remarkable chart because this is the auto loans outstanding and you're starting to see these debts roll over this is where the new subprime is because to get a mortgage you need almost perfect credit score to get an auto loan you didn't need any credit score these days and this is the securitized auto loans this is back during the 2008 financial crisis and it collapsed without all the outstanding auto loans right now as we said in that period 2008 the banks need to be punished for their criminal behavior in illicitly selling toxic loans to the economy causing a collapse if the bank's created that collapse and there was no reform they just they just put a block in front of subprime lending but you know if you have a say a house or building or something and you try and protect the rats or the cockroaches from getting in you just can't block one hole on the wall you know you've got to block all the walls or you've got to exterminate all the rats so all they did was they block the subprime hole and the banking rats came in through auto prime sub auto a lot of they came in through a student loan hole and then the rats are back in the house the Goldmans the JP Morgan's they're back in the house the raps are back mm-hmm and they're destroying the house once again the foundation of the house ie the economy is obviously the real economy and you need all of this money that the central banks the ECB the Reichsbank the Federal Reserve Bank the Bank of Japan the Bank of China they've created a lot of money and in order you need that circulating in order for the economy to grow and I want to turn to another headline relating to how all of their crazy shenanigans and the unrestricted banking system financial system that we have we had an opportunity Obama had an opportunity in 2008 to fix the system we have rich retirees are hoarding cash out of fear a new study by as many US retirees keep saving even after they've retired the average American over the age of 60 cut spending 2.5 percent per year or about 20 percent over a 10-year period according to analysis by the University of Michigan as a result millions of Americans are living to frugally Matt fellows United income CEO says on average and adjusting their for inflation retirees are entering their 80s richer than they were in their 60s and 70s and this is getting worse and worse and they're saying that Americans are dying with more money than they used to they analyzed the incomes of estates of people who died in 2000 and from 2000 to 2002 vs. 2010 to 2012 and they are dying with 130 percent more partly because even though they have Medicare which covers most of their health care they sell to cover like 20 30 percent and you're still getting a the the health care costs are out of control so they they're afraid to spend because they don't know how much health care bills they might be stuck with heroes héroes they're all heroes they can't have capitalism without capital anyway we got to go to the second half thanks for what I don't go away [Music] welcome back to the Kaiser report I'm Max Keiser time now to return to Craig hamkke of TF metals report.com Craig welcome back max – it's fun to speak with you I want to continue on our conversation from from before just to fill in some of the gaps for those who are just joining us we have a situation in the global economy essentially where the Japanese yen is a funding currency because the interest rates are so low it's the cheapest to borrow in the world to use those borrowed funds to buy into bonds of central banks that are holding them to keep prices keep interest rates low and as a way to make it cheaper to roll over their toxic portfolios of junk debt another debt and sovereign debt and all the garbage they've been accumulating over the past 10 years during the financial crisis post financial crisis because if those bombs were allowed to trade freely in the market then it would be obvious that these banks like citi bank hsbc goldman sachs warren buffett's corporation are all technically bankrupt and that would cause of course a seizure and credit freeze and a nuclear winter in global markets and that won't happen so this Ponzi scheme is perpetuated on the back of the Japanese yen and this is reflected in the gold prices as you pointed out and med Maeda leyland a pointed out if you take those two charts you invert the gold chart you see that these two are correlating brilliantly because and gold is the canary in the inflation goldmine if that price is allowed to uptick at all it would tear down this house of cards and so this is all quite obvious high-frequency trading is the method of choice to manipulate these markets and Craig you left us kind of on a cliffhanger there because you were talking about the VIX which is the volatility index the volatility index is another one of these inventions by banks to help manipulate markets tell us tell us more about it well and it is at the end of the day max it's about not managing the market and getting it to continue just to go straight up right as Ben Bernanke and the rest of his Fed governors and Chairman that talk about the wealth effect and how rising stock prices make everybody feel better and go out buy refrigerators and new cars and all that kind of stuff so they have this vested interest in keeping the stock market go up and in fact I would say that's like the feds primary indicator now for raising interest rates everything else going to act the US economy isn't growing there's no jobs but yet the stock market goes up so it's okay to hike raids apparently but it is all about high-frequency trading these days this idea it's kind of quaint now to think that there are actually people that are doing their homework and deciding to buy 200 shares of coca-cola because the fundamentals look good that kind of stuff and that's why the stock market's going up now nothing to do with any more 90 percent 85 percent whatever the number is a total volume on the New York Stock Exchange is just simply high-frequency trading computers just swapping positions back and forth trying to Nick each other for fractions of a penny and doing it at the speed of light and so the Fed and what these central bankers have figured out is that if you want to create this wealth effect if you want to get the stock markets to go up then you've got to get these high-frequency trading computers to do the heavy lifting for you and with all of the think of it it's like any other computer program it's all written with the same type of code and they're all taking basically the same inputs where a computer sees for you know lack of a better metaphor certain inputs doing going up going down and then those computers make decisions to buy or sell in this case stock futures or gold futures or whatever and what the Fed has figured out what the other central bankers have figured out with the biz the Bank of International Settlements has figured out is if you can affect those inputs if you can get the inputs to move you can move all of the markets a lot of folks that there say well the stock market can't be manipulated it would take trillions and trillions of dollars to actually move the stock market no it's that's that's a gross over what's implicit simplification of how it works you want to move the market just simply move those high frequency trading inputs the computers will take Gover they'll do all the heavy lifting for you the two primary inputs and moving the stock market at least here in the US or the dollar yen that we talked about before but also this Bicks the volatility index if you can get the dollar yen to go up or at the same time maybe get the VIX to go down and recently this VIX index was at the lowest level in 25 years you can get either of those two things to happen the computer will take over they'll buy stock market futures and up it'll go anybody can watch this on a daily base so I gotta do is take the time sit and watch it every day and you'll see that this is what's happening we mentioned I think was a couple of days ago this legendary investor by the name of aster Edelman who apparently the character Gordon Gekko was based on 30 years ago on the movie Wall Street Asher Edelman was on Fast Money on CNBC and he said basically what I just said is that the Pledge Protection Team is he called it the president's working group on financial markets is the ones are they're the ones and they're driving the stock market higher and ever at all roll their eyes and threw their hands in the air how can you say that you can't manipulate the stock market again because the dollar volume it would take but that's a lack of understanding of how these things work in the 21st century markets are manipulated almost every market is manipulated it's done so by the banks for the reasons that you laid out just a couple minutes ago before I went on this rant the banks right well the the dollar volume doesn't make any difference because the cost of borrowing and all of this hierarchical trading is done with borrowed money is virtually zero again getting back to the yen but you mentioned how the program trading the algorithmic trading is affected by inputs and one of those inputs are by BOTS that essentially read the financial press and this is becoming more of a factor in creating these algorithms when Janet Yellen goes on television and says we fear inflation the bots pick up on that and they know then to start selling the gold manipulation schemes to bring that price down because they have heard or read the version of Janet Yellen sang we have a fear of inflation so we're not sure we're going to raise rates so her job Johnny Allen's job is no longer to conduct monetary policy it's not really the Federal Open Market Committee it's not buying and selling it's not working with the primary dealers on Wall Street it's not about managing the money supply so much as manipulating the algorithmic trading using the bully pulpit of her position at the Federal Reserve chair to influence algorithmic trading to influence high-frequency trading and that's a primary job now is to if it looks like markets might be going in a direction that is dis favorable to Wall Street she'll get on TV that's why they're starting to do weekly press conferences that were monthly press conferences now because they are now catering to the algos they're not they're no longer observing any market fundamentals whatsoever there is no School of Economics that she follows there is no data point other than a stock market data point and so she becomes a toady a servant of these computer algorithms essentially that's our primary job it sounds like right precisely I agree 100% max no doubt about it this is why now these guys are treated as rockstars I mean I call them just goons I mean mother goes out there and she runs the show and she's got all these goons for her governors to give multiple speech I mean there was a day last week where there were seven or eight different Fed governors out giving speeches or television appearances all doing exactly what you described they're essentially trying to jawbone to get these computers to react the way that they wanted to react which is you know either they want to get the dollar to go higher they want to get the entry to bond market move in a certain way or the stock market to move a certain way and the media founds all over them and seeds this power to them I mean look at CNBC whenever there's some Fed announcement the minutes release something like that they'll have a countdown clock you know is this is the most earth-shattering development we've ever seen you know some mutterings of the Fed where they change a couple of words from the last times they put something out yeah and I'll give you one more max I don't know if people have ever you know if they pay attention to these things as it flows but at the end of every FOMC meeting the Fed puts out a statement which you know is breathlessly announced to the world by Steve Liesman and these other clowns on in financial media and then three weeks later we get the FOMC minutes the actual you know things that they talked about during that meeting what wait you can't tell me that that it takes three weeks for some you know secretary or assistant or what sonographer at the Fed to transcribe the notes from the meeting and then put out you know what the minutes are of course not what the Fed does is they put out a statement at the conclusion of the meeting then they sit back and see well let's see how is that received we get the market response that we're looking for when I was really hoping instead this would happen so then three weeks later you get the minutes and a lot of times people that observe this stuff you'll notice the minutes don't match the statement well then again that gets back to what you're saying max the Fed sits back and doesn't get the market response they want so then they adjust the minutes to match maybe what they were trying to get again I this may sound like crazy talk to people out there that think oh no that's not how the markets work let me assure you as someone that's been doing this for thirty years but now just simply observing for the last ten it's precisely how these markets and I should probably do this with my fingers how these markets work here in the 21st century right well I know for a fact I mean I I invented a technology in 1996 called the virtual specialist technology and it referenced hundreds of times by subsequent patents by banks all over the world and one of the features of that technology that patented technology is to change the ratio it required to effect the price change up or down so if there's an imbalance and buyers and sellers if it's one-to-one buyers the sellers the price is unchanged if there's a balance in favor of buyers you see an uptick if there's a balance in change sellers imbalance you see a downtick and by simply changing the ratio required to affect the price tick you have in effect created up or downward bias now that's patented technology I I know I invented it it's used by hundreds of banks it's used every day part of this whole derivatives nightmare Cantor Fitzgerald is the owner of the patent there are big players in this market manipulation their primary dealer that after 9/11 and so this clear evidence black and white you can look it up five nine five oh one seven six is the US Patent Number is a virtual specialist technology of Max Keiser it's the smoking gun it tells you how to manipulate market using high-frequency trading right well anyway so so Craig you know in Japan which is the biggest you know source of funds because of their participation in all this we see explosion you can bring it back to Bitcoin in the use of Bitcoin it's not a premium use of Bitcoin the price goes higher in Japan I don't think that's an accident right because the people there want freedom from this manipulation your thoughts yeah it's not an accurate accident anywhere max and that's what's probably most exciting about Bitcoin those of us that have and I've only owned Bitcoin since last summer I started buying it six seven hundred dollars and there's people like you that have owned it really almost since the beginning to your credit but I mean those of us that are in it think oh my gosh this has got to be about as far as it's gone right it can't be I mean the awareness the global awareness of Bitcoin anybody watching you and I today can you know shout across their back vents at their neighbor and ask him what bitcoin is and you'll get this kind of quiz you know what what a bit clatter I don't have any idea what you're talking about and the next time there's a financial crisis right when people are desperately searching for alternatives the next time there's a bunch of bank bill ends and the awareness will be raised so this idea that the Bitcoin is somehow a bubble I've seen people try to equate it to you know the tulip mania that kind of stuff all that Dale come I split I cry you got to cut it out there on the tulips thanks for bein on the show thanks max alright that's going to do it for this dish on the cons of report with V Max Keiser estate seer bird got to thank Craig hefty if TF metals report calm you can reach us on Twitter kinds of reports the next time bye y'all [Music]

for all the talk about an oligarchy running America there's hardly a damn thing known about how it actually operates it's not like you can open a civics textbook and see the chain of command what you get instead are sermons about how the corporate elite or the New World Order is running things through the corpse of democracy that all may be true but it's about as actionable as a nursery rhyme what you don't see is hard evidence the cabinet members carried out treasonous orders from overseas to help a criminal cartel wage an all-out war on Americans but every once in a while yeah in late 2012 the US Justice Department stunned the world by settling its huge criminal money-laundering case against British bank HSBC for a fine in the four years since the financial crisis had hit the DOJ had never prosecuted a too-big-to-fail bank always claiming there wasn't enough evidence to prove criminal guilt with HSBC though the DOJ finally had a big bank by the balls prosecutors had obtained a confession the same holy grail of evidence that is punch Bernie Madoff ticket to federal prison four years earlier HSBC and admitted its guilt to the four account information filed today which sets forth two violations of the Bank Secrecy Act a violation of the international emergency economic Powers Act or IEEPA and a violation of the trading with the enemy Act instead of winning the biggest criminal trial in US history though the DOJ balked when asked why later that day Lanny Breuer the head of the criminal division unveiled a brand-new excuse having nothing to do with the law we don't want to make a decision that is going to have all kinds of horrible collateral consequences when the DOJ used the same excuse again one week later in a second case of uncontested crimes Attorney General Eric Holder revealed that the DOJ had been assessing collateral consequences all along let's be honest yeah I mean that's a factor I'm not talking about just this case but in others that we have resolved the impact on the stability of the financial markets around the world is something that we take into consideration we thought we reach out to experts outside of the Justice Department to talk about what are the consequences of actions that we might take by announcing that big banks get special dispensations which are never extended to people or their businesses the Justice Department openly repudiated the rule of law which had stood for centuries without challenge the principle that no one is above the law's authority or beneath its protection had driven debates about the laws application for generations it was never perfectly executed of course but the ideal of laws the supreme authority applied equally to everyone had time and again proved more powerful than mortal forces it had always stood as America's undisputed king even when the consequences of equal enforcement included the risk of tearing the country apart until the hsbc case that is where the DOJ had once summoned the rule of law to throw fire hoses off children it now resurrected separate but equal only without the equal part all because anonymous astrologers had adumbrated doom though these prophecies had failed to make the cut as fortune cookies for lack of detail the DOJ found them so compelling that it flushed several centuries of anglo-american legal precedent down the toilet in a photo op in response the media set a new low standard for itself and then failed to achieve it by ducking the most obvious questions first who are these so-called collateral consequences experts vested as they are with the power of Absolution this question was addressed at length by the veneer of justice in a kingdom of crime where we found that the crimes of Goldman Sachs had been absolved by Goldman Sachs second as to HSBC why weren't its ex bankers ever indicted after all collateral consequences doesn't apply to individuals only to corporations lanny breuer moreover confirmed that every hsbc executive who'd been legally responsible for the bank's crimes had been fired there by sterilizing hsbc from the effects of their prosecutions the most senior people at HSBC I should say none of them none of them who were involved in the underlying conduct is still at HSBC now the failure to indict any ex bankers is conclusive proof to collateral consequences like the DL J's prior excuse about insufficient evidence is a false cover story something stopped the prosecutions of ex HSBC bankers and it wasn't collateral consequences and it wasn't the law what was it this remained a mystery until the House Financial Services Committee released a report in July of 2016 following a three-year investigation of the DOJ s failure to prosecute Wall Street not only do the reports exhibits answer the HSBC question they answer the much bigger question of why the DOJ doesn't prosecute any too big to fail banks as it turns out the problem with answering the 64 trillion dollar question is the question itself Goldman made false and misleading representations and its mortgage-backed securities false and misleading that's fraud who commits FRA crooks is anyone at Goldman Sachs going to jail finish no why does this keep happening as we shall see that question puts the cart before the horse the first question is what keeps happening once that's answered the why is easy what keeps happening is the cabinet members including the Attorney General enforce foreign legal immunities instead of US law so that a global banking cartel can commit crimes on American soil without restraint these immunities come from the Bank for International Settlements in Basel Switzerland where a list of cartel members has been kept for over five years prosecutors were actually planning to indict HSBC when a mole inside the Justice Department tipped off the cartel which dispatched the US Treasury Secretary to the DOJ with a stand down order the resulting deferred prosecution agreement contains four bis immunities including one that specifically shields Ex bankers when we ask what keeps happening to bank prosecutions bees immunities are the answer and they not only ripen the question of why they answer it prosecutions are toothless because high-ranking government officials have extracted a nation's teeth with these amenities all of which contradict US law while most of this is lost on the house its criminal charges against the DOJ and the Treasury for covering up their acts in the HSBC case are a hundred percent correct but any notion that the new presidential administration won't continue the crimes of the last one is dead wrong you're going to spot them and you're going to hear them up in July of 2016 the House Financial Services Committee released a report running 33 pages in over 200 pages of exhibits the report chronicles the DOJ settlement of money-laundering charges against HSBC from 1.9 to billion dollars despite the bank's case-dispositive admissions of guilt no individual was ever prosecuted nor was the bank itself the report explains a Justice Department prosecutors had actually planned to indict HSBC but that Eric Holder and Lanny Breuer interceded on the bank's behalf in an internal meeting on September 4 2012 the prosecutors shared their plan to indict HSBC with other government agencies remarkably one of these agencies the financial services authority was from the United Kingdom the FSA alerted UK Treasury Chancellor George Osborne who promptly sent a letter to Federal Reserve Chairman Ben Bernanke and Treasury Secretary Tim Geithner on September 10th the letter warned Chairman Bernanke and secretary Geithner to prosecuting a systemically important financial institutions such as HSBC could lead to contagion and pose very serious implications for financial and economic stability particularly in Europe and Asia two months later Brewer and holder met personally with HSBC and offered the Bank a deferred prosecution agreement the DPA reflected their decision to abandon all plans of indictment the House report concludes that the FSA s intervention in the HSBC enforcement matter appears to have played a significant role in ultimately persuading DOJ not to prosecute HSBC while that limited conclusion is correct the house is breathtaking lack of curiosity about various anomalies in the exhibits crippled its broader investigation the report observes for instance that the UK FSA was being particularly problematic on enforcement and adopting a light touch approach in industries request but the house number wants questions what British officials were doing in American law enforcement meetings to begin with as revealed by another exhibit HSBC status as a large British bank fails to explain why the FSA was in attendance the FSA has been on all of the recent interagency calls regarding HSBC it has not been on any interagency calls regarding SCB because the prosecutors have opposed its participation Standard Chartered Bank like HSBC is a huge British financial institution and yet this wasn't enough for the FSA to get in the side American law enforcement meetings about SC be something other than size and nationality allow the FSA to monitor the do J's internal meetings about HSBC but what this sales right by the house likewise the DOJ agreed to significant alterations to the deferred prosecution agreements terms during the negotiations with HSBC that took place between November 14th and December 11th but the house never explains why the DOJ caved in the DOJ s concessions were huge and included insulating HSBC and its employees officers and directors from prosecution and allowing executives to get their bonuses despite failing to meet compliance standards while the house right Police says the FSA played a role in the DOJ is refusal to prosecute the bank it never explains what that role was or its connection to specific modifications of the settlement agreement it was the FSA after all the prompted Chancellor George Osborne to send a letter to Fed Chairman Ben Bernanke and Treasury secretary Geithner warning of possible financial calamity if DOJ were to prosecute HSBC the very same excuse the doj used months later when rationalizing its refusal to indict worst of all the house quotes extensively from Osborne's letter without ever understanding its very essence George Osborne wasn't offering friendly advice about HSBC he was ordering Ben Bernanke and Tim Geithner to intercede on its behalf as he was doing himself every one of the DOJ s concessions to HSBC in the final settlement agreement comes from that order bernd dilly-dally before communicating both a threat and a ransom on page 2 for a systemic liam portent financial institution this could lead to contagion contagion Azaz burns threat for prosecuting hsbc to emphasize his threat he claims he doesn't want to overstate it and then repeats the threat not once but three separate times with unintended consequences potential market stability risks and very serious implications for financial and economic stability for his ransom Osborn cleverly avoids the word ransom and uses next steps instead in a bold-faced header he then announces apropos of nothing but his own duplicity that it's not his intention to interfere in the HSBC case as a display of chumminess he warmly recalls the good old days of anglo-american teamwork in Iran and Syria it is here though the George Osborne's ham-fisted verbosity is cleaved by very sharp contrast with a legal masterpiece of brevity and subtlety the barrister who actually wrote the next two sentences all but draped his wig over them note how they parallel each other across the Atlantic and begin with the air of command it is for you and your partners in other departments and agencies to decide how best to supervise regulate and enforce compliance within your jurisdiction by itself the first sentence conveys next to nothing that's because our barrister left its two key terms compliance and jurisdiction open to interpretation jurisdiction is the official power to make legal decisions or judgments but comes in many stripes the question is always what it is that best a decision-maker with the power to decide territorial jurisdiction for example is decision-making power that's limited by location and is what most people associate with jurisdiction subject matter jurisdiction is the power to decide a case based on its nature or type in personam jurisdiction is the power to decide based on the common geographical region of the parties and the decision-maker the first sentence doesn't indicate what Bernanke and Geithner's jurist is based on it's worth noting here that our barrister declined to say within the US which is not only shorter than within your jurisdiction but unambiguous as well from this we may surmise that within your jurisdiction means something other than within the US the term compliance is likewise vague since we don't know what must be complied with once again the first sentence simply doesn't say these are virtues and not vices however our barrister put the cues for interpretation in the second sentence where he resolves both terms definitively this ensured consistency on both sides of the Atlantic and ultimately minimizes verbiage the second sentence tells us that a dare Turner Mervyn King and George Osborne must ensure that UK financial institutions are fully compliant with global standards and rules compliance thus means compliant with global standards and rules will identify these rules in due course for now it's worth noting the highly curious claim the British officials must enforce global rules rather than British ones notable as well is the invocation of three British officials rather than two as the head of the UK's Exchequer Osborne was the equivalent of US Treasury Secretary Tim Geithner Mervyn King was the head of the Bank of England and thus the equivalent of Fed Chairman Ben Bernanke Adair Turner is the odd man out seemingly Turner was the head of the Financial Services Authority which had been monitoring to do Jay's meetings about HSBC as for jurisdiction the allocation of decision-making authority is an eye-opener it is not based on where a bank operates instead since Turner King and Osborne ensure the full compliance of UK financial institutions jurisdiction is based on a banks nationality what Bernanke and Geithner are being told is that the enforcement of global rules in the HSBC case is for Turner King and Osborne to decide the parallel power of Bernanke and Geithner to decide on how to enforce global rules extends only to American banks when it comes to enforcing global rules whatever the DOJ does with HSBC puts the money-laundering case in Brooklyn under British jurisdiction thus our surmise that within your jurisdiction does not mean within the US was indeed correct the next question of course is what global rules operon is referring to and that in turn depends on which global rulemaking entity he's referring to it's almost certain that Bernanke and Geithner knew exactly which entity he meant based simply on the five names mentioned but George Osborne's fists of ham bludgeoned them with the dead giveaway just in case the giveaway is the phrase systemically important financial institutions less than a year before Osborne's letter the Financial Stability Board in the Bank for International Settlements published for the first time a list of banks under this exact rubric and was the only global entity to use this phrase the list is a who's who of the biggest bailout recipients from the 2008 meltdown and formally identifies the global banking cartel under the FSB s protection HSBC appeared on the 2011 list Standard Chartered Bank notably did not the FSB also maintains a membership list it's anglo-american members separately confirmed that Osborne was referring to the Financial Stability Board Turner king and Osborne account for the entire UK delegation Bernanke and Geithner for an American majority DFS b's mandate moreover describes the function of Osborne's letter to perfection like the FSB s mandate Osborne's letter assesses vulnerabilities affecting the global financial system and identifies and reviews the regulatory supervisory and related actions needed to address them including the outcomes of those actions George Osborne was supervising the outcome of the HSBC case which he did by ordering Bernanke and Geithner to enforce global standards and rules this is what the FSB is really all about using global rules to supersede national laws Osmonds letter is a prime example even though he's writing under crown letterhead provided by British taxpayers Osborne doesn't even mention bird claiming instead that he and other British officials must enforce global standards and rules as for why global rules enforcement fell to British and non-american government officials the 2012 annual report of the BIS notes that the FSB has a standing committee on supervisory and regulatory cooperation chaired by Adair Turner chairman of the UK Financial Services Authority cooperation is an FSB Orwellian ISM as we shall see for using coercion if necessary to enforce its will but in any case the FSA's function is the financial stability boards cooperation supervisor explains why British officials were monitoring internal DOJ meetings about HSBC which was a cartel member but not Standard Chartered Bank which in 2012 was not at bottom George Osborne's letter carried both the authority and jurisdiction to decide how to enforce the FS B's mandate on these grounds this letter is unmistakably ordering American FSB members who had neither Authority nor jurisdiction to enforce the FSB so-called global standards and rules in the HSBC case this not only stopped American prosecutors in their tracks it led to every concession the DOJ granted to HSBC in the final settlement agreement – before highlighting the FS B's rules throughout that agreement a few words about the FSB itself or an order first George Osborne is just one of many cabinet-level officials who can be tasked with carrying out the FSB s mandate of fixing outcomes responsibility for these orders lies first with the standing committees and ultimately with the head of the FSB on this score the FSB was chaired until November of 2011 by Mario Draghi and has been shared by Mark Carney ever since both men are former Goldman Sachs executives Carney was chairman of the FSB when Osborne sent a letter that led to the DOJ z' decision not to prosecute HSBC that was more than half a year before he joined the Bank of England as its governor as governor Carney was asked by Parliament in 2016 if he and Osman had discussed the HSBC case before the DOJ decided not to prosecute in 2012 there are three possible answers to Andrew Tyrese yes no question yes no and I don't recall no and I don't recall or easy and harmless to yes is easy as well but yes would mean that Carney discussed HSBC with Osborne in its capacity as head of the Financial Stability Board not the Bank of England which he would join until the following year tellingly Carney chooses door number four which is he basis babbling it seemed included there was some kind of indication what are you wearing it did the chance to discuss this with respect to I know I'm not aware of I mean we have discussions with when trustees in general terms this person well we have a drubbing spoke on specific what I want to know is have you discussed this case with the Chancellor's inspection prior to the decision being taken by the attorney the specific case prior on which decision is that we discussed when a decision being taken not prosecuted HSBC Carney never does say whether or not he and Osborne discussed the case before the DOJ decided not to indict testifying only that they didn't discuss meddling in the case a qualifier so elastic that this testimony is meaningless what Carney undoubtedly wants to know from counsel is whether he can avoid answering yes to the unqualified question on grounds that when he did discuss the HSBC case Carney wasn't yet the Bank of England's governor in which capacity he's now offering his testimony not getting the answer he wants Carney tries his first ruse again of testifying in general terms but doesn't repeat his earlier mistake of telling Tyree that this is his strategy he thus succeeds in deceiving Parliament on two key points from my perspective my experience the judgments of the Department of Justice and other US judicial authorities and there are many they are black box black boxes they make their decisions based on their information we will have and the Bank of England and the PRA we will have discussions on their request with UX Financial Stability authorities in general terms about some of these issues Carney's testimony that the Department of Justice's the black box sealed off from outside influence is both false and deceptive what Carney fails to mention is that FSB representatives were inside that black box the entire time not only threatening the destruction of both hemispheres over indictment but relaying internal DOJ Intel back to the FSB which succeeded in getting the DOJ to abandon its prosecution plans once that happened in fact George Osborne couldn't even wait three weeks to announce that none other than Mark Carney would become in July of the following year the first non-british governor of the Bank of England in its 318 year history Carney's testimony that the DOJ makes decisions in a black box is simply ludicrous so is his testimony that American authorities initiate discussions with British officials it was George Osborne who wrote to Geithner in Bern a key not the other way around an FSB chairman Mark Carney damn well knew it indeed the FSB set up its initiative on cooperation and information exchange so it can reach out to national authorities for Intel and bring non-compliant countries to heel the so-called information exchange in fact is openly regarded as a tool of coercion even by one of the FSB s most notorious members when the International Monetary Fund was invited for FSB membership it was this information exchange that made the IMF hesitate over full participation the IMF itself put it this way of particular concern was that it contemplates the imposition of coercive measures in certain circumstances against jurisdictions that are found to be taking insufficient action to bring their frameworks for financial regulation into line with international standards this is simply astonishing as the IMF s own history of shaking down non-compliant countries on behalf of private bankers is very well documented for it to be given pause by the coerciveness of the FSB thus reveals far more about the FSB than it does about the IMF the IMS reaction is no different than mobsters glancing over the compliance methods of a colleague [Music] for those countries found to be non-compliant one can only wonder what actually goes on when the FSB hurts on website enters into a confidential dialogue with the government authorities concerned in order to further evaluate their compliance and improve their adherence to standards this brings up the one thing that makes the FSB uniquely dangerous among global entities and that's its mix of high-ranking government officials with cartel bank executives not only do the plenary chairman come from goldman sachs the FSB charter expressly allows the chairman and no one else to invite representatives of the private sector to plenary meetings which are closed to the public and have no published transcripts or minutes by having cabinet-level officials answer to former goldman sachs executives and their friends in secret meetings the FSB provides perfect cover for the criminal banking cartel to control Western governments under the amorphous heading of financial stability Osborne's letter demonstrates only in part how the chain of command works a 2013 Senate hearing and a 2014 New York Times Magazine article suffice for the rest three months after the HSBC case settled the Senate wanted to know if the DOJ had sought Treasury's advice about the projected economic impact of indicted HSBC speaking to David Cohen its Under Secretary for terrorism and financial intelligence who've been involved in the HSBC case Treasury said that while the DOJ had in fact sought such an assessment Treasury had refused to provide one answer when the Justice Department is making the decision about whether or not to make a criminal prosecution do they ask you about the impact on the economy for one of these large banks so I can't speak to every instance whether that occurs that did occur in the HSBC matter we told the Justice Department's that we weren't in a position to offer any meaningful assessment of what the impact might be of whatever in criminal disposition they may take senator Warren is was stupefied by Cohen's disclosure that the DOJ even requested such an assessment did she interrupts him to make sure she heard his testimony correctly I want to make sure I understand what you just said the Justice Department in making its decision whether or not to pursue a criminal prosecution checked with the Department of Treasury to determine your views on whether or not there would be a significant economic impact if a large Bank were prosecuted is that what you just said cohen confirms that the DOJ did in fact request an assessment he then puts on a short clinic of cya disclaimers before confirming the Treasury did not provide the DOJ with any assessment at all we were not in a position to offer any meaningful guidance Justice Department in that matter despite this testimony Pulitzer prize-winner Jesse Eisenberg one year later that someone from Treasury had in fact provided exactly such an economic impact assessment to the DOJ according to Eisinger a top Treasury Department official told brewer and carefully couch that an indictment could cause broader problems in the financial system this conflict between Treasury's Senate testimony and eisenerz revelation appeared to be irreconcilable at least it did before Osborne's letter to Bernanke and Geithner surfaced now we know that the top Treasury official was Tim Geithner only Geithner wasn't wearing his Treasury hat when he intervened with the DOJ he was wearing his stability hat instead as he carried out the order from fellow FSB member George Osborne so while Treasury's testimony that had never warned the DOJ might be technically accurate it's fundamentally false through its omission namely that the FSB member who privately warned the DOJ was at the same time holding down a government moonlighting gig as the United States Treasury secretary Geithner's behind-the-scenes swap of his public hat for his cartel hat works in Reverse – as we saw from Carney's testimony before Parliament and Osborne's letter under British letterhead FSB members are nothing if not adept flashing the right badge at the right time to conceal the criminal cartels hands on the very levers of government cartel minions unlike members have only one had to hide their deceptions which makes them easier to spot Brewer survey of Washington and London regulators and policy hands about the ramifications of an HSBC indictment for instance wasn't a survey at all it was an order from Geithner in the FSB to record a flock of parrots mimicking osmond song and dance about an indictment in Brooklyn that causes financial disasters from Munich to Beijing Brewer himself erased any doubt about this by asking rog cohen for his opinion cohen was HSBC's lead attorney on the very case at issue and couldn't possibly have been any more biased yet he's the only person named in Brewers so-called survey put in regrettably on fashionable terms the outcome of the HSBC case was dictated by the Financial Stability Board to a handful of traders who betrayed their country's trust to advance the only Allegiance they have to a global criminal banking cartel that has nothing but contempt for the nations that had systematically loots as Osborne's letter shows moreover the only thing that ever propped up the cartels claimed an indictment would cause a meltdown was a chicken little story totally devoid of evidence it's telling that Osborn didn't address Carbon Copy or even mentioned US Attorney General Eric Holder the one American cabinet member to whom his letter about a criminal prosecution should have been sent in the first place this wasn't a diplomatic gas by Her Majesty's treasurer at all it simply reflects to do J's menial status on the cartels global plantation where America's top law enforcers recite children's stories to the victimized public instead of actual facts to juries as far as what the FS B's orders were precisely its legal status as an adjunct of the Bank for International Settlements points to the BIS as the source of the global rules Osborn ordered to be enforced the IMF is again insightful when considering reopening its membership in 2013 the IMF noted that the FSB was not originally established as a legal entity and it did not have a separate legal personality thus the FSB is piggybacking on the BIS its host the IMF took special note of the FSB s motives for organising this way the FSB should adopt a gradual approach towards its institutionalization and at this stage obtained the needed immunities by operating as an association under the BIS headquarters agreement these are the immunities to DOJ extended to HSBC and are the global standards and rules that Osman was referring to in his capacity with the FSB despite contradicting US law these immunities have controlled the do J's disposition of every criminal case involving cartel members since 2011 including HSBC the first immunity is the only one the media talks about though not in that language and that's the immunity of banks as corporate entities this is why HSBC wasn't prosecuted at the company level as shown in the veneer of justice this immunity is void under US law since only the sitting president enjoys criminal immunity the second immunity concerns documents under the BIS agreement all documents in any data media belonging to the bank or in its possession shall be inviolable at all times and in all places this immunity is void under US law as well as we know from the Supreme Court's decision in United States against Nixon following the Watergate break-in the special prosecutor filed a motion for a subpoena of White House Records Nixon tried to satisfy the subpoena by picking and choosing documents so as to withhold damaging segments of audio tape recorded in his White House Office Nixon asserted executive privilege as his legal basis for this documentary immunity the Supreme Court rejected his claim of executive privilege the courts ordered to turn over the tapes in their entirety lead President Nixon to resign two weeks later and yet despite the fact that not even the US president enjoys documentary immunity this is exactly what we see enforced throughout the HSBC case the DOJ never had access to HSBC's documents because it allowed the bank to pick and choose what to disclose exactly as President Nixon had tried to do lanny breuer let this slip the very day – HSBC case settled why isn't anybody going to jail well look Eric when you look at these cases you have to look very hard at what the underlying conduct is and you have to look at how long it occurred for an institution like HSBC the real story here is that for ages maybe for decades they had no compliance program at all managers mid-level managers and others probably would tell work on the bottom line cut money wherever you can and so the institution here is really responsible what forces Brewer to invent entire conversations out of thin air was the do Jay's lack of access to the bank's internal documents by choosing not to disclose emails and other documents HSBC left lanny breuer playing blind man's bluff on national television likewise the house report complains that the DOJ decided on HSBC is fine before the Treasury's Office of Foreign Assets Control had completed its investigation into how much tobacco while that's true the house again missed the far more disturbing fact that HSBC controlled the entire investigation by selectively disclosing documents through its attorneys from OFAC's point of view HSBC was still in the process of providing us with a list of all of the alleged violations so these moves by the other agencies seem premature that said we are working with HSBC's counsel Sullivan & Cromwell to get the information and voluntary disclosure language as quickly as possible this is corroborated by the recollection of HSBC whistleblower John Kruse who worked as a vice president at the bank for two years and witness money laundering firsthand when I gave all my documents to district attorneys they said we will like we will contact a bank and have them do an audit on your complaint what does that mean you are saying to the criminal please investigate yourself and let us know if you find out if you did anything wrong the report also shows the HSBC's control over Oh PACs investigation cap the total fine imposed at less than its full amount DOJ had in fact disseminated D settlement dollar figure to HSBC on August 24th without waiting to hear whether OPEX investigation would have resulted in HSBC having to pay a higher total amount this led oh fak employees to complain that we weren't consulted we were told what the fine would be despite the fact that we still don't have what we need from the bank including promised data on on Iranian transactions Treasury officials further confirmed that the information they did have was extremely limited because HSBC was selectively disclosing documents through its law firm Sullivan & Cromwell o FAC was not able to review a sample of a very large number of the alleged violations in the Burma context I believe approximately 700 out of about 1,100 transactions because Sullivan and Cromwell has provided only very limited information documentary immunity wasn't just enforced in HSBC but in all cartel cases the DOJ itself confirmed as much in fact years after HSBC settled fittingly it was the DOJ zom contempt he promised to enforce the law that exposed its own dereliction this occurred during a new sheriff on Wall Street speech given by Deputy Attorney General Sally Yates in September of 2015 and they must provide all relevant facts about their misconduct it's all or nothing no more picking and choosing what facts to disclose no more partial credit for less than full cooperation note that the DOJ self-confessed enforcement of documentary immunity again has nothing to do with any risk of financial calamity this is one of the many reasons the DOJ keeps the cartels yarn about the sky falling as far out of court as possible tellingly the DOJ zone documents about the HSBC case enjoy immunity themselves in response to a host of congressional subpoenas the Justice Department refused to turn over so much as a single email even after which charged with crimes it's criminal cover-up has continued to this day with no consequences at all likewise is the Treasury which turned over nothing but a handful of redacted documents that came from a third party lawsuit without those the HSBC report would have amounted to a few bullet points about congressional futility and maybe a cover page for all their bluster Congress members are perfectly content for the DOJ and Treasury to help the global banking cartel systematically fleece their own constituents this takes us to the third vis immunity to DOJ enforces for the cartel immunity of assets this is down in article 4.3 of the BIS headquarters agreement and reveals why the DOJ so-called fine of 1.9 billion dollars is a misnomer the immunity shields the bank's assets from execution which is simply the seizure of property by a government to collect on a judgment but there was neither judgment nor seizure in the HSBC case instead the 1.9 billion dollar figure comes from the deferred prosecution agreement between the DOJ in the bank and was negotiated and consented to by HSBC when ordinary people get fined 50 for a parking ticket they don't get to negotiate the amount down and have the government agree to less that's because ordinary people's assets aren't immune and will be seized if the fine as it paid but HSBC is special and enjoys a separate and higher legal status its assets are immune and thus the 1.9 billion dollar figure couldn't be and wasn't imposed it had to be negotiated this is why the amount was cropped below its legal limit as we already saw but the reports exhibits confirm another crucial aspect of the amount namely that it was nothing but a rote computation when British FSA officials monitoring the do Jai's meetings expressed surprised at the size of the fine their ignorance set off the rights of emails among Treasury employees the FSA they noted was quite taken aback both by the implications of a criminal plea and by the sheer amount of the proposed fines and forfeitures it seemed like it was the first time they'd taken out their calculator since cartel bank strictly control what information they disclose HSBC unilaterally set its own fee for money laundering in the US and since supporting documentation to the DOJ for relabeling as a fine again this squares with the recollection of HSBC whistleblower John Cruz well they paid a 1.9 without 1.9 billion dollar fee to pay off the government and I don't call it a fine because it was not a fine that fine I told the US government four years prior that they were going to pay that amount and I sitting in a bank accounts the DOJ has padded itself on the back over large settlements for years what it should have been asking what those numbers say about its role as both law enforcer and regulator and Nate errand boy inside closely cooks collect film the immunity of too-big-to-fail bank ATS as opposed to costs is underscored by the DOJ is agreement to remove any conditions on HSBC bonuses from its draft settlement as shown already HSBC modified the agreement to expressly allow executives to get their bonuses despite failing to meet compliance standards as the cartels errand boy the DOJ promptly entered this modification without a peep by allowing HSBC to set its own costs for money laundering and immunizing all of the bank's actual assets the DOJ granted a foreign bank legal privileges that sovereign countries don't have under the foreign Sovereign Immunities act the 4th cartel immunity enforced by the DOJ is personal immunity from prosecution this is why the DOJ refused to indict any bankers or ex bankers from HSBC as well as every other cartel member individual immunity is set forth by article 14 of the BIS headquarters agreement which shields bank employees from the government's jurisdiction by its Express terms article 14 extends immunity to employees even after they leave the bank a provision that was fully enforced in the HSBC case as we saw every high-ranking employee responsible for criminal money-laundering at HSBC had been fired under the DOJ draft agreement it was open season on them as the House report notes the original draft EPA doesn't shield any employees officers or directors who willfully processed illegal transactions a provision that would have allowed the DOJ to indict the ex bankers who perpetrated HSBC's crimes so HSBC revised the draft to comport with article 14 s immunity for ex employees under the revision everyone responsible for all criminal transactions previously disclosed by HSBC would be immune this is what prevented the DOJ from ever prosecuting the bankers or ex bankers who perpetrated HSBC's crimes once again the DOJ is collateral consequences story only explains why the DOJ didn't HSBC the corporation the very source of the DOJ is collateral consequences factor the US Attorney's manual which is a guideline rather than binding law to beginwith explains why the outcome of the HSBC case turns actual law on its head the manual correctly notes that it's legally impossible for a corporation to commit crimes unless individuals first commit crimes themselves a corporation can only act through individuals the very fact that the DOJ is even looking at collateral consequences in other words means the individuals not only committed crimes but crime serious enough to warrant the indictment of the entire company if the DOJ really cared about collateral consequences it would have prosecuted the perpetrators of HSBC s admitted crimes first and then assess the consequences of indict us b/c instead the DOJ immunized the perpetrators and the bank first and only then went picking and choosing to its attorneys manual to gloss over this perverse outcome in short the outcome of the HSBC case had nothing to do with collateral consequences and everything to do with the cartels control of the u.s. executive branch the immunity of cartel individuals of course conflicts with US law since no one is immune from prosecution with the arguable exception of the sitting president moreover we know that ex presidents unlike X cartel bankers are not immune from prosecution which is why Richard Nixon needed a pardon from President Ford once he resigned but X cartel bankers don't need presidential pardons because they're protected instead by the BIS immunity for X Bank employees and again the BIS immunity is controlled not only HSBC but every cartel case in its wake even where the DOJ appears to stray from these immunities in fact its enforcement of the cartels private legal system is stapled to the very letter first for individual immunity to apply a bank has to be a cartel member six cartel banks for example admitted to criminally rigging the LIBOR rate and paid fines ranging from 203 million to nine hundred and seventy five million dollars but the DOJ has yet to convict even a single trader from the cartel Rabobank was the seventh bank that admitted to rigging LIBOR it paid a fine of three hundred and twenty five million dollars the Rabobank is in a cartel member so it's traders lack personal immunity thus the DOJ convicted seven Rabobank traders without compunction a second requirement for individual immunity comes from the Express language of article fourteen which applies only to individuals acts that are accomplished in the discharge of their duties a banker advancing his own interests in other words and not the banks is open to indictment this explains the prosecutions of cartel bankers who engage in insider trading for their own account as well as all other acts not in the bank's interests two cases involving Goldman Sachs or illustrative sergey alain knockoff was a computer programmer who developed high-frequency trading software when he left goldman he took code with him allegedly and was instantly arrested and indicted twice though ultimately acquitted each time allen McCobb illustrates the personal immunity doesn't shield cartel bankers acting for themselves and not the bank the far more revealing case though is that of Rashad Gupta who been a director at Goldman Gupta sin was passing along confidential boardroom information about Goldman to a hedge fund that earn millions of dollars trading on his tips according to Goldman itself mr. Gupta breached his duties as a director and violated our shareholders and the firm's trust this destroyed his immunity under Article fourteen and led to his indictment what's so revealing about Gupta's case though is the evidence used to convict him Gupta had passed along tips to Raj Rajaratnam who's galleon hedge fund a non cartel member profited from his tips Rajaratnam had already been convicted of insider trading by the time Gupta's case went to trial Wood had cooked rajaratnam scoops were wiretaps of his phone conversations not with Gupta but with his employees now I heard yesterday from somebody who's on the board of Goldman Sachs that they are going to lose two dollars per share the street has been making two dollars and fifty four really yeah now I can get that number you know one they don't report till December they're biting accordant in November way what mom but you know they have these huge marks in ICBC and all of that stuff right almost yes that could absolutely clobbered you know yeah so what he was telling me was that goldman the court is pretty bad they have zero revenues because they're trading 7uu so offset by a classes and today of of 2 per share it just announced a ten percent cut and you know the basic business is okay but you know this is not for them I don't think that's built into the government section stock price so if we get to 105 I'm gonna it's 99 now it was at one or two looking for 105 a racket yeah okay supported it's easy to see how Rajaratnam zone words convicted him what's so telling though is that they convicted Gupta – even though Gupta wasn't part of the conversations Gupta's attorneys argued that the conversations were hearsay but both the trial and appeals courts held that they fell within one of the hearsay exceptions that legal issue aside the takeaway here is that while Roger rottenness phone was tapped Gupta's never was the best dope prosecutors could get on Rashad Gupta was from Rajaratnam phone that's because the data going through Gupta's phone belonged to Goldman Sachs whatever Gupta did to destroy his personal immunity under article 14 in other words never changed Goldman's ownership of his phone calls as a goldman director which remained separately immune under article 3 point to any data media belonging to the back or in its possession shall be inviolable at all times and in all places the DOJ is meticulous enforcement of bis immunities exposes the slipshod collateral consequences doctrine as lipstick on a pig not even law in the first irrelevant to most DOJ failures and cherry-picked for the cartel at any event and this is all been going on for some time now the DL J's enforcement of documentary immunity has been a matter of public record for four years running we spoke to a couple of sources from within the criminal division and they reported that when it came to Wall Street there were no investigations going on there were no subpoenas no document reviews no wiretaps I don't know who you spoke with because we have looked hard at the very types of matters that you're talking about these sources said that at the weekly indictment approval meetings that there was no case ever mentioned that was even close to indicted Wall Street for financial crimes well Maureen if you look at what we and the US attorney community did I think you have to take a step back by itself documentary immunity is a license for the cartel to commit crime since crimes that aren't investigated can't be prosecuted either with this immunity alone the DOJ has left Americans defenseless against the cartels financial crimes and as chilling as that is that's actually the good news the implications of individual immunity are horrifying individual immunity shields cartel bankers for acts accomplished in the discharge of their duties the crimes going unpunished in other words our official bank business which makes those crimes systemic normally systemic crime is the work of mobsters and terrorists but that's not what we have here unlike the mob the banking cartel possesses sovereign powers that exceed the president's there's a word for systemic crime by a sovereign power against the whole country and it is in crime wave or terrorism the correct term is war the fact that no one went to jail after HSBC confessed to crimes on behalf of terrorists and drug dealers shines very bright light on both enterprises and more glaring light yet on America's real rulers the new administration should need all of five minutes to start turning over documents that the last one committed crimes to hide but those documents will never see the light of day when the real sovereign power of a nation wages war against her from within presidents get in line or get eliminated what they don't do is risk hanging their masters who keep her people at war with each other by keeping them in the dark we did it like that and now we do with like didn't like that and how we do it like this yeah clock head got the showcase go tell me if the little kids on Soul Train the better for people my friends or my job they come from humble places that the typically the journalistic is are yellow and then the fourth longest watch channel 0 and that bitch Brown the long-term job you believe documented tracks with resident lizard had before memo with a consistently in Canada yes remember that's when they know it's fucking calm we enough let's come back looking like one on six and box here no job in the car new comma ptosis or depress me you test them are all professional little bracket bill much like whitey cancel all the mourners of mostly white begins along the corner book when Bush whitey gets our Lord the mourners of beds are supported Africa guys neither group action together you to store get high my Carmex boost your sales design files we take back let's take a second think back think back travelling mr. Barney roughly actually pulses that are roughly the name were Lord holds godly you don't know you better ask somebody [Music] not fuckin straws that crust claptrap is regular poor coordinators with backup chain on the corner maintaining don't see flashes kids run a black water keep

a major thing and I don't know how much time I'm going to take to do this but I want to talk about the the new financial infrastructure that is facing the world and facing America in particular well it's going to really affect us more than will other people it will affect us negative negatively well it will affect other people positively and so we have to understand that and get ourselves positioned properly for that the money um start out by but it appears that we have a division between the East and the West and I'm going to draw a chart like that and in the we'll put over here this is the West this is the East in the world and in the West we have the Federal Reserve and along with that we have been eating well and etcetera you know that kind of stuff we're all kind of part of the same team in the east as the People's Bank of China that has been established the destroy its massive bank the people think of China is moving to international in the international finance end up in the West we have the International Monetary Fund and what what has been happening is people all over the world have found that the International Monetary Fund has been the piggy bank for the United States of the European countries and has not been international at all it hasn't been providing funds to South America or Asia or ever you know it's just the friends and family of US and Britain essentially and so what happened was that needed to be a full international system so what in order to bring pressure China created Asia investment international investment bank infrastructure is that infrastructure investment bank and they are set up to act just about life like the United States IMF does now if we look at if I can find my a no that's not it here we are this is this is a map of the founding members of the a III be that a China makes up the whole thing and essentially what happens is all the green nations are the ones that are in it and so this is an organization that's equivalent to the IMF and the people that were not in it our United States Greenland nations in Africa few nations here but most of the world is in it including England United Kingdom so you can see the leaves are all makeup of the AIO ad ad tough and all of these these other nations are members of IMF but the United States is not a member of the AI IV and so what they've done is they each to set up an organization to counter the IMF and then one over here we have we have the World Bank and it wasn't doing things for the world it was doing things for us and so we're here they created the BRICS Bank this is the BRICS Bank is a Brazil Russia India China South Africa and the BRICS BRICS nations are up now let's see you don't need to cover that right now so we have the BRICS Bank and so what they did was they created another equivalent we have switch which is the financial money transfer system for the world this transfers money all around the world and so the switch system is located in Belgium it has a belt in organizations and nations join it all the nations of the world have joined Swift because they want to have the ability to wire transfer money around the world to transfer between banks and etc well the United States created a situation where much of because we are the world's reserve currency much of the world with trade doing trading in US dollars and the United States says we want to approve every US dollar trade in the world so what happened is they set up the big computer centers in Washington DC and all of the Swift translations of transactions that happen in in Belgium are forwarded to all the dollar ones are forwarded to Washington DC and the United States government approves every dollar transaction so what happens is Russia China major nations are transferring funds around the world which they used US dollars to do much of that and so the United States government is watching everything that Russia is doing everything that China is doing and they're controlling whether or not they'll permit this money to go through they're giving a yes or no money so what happens that these nations decided they didn't like that so what they what China did was they created what's called 6e IPS which is China national payment system and they did this in in 2016 that's right that was my next point thank you so much anything my wife is understanding anything very well they uh and so what happens is we now have the Russians of payment system has joined and they now they know think these two together so and why did why did Russia have a decide to have a payment system because the United States threatens and keeps them out kicked them out of the Swift money transfer system we were holding this over their heads we will not allow you to transfer money between your own banks within your own nation so what's what Russia did is they now have six hundred of their top banks on an international trading system and these trading systems happen to be compatible with Swift so now Russia and China and all of the nations in their sphere are now going to all be able to transfer monies back and forth and do deals without US dollars and without us approval so that's that's what's what's happening then what happens is we have the Neo we have the London bullion market Association and plus New York and in that they fix they fix they took it they control the price of gold price of gold was set in London and New York by these individuals and the big bankers they actually set it and then they did whatever was necessary to keep the price where they wanted it and they would they would do naked short yes and we do all kinds of stuff in the market and control the price of gold so what is what is the Easter wasn't trying to do they put up the Shanghai Gold Exchange and where where the Shanghai gold exchange is been created in Shanghai just a couple years ago they now have futures contracts and now have all kinds of contracts they're putting together the system where where Shanghai is going to be in the area that controls the value of gold and what Shane is doing is they're trading in real gold they're not straining the paper gold or imaginary goals or synthetic balls away down the terminal running rooms they're trading in real gold you buy their goals you take that's it you know and and so what we we expect is how China has wanted gold price down for a long time because they're in the posture of accumulating gold and so suppressing the price of gold was fine with them now we're coming into a time where the price of gold will be better if it's higher for them and so we're watching they have put these put the system in in place where they have market makers and all this kind of stuff in the gold area so what we have is we have a system where it appears is the competing system against this system it appears and it definitely is because if they didn't do this we would never give up our power in this particular area so in the meantime what's happened is the IMF has created the SDR and they've actually taken the former head of the people think of China and he's now sits on as the number two man at the IMF so he sits he sits over there and so we have this situation going on but so and people try to play this up that this is a competitive competing system and this system is out to destroy this system that's way it's s I don't think that's the way it is and the reason is because up here at the top yeah the B is the Bank of International Settlements it is the bank that started the Fed and the IMF and they are the people who are actually is helping all of this stuff happen so the Bank of International Settlements is actually putting running this together they're breaking the Western powers of banking the power of the West where our dollar is oh is overvalued and it has been the primary reserve currency you're breaking the power of the dollar which is going to affect the United States of America is what we got going so we have we have peace these are the competing organizations and so what we expect to see is these organizations being utilized in the new world system and actually working together we're going to get into that as we go a little bit a little bit further they uh let me um I'm going to go to a series of different pieces of paper here interviews knowledge stuff that's coming out and we have an apparent plan what we have let's do this we're going to go over here we're going to take a look at this right here we're going to look at this this is the financial system in the United States of America since the founding started back here in 1770 and we've gone through different periods of time and we've gone through where we had a financial system backed by international gold domestic pay for domestic old domestic silver domestic paper domestic Silla where domestic paper international gold a modified which was a bulb back dollar than the gold back dollar stuff and we've been on the international paper dollar system right now and this has been for the United States and most of the world this is what so we've gone through a variety of different financial systems already and we're coming up right here to a decision and that is once it's good what's the new system going to look like because we have a brand new system coming what because the paper of fiat money system does not work it ends up in a crisis it's brought us to the crisis and the crisis is ready to happen here is New York a little history of world currencies down here in the bottom is Portugal this is down here and 1400s is it like no this is like 1540 right here here we have abstain they lasted with 110 years we have the Netherlands they have they lasted about 80 years as reserve currencies France was lattice tough lesson 20 195 years or we had the British Pound that that lasts 105 years or we have the United States dollar is going to last about 110 years and the last thing coming up is the new international currency as a reserve currency this is the SDR this is just kind of like the history of the world we're now transitioning from here to here that's the we're in that transition that's what we hear the transition that's when big things happen major major things occur at that particular time as we as we watch it yes how does Donald Trump planned all of this to chain you into it how does Donald Trump play into it well we are going to get to that okay we're going to get to that so what we have right now we use this this hand scratching before we've looked at this and stretching before this is what makes up the US dollar right now we have a domestic US dollar that we have in the United States of America this is our savings account checking accounts in actual cash we're talking about eleven point three eight eleven point eight trillion dollars here then in the rest of the world press the road much of the world has that they've had to buy oil using US dollars and so because that there's so much of money that's required to buy the oil for nations that they called out the petro dollar that is nations have to keep US dollars on hand just to be able to buy oil and then we have another thing called the euro dollar that is other nations other than the United States that choose to use the dollar as their currency or their released through the dollar that's called the euro dollar it doesn't have anything to do with the year euro Europe or the Europe it could be any nation anywhere but this is tough this is to refer to the euro dollar because they started out if nations started out in Europe using the dollar as their base the basis for doing business and so they're installed the euro dollar so what's happening with the the petro dollar is going to go away because federal dollars are petrol is now going to be purchased international purchases are going to be done in sdrs and the euro dollar is going to go away because that same thing is going to be so these two we don't need these things anymore so over here this equals about the same as what we have over here this is about twelve trillion dollars in the world under that and so they don't the world won't need that they'll be sending those down at home but they're going to replace it with STRs and STRs are composed of 40% US dollars so they're going to get rid of let's say they get rid of a hundred percent u.s. dollars they're going to come back with 43 percent or something you're right they're going to be required in the new SPR so there's a big amount of US dollars that are no longer needed in the US economy I mean in the world economy they're going to be coming back to the United States that what does that do that drives inflation it just goes straight up UN a.m. in the in that whole area so I want you to want you to see that and then what is an SDR we've covered this right now of at SVRs Special Drawing rights is composed of the euro the British Pound u.s. dollar on Japanese yen and we've been theorizing is this is the IMF going to use gold somehow or it is giant China can use gold amount we don't know really for sure but basically the Chinese in Chinese you want is going to make up about 11 percent of the ER so when you when you take a look at it this is the new international currency is made up of these five existing currencies this is this is a before and after look this is what it looked like before October there were four made up of four currencies this is what it's made looks like after October 2016 this is where the this is the US dollar and euro Japanese yen and the this is the Chinese yuan and this is the this is the British pound yeah this is a year old so basically this is what look this is what it looked like a few months ago this is what it looks like now and of course what happens as you can see Chinese yuan is down here 11% we're at 41% in the of the new SPR however everybody knows that China is close to or or maybe surpassing us under some markets so right now the SD art is not allocated properly as China is way underrepresented on here and the United States is over-represented on there and so you can look for that it's going to begin to change in the future that's going to be been to change in the future and so then up here is the here is the SDR fact sheet from the IMF the SCR is an international reserve asset created by IMF in 1969 to supplement its member countries official reserves as of March of 2016 200 4.1 billion scr's equivalent about two hundred eighty-five billion have been created and allocated to members STRs can be exchanged for freely unusable currencies the value of the SDR is based on basket of five major currencies u.s. dollar euro the Chinese renminbi the Japanese yen the pound sterling as of October 1st 2016 we won't read the rest of it what happens is if you notice that the Ukraine needed a bailout recently and we had two nations trying to compete to help bail out the Ukraine one nation with United States of America and the other nation was Russia they both offered to bail out Ukraine this was a couple years ago a year and a half ago something they have both offered the thing was they both offered the bailout Ukraine in strs Russia wasn't bailing the mountain rubles and United States wasn't bailing them out in u.s. dollars they both offered to bail them out in STRs so you've been getting to take a look at it and see what's up happening there here are here are the actual rates go to IMF and you can see these are the rates as of April the 21st that compose an SDR and this is what what one SDR equals one point three six three dollars right now that's how it's set up the SCRs worth is worth a little bit more than a u.s. dollar when it's set up so we're watching this this this structure this is the new financial structure this is the unit that is going to be used in international trade between nations unless they shion's will have the option of doing their own things apart from that but basically all the products all the insurance products all the the hedging products that you need to do international trade are all being set up now included using STRs so when we take a look at at this we have here from JC Cohen's of he writes this he thinks this is what he has seen in his research the ser compositions themselves will be based on both macro and micro weights and measures the macro breakdown of each country's currency composition will be as follows 25 percent production of commodities such as oil gas rice we iron etc will be will be a weighted factor for your currency national twenty-five percent will be important reserves and in precious metals and twenty five fifty percent will be in Fiat peg to increase or decrease based on the fluctuating values of the above two factors so basically in this scenario what we're seeing is a partially back of currency that is that based on formulas set up by the IMF on the value of your oil gas right sweet iron etc and also your foreign reserves and and precious metals now the United States of America does not have foreign reserves because we're the world reserve currency we just created it up there so we don't have to go out so what happens is a normal nation like we were in normal nation we would have to go out and and put together all kinds of foreign research we'd have to have you on and British pounds and etc so we do have some a few things but we don't have much like what other nations would have and so this is one thing that he's looking at in his researches he thinks about what he's done is he's gone to the he's gone to the financial sites themselves he goes to IMF the World Bank etcetera go so he researches these things at that particular time and and we see that this is what his conclusion is I have felt the China is actually wanting to do a gold-backed currency not kind of this this this way that they want to do a gold-backed currency I can see where you want to do this kind of thing for nations that don't make up the SDR for instance of some nation that's got oil reserves and they've got or whatever diamonds or something you want to include that as a value of the local currency but of Novation Cydonia cool so how would you do a gold you know go back currency for a nation as goal you know that kind of thing it's like well I can see where we could do a gold-backed currency or the nations that are involved in making up the SVR and I can see this for other currencies that are part of of different things so take a look at that that is up and so well what we see happening is precious metals and you see commodities production cost clutter so gas oil iron ore etc what what do you see you see Trump going out and trying to get mining going he's trying to get mining going so those assets in the ground count for for evaluation of the US dollar they're looking to do that so he is doing that he's going to he's going to love the gold vine in California he's got to love northern dynasties can do everything he can but because these are the elements that go into making up the value of your national currency what are your thoughts on to tone a to so has got going I think tombstone is going to go when Liberty star goes there one of the same they're a part of the same package and I think tombstone is going to go at the same time and there's going to be a day when because of this new structure as you're looking at this new structure your assets and your ground and your minds are one of the major factors that set the value of your currency and that is going to be a hot thing in the future so take a look at that the and let's go here this are this is a map that shows the currency pegs this is this is the United States is shown here in orange and that currencies that are packed of to the United States dollar or underneath is literally are shown in more of an a milder Orange company you know their labeling and then there's a flexible thigh is in the yellow ones two US dollars so you can see that that's the case then the eurozone you can see that some are types of the Euro like these African nations are tied to the euro some in some in there and then some nations are pegged your basket of currencies you know and so you see this happening down here in South Africa there pectoris a basket of currency but right now that's what is happening in the world of finance and how the the nations are pegged to the dollar but generally everybody is somehow a peg to or involved with the US dollar here is here is the if we take one hundred percent of all currencies out there this was up till nineteen through nineteen thirteen you can see the US dollar in was was this is about fifty sixty percent so you can see we're about sixty four percent or so of the world economy are using US dollars and here euro this is the case you can see the others are less this did not have the yuan included because this was only what was officially called reserve currencies you want has now been added in that phantom and increasing but you can see the point was to see how much US dollars are going to be involved here and what do you what happens with a collapsing Europe you can see because we're coming into a really dynamic period where there's going to be a major change in those areas we've seen that one let's take a look at this this is emerging markets that are coming out you'll see that United States is over here the the emerging markets currently comprising the 11 percent of global equity markets but the the bricks bricks are over here in wait you know we see other emerging markets you're getting a feel for the overall feel of the of the world financial system now I wanted to get to this which was what we call the great transition and this is a great transition to the new dollar to the new financial system in the world and this first way is over here in the transition we're going to have a liquidity crisis and we're beginning to see that what are they doing the Federal Reserve has stopped quantitative easing with the Delta actually talking about selling their quantitative ease all the bonds that they bought so in the first phase of the world those pros fear and everybody they have a liquidity crisis that will fear there's no quantitative no more quantitative Easy's Marcus be in the fall we have a sell off assets including gold because people are selling whatever they can when you run up in a liquidity crisis so whatever you have you end up with capital controls which we see many nations beginning to do we may have a new Treasury Reserve Note there'll be with a new note you'll have to turn in old currency because they've become inadequate after a while will be any good will have to balance a budget that issue evident and so we're talking about that right now Congress is talking about a balanced budget and then we said well we'll get a Keystone pipeline we'll be approved in exchange for the 2010 brief IMF 2010 reforms the 2010 forms have been accomplished in the Keystone pipeline has now been approved so we see these things happening that's that was like phase 1 this is our fear thing then we throw in new hope and the new hope is this that the IMF is going to combine new SDR liquidity they're going to start providing liquidity in the form of new money instead of the US dollar doing that it would be the SDR doing that and the other will be available in settlement of bad banks they have set it up where where we're going to bail out our banks if we're a part of them the end if the bank has of losing we're going to be able to take some of the money of their clients in the bank and use it just to settle and then they have to exchange and said to give us some cheers in the bank new world financial system is coming which we've just been talking about there's going to be a debt settlement through many nations that are so far that they'll never get out so they have to be in a settlement and a restructure and for many nations it will seem like a jubilee but they'll have to Heather they'll have their debt reduced and I'm cancelled it will be like a jubilee then we're going to come to a new phase of expansion with the new SDR liquidity we're going to stand start seeing super mega projects they're going to be the New Silk Road economic belt the 21st century maritime Silk Road of the mega commendatory project afro-asian South America Eastern Europe UN is going to ban hunger and poverty by 2030 they're going to xx programs to actually do that and then we have the g20 is going to start their global infrastructure initiative and because they're going to build for instance railroads and schools and medical centers all over Africa and etc all the stem stuff so when in the future during these timelines do you think that gold mining stocks will become more valuable you know they're going to become valuable right right in here they're going to start right at this point right here which is between phase 1 & 2 and which appears to be that same line between the Y is seven years of famine and the seven years of plenty because between those that seems to be the same line today today that day today we're on run that day April 22nd 2017 so thank you then you know let's take a look at take a look at this and and so one of the ways that they have they're going to do this is throw of honoring different historical bonds and different project gold deals that have been done in the past you've talked and I talked to you about how that there's much more gold in the world in the world than the world of Miss I think there's an excess of two million metric tons of gold well as the world says there's about one hundred and seventy seven thousand metric tons of gold you know essentially and so what we see is this here's this from JC Collins philosophy of metrics he says here's the apparent plan the in part one we introduced we were introduced in the 1913 Chinese goal reorganization long bonds a final payout of responses in these works this month part of the overall 2010 coated reforms process every time a deal was to be finalized with the bonds it corresponds to the debt ceiling debate and coated reforms within Congress so basically what you see is this he's summarizing it in just a sentence but let me expand on their little this is a Chinese government bond this is a you can see here on you we can see but this is the 1913 thumb that he's talking about this one is for 25 million pound sterling which been and in 1913 was equivalent to about 5 dollar a pound and this was a bond at that particular message in different languages this is in English over here on the left hand side and it says the Chinese government 5% reorganization goal bone of 1913 that is this is done in is pound sterling but it is in gold back go back palm sterling 1913 what happens the Chinese did not honor these bonds people around the world bought these bonds and one able to then let me just just go over here and just read this one paragraph from 1900 and 1940 of the Chinese government issued millions of dollars in sovereign debt most notably a large tranche of 25 million dollar pound notes issued at 5% in 1913 set to mature in 1960 this massive bond funded the modernization of China's infrastructure and is widely acquired at the time by governments banks and investors across the globe however in 1938 China defaulted on his but binding engage engagement upon the government of the Republic of China and his successors leaving millions of global creditors unfazed in accordance with the terms of the bond successor government doctrine and Accounting Standards the United States can and should hold China accountable to its obligations the Chinese bonds in question are held throughout the world by Treasuries banks company over 2,000 private US investors many of which are active in seeking remuneration critically the US Treasury and Department of Justice and States are understood to hold substantial portions of this Chinese foreign debt that's right the US Treasury and departments of justice and States have actually been out trying to acquire this from local the local u.s. innocence and they don't always use the most ethical certain ways of acquiring this these holdings have not been fully cataloged nor has the US government moved a whole China accountable for its debt obligations what we're doing is we're holding this debt over them which was the gold debt a China is eager to be recognized during the international trade and financial community as a market economy however in order to be regarded as a responsible and reliable participant in international commerce and finance China must acknowledge and rectifies multitude transgressions against the United States and the world trade over organization so what we're talking about here is China want is to be a part of the World Trade Organization but you you have to follow the rules the rules are you can't have my outstanding debts and frauds of things and all can just stuff that you've done you have to be settled all that everything has to be settled everything has to come together so what we're having now right now is going on is a massive restructuring of debt in the world and with the honoring of all fraudulent that every bond deal that any nation has ever put out and is not honored it's going to it is coming coming up and must be honored and must be gonna go she ate it and said it so we're in this grand settlement time that's been going on for the last 10 or 20 years they've been in this period for 10 years really strong trying to get all these factors settled because it's hard because governments keep changing us up keeps happening and governments are overthrown and who's responsible for the debt and all that so you could see the Chinese government bond there that's laws that we're talking about involved here is here's another one this is this is the 27th year goal bone of the Republic of China issued in 1938 in United State dollar bonds and in you this is for 50 million dollars and these are coupons and what you would do if you own this bond you would every year you would clip a coupon you see one of them has been clipped here we clip a coupon and you would submit it to this to the Chinese government and they would pay you your interest each year you would clip a coupon submitted they would continue with your interest on them so that's what they look at what happened that they did not honor well a light into him well there's a several different reasons one is a chiang kai-shek was at war with Mao Zedong in China and eventually Chiang kai-shek took much of Chinese gold and mekt – if I want we called it for most at the time they took the gold from China women and he went to wonder well what happened was that was the goal that was going to be used to pay these loans he peplum so then what happens we had we had Japan come in and take over major portions of China and they and then when they did that they raped all the gold that they could find in China and other areas Indonesia and they took in stash now that gold that they could find from from China in Indonesia in parts of Thailand Malaysia Singapore other areas the gold was couldn't taken and hidden in in caves and bunkers in the Philippines and in Indonesia so now of the goal that was going to be used by China to service these bonds which they are attention was to Services honks and been confiscated was buried there well over the years some of that gold was found in the Philippines and that's one of the guys that ended up with his hands on it with Marcos of the Philippines and he can gain the wealthiest dye in the world and he took and he stashed a bunch of that gold in in a mountain behind his home he had a home in something the mountains which was during the summer he would go there because of the temperatures was so much nicer and there's a mountain he'll hollowed it out and made a great big bowl and he stashed his gold other he found in these different areas that Japanese had buried it and he stashed it there and then when Ronald Reagan was in office the United States military came in and kidnapped the Marcoses I brought them to Hawaii and put them on trial you remember a show trial and the market says and has needs the same time United States government well if you say the United States government I don't know which part of the government is the baked area whether it's the CIA whether its I know what some thought some aspect of the US government captured all that gold and brought it to the United States of America we think that gold was most likely stored in the basement of the twin towers that was the gold so basically what you had was now China oh all this money in gold on these bonds over these years with all the family's interests and all the stuff that goes on off of it and the gold that they were going to pay for it is actually in New York and in Twin Towers in New York City and we have control so this is the game that's being played this is it this is what you call what do they call it the ultimate game this is the game that's played behind the scenes the big boys play these games in and nobody really knows what's going newspapers don't report on except in very vague plans so basically what's up like Casey Collins is pointing out here is this he says in part one we were introduced to the 1913 Chinese goal reorganization loan bonds a final payment on responses and be in the works which is going on right now they're done pay off these sponsor Duff honor these bonds of these Chinese art and that's a part of the 2010 code of reform what does that mean the 2010 code of reforms why would you that negotiate the sustain I think what the 2010 IMF quota reforms was this the code of reforms of brought in China to the IMF it it puts the the People's Bank of China director on the board of the IMF as a vice-chairman and the IMF complete increase their quotas they doubled the of the monies that the nations had to put in that is an SDR is created by all these few nations putting in money United States puts in US dollars and Britain puts in pounds and whatever all they put in all this money and then they create STRs out of them but what they did was they they doubled the amount of the that every every nation had to put in and China was required to put in and money as well and so they put in extra so what they did was they this reorganization gave China a seat at the plate example of the IMF it's not about quota reforms they talked about IMF quota reform first as medians the quota is nothing if China has as its teeth in the IMF and have some controlling power and major influence in any matter that's what they did as a part of that and then he makes this see if this thing this deal to do this reconciliation has been going on for years and it looks like it's going to happen and then it falls apart every time it looks like it's going to happen is again the u.s. is having a debt crisis the budget ceiling debt crisis every time and so I believe that this debt ceiling crisis we said it's just on purpose or not I think it's absolutely on purpose I think we are not going to see things work out I think eventually we're going to see crisis in this situation and it's all a part of international jocking for to get some negotiation because what the nations are negotiating and signing off on the final things on this right now on this reef of reestablishment of debt of the is important to know that China by China honoring the 1913 bonds will be able to access their full gold reserves including the portion that was used to support the 1913 bonds what he's infer into is this the China said that Chiang kai-shek took all the gold therefore we can't honor these funds but in reality they had gold there on hand where they could have but it would have really strained them to honor these bonds so they hid the gold but they actually had on hand and so they did not have to honor these bonds because if they if they were found in default they were going to have to then be kicked out of any kind of international trade it wouldn't be able to how you're going to sell all your goods from China is you can't be International trade you know you're an exporting country so what we found was and the first thing we put discovered is when Hong Kong was controlled by the British and the tiny latitude back Britain said in order to get Hong Kong back you must honor the 1913 gold bonds so what they did for all British individuals or banks they honored the 1913 bonds and they take 10% of their face value to the people in that seven some flips and most lot mostly these bonds were not then controlled by by Britain this was all kept under the table nobody you know this was in small print in the in the negotiations but we know that with that that these 1913 bonds would eventually be honored for all nations because they have now we're honored for the Brit Britain in there well he says with that being said the bonds will not be a hundred at their full face value so I don't know I think it's about ten percent and maybe more for in some cases the problem of with it you can't honor them in full face value life because they're worth so much today it would completely distort the whole financial system I mean it would just be people would be gaining hundreds of trillions of dollars you know because of all the time and penalties and interests and stuff on these bonds like any debt consolidation all sovereign debt must be included the owners of the Chinese bonds will get their payoffs the payout itself is based on a flat amount already sets with a historical bonds that is there might be lots of bonds out there but more or less people might be a it might be included in the moms but it doesn't suck it doesn't change the payoffs the payoff is the same that's been pre-negotiated they've negotiated and so the amount of that is specifically valued within the richmond mindy SDR composition the more bondholders have come forward forward will decrease the individual payout for each bond holder that's basically it so they are numb and so this of n of this approval of the IMF 2010 reforms was a hot button because congress had to approve it and if you voted to approve it you were bullied for the destruction of the US dollar e is essentially what it was so nobody they fussed over this for years and nobody wanted to do it so what they did was they put it in the budget bill in small print in 2015 in small print and people just voted for the budget and by that by doing so we voted to release the dollar from us world reserve currency status and the demand for the dollar is going to fall dramatically because of that and so we're just entering that period applying right now and since most countries have suffered that an outstanding historical bond it stands to reason that other situations like the Chinese bonds will be handled in similar fashion yes there's lots of different nations of death model can have fraudulent bonds things I haven't fully honored etc they are going to be happen Japan has what's called the 57s they're going to be honored and all that but so you know another pattern emerges as we study the history of reserve currencies is that with each reserve currency the centralization has become tighter and tighter the control of money that is through increased centralization the countries of the world that sunk deeper in the sovereign debts from which even more centralized centralization will be offered as the solution make no mistake about the power the United States has experienced since 1944 and the Bretton Woods Agreement has come from the 3 vert reserve status of the u.s. dollar after reforms are passed and the Executive Board to restructure the US will become a regular country like every other country in the world and that's exactly where we're headed he says here from the moment the reforms are implemented the dollar will see multiple devaluation staged to coincide with multistage restructuring of the debt the solve is the big thing in the world that has to be done in steps and each step has to kind of be resolved as it happens it is important to mention that with the passage of the reforms the world will not see an overnight immediate response the new system will take time to fully integrate the global currency reset will happen in levels as currencies are allowed to free float within the parameters as set forth by the SDR composition of each country and of the Basel 3 regulations which are controlling a lot of this from the Bank of International Settlements also says be fully implemented by 2018 so this is all that is set you know in the in the marketplace with the full immolated implementation of these reforms we will see all the currencies the world that are now attached to the value of the US dollar shift to a more balanced system of of wait now values be pegged to the value of the SDR and as issued by the International Monetary Fund so we see that's the kind of the general claim to know when this is going to be happening we have what we call signs of the times and I've got let's put this up on the board because these are important there are several major sign or few major sizes put that way the first is going to be the Fed is going to taper quantitative easing so what have we done they've already doing that they're not buying in the marketplace they're already quant a tapering quantitative easing the next thing that's going to happen is we're going to say – we're going to say the IMF is going to provide SDR if you want to take it easy QB equities are going to provide liquidity they're going to do quantitative easing so we see this one's happening already we're seeing this one starting to number three what you're going to see is US bases are withdrawn around the world why the only way we can afford US bases all around the world these 135 major bases we have around the world all these different nations is because we can create currency out of for nothing of nothing and spend it in the local economy for our bases for our soldiers and for supplies etc and then those dollars don't come back to the United States because the local economy needs to do business as a reserve currency so what happens is watch for in the budget negotiations and all the stuff coming up if you hear closing the US bases know that all these things are only happened that is all a part of the grand restructuring in the world the new financial restructuring and it means the collapse of the US dollar by major portions and as the US dollars we have created around the world begin to come home so watch for those those three signs those are literally happening right now and where we will see it is when we when you take a look at federal holders of federal damina foreign holders of federal debt when we look at we look at that report every once in a while to see how it's doing we will notice that holders of federal US debt will begin to decline the debt will begin to decline and we will see that see that happening as he says here expect more of the same as the system shifts further away from the dollar and culture to the NCR composition America can never openly admit that they they killed the dollar you will have to be hidden within a serious advance of mint which create a form of possible deniability that's exactly what the government is done exactly what Congress has done they are killing the dollar and of course what is that you would I have a prosperous because the dollars been unfairly you know increased in value I mean that's it reinvented recipients of the of the value now where to get a little bit of the negative side of that so what do we do inflationary we know gold and silver is going in US dollars is going to go up tremendously the commodities that we saw the grains are going to go up and credit all these things inflation is going to go up property values are going to go up and eventually the job salaries will eventually go up as well let's take a look at there's another thing and I'll just cover this verbally the other other thing is this over the years there's another classification of gold and this is this is called the global debt facility after World War two beings very all these people that have these massive riches from gold from Asia which etihad hundreds of thousands of metric tons of gold in different quanta here's us if not guarded 99999 it's just a stuff that has been created over hundreds of years I offered this gold up to bail out the world after world war two and they created what was called the global debt facility alcohol and collateral this with the collateral or the debt facility they provided I don't know was at eighty six thousand metric tons of gold to bail out the nations of the world refinance after World War Two and etc they put forth their gold and they were issued deposit receipts and they all similar to these bonds that we have here for their gold but then the banks decided they were going to heat hold onto the gold from themselves and they didn't apply to the nations and all the national debt and they get to use it to rebuild them the nations they just kept the money and so this this gold which was the bailout the nations of the world and actually zero out the death of all kinds of nations in the world which was had been offered as been hijacked and controlled by several nature banks that goal is now coming forth it is going to be a part of the restructuring that gold is now coming forth they're drawing they're dragging it back from the banks here's what the banks did they sign an agreement with the parties the broth of the gold and deposited this gold and sometimes a deposit 20,000 times in a bank 10,000 times etc a metric tons of gold in a bank and the bank would issue them documents say what what had been done and making it an equesticle well and they would have a document for the person they have a document for the bank now in each document they created spelling errors misspelled words all kinds of stuff and in each document and the parties were told at the time that this was a special code that was put in the in the in the documents so that the documents would wouldn't be forged or because and they have a tentacle key there so what happened was the people came back later and said look you guys haven't paid us we haven't been getting of interest on what we've given and you haven't used the gold for the purposes that you said that we were going to use it for and word won't be wanted money and they said well show us what we've got they showed them their of their document they said look you have all these spelling errors in the new document this absolutely has been this has been forged by a very ignorant Filipino or an Indonesian person it doesn't understand English and and therefore they said we cannot verify that you are the owner the goal and so because they couldn't verifies it for the day was owner the banks like got to keep to do whatever they want so it uses collateral for loans and they use they use it any way they wanted they leased it out to others they did all kinds of stuff with this gold so basically what's happening is the banks are being called on this that are involved city banks and HSBC all the big banks are all involved in this Wells Fargo they're all big banks are involved in this situation so the there being cold on this is this goal is being cost up and being a part of the new reconciliation Jubilee bailout of nations so what this new thing is they're going to putting all the debts together and they're putting all these assets together and they're going to try and cancel things out and set it up at that particular time of so that is that's what I have on that and so that is happening now and we won't go through all this other stuff this is Ken's story I'd like to take a minute or two to tell you about what our business and ministry is investing with insight what you are looking at is our our website on 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but Turkish people have a role to play we know they know that the masterminds are here CIA / NATO the deep state the operation Gladio be they know the network's head is here in the United States and United States has been harboring this terrorist this mullah this Ayatollah in the United States you're listening to the Corbett report welcome friends this is james corbett of corbettreport.com coming to you in a special joint production with news vidcom today we're going to be talking to Sibel Edmonds and Spiros chorus about the topic that has taken over the news headlines over the weekend and that is the attempted Turkish coup that took place on Friday and was quickly quelled but certainly has created a stir and is going to have geopolitical ramifications in the coming weeks and months for sure it's an interesting situation especially because we were talking about it six or seven months ago here on the corporate report and on boiling frogs post calm with Sibel I wrote a newsletter editorial back in the beginning of December of 2015 is erdowan being set up for a NATO backed coup and then a couple of weeks later sibel and I talked about that very possibility in an interview that we recorded towards the end of December I mean is it inevitable that Iran is being targeted here and that he's going to go down and if so how does that play out because they finally got to the point where they divided the country so much internally and the opposition so he does not enjoy what he enjoyed two three years ago he still had the majority support that support has been diminished is far below 50% now and he's going to be replaced with someone much worse I can guarantee you that because history repeats itself in these countries with someone like the his predecessors and I don't know if it's going to be a direct military coup but the Jay Happ a CHP party that the debtor secularist a behind the scenes some of the powerful factions within CHP they have formed Alliance with Gulen movement which is which is mind-boggling I'm talking about the most secularist party forming alliance with the mullah who is who is advocating for fundamentalism fethullah gulen i never thought i would see such day that these two will will will both full force join forces and so you're going to see something like that and but things are going to get worse we're going to have more terror events in Turkey it's going to happen and it's going to come from many sides there's going to be the the Kurdish size that of course all the stuff that they are blaming on Isis it's it's going to be Messier but he's going and Sibel Edmonds was even more explicit in an interview that she talked she recorded with Lew Rockwell a little later on you are looking at a country that is about to economically collapse any time now and and your question was on aired one and when you asked for what's happening and what's going to happen with everyone that's going to be the major factor determining what's going to happen with aired ones administration they have formed this date on November 7th or 28th for the election but if this economic collapse happens before then let's say by October which is highly likely that it will it will take place then you may look at the big major possibility of a period of pure chaos and violence followed by possibly another military coup in Turkey which will be the operation Gladio and the rulers basically taking back the Turkish government so perhaps this is not surprising but it is interesting that the way this all played out so now we're going to have to try to sort out what is actually happening in Turkey what just took place what is about to take place and who are the real players here who was really behind what happened in Turkey over the weekend and who is really in control at this point it seems to be Irwin and his faction have re regained control but we need to understand these events in a bit greater context so let's bring in Civ elements to this conversation so we can talk about these events in more detail all right we are working obviously with a moving news story so by the time that you guys see this who knows where this story will have moved on to but at this point we know that Iran is pointing a finger at Fethullah Gulen who again should be very familiar to viewers of my conversations with Sibel over the years and Gulen of course is saying not me Vernon probably staged this himself there are interesting elements pointing to well probably both of those possibilities being at least somewhat true but I want to get cybele's take on this sibel let's start by breaking down the events of Friday your thoughts on the way this played out and how it either goes with or goes against the narrative that we're being told about this being some sort of spontaneous uprising by some angry military personnel well thank you James as you just mentioned the story and the facts and the storyline keeps evolving and it has changed to a certain degree since Friday but as we see it is changing on hourly basis and just a quick note a lot of people have been making comments about oh I'm an Oracle and and I predicted looking at my crystal balls but if they did listen to that interview we had to that discussion they would see that we basically connected the dots and that was a pretty much educated yes educated prediction of where things were being led to as you know they started in 2012-2013 with those famous Taksim Square protests were mostly designed by Gulen and when we say Gulen you're looking at an 80 year old senile guy he is just a figurehead he is a station here in the United States he's been in the United States since 1997 he lived in several castles his castles are protected by security guard Apache helicopters his nest Ward for his NGOs and foundations for this molecule and is estimated around 22 to 28 billion dollars he owns and operates this terrorist this mullah Gulen the largest charter school chain inside the United States and together with his CIA handler he's been establishing hundreds of mosques in Central Asia in caucuses even in the African continent in Indonesia so and he's been living in the United States while wanted in Turkey as a terrorist since 1997 okay so those protests were quashed and after that we saw this escalation you and I with all the propaganda during the elections as the elections neared so that was another attempt by the CIA NATO and Gulen faction to sway the public opinion and basically defeat or take aired one of power that didn't succeed despite all the trials all the mainstream media propaganda especially here in the United States but to a certain degree with the english-language version of Turkish mainstream media who and the bit operatives were linked directly to Gulen and the CIA here and all the think tanks that you and I have been talking about and that was when I predicted predicted that since the other attempt failed those would have been some sort of fast coup the next step would be attempting a coup a military coup and Turkey is not unfamiliar Turkey has gone through five coos before and the 1980 school was the biggest one and the coup was implemented by United States by NATO using Turkish military because Turkish military is mainly on their United States and NATO not on the paper not according to the bylaws in Turkey but that's how it's been for several decades okay as a NATO member Turkish military takes their order the military from us at NATO so all the other things are kind of more cosmetic election and presidents etc yeah they have some role within the internal politics well when it comes to really big decisions when it comes to really big implementations of big game plans you're looking at Turkish military so on Friday we just found out through the Twitter and through the u.s. ministry media here that that coup was in play and interestingly as you would observe with many coos around the world especially those implemented by military / you know CIA deep state they always take place at night why because they want to take advantage of the time of the day when people are in bed so by the time they wake up in the morning it's all done deal okay then they go about establishing curfew and that usually lasts in 1980 when I was in Turkey glasses for three four years in certain areas the curfew until they establish themselves well this fits depth particular pattern and then of course we started seeing the site warfare this was not present in 1982 in Turkey there were no social media there were no Twitter there was there was we didn't have any Facebook but Spiro and I spent that entire day in front of the monitor in front of our computer and we are checking all the information that is being poured into the social media channels such as Twitter and lo and behold we see this twit popping saying everyone has trying to escape the country he is flying all over Germany can't land he wants to have asylum in Germany the moment we saw this twit it was psych warfare written all over it because what would you like to do to demoralize people and make the coup successful you either false informations declared the leader dead and that is amazingly effective because people get demoralized they're saying it's a done deal we don't even have a leader anymore or they say your leader ran away he left you and he wants to go and get asylum in the UK or United States or Germany which they tried to do so at that point I started chasing these twitter and saying where's your source and where is the link where are you getting this information to just show you how the phases of coup has changed or the implementation tactic now it's even in a way stronger more multi fronted because social media as it did with Arab Spring as it is momentarily when we were seeing that possible Iran is for Fink use of Twitter and Facebook to help the coup succeed by spreading rumor by spreading misinformation well it's it's very interesting and you're absolutely right in we have seen time and time again in countries like Turkey specifically social media being shut down completely and that is obviously going to control an influence a lot now these these tweets that you were talking about talking about Berta Wan fleeing the country and trying to seek asylum in Germany you you had called it right away that this was a PSYOP and it definitely appeared to be it still appears to be that way and I had looked into the original source of this information and from the best that I can tell the first person tweeting about this is a guy named Kyle Griffin and he is he works for MSNBC is a producer and he tweeted out this was mid coup that a senior US military source tells NBC News that Iran refusing landing rights in ýstanbul and is reportedly seeking asylum in Germany now this was taking place as the coup was taking place the attempted coup there had not been any word yet from Iran or the government there that at this point in time the the coup plotters had already taken over the the press they went in and took shut down the media outlets and they were saying that they had declared victory basically at this point so this like as you said wasn't injected it appears to be injected at this key specific point to try to stifle any kind of resistance to the coup so it makes me question well who is this military source and and why is why are they saying this why is MA MSNBC running with this NBC running with this and then before you know it like you said it was everywhere it was being tweeted everywhere and then the jokes followed Oh Berta ones the first Muslim who has had been refused to siloam in Germany at all of you know all of that but very interesting it is interesting but we can and there were people who were actually tracking his flight in real time on flightradar24 whatever that site is that shows that he really was circling around for a while and obviously not able to land so something was happening and it's interesting that of course that idea just gets floated and it seems to make sense so it gets picked up and then rebroadcast out without anyone really checking what the source of that information is I think again that is modus operandi for an operation like this that of course raises the specter of the deep state and who was really in control of what was going on during those hours and I think the most intriguing possibility of all of this is that the one that is now it's now being floated in the mainstream and I hope we don't need to point this out for our listeners but I think it's incumbent on us to point out the hypocrisy of the mainstream media that the idea that this could be a coup that was staged by Iran himself in order to crack down an opposition is perfectly conceivable and allowable because Iran is on the hit list he is a bad guy but if this was an American friend or ally oh my god the idea oh you're such a conspiracy theorist what a crazy person you are so of course this is an allowable conspiracy theory because Iran is on the hit list but it is one that does have a certain degree of if not a ring of truth to it at least it makes sense if you are one and you know that there is a faction that is plotting your overthrow wouldn't it make sense to get ahead of that to stage or encourage this little bit of the military to do this little show coup so that you can then crack down on everyone else which of course is exactly what's happening now thousands of people being rounded up and her Diwan probably has a tighter grip now than he has in yours so it does make sense from that perspective sibel what's your what's your feeling on this idea well I would I would distinguish between stage versus some foreknowledge because air go on for the past three years justifiably have been trying to clean house because as we have received this is documented fact a certain percentage of military has been in filter by CIA Yulin network a very large percentage of Turkish police force and this is over 20 25 years period people that they have been info stations has been infiltrated by Julian CIA Network same thing with the courts and every time he attempted he being aired one even with facts and evidence rounding up these people and removing them from the position well that was used especially by the Western media and the and the extension of Gulen network including many media organizations in Turkey that are still under the control of Gulen movement it became bad PR he is being dictator look at this he's removing secular thinking people from the military because he wants to bring Sharia law now the real Sharia law actor for the CIA happens to be mullah qn the man who lives in the united states and gets to be every day more powerful a man who is taking hundreds of US elected US representatives into fancy schmancy expensive trips a man who got goes and builds madrasahs around the world that's a Sharia man CIA Sharia man accusing everyone of being a dictator and we have been watching it unfold James this way the idea the notion the rule of the coup being staged was has been floating for quite a while I would say close to a year even when I was in Turkey last year there were people who were whispering they were saying the election it didn't work it didn't work with organizing protests basically they're going to come like they did in 1980s and we're going to have a military coup well of course they have had foreknowledge how can you keep quiet especially in a place like Turkey in Turkey we tend to talk run our mouth as other audience know with me so would he be would it be smart wouldn't you do it if you were in the position James to say you know what this is a perfect opportunity let them come in let us show the public what they are trying to do who they are and then without that bad PR we can round them up and clean house and the whole thing is though if you were to ask me so this is over arrow on one it's under control I would say definitely no because this did not seem to be the scale in the scale off and the well-planned real coup I think this was their dry one I think this was a warm-up coup and the real big coup is still on its way against erred one maybe with this one and this is a maybe I'm putting a hypothesis label on this maybe it was too you know how you check the patient's pulse to see what kind of shape that person is maybe they're trying to really take the pulse of the nation to see whether or not they are going to really opposed the coup where is going to be the public opinion where it's going to be the public stand what kind of holes would be in the plan so looking at the small scale of it and in some ways some sloppy nature that that this could carry unlike the Queen 1980s I would say this was the experimental warm-up coup to lead to a bigger coupe now in this case the people in Turkey they played a major role and and that has been shown basically these enemies of everyone the the Western countries NATO that it's not going to be that easy I mean you have these people despite all the tanks pouring out on the street listening to air go on saying don't stay home get out and fight it get out and fight it because no matter how big of the military we are talking about how big of an FBI think about millions of people what kind of power they would have despite the tanks and the guns and the Turkish people the supporters the Nationalists they listen to that and they did exactly that now this is in a way a positive thing to show because the spear and I were talking about this and we said would we see similar kind of reaction in the u.s. if we had a situation like this or would people go with their little cell phone under the bed and say wake me up or let me know when it's over so I can get out because it's so dangerous out there I mean 270 plus people lost their lives these people actually they climb these tanks okay and they were not armed because they don't you know they did they don't have their gun rights in Turkey so it was their fist it was their arms it was their it was their determination to say I'm going to put my life on the line to stop these cool it cool that is being planned by the outside nations and of course as you just said James the ways being portrayed in the United States is just amazing not amazing to you and I but amazing that it is still being tried because imagine Americans there is an outside nation that infiltrates this military and says you go there and create this coup in the United States we would want those people home we would want that nation to be nuked and and and and yet they are forming and shaping the public opinion in the Western countries as here's a staged event by air duan and turning the chamber hopes and they're making it about him being an evil all right the Nick the question about the next step I think is extremely important here because as you say if this was just a practice run or a warm-up then I guess the question is what happens between now and then in terms of cleaning house and we are seeing thousands of people being rounded up right now but the most important part of this potentially is Gulen and what happens as you say a figurehead as senile old figurehead at this point but still the the central part of the the faction the CIA faction that's that's working you answered one right now now there has been a lot of talk about Gulen extradition and calling for his extradition but there has been no formal extradition call yet at least as we're recording this the latest from stars and stripes stripes calm july 17th 2016 Kerry says US awaits formal request for gulen extradition saying that we have not had a formal request for extradition this has to come in a formal package give us the evidence show us the evidence we need a solid legal foundation that meets the standard of extradition in order for our courts to approve such a request is this really going to go ahead is is the erdowan government going to make a formal extradition call for Gulen and if so how does the u.s. counter that of what's going to be the next step in all of this well these were loaded questions James I will I will basically chop it in three segments in order to answer it comprehensively as far as I have been reading especially since 2013 Turkish Justice Department Department of Justice Department in Turkey at Leah bacana they have been sending all the things that are being requested by the FBI and the Justice Department here on festal ocula okay and so of course the bureaucracy is playing oh they didn't maybe tick this boss with a box so we're going to send it back or maybe the signature was kind of faded so we are still looking to authenticate the signature of the person who authorized this extradition request that's the biggest bullshit I've ever heard Turkey has been on the record demanding this man's extradition not only that this terrorist Mulligan who operates the biggest charter school chain in the United States has been under the FBI investigation for money laundering and all sorts of other criminal activities since 2009 2010 I mean you're looking an organization that is linked to so many different kinds of terror fighting and things money laundering and and also extreme spreading extreme ideas they're operating centered in the United States I think as far as the extradition is concerned what we will be seeing is even if they say oh now we have the formal extradition request they can sit on that and make it last four to three years because they're going to give him an opportunity to appeal that and then after that to appeal that particular decision so they can drag it at least for two years but I have seen and heard people floating the idea that his health has been deteriorating Festool ocula the more likely scenario is he's going to die you know he's going to have a stroke be hospitalized or just die while all this extradition tango dancers take in place for show only between Turkey and the United States but the most important point here is whether with you lands extradition being formalized acknowledged by the United States or not the real coup is not the one was that was pride that we saw on Friday it is not over Turkish people should not let their guard down they should not get comfortable and say hooray we have rounded up twenty five hundred three thousand people the number then we are looking realistically for un network including all the judges including I mean you're looking at his own National Security Adviser that being the snake that they just arrested it's far bigger than 2,500 or 3,000 but also we should pay attention close attention to other signs out there indicating the coming coup the real stuff for example they just declared that out of the injure late NATO base this is the securest airbase of the planet I would say even more secure than the one we see in the United States forty two helicopters missing they walked out forty two helicopters from NATO's in julik base and even though for the past half century the United States and its allies NATO allies they have been keeping quiet how many nuclear warheads they have put inside the turkey okay and it's not only injure like military airbase as they are advertising Turkey has had nuclear warheads for a long long time just like Israel issue that has been always kept quiet and the ones a ninety plus one the NATO air base is justified as NATO air base if you pay close attention James they keep floating now you know these nuclear warheads what is Isis gets there okay think about this air base that has weather the entire Cold War era with no penetration no danger right all the al-qaeda's stuff the military coup and before that the energy period in Turkey and now suddenly you see them advertising the importance of the nuclear warheads in indirect base in Turkey that is significant that is going to be tied to the coming coup because that would justify NATO and allies action because they have to go there remove air dwande keep the country secure so that we won't be nuked that's what they're going to use and where the heck those 42 helicopters are today and how the heck can you take out 42 helicopters from one of the most secure airbase in the world so that's the kind of a BS line that they are selling the mainstream media to the people but Turkish people have a role to play we know they know that the masterminds are here CIA / NATO the beep state the operation Gladio be they know the network's head is here in the United States and United States has been harboring this terrorist this mullah this Ayatollah in the United States and and they can put pressure on aired WOD or facilitate his maybe already existing desire of playing tough because Turkey camp later why did why don't they shut down the US consulate in Turkey wouldn't we have done that let's say in the United States if it was we didn t shut down Iran's embassy and consulates declared them as an enemy working against the United States they can put pressure on the United States in fact they should shut down the base and say it can't be operational they can shut down the US consulate and there are enough Turkish people here that can actually assert some level of influence they know where his has foundations quarters are school and they are trying to implement warm up coup and then a big coup I mean Turks are they can be in some regards very brave and they should come and take their man put them in big crease and take them back into Turkey and hang them but there are things that people can do in Turkey and it's time for them to get tough and just go beyond talking to talk we have those great people who truly put their lives on the line these people is not political ideology it was saying we are not going to have foreign powers coming and implement couth here in our country I think the point is early one's never gonna do that Erna one's never gonna kick the u.s. out never gonna close down the embassies he's never going to withdraw from NATO this is I mean if he was going to do that he would have done it by now but the people can I mean think about this he what okay let's say this is a short-term victory for air dog well who brought this victory forever it was the people it was those people that they poured out on the street so if everyone is not going to do it Turkish people and I will tell you you may be seeing it two days from now they can go and shut down the embassy in fact the embassy people will evacuate because when this is what's happening directed towards Turkey I don't think the United States embassy or consulate has any right to exist or operate in Turkey and that would be the public opinion in Turkey if everyone doesn't shut down at least maybe you would stand on the side and watch people do it okay maybe it's time for helicopters to go and evacuate the personnel including the CIA personnel directing facilitating this warm-up cool kick them out of the country okay can they do that of course you know they keep showing the Iran hostage taking situation they never show what the United States States did to Iran via its embassy and Ana CIA headquarter for Iran being stationed in the embassy that is being censored that's never talked about well the same thing many of the CIA operatives many of you lambs handlers they operate in Turkey so Turkish people can go shut down military attache in Ankara the embassy can they do it you put out there 15,000 people and I will see how fast they are going to run for their lives it would make some interesting parallels for the Jimmy Carter of 2016 aka Brock Obama to end up with a hostage crisis at the end of his administration I don't know it's very interesting I have no idea whether this is likely to play out this way as you say but it is certainly something that is possible as you say because it was it really was the people that really did make the deciding difference on Friday and you're right if they had just cowered under the bed and waited for the morning things might look very different in Turkey right now so I guess you you certainly have a point there all right is there any other points that you or Spiro would like to make before we start wrapping up here I know Spiro has a couple of good points on all the links between theft to law school and and I'm going to let him address that we were just sitting and reading up on bet to law school and Foundation and his connection to Clintons both Clinton's Hillary Clinton's and her foundation but there are enough Turkish people here I know some of them are dual and supporters but there are Turkish people in the United States I would tell you that this guy Fethullah Gulen he he has several headquarters because he has several foundations and NGOs they are here in the United States and as FBI has declared they are under investigation and they can show some muscles and they can demand their own demands Turkish people to go after him here so they are not extraditing this man who's already criminally under investigation by the FBI they maybe take notice taking notice of some people going and targeting you lands facility in the United States for a man known to be terrorist and I think us would have a hard time while I was investigating this terrorist this mullah to say that okay if you are going to protect he's not even a US citizen so that's something that people should not disregard because their elements are active out there they can raise their voice and their presence people here and target Guillen's facility and I also would like to issue this call for all these unknowing parents who are sending their children to a charters all operated by worldwide renowned terrorists Ayatollah mullah who is most wanted okay so you're looking at a sanction bin Laden to a certain degree because some of these madrasahs as we spoke about this James they are also training camps for terrorists weathers for Chechens or for some other factions that now they are pouring into Syria before that they were going and joining al-qaeda in the Balkans and remember Operation Gladio be started 1996-1997 this was during Clinton's watch okay this was not during the bush or Obama watch this operation started in 1996 1997 and spec to lock you land was brought in with a CIA Gulf Stream planes while he was most wanted in Turkey into the United States in 1997 on their Clinton's watch he was harbored as a terrorist even though it's Turkey was a NATO ally by Bill Clinton and Clinton's people so people really need to take note of these facts because these are documented facts just go and check we have covered it we have provided the links and I would let Spiro finish up with the many links of fester lucky land to Clinton and Clinton family well I think you covered it pretty well there Sibel actually the Clinton Foundation's and Fetty lucky lands foundations have been working together throwing money at others way and it's just another example of how these families and like the Clintons these dynasties have been around for a long time and they have their hands and everything behind the scenes and this woman is getting is running for president in this country in the US and so it's just it's alarming to me the it says a lot about the state that this country is in and how these people essentially are above the law and dual an and the clintons and many others are perfect examples of that and they're working together and these agencies are involved and they're influencing or trying to influence other countries and what's taking place there without considering the the residents of those countries there that are irrelevant so they're just going to push and then keep pushing in the military industrial complex is going to continue to gain you know if we see NATO and everyone in F course Isis next we're going to hear that Isis is behind the attempted coup in Turkey I mean what's next so they want boots on the ground in Syria and and they're going to kind of keep pushing so that's a we'll have to see I'm sure a lot more is going to unfold here pretty soon well that is obviously correct because again what happens in Turkey has ramifications throughout the entire region and also of course what's going on in Syria and so there are a lot of different different agendas that play here and as I think Sibel rightly points out the nuclear issue is going to be the one of the main cards that's played I've certainly seen it played in numerous times this weekend now they're suddenly talking about nukes in Turkey where they haven't talked about that that for decades and decades but suddenly it's an issue clearly there is some some major moves afoot in the region and obviously this is going to be playing out in the next few weeks and months even the next few days could be extremely interesting so we'll be keeping our eye on it here at corbettreport.com I'm sure at news but calm also so people can stay tuned for updates there anything else you guys would like to say before we say goodbye my condolences to the families who lost their family members loved ones during this less than 12 hours coup attempt and again I would like to repeat that people are not powerless they have shown at times and time again in in Turkey and they of course can expect and demand the authorities in Turkey to act upon this and shut down US facilities in Turkey until until they get satisfactory result and get these people back up it's their sovereignty and Turkey's sovereignty any nation's sovereignty needs to be respected and if they don't get that I believe Turkish people have to take it into their own hands and say okay we are going to go and shut down the enemy camps because that's what we would declare you would call them MNM II camps and currently the role the US Ministry media's playing and the United States government is against the interests of the people people democratically elected whether we like are gone or not I'm not saying I am in love with everyone it is people elected him that was people's choice you don't respect it shut down the United States Embassy shut down the United States conflict shut down the King tanks because that's another place where a hardware and I know exactly which ones they are we will talk about it the CIA operatives many of them operate through at the Sheikh consulates and the US Embassy but many of the NGOs especially the solos funded ones they do issue get issued diplomatic passports and they funnel CIA operatives into Turkey so the Turkish people can take it upon their own hands and go and shut down these Hornets nests and start doing get demanded if you're president if your Parliament is not doing it you take it to your own hands into your own hands and shut down these institutions until they respect your sovereignty all right well that's quite the rousing call so we'll leave it there Spiros kurrus Sibel Edmonds thank you for your for your information and I hope people will stay tuned to news fed and boiling frogs post for more updates thank you for your time thank you now available from corbettreport.com the data DVD volume for every podcast interview episode and article published on corbettreport.com in 2011 all on to data DVDs for details or to buy other corbett report dvds please go to corbettreport.com slash shop

 good company right yes yes and actually if you do want to talk about trends I'll put my track record against anyone in the entire financial media anywhere in the world I'm not just saying that because it's when you talk about what's going on economically around the world and even politically and I know nothing about politics I mean it's pretty you only need rot you don't need a rocket science degree to see what's going on and most people just for whatever reasons these are selfish reasons or they're ignorant or they just don't care or they don't do research because research is a lost art they just never seem to get it right but you know economically you know things are singularly the worst that they've been in my lifetime today worse than – that the only time they were worse or literally the few weeks in the middle of 2008 crisis when when people were in fear and headlights type thing when the markets are crashing and you know in the aftermath of 9/11 and I'm talking about you know for two weeks that's it when everyone just stops otherwise in every quantitative measure out there this is the worst that it's ever been in our lifetimes and the trend is down I mean it is across the board you look at you know the GDP again I drove all these numbers are gigantic jokes like you know the GDP just came out for first quarter point seven how it's even positive is beyond me because all the important numbers the hard data are not only down but rapidly falling and if you want to use your point seven which is now doubled seasonally adjusted and even double seasonally adjusted it's the worst quarter that we had in like five years and 2016 was the worst year for GDP that we've had and I think since 2008 you know you no matter how you slice it things are getting worse the retail Armageddon is real and it's not just because of amazon.com look at yesterday's auto sales that came out for April bloodbath was the word now on Zero Hedge and you know that that's coinciding with the record high inventories of cars and the record highs subprime loans and leases of cars at record high durations and interest rates that that's you know going to be moving up on them and that's just the auto sector and then you have you know things the construction spending is down the weak the durable goods orders are down the only things that are up are the defense orders by the government as we go to war and probably the only thing 12 will get past this is 10% increase in the world's largest military budget like bigger than the next five countries combined that will probably the only thing that he gets he gets done and when you talk about precious metals I mean look I'm looking at silver down 28 cents today on yet another day of absolutely all as I call timbi precious metal bullish everything else bearish news we had a four for four yesterday in economic data misses and personal spending and construction spending I mean just across the board the problem is that as I've said for some time the commercials as in the cartel had taken their largest ever short position in silver which which maxed out about two weeks ago right in the middle sandwiched between the Syrian attack and sending our worship to North Korea so that we can have a nuclear war there right in between there was when it maxed out and since that time you know silver has been taken down now 13 days in a row which is the longest that it's probably ever been down in the 15 years I've been watching it but more importantly I just looked at from it you know a technical standpoint the only other two times it's been this oversold in the past five years and my fate only goes back five years I don't have those events charts are right after the April 2013 alternative currency destruction rate when you know Obama had his closed-door meeting with the too-big-to-fail banks and they smashed prices the next day and at the ultimate bottom of crisis of gold silver in December of 2015 I'm sorry one more time at the end of the end of 2014 when the Swiss had their gold referendum and there was a manic effort by the central banks to smash prices down in front of that referendum so that the referendum so people would not want to vote for wrecking a buying gold and of course a week later it surged and then two more weeks later the Swiss at D pegged the franc from the euro after having spent the whole fall telling people we need to have this referendum fail so that we can maintain our peg with the euro so again we're talking about historic times right now in the in the precious metal markets due to historic desperation for political matters economic matters and hopefully not military matters because you know everything is hitting the fan right now I wrote today of the well yesterday I wrote a howl the biggest bubble in history and because that's unequivocally where we're at right now and and today I talked to his dog message I remember when I was talking today the topic oh yeah central bankers with itchy trigger trigger fingers because right now it's at the point where the only central bank in the world that's not at full force QE is a Fed and given the massively deflationary nature of what's going on in the world right now it's only a matter of time before they're forced to by circumstances yes well and the question is when is that going to happen so those car sales were pretty pretty bad the car sales have been great since four years now mid 17 million units a year they've been selling so it's good for GM I guess is good for America well we replaced the stock bubble with the in 1990s with the real estate bubble and when that crashed we had to have new sources of bubbles created because that's the Fed does it's printed more money and so of all the other banks the world to create more bubbles so you know we've seen selected real estate bubbles not in every market but in many markets and we've also seen the relentless push to find ways to get Americans to borrow as much money as possible and when you look up 10 years later after the after the crisis you realize that in the first quarter of 2017 that we just finished household debt which had plunged during the financial crisis not because people were paying back debt because they were defaulting on it has officially gotten back to the peak level of debt on a household basis and from credit card credit cards that we were at at the beginning of the crisis in early 2008 the thing is that the household debt is now broken up differently because now that homeownership has has collapsed to two decade lows because everyone lost their shirt and can't afford houses anymore and secondarily because the Fed created an echo bubble so thus aventure capitals can go in and buy up all the houses and make think even less affordable I am drive-up rents – as we speak the highest level of average rent ever so you know you have less mortgage debt now because less people can afford houses but you have had people funnel into credit card debt which is going to recognize and the two new big subprime category since you don't have enough mortgage demand well frankly the bank's wouldn't give people mortgages even if people wanted them and it's the new two big categories our student loans where we've doubled the amount of student loan since events it's a financial crisis it's like 1.2 trillion dollars now and also subprime auto loans and that includes the leases that don't get included in loans because now we have a record amount of cars that are financed either by loan or by leaf and at record duration then for record amounts it's kind of like those housing loans with that the car companies are actually and the banks are actually lending out more than the value of the cars for people and now those those markets are I mean not just you know anechoic they are right in front of our faces crashing you're seeing exploding delinquencies in in auto loans and student loans and and you know next up it's going to be credit card debt because you know we've had our zero interest rates all these years and yet credit card interest rates haven't gone down at all if anything they've gone up they're not at the all time on it but they're pretty close to it and now that people have record credit card balances I mean I just read today that the average American is twenty five thousand dollars of credit card debt I just read that I said that it said a huge amount how yeah I think it was like you know the top X percent have like thirty seven thousand dollars on average of credit card debt nothing that's 20 percent debt right there so again oh and we haven't talked about the government which has doubled its debt if it's a financial crisis and pushed interest rates down to essentially all-time lows because it's the only way that they can finance it on a day to day basis so where do we stand right now let alone with Trump you know we have this remember we had two um places because Trump's going to come in that's Trump but just anyone come in and we just taxes and repeal Obamacare which in and of itself doesn't change anything from a financial standpoint I mean you can move around you can call that were taxes feeds it's kind of like the you know census swap so when they lend money to European banks they don't count it as money printing even though it is money praying it's just an accounting gimmick so even if there wasn't a repeal and replace of Obamacare it would still be the same thing because what Trump is trying to do is basically have the same thing as Obamacare just kind of called something else and shifts around the accounting on it so that you can pretend that there's less deposition push through attacks like the problem is you can't get it done I mean we're at number three we're supposed to get elected on today and could get enough votes so that even that's not getting done and then we're supposed to get a tax cut that's based on that and it's so comical and they say well now that there's no no upon macare we could focus on taxes and they said no we said in the beginning you can't have a tax cut without an Obamacare repeal we don't have an Obamacare repeal we don't even have we have all we got is a one-page tax cut plan that's pretty it's predicated on things that haven't happened it can happen and are politically unviable as I said from day one in the first place and then there's this fiscal stimulus which isn't even you know members of the Corps of translation even though the fiscal stimulus who's talking about from the beginning isn't even up a isn't even it's pennies on the dollar compared to what the Chinese have spent for ten years yeah and and to no effect so again none of these things are happening and by the way you look at the quotes from placeand trade right now and what do you know it's on a party interest rates are plunging commodities are projects who is there anyone in the entire financial world other than me who is saying that the oil OPEC deal would fail if it was even a deal at all well guess what it's failing and they may not even renew it I think it's the meeting is a week or two from now yeah so we're talking about every aspect of the supposed Trump Latian trade which by the way wasn't even a trade you know until hours after his elected going up until adieu he was the worst thing in the world for stocks and the best for Goldman until hours after he was elected when they changed it to no no it's translation now he's our the he's like little Hillary Clinton he's amazing for sacks and bad for gold but now we have as I wrote yesterday in my audio blog.com light valuations in a Great Depression era and every aspect of translation has fallen apart oh and by the way we're at war with Syria and probably going to be in war with North Korea soon and and look all the things that are going on in Europe right now Abbey Greece and France in Italy I mean come on people in France if you vote for this little pipsqueak watch I of loser 39 year old and has anyone seen to the story of his wife all right oh my god it's a great story I mean that is worthy of a movie I mean he'd seduced her when he was like 15 and she was 30-something 14:40 was she 40 with kids old and married oh my god looking I know in France people don't care about those kind of things but they should care what it's your president okay yeah as long as the French can get a good bottle of Bordeaux and some good cheese and some good food they really couldn't care less what else is going on in the world I mean that's that's what I've seen I mean that's a little extreme I know but the French are into the sensual into the pleasures of life and they don't seem to care about much more at this point in time well but they do care because it was the first time that he two main parties didn't get to the lamb it would be like we had an election here and neither a Democrat or Republican was in the running and here during gel in your area zombies if you try eaten in your dreams it would only be too good right but the point is people are angry I mean look I I put this chart today yeah because if they asked 18 to 34 year olds in Europe would you record you participate in an uprising against your government and in almost every pigs nation and France the numbers were astronomical it was 80% in Greece it was 30 plus percent France you know and if there's any more graphics to consider does writing about today I mean they're so bad that you know Germany and Italy and Greece are almost up to Japan's level in Japan you know I just read to Reuters writing about you know that you know the Japanese we talk about the four and a half trillion dollar fed balance sheet and how gargantuan it is right mm-hmm yes did you know that the Japanese balance sheet of the Bank of Japan I never really followed it because I just look at the trend of it exploding and it's always in yen ID numbers you're making calculations it's four and a half trillion dollars it was the medical population a quarter of our GDP and and the Bank of Japan balance sheet which is which has to which is only supported by literally a policy of not allowing interest rates to turn positive I mean the tenth day would say we will not look at the ten your interest rate go pub euro is four and a half trillion dollars it's the same as our country and you know and even aa mcc's is now four years in this month it was supposed to be two years and they're going stronger than ever and the ECB now I mean I can believe when I saw that Germany's average age is now as old as Japan and Greece and Italy so they're well they're going to go through all those same things you have basically hyper inflating central banks in Japan and in Europe and obviously you could see why there's this all at propaganda you know anti brexit anti-trump like things going on in Europe to prevent marine lepen from living because if she wins is no more ECB and all those nations starting with Germany will collapse into the abyss so yesterday it said Greece scared there's white smoke from the meetings Greece gets another bailout and I'm going how is this even possible like this is two years ago almost where they voted oxy and said we don't want a bailout and they've given them to bailout crunches since and as you speak you look at the numbers the Greek GDP is the worst that it's been since 2003 so it's been continually falling they haven't done any and I mean any of the austerity things that they were asked to do to get the funds and they're projecting their jets into GDP is 180 percent and even the IMF is projecting it's going to get to 300% in the next slide two decades I think it'll be sooner than that because they're you know the GDP is going to go up and eighty percent of the Greek people voted that they would participate in uprising against their government against you Alexis tsipras who came in to office under a premise I won't take any bailouts and there's a balance they're taking just enough money to get by for another few months but I mean something over there is going to give and something's going to give it France – it's the know the final degree that yes the France that they have a little social environment that seemingly inflates them but there is in chaos right now I mean their banking system is in trouble their unemployment is at a record high I mean a record I it's never been this high there's a reason why Francois Hollande's is leaving after one term isn't even running for presidency again at French were so happy then why is the president have been lowest all-time approval rating of any president in French history and guess who is Treasury secretary was it was a manual macron that's why I don't believe for a second that the people of audience who want to vote for this guy don't because a foot I said today Hillary Clinton's is Winston Churchill compared to this guy that's a loser hey you know I'd have Hillary Clinton's age did he guy he's the Justin Trudeau of France but his father wasn't the Prime Minister I know it's boring silver spoon but not to royalty it was just blunts it was born you get put in the raw child bank and the game a few million dollars for nothing he's done nothing except this crazy relationship with this with this his wife of what kids older than he does and and and and he was the Treasury secretary at age 37 of the most unsuccessful presidency in a collapsing economy so how am I to believe that the people of France want he does even have a program it says that his thing is I rely on magic in the spirit at the time to tide me it's like a beer 39 years old and you're a big failure in life what does he have a who's this fairy godmother to me is George Soros there IIIi just I don't know what's going to happen this weekend but then same odds would give me the Donald Trump to win this close to the election and it just makes no sense to me why anyone would want to vote for this guy France is not Frances probably of all the major West European nations and worst shake of all of them I'm tied with Italy I guess it's a tie right there yeah well Italy Greece you know Italy fenugreek is not a major name – bail is lien aging is major not as major as Italy Portugal obviously not some major but they're all going down the tubes together the French attitude is look as long as you have a good lunch and you get to take a nap afterwards life is good and yeah I know they're not happy and all that but they've got choices that they don't want to make just like everyone else and when you have a choice that you don't want to make what do you do you you go for the devil that you know but I agree that they they know the UK you can't go in for the brexit I know I mean they did something that was a trakone Ian thing which has had major ramifications I mean the London real estate market has had a dramatic decline since and they are you know it's only good it's going to be a lot worse before it gets any better over there as they start to actually break it and deal with the European Union so it is a scary choice that they took and the same thing goes with Donald Trump it was guaranteed that he wasn't going to win anyone we had me and you know it's no different overlook the fact that marine lepen is expected to get 40% of the vote and she's as fringe as you get I mean she makes Trump look mainstream all the trumps doing a really nice job in himself look me justified uh but I mean it's again it's a point that the fact that we even talking about the politics part is a sad fire because when you talk about the reasons why you own precious metals or the reasons why bitcoins getting an all-time high because of the monetary and financial collapse that's going on around the world as I watch and again you know I've said in the beginning of this call I will put my economic prediction track record I'll put it back to 20 years ago I remember I was calling for that crash in the.com I had no money at the time but whatever I did have I sold and I held it all the way and you know through the whole crash and then get back into markets until I put it all in precious metals in 2002 so back then I saw that I wouldn't buy a house going into the real estate crash because I knew it was coming and you know you look at what's going on in the world right now I saw all this coming and I'd written I written I probably forget forget the continent of content nor the body what I said I thought I would quantity than anyone I couldn't let thousand articles in the last and last five years like a thousand articles in all the podcast it's all documented that the things I've been talking about are happening and they're happening right now and and I'm telling everyone the global economy is added singular worst point that's ever been in our lifetimes unless you're like 100 years old and we're around for the depression but of course back then they had a gold standard so there was really not much debt in the world and it was a lot easier to get out of that and get back on your feet this time around the problem is going to be that we have to default on everything because of all the debt we and everyone else and whether it's due to hyperinflation which is what banks always choose or it's a regular default like the country that can't like like a Puerto Rico which doesn't have its own ability or Greece to print its own money and get itself out of these messes it's going to happen and it's been happened that's why you go back to the financial crisis the average the average currency is lost half its purchasing power cap some of the laws much more bricks you know these great bricks the goldman sachs i would rule the world you know south africa you know and watch other they've lost way more than 50% of purchasing power since a financial crisis and yet you know we're in this crazy I don't even want to call it I wrote yesterday about the biggest doubles ever because I'm reluctant to even call them bubbles because there's been until very very recently no public participation it's 100 percent the government printing money in buying markets for that tiny place the Japanese get a four and a half trillion dollar balance sheet in such a tiny economy the blind the stocks are buying the stocks and bonds of course of course the Fed is volume the bunch I've been writing about the dead-ringer algorithm of the Dow Jones propaganda average for five years every day the Dow bottoms at ten o'clock a.m. Eastern Standard Time which is when the Fed does its open market operations so who do you think's buying all the stocks it's not investors recently we've seen massive institutional outflows it's only recently that the retail has come in because of course they come in at the top I mean this it's a guarantee it's kind of like you know in the comments as long as the comments exist you had a record high speculative long position as you should have because of all it's going on the world and a record high commercial short position because that's the government with their deep pocket and not deep endless infinite pockets of printed money to make sure that you last year last year alone if paper trading on the convex and LB may increase fifty percent for gold and silver because of record demand of people who are too stupid to realize that if you want to own gold silver you buy actual gold and silver not not limitless amounts of future futures contracts that can be offset by shorts and even this year last year's increase a 50 percent paper has gone up dramatically which is why you have an all-time high silver short position without even having a visible crisis and of course what's going on now with the 13 days and role of all the clients is that all time expected of long position is being unwound because the cartel shorted shorter and shortened so eventually the buying power of the limited pockets on the long side runs out and then it's easy they have to keep selling margin call they have to beg the problem is what that creates is more physical shortages as the mining industry falls apart and and the and the smart money comes in and buys the physical and the cheap like in China the China we said I think I saw a doubling of the imports of gold into China in the first quarter from a year ago and you look at look at if that barracks earnings report the other day you know the stocks down 15% ssin because of it because you know the mining industry has said it for years go back three items to my article in early 2015 I wrote mining my early mining earnings guaranteed peak gold and I was right gold plunged gold now expected to fall can you imagine I mean I'm reading this morning about copper plunging of the massive copper bubble and I'm talking about how copper could have gone from 700 even stand out for 15 years okay cuz he did go turtle that way yeah at $700 goal okay I would venture to say that 80% of the global mining industry gold and silver would be shut off at a time where we already have this plunge in supply and I guarantee you if prices were that low it would be because the whole world is falling apart okay so there's no downside material dumps I'm not talking about like I voted up small percentages none I'll tell ya I mean this is the best buying opportunity for physical precious metals ever pen if you want to see what's going to happen a precious metal then just watch what's happened to Bitcoin because bitcoin is the nulling obviously progress the world but if it's a non manipul it's one of the only non manipulated markets out there yes governments try to jawbone it they create capital controls to make it more difficult but as I've been writing in my countless countless I wrote the future of money and wealth storage article the other day and my the Bitcoin of precious metals twin destroyed the Fiat regime I did my audio blog earlier this week and many others all the government's there like Don Quixote flailing at Bitcoin they just thought you can't decentralize so they don't know what to do it they don't know how to stop it and what they are what they're going to realize quickly as this cat as this local economic collapse explodes on on them is that people will never ever okay never ever trust a government of any kind anywhere to ever issue money again so gold standard that's ridiculous that means you have to trust governments that have destroyed every gold standard just like they've destroyed every feel regime by fraud they steal the gold and come bring a gold they don't they lie about the gold and then they just renege on it FDR said one day I'm taking to go back or mitts and says guess what France can't have any gold in fact knowing to have any gold so there's not going to be a gold standard there's not going to be any SDR Jim Rickards is absolutely we did the stupidest thing I've ever heard okay Jim Rickards the stupidest thing I've ever heard in my life is the SDR it will never happen there's not going to be a currency based on all the other crappy currencies of a bunch of currency country and central banks that have no credibility at all that people hate and by the way they all hate each other and by the way China isn't even going to be you think China could care less with the Western countries have the ones that have the gold and they probably have all the Bitcoin to buy that time so no there's no the future of money is going to be decentralized the future of wealth storage is not going to be in residential or even multifamily real estate it's certainly not going to be in stocks that are valued at calm levels or a Great Depression era and it's certainly not going to be in bonds that are trading at the lowest levels of ancients rates in 5000 years with the highest levels of inflation in the most government and all-around debt in the history of mankind multiplied by a thousand times from the second-highest time so again people it is all going to be hitting the fan soon there is absolutely no way that we escape this and frankly the French people you want to end this misery for the whole world you want to move on with your lives you want to help the world then don't vote for this little idiot you want to drive like what a brexit times 100 stake into the world's heart vote for marine lepen on sunday so we can move on and get to that next stage of the world where something actually actually good might happen for the 90

and some of the best financial videos and articles from the web and as usual it's totally free of charge so what are you waiting for click here and sign up today everyone this is Elijah Johnson with finance and liberty dot-com and with us today is Rob Kirby or Kirby analytics Rob thank you so much for joining us today pleasure to be with you later all right well I first like to discuss the situation with regard to North Korea now there it seems like there's growing tensions between the u.s. and North Korea on Sunday North Korea tested a missile that failed blowing up pretty much immediately after it launched and now Trump is saying North Korea has to behave China should intervene and if China doesn't the u.s. along with its allies will and also North Korea is saying that it will continue testing missiles on a weekly and monthly and yearly basis so what is your perspective with about the growing tensions with regard to the u.s. and North Korea well I don't necessarily view tensions between the u.s. and North Korea I don't necessarily view them in isolation because I think they're connected to the tensions between the US and Russia with regards to events that are have occurred in Syria and I look at I look at these things in a cumulative fashion and I look at the rising geopolitical tensions where we seem to have the potential for a very large-scale war heating up on the back of the stove while in my view on the front of the stove we have a deteriorating global financial situation and there's an old axiom regarding the globalists or regarding the monetary elites is when monetary systems fail they take us to war and it sure seems to me that our financial system could be in danger of failing literally at any time now and it may be triggered with the with the surprisingly tremendous result in in French elections it could be eat something that comes a little bit further down the road with a stuff in Italy or it could could be Istanbul even possibly in Germany and it seems to me that there the globalists or the the elitist seem to be keeping or want to have a potential for a very large conflict ready to bring up to a very hot hot state on a moment's notice so that's the way I view these things and in my view nothing happens by by accident there are no coincidences and it just seems to me that what what Trump has done in the last couple weeks at least in my view is everything that he campaigned against during his a surprise electoral run that's really interesting how you're saying that basically everything that Trump campaigned on it seems like these were reversing on a lot of his positions what specific positions is he doing that with well with regards to foreign interventions he ran on a platform where he he was very much against foreign interventions he was he seemed at least to me to be extremely well well on record saying that he he wanted to claim that the Chinese were currency manipulators so we've seen him say that now he's not going to do that he seemed very anti the Federal Reserve and Janet Yellen and specifically he seems he seems to maybe be positioning himself now to give her a pass and conceivably reen Amin aid her for another term as fed chairwoman and then this whole whole notion of foreign entanglement just to me it just it's got a bad odor to it and it just seems to me that Trump and his agenda may be maybe Trump has had a moment where he's you know really smelled coffee and real and realized that he's not going to be able to fulfill his agenda as he had so well articulated during campaign and you know I'm I look at it from the standpoint he's basically been able to get nobody of his choosing into key positions around him his current choice for national security adviser which is I guess it's now it's McMaster but I mean it was first that was Flynn he was gone quickly he allegedly then if my if my reading was correct he then offered it to two or three other people who turned him down and he ends up with McMaster who seems to me to be somewhat of a neocon whether he's a neocon and sheep's clothing or not I don't know but he seems to he seems to have run his campaign on an anti neocon platform and he seems to have an awful lot of neo-cons now around him in very key positions now previous sentence would have had you on the show you were saying that the election of Trump setback to globalism at least 50 years if not just completely ended the move towards globalism what is your current view it with you know Trump's changing views and also his inability to be an actual anti-establishment or non neocon conservative into his cabinet well I'll say this much he did deliver on the on the pre trade front where he killed the the trans-pacific partnership that that encouraged me and that alone has certainly set the let's just say the globalist agenda back in an end to and unto itself and we have we have we have elections coming up in Europe where where the where the globalist agenda could could be further damaged within Twitter without whatever Trump may do in the near future but but I will say I am conflicted with with what with what he's done regarding the foreigner the foreign entanglements it's it certainly sticks out and it bothers me and you know it's also a testament to the notion that the neo cons don't go away quietly and they're very very unwilling to admit defeat so let's let's just see and monitor closely how things progress over the next two or three weeks hopefully we don't end up in a much bigger and wider war what is your perspective I asked you about the North Korean situation what is your perspective on the situation between the US and Russia regarding Syria obviously the situation is not something to laugh at but I just find it a little bit amusing how the media was talking about just a few weeks ago this you know how Trump loved Russia and everything and now kind of the whole narrative is switched hell you know the US and Russia are in such bad relations right now what is the perspective on this whole situation between the US and Russia and the situation with Syria right now well there there are certain people in the alternative realm who believe that the Russian US appearance of not being on the same page in Syria may have some Machiavellian overtones to it in that this this may have been a brokered deal where where a trump could could appear to be standing up to Putin and Russia by launching these missiles but you know but do note that he gave apparently gave Putin the two-hour you know notice that these attacks were coming from what I've read and pictures I've seen it would appear that the airport that allegedly was damaged really doesn't seem to have much damage at all because aircraft were taking off from it and returning to it the very next day after the supposed brutal 59 Tomahawk missile strike on it but this whole this whole narrative about the about the chemical attack in Syria doesn't seem to really the pieces of it don't seem to really fit together very well and in saying that the attack was allegedly a sarin attack and we did see pictures and we were shown pictures by the mainstream media of dead babies and people handling supposed casualties of this sarin attack and it's it's well known by people who understand the nature of nerve agents that you would never you would never send in first responders without them having effectively hazmat suits on to handle the aftermath of the sarin gas attack and lo and behold the pictures show that the responders were wearing you know we're handling supposed sarin casualties and sarin victims with their bare hands and without protective covering so there's a lot of aspects of this whole issue that that don't really add up correctly so are you suggesting the attacks then were hoaxed or what are you suggesting here well I'm suggesting that the the way the victims were handled would be more indicative possibly of a chlorine attack some sort of a chlorine or makeshift chlorine bomb attack and and quite possibly not a sarin attack and and if this was really a chlorine attack yeah you also have to ask yourself and it's been brought up by people in the alternative press what exactly did Assad have to gain by conducting a gas attack on on his own people when he was clearly you know within arm's reach of defeating Isis in in that part of the world and he certainly had the upper hand so there's the question of you know who benefits you know all I'm saying is it's alleged that Assad was behind a gas attack hey they're saying it was a sarin attack and then the and the footprint that we've seen in the aftermath doesn't look like a sarin attack at all and then you have to also ask you know who benefits from it will certainly not Assad and and it seems to me that the only people that do benefit from it are the are the Isis people who happen to be the people or the whole Isis movement is a creation of the anglo-american you know military-industrial complex and that's whose arms and and supported the given them logistical support so there's some big questions there and there's also been reports which which have been alleged in the alternative press that this that this so-called gas attack may well have been conducted by a drone coming from a base in Jordan possibly where where Saudi and Mossad operatives are known to operate from so there's a bit of a dog's breakfast regarding this whole issue and it seems to me there was there was an extreme rush to lay blame when a little bit of investigation might have been in order surrounding this whole event so you were saying the Trump's reaction to this and this whole idea that the US and Russia are now you know on bad relations with each other you think that's all pretty much theater yeah I'm saying the possibility that it's theater it it resonates with me in that it may have been an effort on the part of Trump to try and get the left-leaning Democrats and and and globalist alike off his back and and to try and quell the narrative that he was a Russian operative by orchestrating something where he is shown to be hypothetically attacking Russia a Russian interest so yeah no it's not lost on me and would I put it past them to do it you know I don't know it would be an interesting chapter in the book the art of the deal wouldn't it definitely and I'd like to get back to something you were saying earlier how financial crises lead to war did you want to expand on that why in your opinion do financial crises lead to war oh well it's it's it's because it really amounts to deflecting blame when when people who are in control of the money who who have installed a very unstable monetary regime which fiat money is because money by its very design it's designed to fail and if you go back to the to the creator of our current Fiat monetary régime john maynard keynes when questioned back in the days of the Bretton Woods Agreement where we went on to basically a Fiat money standard albeit with a link to gold you know academics argued with Keynes and said your system by its very design is guaranteed to end in failure and disaster and to which Keynes responded or he's attributed to have responded so it doesn't really matter because in the long run were all dead anyway well you know that seems to be the the operative mantra of the globalists who have created these monetary flimsy monetary regimes in the past when their monetary regimes fail they take people to war so they can blame the failure of their of their monetary largesse they can blame it they can blame that they can blame it all on the war and they can absolve themselves of having had any handed and it's a way and it's also all the way in the current construct the the whole globalist movement at it's very core elijah is a huge NX based movement in saying that it's it's long been written by globalists that their belief is that the true the true sustainable population for a planet is something in the magnitude of 500 million people today were over seven billion people on the planet and you know and that means they want to effectively off six-and-a-half billion people to be true to their to their to their writings and their cause and it's my view anyway that the globalists are this whole idea of getting rid of people or preventing us from multiplying is is very likely the rationale behind GMO food you know and look and look at who the biggest supporters of GMO food are and look at who the biggest investors are in Monsanto who is the creator of so much of our GMO food or GMO seed and you know Bill Gates is a huge huge globalist that he's a major major investor in in Monsanto and you know there there have been there have been tests done and this is not this is not hype and this is not you know this is not fanciful thinking on my part but they conducted tests where they've taken taken rats and fed them GMO food for 90 days and they and they end up with a completely sterile animal you know how many generations is it going to take you know before the human population has been considered consuming all those GMO food this which which which in my view is a sterilant you know when are we going to become sterile and all I'm saying is this whole this whole observable inputs are consistent with with the narrative that the globalists are anti human and eugenics base and the idea of putting putting the world in a position where we could have a very very large-scale hot war would possibly with weapons of mass destruction being used in very large numbers would also seem to fit with their with their you know stated goals that they want the population of the planet reduced dramatically so you know from that standpoint I you know I I think it's I think we all have good reason to be concerned and worried yes globalist globalist initiated a lot of what we're seeing right now now I asked viewers to submit questions and this first viewers question is dealing with the topic of trance foreign policy so I thought we'd discuss this one first Tom Gilmore is wanting to know what is your opinion with regard to Trump's foreign policy is Trump playing his opposition publicly and privately negotiating peaceful resolutions with other seemingly adversarial world powers what is the geopolitical significance of North Korea's actions to begin with Trump's perceived or apparent foreign policy initiatives of the last two weeks are in direct contradiction to everything he ran on at least in my view the the minor exception to the that possibly from a Machiavellian perspective maybe maybe that a deal was brokered with Russia with regards to having the appearance of acting tough in Syria to get the Russian Russia phobes off his back who've been claiming that he is basically a Russian agent his actions in North Korea apply in the face at least in my view of everything he campaigned on where where he where he claimed that you know he was not going to be seeking foreign entanglements and you know I did this this really raises my eyebrows and makes me concerned I don't know how else to say it submit to me I think he's what I think he let his base down and conducting his actions and his and his stance towards North Korea no the same viewer has a follow-up question what about Trump's stance with respect to the Clintons because he was saying you know throughout the campaign that he was going to you know reopen the investigation into Clinton's private email server it seems like he's just completely ignored that and he said that the Clintons are good people so why are the Clintons walking free he asks oh I don't believe that that's the case at all the last words that I heard out of his mouth regarding Hillary Clinton what was that you know I think he's more or less thrown it into the lap of Jeff Sessions suggesting that you know if there's sufficient evidence then then I wash my hands with them I mean ultimately I don't think Trump wants to be seen as being the force behind taking down Hillary Clinton and the Clinton Foundation but I certainly don't think he's going to create any roadblocks to just that very thing happening all right moving on here this viewer asks is there a move by Russia and China to eliminate the petro dollar and what is your perspective on that I do think there is a move to have the dollars position as the world's reserve currency diminished if not eliminated on the part of Russia and China I think this is demonstrated in their heavy liquidation of US government securities and the reserve accounts and the fact that they are basically doing by ladder we'll trade deals with numerous countries that supply a strategic and critical commodities to them they're doing bilateral trade deals where they exclude the dollar from settlement and they conduct the trade on a bilateral basis with countries and and current currencies other than dollars and we've seen this for instance with with China and Iran doing doing oil deals where they're not using the dollar as the settlement currency and we're seeing this between heck for that reason we're seeing it between China the counterparties like China Brazil Russia Venezuela I believe South Korea just a house two countries are now doing trade without conducting the trade in dollars and you know historically dating back to the beginning of Bretton Woods anyway virtually all international commodity trades were settled in dollars and and increasingly they are not being jeffrey morris from england is wanting to know in what ways if any will brexit impact the London bullion market Association the paper gold versus physical trading in London compared to other precious metals trading hubs around the world what big impact is brexit going to have on the London bullion market Association that's that's a probably a pretty good question and I don't even know if I have the best answer for it other than to say eh I know that China has invested heavily if not taken out the LME the London metals exchange and with with China's influence continuing to grow in the precious metals space and in saying that I do so because China and Russia and India probably to a slightly lesser extent have been the have been the predominant buyers and creating the most demand physical precious metal as opposed to paper precious metal and you know as China continues to demand more and more physical metal the the LBMA becomes more and more suspect or possibility of having some sort of a cathartic or or cardiac event because the vast majority of what trades on the LBMA is paper contracts even though it's called the physical market the vast majority of its trade is still in unallocated paper paper contracts for precious metal and the amount the amount of paper trade that goes on in in London and the LBMA is is mind-blowing in its own right and you know as as China continues to demand more and more physical metal the likelihood that this paper charade continues diminishes it's somewhat in my view all right well the last question I was going to ask you was with regard to gold and silver manipulation because a lot of viewers were wanting to know you know when is the manipulation going to end I was going to ask you where the manipulation stands now and if you think there are any signs that it could be ending soon well to me the signposts to me the signposts that the financial system is in is in peril and and when I say the financial system being in peril a an inability and inability of the financial elites to quell physical demand for precious metal would signify basically the demise of our current financial edifice and the fact that we have a rising geopolitical backdrop with with the potential for hot war seeming to being warmed up to higher and higher heat on the back of the stove tells me we could be getting extremely close to a conceivable default by some of these paper charade markets where precious metal is promised in in blinding amounts I mean I can speak directly to it just by saying it seems to me currently the real Achilles or kryptonite metal to the to the elitists is probably silver and I look at the build it just in the Konex open interest in silver contracts the open interest on Comex alone is now well through a billion ounces of silver and you know so so we effectively have paper selling of more silver on one exchange namely the Comex in New York then gets mind go to the earth in a year you know there's no other commodity in the commodities spectrum where that would be allowed or tolerated because there there is commodities law that that prohibits excessive selling of things that don't exist and the fact the fact that the Comex and the regulator's that govern the Comex the CFTC the fact that they've allowed the open interest in silver to become well through a billion ounces you see people are selling people are selling silver that a does not exist and I would argue that will never exist and the this this gets into this gets into pretty heady territory where we're at some point somebody's going to stand up and say this is all a big charade so I look for I look for somewhere down the road we're going to see we're going to see defaults whether whether whether suppliers refuse to honor honor contracts referencing the LBMA price or whether whether the whether the whether the existing benchmarks that serve as guideposts as to where institutional amounts of metal trade place or trade hands I look for some sort of a calamity but it isn't it interesting we have we have this geopolitical backdrop eating up just just as the volumes going up on the possibility of a monetary calamity so I like it you know it sort of brings us back to where we started you know it's no coincidence that these things are happening simultaneously well Rob Kirby thank you so much for joining us today and sharing your insights before we let you go did you want to share with the viewers any last thoughts you had and where they can find you online well you can find me online too Kirby Analects calm and I might sound like a broken record but I think that anybody who is got their head screwed on right

 hi and welcome to the x-22 report spotlight today we have a returning guest Rob Kirby Rob runs the website Kirby analytics comm and I am very happy to have him back on the x22 report spotlight Rob welcome back to the spotlight pleasure to be with you again dear hey thanks for being here and there's a lot going on right now and I wanted to start off with your take on the economy last time we spoke was back in January before Trump was inaugurated since January up to this time what's your take on how the economy is doing has it gotten better has it gotten worse where are we right now I feel that the US economy has deteriorated significantly since we last spoke retail in my view as pretty much flatlined in America projected retail closures this year I was reading a couple weeks ago the anticipated closures teased everything from Sears to there was there was a host of retail a brim brick-and-mortar places that were due to be closing this year and we've also as evidence that the economy is slowing we've also seen the Fed back off from its bellicose chatter about rising rates or raising rates and it would seem to me at least and I know we have a Fed decision coming on interest rates and I think the consensus currently is that the Fed is expected to do nothing as in leave rates as they are and this this in my view is very consistent with the poor performance we've had we've had downward revisions in GDP the economy is not doing well plain and simple it just isn't doing well and there's there's plenty of economic that were data reporting to to back to back that claim up and so you know as a result I see very likely I'll be surprised if we see another rate rise this year and come fall I think the Fed might be posturing to lower rates again well so you think they're going to start lowering rates because they realize that the economy is not doing what it was supposed to be doing where they thought it was going to improve because other parts of the Fed I hear that they're expecting the second quarter to have I think around a 3% GDP rate I mean I don't know how they're going to get that I don't even know where they came up with this number but they were saying oh this is just a one-off thing and the second quarter it's going to be much much better I mean you believe them well Dave listen the biggest the biggest telltale probably and most most people who watch interest rates I believe would concur with this with his claim you know back when we spoke in January the 10-year bond I think was probably yielding a little north of 250 or was certainly around 250 and if you look at where it is today it's around 230 and it's been as low as 221 in the last week but anyway in a big picture sense what we've seen occur is the yield curve is flattening the two to ten-year spread as flattened dramatically and a flattening yield curve is usually a harbinger of a recession coming or weaker economic times in the offing so from that standpoint I would say that the bond market is concurring with the notion that the economy slowing on top of all the empirical digging so if we're heading into a recession there are some people out there saying that we're already in the recession do you think the Fed is going to have to increase stimulus once again yes I think it's I think it's just a matter of time before we see it and whether we get a whether we get a note right QE or whether we just see them back off on the Fed Funds rate it's funny there are many different ways you can put a beard on amazing you know you can do it by lowering reserve quirements for the banks you can do it by lowering the Fed Funds rate you can do it through open market operations in the bond market whether whether it's a you know like an operation twist or whether it's outright purchases a you know of government bonds and marketplace now you're in Canada correct yeah Toronto Canada in the news we've seen home Capital Group where they're having a huge amount of trouble and it looks like they've been bailed out and people are very nervous about this what is your take on what is going on with home Capital Group and the housing market in Toronto and Vancouver what do you see up there well she's home capital is something that I've been passively following for the last couple of years a just a just fact chief executive of home capital was it was a client of mine in the interbank market in the 1980s when he worked for deutsche bank and his name is Martin Reed and he was just recently let go of his position from as the CEO of home capital and my view of what of what I've been able to consume publicly regarding their their fate the the public message that's being fed to the public by the media is that they had issues two years ago where they had independent brokers who were feeding them mortgage applications and the concern was that the applicants were effectively doing or actively did liar loans so and for people who don't remember what liar loans are all about it's it's when people come in and say that they have an income of X when they really don't and they qualify for the mortgage on the basis of having an income of and they don't have it and then as a result or the you know the ultimate outcome of all this is that the mortgages don't perform and if the mortgages have been bundled and sold as a mortgage-backed security the people that are in possession of those mortgage back debt obligations you know could could could have failing grade paper when they thought that they were buying something that was you know let's just say credit worthy but let's just say this in relation to home capital to begin with home capital is an alternative lender which means that they're you know anybody who'd be buying bundled mortgages from home capital knows that they that they're coming from the alternative space and they they typically are not insured mortgages so the people buying this kind of a debt obligation would have would have a higher appetite for risk than somebody buying insured mortgages and the other thing that's occurred because it's been well reported in the Canadian media that the issue of brokers sending unqualified mortgage applications that issue was dealt with two years ago and and the issue was supposedly addressed and then when you factored into the equation that home capital does virtually all of its mortgages that are on their books are in the Greater Toronto Area and when you consider that the Toronto Area in the last two years has home prices across the board have appreciated probably somewhere in the neighborhood of 70 or 80 percent this this whole stated issue of what's giving them problems in my view should be non issues because what a what's occurred in the Toronto market in the last two years since they address the issues they had should should take away any problem there might have been with with the collateral being you know as in the value of the home not not covering the value of the mortgage there should be there should be absolutely no loans on their books where they where they'd be upside down on a mortgage so I don't really see what the issue is my true guess is that it's something that hasn't been stated and my true and I'm not saying that there hasn't been malfeasance I think there has been malfeasance very likely has been malfeasance at home capital but my my guess is the people that have actually been engaged in the malfeasance probably have not been accurately identified as yet and very likely the people who can been engaged in the malfeasance they're very likely looking looking for a patsy or a fall guy and with regards to the chap that I that I used to he used to be a client of mine who was the former CEO there I I when I knew him in the 1980s I would have I would have classified him as a person of extremely high regard extremely straight shooter and an extremely honest guy so the real story of what's going on at home capital I don't think we know the real story as yet and and how it falls out in in what a lot of people consider Toronto to be a bubbled real estate market we'll have to wait and see because I don't think the book is closed on this yet do you think once the bubble pops this is going to hit many of these type of companies well I mean home capital is really something unto itself in the in the portion of the market that they've curved out but that being said they are a large provider of liquidity in the alternative space so people that did not qualify for bank financing and people who do not qualify for an insured mortgage these are these are the kind of people that that may be that may be somewhat at the margin but you know these people added home capital added liquidity to the to the financing of possibilities in you know for real estate in the Greater Toronto Area a significant source of liquidity and with that being taken off the board it you know it's if there's going to be less there's going to be less mortgage available to people who are marginal you know qualifiers to on a home and there's also the issue of their outstanding book if the company is forced into a liquidation who's going to pick up the pieces because the piece is the you know the type of mortgages and the type of credits that that home capital was a lender to these are not these are not the kind of credits that the banks are trying to solicit so it'll be very interesting to see who who would be willing to buy the the pieces of home capital if they're forced into a liquidation and I suspect we're going to find that out very soon because they have retained I know Royal Bank and the Bank of Montreal to explore strategic alternatives for the company so it looks to me like they might be trying to position the entity for for a sale or a breakup but but exactly where that goes I think we're going to have to wait to see what kind of due diligence BMO and n RBC when they complete what the recommendations might be now in the beginning you said that the bond yield they're signaling a recession and I wanted to get your take on how this would affect the derivative market if we're heading into a recession where we might see the stock market come down where we might see things you know start to happen within the economy how would this affect then the derivative market well you know Dave it's interesting with with regards to the derivative market what's been going on really in the past 18 months as we've seen a significant reduction in the aggregate of outstanding derivatives held by the big of big American financial institutions as reported by the office of the controller of the currency in their quarterly derivatives report the latest numbers we have are from queue for 2016 and at December 31 the value of outstanding aggregates held by the American financial holding companies totaled 222 trillion which was a decrease from 243 trillion in outstanding aggregates at q3 of 2016 and the the amounts outstanding of of the American bank holding companies I believe had a high-water mark about two and a half years ago over 300 trillion and we're now down to 222 so the amount of outstanding derivatives have been dropping and have been dropping at a very very aggressive rate so I mean to get back to your pure question specifically what does what does rising or falling rates have to do with with derivatives or what kind of systemic or what kind of feedback does does that create when in my and what I can say is in my experience its volatility in interest rates that cause or wreak havoc in large derivatives books and the reason for that is because the banks which try to play hedge books their hedges are dynamic and when when there's extreme volatility in interest raids the the the value of the hedges can can be altered dramatically in a very dynamic environment or when when rates are really whipping around which which is why we've seen very very very gentle movements and rates because the powers that be understand that extreme volatility in interest rates can cause can cause banks to get wrong-footed with the hedges in their derivatives books so you know I guess really the reality is we haven't seen interest rates move dramatically and not at least in my view to cause any major commotion in the books of the big banks and should that occur because I believe it did occur in 2000 and in the 2008 timeframe when they were dropping rates you know plunging rates short-term rates in particular from like 300 basis points down to zero I do believe in that timeframe institutions like Morgan Stanley possibly were wrong foot it might have been insolvent but just bear in mind that the US has this funny little law on the books since 1934 and that law allows a designate of the President of the United States to excuse a company from publishing accurate financial it's actual financial state which means that if a company were given a waiver they could keep two sets of books and they could falsely report that everything is well affect effectively they could have accounting you know accounting suspended so if you have a bank that's technically insolvent but they've been granted a waiver where they don't have to declare it and and and by virtue of this law it's it's legal for them to why how would we know and this this thing this law that's been on the books since 1934 there's absolutely no doubt in my mind that this this waiver was in use during the financial crisis in 2008 and I completely believe that Morgan Stanley was was operating under that and Goldman Sachs might very well have been – so that's that's what my view is the law is on the books there was reporting about that law in a 2006 time frame that the both both about the authority being transferred from the president's office to be to the chief intelligences are of the designate of the of the president who at the time was John Negroponte II and the fact that they were transferring the ability to enact this law tells me that it was very likely in use because you don't dust something off from 1934 and make a public pronouncement about it unless unless you're either using it or contemplating using it and I believe it was in use I mean if they're using this law how would anyone ever know how any of the banks are doing if they are using this it would be impossible it's a what it amounts to it really becomes a real shell game and I think we've I think we've been in in positions where shell games have been being played and and you know to what extent you know the shell games will continue in the future I don't know and I'm not necessarily saying at all that I think the shell game is being played right now but I do believe it was certainly being played in the 2008 conquering now I just wanted to go back for a moment to the Fed and their interest rates and with derivatives if the Fed decides not to raise the interest rates and I remember they've been telling us that the economy has been improving you know since Obama handed off this incredible economy to trump and they they were going to raise interest rates you know multiple times during this year and if they all of a sudden say that the economy is not doing as well as it was before and they start lowering the interest rates I mean what effect is this going to have on the stock market on derivatives and if we're heading into a recession is this going to be like a trigger where people are going to settle wait a minute all of a sudden we're not doing well is there something wrong is this economy not doing what you said it was doing all you know all the way going back to 2016 and 15 what's changed I mean well what's changed is that the recovery that's been been being reported certainly hasn't been as robust as what's been reported and there's a lot of people who argue that we very likely never really did come out of the deep recession from the financial crisis I mean things might have improved at the margin but Dave we do know for a fact because we can follow the the fine workings of forensic accounting professionals like John Williams at shadow STATCOM who reverse engineers data that the that the elites put out and you know he tells us he tells us that if we measure inflation today the same way it was measured in 1980 we would very likely have double-digit inflation or close to it right now he tells us that if we measured the unemployment rate today the same way it was measured in 1980 we would very likely have something just north of 20 percent unemployment rate and you know through through the through the doctoring of numbers and through the changing the definitions of what of what you know being employed is or what being unemployed is you can you can make a you can make a situation where you know by the old methodology you'd have a 22 percent unemployment rate but it by by the new method of what I'm measuring what unemployment means you can you can say that you have 5% or full employment you know so so this this is the way numbers have been and methodologies have been changed through the years to to basically make the economic picture look better than it is and metaphorically the best way to explain this Dave is if if you stand on the 20-yard line and you put things in football terms most people in America understand it pretty well but if you if you put somebody on the 20-yard line and tell them to kick a field goal a lot of people would have no trouble kicking a 20-yard field goal but if we leave you standing on the 20 but move the goalposts back 30 yards and we still say you're kicking a 20 yard field goal you really aren't you know the reality is if you're standing on the 20 you know you can tell people that you're kicking from the 20 but what you're really doing is you're kicking a 50 yard field goal if the goal posts have been moved back 30 yards well in the economic reporting parlance they've moved the goalposts back 30 yards and they keep telling us that we're you know you're on the 20 all you have to do is kick a short field goal well the 20 yard field goal of today if you in 1980 terms it's a 50 yard field goal because they move the goalposts this is why this is why our employment picture looks much better than it is and this is why inflation is reported much lower than it really is because they've moved the goalposts so you know where does that leave us it leaves us with a lot of people bewildered and confused and thinking it's their fault that they're not measuring up because they've got officialdom telling them that you know we're at or near full employment and if there's no inflation except it's tougher it's tougher to pay your bills every month because things that you need and things that you have to pay money for keep going up in price but you know with the way they measure in place if things go up in price they don't count them they substitute them for things that didn't go up in price anyway this this is the whole nature of economic reporting and officialdom yeah I agree with you I mean there's a lot of people that write in to me telling me that how things have completely changed in their lives where they can't find a job they were laid off and it's very hard for them to make ends meet today and of course you know the government and the central bank is telling us how great everything is and they just throw out these statistical numbers which kind of really mean nothing to any of us anymore because if they're manipulated who cares about them and yeah and but yeah and Dave what this has led to is the awakening of many people this is why so many people have lost trust in mainstream media this is this is why so much of the alternative media has has grown in popularity and grown in in terms of numbers of who's listening this is why you've seen the rise of the likes of the bright Bart's the daily callers the Infowars Alex Jones the these places are gaining the the ears and the eyeballs of people and the cliques because they don't report information to us in accordance with what officialdom is putting out they give us they give us a they apply a filter to the to the mainstream claptrap and and give it to us in layman's terms and they you know they call out they call out the lies that the mainstream media who's in bed with the with the politicos and and and the financial controllers you know they they they're in opposition to who what canned mainstream pablum information is so this this is the world we're living in of it but this is why people are waking up and and and the rise and the the awakened Asst of people in the world and the growing number of people who are awake in my view anyway probably means that the world as we've known it is probably you know not going to be viable on a go-forward basis because people have had people are sick of being lied to and you know Dave people under people understand and intuitively know when they're being sold a bill of goods and we've all been being sold a bill of goods for a very long time I wanted Rob I wanted to get your take on what Trump said and he just blurted it out he came out with it where he says that we should break up the big banks what is your take on why he just all of a sudden said that because the it's you know it's the big banks it's the big banks that have that it's the big banks that have the derivative books that have made a mockery of price discovery of strategic things in our world to give you a for instance I told you just recently that at q4 2016 the aggregate outstanding derivatives for the American banking system the American bank holding companies was 222 trillion I believe that was the number and that 222 trillion let's just say probably 220 of the 222 is held by five institutions and those five institutions are JP Morgan Bank of America Citibank Goldman Sachs and Morgan Stanley and these these banks through their derivatives books the lion's share of this 222 trillion is an interest rate contracts then there's then there's another big portion of it that's in foreign exchange contracts and another big portion that would be in commodity contracts or futures and what these banks do effectively by participating in in in the interest rate derivatives markets and in the commodities markets they effectively fix prices in the case of precious metals they suppress the price of precious metals because suppressing the price of precious metals makes the American dollar look relatively better than it would a rising a quickly rising price of precious metal is that is a failing grade to monetary authorities to central banking and central banking is is put in place to perpetuate the fiat currency of the nation that it that it presides over and if you have if you have precious metals prices rising it diminishes people's faith and willingness to hold the sovereign currency of the land this is why precious metals have to be suppressed energy contracts whether it's natural gas or crude oil their prices are rigged in accordance with geopolitical concerns and interests energy prices have been used in the past to crash the fortunes of countries that you know maybe maybe don't see eye to eye with America in certain and certain respects and then you have interest rate contracts that are used to effectively it's one thing to say you're going to lower the Fed Funds rate to zero but to actually get people to buy a three-month t-bill yielding five basis points is another trick altogether and that's that's accomplished by using generous applications of short-dated interest rate derivatives contracts called FR a's where where the Treasury can engage the banks to showing the bank's risk-free profits if they engage in these contracts but the but the upshot of it is they they have to buy bonds at ever decreasing yields to lock in risk-free profit and effectively by doing this it's the Treasury slash Fed complex that can make the bank's captive buyers of US government debt at at rates at any rate they wish and and the real arbiter of where interest rates are and where they go in my view anyway it's the US Treasury acting in conjunction with their broker the the New York Fed trading desk who disseminates their orders to these big behemoth banks that have that have in aggregate they have derivatives books numbering anywhere from forty to fifty three or four trillion dollars I believe Citibank is the biggest one at the moment around fifty two trillion in notional so what you're saying from what I'm hearing is that by doing this he would be breaking the banking system apart and maybe stopping the manipulation on precious metals he would wreak havoc in the derivative market and it would make it very well let's put it this way Dave the the the explosion in bank held derivatives the explosion occurred in the immediate aftermath of the repeal of glass-steagall by Robert Rubin in nineteen ninety eight and what what glass-steagall did is it separated investment banking from deposit taking banking and what I mean back back in the day back in the day glass-steagall was enacted because the politicos in America didn't didn't want a big deposit taking banks risking the risking the deposits of their depositors in in the capital markets by making by making leveraged bet on interest rates commodities or whatever and by separating traditional banking from Investment Banking and speculation it was it was it was felt that glass-steagall protected the depositors you know from from rampant speculation but the repeal of the glass-steagall in 1998 meant that the deposit-taking institutions were were now able to engage in much riskier Treasury operations than they previously could so what this basically did was allowed Citibank and and an Bank of America the big deposit-taking institutions to – basically it opened the spigots and allowed them to take massive amounts of risk in in these derivatives contracts and and it's interesting that when Trump made his comments about breaking up the banks he was answering a direct line of questioning regarding glass-steagall where I believe a reporter asked him you know I think the question was something to the effect that are you do you think it was a prudent thing to do to have eliminated the glass-steagall Act and I think he was asking him if he might favor a return of the glass-steagall Act and it was it was it was – that line of questioning that Trump made that made the offhand comment that he might be in favor of breaking up the banks so more than anything I think he was giving a hat tip Trump to me there was probably giving a hat tip to the notion that he knows that the banks are heavy have heavy hands in the markets and he knows that the banks are being are being utilized as captive players – let's just say create create premeditated outcomes kro level in markets and I don't think he's against that all right sorry I believe Trump is against that so Rob where do you think this is all headed right now I mean can the economy just continually chug along the way it's been for the last couple of years or do you think we're coming up to a point where the economy is pretty much done I believe that the u.s. dollar is is in extreme danger of losing its grasp as the world's reserve currency because we we've heard utterances from from the other side of the world whether it's Chinese whether it's Russian these people are not in favor of having the dollar continued as the world's reserve currency as the world's trade settlement currency and and direct actions have been being taken on the part of Russia and China and others making bilateral trade agreements with countries in their in their sphere of influence where the dollar is being caught out of you know bilateral trade like for instance you know deals where where Iran sells oil to China and they settle in Chinese yuan rather than the traditional way the an oil trade would have been done would be for Iran to sell oil to China in dollars China would have to buy dollars to to settle the oil trade and that's been bypassed now between those two parties where they just they just do the deal they do the deal in the Chinese currency and and the dollars bypass so this this creates less demand for dollars and America has printed an awful lot of dollars and what this means on a go-forward basis is the likes of China Russia Saudi Arabia need less dollars because things in the world aren't being transacted in dollars as they were in the past and this is why you've seen countries like China like Japan like Saudi Arabia like Russia decrease their holdings of US government securities because the world is changing into a you know we we are growing into a into a situation where the world is just going to need fewer dollars and America continues to print more dollars because you know America is still running annual deficits of a trillion plus a year and you know the likes the historical biggest creditors of America being Japan China and Saudi Arabia they have been reducing their holdings of US government debt and the US government debt is not shrinking the US government debts getting bigger and my real question Dave and I think we've talked about this in the past and it's a question I continue to ask and nobody gives me a good answer who's buying the debt and my belief it's the US Treasury that's been buying the US debt and they've been memory holing it and they're and they're buying that debt through the exchange Stabilization Fund which is a dark pool of extreme wealth likely many many trillions of dollars worth of off-book wealth and you know it's there the real question Dave how long can you keep fooling people how long can you keep playing a shell game with people that they realized that that you're just playing a shell game and they take their pail and shovel and they go home and they say we don't want to play at all and how long does it become where countries realize that America has created way more money than they'll even admit to and they say you know what you know you you think you think that we work for a living to sell you goods that you pay for in US dollars that you don't have to work for and that's that's the kind of moment we're coming to and and that's that's the kind of thinking and the awakened Asst that will dethrone the dollar as the world's reserve currency because the world is waking up because the evidence that these things have occurred is becoming quite blindingly overwhelming Robb's thank you very much for being on the x-22 report spotlight once again how can people see your work you can find me on the web at kirby analytics comm rob once again thank you very much pleasure being with you Dave [Music] [Music] you