“I can tell you how to make $100 million right now,” RT’s Max Keiser told me over coffee at Bar Italia in London’s Soho.
“Join Al-Qaeda?” I asked.
“No, said Max firmly. “All you have to do is you call up someone like Jamie Dimon over at JP Morgan or call Goldman Sachs and say I want to open a Prime Brokerage Hedge Fund account and I need to borrow $100 million and then you sell short gold futures contracts in the open market along with all the other players who simultaneously sell gold every day at the same time.
“If you watch the chart of gold every day, at around 8.00am UK time, gold drops by about 3% or 4% – almost every single day at the exact same time.
“You do this repeatedly for a number of weeks. You bank your $100 million in profit. You pay back the loan to JP Morgan or Goldman Sachs. And you walk away. There’s nothing hard about it.”
“Unless,” I suggested, “it moves in the other direction.”
“Well,” said Max, “since they’re all colluding together and they do it together and there’s no law against it – or, if there is any law against it they don’t enforce the law – the risk is almost zero. Every day traders working together – colluding – slam the price of gold for a quick profit using money they borrow at 0% interest – all gains are 100% cost free – and since the government bails out any losing positions, these gains are also risk free.
“This is a well-documented occurrence in the gold and silver markets that many have tried to get regulators to stop – but it’s too profitable for the insiders who have control of the regulators.”
“What’s that name you have for bankers?” I asked. “It’s not wankers, it’s…”
“Terrorists?” suggested Max.
“Banksters,” I remembered. “Banksters – a combination of bankers and gangsters.”
“They’re also terrorists,” said Max. “(A major British bank) just admitted they laundered money for Hezbollah. According to David Cameron, Hezbollah is on the list of terrorist organisations.
“I mean, a lot of people don’t think Hezbollah is a terrorist organisation but according to Israel, according to the EU, according to the British administration, Hezbollah are terrorists and (a major British bank) just said Yeah, we do launder money for them. We will pay a little fine. That makes (a major British bank) financial terrorists. There’s no equivocation here. There’s no hyperbole. They are financial terrorists and they have no way to counter-argue what I just stated. If there was, they would.”
“Well, they would probably sue me for libel,” I said.
“But I get an American exception,” Max told me. “Under the Speech Act of 2010, no British person can sue me for libel. Any libel suit against me where you’re seeking damages would have to go through and comply with American free speech law. You’d have to persuade an American court I was violating free speech according to American law.”
“You can say I fuck sheep and I can’t sue you?” I asked.
“I can say you fuck sheep all day long,” said Max. “You can sue me in the UK, but you’d have to go to America and prove the libel to get at my American assets.”
“I can only imagine what those are,” I said.