[KR 333] Keiser Report: Fat Gorillas vs Middle-Class Monkeys – UPDATED WITH PARTIAL TRANSCRIPT

We discuss the sound of one monkey-hand clapping as Alan Greenspan finger-painted the markets and grand heists ensued. In the second half of the show, Max Keiser talks to a former senior corporate and banking executive, David Smith, about Switzerland wearing concrete boots as it tries to maintain a currency peg to the euro with its only exit strategy being the Iraq one — that is, they have no plan at all. They also discuss how HSBC might have missed the 7,000 suitcases of cash that would have been needed to launder $7 billion in drug cartel money.


KEISER: We’ve got somebody in the studio today – David Smith of GenevaBusinessInsider.blogspot.com. David has a law degree and is a qualified chartered accountant and has worked as a senior executive for major Swiss and US multinationals and global banks. David welcome to the Keiser Report.

SMITH: Pleasure to be in Paris and with you today.

KEISER: Alright David Smith, let’s talk about Switzerland, the legendary safe haven went bonkers a year ago and it pegged its good as gold currency – the Swiss Franc – to the euro. Tell us about that act of madness, or maybe it isn’t madness – why did they do it?

SMITH: Well, the basic reason for doing it is because the main part of the Swiss economy, which is 85% of it, apart from the banks, was suffering very much from having a strong exchange rate. The difficulties are for the tourist industry, the exportation of machine and capital goods and also if you think about it, for the companies in Switzerland with high exchange rates, their reported profits they have coming into Switzerland go down in Swiss francs, so the management bonuses go down.

KEISER: Now how much does it cost per month to maintain this peg?

SMITH: Well it started off at a modest 10-15 billion per month about a year ago, but this last quarter, as this crisis got ever deeper, the amounts are running between 30 and 50 billion. Now there we’re talking about amounts that exceed the gross national product of the country for the same period.

KEISER: Now the Swiss National Bank, they’ve been sellers of gold. They’re pegging the currency to the euro, they’re spending more than the GDP of the country every month to maintain this peg – presumably they have some exit strategy?

SMITH: I think they have something akin to the Iraq strategy – they had an entrance strategy and they thought they’d think about the exit strategy afterwards. But the reality now is that they’re hopelessly trapped. They’re really completely hostage to fortune. What is going to save them eventually is if the weak countries leave the euro and Germany becomes part of a stronger euro. At which point, the euro becomes a stronger currency. But if you imagine the opposite happening, where Germany decides to leave the euro and leave all these clowns in Club Med behind, the euros going to crash again and the only country that’s going to dive down with them, with the concrete boots on their feet, is Switzerland. They have more or less played heads or tails with their currency. And if you lose, you lose everything.

KEISER: Now David I wanted to have you in today because so much has been talked about Switzerland and the breaking up of the ability for Swiss banks to hide money, launder money, etc. But there hasn’t really been any diminishment in the global money laundering business, in fact, it’s gone up sharply. It’s just not happening in Switzerland. So what we see here is a bit of turf battle, we have the money laundering which used to be in Switzerland has moved to other locations, you can talk about that. And is Switzerland suffering as a result of this and, if so, how badly?

SMITH: That’s a very big question, I’ll try to take the first part. If you look at Switzerland, Switzerland has been, if you like, in the spotlight of money laundering ever since the James Bond films began and even before. But what people do not understand is that Switzerland has a pretty good regulatory environment, where there is a culture of knowing who your client is, where the money comes from and checking when the money comes into the system, its origins. And having a thorough follow up. So Switzerland is, in fact, being vilified and targeted in a very much bigger game. And it’s a very convenient political target because people in the street can identify with it. I would say at the moment, there have been very few major scandals in Switzerland in the last ten years because of this change. If you start looking at the other centres, people who have had shady money, have been moving it out of Switzerland. They’ve moved it to branches of the same banks very often, in Singapore, in Miami and other destinations that are more and more exotic and more and more risk that they might lose their money through seizure or internal political strife. If you take then the very major countries, you know like America and the UK, these are nice places to go because there is, on paper, a very good regulatory environment. But in reality, it’s completely dysfunctional. And this, I believe, is quite deliberate. There is no serious attempt to tighten things up. And if I were trying to launder money or have black accounts these days, I would probably try to do it in the US or perhaps London. In places like Nevada or have companies run out of Delaware where you can open accounts without even presenting a passport.

KEISER: Right I wanted to ask you about that because in the US, we had a scandal with Wachovia Bank, now part of Wells Fargo, where they were laundering $400 billion in Mexican drug money . . .


KEISER: . . . and they paid a small civil fine. Really a slap on the wrist, nothing consequential. But is it geographically important? The fact that you’ve got Mexico and the US that makes the US a prime money laundering place versus Switzerland? In other words, just the physical act of moving cash around, is that a factor?

SMITH: I think it must be. If you take Mexico, there’s a pretty interesting statistic that about 30,000 people die there every year and there’s about $30 billion of drug business. And there is no serious attempt by the current American administration to close the borders and put an end to it. And there are never ending scandals coming out of that as well, if you look what’s going on with the Attorney General at the moment.

So if you take money laundering, HSBC has been in the press recently for aiding and abetting money laundering in Mexico and moving that money into America. They were talking about an amount of $7 billion. Now I can tell you having been a little bit involved in my very early days of carrying suitcases for people, when it was legal, that to transport $7 billion, you’d need 7000 suitcases. So I’m just trying to imagine how a bank teller or a bank manager would fail to notice these 7000 people coming in with different briefcases over a period of a year. It is obviously not how it’s been done.

Then you have to say well if you are trying to get money into a bank, it’s much more difficult than to get it out. Because if you go into a bank with a machine gun and a few bombs and say ‘hand the money over,’ you’re in and out in seconds. But if you actually want the guy to look after your money and put it in a safe, you come in with a smart suit, a smart tie like you have on today and you need the cooperation.

Now the other question is how in banks where there are a strong regulatory environment, and banks do have a strong regulatory environment, most of them, can you actually get the money in. And the answer is because there are a few people who are in a position to over ride the basic rules of the bank and the basic controls of the bank to ensure that these things happen. So that is a cause.

KEISER: Seven billion requiring seven thousand suitcases, so just the quick math here, that would be about a million per suitcase?

SMITH: Approximately, a normal attache case with $100 dollar bills . . .

KEISER: Hundred dollar bills, so you need 10,000 hundred dollar bills? Per suitcase? Roughly speaking? And a line of 7000 guys?

SMITH: And a line of 7000 guys, you would think there was a soup kitchen that had been opened [laughs] at HSBC.

61 comments on “[KR 333] Keiser Report: Fat Gorillas vs Middle-Class Monkeys – UPDATED WITH PARTIAL TRANSCRIPT
  1. Al Kyder says:

    [KR 333] Keiser Report: Fat Gorillas vs Middle-Class Monkeys > LOLZ 🙂

  2. Youri Carma says:

    Apes win (for the time being) http://www.youtube.com/watch?v=GhxqIITtTtU

  3. alanborky says:

    Stacy reading the Tom Woods piece I notice he makes a particular point of referring to you but studiously avoids stating your name implying you’re just some helper monkey.

    This suggests to me two things:

    1. He imagines he’s got the beating of Max.
    2. You’re the one who genuinely scares the crap out of him.

  4. Youri Carma says:

    Good clear guest, very informative.

  5. Youri Carma says:



    1. He can’t win on arguments so has to get physical with Max.
    2. He knows he can’t win that fight either.

  6. flicks says:

    James Cann in Michael Manns first film: Thief

    After being rail roaded Frank torches his home and business (used as a front for his work as a jewel thief) and goes after his fence’s killer: Leo (a higher level fence), played by Robert Prosky (at the time a real cop)


    How it’s gonna be: a litigation shoot out amongst criminals. Look in the mirror; there’s a money monkey.

  7. What-me-worry? says:

    Cutting edge show as usual.
    “The Discovery Invest Leadership Summit has leadership as its theme. Morality and leadership are indivisible”, the statement added.
    “In this context, it would be inappropriate and untenable for the Archbishop [Desmond Tutu] to share a platform with Mr Blair”, it said.

  8. stacyherbert says:

    @alanborky – yep, I think the second is true

  9. stacyherbert says:

    LOL, @williambanzai7 with one of his best ever: PRAXEOLOGY – http://www.flickr.com/photos/expd/7885648978/

  10. Youri Carma says:

    Strange what’s in a name?

    Rand Paul – Paul Ryan – Ayn Rand

    Did Ron Paul name his son after Ayn Rand last name?

  11. Geek Boy says:

    I’m back in Switzerland, traveling – Zurich at the moment – so I thoroughly enjoyed today’s show! Good job y’all

  12. stacyherbert says:

    @Youri Carma – I’ve heard that Ron Paul didn’t name Rand after Ayn Rand

  13. blindman says:

    The Gary Null Show – Rocky Anderson – 08/24/12
    Read more: http://prn.fm/2012/08/24/gary-null-show-rocky-anderson-082412/#ixzz24w5zS03U
    Under Creative Commons License: Attribution

  14. stacyherbert says:

    @Geek Boy – hey there! Glad you liked it; hope you’re enjoying your travels! We’ll have to have a beer again next time we’re all in Dublin at the same time

  15. Geek Boy says:

    No worries – Gussy’s buying! 😀 Mind yerselves

  16. daddy warbucks says:

    … marching the world into ‘their’ NWO. The Rothschild/Rockefeller/Queenie/Buffett/Gates elites have no intention to fix anything they need debt fueled collapse to further their plan. Greece has already allowed Goldman Sachs technocrat pirate bankers to rule them along with giving up their country’s sovereignty and properties. Anything coming out of Greece is all just a dog and pony show for the rest of Europe to continue the illusion that Greeks still have decision making ability.

    Next are Spain, Portugal, Italy, France, etc. your all going to give up your country’s sovereignty, property, law making ability and be regulated by the “supranational sovereignty of an intellectual elite and world bankers” (and under the thumb of their NWO regulatory and enforcement tools: the UN and NATO).

  17. Juan Moment says:

    Thanx for the Gary Null link blindman. Introduced me to a most interesting show.

    Re this KR: What should the Swiss CB have done when the Swissie went climbing the Matterhorn, causing their export and tourism industries to slumb?

  18. James D says:

    To be fair to the poor ‘señora’ who did that impromptu “restoration” of the Christ fresco – she has created a sensational tourist boom to the local economy of an otherwise almost never visited village chapel!
    She has created and added real value! Most people want to keep it the way it is now and there is a petition with over 11,000 signatures to maintain the hairy monkey version!
    Wealth creation at the stroke of a brush!
    We need more innovators like her!
    God Bless her!

  19. sovereigntea says:

    Meet Deputy Assistant ATF Director William McMahon

    Washington Post

    In an unusual arrangement, a senior official of the Bureau of Alcohol, Tobacco, Firearms and Explosives involved in the controversial gun operation Fast and Furious is receiving his government salary while working full time for the investment bank J.P. Morgan, according to two Republican lawmakers.

    In a letter Tuesday to B. Todd Jones, the acting ATF director, Rep. Darrell Issa (R-Calif.) and Sen. Charles E. Grassley (R-Iowa) said that Deputy Assistant ATF Director William McMahon,who oversaw the agency’s Western region during the Fast and Furious operation, has been receiving two salaries simultaneously.

  20. alanborky says:

    Stacy it’s just occurred to me why Tom Woods might be frightened by you.

    He’s laid down this challenge to Max to provide him with the evidence for his claims but if there’s anyone out there who could track down such evidence it’s you!

  21. Vonda Bra says:


    CNN’s Wolf Blitzer Interviews Rand: “Republican Officials Clearly Snubbed Ron Paul.”

    It seems that CNN’s Wolf Blitzer is more annoyed about RNC’s behavior toward Ron Paul than Rand Paul.

  22. YoLithos says:

    Monkey’s Paw Economics. (Edgar Allan Poe – V2k12). Fed Cthulunomis Cult, er, cultists? Bring on the Sanity Tokens!

  23. MirrorMirror says:


    On a far more serious note :

    Prominent scientists sign declaration that animals have conscious awareness, just like us


    As if we didn’t know !

    Recommended reading :
    The Lives of Animals – J. M. Coetzee


  24. Astraea Shaw says:

    currency which has been operating in the heart of Europe for 80 years?!

    Seems worth investigating.http://www.zengardner.com/financial-activism-how-to-defeat-the-money-power/

  25. I_Cant_Believe_Its_Just_a_Dip says:

    On a far less serious note, if yer gonna party hard make sure you invite the monkeys!
    was he short of friends to invite?
    @MM, recommended reading ‘The Science Delusion’-Sheldrake. It may shift your conciousness on science (or it may not lol)

  26. Paolo7219 says:

    Alan Greenspan, Mr. Dynamite, is a silk-suited THIEF. A morally and ethically bankrupt sociopath. Greenspan’s resume proves this: his close association with Charles Keating of the S&L scandal in the 80’s. His equally close association with Johm Merriweather and the rest of the Long Term Capital Management crew in the 90’s. His further association with Robert Rubin, Hank Paulson, Larry Summers and the rest in the 2000’s. Alan Greenspan alleged adherence to Ayn Rand never existed–though he mouthed loyalty to her principles many times, it was just a thinly disguised ploy to justify the looting of the US Middle Class.

  27. SA says:

    A Milwaukee woman has been fired her $33,000 salaried customer service job at Wells Fargo because of a criminal arrest when she was a teenager. Excerpt from article:

    “Because Wells Fargo is an insured depository institution, we are bound by federal law that generally prohibits us from hiring or continuing the employment of any person who we know has a criminal record involving dishonesty or breach of trust.”

    …I hope this also applies to the crooked top executives of some of America’s biggest banks. They always seem to land on their feet.
    Also see:

    A 68-year-old bank employee fired from Wells Fargo for ‘stealing’ TEN CENTS from a laundromat when he was a TEENAGER

    Richard Eggers, 68, tried to use a cardboard dime to get a free load of laundry back in 1963 when he was 19-years-old
    A sheriff caught him and charged the teen with fraud
    He, like many others, has now been fired from his job at Wells Fargo from the indiscretion that took place nearly a half century ago

    Read more: http://www.dailymail.co.uk/news/article-2195061/Richard-Eggers-68-fired-Wells-Fargo-bank-stealing-TEN-CENTS-TEENAGER.html#ixzz24xT6kMrV

  28. Sacramento Joe says:

    Stacy and Max,

    Nice show….love the Greenspan analogy. Nice that you gave the Austrian stuff a bit of a rest. Welcome back:)



  29. Al Kyder says:

    Nice show. I can see where this is all going. I remember a joke,
    Alan Greenspan went to a party with Robert Rubin. When Greenspan left he said bye, Thats how the dot.com bubble was created.

    I liked David Smith as a guest. I hope you have him on again soon. Thanks for all you hard work recently @stacyherbert.

    A recipe for conflict: Court orders Murdoch Books pay Bill Granger for “cut and paste” cookbooks

  30. marcio says:

    @Youricarma, nice vid!

    Lesson: never give a monkey a fully loaded gun, no matter how dumb!

    @Max & Stacy, loved the show!
    The Best!

  31. stacyherbert says:

    @Sacramento Joe – except, of course, Greenspan fits into the whole debate over course as there is overlap between Ayn Rand, libertarian and ‘Austrian’ in America; my mission now is to get it officially reclassified as American School because it is so different from the original; at least even neo-Austrian, but I think American is far more appropriate

    @Al Kyder – trying, despite 20% or so shrieking that we should end all debate, conversation and just want stuff fed to them that they agree with . . . I will continue to agitate my mind instead!

  32. stacyherbert says:

    @marcio – glad you liked it; I especially liked the guest; he had an interesting story

  33. marcio says:

    This monkey is not so dumb, but still don’t give them loaded guns!


  34. Youri Carma says:

    What to Own as Silver Gets Ready to Rally
    28 August 2012, by Andy Hecht (The Souvereign Investor)


    Back in 1995, I bought 250 million ounces of silver.

    And no, that isn’t a typo.

    I had high hopes for silver in 1995. It was trading below $5 an ounce, which was dirt-cheap, but I could see that it was terribly undervalued.

    Along with a few other traders at Salomon Inc., we made the purchase of physical silver – actual silver bars. I held 125 million ounces in Brooklyn, New York, and over 100 million ounces in London for safekeeping. What I didn’t realize was the stress our buying was about to put on the silver market.

    Not long after that purchase, I received a call from the chief regulator of the London Bullion Market.

    Hello Andy, this is Terry from the Bank of England. Rumor has it that you boys own a lot of physical silver here in London. We would appreciate it if you would lend that silver so there are no disruptions in the London market .”

    Holy cow, I thought to myself, there’s not that much silver in London! The dealers were concerned that they wouldn’t be able to meet their promises to their paper silver holders.

    I learned an important lesson that day: there was not as much physical silver out there as the banks, dealers and regulators would like us to believe.

    My 250 million ounces stretched the limits of the silver market, and it wasn’t the first time it had happened. In 1979-1980 the Hunt brothers bought 200 million ounces, causing similar market stress. Two years after my purchase, Warren Buffet bought at least 135 million ounces, again pushing the limits of available silver.

    Today, with even more paper silver out there, the situation has only gotten worse. With silver poised to make a major move higher, are holders of paper silver about to be hung out to dry?

  35. Youri Carma says:

    Apple kills Star Trek LOlz http://www.youtube.com/watch?v=rAtje5weAU0

  36. David Liberty says:

    Martain Armstrong

    Will We Collapse
    by August 7th 2013?

    Debt is Destroying Everything

    Apple peaches pumpkin pie, who’s not ready holler I.

  37. Flopot says:

    From Thom Hartmann’s newsletter (yes he seems to be a Democrat shill but I like some of the points he raises and, tbh, his pov is drowned out in the US MSM)

    “Casino mogul Sheldon Adelson thinks a half-million dollars should do it. Adelson – who’s already spent more money than any other oligarch this election so far – is promising to drop $500,000 in a New Jersey congressional district to elect Republican candidate Rabbi Shmuley Boteach. And if Rabbi Boteach needs more money – Adelson is more than capable with a net worth of about $25 billion.

    As the Center for American Progress points out – with that much money – Adelson could give a half million dollars to every single Republican nominee in every single House and Senate seat in every single election cycle for the next 186 years without running out of money. The latest recipient of Adelson’s fortune – Rabbi Boteach commented about the donation saying, “I think Sheldon Adelson will bring democracy to the ninth district of New Jersey.” Yes, if buying and selling Congressional seats in America is considered “democracy.” The oligarchy is stronger than it’s ever been in modern history

    I think shmuley should come to mean any crony lawmaker (politician ffs!) who avows that getting loads of money strengthens democracy. It is free speech after all 😉

    What a shmuley!

    or a T-shirt emblazoned with “Are you a shmuley?”


  38. SilverPorno says:


    Just a couple of days ago I posted up a message suggesting that visitors here sign up to PMF so “Where’s Kenny Boy?” could finally get the green light and be made as it was 95% funded then, and I was really interested in this topic.

    Soon after that I notice, suddenly, it’s only 37% funded, with it’s production cost having gone up from some $5000 (I think it was something like that – a cost that has been advertised for many months) up to $12,000. A sudden, massive, increase.

    What’s all that about? Is it that you and Max don’t really want to make these documentaries? Or is it that when you find they become much more popular and they are close to the original asking price you up the price further to make more money?

    Sorry to have to put it that way, I love what you and Max do, but something is not right at all here and I would appreciate your response to this.

    I do acknowledge the great PMF documentary you made about the situation in Greece.

  39. mbridges says:

    Jim Willie: Morgan Stanley Faces IMMINENT FAILURE & RUIN, May See 1st Private Stock Account Thefts
    August 29, 2011

    Is this the next snowflake?

  40. Simon K says:

    GEORGE CARLIN didn’t believe in God. Wrong: he is HE! Pure genius.

  41. David Liberty says:

    Time for sing song … Rolling Stones – Sympathy for the Devil – Live At The Max.flv


  42. David Liberty says:

    Hmmm here is the HD 720 p version

  43. OlympiaLogger says:

    Contrary to (the apparently growing) common belief,
    a WILDEBEEST is of the Family: Bovidae.

    That’s about as close as another genus and species can get to being a MILK COW without actually being one.

    Not in the entirety of Geological or Recorded History has a WILDEBEEST or even a MILK COW for that matter, ever chewed up an OLD PERSON. . . not one… not even on an Iceberg.

  44. larry says:

    O Reilly is a prick.
    I bet his head lands in the number 5 hole.
    Afterwards, stick a tactical nuke up his ass.

  45. larry says:

    Reload Bill O Reilly into that Carlin catapult a few times.
    And then roll him in batter from a slaughter house and deep fry him.

  46. mbridges says:

    More join South African strike as autopsies show miners were shot in the back.
    29 August 2012

    “…Martin Hutchinson, in Canada’s Globe and Mail, went further:
    “South Africa’s mining-related unrest has a kind of prerevolutionary feel,” he wrote. “The poor have gained little in 18 years of democracy. The gulf with the rich is huge, growth isn’t what it could be, and the African National Congress leadership is complacent. It’s no surprise that as, say, in pre-1917 Russia, militant opposition is rising … If ANC bigwigs seem a bit like modern-day czars, then militant workers’ groups somewhat resemble the Petrograd Workers Soviet.”

  47. capt ray says:

    @ Stacy

    Isn’t it oppertune to start bouycotting Apple?
    With all hedge funds sitting on this vragile egg,
    one tab and it’s broken…

  48. capt ray says:

    @ Youri

    .. and I didn’t even see that Apple vid! LOL!

  49. Sacramento Joe says:

    @ Stacy-

    Okay…..I see the connection.



  50. Youri Carma says:

    Coast To Coast AM Theories of the Universe Ufology Update August 28 2012 with Mish http://www.youtube.com/watch?v=_BUVhh0dQTg

  51. Youri Carma says:

    And Stanton Friedman, the father of modern day Ufology.

  52. alan says:


    ANU academic sees problems with economy.
    Sorry you are twenty years too late!

  53. Youri Carma says:

    @capt ray

    Always have a laugh at this one:

    Darth Vader being a smartass http://www.youtube.com/watch?v=5blbv4WFriM

  54. Youri Carma says:

    Fukishima Radiation in California Produce – Rense & Michael Collins

    Planetary Alignment / X-Flare Watch Dec 17-18, 2012

  55. El_Puerco says:

    Since i never got a Feed-Back…I put it again..Hopping that Max and friends watch this and interview the person..


    Espero lo vean y comenten al mismo tiempo..


  56. El_Puerco says:


    Beijing Gives China’s Banks the
    Green Light to Dump Dollars!
    China’s central bank has always been able to sell dollars… Until NOW… For the first time, every commercial Chinese bank has been given official approval to DUMP and even SHORT the U.S. dollar!

    What does this mean for U.S. dollar holders (you)? One word: CATASTROPHE. The conspiracy between Obama and China is deeper than you ever imagined.


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