well one of the guys a reporter with max kaiser and stacy herbert in america and around the world people were anxiously looking and listening to ben bernanke let's hear a little more states or max ben bernanke he at the end of last week was in front of the senate committee on banking and the headline from that meeting goes federal reserve chairman warns of unusually uncertain outlook for us and because of this unusually uncertain outcome for the u.s. economy he remains prepared to take further policy actions as needed we don't know what this means it could mean more quantitative easing it could just mean the new fabricated policy to save the economy well you know they say that ben bernanke

has no more bullets left in his gun because interest rates are already at you know zero and there's not much really you can do to stimulate on his side of the big financial picture in terms of injecting more liquidity and they've already done quantitative easing as you pointed out the problem is that so it's a debt based currency any action going forward is only going to increase the indebtedness this is the insanity this is what einstein warned about doing the same thing over and expecting different results. and this is exactly what bernanke is totally insane think about what's happening in france there and saying also they want to sell state assets to pay down debt but who's going to buy the assets well somebody is going to borrow money who are going to borrow the money from banks who owns the banks the government so who's going to effectively have to finance those purchases but the people who will be asked to be put into further indebtedness they're actually increasing the debt in the case of the united states max ben bernanke in his testimony blamed the un search. on greece first of all and

then he blamed it domestically on the banking sector saying that they still have a lot of these bad debts that they continue to have to write down or that are not being written down yet and thus preventing them from lending out further the other problem he sees with the u.s. economy is the unemployed and to banking committee chairman senator christopher dodd he says part of the reason i'm concerned by the situation is that this is the worst labor market since the great depression people who are unemployed for a long period of time see their skills atrophy they may become demoralized and short term unemployment becomes long term unemployment we need to be very concerned . they shift all their jobs overseas they have no jobs left therefore they have no savings no capital begin to capitalism without capital that's was kind of debating and degrading into a kind of. fascist slash pop consumer state well let's look at the first

issue he talks about and that's the banking sector they're still laboring under all these bad debts and what are they doing they need to deal risk don't pay well let's look at this next headline max why the new fetish for black swan insurance means the markets are begging for another crisis yes this is business insider reporting on bloomberg news which reported that there's a flood of financial institutions are now offering this black swan insurance from these unpredictable events that predictably happen every every quarter it seems and cause the markets to crash they're hedging against risk and actually do risking are not the same that's right because simply removing the risk would be to allow these debts to deflate and go through the normal course of a recession but by creating more products to hedge against the risk you're increasing the amount of spec. elation and borrowed money so you're exacerbating

the problem that's problem number one problem number two is the black swan insurance is inherently a fraudulent product black swan insurance is a scam i saw it before in the eighty's when i was working on wall street we called a portfolio insurance and a lead to the stock market crash of eighty seven black swan insurance is absurd the only way you could price it by the way it would be one hundred cents on the dollar given the extreme nature of the risks that they're hedging the only price that makes sense one of the option volatility formula would be one hundred percent of the equity so who is going to insure a dollar with a product the cost of dollar it's insane but they're going to sell it to these portfolio managers who are basically passive which is to say brain dead well these brain dead investors that these passive funds are of course managing the pension funds of the future generation that takes us to the next headline great news most young americans expect social security to collapse according to

a new usa today gallup poll three fourths of those eighteen to thirty four don't expect to get social security check when they retire so talk about black swans which are being i hedged all over the place and sold to these very people they're expecting collapse it's like a certainty it's not even a black song is a white so well it's a joke because they call social security entitlement but. people paid into it it's you my money in other words if i go to the bank i say i'd like to take the thousand dollars out that i deposited last week and they say well you know in title to your own title mitt and like whatever someone title mitt that's my money social security is owned by the people but the money into a slot in title mint that's a euphemism for oh we're abdicating our role is to do sherry stewards of the economy and instead of just going to give everybody a wall street a huge bonus levels to go pound sand it was the previous fed chairman alan greenspan who convince congress to raise the tax on workers so that. towards their

social security and that increased the pool it created a savings pool for the baby boom generation that everybody foresaw that this was going to be a big strain on the social security system and two and a half trillion dollars instead of saving it as they were supposed to they use that to fund their wars and the tax cuts for the rich that's just right before reagan made him the fed chairman he was working some for cock the wonky policy group and think tank in washington and they said raised the workers and we'll use the phone retirement but reagan when he got office you simply stole the money so you see that these eighteen to thirty four year olds are expected collapse and they're doing nothing about it they're just like taking it passively because this is the federal government you can't do anything because they'll just kill you here's on a local level what you see california officials eight hundred thousand dollars salary in city of thirty eight thousand triggers protests so this is hundreds of residents of bell california town of just thirty eight thousand people it's one of

the poorest municipalities in all of los angeles and they discovered that their chief administrative officer robert ritz so earns seven hundred eighty seven thousand six hundred thirty seven dollars per year with an annual twelve percent raise this is a thirty eight thousand people in this little town yet the police chief makes four hundred fifty seven thousand and council members earn almost one hundred thousand a year for part time work now to put this into the context of a story we only covered recently in the kaiser report that the queen of england cost the taxpayer less the one dollar per person in britain the chief administrative officer robert ritz so in this tiny town of bell california costs each taxpayer each citizen each child each baby cost twenty one dollars yeah that just shows that the wealth and income gap is widening to these absurd levels and depending on how you have leverage you see you soon. in america if you had

a good idea you had leverage was a meritocracy but now if you've got inside connections and you're a crony capitalist and you've got a gun you can get it well but it's also our theme of neo feudalism that we see in the world so we have these democracies they overthrew all the aristocracy as in the monarchies from well in france and in the u.s. we did and then we have we have these new monarchs who are even more expensive than the old ones well these are the barons of the dukes and the feudal lords of the new meal feudal system that's replacing the american free market system but speaking of dictators let's move on to the next headline blair in secret talks with khadafi lockerbie families fury as ex premier is treated like a brother by dictator just days after denying links with libya. oh no no other human rights abuse or war profiteer tony blair all. but i can't believe this guy's still walking are all right let's tell you blair so

tony blair was flown to libya for secret talks with colonel gadhafi just days after denying he was an advisor to the dictator mr blair was entertained as a brother and they discussed a wide range of international and domestic issues including lucrative investment opportunities. yeah. so we heard tony blair now works for j.p. morgan we're talking about dictators we're talking about these elite these neo feudal monarchs who control the world who control our financial systems. and it brings you also it ties together with david cameron who was just in the in the united states last week according to david corn who's the mother jones washington correspondent look at his twitter cameron asked about b.p. lockerby roll role of b.p. is for b.p. to explain shoots down need for inquiry into b.p. lockerbie yes max in the united states apparently senators and congress people want an investigation into b.p. because they're shocked to discover that the terrorist who was accused or charged

with downing the lockerbie plane pan am flight one hundred three hundred ninety americans died yes their only now saying oh we're shocked that b.p. was behind this but at the time two thousand and seven remember you can see the photos of tony blair standing with moammar gadhafi in front of the farting camels of tripoli and he and they were out doing the deal to release this you know terrorist in prison and right away b.p. got a deal you know like a billion dollars with libya young this is blood for oil this is tony blair's epitaph blood for oil tony blair but it wasn't an issue then it wasn't it was reported widely at the time that's why he was in libya that's why it helps to have a media company and the mainstream media under your thumb in the united states because you can distract and bamboozle the vast population with kinky celebrity game shows etc but you know to get to the nettle of this important

question of blood for oil service men dying for oil companies it takes years before that gets into the public domain and by then you know things are watered down i think but it also puts into context this alleged investigation by congress into b.p. because the fact is they have known about this for years they know tony blair they awarded him and congressional medal of honor and they know that he was just in libya doing this deal with him. they don't care they're just pretending for the masses so they don't get upset tony blair the zombie that just won't go away all right stay here with thanks so much bring on the kaiser report thank you max when we come back much more don't go away.

a. few months some. love.

welcome back to the kaiser report time now to go to london and talk with ned naylor leylandii he's a fund manager at chevy out asset management ned we've had loads of demands from viewers of the show to talk about so over you're an expert on server investment so give us a brief history of solvers raul's a currency and a central bank reserve and where it is today in sixty seconds go ned yeah thanks

a softball question max i think obviously most of your most real view is a fairly aware of the role of of silver as a currency historically. i think in sort of double digit turns around the world the word for silver money's interchangeable silver is probably more relevant at the moment in terms of the. of a monetary asset over in asia where the chinese are obviously buying a fair amount of the stuff along with gold through their bullion shops but look you know i think we're all we're all of the mind that paper currencies are in a state of. distress if not collapse and i imagine china that's interesting because i was little factoid i don't know if you've done much study on this or not but during the one nine hundred twenty s. and thirty's during the depression of course china from what i understand was on a silver standard is that correct yeah they're trying to be in be you know in office and i she's funny you bring that up because it's certainly true that the various. international leaders of history probably ones avail repeat in terms of

modern history historical context and so we started some see true regime were involved with that as well actually the mongols preceding that so there's a lot of history of chinese involvement in silver but as there is all around the world this is not something that could be laid at the door any particular country certainly here in the u.k. and in the states it's less it's less well understood within within his historical context and it might be elsewhere ok now one of our our viewers nad goes by the name of tears of the moon asks. why is so over sixty five times cheaper than gold when only nine times more silver is mine per year versus gold and a start pile of silver bullion as ten times less than of gold well i would love to be able to give you a straight answer on that i think everyone's looking at the gold so ratio is some interest than on historical basis where it is extremely high level i mean for what it's worth i'm not sure it won't go a little bit higher if there's a deflationary down wave and another asset class and

a lot of people are expecting but in terms of why that is well i think this all plays into the whole discussion about silver being an extremely strong strategic resource in terms of global commodity markets probably along so i water in that context and as much is there has appeared to be intervention on behalf of industrial uses and other uses of the metal which is led to a lower price than ordinarily to be the case but yeah i mean you know historically i think the right level look some of it's in twelve and sixteen to one where up in the in the sixty's as i said i think it could go higher in the meantime all right now here's imagine deflation and i really want to pick your brain on this idea sense the credit collapse started in two thousand and seven two thousand and eight period we've been basically in a period of deflation and the precious metals have done well not too many this is counterintuitive but there is an economic case to be made for why precious metals

should do well during deflation can you speak on that a little bit i think probably the whole argument about inflation deflation is got bit skewed i think the reality is it's a lot more complicated than people make out sure collapse phase lead to what people would term a deflationary environment but i would argue the average man in the street is not we're seeing lower prices in the things that he's buying so i would be a bit cautious about referring to anything as either. an inflation or deflation environment i mean what it's worth i'm from the camp of anticipating serious stress in the fia paper environment so you know what i do see the potential for hyperinflation which i think is probably the reason why it's doing well more nothing else than in people's concerns about the true nature of paper money is more where this is leading as opposed to necessarily what you would describe as an ordinary economic discussion of deflation versus inflation max ok so

deflation and hyperinflation are two sides of the same coin and what we're seeing here with asset price deflation is killing the global credit market and there's no velocity of money there's no multiplicity of money the money supply is shrinking and this would normally be bad for precious metals but it's so severe that it could be that what the bully on purchases or are now looking for is hyperinflation or a currency collapse as you point out the fear of currencies are collapsing now let's move on a silver has also been in the news a serious since the shocking testimony by andrew maguire via data bill murphy and j.p. morgan has been engaged in silver market manipulation tell us about this summer manipulation by j.p. morgan also the rule of silver e.t.f. the exchange traded funds and the manipulation if any i'm not sure about direct

involvement with the ts in the actual manipulation that may or may not be the case of things very difficult to hang your hat on stuff like that and i would probably try and avoid doing it but what i would say is that the evidence seems fairly clear that massive amounts of paper silver have been deployed by institutions in order to depress the silver price what exactly the rationale for that is i'm not sure but i think that probably the most telling thing of all about this story is the fact that it was a fascinating debate the place and you know j.p. morgan were accused. effect of the high crimes and you know we've heard nothing since which i think sort of gives context to what really took place there you know you wonder you expected by now at least some attempt to fight back against these allegations but i think the very fact that hasn't happened is quite telling i thought was very interesting yesterday as well saying but chilton talking about the financial reform bill way he was talking about how they've now been allowed to enforce speculative position limits on the comix and he's talking about how this

was a heroic piece of legislation now forgive me max by a bit of a skeptic about all this i think by now they ought to done something so i'm pretty skeptical as to whether or not that's actually going to happen and it was interesting that while he called this bill heroic he also drew reference to the fact global commodity markets the regulated part of that is five trillion dollars worth and then points out the over the counter market is six hundred trillion so quite war can really be done this point within the context of the existing discussion i'm pretty dubious what it's worth i think the market itself will drive silver much higher here people you know investors taking a view on global currencies will drive the price higher absent involvement from the regulator which is a shame and is a reflection of where we are particular off the one when this the marketplace as well referenced the made of case it just seems as though. in order to get the price

higher is going to be a case of investors taking physical delivery as opposed to the regulates doing anything about it ok so you don't see much of a role in terms of the exchange traded funds and this big manipulation question you think j.p. morgan as they're being. alleged to be manipulating these markets there's a good case for it certainly they've got a huge position something like thirty thousand contracts that well i mean i don't know what they'd be had or what that contract because unless they found a. it somewhere in the outer rings of the solar system made entirely of some thing that would put solar out of business i'm not sure it seems out of a cosmically short position that makes no economic sense and going forward you think the only way to bust the manipulation cartel is for folks to take physical delivery wasn't there a move about six months ago didn't sprout asset management wasn't very vocal in saying let's take physical delivery what happened at the diversity got to do or how

come they didn't go forward with that no i think i think the talking about silver silver trust as well and i think that there's been some some moves in that direction but i mean speaking from a personal perspective you know i've thought. a period of several years about taking delivery through comix of physical metal but you know war i'd worry too much about the exchange risk i wouldn't i wouldn't want to do that because frankly you have a period of settlement where i wouldn't be comfortable with that i think probably a lot of people invest in silver are let's say the more opinionated element of the goldbach community and i think they're probably the greatest skeptics of all about the exchange in the way that these contracts saw delivered upon there is a move you know there's no doubt the bullion sales are going up i can tell you for a fact that in london it's very difficult to get hold of physical silver if you can get it you're getting it in small amounts and enormous premiums. and i just think over time the lower price point entry for silver versus gold as people start to

take a view against forty a global on back paper money system will lead to people wanting to invest in silver as a store of value as much if not more as gold particularly bearing in mind the fact that aboveground bullion engine cheesing in silver being hugely exhausted over a very long time frame as against gold which of course has been stopped in the you know the reserve has grown look if people are not willing to take physical delivery of. they are setting themselves up for a huge disappointment because j.p. morgan can short phantom or naked short seller counterfeit naked short positions in the silver futures market all day long so unless somebody steps up to the plate and stands up to the cartel that is j.p. morgan i call them financial terrorists because they have destroying the global economy and causing poverty and famine around the world as a result innocents are getting dying because of this type of manipulation if no

standing up to them then we shouldn't complain we should just take our medicine lie down and believe like oh nothing's wrong i've got another viewer question from. means she asks how long can j.p. morgan keep shorting server before the house of cards around them this is exactly what i'm getting at in other words they can shorts over forever there's no limit to the in that the amount of naked short sells ok i'll bring up a little a little extra point here max which i'm not sure i've ever heard you talk about on great fan of the show and i think you decide to ask that but what i would say about that is rewind a little bit at the end of the bush term when. i think from memory it was john negroponte that was given some role within the administration whereby affectively corporations who at the end to be a national security of national security importance could be given a free pass respects all financial reporting so i would make the argument that even if you say that the regulates could come in and things could be enforced and this

that the other person of the view that things are happening in such a irregular context particular a lot of that executive order that. b.g. b.s. about how one can can expect j.p. morgan to be forced out of their positions look i would very much hope that happens all of us investing in silver see that as rocket fuel to the outside if they're forced to cover yet mad well what about all the government money that j.p. morgan takes out if they return all the government money we stop subsidizing this financial terrorist we. stop making jamie diamond's life easier by just make itself so short sighted over all day long for bogus christmas bonuses that he doesn't deserve them or work for our network then his life this guy while we just stop supporting why are we giving welfare to market manipulators in america ok you talk a hey max i've got i've got no idea and i'm with you on this you know all day long but you know there is a degree to which one has to sort of look at the situations it actually exists deal with it accordingly and i personally my personal view and has been since two

thousand and one when i first started investing in this metal that the way to do it is to incentivize other people through information to take delivery of let's say small medium or even large amounts of physical silver which put stress on the on the underlying structure of this market i mean instantly my best billion data contacts in london tells me that something which hasn't been the case before is that his large allocated silver bullion accounts are being charged by the warehouses in a way they weren't before we sense suggests that some of the movement is going on there is causing some stress and some cost to the warehouses so i think it's difficult to know exactly where we are with this person i get a sense that things are are improving certainly the public's understanding of it's come on leaps and bounds and it seems to be a subject which people are getting their teeth into you know in a way they want before you know why except what you're saying i personally see

silver is the killie's here love of the. cartel for one of a better word and i think it will prove to be the case that as the little man takes takes advantage of the situation of a low price point drives the the physical out of the warehouse inventory squeeze will come i agree with you it is a killer c.l. and it wouldn't be difficult to bust a car max if guys like sprout up in canada stuck to his word and did what he said he was going to do instead of chickening out of the last minute all right that's all the time we are for. today med thanks so much for being on the kaiser report notice oh my pleasure max all right that's going to do it for this edition of the kaiser report thank my guests stacy arbor and mailer leyland if you live send me an email please do so at kaiser report at r t t v are you until next time this is backed by you know.

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you watching r t live from moscow five thirty in the morning here and these are the headlines over leaks of thousands of military documents to the internet revealing major cover ups over the war in afghanistan it's the biggest leak in the west military history which discloses unreported civilian deaths and america's suspicion that pakistan was supporting the taliban. war veteran groups in the u.s. are often. arms over what they say are broken government promises of the country they serve this. left many homeless. a space to call home it's ten years since the international space station first became habitable. with life support systems and docked with the orbiter many space experts worldwide see the project as the pinnacle of international call nation.