sounds impossible. some people have already chose. a place under the sun on our teeth wealthy british style the stock. market. find out what's really happening to the global economy. for a no holds barred the global financial headlines kaiser reports. more news today violence is once again fled the film these are the images the world has

been seeing from the streets of canada. corporations are today. she's available in the. piece the how it closer to the church in tokyo turner hotel world show his the groom her tone the show would her turn. to the show photo saloon hotel the result evergreen sold her total at the grand victoria hotel the prince hotel springs resort and spa tied to a hotel while she penned post a photo. of the evergreen closer in time to eat lunch time to time the. point and. the splendid hotel in touch with the hotel in touch your goals the future of a goal or

a goal how would. she ever heard told. reporters coming out during our team the first let's get you up to date on today's top stories the family. in arms dealer who may be forced into confessing is taken into u.s. custody and is currently in jail in thailand awaiting extradition to the states pressed charges of fraud and money laundering which will stall the process were dropped earlier today. and the austerity protests engulf europe with populations. on point made while americans facing similar problems seem to be taking their hardships less seriously. and garbage.

landfills are turning into mountains of trash over five and a half million tons of waste is produced annually in the capital and only a small portion of it. next some scathing financial analysis brought to you by a car is a report with our than coming close to defaulting max kaiser and co-hosting see her bert take a look at how the banking crisis there and elsewhere is leading to the continued rise in the price of gold that's next. geyser and this is the kaiser if or go. gold price caves go it and i are well you know these markets finance and scandals continue to evolve. price of gold it's gone higher let's bring in political analysts to see

over it max gold is going up because of strife in the global economy nobody trusts the central bankers anymore check out this first headline cement mixer rams irish parliament in bank protest a cement mixer has rammed into the gates of the irish parliament in apparent protest at the country's catastrophic lee expensive bank bailout right well member ireland was the first in to impose austerity measures and the government said they were going to bite the bullet on this and we're going to impose austerity measures little did they know that banks like anglo irish was sitting on huge amounts of debt that they refused to disclose refused to disclose otherwise known as malfeasance otherwise known as financial terrorism or otherwise known as lying so injured beat them with a with a chalet only stick and still they start telling the truth in fact anglo irish bank

owes seventy two billion euros which is the equivalent of about ninety seven billion dollars to depositors worldwide and the irish taxpayer is on the hook for that and that's most of the bank bailout in ireland and of course the cement mixer has in place and donna as you can see from the photo toxic bank anglo i think it's an interesting idea it's full of cement about some cement shoes the next headline error and trial world leader indicted for a role in financial crisis first case of its kind this is the people of iceland yes there they've indicted a poor iceland prime minister garrett hard i told those people in iceland you know bridget jones don't you know she's a parliamentarian out there i tell her you've got to take these guys down to the you know prison and do what you have to do he faces two years of found guilty and you know one of his accomplices in this is fred michigan. for

a former member of the board of governors of the federal reserve bank of america and he went there in what was it two thousand and six or something like that and he told them that their system was great the deregulation of the banking system here was fantastic it was the best in the whole world so this is what happens to people who listen to well people on boards of governors of banks around central banks around the world savers told to stop moaning and start spending this is charlie being who is a senior bank of england official and he was interviewed on channel four and he said quote it may make sense for them to eat into their capital a bit where you can have capital about capitalism of course so he's saying we should destroy capitalism and then you know the challenge for a presenter goes on to show very vividly the cost of these low interest rates or was as a must i paid by twenty six billion pounds because of those interest rate reductions

for savers i've lost by twenty billion pounds that's a direct transfer from savors to borrowers yet but these very central bank governors are telling everybody around the world you know they bleat the word socialism we don't want socialism we don't want socialism but here we have evidence of them committing redistribution of wealth from savers to debtors so this final clip here of charlie bean to actually this disincentive. for saving these kind of. it's the porton who did it susan b. or it's part of the point. it's mostly the fake me how monetary policy would mar the victim of the savers why why i mean the savers are the backbone of capitalism no capital without savings so what planet is this guy from what is he talking about he's not talking about capitalism he's not even talking about

socialism just stealing money he's just killing who is totally being given the phone right now detroit being on the phone right now the guy is like you are. generally your. ok there's no capital there because you stole it i mean at least when somebody robs a bank they don't go to the bank the next day and say give me some money man. what you just stole today before today we don't got the money charlie you've got beans in your head i mean i can't believe people are government well he's not in the government he's in the central bank which is above and beyond governments actually they control what governments do so he admits this is what monetary policy is meant to do it's meant to destroy capital now let's look at the next headline which is this coworker adam posen gold spikes after beat oweis posen demands more q.e. once to buy corporate debt yet so gold soared on this guy speaking and as

a whole list of the ticker tape coming through on bloomberg screen posen i think further monetary easing should be undertaken in the u.k. subject to debate if q.e. does not work then time for further fiscal stimulus corporate desk purchases and on and on and on more money printing you know the gold vigilantes of which i am one we're going to put these guys out of business and the gold vigilantes as we talked about on the show central banks are now buying gold you've been listening to me around the world asia europe america some some americans some of the smart americans the lucky man. we have been telling people to buy gold and we did play last week charlie munger who is what the two hundred thirty three just man in america we showed him speaking before university admission crowd of students and here's another clip from that where he was asked whether or not he owns gold and he says i have no interest in gold and then he says this if you're capable of understanding the world you know moral obligation to become rational i don't see

how you come rushing all hoarding gold even if it works you're a jerk. so i. drove monger these basically he's an equity pimp ok he's down there in omaha nebraska in his pink cadillac and it's big for he had he's walking around omaha with warren buffett on a leash and a spike dog collar and they're like hey you know we want you to buy equities and bail us out of our bad stock positions don't buy gold that's for chumps. ok now prostitution is illegal in that state that guy should be in a cell right now with a bunch of very horny equity people who've been abused by his equity selections charlie munger is telling the ordinary person the one victimized by the central bankers who are destroying their currency destroying their savings destroying their capital their ability to form capital their ability to form well and then we go to c.m.d. see europe where they interview bankers from cazenove bank and this is what he has

to say about when asked why while the s. and p. and the dow are doing so amazing this year it's like their best year since one nine hundred thirty nine how do you explain this and this is what he says i think one of the reasons is water cooled permanent open market operation spear way about if you're going to read more about those initials what happens is the fed buys treasuries off the banks the pushing the money into the banks the banks put the money into the market they do about six billion per day when they do this i think today is one of those days and what happens is that amount of money turns the algorithms up so that all the algorithmic trading gets the market real live human investment managers are not doing this buying they know that off to the rally that we've had we're now back to where we were first in one nine hundred ninety eight could is a solution yeah that's right the avatar of charlie mongers are equities market

where there is they're hurting the sheep in there the average stock buyer to slaughter them i mean i was working on wall street we said sheer don't slaughter because you wanted to rip these people up you know the next day but charlie monger and his equity cult and they are cults and that's what they should also be outlawed around the world the cult of a sect he wants people not to just hear them he wants to slaughter them what you might also want to look at the story and ask why is the government trying to encourage you to get into the equities markets i remember governments are bankrupt they're bankrupt around the world. and they want you in there because they are the other side of the trade they want to take your money that's what markets are designed to do it's the other side to take your money so that's what they're trying to draw people's savings whatever remains of it into the markets so they can steal it then as the c n b c explains the market is no longer run by people buying and selling and the resulting you know the price what we see are computers run by governments and they're stealing they're using the market as a as a facade to steal ok when you go in the casino when you walk in it looks kind of

normal but then you walk out you have no more money you know the facade is such that there is charlie munger shown a little thought as you walk into the casino you know it's gorgeous little strap on hi i'm charlie munger come into my equities casino and he's eighty six years old but a lot of people are into that kind of thing and he rips you off line him and warren buffet's laughing ha ha ha ha ha you know these guys i again if obama had a spine which of course he doesn't but if you did he put him in jail after a trial of course now he's an enemy combatant there's no trial military tribunal you take him down the military drive you know who and they'll all those guys got wiped out by prostitutes like charlie monger and the pimps like warren buffet and they throw him in jail mediately that would be no trial i mean this is the problem you see the problem is that gold is going sky high because these crooks are running the system best why gold is going higher because crooks are running the system the moment the gold starts to go down you'll know that maybe the crooks are going to

jail but unlike the savings and loan crisis the one nine hundred eighty s. were over a thousand bankers went to jail over a thousand bankers when did you know how many bankers have gone to jail as a result of this crisis. up best like gold is going so how my friends if you want to get a play on the entire global economy being run by charlatans and i wrote about it for this guy lunatics like charlie munger the god of michael decided that's not all that talk about that's all right the great thing about this gold coin is that it's also one hundred percent edible thanks so much for being on the kaiser and for stacy herbert. i'll go as soon as the fish is gold going we're going to talk to some fantastic guests about lots of interesting stuff so stay right there up. imagine your life big city. the friendly.

crystal clear water. organic. living in harmony with nature. sounds impossible. some people have already chosen. a place of. honor to. welcome back to the kaiser reports on how to go to chill a to talk with gonzalo lira an author and filmmaker who is shaking up the financial blogosphere with his gripping writing on hyperinflation gonzalo welcome to the

kaiser report max it's a pleasure being on your show thank you for having me i can tell there are the u.s. is in the grip of deflation so how do we get from that so hyperinflation. problem that we're currently having is that the treasury bond market is incredibly weak and everybody knows that separate realizes that toxic assets were replaced by treasury bonds and the same structural weaknesses that were in toxic assets are no internal ones so at some point you know everybody's going to realize that we cannot that the u.s. federal government cannot pay back its debt and when that realization happens i think that there's going to be a kind of in the treasury bond market and money will sleeve from treasuries which have been to the traditional safe haven now if people flee from what is the traditional safe haven which other treasured ones and go to commodities commodities and eventually that would be reflected in prices c.p.i. numbers would she go as the price of oil went up the price of wheat sugar cotton

copper and as consumer price numbers started to rise we would see a similar price spiral as we saw after the seventy nine will show us look at the last three years sarah and i work out some of these terms now going back to two thousand and seven two thousand and eight after twenty five years of building credit up of the system from going in the early part of the cycle in the early eighty's where it took a dollar or dollar fifty of debt to create one dollar of g.d.p. to the point where it took five or six dollars of new debt to create one dollar of g.d.p. and all that debt cumulating in the system and then in two thousand and seven china france over there citicorp said as long as the music still going we're going to keep dancing that was the top of the cycle then you started to go down the deflationary skids banks at that point central banks through tons of money at the

system and people were saying aha this is going to cause inflation but it did not cause inflation because even though they threw a couple of trillion at it there were many more trillions of debt yet to be revealed and this is just to cycles. started up where central banks kept taking more and more and more of the toxic debt from these banks and swapping them for t. bells and this process kept can be stoking really the process of deflation as a result of this you had this move paradoxically into u.s. dollars into u.s. treasury bonds which is exactly what the inflation has got completely wrong but now we're at the point the cycle where there's another turning point they've all these in the us for example the federal reserve bank is sitting on so much toxic debt. that it what you're suggesting is that the global investment community and the global bankers around the world but primarily investment community says you know

what i'm not going to own i want to get out of my u.s. treasuries out of my u.s. dollars and this of course would be a situation of hyper inflation otherwise known as a currency collapse and as you write until a when you were in chill a you had a similar experience in the early one nine hundred seventy s. right there in that country which you are now drawing a parallel with the u.s. in the late seventy's as well and you know your fair and until the point about the . hyperinflation the early seventies the cost of which were vastly different from from the united states today but it essentially i would argue are your analysis is you can look at this problem from various different angles now number one there is no question that there is deflation going on now in the united states and that the federal reserve board is terrified of it and they've been throwing money as you correctly say because they want to prop up the economy with liquid ever since easy at all took over as greenspan took over as the federal reserve chairman in ninety

seven liquidity has been the only tool of the fed with misses and they always add liquidity they very rarely take away or the incremental they don't believe in shock therapy and in terms of you know putting the brakes on the economy the only believe in loosing along the economy or the belief so during the entire tenure about greenspan and so far in the tenure of ben bernanke so there is sort of like locked into a specific mindset that the only way to fix the situation is by throwing money at it but you know eventually it's money has to be paid some of the but the money they're throwing at it is going into a black hole because the banks for example every single day for example in ireland the big irish bank just said you know what we don't need twenty or thirty billion and bailout money we need maybe twice that amount of money because of all the debts we fell. to disclose so there's been a failure to disclose the two nature of the debt this is this is a huge issue because these banks are not told exactly how much debt they're sending out either because they have no idea or my belief is that they're being they're

engaged in massive fraud so it's impossible to know how much debt they're sitting on but at some point they will run out of disclosing these bad debts and at that point is the point in time when the trap door opens and the currency in this case the dollar world reserve currency takes a bungee jump down into the canyon of oh bless me in do you hear me contradicting you in anything that you have said no you do not because you're right on the money unfortunately and i think that. the way that the federal reserve and the treasury department basically has drawn out this situation the united states was by suspending some of the fast especially when fifty seven about you know becoming standards and you know the banks we all know that the banks are are floating on nothing but air i mean there is a reason that we're calling them the americans arms because this is basically the

underlying regulatory framework for accounting and what we're saying is the fraud being committed is a violation of the underlying accounting now every time for example in two thousand and eight with hank paulson put a gun to congress and said give us seven hundred fifty billion dollars in a blocking our economy of course he was not complying with the law he was not complying with f.a.s.b. he was not complying with any of the financial rules and regulations that should have been governing the banking industry so he's saying is that what he's saying give us the money even though they themselves are not complying with any of these laws goldman sachs is not doesn't comply with f.a.s.b. there is their capital on their books does not does not meet basil written minimum reserve requirement has not met that basic minimum reserve requirement for twenty years because they abuse this basic accounting law white. said to gregory later when the present united states simply say you guys are prank of the law go to jail i can tell you in a very simple and rather vulgar way because the accounting the regulatory bodies

and political powers don't have the balls to do it you're absolutely right all these people are in the massive fraud. but the thing is the the people who would have the power to hold them accountable to arrest them and try them in a jury well they're in involved in same fraud and i don't think that any of these people are directly. have their hand out for some cash from goldman sachs but they're all waiting for once their terms expire or once they leave office they'll get a nice cushy job i mean look at alan greenspan he's got this great job over at john paulson is outfit you know. what does that tell you john paulson what's john paulson is biggest position in his fund right now gold yeah so alan greenspan spent his entire career badmouthing what. i don't know all basically i guess yeah i mean he's saying he can create it can replace gold with the u.s.

dollar which is just like gold except it's not and then he leaves office he goes to john paulson says fine now they're buying gold aggressively so he's not the maestro izzie is just another one of these you know. fraud paddling guys now let's talk about another salon monkey paul krugman over there at the new york times he's a lazy no good for nothing he's saying oh you know i forget it that we there's nothing we can do let's just start a war isn't he just saying let's start a war or to get out of our problems i mean this guy is easy trying to be tried for war crimes before they even commit war crimes what paul krugman is probably no no no he's not saying that max i mean we have to be fair to him and he's very slippery about how he is you know what is his position but he is allowing readers to draw the inference that or would be a good thing for the american economy has never said so but the way he frames his policy prescriptions in the areas places that he writes in both the new york times

and his blog the conclusion is inescapable that he says that he is effectively saying actually or explicitly said that a war would be a good thing for the american economy and i personally find this despicable and i have said so i go to pieces about him one or i took apart the labor day weekend op ed piece in the new york times where i showed how he manipulates data and information in a very slippery and very clever way that to the uninitiated or the knowledgeable you know it's hard to swallow and he uses data about debt levels during world war two in the depression that are obviously untrue and i write about them specifically and specific debt levels both federal state and local levels which you can find my blog but the point is the reason i'm saying this is i'm not trying to sell anything as anybody knows i don't advertise on my blog. i'm not trying to convince anything i'm simply pointing out you know when the emperor has no clothes well i can't use

saying through inference you can. glean from his writing that he is making a conclusion through the back door of some ill constructed argument that war with some out be of benefit to the us economy but we don't need to go through the through the back door of fog and parse krugman is writing all we need to do with ask yourself one simple question isn't there a solution on the table to solve this problem and it comes with a big guy attached to it paul volcker if you need it if you want to be in the capitalist business you need capital and if you want capital you need savings and the only way to attract savings is how our interest rates interest rates i mean look i was as i said this you know and in my writings you know if paul volcker were a rock star i'd be a screaming fifteen year old girl you know he is my hero because in one nine hundred eighty he raised interest rates in your top fault inflation and notice she

raised them on an average of four hundred sixty four basis points over the inflation rate and it still took him three years to bring inflation to heel i mean once inflation gets started which is what her name he and now mr krugman are arguing for of you know control moderate inflation which is ridiculous but it you know once inflation gets out of the bag you know it's going to be very tough to get it back you know into the back paul krugman took tremendous political will and criticism at the time for his you know expensive money you know high interest rate. solution to the inflation problem but he recognized that currency would be destroyed by persistent double digit inflation now i don't have a problem with the our currency i think frankly it's it's you. the idea of you know a currency system based on actual coins or gold back i just don't believe i think

if your currency can work so long as it is one manage now mr volcker managed it exceedingly well and he showed exceeding strength of character and great political will and savvy in order to maintain those high interest rates which were necessary in the early days because basically what he did was if if the economy of the united states was a cancer patient and the cancer was inflation mr volcker and mr chemotherapy now of course chemotherapy use sometimes almost as bad as the cancer but in the end will get better. with the high interest rates that he applied lead to a severe recession united states. that so who should cannot be applied today because the economy is already so weak. that if inflation starts. today as it seems to be going to be having very very soon because as you know i'm sure your audience probably knows commodities are right in perception is that you know some speed gold is at thirteen zero eight sugar or cotton copper everything.

i think that when we reach double digit inflation and we are at a jumping off point for hyperinflation the fed will rely on is. being let out of the bottle but because the economy is so weak they will not be able to. interest rates in order to stop this hyperinflation and i think that things are going to turn very ugly to tell you the truth right so krugman is an academic he's trying to argue and some logical way how to create inflation to a group of bankers that are just ignoring what he's saying and stealing the money causing deflation until they've stolen all the money and then you have a currency collapse or hyper inflation so he's basically valcke or was a guy who went to a gunfight with a gun instead of the you know bernanke is going to a gun fight with a knife is not going to win all right so thanks so much for being on the kaiser report thank you so much for having me.