these are our t. headlines the family of the alleged russian illegal arms dealer big fears for his life if he's extradited to the u.s. after a thai court dismisses fresh charges brought by washington who could face life in prison if convicted in the u.s. he's been in a bangkok jail since his arrest in two thousand and eight. the ministry of defense comes under fire for routinely deleting records of his campaign in afghanistan making it impossible to investigate cases of misconduct by troops claims it's standard practice to delete some documents offered employment but anti-war advocates say it smacks of a cover up. an advertising campaign backfires badly on eco campaigners trying to cut carbon emissions major backers have now pulled their support and expressed

disappointment over the cinemas drop the commercials that feature and bloody images just hours after they. up next some scathing financial analysis brought to you by the kaiser report with ireland close to defaulting max kaiser and co-host stacy herbert take a look at how the banking crisis there and elsewhere is leading to the continued rise in the price of gold stay with us. i'm max kaiser and this is the kaiser it for go. gold price keeps go way and i are. these markets finance and scandals continue to evolve. price of gold you've gone higher let's bring in political analyst 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 hey we're 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 shell alias 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 they're they've indicted a poor iceland prime minister garrett hard told those big. you know bridget jones don't you know she's a parliamentarian up there i tell her you've got to take these guys down to 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 without 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 this. bad news for savers is kind of. it's the point would be or it's part of the point. is no scientific piece is actually 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 was just being given the phone right now detroit be on the phone right now the guy is like you are. jolly york.

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 and then what you just told the day before that if we don't get the money charlie you've got beans in your hand 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 oweis posen demands more q.e. once to buy corporate debt yes so gold sword on this guy speaking and has a whole list of that the ticker tape coming through on bloomberg screen pose and i think further monetary easing should be undertaken in 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 this 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 a 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 advise you to. charlie

munger is basically he's an equity pimp ok he's down there in omaha nebraska in his pink cadillac and it's big for you that 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. 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 wealth 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 what a cool permanent open market operations p.-a way about if you're going to read more about those initials what happens is the fed buys treasuries of 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 terms the algorithms then all the algorithmic trading hits 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. is a full loses the other side of the avatar of charlie munger is our 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 munger and his equity cult and they are cults and they should also be outlawed around the world is a cult in a sect he wants people not to just share them he wants to slaughter them where 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

there's charlie munger shown a little thought as you walk into the casino you know he's gorgeous little strap on hi i'm charlie monger 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 tribunals you take him down the military drive you know who and all those guys got wiped out by prostitutes like charlie monger and the pimps like warren buffet and they throw me in jail mediately that would be no trial i mean this is the problem you see the problem is a gold is going sky high because these crooks are running the system that's 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 of the one nine hundred eighty s. where 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. well that's why gold is going so high my friends if you want to get a play on the entire global economy being run by charlatans and and i run out of adjectives for this guy lunatics like charlie munger you gotta buy gold is that it that's what all the 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 arbor. i'll go i assume his affairs as gold go i'm going to talk about some fantastic guests about lots of interesting stuff so stay right there up. tonight.

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living in harmony with. sounds impossible. some people have already chosen. a place under the sun on our t.v. . welcome back to the kaiser report time out to go to chillag to talk with gonzalo lira an author and filmmaker who is shaking up the financial blago sphere 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 they are the u.s. is in the grip of deflation so how do we get from that to hyperinflation the problem that we're currently having is that the treasury bond market is incredibly weak and everybody knows the supreme realizes that toxic assets were replaced by

treasury bonds and that the same structural weaknesses that were in toxic assets are now in treasury bonds 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 panic 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 treasury bonds and go commodities commodities would shoot up and eventually that would be reflected in prices c.p.i. numbers would shoot up 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 well shock let's look at the last three years here and 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. 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 chart friends over there at citi corp 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 threw 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 a cycles started up where central banks kept taking more and more and more of the toxic debt from these banks and swapping them for tea 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 inch away 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 that . with hyperinflation the early seventies we 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 that they've been throwing money as you correctly say because they want to prop up the economy with liquidity 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 us and they always add liquidity they very rarely take away. incrementally they don't believe in shock therapy in terms of you know putting the brakes on the economy only believing to sing along or the belief so during the entire tenure of our own 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. gauged 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 that dollar world reserve currency takes a bungee jump down into the canyon of oh bless me and 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 or 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 this underlying accounting now every time for example in two thousand and eight when hank paulson put a gun to congress and said give a seven hundred fifty billion dollars going to block 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 it 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. if it's right you later in the present united states simply say you guys are breaking 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 and given a 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's 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 he 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 that's fine now they're buying gold aggressively so he's not the maestro izzie is just another one of these you know. fraud tattling 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 the sky is easy try 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 the minute he's very slippery about how he is you know what's his position but he is allowing readers to draw the inference that or would be a good thing for the american economy he has never said so but the way he frames his policy prescriptions in the various 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 although not actually or explicitly said that a war would be a good thing for the american economy now i personally find this despicable and i have said sir i go to pieces about him one right 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 with 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 new no clothes well i can't use saying through infer and so 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 is ask

ourselves 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. interest rates interest rates i mean look i was as i said this and in my writings you know if paul volcker were a rock star i'd be a scream fifteen year old girl you know he is my hero because in one nine hundred eighty he raised interest rates were 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 get started which is what her name and now mr krugman are arguing for you know control moderate inflation which is ridiculous but here. 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 bad

paul krugman took tremendous political will and criticism at the time for his you know expensive money you know high interest rate. so you should too the inflation problem but he recognized that a 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. 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 well managed now mr volcker managed it exceedingly well and he showed the 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 and of

course chemotherapy use sometimes almost as bad as the cancer but in the end will get better now in the high interest rates that he applied lead to a severe recession it states. that so you 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 a very very soon because as you know i'm sure your audience probably knows commodities are right in precipitous 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 realize gene be let out the bottle but because the economy is so weak they will not be able to. interest rates in order to.