the british style sign. on the front. market. has come to. find out what's really happening to the global economy with mike stronger for a no holds barred look at the global financial headlines kaiser reports. if blinds. were to be soon which brightened if you knew about sun from funds to. meet for instance on t.v. .

cool. more news today. again fled up the phone these are the images the world has been seeing from the streets of canada. china operation today. look.

there you watching got a look at the main stories we're covering this hour front says paralyzed by further violent protests against cutbacks and pension reform the rest broke out after government announced plans to raise the retirement age from sixty to sixty two is now turning towards the writers for making the country's dire situation worse. gets ready for a new man as the city parliament votes on except in certain cases be on it as a new man at the top. of the sea as proposed by some to be tryna get it signed for the city's previously off the last of the trust. fund prosecutors are to look into other occasions of child abuse one approaches the oldest condoms teenagers they say between belts when it's finished with sleep deprivation and nuns going to games.

next and his co-host stacey herbert talk about currency wars what they could do for the u.s. and the dollar that's in the kaiser. max kaiser this is the times the report markets finance and scandals and as we've been reporting on this show for months the global currency wars are heating up forget states forget nations it's all about currencies i mean the currency war let's bring in stays here max they do say that all stare in love and currency wars

and you see that in the very first headline max kaiser's investigation into deutsche a buddhist bank's gold farce goes global the germans are about to have sixty six percent of their gold reserves commandeered by the u.s. so this follows a interview that jim rickards gave to eric king at king world news and he was asked by eric king what would happen if the dollar collapsed and tim record says well it's ok because the u.s. could go on to a gold standard because they have eight thousand tons of gold but then listen to the rest of us what he says and in addition to that there is over six thousand. foreign official gold that stored in the united states but we could always convert if we wanted to do it but all the pros are back your you know states could just secure

a military convoy move it to west point or something though secure us well cation of it just give it your c yeah well the key word there is convert well you have to explain this to us max because it's like one of these financial words perhaps like securitization a fancy word for something else perhaps stealing. yeah the germans have sixty six percent of their gold bullion held in new york and what jim records are saying. thing is that in the global currency war were gold ultimately becomes the winning currency the u.s. has the option simply to commandeer the six thousand tons that they hold for various foreign banks including the german foreign bank for reserves held in new york and they can simply appropriate that gold and they can ship it off to a secure location and they therefore would have six thousand tons in additional to the eight thousand tons and for not giving them fourteen thousand tonnes they also produce something like twenty percent of the gold every year in north america in

the u.s. so this makes the u.s. as the records says the saudi arabia of gold he also goes on to talk about having this alleged gold having the alleged eight thousand tons of gold and by the way it hasn't been audited since i think the fifty's or something a full audit and having this six thousand tons that they claim they can just confiscate from germany france and other nations that have some gold in the u.s. in a way the fed can afford to trash the paper. experiment and risk trashing. the dollar go out we could just go back to pretty easily but the worst to work can . the u.s. is trying to win the currency war right now by creating tens and tens of tens of trillions of new paper dollars to debase their own currency to try to keep the u.s. competitive somehow versus other other countries to currency are on the way up as

a result of the u.s. giving itself a self-inflicted gunshot wound to the head of the economy by flooding the world with trillions and trillions of dollars more dollars and so this is plan b. if the u.s. doesn't win the war this way if the rest of the world decides you know what like for example china says and i've talked about this on this show before. if china is the first to monetize their gold supply they would affect be the winner as per the nash equilibrium or game theory because a lot of money would suddenly flood into china they would have a gold backed currency and they could win this gold and currency war if they were the first to move but i'm not sure if china is that agile on its currency feet well jim rickards to put this into context he is a man who has advised to a u.s.

government on many occasions he does meet with the treasury so this could be seeing into the mind of what is going on behind the scenes and we do know that many central banks have been buying gold in the past year for the first time in decades central banks are now net buyers of gold. on the other hand you know the other big story going on in the participation the currency wars is the collapse of the u.s. mortgage market and why that's happening of course is because the banks bought credit default swaps that insurance that their customers would default and therefore they were incentivized to have their customers the fault so i do wonder if china is also who have they bought many credit default swaps on u.s. debt and actually maybe they're encouraging them to go into debt and default because maybe they might actually make more money i mean that's an interesting point if china has the credit default swaps in sufficient quantities to benefit from the collapse of their dollar investments they could make two or three times

back the money they lose on their dollar positions this is insurance fraud credit default swaps it's like buying insurance on a house and then torching valve so slowmo says if a bank like goldman sachs would have sold credit default swaps and so prime mortgage products to banks and then sold those banks short and sold those products sure to benefit from the collapse of the thing that they just sold them wait a minute they didn't do that but also it is kind of seems like a scene between this creditor and debtor whereby you know you often see the police in the u.s. corner a bad guy and the bad guy holds a gun to his head and the police hold a gun to him to kill himself but they often end up killing him so it's like that the u.s. is has a gun to its own head and the chinese creditor has a gun to them as well in this currency war this is the thing and the u.s. has got a gun to its own head is committing nation and and the rest of the world is giving

out a collective huge yawn. and saying you know if the us if you want to kill yourself we don't really care we can always play those movies you know we can replay the hollywood movies we know we've got a plenty and they're making the same movie you know or over again anyway you know godzilla part twelve or indiana jones borat nine i mean it's all derivative hollywood's gone totally driven they can just play the old movies again they don't need hollywood anymore they're made in america anymore a good boy or so-so we don't care so we've been talking about the currency wars and that was the big theme we said to look forward to in two thousand and ten it's now happening now what's going to happen going forward what do we see the next twelve months and one thing i have is this conflict this clash for for justice and recourse and i'm going to show you some headlines that show this oligarchies this corruption between the bankers and the political elites around the world sixty seven million five hundred thousand that's the headline and it's referring to the

next headline countrywide zillow settles lawsuit so angelo mozilo the former head of u.s. subprime mortgage lender countrywide has agreed to pay sixty seven point five million in an f.c.c. lawsuit to settle the lawsuit without the lawsuit actually going ahead not nothing went to court my fellow did not have to admit any wrongdoing so he'll always be able to be on the board of directors of another company and it turns out the bank of america is going to pay his fine which only ever amounted to fifty percent of what he stole basically in the last two years of the sub prime crisis this guy mozilla's like financial herpes. i mean is there is no cure for people like mozilla he was very smart in terms of in a mafia organization he had the friends of mugs l o remember he gave preferable loans to many politicians in the u.s. right so it is important to keep in mind that the mortgages were fraudulent lee written to begin with we now know that these liar loans and these no job ninja

loans that's fraud there doesn't comply with the law and mozilla over there at countrywide pocketed one hundred forty billion or something like that million million and he got caught of course and his penalty is to give back half the money he stole and not admit any wrongdoing in any way this points to something very interesting developing in the united states of amnesia and that is a complete breakdown in this concept of rule of law there is no more rule of law especially in this mortgage fraud you've got banks that break the law in issuing the mortgage break the law when they're foreclosing on the mortgage break the law when they're creating mortgage backed securities to sell to other banks break the law when they are making bets against the things that they themselves are supposed to have some fiduciary responsibility for and the list goes on and on they simply as lloyd blankfein as goldman sachs says he's doing god's work because he believes

he's above the law he believes he's the giver of laws and this is unfortunately the rest of the world is saying well i think we're just going to have to sell america short until it goes completely out of offline which you have to ask yourself is that such a bad thing and this brings me to the final headline see f.t.c. judge claims colleague issued biased rulings so judge george h. painter made serious allegations regarding fellow c f c judge bruce levine in announcing his retirement judge painter claims that levine told him that he had promised former c f t c chair wendy gramm. that he would never rule in the complainants favor painters notice goes on to say quote a review of his rulings will confirm that he has fulfilled his vow that's right so if you have a complaint that you were ripped off by a broker or a banker if you go to the c.f. c.c. or the f.c.c.

they are programmed to deny you even looking at your case they have no ability as i said before many times or when you open an account you sign off on an arbitration agreement that means that if you have a grievance you have to go before an arbitration panel that stack by the very people that you're complaining against now on the mortgage fraud front the banks are very anxiously trying to get people to sign up to modify loans by the thousands right now because in the documentation it removes her ability to pursue legally the wrongs that have been inflicted upon them it's illegal essentially because you're depriving people of their right to recourse recourse but that's all i'm saying is like you see a real live example of this in the c.f. to see but hold for every single level of this financial system up to the president there is no recourse that because they're all working together well this is going

to back to what will close up on this but basically the model is in the shipping industry you know the oil tanker business the oil companies figured out that the escape liability from the oil tankers that run aground out there and spill huge amounts of oil is to have flags of convenience so nobody actually owns these tankers when they run aground but they still collect the money if it gets to the side of the journey similarly the banks through repackaging and securitization can claim nobody owns these mortgages now few years later people are saying well nobody owns mortgages there's no way you can foreclose on me so now what the banks are doing is that won't that flags of convenience strategy work for a long time rob billionaires so now that people are. coming back and demanding to see the know we need obama to change the law and the senate passed a law within twenty four hours to change the entire state notary requirements which would have put all these guys in jail obama looked at it put in his pocket as a pocket veto presumably until the election is over then he'll revisit that then

i'll give these guys a reprieve they're all they will be allowed to the break the law willy nilly on mass thousands and thousands of times per day bankrupting every single body in the usa and thank you once again for being on the show today. thank you that's more of the same actually i mean hello peasant. oh me back and i'll be speaking with peter schiff so don't go away. every month we give you the future we hope you understand how we'll get there and what tomorrow brings the best in science and technology from across russia and around the world join your knowledge and update on our jeep.

welcome back to the kaiser report time now to go to connecticut to talk with the great peter schiff president of euro pacific capital author of crash proof and now peter is a radio show host welcome back to the kaiser report peter schiff thanks max yes my radio show that peter schiff show goes live today you can hear it around the world on ship radio dot com a monday through friday six pm to eight pm eastern standard time all right now. now peter you've done as a remarkable job popularizing economics but i want to move on to something which has come up on the radar of many around the world what's being called the currency wars and i don't know if you followed jim rickards buddies talking about the fact

that the u.s. can conduct their crazy monetary experiments as they're doing now because the u.s. has a plan b. which is that a gold standard backed by its eight thousand tons of gold could be augmented by an additional six thousand tons of gold held at the new york fed by other countries that store their gold that the new york fed there six thousand tons of it that the u.s. could simply seize that gold and put it under lock and key but what are your thoughts on this i haven't heard anything about rumors that we would nationalize gold owned by foreigners i held a news story here in the us i guess you know so i wouldn't put it past them but i do believe that at some point the world will return to a gold standard it's only a matter of time i do feel a standard we're on now cannot and will not work the only reason the world is honest dollar standard is because at one point in time the united states owned

ninety percent of the world's gold reserves and we convince the world to move from a gold standard to a dollar standard where the dollar was not only backed by gold but redeemable in gold on demand and once we broke that promise and i can seventy one the world has been on this dollar standard without any real gold backing it and we've had massive monetary and fiscal imbalances that have resulted and i think you know we are going to have a currency crisis as a result of this and the world will return people are not a reason block peter schiff you said quote the way you win a currency war is you don't shoot a lot right on this you know the currency wars are the only. wars where the object is to kill your own troops and that's basically what this is if the war is to see who can make their currency the weakest to see who can succeed in it piracy of citizens a fast i mean why would anybody want to destroy the value of their own currency everybody that works for wages you know they're getting paid in their currency why

would you want to shrink devalue that currency that's like giving all your workers a pay cut you know people have been saving in every country you have people who have been working their whole lives they've been saving why would you want to destroy the value of us savings why would you want to make the cost of living go up for your own citizens it's lunacy isn't it george orwellian world but you know the politicians want to spin it this way you know there's an old saying if you know you're getting right out of town right to the head of the crowd to make like you're leading a parade you know the dollar is going to go down anyway so why not for ten that it's a good thing that we wanted to have it you know inflation is going to rise anyway so now the government's trying to say that what we need inflation at this low inflation environment is a problem and that when we get inflation the government can say victory right now there's a common misperception out there in your view and from watching your block the idea of the orthodoxy that's being pushed is that in lower dollars is good it's always

good as you point out though that in countries where they have a strong currency and europe and germany for example that would go against this theory talk a little bit about why this orthodoxy that the lower dollars i was good is not necessarily good well unfortunately a lower dollar is something that's going to happen i mean it's not a good bank it's you know let's say your kid and you don't study for your exam and you get an m. the fact that you've got an f. is not a good thing but it's a natural consequence the fact that you didn't get to do your homework and because america has got it wrong for so long because we've overregulated overtaxed over borrowed over spent the punishment is that our currency is going to fall and all americans are going to suffer. you know it's not the know we should be proud of it's going to mean that we get less for everything we sell and everything we buy is going to cost more our collective standard of living is going to be diminished now a weaker dollar is part of the a part of the correction of these imbalances because we have these huge trade

deficits because our economy is now so a competitive we need a weaker dollar right it's not a good thing but it's going to happen. but what we don't need is a collapsing dollar we don't need a dollar to lose all of its value and unfortunately if we stay on our current course of monetary and fiscal policy we're not just going to have a dollar correction we're going to have a dollar collapse ok and if the point i have made also is that countries like germany and japan with rising currencies their export market is still quite vibrant and oh sure i mean look at that age of chinese are to be is at its highest level now says ninety ninety three so its currency is still rising against the dollar yet so is it strange surplus you know countries generally that have a strong currency and have trade surpluses in fact they go hand in hand if you want the country's products you need us currency to buy those products so if you have a good manufacturing base if you make competitive products at the world once the world needs your currency to buy those products and of course if you have

a strong currency you lower your own material costs you lower your interest rate on your capital cost so it makes you more pretty competitive ok now one of your main pillars of the peter schiff view of things as ban the idea of decoupling that the u.s. as you say is the caboose that's dragging the global economy once the globe cuts itself loose of this it will be better off now this is met with a lot of resistance i don't think i can think of anyone in the mainstream and even the blogosphere that's really on board of this concept but it looks like in fact you've got this decoupling happily happening right now going to speak about this well actually. just remember america's part in the global economy is that we're the consumer right we buy everything but is that really a vital part of the equation is specially when foreigners produce the products that we buy and loan us that might have paid for i mean there are billions of people

outside of america we're only three hundred million my argument is they don't need us you could take us out of the equation and nothing changes all the changes is who does it consume me if the rest of the world produces the products and then has the money to pay for them all they have to do is not alone that money to america's and leave their money in that in the pockets of their own citizens and let their can citizens consume i mean consuming anybody can consume i have an eight year old kid he can soon anything i put in front of he wants everything he sees it the ideas of produce things to make things to be productive and the world's got that i mean if you take the world out of the u.s. economy and what do you have black you have a bunch of consumers with nothing to buy you've got a bunch of borrowers but there's no money to borrow but if you take america away from the global economy you still have all the factories you still have all the savings the only difference is you have all these products that is that is sending them to america for americans to enjoy the products they outside of america for everybody else to enjoy we still have financial it global economies are financially

connected because we're all those low notes all this money and they expect to get paid back and as they find out they're not going to get paid back that has some problems and of course a lot of people saw the events of two thousand and eight when we had a global synchronized the kleine of stock markets and the dollar rose bay thought well gee that totally discredits the couplings i didn't think it was gradual spread it all mean i know that we have a financial coupling but once that resolved the economic decoupling is already well underway and will continue as the dollar loses value as the dollar loses value we become a smaller and smaller component of the global. conny and more and more people realize that if you simply let the dollar collapse it's not going to hurt all right left let me ask you this finally. in the real estate market of course we've had a huge crash i guess you could call it in your book crash proof you predicted the

collapse of fannie mae and freddie mac. which is of course the enablers to this huge real estate market and now at the moment with the foreclosure fraud investigation going on and with the job market not picking up it's hard to make a case that the real estate market has is balanced or will improve so we're looking for more i think downside and the real estate prices and in that whole market and this is ben you know the sub prime market back on the and the foreclosure fraud this is created this huge vacuum in the economy of imploding bond markets imploding mortgage backed securities what some may call deflation and there's a serious wave of deflation because all of these things are going into the ether now the countervailing force of the fed printing money has not really created price inflation it's created asset inflation we've seen it in commodities

and we see in gold prices but net net you still have this huge volume of billions hundreds of billions of trillions of of these imploding securities going forward and this is this is the tension i mean i would argue that number one the deflationary you're seeing is prices falling in terms of all so the price of just about everything has been coming down if you measure it with real money but if you measure prices with u.s. dollars they are certainly rising in some areas like commodities prices have been on a chair but also you know real estate prices are not falling they should be fall issued a fall and much more than they have. the reason they have not fallen was because of all the inflation that the federal reserve has created which has prevented by healthy correction in prices from occurring i their prices are also rising much more slowly then been rising slowly but they would have been falling had

a fed not intervene that is still inflation you know the money supply is still inflating in terms of dollars and ultimately that is the problem it is that this inflation turns into a runaway inflation. the flay shown is what we really need but we're not going to get it in his system in terms of u.s. dollars or a lot of people are still believe that you know they look back at two thousand and eight and they see oh this big rush to the dollar and a big drop in commodity prices you know commodity prices were cut in half in two thousand and eight but as i said at the time that was a head fake that was a jerk reaction that was a lot of people who did not understand the problem not understanding what to do about it you know a lot of people again they still try to discredit me by say oh peter schiff you know you predicted that the dollar would fall and look at rose it only rose in two thousand and eight and it rose because other people got it wrong not because i got it wrong anybody who rushed into the dollar in late two thousand and eight all two

thousand i does dollar's worth a lot less now than they were back then the dollar has gone down substantially the dollars at a record low against the swiss franc is at a record low against the aussie dollar it's at about a twenty year low against the singapore dollar almost a record low against the i guess the japanese yen it certainly had a record low against goal so it was the people who stampeded out of the dollar per they got it wrong and i still don't think they've stampeded for the exit yet i still think that complete dollar collapse is in our future and when that happens you're going to start to see price is rising across the board all right there seth thanks again for being on the cars the report thanks for having me and that's going to do it for this edition of the kaiser. are with me max kaiser and stacy herbert and i want to thank my guest peter schiff of europe aciphex capital his new radio show starts tonight if want to send me an email please do so at kaiser report and r t t v are you until next time this is max kaiser saying.