and.

hungry for the full story we've got it first hand the biggest issues get a human voice face to face with the news makers.

protesters launched another day of public sector strikes in france to maintain pressure on big government ahead of the senate but on pension reforms students marched for a march through the center of congress as the class is over the measures showed no signs of abating but support for protests is losing ground critics say they are only making the dice it takes to work. prosecutors are looking into the claims of child abuse in one of russia's oldest convents notices say they were severely beaten deprived of food and sleep or any modern preachment all the things the government denies the allegations. do you demands for an extra nine hundred million pounds in contributions from the u.k. i'm left with outrage as the country probables with the largest round of spending cuts and the second global the country has already announced plans to slash four hundred and ninety thousand public sector jobs as part of a multi-billion pound review of the aim is to reduce record debt and that's well

during the global financial crisis. that's coming up next is the latest edition of kaiser report with all this count from the world of finance. 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 forest 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 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 york you know states could just secure a military convoy move it to work point or so you know secure us creation event just get your feet yeah well the keyword there is convert where you have to explain this to us max because it's like one of these financial worries 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 where 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 tonnes in additional

to the eight thousand tons and for not giving them fourteen thousand tons 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 dollar. experiment at risk trashing. the dollar we could just go back to school pretty easily but the worst work can basically take their gold 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 of 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 back to 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 the house 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 their collapse and the things that 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 predator 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 of and of 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'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 don't need in the america anymore 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 zillo 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 help be able to be on the board of directors of another company and it turns out that 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 below remember he gave preferable

loans to many politicians in the u.s. right so i mean it's 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 is 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 c f t c judge claims colleague issued biased rulings so judge george h. painter made serious allegations regarding fellow c f t c judge bruce levine an announced in his retirement judge painter claims that levine told him that he had promised former c f t c chair wendy graham. 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've said before many times or when you open an account you sign off on an arbitration agreement that means 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 that documentation it removes your ability to pursue legally the wrongs that have been inflicted upon them is 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 t c but it holds 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 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 other side of the journey similarly the banks through repackaging and securitization can claim nobody owns these mortgages now a few years later people are saying well nobody owns these 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 act. coming back and demanding to see the note we need obama to change the law and the senate passed a law within twenty four hours to change the internal state notary requirements

which would have put all these guys in jail obama looked at it put his pocket as a pocket veto presumably until the election is over then he'll revisit that then we'll give these guys a reprieve they're all they will be allowed to to break the law willy nilly on bass 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 just more of the same actually i mean hello president. only bad and obvious speaking with peter schiff so don't go away. like millions of americans i've lost thousands of dollars in retirement funds and i haven't had as bad as many it's not just about the debt it's about me to.

need it. now. since this is i get the last word this financial crisis will not be turned off like a light sleep. sure is the same or different and there's a huge decision. in the market as the western powers do their best to isolate the islamic republic iran itself has demonstrated it remains a cheap player in the greater middle east.

we are linked. just. a note of. 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 i you can hear it around the world i'm chip radio dot com a monday through friday six pm to eight pm eastern standard time all right now to now peter you've done 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 at the new york fed there are 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 it's true 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 the 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 convinced 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 q seventy one the world has been on this dollar standard without any real a go back 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 vod peterson if you said quote the way you win a currency war is you don't shoot a lot right on this you know the currency war is one of 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 a time machine of citizens a fastest 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 to value that currency that's like giving all your workers a paper but you know people have been saving in every country you have people who have been working our 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 it's a 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 run to the head of the crowd and 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 of like the idea of the orthodoxy that's being pushed is that a lower dollar. is good it's always good as you point out though that in countries where they have a strong currency in europe and germany for example that would go against the spirit talk a little bit about why this orthodoxy that the lower dollars always good is not necessarily good well unfortunately a lower dollar is something that's going to happen i mean it's not a good thing it's you know let's say you're a kid and you don't study for your exam and you get an m. in fact that you 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 is nothing that 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 a part of the correction of these imbalances because we have these huge trade deficits because our economy is now so one 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 at 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 the age of shiny is already be is at its highest level now since ninety ninety three so its currency is still rising against the dollar yet so is its trade surplus you know countries generally that have a strong currency they have trade surpluses in fact they go hand in hand if you want to countries products you need us currency to buy those products so if you have a good manufacturing base if you make competitive products in the world once the world needs your currency to buy. products and of course if you have a strong currency you lower your own material costs you lower your interest rate and your capital costs so it makes you more pretty competitive ok now one of your main pillars of the peter schiff view of things as band the idea of decoupling that the u.s. as you say is the caboose that's dragging the global economy wants think global cuts itself loose of this and 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 can you speak about this well absolutely just remember america's heart and a global economy is that we're the consumer right we buy everything but is that really a vital part of the equation is especially when foreigners produced the products that we buy and then loan us the way to pay 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 can take us out of the equation and nothing changes all the changes is who does it could sue 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 that in the pockets of their own citizens and let their kids citizens consume i mean consuming anybody can consume i have an eight year old kid he can shoot anything i put in front of him he wants everything he sees it the idea

is to produce things to make babies 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 instead of sending it to america for americans to enjoy the products stay outside of america. for everybody else to enjoy we still have financial it the global economies are financially connected because we're all this long lost 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 secret eyes the client stock markets and the dollar rose based bauble gee that totally discredits the couplet i don't think it was gradual spread it all i 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 economy and more and more people realize that if they just simply let the dollar collapse it's not going to hurt all right love let me ask you this finally. in the real estate market of course we've had here. 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 bounced or will improve so we're looking for more i think downside on the real estate prices and in that whole market and this is ben you know the sub prime market is the 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've seen 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 goal 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 an issue to fall on 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 i 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 feet i system in terms of u.s. dollars are a lot of people who still believe that you know they look back at two thousand and eight and a c.e.o. this big rush to the dollar and a big drop in commodity prices you know commodity prices were cut in a.