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in some petersburg she's available in hotels a story an. ambassador in a small school to kowtow to triple a soto a true school toto gold to gold and no tilson to. live in a sea of kindness even if. you are with all the headlines now moscow was cold thailand's extradition of russian businessman victor boot to the u.s. illegal washington accuses the so-called much into of death of trafficking arms to dictator son in conflict zones around the world. the u.s.

and afghanistan are trying to downplay rumors of a dispute between the president karzai criticize washington's tactics in his country meanwhile human rights activists claim there are cases of prisoner abuse waiting to go public. and the e.u. president warns the failing euro currency could drag down with. portugal could be forced to accept bailout money to save their economy. and for now financial guru sheds light on the manipulation of world markets and asks why those behind the scenes and never seem to be held to account the cause report is next thanks for watching. max kaiser and this is the kaiser report the blazing war around the world of

seavers versus speculators harbor tell me max that is the big theme this year and we see it in the currency war we see it through the whole emergence of the g. twenty replacing the g eight the creditor versus debtor nations the first headline however kneepads intel moody's response today gongs downgrade of the u.s. by upgrading china to gong yes well moody's upgraded china but this is two days after china's new state credit rating agency de gong downgraded the u.s. and they wrote the downgrade reflects america's de terrier rating debt repayment capability and drastic decline of the government's intention of debt repayment gosh i was dig around ten years ago or fifteen years ago they would have given lehman brothers a poor rating said of moody's giving it a plus rating they would have given bear stearns

a poor ringing instead of moody's giving it a high rating they would have given all these credit default swaps and mortgage backed securities bad ratings instead of moody's giving it high ratings moody's s. and p. bitch in bed with the devil on wall street goldman sachs j.p. morgan the fund managers the five fingers of death with their hands around the through global economy killing a life of a choking it don't have to go wrong lesson big day gung president of the united states get rid of obama well speaking of obama here's the headline china may be bigger economy than us within two years this is on a purchase power parity so it's not in dollar terms but in terms of what they can buy with that income. so but notice the photo in this headline obama is barreling to hu jintao this is the relationship that it's very important to understand dead air versus credit or saver versus speculator that's mobile. you

know they are also the u.s. of course operates on a trickle down sort of thing well i have some photos from the u.s. as well and you see it trickling down this whole kneepads mentality and see this little picture of this baby here babies are practically being born with knee pads on all the way up to old age here some to old people running around and there was jim rogers of his kids are learning mandarin he was ahead of the curve on this yeah but his kids don't have a need pads no they stand tall to their chinese occupiers. so as you know i was showing these photos of the trickle down. yes headline reads millions of britons living beyond their means so this is a new survey and found that almost seven million brits are living beyond their means and refuse to alter their lifestyle despite the recession roger edwards who conducted this survey found that even in an age of austerity the public's spending

shows no sign of waning as the average u.k. adult continues to spend beyond their means and rack up debt worryingly this is mainly due to that average salary being far short of that needed to lead a comfortable life david cameron did a means testing over there in the u.k. what he found out is that nobody has any means what exactly so that people are going into debt because they can't even afford the basic services and food and water and think you know basic ingredients and this is the same in the u.s. isn't it in other words the producers are in other countries in the consumers or in the u.s. and they've been able to keep this state. disequilibrium alive for decades by artificially cheap interest rates brought to you by the financial terrorist alan greenspan and ben bernanke i say bring back a man like tall paul volcker the see that's the only solution america back in two

thousand and seven they could either have gone austrian hard money or kings in soft money paul volcker of course back in the seventies shows hard money quick three year recession followed by epic growth. right now we've got policymakers that are choosing keynesian which means a big marshmallow pie of nothingness and continued last decade and the one thing you see is always the ruling class the elites the bankers always do well and it's the populations that turn on each other so in the u.s. you see you know the red team the republicans are in and there's a lot to do with older people and the reason why these older people voted them in is because they think that the republicans will actually maintain government health care medicare but they want it cut for the poor people medicaid and you see this kind of dynamic working out in the u.k. when we had all these protests student protests in london conservative headquarters attacked us as milbank tower which was conservative headquarters david cameron was

seen carrying in the corner of his office cameron supposed duracell's them from the tory party cowering under his desk while students showed up demanding they have these debts repudiated as they rightly should remember when the u.k. introduced the fees to begin with for university students they call it top won't be zero it sounded so benign oh a little top of the has gone up every year substance now it struck only in the students to write go down there show dave cameron you mean business well the interesting thing about this as well is that it wasn't reported in the press but i did receive tweets from people who were there and they were saying that i did my tweet by the way and i tweeted you know i didn't but but m i five apparently had barricaded themselves in behind their yes this is the security services and that's the james bond outfit now that's m i six but m i five is the domestic the equivalent of the f.b.i. but in the u.k.

and they apparently barricaded themselves in but let's move on to the next headline and let's see where they're heading towards in the u.k. they're fighting the austerity measures of course in the u.k. and what we saw previously is. greece already had there are certain measures and what to do it said to spiral yes so revenue is down drastically and the deficit keeps rising because revenue is collapsing people are losing more and more and it's deflationary spiral you're seeing that in ireland last rites for ireland and that's a pretty dramatic photo from this max keiser dot com headline the photo caption reads irish governments slash that through i.m.f. new austerity measures the picture shows a dramatic a still ball being crushed by the i.m.f. austerity spell lower argentina you know let me just point out that brazil of course a few years ago they said to the i.m.f. they go pound sand we don't want your stinking money no more and of course they're

doing brilliantly well now and countries who take the i.m.f. money mean it's affectively taking money from tony soprano and a bunch of those over there in new jersey so go back to ireland max there a plan is in development to sort out the irish problem to provide a greek style bailout to ireland according to handle a german newspaper so apparently all the rumors are that there's a big bailout coming you know well of course that's what they live for big bailout because they get the fees they don't actually provide anything useful to your economy go look those financial services. well this is the pattern that we saw in the third world in the developing world for much of the seventy's eighty's and ninety's which is the likes of citibank would go into argentina lend out lots of money they would go into the world bank lends out lend out lots of money to the dictators the dictators would flee with the cash the population was left with the debt they would go bankrupt the i.m.f.

would come in make whole those debts to the city banks of the world and the population was left of that so that i am as is the bag man that comes in to sweep up it's the sweeper the cleaner if you want your own mafia movies. the mobs that lot up from the floor yes i saw that recent episode of some some show about gang gangland killings in america the cleaner one of the architects of this whole thing that we see or find ourselves and dr mengele know who is close to alan greenspan i want you to look at this little video of way he says about the problem with the global financial system at the moment there are two fundamental reforms that we need for good. too good for fire of levels of force. statute to streamline to merge and. things were done which were. through the room. for prudence

reform. who would create a very considerable. competitive market in terms of crossing borders. strong. well alan greenspan is a dork and a face a terrorist he should be up on war crimes but basically all the problems that the result of the fed's artificially keeping interest rates low have resulted in the growth of fraud in other words you need to distance center vies fraud you need to make the cost of money high enough so that the risks associated with borrowing to start your fraudulent activities are diminished if you make the price of fraud so cheap that any goombah can borrow billions and start anything crazy scheme that they can concoct in their diseased mind like a bernie madoff and then if they get caught they either go to some celebrity

country club jail or pay a small civil fine or get put on the cover of some time magazine then you're not going to stop the flow noria well importantly earlier in the year we covered the fact that brooksley. bourne was fired forced out of government by alan greenspan and larry summers because she wanted to regulate against fraud she was shocked to learn that alan greenspan told her over lunch that he believes the markets are better at regulating fraud and he is against it so now he's saying oops when he safely away with his pension fully intact yet he's working for over there pepco with bill gross advising pimco and the tories front runner an insider trader so you guys make good money doing fraudulent activities while in office out of office you probably can't go to the bathroom without committing some fraudulent activity thankfully my final note here this was sent in by a viewer of the show who actually is using one of these mac's kaiser gold coins here's a picture of oh i sent an email to demanded evidence that put my picture on the new

russian global gold coin not haven't heard anything back yet and then finally max you know those gold coins as max keiser gold coins might come in useful for the final savers versus speculators dead or versus creditor bubble of all jeremy grantham the fed is creating its last bubble. so he said to. what i worry about. the fed's activity. q e two is just the latest demonstration of this the fed has spent most of the last fifteen twenty years. in the stock market whenever they feel the economy needs a bit of a kick well yeah i mean that's the that's the basic point is it is that the banks have committed all manner of embezzlement and fraud in the u.s. and in the u.k. and to accommodate for that from the federal reserve has expanded its balance sheet by trillions to try to swallow that fraud why they did that is really hard

to figure out because all they've done is effectively thrown the entire american economy under the bus which is what the rest of the world. saying now they're saying we don't want any more dollars there's now a currency war going on in the u.s. is holding you know the worst hand at the currency poker table. all right stay server thanks so much for being on the kaiser report thank you don't go away much more coming away. moving. from funds to.

start on t.v. don't come. all right welcome back to the cause a report let's now go to new york city and talk with money manager michael krieger you can find michael's work at the fabulous website zero hedge dot com that's the site to go to these days for all the insider stuff and also max factor dot com michael post of my site as well michael kroger welcome back to the kaiser report max great to be back thanks for having me michael krieger talk to me about robert zoellick he's calling for a debate right now on a return to the gold standard he's talking about gold what's what's going on is he lost his mind yeah no i think i think this is just another another piece of evidence in the in a broader theme that i've actually been writing about which is that many of people in enormous positions of power and wealth in the united states and indeed in the western world at this point are having being forced to address certain issues that

people in the alternative media like ourselves have been have been discussing for years and years and years now and the first one that i mentioned was you know bill gross i wrote about this two weeks ago how he even mentioned you know that the treasury market is a ponzi scheme and you know that's what bernanke he was doing so i think zelic is just another example of someone having to address on our terms or people that want reform in the system on our terms for for example we're not changing our our our level of conversation where we continue. the hammer down on these points gold you know the glass steagall financial reform real financial reform and they keep trying to push back and just pretend we don't exist but i think this acknowledgement that the market is is saying that gold matters is a huge victory for the alternative media for people that want reform for a change in the financial system so that's that's really how i see it even if he doesn't mean it even if he's just throwing it out there was a bone to sort of appease us it's still a victory right well in fact the world's been on

a gold standard since the beginning of time it's just a question of how how badly the number of turns see ponzi scheme willed and derivative nincompoops have been allowed to inflate their mountain of paper versus generalizing supply gold and then periodic lee sanity comes back into the equation and gold is once again use as a reference point for currency transactions and paper bugs like joe wiesenthal over there in business insider dot com are just disappear from the face of the earth now michael krieger thought to me about the u.s. because they stand to be the big loser in a post u.s. dollar. currency reserve note world well that's that's exactly why i don't i haven't analyzed the xela comment in too much detail just because the u.s. pushed back to that would be would be extraordinarily extreme and so yes we do have of course the most to lose lose we can print money out of thin air and buy resources with it and fund our military and essentially have the empire so so yes

of course the us has the most to lose in the short term but actually in the long term assuming that we have the eight thousand tons of gold that we sensibly have we actually have a lot to gain in terms of liberty in terms of a free market in terms of a cultural renaissance so actually in the long run this would be the best thing to just happen so we can get to reality i think in the long run having a feel currency empire which would then translate into a you know gulag police state of course because the small few that have everything would need to suppress the many that are be. fleeced essentially that would be the worst cases situation the wrong one so for the for the elite that have everything it's of course a bad thing but i think for the general population myself included it's a great thing i don't i don't want the empire i don't want the currency standard i think it's it's bad for the world and it's bad for the average citizen in america let's talk mathematics here for a second people say oh there's not enough gold to create a gold standard of course failing to take an accommodation that there's something

called price discovery mechanism so the price will rise to the level where you could have it effectively you could have effectively a gold standard jim records again he says that if his estimation is if you look at the amount of currency in a measure like i think he uses am one. to do this calculation of by the above surface tonnage of gold he comes up with the price of around five thousand dollars an ounce to create a clearing mechanism is this or do you see that as a possible number or higher i think when i've sort of thought about things in my in my head based on a lot of different calculations i look at five thousand to ten thousand seems like where i think things are going to stop of course i think the dow will be at an equal level so if gold goes to five thousand the dow will go to five thousand gold gets to ten the dow will get to ten so i do believe that one to one ratio as far as trying to back currencies buy gold from a bureaucratic or political level i don't really have a strong opinion on that and i'll tell you why the reason is because what always ends up happening is you know if you read history is the government will come out

and say oh well our currency is backed by gold and you can convert it at this price well within ten fifteen twenty years they cheat they lie they print too much and then all of a sudden you can convert so i'm more in favor of this idea of a free market money system where you know others have talked about this where through the use of let's say gold money dot com or digital gold grams right as long as you allow legally people to transact in gold or silver whatever they want that's what i think is the best the best answer that people can decide ok while. want payment in gold and you can pay it you know you can transfer gold grams from here to there or in silver or whatever but i just don't love the idea of the the let's say political politicians taking control of this debate i think we need to keep this debate where it is which is free market money and whatever that whatever the market determines it wants to transact and let it transact in that if they want to transact in dollars fine if they don't fine but don't tax the transactions if you want to do it in another form a commodity form that's where i come down on this yeah well it seems some brokerage

firm on wall street will jump into the mix here i mean i remember i think was a sack in the seventy's when merrill lynch introduced their c.m.a. account i think it was called or they sweep all of the available funds into a money market and this was the work that turned them into a giant for that period now what it what about a money market account effectively that's gold bullion as a matter of fact i talked to james burke about this personally in a lengthy conversation when he came through paris a couple of years ago and over there gold money dot com they're exploring this possibility but to have essentially a gold money market so you're and all you're doing is dealing in gold gold bullion you so you proceed gold standard from that and you make it a free competitive market if you want to own gold silver or some other field currency you have that option precisely so think about it right the big knock against gold was really one of the big knocks was always will you have to carry all these big heavy coins in your pocket that's ridiculous right we don't we don't we

don't most of our transactions are not in cash right now anyway we're doing digital transactions so if you have digital gold that is audited and then you transfer that from one party to another that's that that to me makes the most sense right you don't have to carry pieces of coin in your pocket at all but you do have when you at least you know when you're on the other side of a transaction that you know that you're getting transferred x. grams to your account that is audited and that's where i think that's what i think we should be thinking about so i don't like the idea that's why the zealots think i don't like the idea of the. of the politicians now you take co-opting gold let's say right and then coming up with a new fake currency that they proclaim is backed by gold then within five ten years it's not anymore and they're like well well that didn't work out for us so now we're back to a field s.t.r. something that's i think this is something we need to be very vigilant on and not allow them to to tell us what money is we can we can decide for ourselves what money is now let me let me change gears here for a second or actually stay on the same topic my favorite topic gold. over there does

your edge dot com and the gang tyler durden and the singer and those and those folks they seem to have some real good information about what's happening in the banking sector and of course their site is a wild success but let me ask you something here you've got recently the c.m.e. who's raising margin requirements for silver position holders and it looks like a direct in no attempt to swartz this rising tide of summer ownership by what i call the gold and silver vigilantes guys like john embry up in canada and sprint asset management who have made it their mission to take physical delivering to bust the c.m.e. and to bust the comebacks are those are who's going to win in this epic battle or is it going to be the vigilantes or is this the c.m.e. and the comb action the same corrupt regulatory thought going to prevail again who

are you picking in the book i think i think it was a another it was a sign just like q e two was a sign of desperation from the fed. that what the what the c.m.e. yesterday did was was to me a sign of desperation yes silver was going up a dollar a day it looked like it was going to thirty to thirty five etc and yeah there were people on the other side of that position there were probably people with influence at the exchange on the other side of that position so with the dollar rally and and the and people like to set up these trades to cause lemmings in the financial industry to say oh well that's an outside. a reversal plus the dollar strong this means that's the silver top that's what they're trying to create so that the shorts can weasel their way out of the their positions as far as i'm concerned they cannot win in my opinion because every single day thanks to shows like yours thanks to zero hedge thanks to you know people writing about it more and more people and i can tell you this for a fact as i i described i have a better very big i talk to people every single day it's exponential the awareness and the the amount of people that are fighting back buying the physical taking

physical delivery the silver market is tiny there's nothing that they can do zero as far as gimmicks and trades yes but the big lesson to me here was don't trade on the comix you know what why are you doing that anyway i think it's a losing battle you buy physical silver you take delivery or you do it through gold money or you buy the equities of the mining so the silver mining companies but. you're going to get you're going to get fleeced eventually you're playing their game it's bad karma in some ways i remember during the one nine hundred eighty s. during you had two things going on you had to greenspan put which is to say every time stock markets traded down greenspan would lower interest rates to make it cheaper to buy stocks and be and there was a montra that everyone followed by the dips you know that was the answer to everything was the market doing buy the dips so i would say the same thing that got the beijing put every time gold comes in china is going to buy it because they've got to help themselves against this currency garbage us dollar plague and buy the

dips you know take the same approach and take those shorts out on a straw jar i wrote a piece two three weeks ago that said this is every built american bought one ounce of gold yes ok that's seven that's seven thousand tonnes that's fort knox that's two and a half two point eight times global annual mind supply yeah well look let me just show a bit of a second because their work there's a campaign out there in the in the u.s. were to move your money from the money center banks to your local bank that's nonsense because the big money center banks are just going into buying those smaller banks anyway through. all day should it really want to kick the banks in the gonads you gotta go out and buy an ounce or not a silver or an ounce of gold today right now yeah it's the look it's the achilles heel of the entire corrupt ponzi scheme financial system is the precious metals markets right it doesn't take a genius to figure this out once you figure it out and you don't like it and you will you will act upon it and ultimately the paper ponzi scheme system collapses and i and i actually i wrote this two weeks ago and i don't know you may disagree

with me but i believe that we've already i believe that our side of the battle is a winning now i believe that that we've crossed the rubicon it's no longer a fight you know so that's a big deal and i think it will be one but but two weeks three weeks a month ago no was more evenly matched and the fact that bill gross is talking this way the fact that zoellick is talking this way the fact that a lot of a lot of folks out there it's not just them are talking this way this is a sign zoellick is a career bureaucrat will he choose we're going to any any you know himself any way i get i'm going forward he's just a salon monkey you know he has no intelligence you just go with the truth. holik he's nothing we got it we got it we got to wrap it up there michael kramer thanks again for being on the kaiser report thanks max always a pleasure all right if you want to find michael's work you can find a med zero edged out gum or max kaiser dot com and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert if you want to send me an e-mail please do so at kaiser reporting r t t v are you until next time

this is max kaiser.