is redecorating as lush headquarters in washington d.c. yes the banking scandals continue let's bring in steve server i'm here at heathrow in a little back office at heathrow trapped waiting for that one centimeter of snow to clear so i just want to bring up you know you're at the heart of it all are kind of at the heart of it all about heathrow you're in a london and i want to say you know it's we're doing the sons of course has been let out of prison in the last week and i want to call attention to this tweet of his does your business do business with bank of america our advice is to place your funds somewhere safe oh stacy i love this tweet and i love this julianna saunders these basically doing to the bankers what the bankers are doing to us the bankers put a gun to our head and say give us all your money or we're going to blow ourselves up and everyone around us now julian assange just figured out that he could return

the favor and tweet bank of america and say look if you know longer accept payments on behalf of those trying to send me a few bucks we're going to shut you down that's wish it be the people who should be shutting down the banks they are just well you know you might want to call our show kaiser leaks because there was and there was recent cables u.s. embassy cables were van king says in march two thousand and a bailout fund needed so this is monday march seventeenth two thousand and eight and max you and i happened to be at the buddhist bank that very day and in this cable. mervyn king sent a memo saying banking crisis now one of solvency not liquidity so king at that time who is that obviously the head of the bank of england suggested that the u.s. you. ok switzerland and perhaps japan might for

a temporary new group to jointly develop an effort to bring together sources of capital to recapitalize all major banks that's right in the solvency not illiquidity what does this mean it means going back to two thousand and eight when hank paulson went from congress and said give us some money to cover our bills for a few months because we are illiquid he was a lying he did not tell the congress that the banks are insolvent had he been truthful then congress would have shut down the insolvent banks and they would have created some new banks that were not run by frickin financial jurist like goldman sachs j.p. morgan he'd lie now mervyn king told the truth but of course that information did not get into the public domain it's globalization for the bankers when it's convenient for the bankers but everyone else of course does not benefit from having globalized information except for wiki leaks and julian sun best life so dangerous

by those who want to keep the system as it is by siloing information and accessible only for the most corrupt of the kleptocracy in the u.s. the u.k. and around the world the other thing that is important in this cable that was leaked is that mervyn king told us embassy officials that it was quote imperative to find a way for banks to sell off under wanted illiquid securities including mortgage backed securities without resorting to sales at distressed valuations king said sales at distressed values only serve to lower the floor to which banks must mark down their assets in predecease mark to market thereby forcing unwarranted additional write downs so they're saying that they don't want capitalism they they them. so as you see this command and control action in action right well this is

the key is that in other words the real estate market in america became securitized that is to say all the mortgages that were fraudulent salt's of these poor people all over the world particularly in america were packaged up and resold in the wholesale market and then when the real estate market started to collapse a set of having the securitized mortgage also collapse those securitized mortgage pools were capped at one hundred cents on the dollar and for three years they've been playing hot potato with hundreds of trillions of dollars worth of bad debt no bank willing to admit that it's sitting on huge losses and they keep going to the central government central banks and asking for more cash because they say it's a liquidity issue when in fact it's an insolvency issue the government's of course of run out of money so they're imposing austerity onto the general population greece ireland all over europe soon in the u.k.

of course huge austerity measures soon to be in the u.s. why because the banks refuse to admit that they're sitting on a toxic loans that aren't worth even two cents on the dollar that's what needs to happen it's not happening and no leadership in america obama's not doing anything about this no one's doing anything about this and that's the tragedy is that all the money that they spent to bail out the banks has only gone to feed the banker bonuses and has done nothing to resolve the problem these debts are still on the balance sheet and by my sources there are still twenty trillion in bad debts yet to be disclosed that's on the total global g.d.p. of roughly fifty trillion imagine that another twenty chilling of bad debt yet to be disclosed aside from the fact that as you mentioned the debtors in society had to mark down their mortgages their home prices by huge amounts up to fifty percent in some parts of the. erika those who actually save have also been

penalized massively by the likes of mervyn king because interest rates were slashed so here's a headline that is in the news in the u.k. investors told forget savings accounts think of shares so britain's thirty eight million savers have been urged to invest their money in the stock market after being warned that for many of them it is now a waste of time putting their cash into a savings account this is propaganda that is created by the city of london and was st and other investment banks around the world and they're getting away with it in other words to suck in hundreds of billions of dollars of fresh cash to bail out more losing positions there are allowed to go out onto the public airwaves and encourage people to move money into the stock market while at the same moment the ratio of insiders selling to buying is at

a record high there are something like eighty to one hundred insiders selling stock for every insider that's buying stock what are they doing at the same time encouraging the public again not disclosing this information in a meaningful way to rush into the stock market they will of course lose their shirt again like they did in the housing bust the dot com bust and all the other crashes that they've engineer for the past ten years as part of their scheme to defraud the world because they're fricken financial terrorists over in bangladesh we see a possible future for what it will look like in britain should the thirty eight million savers in britain listen to these so-called experts in the telegraph and take out their savings and put it into the market bangladesh investors riot over stock market fall so you see this picture here of bangladesh bird. stuff outside

the stock exchange and the caption under the photo reads ordinary bangladeshis have been tempted into the stock market by higher returns than banks so that the stock market on sunday fell by six point seven percent and investors were very angry because ordinary people were being paid very low interest rates at the banks on their savings and they all went into the market the prices on the stock market rose by eighty percent this year and now they're all being wiped out the people they said that sold were the institutional investors the big the big investors that's right central banks lowered rates down to zero to help bankers simultaneously penalizing pensioners and savers who are then getting zero on their returns there again shifting all the burden and the risk that the bankers incurred onto the balance sheet and the households of the people had nothing to do with creating those risks now the bangladeshis around the street riding because they

were sucked into another scam and the markets crashing we'll see the same thing in the u.s. and markets around the world because all those hot money coming into the markets now is being met with a wall of supply by the insiders who are going elsewhere with their cash and getting out of these stocks it's remarkable it's propaganda see n.b.c. in america for example they have this guy james cramer who stomps up and down encouraging people to buy stocks he is basically the propaganda minister for wall street and he should be outlawed in my opinion well max actually speaking of what the insiders and the smart money is doing there is a headline in which again you factor in this campaign of the crash j.p. morgan by silver has i read j.p. morgan caves and unwinds massive controversial silver position so that story reads the banks outsized role in the commodity market was controversial and it seems the bank has caved it told the fine. national times that it has meaningfully

reduced its role in the market and that its new position was quote unquote materially smaller though whether that position is net short or neutral is clear the bank says the decision was purely the result of it wanting to reduce controversy stacey this is the second exchange this year we've crass remember earlier on there on the show cause a report we exposed the fraud by cantor exchange account for general the shutdown foreigner everybody what don't this is now we're going to j.p. morgan a bigger fish in the wall street pun we're going to take them down we're going through it julie dispose really well with you body sold out of my man we're going to take it down what else you got this final headline kind of blends those two campaigns together the one against the box office futures contracts and j.p. morgan and their control and stranglehold over the debt based currency system you know led by ben bernanke and the central bank could that we could leak scandal lead

to new virtual currency so you know as we talked about at the top of the show julian assange luncheons bank cut off from this debt based system you have without access to credit without access to your debit cards to your you know your your actual credit card if you can't if you don't have one of those cards that people accept your cut off from the whole financial system so as wiki leaks has it has bent you know they're being attacked by the various of banks around the world so one solution is bitcoin and this is it different because there's no central bank or other kind of controlling interest it's entirely decentralized bitcoins are transferred between individuals or businesses by specifying their bitcoin address and then transactions are conducted through a peer to peer network so there's no single point of weakness and nobody can stop the bitcoin system or so. censor it short of turning off the entire internet yeah

that's fantastic you got to have both the digital currency's p.d.p. network take on the banks while simultaneously loading the bow was stacy ever thanks so much for being on the kaiser report thank you max when we come back i'll be talking with mike maloney over there gold silver dot com all about the trends of silver so don't go away.

i welcome back to the kaiser report time now to go to sunny los angeles and talk with mike maloney of gold silver dot com mike is the author of rich dad's guy to investing in gold and silver and he has been traveling the world making some fantastic videos about gold and silver you can find him all at gold silver dot com michael o'neill welcome to the kaiser report glad to be here max how are you doing fantastic now mike maloney i've just been watching your video dead cat bounce bernanke he is dumber than gold which i guess is a play on the phrase richer than god and then there's bernanke he's dumber than gold if you believe we are just entering into a quote unquote true deflation talk to me about this well i wrote in my book you

know my book i started writing that in two thousand and five and i finished in two thousand and seven and what i said was were we were going to get the threat of deflation followed by a bunch of bailouts and currency creation by the fed which they did then we would have real deflation meaning a contraction of the currency supply and that is happening if you there's some private companies that reproduce am three which the fed hid from us in march of two thousand and six but these companies reproduce it and i believe they're quite accurate and it shows a trillion dollar code. lapse of the u.s. currency supply and that's about ten percent it's almost ten percent. the markets in the us are way overvalued they're back into a bubble the p. e. ratios for the s. and p. are over twenty that's bubble territory when you look at dividend yields dividend

yields are about one point nine percent. that is lower meaning it's a bigger bubble than the first one hundred eighteen years of data from robert shiller of yale university he constructed the s. and p. going all the way back to eight hundred eighty and there is no time from eight hundred eighty to nine hundred ninety eight where dividend yields were lower than this meaning of a bigger bubble in the stock market and one thing i have observed is that since the year two thousand all of the stock markets have started to become linked together they're all they all are in lockstep with whatever direction the u.s. stock market is going and so as the us stock market goes down it should drag the rest of the world with that we should see deflation followed by governments around the world panicking and i do believe that they were printed into

a hyper inflation are let's talk about this word deflation for a second because people associate deflation and the collapse of money supplies you point out with a rising dollar and a paper currency like the dollar having an increase of purchasing power as we saw the one nine hundred thirty s. of course in the 1930's the u.s. was on a gold standard the u.s. was no longer on a gold standard so my correct to presume that lacking the gold standard the deflation the cut the contraction in the money supply and the response which is to print lots of money will have this inflationary or hyper inflationary effect but what accounts for the lag time exactly between the contraction of the money supply the printing of the money and its eventual hyper inflationary collapse well what. is responsible for the lag time is the fact that gov the the portion of the currency supply that governments produce is very very inefficient the portion the

major portion of the currency supply in the united states for instance. it's eighty five percent of all the dollars created are created through fractional reserve lending so it's the public borrowing currency into existence and it's very efficient because it goes right into real estate into business into purchases people are making with their credit cards when the public polls back and they get they get frightened they stop their borrowing and spending the currency supply starts to collapse if the government decides to do a bunch of treasury purchases for instance to create currency where the federal reserve a private corporation is buying u.s. treasuries which in debts the public in the future to a private corporation it's a crazy world but. if they do that it takes quite a while to filter through the government to get out into all of these spending

projects and you lose all of this energy as it goes through the different government offices and the bureaucracies so it takes many many times more currency produced to have the same effect that the public gets when they borrow currency into existence so that is responsible for the lag time but in the last the flay ssion gold rose from twenty dollars an ounce roughly to thirty five dollars an ounce and that really was the will of the public in the free markets doing this because it was a change in exchange rates and then it once they unpeg the dollar from gold the dollar's value fell from one twentieth of an ounce of gold down to one thirty fifth the so it was really the dollar changing the rest of the world was using gold so it wasn't gold changing it was exchange rates around the world figuring out that the

dollar wasn't worth as much the gold actually rose in the deflation so even though the dollar gained in purchasing power by fifty percent gold magnified by another seventy percent it's doing the same thing today gold is basically just fundamentally undervalued it doesn't purchase enough stuff. i don't care about gold's price what i care about is how many shares of stock is it purchased and how many how much real estate does gold purchase at the time and right now it doesn't purchase enough it is really exerting itself and it's going to purchase more stuff in the future so even if the dollar gains in purchasing power temporarily gold will magnify that gain i believe that if we went into a deflation and stayed there you'd still see gold up at three thousand bucks an ounce and you'd see the dow down at like fifteen hundred points so gold would be

double the points of the dow all right mike mani you have been all over the world shooting videos and talking to people in the gold industry and banking industry talk to me a little bit about china i see china is just at this time launching a new exchange traded fund they're encouraging people in china to buy gold and silver what's happening in the china story right now in galt the chinese have always been attracted to gold it is part of their culture what's off the radar still there is silver and when they start coming into silver you are going to see an explosion that is nuclear it will be unlike any financial asset the world has ever seen. you know silver is a very very small market and word is getting around. it and it isn't just china china is going to make a big big difference one of the things that i have been teaching on my travels is that the last bow market in the seventy's of precious metals was only north america

in western europe participating and it was a very small percentage of the population this time it is the entire world if you look at the u.s.s.r. they couldn't buy gold and they didn't have an exchange that helped set the price of gold the spot price was set on the london metals exchange and the commodities exchange in the us there was. the only two places where the stock price of gold was set today it's set by exchanges all over the world everybody can buy there's not enough of it there's not enough so over this the whole thing is going nuclear it's going to be huge now china has come out publicly and said that they need to increase their gold reserves by three four maybe five thousand tons to try to catch up to the u.s. they've been stealthily buying gold for the last few years they've raised their reserves in gold up pretty pretty sharply but now they've said we've got to buy a few thousand tons is this really how are they going to do this without moving the

price substantially or is it just all bets are off and it's a mad scramble at this point for gold yeah if they do what they're saying then you're going to see the price double quadruple or more than that and less there's another government secretly supplying them now you know if you talk with gadda. they have a lot of evidence that the united states and some other central banks have been so on gold into the markets. china could acquire if the u.s. wants to keep the price of gold down and china has that demand you know you know i don't know. the only way that china could accumulate without causing the price to just absolutely explode would be for another huge holder of gold to let it go. without it hitting the markets to be a private transaction basically yeah well no country has that supply of gold

outside of the u.s. germany has three thousand tons or so but most of that sell the new york and then the list gets smaller from there i want to move on for a second to ben bernanke the front the federal reserve chairman he was on sixty minutes to. the show recently made the statement that he understands he's flooding the money flooding the system with lots of money but if need if need to he can simply within fifteen minutes start raising rates and reverse the damage and drain the system is that really plausible or possible well he could raise the fed funds rate it's you know if there's a whole bunch of currency out there base money is what it's called but that he creates if there's too much of that out there and too much of it on the banks' balance sheets you could see fractional reserve lending you know like i said the

major portion of the currency supply is not created by ben bernanke it's created by fractional reserve lending when the banks create loans for houses for cars when you sign a credit card receives and so if the public gains confidence again and they feel good and there's too much bass money there you could literally see hyperinflation with the printing presses turned off ben bernanke he has influence over the banks interest rates does not have control over them he influences them through something called the open market operations right and i guess if you listen to folks like jim records over there on a supply route that the money that is in the system is spread out over multiple maturity date so yeah in the short term he might have an effect but he can't really go down into the maturity yield curve as i guess you could say and totally reshape it at based on his will he is dumber than gold they're all dumber than gold and i

think that they can. control the free markets all they can do is temporary manipulate and when they manipulate energy builds up and the free markets eventually overwhelm the manipulation and this is the reason we're going to be sitting far far higher gold prices we're going to be seeing increased deficit spending in the future it's not. going to be decrease this monetary system that we've got now it's days are numbered all right mike maloney thanks so much for being on the kaiser report very q. . money side is gold silver dot com check it out it's got a lot of information or videos link to that site and that's going to do it for this edition of the cons the report with me max kaiser and stacy herbert i want to thank my guest mike maloney if you want to send me an e-mail please do so at kaiser report at r t t v dot ru until next time this is max kaiser saying.

the official. from the.

video. and. russian lawmakers prepare to approve the start nuclear arms reduction treaty with washington after the u.s. senate go ahead president obama have spoken by praising the developments as cementing. north korea threatens to unleash nuclear war on the south seoul strikes first we've got more analysis on the rising tensions on the korean peninsula which. could escalate even further. and we hear from people living with leprosy in russia who feel their battle is no longer with

the disease but with the stigma which society imposes on. broadcasting live from our studios in central moscow this is r.t. glad to have you with us president medvedev and obama have discussed the new start nuclear arms cuts treaty by telephone after u.s. senate approval removed the last major hurdle to the deal's eventual ratification russian lawmakers are poised to say yes after studying aspects of the vote in washington which include additional provisions outside the treaty itself both presidents said the senate decision has cemented a year of efforts to improve relations are following the story on both sides of the atlantic my colleague kevin owen spoke with can in washington and bennett well as the developments in moscow.