all. children down eight thousand by the end of elementary school two hundred thousand violent by the age of eighteen. television shows video game show. twenty four hour news channels is no cheese every day formulate a staple just sure. shakespear those while those who say good first think about it while it was a good try to read artistic journalistic future but most of the while it's good to see what i call have been. god came down from heaven and stopped oh.

oh man a mormon in a pretty what. makes the pill easier to swallow. everybody what's come. out sees top stories this town more than four hundred people remain stranded far is close to up to three ships out frozen still didn't need to be honest very because they're trying to reach the vessels but the pools sickness is forcing them to move up less than a walking pace. the heart of times with god as unemployment rate is still too high people are finding it increasingly difficult to get a job despite israel easing its paid. and washington is getting ready for another two years of divisive political struggle as they one hundred twelfth congress is

sworn in with a republican majority that policy is making big promises about spending cuts and hopes to derail what it calls the president of big government programs. there's the headlines up next aussie's financial wizard max kaiser tells us whether americans should return to a gold standard and rely more on precious metals than the u.s. dollars which was failed as a save haven also he spells out the possible consequences for the state if it continues to increase its national debt in twenty eleven. it was that so much easier to be a lot of people in europe when you see the most important international body for a dysfunctional you'll be going to see the united nations often criticize.

max kaiser this is the kaiser report oh boy it's already two thousand and eleven time to look back and look forward and time to bring in stay as your overseas guys i thought you were going to mention the two thousand and eleven we already see silver spiking it didn't take long for silver to bust out of the gate what else what else well we have the two thousand and ten asset performance numbers they are in number one played am number two in but number a three performer of last year so over up eighty three point five percent remember the played him club back in new york city in the eighty's some serious dancing. when max gold was only up twenty nine point five percent just up like miners laggard laggard but with the silver and gold up these much of course we've been talking about these as currencies and it takes me to the next headline georgia

g.o.p. or pushes bill for taxes to be paid in gold and silver this is from talking points memo dot com and it's a relatively progressive left wing website in the us of if you can call anybody there a left wing and they're talking about georgia state representative bobby franklin republican has sponsored legislation to force the state to conduct all monetary transactions with us gold or silver coins yes well the fact is that the u.s. has never. ben off the gold standard in one way or another it's hard coded in the constitution and now they're just slowly recognizing this eventuality that they must return to hard money to prevent the sly into the fi at money abyss well the most interesting thing about this article is the comments this is an excellent idea however why stop at gold i suggest that the proposed legislation be

expanded to include polished stones beads blankets and trinkets eureka more ignorant g.o.p. politicians are the dupes who vote against their own interests and then finally g.o.p. and their nutty unhinged ways well yeah it's amazing that the so-called left so-called progressive in america have bought hook line and sinker this idea that a federal reserve note that has no collateral value whatsoever that's exchangeable into nothing is somehow of value in an economy like the u.s. at the same time of course we're talking about raising the debt ceiling in the us to fourteen fifteen sixteen twenty trillion dollars why do they have to keep raising the debt level because they keep flooding the the economy with these worthless bogus. us dollars silver is up eighty three point five percent last year gold is up twenty nine point five percent the dollar is up one percent i remember

the dollar is allegedly a safe haven in these you know tumultuous times and here are these people holding onto the dollar for dear life inside and laughing at anybody who would dare buy silver or gold that just shows you that you're nowhere near a bubble doodle kentucky bourbon that's a good currency to use in terms of harshness yes bourbon bullets go back to the pioneering days of america bourbon bullets and pork bellies pork. belly's did a lot better than the us dollar as well but speaking of not an unhinged max kaiser obama aide throws down gauntlet in debt showdown with g.o.p. hitting debt ceiling with the first us default caused purely by insanity so this is austin goolsbee the chairman of the council of economic advisors speaking to a.b.c.'s jake take tapper and he's talking about the debt ceiling which now stands at fourteen point two nine four trillion and we're the national debt is now only

four hundred twenty three billion away from it now the democrats want to raise it to fifteen point five trillion and to put that into context look at this chart this is the g.d.p. of the usa in two thousand and nine that's fourteen point one one nine trillion they want to raise the debt ceiling to fifteen point five trillion and i think the key phrase here is insanity to raise the debt ceiling is a tacit admission of default in other words the u.s. has bonds they can't pay off the bonds to people like china so instead they're simply going to move the goalposts they're going to lower the bar they're going to raise the debt ceiling which is a defacto default which i think is a good way to look at it and i think the world has got to realize that at some point probably this year two thousand and eleven the u.s. will definitely loses aaa rating on its u.s.

government bonds and probably default well you mentioned the aaa rating that's in the headlines today on t.v. we saw the one huge reason the u.s. should lose its aaa rating now this is a paper bug joeys and call from business insider and he's pointing out that lindsey graham spoke on meet the press and he was basically playing chicken with austin goolsbee on the president's council of economic advisors barack obama wants to raise the debt ceiling lindsey graham the senator the republican senator in the u.s. senate. doesn't want to raise the debt ceiling unless we cut social security payments and they believe that they have the power to maintain that simple a rating simply by just jawboning the market simply by stating on television that these these bonds are worth aaa therefore they are aaa they're not going to take into consideration at all that china's got something like two two and a half trillion of these bonds and my at one point this year decide to dump them as they move into precious metals aggressively to disconnect this relationship with

the us while we now know china is got that pipeline that they're just open going right with russia so they don't need the petro dollar anymore well going back to this article it's joe wiesenthal he's a paper by he's arguing that why is hasn't moody's downgraded the u.s. when these two insane people these two insane parties are just like playing chicken over the debt but that takes us back to the precious metals because of course you don't have to rely on crazy insane people and politics to decide whether or not the value of your currency is worth something moody's is corrupt you know the movies are corrupt there's the movies was corrupt all the rating agencies are corrupt the fund managers are corrupt wall street corrupt barack obama's corrupt golems corrupt they're all corrupt it's all part of the corrupt sunday kid i mean to say that's just the movies is so now acting in the good faith is is ludicrous but they also

work hand in hand with the u.s. government and the oligarchs so let's go on to the next headline along the same lines wiki leaks u.s. diplomats acted as boeing salespeople buried in the wiki leaks documents they're not really buried they're just not exposed to the u.s. audience because they don't need to know this kind of stuff but apparently wiki leaks cables describe letters from presidents state visit as bargaining chips and a number of leaders making big purchases based at least in part on how much the companies will dress a private plane. yeah there like used car salesman to go around the well hillary clinton being the top used car salesman of the mall use jets you know going around the world saying hey buddy you know buy some jets and we'll get you some face time with barack obama a bus from boeing jets and splash out on the members seeing your hometown give you some kick back money is totally corrupt this is the american empire slower empire based on guns and tanks and invasions and grabbing property isn't it it's an empire

based on flooding the globe with these diplomatic sales people spending the us corporations and their tentacles into various corners of the us world from that massive global income coming their way yes but we've also been covering this fact that the left wing hates the right wing and the republicans versus the democrats in the red states versus blue states and everybody's going to be better in some way but these documents reveal that on both sides of the equation none of the politicians believe in capitalism they they don't believe in free markets they only believe in rigged markets for their all of arcs going around the world who is the competition to boeing they're not allowing it because they're going in there strong arming these people and the documents also suggest that demands for bribes or at least payment to suspicious intermediaries who offer to serve as agents still take place boeing says it is committed to avoiding any such corrupt practices only corrupt boeing but their competition of course airbus and airbus is

a consortium of european countries and of course the u.s. is constantly pointing the finger at airbus and saying all the euro president policy that there's some to dies ing air bus and that it's unfair competition meanwhile the you've got the u.s. with the world reserve currency and four hundred you know embassies and what he call them there are military bases in with those things spread out all over the world using that leverage to sell the boeing plane and by the way if you look at the exports in the u.s. that they are. well look and say well merica does export stuff it's not just donuts and guns they always point to boeing planes although if you took away all of the salesmanship going on by the diplomats are being underwritten by all these countries who are supporting the flying around of these diplomats to put them in these five star hotels to get them in a position to sell all this junk to u.s. diplomatic counter parties you'd end up with boeing stock cut in half and the entire export myth of america completely obliterated as it should be because

a country can't export a fricken paper bag much less a jet without being undermined and subsidized by the fricken government but speaking of corruption here are some headlines on this and this this collapsing empire of america bribing nigeria for cheney's freedom not legal well this is according to nigeria's anti-corruption watchdog they sent a letter to the nigerian government saying that the thirty five million dollars that how burton has paid the government of nigeria in order to make the case against dick cheney go away you know he's implicated in this corruption scandal paying huge kickbacks to the government well apparently the nigerian government responded to the anti-corruption watchdog by saying the u.s. and the u.k. governments are practicing yet where you cannot successfully sustain a charge in court and you want to recover then instead of losing the case losing the money then you opt for plea bargaining. dick cheney thinks.

this is the shining light on the hill of america but i have a headline from this very first week of the new year as well we're saying which proves that nigeria is correct to make in this are going for steve rattner us cars are pays ten million dollars over bribery clinging. so this is the banker who advised the u.s. government on the auto industry bailout he's settled allegations he paid kickbacks to win state pension fund invest. he settled with andrew cuomo he's paying these fines and penalties and he's banned from appearing in any capacity before any public pension fund in new york for five years that's a big punishment yeah well the tragedy is simply if you got rid of all these kleptocratic boogieman let the people of america compete on the global markets and they could do a fine job competing but they'll never have that chance because all the roads to

competition are blocked by obama's kleptocratic could ray yeah why aren't these people sent to the private prisons like let the prisons compete for these customers and these are high profile guys they want to be in there into your private prison drive up competition good point stacy herbert thanks again for being on the cars report thank you matt all right when i come back i'll be going to bangkok to speak with jay ask him if i know what's going on there so stay tuned. more news today violence is once again flared up. these are the images. from the streets of canada. showing appreciation to rule the day.

children down eight thousand by the end of elementary school two hundred thousand violent acts by the age of eighteen. shows video game show. twenty four hour news channels is not. every day formulate a steeple. chase. those while those who fairytales to fish think about it while it was a joy to artistic and journalistic creatures but most of the violence you see is what i call. god came down from heaven and stopped. a. mormon and a. one two or makes the pill easier to swallow. everybody

was come. hungry for the full story we've gone to. the biggest issues get a human voice face to face with the news maker. welcome back to the kaiser reports i'm now to go to bangkok and talk with j s kim of smart knowledge you dot com or you find his blog about the state of the economy and precious metals day as kim welcome to the kaiser report thank you max. thanks so much yes i was just surfing over to smart knowledge you dot com and there are some fantastic stories on there in articles and especially about education going forward in the next few years i think a lot of people find very interesting now j.s. cam so are ended the two thousand and eighty three and a half percent it's rocketed in the first. days already of two thousand and eleven

what's going on what do we see in two thousand and eleven well in two thousand level you'll see the progression of sober you know rise higher again when we have going on it also thanks to your campaign that went viral so when it got to. you on the buy it now so over and crash keep your mortgage as i think you ought to have some of this over priced oppressions the end in two thousand and eleven or at least . you have to be more get run for the exits because you know the shorts will be getting killed so i think you know right now you had a thirty thirty one and now it's over is still on the undervalued i don't like to make you know predictions because they're so are so are to you know predict where sobers going to go in the next six months the next twelve months next two years by do you think it will head mosul oh multiples higher where it is right now all right now let's move over to something you wrote recently j.s. kim explains why the sample superstore disaster provides

a good analogy for the u.s. economy tell us more you know basically in seoul there was a department store structurally appeared to be very sound you know no one was aware of it at the time but it was structurally very very weak because what happened was during construction the structural with columns of a cut twenty five percent load have been increased about four times the original blueprint a even though you had you know city officials have to prove you know the blueprints they were project and so you know they took money basically so the other way of bill this crappy apartment building them up on the mantle you know from a structural standpoint eventually collapsed killing a lot of people so i think you know what we have with the. pretty significant rise a u.s. stock markets for the last or months or the last quarter of two thousand and ten it's you know the same thing structurally. there's nothing to support that i mean

the retail investors we had a bleak now thirty three consecutive weeks of outflows from usual. if not for the u.s. fed reserve homo operations i've been you know the stock market would be crashing out so on the surface everything looks ok and just like the same department store disaster where you have you know the regulators that are basically you know taking bribes to look the other way ok so structurally the u.s. economy is weak and you mentioned something in there i want to go back to it for a second pomo or permanent open market operations so explain a little bit how this works cuomo operations are basically designed to recapitalize u.s. banks so what happens is the u.s. but reserve they just print money out there and they buy u.s. treasury bonds maturing u.s. church bonds otherwise the church or it will collapse as well and therefore the banks to recapitalize i have a body and i assume they take

a lot of money and put it back into the stock market concern to be told busters not buying so. the market there's been a lot of questions asked who is actually buy u.s. stocks to make the stock market go up now this is a of course completely and a theme at the idea of free market capitalism in america which relies on something called price discovery which means that you've got folks in the market buyers and sellers interested in making transactions in a way that's outside of central planning command and control economics and all the government interference that is associated with other styles of economics and governing such as quote socialism or quote communism so how does it how does the american administration get away with being labeled as a communist dictatorship if they're ins in the market every day buying and selling securities at the expense of it is. citizens who are getting ripped off yeah

exactly you describe the mechanism that you know we have a lot of pundits or people who are looked at upon as experts say such as alan greenspan right in the past as late free markets or what is going on today so you have a lot of misinformation because certainly where social banks metal so much with markets and bias all securities that are new markets so you know i think that the people the public are really misled by you know social bankers and by you know c.e.o.'s and executives all wall street so that's why i think there's a misunderstanding of exactly how the market operates today all right let's talk about a genuine financial political dictatorship china et albert edwards who is over there it's a side general calls china quote a freak economy. that will collapse soon so j.s.

kim is this similar to what you're saying in the us in terms of a structural instability or is it slightly different to walk us through how this might occur sure i also think yeah there certainly bubbles in china you know certainly there is a stock market but that's due to you know basically every central bank i think is a. game of chicken right because central banks values their deep their currency their domestic garcia the other side of a backstop to follow otherwise their exports suffer so nobody wants you know basically to be the first to be physically responsible do the right big because it's kind of like a domino effect so everyone's following so that's why a big a massive bowls everywhere whether it's in europe whether it's in the u.s. or whether it's in you know the major markets and in asia ok let's expand on this game of chicken analogy that you're using so otherwise known you could call it game theory or the prisoner's dilemma or the national equilibrium and any number of ways

in other words you've got two players and they're careening towards each other china and the u.s. and they're both looking to extract rent from each other so assuming that these two collide and they collide pretty quickly possibly this year who is going to be the winner at the end of the day pins upon what the true gold reserves are what be. with china they certainly are cognizant of what's going on and i don't you ever get the truth from a central banker so i mean sir you know so his official spokespeople said oh do you support you know the u.s. dollar which i don't think they're doing i think it's they're going in by commodities you can see that certainly their goal reserves i don't know the exact numbers it's on my head but they certainly made a conscious effort. gold reserves of your sovereign well on which are public also or a lot of commodities

a lot of hard assets and i think that's the way to fix or protect themselves now the flip side with us you know since we haven't had a audit of our historical research since i don't know what it is sure sure was it was you know many many decades ago no one really knows of us the us is a gold reserves are actually correct so a big it ended a day it's opinions on you know who has the most precious metals and hard assets of ours who will survive you know the currency game of chicken that we're see ok well in those terms clearly the u.s. has an advantage if the gall that they say that they have in fort knox is actually their approximately eight thousand tons versus john s. supply i believe it's somewhere in the area of three thousand tons they have said that they want to increase that level by four or five thousand tons but i want to ask you something you know you're over there and smart knowledge you dot com so let me ask you a question theoretical what what what if china. decides

to play this game of chicken and by announcing that they're going to monetize their gold supply and be the first country in the world to monetize their gold supply what effect would this have the fact that they have less gold to monetise would actually work in their favor because it would therefore equal a concurrent devaluation of their currency if you know what i'm driving at you given this any thought j.s. kim yeah i think the first country to do that. because everyone what it will once own their currency and everyone will get rid of all the other views are basically backed by no way or credit or governments which is basically nothing right so i pay the first country back and actually. you know accomplish back all will certainly you know strengthen their domestic country

a strength in their economy right in the fact that they actually have less gold than the us would work as a simultaneous devaluation of their currency which would help their export market so it's a double one two punch if they were to monetize their gold so now looking at a two thousand and eleven j.s. camp what are your predictions some of the two or three trends you see going forward for the rest of the air now these each as they go it's overall it's a year ice. because of the getting obamacare is going to have greater bouts of volatility both that upside and downside but oh hey you know a hundred dollar moves a goal. the economy by are you surprised to see that always on her dollars so her moves up to two dollars a day i wouldn't be surprised to see that perhaps towards the latter part of two thousand and eleven maybe not so much to get it but i do big that we're going to move out of the a which is basically you know we saw stock markets are calm even

though you have on him. women rising in the united states and much of the western world even though inflation is about. ever knock it was a sixty minutes though most ago it's either place in the us was what eight percent or we all knows about eighty percent or so. you know trends are you going to see more volatility you did stock markets because og always learned over the years that you know as much as broad kayin cause a short term. rise in the stock markets that sort of the some point out that brought those break down you know that meddling in the market so what is surprise me see another flash crash you know happened in two thousand and eleven again right and getting over to this inflation number that bernanke is talking about of course the way to get to the quote unquote real interest rates is to take the current discount rate subtract the c.p.i. number the real c. .