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go to the cruise hotel discovery beach hotel. resort to see your resume. barracuda. hotel. resort. in israel is available in. jerusalem. with three ships stuck in ice to safety four hundred people of all the ships which have been frozen in forward. in new york residents fear piles high as rubbish heaps fill the streets of the city known as the center of a fox turning into

a junkyard. and palestinians are naming the streets of the city of ramallah after those they regard as heroes but some of the choices. will be here in about half an hour's time but next wall street inside. american should rely more on the precious metals than an unsustainable u.s. dollar do stay with us. for the full story we've gone to. the biggest issues get the human voice face to face with the news makers on the.

imax 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 ever stacy kaiser i thought you were going to mention the two thousand and eleven we already see silver spiking it didn't take long for so over to last 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 of three performer last year so over up eighty three point five percent now remember the played him club back in new york city in the eighty's that'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 and if you can call anybody there are left wing and they're talking about georgia state representative bobby franklin republican who has sponsored legislation to force the state to condemn. all monetary transactions with the us gold or silver coins yes well the fact is that the us has never been 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 slide into the fee money of this 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 good old kentucky bourbon that's a good. currency to use in times of harshness yes bourbon bullets go back to the pioneering days of america bourbon bullets and pork bellies pork bellies 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 there 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 de facto 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 what 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 half trillion of these bonds and might 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 join a 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 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 since the kid i mean to say that's just a luis 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 over guard so let's go on to the next headline along the same lines wiki leaks us 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 visits as bargaining chips and a number of leaders making big purchases based at least in part on how much the companies will dress up private planes and their like used car salesman the go around the well hillary clinton being the 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 it's an 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 for 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 of totally 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 is some to die zing 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. he says if 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 will look at and say well merica does export stuff it's not just don't it's and guns they always point to boeing planes although if you took away all of the salesmanship going on by the diplomats that 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 that instead of losing the case losing the money then you opt for plea bargaining. dick cheney.

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 wishing which proves that nigeria is correct to make in this argument for steve rattner us cars are pays ten million dollars over bribery calling. so this is. the banker who could advise 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 you 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 you know these are high profile guys they want to be in there into your private prison drive up competition good point stacy ever 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 as kim find what's going on there so stay tuned.

we'll be. bringing you the latest in science and technology from around the world. we. covered. welcome back to the kaiser reports i'm now to go to bangkok and talk with j.s. cam of smart knowledge you dot com or you find his blog about the state of the economy and precious metals james kim welcome to the kaiser report thank you max and happy new year to you oh 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 jay is kim so are ended the two thousand and ten eighty three and a half percent it's rocketed in the first few days already of two thousand and eleven what's going on when we see in two thousand and eleven well hey if you're

going to love it you'll see progression of this over you know rise higher again i think what we have going on also thanks to your campaign that went viral so what are. you on the buy now sober and crashed your mortgage as i think you are to have some of this over priced oppressions. in two thousand and eleven or at least how. you know how do you more get run for the exits because you know the shorts will be getting killed so i think you know right now you get a thirty thirty one and now it's over is still i we undervalue 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 the next six months the next twelve months next two years i do think it will head ball oh my. higher award is right now all right now let's move over to something you wrote recently j s kim explains why the sam prunus 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 had been increased about four times the original all blueprint a even though you had you know city officials had to prove you know the blueprints they were project and so you know they took money basically to look the other way of bill this crappy apartment building from up on the metal 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 led we had a belief now thirty three consecutive weeks of outflows from usual. if not for the u.s. that reserve pomo operations i think you know the stock market would be crashing also on the surface everything looks ok and just like the same whom 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 wake 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. ozment sure your shirt on the other was a church bomber it would collapse as well and therefore the backs to recapitalise i have a body and i soon may take a lot of money and put it back into the stock market concern to be told busters not

buy so. the market there's been a lot of questions asked who is actually buying u.s. stocks to make the stock market go up now this is a of course completely and a theme of 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 the citizens who are getting ripped off yeah exactly

describe it is about you know we have a lot of pundits or people who are looked upon as experts say such as alan greenspan right but 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 the markets and bias all securities there are no 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 all right let's talk about a genuine financial political dictatorship china et albert edwards who is over there to cite it 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 certainly bubbles in china you know certainly in there as they stop work of about two to you know basically every central bank i think is a. game of chicken right because why don't you 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 thing because it's kind of like a domino effect so everyone's following so that's why a big a massive bowl is 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 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 is a pond who what the true gold reserves are what the. china is certainly are cognizant of what's going on and i don't you ever get to choose from a central banker so needs are types you know a chinese official spokespeople said oh do you support you know the u.s. dollar which i don't think they're doing i think instead they're going in by a commodity so you can see that it's only their gold reserves i don't have exact numbers on it's on my head but they certainly have made a conscious effort. greaser gold reserves a bigger sovereign well on which our public also or a lot of commodities a lot of our assets and i think that's the way to 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 you're sure was but 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 if you have it 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 seeing ok well in those terms clearly the u.s. has an advantage if the goal that they say that they have in fort knox is actually their approximately eight thousand tons versus giantess 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 on the big 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 a 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 these 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 as strengthen 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 say your ice . because of the deep 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 about the economy but i would be 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 you say 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 it is about less time better knock it was all sixty minutes oh months ago he said a place in the us was what eight percent we all know is about eight percent or so. you know transit are you going to see more volatility you good stock markets because obviously we're going to the years you know as much as broad kayin cause a short term. rise in the stock markets that sort of the some point in time that brought does 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.p.i. number and you end up with the real interest rates going forward and of course that

number currently is negative which means everyone's losing purchasing power which means again people are looking to revive their fortunes in the precious metals markets is that what would you say is well yeah i think you're because i can't understand how anyone in the u.s. because i still talk to a lot of people in america that they believe that there's actually economic recovery out that you know they believe all the propaganda because certainly i think if people were introspective enough to take a look at their quality of life i think it was see that their quality of life and their lifestyle is decreasing just because of what you said because certainly the crease that is certainly for corporate america increasing aid. you know basically because the living adjustment they get certainly does not a tree does not equate with the devaluation of the dollar so we have much more place than we have more taxes now so i've been.