dictate to men and women what they believed in what they thought and how they should behave and so he fell out with the church in a very very big way and they eventually after he wrote the novel called resurrection which has a lampoon of the holy liturgy of the orthodox church in the extreme indicated him which was quite a big deal in his days it was a big deal for his wife who was who was an orthodox it wasn't for him he'd never wanted to be buried in church ground anyway he was buried in the place the states where his brother thought he'd buried this green stick when they were playing it but a game in childhood on the green stick was written the secret of how we should live the secrets of human happiness so it's very appropriate he should be buried there and well thank you very much thank you.

he. this is. one of. the ships which. christmas bells are ringing in the holy. since the birth of christ thirteen days later than most christians thousands of the visitor attending mass in moscow's main cathedral. and in new york residence fury

poles toy is rubbish heaps fill the streets of the city known as a center of glamour of fast turning into junk yards. while the news continues in less than half an hour with my colleague sean thomas in the meantime artie's financial guru max kaiser asks whether americans are better off choosing precious metal over the precarious dollar. 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 stays or overseas skies 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 bust out of the gate what else what else well we have a two thousand and ten asset performance numbers they are in number one it's played

am number two in but number of 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 did some serious dancing. when max gold was only up twenty nine point five percent just up leggers 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 web sites in the u.s. and if you can call anybody there 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 the u.s. gold or silver coins yes well the fact is that the u.s.

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 sly into the fee money abyss well the most interesting thing about the. article is the comment 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 bellies did a lot better than the us dollar as well but speaking of nutty and 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. tapper and he talked 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 they're 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 my jaw jaw boning 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 to do. 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 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 a 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 only garc 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 up private planes they're like used car salesmen to 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 number c. in your hometown and give you some kickback money is totally corrupt this is the. american empire solar 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 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. 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. 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 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 don't. 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 hoops 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 howler 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 end watchdog by saying the u.s. and the u.k. governments are practicing at 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 we're saying which proves that nigeria is correct in making this argument for steve rattner u.s. 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 get rid of all these kleptocratic boogieman you let the people. 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 code 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 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 ask him if i know what's going on there so stay tuned.

for the full story we've gone to. the biggest issues get the human voice face to face with the news makers. welcome back to the kaiser report time now to go to bangkok and talk with j.s. cam of smart knowledge you dot com where 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 if you're bouncing up you'll see a progression of so or you know rise higher again what we have going on also thanks to your campaign that went viral so what are. you on a bite out of this over and crashed your mortgage i think you're to have some of this over the precious. or at least. you know how do you more get run for the exits because you know the shorts will be getting killed so big you know right now you had a thirty thirty one and now it's over is still i mean 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 year by do you think it will head bowl zero multiples higher or 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 provide. it's 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 had happened was during construction the structural with columns of a cut twenty five percent load had been increased about two or times the original 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 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 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 coom department store disaster we have you know the regulators that are basically you know taking bribes to look the other way ok so structural ng 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. reserve they just print money in there and they buy u.s. treasury mature and u.s. surety bond otherwise the church or it will collapse as well and therefore the banks are recapitalized i have a body and i soon they take a lot of money and put it back into the stock market because certainly to. buster is not buying 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 of course completely and the 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 the mechanism about you know we have a lot of pundits or people who are the pond is experts say such as alan greenspan right the passes late free markets or what is going on today so you have a lot of misinformation because certainly 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 all right let's talk about a genuine financial political dictatorship china et albert

edwards who is over there to side to general calls china quote a freak economy. that will collapse soon so jay ask him 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 in the us they stopped work of about two to you know basically every central bank i think is a. game of chicken right because central bank values their deep their currency their domestic garcia the other side of a backstop that 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 bigger mass of poles 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 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. 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 upon who what the true gold reserves are what the. china is certainly are cognizant of what's going on and i don't hate you you ever get the truth from a central banker so i mean sir 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 is they're going to buy

a commodity so you can see that it's only their gold reserves i don't know the exact numbers it's on my head but they certainly 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 fix or protect themselves now the flip side with us you know since we haven't had a audit of our historical reserves since i don't know what it is sure 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 day it depends on you know who has the most precious metals and hard assets of ours who will survive you know that currency game of chicken that we're seeing 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 if 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 monetize 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 want to own their currency and everyone will get rid of all the other parents these are basically backed by no way or credit or go rich which is basically nothing right so

a paper purse culture you back in actually. you know accomplished that goal was certainly you know strength in 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 continue to rise. because of the deep getting. greater bouts of volatility both that upside and doubts about oh hey you know a hundred dollar moves a goal. the economy by are you surprised to see it always up one hundred dollars so

who's 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. 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. ever knock it was all sixty minutes oh months ago he said a place in the us was what eight percent or we all knows about eighty percent or so . you know big trends are you going to see more volatility you did stock markets because obviously one of the years you know as much as broad cause a short term. rise in the stock markets that sort of the some point in time 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.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. because i can't understand how anyone in the us a because i still talk to a lot of people in america that they believe that there's actually economic recovery have it 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 may 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. you know basically the

cost of living adjustment they get certainly does not treat does not equate with the devaluation of the dollar so we have much more play should we have more taxes now so i think that american. all across the board maybe the richest one percent of america as lost a great deal of your life right j s kim thanks again for being on the kaiser report ok. and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i want to thank my guest j.s. kim of smart knowledge you dot com if you want to send me an e-mail please do so at kaiser report at r t t v are you until next time this is nice guys are saying.