three thirty pm in moscow these are your r t had lives of terror attacks strikes the very heart of the belarusian capital killing twelve injuring more than two hundred as a powerful blast tears through the metro in minsk. there is flames that allied forces have been using ammunition containing depleted uranium a poison that can cause cancer and mutations nato de la denies the allegations. the

world marks half a century of space travel april twelfth one nine hundred sixty one. garand becomes the first man to reach out to the star. next business career max kaiser discusses broad squeezing the middle classes and our huge wealth and grinding poverty our era both could be linked to stay with us. i am asked has a world where the kaiser report was gold it's a new all time high in silver it's a new thirty year portugal need on another hundred forty nine billion and barely there three hundred eighty two tons of gold that they have a reserve going to be enough to insulate them against a banking terrorist letter for thomas jefferson. if the american people ever allow private banks to control the use of their currency first by inflation and then by deflation the banks and corporations that will grow up around them will deprive the

people of all property until their children wake up homeless on the cold cement their fathers colcord say their ranks but it sure sounds like what we see in europe today that people are being deprived of all their property and are made homeless but it also applies of course to the united states mark fall for mr bernanke he is a murderer of the middle class yes that's true marx robber is correct how did he do it by lowering interest rates artificially down to near zero anyone who's on a retirement pension plan except or has any kind of savings got life out to help the bankers that was a quid pro quo that bernanke he made the bankers i'll murder the middle class you give me huge bonus money and kudo's and let me keep this ridiculously stupid job chairman of the federal counterfeiting bank well mark barber is quote is if you

print money everything will go up and now the money printing doesn't go into housing because we have an oversupply of housing but it goes into equities and from mr bernanke you unfortunately into commodities and this is lifting the cost of living of the median household at the typical household in the u.s. mr bernanke he is a murderer he's a murderer of the middle class and the working. in class it's a sad job because the point of expanding credit as he did was to try to revive the housing bubble the housing prices keep going down but now we see bubbles in food and energy so not only did people live in housing that's going negative equity but they're paying more for food and energy and the result is basically economic financial death people are now homeless the middle classes of this are rated because bernanke is a fool well you know his predecessor alan greenspan in one thousand nine hundred sixty six speaking of quotes max had this to say in the absence of the gold standard there is no way to protect savings from confiscation through inflation

deficit spending is simply a scheme for the confiscation of wealth and this is exactly what we've seen they act as if it's charity at the low rates are there to help the working class and the middle class to get onto the property ladder to be able to afford these assets but you see from europe all the way to the united states all through the out the united states it's this so-called charity which actually helped murder them financially well look greenspan when he made those comments he was also talking about how the fed. policy could create a dollar standard that was quote as good as gold which is false there's nothing as good as gold but gold and when you give someone like bernanke your greenspan or the banks on wall street the ability to loan money into existence with no collateral you're giving somebody the ability to counterfeit money and the result is inflation

and hyper inflation and of course mark potter is absolutely correct you know all the central bankers are murder is therefore they're a class of serial killers and i think ben bernanke you might be john lee going gacy or clown really very he performed as the clown at charitable events and perform for children and he ended up actually he. using that as a cover to murder thirty three children john wayne gacy to show up at the kids' show writing star makers balloon animals and while he'd be out there during the kids at the track yes this is ben bernanke this is the us dollar. this is bernanke his contribution to society is simply making the cold was that's. what this is the bailout what you call this is the classic let's start with the monetary policy let's look at something to zero had found a correlation that might or not might not prove mark progress assertion ninety one point three percent correlation between food stamp usage and the s.m.p.

or how wealth effect equals poverty effect so you see the white line in this chart that's food stamp usage the increase in the united states since two thousand and nine and the yellow line is the s. and p. . oh yeah well that's right there's a correlation there because they are creating an artificial rally in stocks that will result in a huge catastrophic twenty to thirty percent collapse in one day as it does every six or seven or eight years and of course that makes the insiders fabulously wealthy because they make those negative bets like goldman sachs does on their own clients meanwhile everyone who has money in the stock market believes that they're buying something of value they get wiped out again and then they need food stamps who makes the food stamps morgan they get another payday those people are now on food stamps which is another form of inflation because they're just printing more money is money printing that's absolute stamps are all about they're just increasing the amount of nonsensical phantom confetti. purchased.

well i think that's the point that they're i just trying to make ben bernanke he is printing money it's q e two perhaps q e three coming out all the money is going into either equities or commodities driving up the price of food thus causing more and more people to have to rely on food stamp. in america well put. in that speaking of the bad the following headline feds biggest foreign bank bailout saved us bonds a european bank that received the most federal reserve discount window help during the financial crisis also took three hundred eighty one billion dollars in aid from its home countries and owned subsidiaries implicated in a bid rigging that prosecutors say defrauded u.s. taxpayers so this is a dexia bank based in brussels and paris and it borrowed as much as thirty seven

billion dollars from the fed with an average daily loan amount of twelve point three billion and eighteen months after lehman brothers holdings collapsed they made this into a film it would be triple x. rated because what you've got here are banks inserting collateralized debt obligations the various derivatives into each other or if this is. in an overlapping manner then they lube it up with some of the credit default swaps thanks to blood busters over there j.p. morgan and end up with only orgy so we don't really know were what arm fits the what body what leg sticking out of what and it's this godly consummation of corrupt clock to craft slopping spit with each other and other vital of banking fluids in a way to create a sun salie banking gonorrhoea is what you can say dexie of is breaking some of the only to be exceeded by v.p. morgan which is. well max the subsidiary of dexia bank was called financial

security assurance and they're in this headline from october two thousand and eight during this time that they were visiting the fed discount window research update financial security assurance incorporated aaa ratings placed on credit watch negative so this is from so. port and they still had the aaa reading on financial security assurance that was at the time in gates in defrauding us taxpayers and receiving money from us taxpayers they put it on negative watch after just marking down the credit rating for dexia right we've mentioned it before s. and p. standard and poor's moody's they're part of a syndicate engaged in the fraud in the global banking system customers and the taxpayer they're committing massive fraud moody's s. and p. fitch their financial terrorists but again you know aaa rating and appa time. it

was backed by dexia the french economy minister is saying that dexia was two days away from bankruptcy they were bailed out rescued by the french from belgium and luxembourg governments but they had a aaa rating and were therefore able to borrow at zero percent and then lend to these municipalities across america which are now bankrupt they're being they have austerity measures forced upon them all of them are having their pensions their wealth their property seized via the currency of these credit default swaps that were created in order to defraud them of their property and wealth go to youtube and watch the show rewind the last twenty seconds and watch it about two or three times to slowly embrace what we're talking about this continued well dexie isn't the headline that i saw this week and i'm going to press a little google translate here to read the headline for you ok. i was a bankrupt and dutch you know well this is the new dexia boss and he's receiving an

eight hundred thousand euro bonus on top of his one million euro salary and again this is a state owned bank use a civil servant he's a public sector worker when you're in the mafia and you kill somebody you get upped so he's a guy killed a lot of taxpayers a lot of net worth so he gets a big bonus because it's a mafia when he was brought in in october of two thousand and eight his name is pierre he's the c.e.o. in the picture on the right in the foreground is. the fact that he's the fact guy and he's a politician who approved this bonus of eight hundred thousand euros to the bank he's waste centimeter challenge to. you could make him with one of those then balloons for sure. but keep in mind that dexia and these banks are engaged in this criminal conspiracy and it's not a conspiracy theory it's a should be a criminal indictment i mean that's the difference it's not a theory purgation a massive rico act masses. but it's so big and here's the deal you know they say

that we were two days away from bankruptcy well that's the story of every bank in the world because according to basil which is in switzerland the regulations for how much cash they're supposed to keep their balance sheet it's less than two percent so every single bank in the world is two days away from bankruptcy if all the artificially price stocks to keep on their books drop in value by one or two percent and they're all totally bankrupt that's why there's such a need to do this artificial robotic trading in the high frequency trading on wall street to artificially keep prices higher because if they let the market find its true value of supply and demand every bank company in america in the world bankrupt the next day and all these guys have to find real jobs i mean jamie diamond would be in times square in the men's room turning tricks i would imagine and finally bring it back to the beginning we're talking about portugal having to receive a massive bailout numbers are up to one hundred twenty nine billion dollars this brings me to the united states i.m.f. urges u.s. budget include fannie freddie cost so the united states should include in its

budget the cost of mortgage loan guarantees and other housing supports the i.m.f. said on wednesday in a rare criticism of its biggest shareholder what do you think this is about max now i'm not as going after the u.s. they destroyed all these other countries around the world that destroyed their credit ratings or destroyed greece they destroyed ireland they their stride all manner of country north south east and west and now there's only one place to go left that's the america and they're going to screw up america and as a result america will lose of sovereignty the u.s. dollar be rolled up into a global currency and people are going to pay in america their local state federal and world tax get used to it world tax all right stacy ever thanks so much for being on the kaiser report thank you max when we come back much more coming away so don't go away.

well. you do lead us in science and technology from the realm of russia. we go into the future coverage. all right welcome back to the kaiser reports i'm going to go to new york and talk with jim rickards senior managing director of tangency capital jim rickards welcome back to the kaiser report thank you max thanks for having me all right jim rickards gold continues to hit all time high silver as just search through a thirty year high what's going on well this is going to continue obviously it will be volatility it's not going to be a long way street gold will go up and down i thought the most interesting development was right after the sendai earthquake that time i said that gold would

go down a little bit and the reason for that is. obviously there was a crash in the tokyo stock market and where people are people who need money for margin calls so i thought a lot of people would sell gold obviously was a lousy time to sell japanese stocks so sell gold get a little cash meet your margin call so what was that was pretty obvious to me but what was interesting is where gold would find a bid obviously it's going to go down it's going to go back up again and the prior lows have been around thirteen forty or so and i said you know i think it's going to find a stronger bed nice i said it would find a bit of thirteen ninety sure enough it went down to thirteen ninety two turned on a dime and went back up again so that was the the drawdown was predictable but the turn around the thirty nine to two was a real show of strength so the other thing i think is fairly well known that in the last ten years gold has hit the low for the year prior to may and nine of the ten years and hit the low for the year in february in six of the ten years so as a result of that we may have seen the lows for the year already and may just be on an upward all right i mentioned japan for a second i want to go back to two thousand and eight during the liquidity crisis or

a crash of two thousand and eight there was a winding of things like the carry trade. later yen carry trade and he saw a move into the dollar and dollar got a lot of support i noticed that the recent crisis you don't see that kind of movement of the dollar so we get it if the dollar no longer they go to currency in moments of stress what's happening there well i think it's relative in moments of sort of it's called manageable stress i think that's right i think people are looking at you know gold as a currency i think that's the right way to think about it i've never thought of gold as an investment or as a commodity i think of it as money and so people will go to money but if we have more extreme stress something actually worse in the japanese earthquake and i'm not talking about natural disasters so much as you know another say escalation of the european sovereign debt crisis i still think the dollar will be the go to currency not because the dollar so strong but because it's the it's the least weak of the bunch i call it i compared to passengers on the titanic you know when the titanic

was sinking everybody ran to the back of the ship that was a flight to quality of course they were all going down together at the end of the day but i think i think you'll see dollar strength on for example the european sovereign debt crisis just because there's nowhere else to go and you can you can try buying gold but there's not that much of it around i mean you can call j.p. morgan london put in order for a hundred times they would just sort of laugh at you in that order can't get executed. there can only be done sort of central bank to central banks so you really can't have that much gold and so you have to go somewhere and people will go to the dollar even though it's a weak currency right the u.s. dollar the leper with the most bankers ok so now in bank of england they came out they kept interest rates unchanged e.c.b. as opposed to come out and raise rates or they did raise rates i believe by quarter this is typically goes against the gold and silver story you know the higher rates but going back to the seventy's of course precious metals rose throughout the entire period of rising rates so. the inflation genie was out of the bottle so the

question is are they raising rates now are they going to catch up or is going to be like the seventy's and you see. this price appreciation against central banks trying to nibble with their little nibbling quarter point raises here and there but i think it'll be neville and i think the e.c.b. sort of had to do something do sort of maintain what credibility they have left they've failed out of ireland bailed out greece and now in the process of failure portugal who knows what's going to happen to spain so these should be sort of looks like the fed you know print the money buy the bonds and keep the whole ponzi scheme going so they do their credibility is on the on the edge so to speak so they have they had to raise rates in the us as a little more of a reserve of goodwill by virtue of being the dominant reserve currency in the world so they can play this game a little bit longer on course the u.s. loves this they love to see everyone else raise rates in the u.s. keep rates low the you know there's this notion they're fed bernanke is watching inflation like a hawk is going to keep it two percent he said that many times that's complete

nonsense i mean or not if you look at his writings and read between the lines of speeches what he wants is negative real interest rates they want to get inflation up around three four percent keep interest rates at you know in the intermediate sector of the curve two percent or lower and they're certainly much lower than that right now so that interest rates are actually wheel weights are actually negative that encourages borrowing the fear of inflation won't carry spending the bar when one creates the money supply the spending and combined with the increase in the money supply will increase velocity and i will get the g.d.p. up that's the plan i don't think it's going to work because i think we're in a new sort of i call it a keynesian trap meaning you know keynesian economics was developed to solve the problem of the liquidity trap and people were fearful and on the save so the idea was that people are saving then governments have to spend to keep the economy going i think now we've come so far down the government spending route that people look at government spending and far from being in the stimulative they view it as destructive maybe even new cause for concern so people are saving anyway so that

you're in the situation where the more they ease the more average citizens want to save the leverage pay down debt etc. so we have this new concerted keynesian paradox that's actually causing a new liquidity trap so it's going to end badly but they can keep the game going for a while longer let's roll back here for a second that's if you cover a lot of material there i want to ask you about what bernanke has been doing in the face on the credit collapse became in trying to stimulate bangs with the target being to reinflate back housing market or the housing bubble it seems that that has not happened to matter how much credit or liquidity feaster own at this housing market continues to be weak and that excess liquidity is going into precious metals and commodities an asset that cetera so that policy makes seems to be a huge failure so why did he miss the miscalculate how did he miscalculate what is the missing in this big picture and is housing going to just

continue to be a huge crack i think you might have been a little disappointed with the results clearly failed but on the other hand if you're not there what else are you going to do i mean he has to double down he has to keep going he knows the mill he raises interest rates the minute they tighten monetary conditions you know the stock market's going to tank probably with a lot of you know that there might be sort of six months between the tightening in the crash we've seen that pattern in the past in one nine hundred eighty seven for example so there could be a little bit of a live there won't be instantaneous but the fact is he knows that's what's going to happen so he's got to keep easing so it hasn't worked so far no and the money printing has showed up as you said max and commodity inflation has also shown up in hot on the inflows in places like brazil china south korea indonesia thailand we're seeing double bubbles all over the world so what's happened is bernanke he wants inflation in the united states has not been able to achieve that what he's created is inflation over the world now little by little these other countries are raising rates they are tightening monetary conditions

a little bit to get to get ahead of inflation so that point with the dollar depreciating that inflation will come back to the united states the inflationary chickens will come. home to roost so to speak and that's actually consistent with what milton friedman said he always said that monetary policy acts with the lives of you know twelve to eighteen months and you know q.e. one started no nine and you know now we're we're close to twenty four months down the road and we're starting to see some of the signs of flesh in here but he and on your point about housing yes he absolutely does want to maintain housing bubble housing asset values for a number of reasons number one. the wealth effect number two the ability to borrow against care housing number three preventing a banking collapse because so many of those loans are on the books of the banks you know certainly in the commercial sector and of course we all know what's going on with freddie mae and freddie mac. the problem is you have bubble dynamics that this bubble you know a lot of people say started no two and it didn't someways but i would say the bubble really started in the mid ninety's with changes in housing policy during the

clinton ministration that were continued through the bush administration and you look at bubble dynamics take of the nikkei for example the nikkei hit forty thousand at the end of one nine hundred eighty nine here it is you know it was a twenty two years later and they're still seventy five percent below the peak nasdaq hit five thousand and in two thousand was over five thousand in the year two thousand and that's still you know eighty percent below the peak you know eleven years later so these bubbles don't once they pop they they tend to go all the way down to below where they start and stay there for a long period of time before they come back if you apply that analysis to housing i would say housing still has another twenty to thirty percent to fall and then when it gets that low which will take you back to the ninety six law it was it's going to stay there for ten years so you're not going to see a pop out of housing but you're not he is sort of desperate he's like well ok maybe i understand that but what else am i going to do we wish we have another depression right now or should we have ten years in zero growth those are sort of his choices

right so the housing problem goes back a couple of decades at the structural problem of government through incentives created a deep. bias toward housing it created distortions and using the japan example is to go on for quite some time you mention bad you know you're not exactly the huge critic of the fed as some are because you're way positioned as i've heard you speak in terms of a currency war bad as successfully export in inflation this time to great i believe you said well the fed is one of the first battle in this currency war but i want to move on to quantitative easing for a second because you spoke recently with eric kang and made some interesting comments i want to get into this a little bit in other words people are saying is there going to be more quantitative easing once this round q.e. two expires in june july or not your point is that the fed's balance sheet is so huge at this point just monetizing the interest on the current debt equals perpetual quantitative easing so any break that down for us to explain that a little bit sure i know i'm sure your first point i actually did say that the

federal well in the first round but i didn't see it as a compliment either i'm a huge critic of the fed i don't like the fact that they're destroying the dollar but they did sort of win around against china being kind of going to a point on q.e. that's exactly right this gets so tied up in the jargon of the fed you have to sort of translate from fed speak to english they talk about stocks and flows and they talk about stocks they mean the size of the balance sheet when they talk about flows they mean sort of buying new securities and creating money flowing the money out into the into the open market now for two years it's been all about the flow it's been all about creating new money and putting money out there and buying government securities and building up the balance sheet and now we're coming to the end of q e two and there's going to be a lot of hoopla may i expect unless things get a lot worse which they may but unless that happens i expect will be some announcement later in april and maybe some leaks and then of a formal announcement in may the q e two is going to end at the end of june but the point is the balance sheet has been taken up to three approaching three trillion

dollars at this point so just the maturing securities if you just took those and reinvest them in. new securities you would you would basically be keeping a lid on interest rates and people don't really understand q.e. two q e two has partly monetize the debt so is the treasury's issuing a new debt the fed has been biased or they have been monetizing that but that was not the stated purpose of q.e. or q.e. two the stated purpose of q.e. was to keep interest rates down particularly q.e. two was targeted at the intermediate sector to keep interest rates down you don't need to monetize the entire debt you don't need to buy every new issue of government securities you only need to have the marginal bid you only need to buy enough at the margin so so you can basically paid the taper keep to keep the price out keep interest rates low and they've so the question is how much buying power do they have and the answer is if you have a three trillion dollar balance sheet with a fairly short maturity structure you've got hundreds of billions of dollars of buying power certainly enough to manipulate the market to keep those rates down so

i let people misunderstand what i was saying they thought i was saying that the fed would basically have enough maturing securities to monetize the debt and that's not what i said that's not what i meant what i said was that they would have enough maturing securities to manipulate the market to keep those interest rates down so that's what i call perpetual chewing once you get big enough the stock is the flow ok and against all this of course the one number that sailing keeps rising and unfortunately we're kind of running out of time jim rickards thanks so much again for being on the concert report thank you max all right i'm going to do it for this edition of the kaiser report with a nice kaiser and stacey harbor our thank my guests jim rickards if you want to send me an e-mail please do so at kaiser reported r t t v dot are you until next time this is max kaiser saying bio.

in the czech republic and he's available in the hotel as my central hotel for the villa the nice and most treacle full stop by you would.