we never got that says the safe ready for freedom. charter near broadcasting live from washington d.c. coming up today on the big picture.

today violence is once again flared up. these are the images. from the streets of canada.

i am asked as well where the cars are report as gold hits a new all time high in silver it's a new thirty year portugal an eight on the other hundred forty i'm billion and bella there three hundred eighty two tons of gold but 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 all around them will deprive the people of all property until their children wake up homeless on the cold cement

their fallers colcord says their ranks this 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 the united states mark fall for mr bernanke he is a murderer of the middle class yes that's true mark driver is correct how did he do it by lowering interest rates artificially down a near zero anyone who is on a retirement pension plan except or has any kind of savings got wiped out to help the bankers that was the quid pro quo that bernanke 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 progress 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 the 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. class 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 and 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 middle classes this are rated because bernanke is a fool well you know his predecessor alan greenspan in one thousand nine hundred sixty six peaking 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 a bit charity but 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 rate monitor 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 grenadier 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 farmers absolutely correct you know all the central bankers are murderers therefore they're

a class of serial killers and i think ben bernanke you might be john. donne wayne gacy the killer clown really very he performed as pogo the clown charitable events and perform for children and he ended up actually he was. using that as a cover to murder thirty three children john wayne gacy to show up at the kids' show right he starts acres balloon animals meanwhile he'd be out there during the kids in the backyard this is ben bernanke this is the u.s. dollar. this is going to make his contribution to society simply mentioned because that's. what this is the bailout call this is just this is the cash this is british . let's look at something that is zero hedge found a correlation that might or not might not prove mark progress assertion ninety one point three percent correlation between food stamp usage and 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 their one 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 the mortgage they get another payday those people are now on food stamps which is another form of inflation because we're just printing more money is money printing that's obscene the sands are all about they're just increasing the amount of nonsensical phantom confetti pollute. less well i think that's the point that zero heads is 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 and that's causing more and more people to have to rely on food stamps. in america well put. in that but now speaking of the fed the following headline feds biggest foreign bank bailout saved us muni 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 own 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 in eighteen months after lehman brothers holdings collapsed they made

this into a film it would be terrible x. rated because what you've got here are banks inserting collateralized debt obligations the various derivatives into each other's orifice is chloral in an overlapping manner and then they loop it up with some of the credit default swaps thanks to blood busters over there j.p. morgan and end up with an unholy orgy so you don't really know we're one arm fits the one body what leg sticking out of what and it's this godly consummation of corrupt kleptocrats swapping spit with each other and other vital banking fluids in a way that creates a centrally banking gonorrhoea is what you can say dexie it is breaking some of the audio only to be exceeded five hundred people are going to which is full of clothes creating surplus 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 stay. anderton port and they still had the aaa reading on financial security assurance that was at a time in gates in defrauding u.s. taxpayers and receiving money from u.s. 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 movies they're part of a syndicate engaged in the fraud ing 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 at the 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 and belgium and luxembourg governments but they had a aaa rating and were therefore able to borrow zero percent and then lend to these municipalities across america which are now bankrupt they are 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 about two or three times to fully embrace what we're talking about continue well into next year's in my 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 deputy abbas 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 and you get upped so he's a guy killed a lot of taxpayers go a lot of net worth so it's a big bonus because it's a mafia when he was brought in in october of two thousand and eight his name is pierre maryon me 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 banker he's waste centimeter challenged. you couldn't 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 a difference it's not a serious gaze and a massive rico act massive. broad 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 a story with everybody 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 they keep on their books drop in value by one or two percent and they're all technically bankrupt that's why there's such a need to do this artificial robotic trading and high frequency trading on wall street artificially keep prices higher because if they let the market find its true value of supply and demand every bank i sure as company in america in the world bank up 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 am after 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 m f

was going after the u.s. they destroyed all these other countries around the world to destroy their credit rating to destroy greece they destroyed ireland they destroyed 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 we 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 hammer thanks so much for being on the kaiser report thank you max when we come back much more coming your way so don't go away. chosen from among many. he was given

a clear cut mission. a mission he successfully accomplished. became the first ever man in outer space. of the soviet union one of the best known persons in the whole what. his thoughts were focused on flight. could he ever think that his life's work would cost him his life . what happened in those few seconds. and what she could see sealed barrels still. pure regarding. archie.

all right welcome back to the kaiser report time now to go to new york and start 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 highs silver as just surged through a thirty year high what's going on well this is going to continue obviously it will be volatility it's are going to be a one 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 you know obviously there was a crash in the tokyo stock market and when people are people who need money for margin calls i thought a lot of people would sell gold obviously was

a lousy time to sell japanese stock so you sell gold get a little cash make your margin call so what was that was pretty obvious to me but what was interesting is where gold would find a bid this is going to go down it was 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 bid 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 now i mentioned japan for a second i want to go back to two thousand and eight during the liquidity crisis or the crash of two thousand and eight there was a unwinding of things like the carry trade or yen carry trade and you saw

a move into the dollar and dollar got a lot of support i noticed that in recent crisis you don't see that kind of move into the dollar so we get it if the dollar no longer they go through currency in moments of. fast 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 right way to think about it i've never thought of gold as an investment or is a commodity i think it is money and so people will go to money but if we have more extreme stress something actually worse than 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 casual dollar strength on for example 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 could call j.p. morgan london put in order for a hundred times they would just sort of laugh at you when that order can get executed. that can only be done sort of central banks central banks so you really can't get 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 the 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 corner this is typically it 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 we kept the inflation genie out of the bottle so the question is are they raising rates now are they going to catch up or is it going to be the seventy's and you see this price appreciation against the central

banks trying to nibble with their little nibbling quarter point raises here and there who i think will be ned ling i think the e.c.b. sort of had to do something do sort of maintain what credibility they have left they've bailed out. ireland bailed out greece down the process to belly up portugal who knows what's going to happen to spain so the e.c.b. sort of looks a little bit like the fed you know print the money buy the bonds to keep the whole ponzi scheme going so they their their credibility is on the on the edge so to speak so they had they had to raise rates and the u.s. has 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 and the you know there's this notion there we're not he's watching inflation like a hawk he's going to keep it two percent he said that many times that's complete nonsense i mean it or not if you look at his writings and read between the lines of the 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 the curve two percent or lower and they're certainly much lower than that right now so that interest rates are actually real weights are actually negative that encourages borrowing the fear of inflation won't carry spending the borrowing one creates the money supply the spending combined with the increase the money supply will increase velocity and that 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 the keynesian trap meaning you know keynesian economics was developed to solve the problem of the liquidity trap when people were fearful and when the saved 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 you in a stimulus if 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 keane's in 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 and forth like i said you cover a lot of material there i want to ask you about one. he's been going in the face of the credit collapse he came in price stimulate bangs with the target being to reinflate the housing market or the housing bubble it seems that that has not happened to matter how much credit or liquidity a strong of this housing market continues to be weak and that excess liquidity is going into precious metals and commodities and assets except her so that policy makes to be a huge failure so why did he miss the miscalculate how did he miscalculate what is the whistling in this big picture and is housing going to just continue to be a huge drag i think you might have been a little disappointed with the results clearly failed but on the other hand if you're not here what else are you going to do i mean he has to double down he has

to keep going he knows the minute 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 liar 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 as it works so far no and the money printing has showed up as you said max and commodity inflation has also shown up in hot money 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 all over the world now little by little these other countries are raising rates they are tightening monetary conditions a little bit to to get ahead of inflation so at 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 a lag of you know twelve to eighteen months and you know q.e. one started no nine and you know now we're we're you know close to twenty. months down the road and we're starting to see some of the signs of the place in here but he and on your point of the house saying yes he absolutely does want to maintain housing housing as advice for a number of reasons number one. the wealth effect number two the ability to borrow against care housing number three for running a banking collapse because so many of those loans are on the books of the banks and still in the commercial sector and of course we all know what's going on with fannie mae and freddie mac. the problem is you have bubble dynamics that this bubble you know a lot of people say it started no two and it did in some ways 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 at 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 stone 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 levels it's going to stay there for ten years so you're not going to see any pop at the housing but you're not he is sort of desperate he sees that 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 of no growth those are sort of his choices right so the housing problem goes back a couple of decades at the structural problem the government through incentives created a deep bias toward housing it created distortions and he is

a japan example is to go on for quite some time you mentioned that you know you're not exactly the huge critic of the fed is some are because you're way positioned as i've heard you speak in terms of a currency will. or the bad ass successfully exported inflation to some degree and 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 i 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. equals perpetual quantitative easing so can you break that down for us to explain that a little bit i'm sure and i'm sure your first point max i did say that the federal law on the first round i didn't say as a compliment i got on 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 big kind of go to your point on q.e.

that's exactly right is this get so tired 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 than the size of the balance sheet when they talk about flows they need to sort of buy 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 and i expect the listings get a lot worse which they may but unless that happens i suspect 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 out to three approaching three trillion dollars at this point so just the maturing securities if you just took those and reinvested 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 new debt the fed has been by it so they have been monetizing the dep and 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 pay the taper keep to keep the price up 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 chewie once you get big enough the stock is the flow ok and against all this of course the one number the debt ceiling keeps rising and down unfortunately we're kind of running out of time records thanks so much again for being on the concert report thank you max all right now going to do it for this edition of the kaiser report with me max kaiser and stacy herbert and i thank my guests jim rickards if you want to send me an email please do so at kaiser recorded r t t v dot ru until next time this is not kaiser saying by o. p.