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because it was with a cause a report as gold hits a new all time high and silver it's a new thirty year torture goal nato and other hundred put on a billion and bail there three hundred eighty two tons of gold but they have a reserve going to be enough to insulate them against a banking terrorist let's refer to what thomas jeffersons. if the american people ever allow private banks to control the use of their currency first by inflation and then by be placed in the banks and corporations that will grow up around them will deprive the people of all property until their children wake up hold on their

coats and then it's their fault coal occurred stationary makes it sound 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 in the united states market 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 liked out to help the bankers that was the quid pro quo that bernanke is made of the bankers all 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 probert 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 he unfortunately into commodities and this is lifting the cost of living of the median household of the typical household in the us mr bernanke he is a murderer he's a murderer of the middle class and the working. class it's a sad joke 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 middle classes this are rated because bernanke is a fool well you know his predecessor alan greenspan in one thousand nine hundred sixty six 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 three monetarist 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 here 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 clobbers 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 wayne gacy going gacy the killer clown really very he performed as good a clown at 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 stars take it all with an animal and meanwhile he will be out there murdering the kids in the back yard this is ben bernanke this is the worst call absolutely this is going back to its contribution to society this situation because that's part of the small soft well this is the bailout money call this is a discussion of the fact that this is part of. the monetary policy let's look at something that zero hedge found a correlation that might or not might not prove mark foggers assertion ninety one point three percent correlation between food stamp usage and s.m.p. or how well the fact 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. why. 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 they're just printing more money is money printing and that's what food stamps are all about they're just increasing the amount of nonsensical phantom confetti balloon. well i think that's the point that is there i decided 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 thus causing more and more people to have to rely on food stamps. in america well put. but now speaking of the fed the following headline fed's 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 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 plural in an overlapping manner then they lube it up with some of that credit default swaps banks the blood vessels over there j.p. morgan and then the of the holy orgy so you don't really know were what armpits the what body what leg sticking out of what and it's the godly consummation of corrupt kleptocrats swapping spit with each other and other vital banking fluids in a way that create a centrally banking gonorrhoea is what i should say dexie of banks is breaking. only to be exceeded by three people organs which is old thinking socialist well max the subsidiary of dexia bank was called financial security assurance and there in

this headline from october two thousand and eight during this time they were visiting the fed discount window research update financial security assurance incorporated aaa ratings placed on credit watch negative so this wednesday. port and they still had the aaa rating on financial security insurance that was at the 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 moody's 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 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 you to watch the show rewind the last twenty seconds and watch it about two or three times to fully embrace what we're talking about continue to use in the headline that i saw this week and i'm going to press a little google translate here to read the headline for you. 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 i think

this is a state owned bank use the civil servant is a public sector worker when you're in the mafia and you kill somebody you get up to do he's a guy killed a lot of taxpayers kill a lot of net worth so it's a good 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 and. the fact that he's the fact i am he's a politician who approved this bonus of eight hundred thousand euros to the banker waste centimeter challenge. you couldn't make it with one of those 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 serious time per occasion a massive rico act massive. fraud 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 with every

bank in the world because according to dazzle with the in switzerland the regulations for how much cash they're supposed to keep with our 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 then they're all secondly back home that's why there's such a need to do this artificial robotic trading and 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 i'm sure it's company in america in the world is bankrupt the next day and all these guys have to find real jobs i mean jamie diamond would be in times square 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 i meant was going after the us they destroyed all these other countries around the world to destroy their credit ratings have destroyed greece they've destroyed ireland they've 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 its sovereignty the us 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 our ecstacy 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. the official t.m.p. cation. pulled touch from the champs to. life on the.

video on demand. broadcasts and precious feeds now in the palm of your. question on the call to calm. all right welcome back to the kaiser reports on how to go to new york and talk with jim rickards senior managing director of tangents capital tim records 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 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. obviously there was a crash in the choke your stock market and when people are in when they 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 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 is 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 operating already 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 an winding of things like a carry trade or 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 move into 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 than the japanese earthquake and i'm not talking about a natural disaster 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 compare it to passengers on the titanic you know when that 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 one hundred times they would just sort of laugh at you in that order can't get executed it. can only be done sort of central banks or 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 u.s. 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 it isn't because 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 it going to 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 now in the process of failure portugal who knows what's going to happen to spain so these should be sort of looks a little bit 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 had they had to raise rates in the u.s.

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 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 that 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 bernanke if you look at his writings and read between the lines of his speeches what he wants is negative real interest rates they want to get inflation up around three four percent keep interest rates 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 real weights are actually negative that encourages borrowing the fear of inflation will encourage spending the borrowing one creates the money supply the spending and 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 thing. 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 wanted to save so the idea was that people are saving the 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 as you cover a lot of material there i want to ask you about what bernanke has been doing in the face of the credit collapse became in trying to stimulate things with the target being to reinflate powerhouse ing market or the housing bubble it seems that that has not happened a matter how much credit or liquidity feast thrown at this housing market continues

to be weak and that excess liquidity is going into precious metals and commodities and assets extent are up so that policy makes to be a huge failure and 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 drag i think he might have been a little disappointed with the results clearly failed but on the other hand if you're not sure what else you're going to do and 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 law 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 the one nine hundred eighty seven for example so there could be a little bit of a lie 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 money inflows in places like brazil china south korea indonesia thailand we're seeing bubble bubbles all over the world so what's happened is bernanke you once 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 and 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 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 you know 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 housing asset values for a number of reasons number one. the wealth effect over to 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 are 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 all the dynamics of this bubble you know a lot of people say it started no two and it didn't 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 global 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 stone once they pop they they tend to go all the way down to below where they start and stay there for. 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 he 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 part of the housing but you're not he is sort of desperate he sees maybe i understand that but what else am i going to do we should 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 it's a structural problem the government through incentives created a deep bias toward housing it created distortions and user japan example this could go on for quite some time you mentioned 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 the bad ass successfully x. worded inflation to some degree and i believe you've 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 erik 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 debt equals perpetual quantitative easing stop any break that down for us to explain that a little bit i'm sure i know your first point max i did say that the federal on the first round but i didn't say as a compliment either on the 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 your point of q.e. that's exactly right this get so tired out 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 that mean the size of the balance sheet when they talk about flows they mean just to buy new securities and creating money supply in 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 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 unless things get a lot worse which they may but unless that happens i expect they'll do 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 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 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 them 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 the keep the price up keep interest rates low and they've so 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 professional q.e. once you get big enough the stock is the floor 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 kaiser report thank you max all right. that's going to do it for this edition of the kaiser report with a nice kaiser and stacy herbert i thank my guests jim records if you want to send

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