it's time for headlines now arundhati western ukraine marks victory day with a vicious display of nationalism we're nazis attacked veterans voiced pro fascist slogans and ripped commemorative sent george ribbons from people's clothing. said she talks between the u.s. and china have been paying lip service to competition and cooperation representatives from both militaries held discussions about her peers on the internet use it's less of spending on defense. data was accused of

negligence for reportedly ignoring distress calls from a good caribbean within g.'s sixty people on board are thought to have died of thirst and hunger to spend more two weeks of thing a military. stay with us now because report next. max kaiser welcome to the kaiser report you know if you've been following this show you've got to know that the price of silver is been on the back foot why because the c.m.e. and the comix the people in new york that make market is over who are controlled by j.p. morgan have been raising their margin rates unprecedented number of margin rate raises in a very short period of time let me explain what this is doing this is

a recruitment mechanism it's like a. prison photos remember well that was a huge recruiting tool now every time the c.m.e. increases marginal rates it's sending a huge recruiting message to the silver liberation army sucking more of the physical so more off the market you are being poisoned by your own merchant the tall order c.m.e. all right let's go to an undisclosed location somewhere in the united states and speak with the beautiful and always vive aisha's stacy herbert who i understand is having a silver round made in her homage soon stacey hello i mean yes you could challenge in america because you're a me over there you can see a picture of bin laden over here you can see my seven rifles. so

already armed and ready for the show i'm afraid it is summer liberation walk a long. way nicely back out of green. beret carrying a gun yet and a purana next i want. one of. their long frozen fish in the sea and so they actually been lining is my first headline not because i want to talk about him but there's this interesting little bit in here osama bin ladin hideout worth far less than us claimed so pakistani property experts say that the us government's description of a one million dollar mansion that obama. some aloof was way off the mark as further exaggerations come to light a local property expert said at most the house was worth two hundred fifty thousand dollars but here's the quote i want you to listen to max it pakistani property expert said when he was told about the american estimates that the house was worth

a million dollars he chuckled and said maybe that's the assessment from a satellite but here on the ground that's the price by two hundred fifty thousand dollars well i or. he was being foreclosed on just like people on the last vegas and miami and california and j.p. morgan chase mortgage unit authorized the head of the way to go there so they could release of to somebody else it's all about the mortgages and the rules of the criminality on wall street well max i carry this analogy forward i want to look at the different views from satellites and then down on the ground here is the headline max fed presidents signal record stimulus won't be removed soon so these are the fed presidents of boston san francisco and they signaled recently that their monetary policy is not going to tighten after g. when theoretically q e

two ends and from aircrews and dan president of the fed reserve of boston he said right now we're pretty far away from our targets and right now we're keeping monetary policy committee right well the european central bank the e.c.b. just telegraph that they probably won't raise rates the euro is down bank of england has said due to economic stagnation they won't be raising rates and the fed looks like of course they'll won't be raising rates and they'll be bringing q e three soon enough so now the central banks are raising rates which means that the surfeit of money flooding the globe and destroying people's purchasing power skyrocketing food and energy that trend will continue and whatever price over bottoms out i hope you can block by it with both hands by it until you're bleeding because the five hundred dollars is a target what else you got both of these think presidents say it's that inflation isn't a long term risk so again this is what they're saying from the satellite view up at

the fed now let's look at the reality on the ground food prices rise to near record as inflation excel or e c remember it just said they're going to keep monetary policy loose because they don't see any inflation here the un is saying that march was the second highest food inflation on record right well if you're ben bernanke the way to do the job as he conducts his policy first take a large stick and poke out your eye there now you're half blind now look at the statistics in front of you and don't count wages and look at the tips the treasury interest protection securities treasury inflation protected securities and any time they start moving up use taxpayer money to buy a whole bunch in the open market to keep the price artificially low and then go for . congress look at what i pulled out and say well the tips are not going up and

wages are going up therefore no inflation congress well we got to keep rates artificially low which of course without rates being higher there is no incentive to save and without savings there is no capital and without capital there is no capitalism chairman bernanke is comrade bernanke the overseeing a poll of bureau of commanding control rate meisters whose only intention are to make wall street bankers filthy frickin rich the article goes on to say that the cost of living in the u.s. rose at its fastest pace since december two thousand and nine in the twelve months ended this march gasoline prices were at ninety one cents since december thirty first this adds a total cost to the consumer in the u.s. at one hundred twenty five billion dollars well what they have working in their favor i just noticed a story coming out of the trade that fifty percent of the population men women and

children combined are illiterate fortunately they won't be able to read about their euthenasia economic euthanasia experiment being conducted in the city of detroit well and another headline is a quick headline just so you know that about one in seven u.s. receive food stamps this is the latest updated number remember at the beginning of the crisis one in fourteen were on food stamps now one in seven americans are on food stamps well that number is set to go to ninety percent of americans will soon be on food stamps because there's no return on savings there's no jobs and there's no way to make a living out there except if you're working for the criminal class in washington d.c. either as a congressman or as a prostitute and of course there's no real justice maxine late night you know throw this guy in to see the guy behind me but there's been no. justice in terms of all

the criminal fraud and we're going to get to bed a minute but i want to show you inflation isn't just hitting americans and the third world we're seeing this in the u.k. why our purchasing power is set to suffer the biggest squeeze since eight hundred seventy and this comes from roger boodles advisor to delight in the u.k. and he says pay growth is unlikely to catch up with inflation any time soon inflation is heading towards and possibly above five percent so again incomes going down inflation going up this is the reality on the ground not from what they see at the satellites at the fed right and not according to the central bankers who conveniently omit any statistic that would challenge their policies that are structured in a way to make the minority one percent oligarch class wealthier that's their job they're doing a good job and the asylum bin laden episode that was

a few thousand miles off target i think they could have found a better target well you mentioned central banks and those are my next you headlines because with all this inflation and all this money printing and wild crazy behavior from the you know the tora bora in d.c. china aims to have more gold than america so rob mcewen founder and former head of gold core now the world's fifth largest gold mining company believes central bank purchases could help push the price of gold to two thousand dollars he says china is out to have more gold in america and russia is aspiring to the same now you know of course china has officially a thousand tons of gold and if they want to catch up to america's alleged quantity of gold they need to buy a seven thousand tons well i'm going to go to mexico. as well yeah you know they don't feel right around the world or are for the first time. years increasing

their gold reserves well let's move on to that mexican story because that's the next headline mexican central bank buys one hundred tons of gold as a result of mexico's purchase central banks sovereign wealth funds and other so-called official sector buyers are on track to record their largest collective purchase of gold since the collapse of the bretton woods system which pegged the value of the dollar to gold in one nine hundred seventy one yeah and peter schiff makes a good point his latest editorial talking about the institutional appeal go not only some for banks but the endowment of one of the big universities in texas just bought a billion dollars of the gold he says it that institutional appeal extends to let's say the sovereign wealth funds you know the one in i believe qatar is worth six hundred billion not cutter but kuwait and the nabil abu dhabi right i would obviate some a lot on they've got six hundred billion in cash to work with if these sovereign wealth funds in the institutional side start to put five six seven percent into

gold bullion that's an incredible demand story that's what nobody is talking about on the silver and gold story they're all thought looking at the supply but they're not really understanding what the man dynamics are going forward and as rick ackerman said you know when you increase supply as they're doing now by flooding the market with more naked short sellers in the silver pits you increase demand and this is an axiom on wall street that is. inflexible we've got about thirty seconds left let's talk a little bit about thoughts of bank accused of massive mortgage fraud sued for one billion by u.s. government what's going on there and they see herber now the justice department has sued doing should bank one of the world's ten biggest banks buy assets for at least one billion dollars for defrauding taxpayers by repeatedly lying to a federal agency the house and housing and urban development when securing taxpayer backed insurance for thousands of shiny mortgages better. there's a quote here that reminded me of something that you always say max this is from

preet bharara the u.s. attorney in manhattan he says these companies repeated three and brazenly breached the public trust this lawsuit send them and other lenders the message that they cannot get away with the lies and recklessness they cannot count is really a sign the prospect of being caught up to the cost of doing business that's right enjoyed a bag of courses. in the stand along with goldman sachs and the greece debt hiding scandal from a few years back and that's why going to bank is being sued that's my daughter greg is being asked appear before congress at the behest of karl levin for charges of fraud and perjury all right thanks so much and good luck in that undisclosed location somewhere in america hope to see you back in the studio thank you max all right now is going to do it for this half of the show but don't go away because there's much more coming your way after the break.

welcome back to the kaiser report imax guys are time now to go to sunny a los angeles and speak with mike maloney of gold silver dot com author of guide to

investing in gold and silver mike maloney welcome back to the kaiser report thanks it's great being here max ok let's talk about silver last year it was up something like eighty eighty percent this year it started off with a bang up big currently going through a bit of a sell off what's going on in the supermarket mike maloney well you know as far as the sell off goes i really don't care why actually i do i'm hoping silver will go down a little bit more because i want to buy more. i want a lot more silver has yet to exceed its nineteen eighty one i mean we came within a breath of it but it hasn't exceeded exceeded its nine hundred eighty high can you name one thing on this planet that is still selling at a discount to its nine hundred eighty price right ok now i'm looking at the u.s.

dollar and of course silver and gold are the contra indicators of the dollar and the dollar is still trading almost at an all time low and that trend even with the some a spectacle having given it a bit of a boost it's still trading terribly how can these two things co-exist the dollar trading at near all time low with a twenty twenty five percent retraction in the price of silver well they can't to do can't exist at the same time indefinitely here something has to break but you know they're measuring that when you talk about the dollars trading near lows and it's the dollar trading against other. fia currencies if you look at what has happened the dollar measured in gold or the dollar measured in silver for the past decade the dollar is just crashing it is burning and crashing and this will continue you know right now we are seeing. the euro is beginning

to fall apart the euro is a very poorly designed currency that cannot last you can't have all these central these countries with different monetary policy sharing one central bank and expects the currency to last as far as the dollar the dollar is on death's doorstep also people don't realize that every thirty to forty years the world has a new monetary system we have the classical gold standard to world war one the gold exchange standard between the words the bretton woods system from nine hundred forty four to seventy one and now we have had the dollar standard for the last forty years it's on its last legs to no man made monetary system can account for all of the forces in the free market they eventually build up all of this pressure become unstable and then stress cracks start to show that's what we're seeing now the reflection of gold and silver prices is just

a reflection of of loss of confidence in the u.s. dollar and you know ben bernanke he is pretty much committed to sacrificing the u.s. dollar to try to save the economy which will crash the economy and so it's a catch twenty two and alan greenspan really left him painted into a corner there's really he has no good options. and you know the dollars do gold is going to go to infinity so will silver so measuring gold and silver in dollars is really i think idiotic i measure it how much stuff it purchases and it's not purchasing near enough stuff yet it. isn't anywhere near a bubble anybody that says that gold and silver are high right now just. they don't know what they're talking about all right now let's talk about the c.m.a. and co max the c.m.e.

is the oversight for commodity trading they are selectively singled out so over versus other commodities and they've been success thing successively raising margin requirements four times or five times in the past week two weeks weeks three. and of course this is putting incredible pressure on anyone who has the sole right a margin account but why selectively are they doing this to sell over and they claim of course that it has to do the volatility but in fact it's their actions are creating the volatility so it's it's a bit of an orwellian newspeak here because they're creating the volatility by mucking around selectively at the margin rates and what what what is the c.m.e. have against silver is it because they're all financial terrorists in their bed with of life masters the capital to capital of all the financial terrorist in the world yeah well you know silver is one of the precious metals it is money just like

gold people don't realize that the currencies that we use today there's no country on the planet that uses money we all use currencies currency has to be a medium of exchange a unit of account it's got to be portable durable divisible and something called fungible which means each unit is interchangeable they're all the same a dollar in my pocket buys the same amount as a dollar in europe pocket money has to be all of those things plus a store of value over long periods of time the us dollar does not qualify as money . this thing about manipulating silver and changing margin requirements this is nothing new it has happened before if you go back to seventy nine you'll see that you know the hunt brothers people say to me you know when i talk about silver is it still selling below fifty bucks it's one nine hundred eighty high they go oh yeah that's when the hunt rather tried to corner the market and drove the price of

silver up to fifty bucks the hunt brothers were the sacrificial lambs to save the u.s. dollar back in one nine hundred eighty silver was in a run away and so was gold and when gold and silver in a run away it means that the death of the currency is right around the corner. and something had to be done and they raised margin requirements several times you know one hundred there's originally when they first started getting into silver they took delivery of physical silver and they actually got it out of the u.s. they flew it to switzerland but then they sort of got charmed by margin margin world works. well when things are going up but people don't realize that margin is a professional's game margin gets duller and duller on the way up but sharper and sharper on the way down you have to study the way that margin works as an investment goes up you're paying off your your margin you're gaining more and

more equity so you're leveraged less and less as you win but when you start to lose you get leverage more and more and more on the way down the hunt brothers got charmed into going out on futures contracts and using leverage and that was one of their big downfalls they were actually worried about the dollar collapsing they were really silver investors they weren't speculators they were investors they were protecting themselves from the stupidity of the federal reserve and the u.s. government i just wrote an article on this i can't believe that hundreds of thousands of people have read about the hunt brothers and haven't come to the exact same conclusion that the hunt brothers were used as the sacrificial lambs to save the u.s. dollar they rage raise margin requirements over and over again and then they put in position limits and then they finally put in something called liquidation orders

only meaning you can't open a new futures contract you can only close out old ones that's the same thing as saying until this rule is lifted there will be no new buyers that's the same thing as saying until this rule is lifted the price of silver has to go down and later. during the trials for the hunt brothers it was exposed that many of the board of directors of the commodities exchange were short silver so for every dollar that the hunt brothers were making these guys it was coming out of the pockets of the board of directors of the commodities exchange and so they put in this liquidation orders only silver peaked at fifty bucks and coincidentally that same day gold people fifty i don't think it was quincy jones i think the traders at large that had large positions in silver and gold said well if they can do this to silver gold is going to be next and they started selling i think the floor traders on the

commodities exchange at the silver pit those guys you know they got burned and then the gold guys found out a bit about it and said we better sell so i believe that this has you know i see that this has all happened before all of this manipulation however this time it isn't a few large investors this time it's the masses rushing in this time it's a bazillion small investors buying silver and here's one thing the precious metals always always win in the end they do an accounting of the currency supply this is one of the major themes of my book is how throughout history. country has so much gold and silver and then they come out with a currency that that gold and silver is measured in a national currency and they expand the currency supply in gold and silver lay in wait and then suddenly people lose confidence in this currency and they start bidding the price of the gold and silver up and sell the gold and silver rises to

meet or exceed the value of the currency supply in that country this is been happening actually since the year four zero seven b.c. with the first grade inflation in athens and it will continue to happen it's just natural all right you mentioned gold there a second to go out and of course it's to trade in. fandom for the most part i notice that central banks are buying gold i think i just saw a news story that mexico is buying one hundred tons of gold which is quite a large piece of gold china is out there shopping for thousands of tons of gold and what about china china of course buying all this gold but are they also interested in possibly buying silver i mean for i also want to mention that in mexico of course there is a movement to bring back a silverback currency to trade alongside the pace of the paper pays up and so there is a movement there to go to a hard money standard as is the case in some states in the united states plus other countries trying to get back to our money standard but talk about mexico and

china and mexico what you see there and china they also instance over on top of buying gold like allowing the countries that are trying to go back to hard money standards it isn't their central bank that is doing this the central banks are fighting this tooth and nail that's usually some independent politicians or in the case of mexico hugo salinas price for instance is the the originator of this silver movement in mexico but when it comes to china and all these other countries that are no net buyers of gold i just did a video recently called the game changer and if you look at the board market of the seventy's were gold went up twenty four times its original price and silver went up thirty six times its original price the central banks were net sellers on the average central bank sold more into the market than they were buying when they sell

into the market that depresses the price in still gold exploded and went up twenty four times its original price over thirty six this time just for the past couple of years central banks have become net buyers and a whole lot of the buying is actually. the book so the net going is a lot bigger than what we can see all right good point michael olea thanks so much for being on the kaiser report what check back with you hopefully catch up on the news and your side is gold silver dot com thanks mike 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 me max kaiser and stacy herbert i will thank my guest mike maloney of gold silver dot com if you want to send me an e-mail please just kaiser report at r t t v are you with a lifetime this is nice guys are saying by oh. you

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