well unfortunately that doesn't for now for more on the stories that we've covered this week r.t. dot com slash usa there's always check out our you tube page it's youtube dot com slash r t america and please follow me on twitter with at lucy catherine of one word. wealthy british style. markets. find out what's really happening to the global economy with much stronger for a no holds barred look at the global financial headlines tune into cars report on or keep.

the official tea house location giong phone i pod touch from the. child's life on the good. video on demand. smiling gold coast's an r.s.s. feeds now in the palm of your. question on the. 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 has been on the back foot why because

they c.m.e. and the comix the people in new york that make a market is over who are controlled by j.p. morgan i mean raising the margin rates unprecedented number of marginal rate ray. this is in a very short period of time let me explain what this is doing this is a recruitment mechanism it's like those abel ghraib 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 this over a lover asian army who's sucking more of their physical solver off the market you are being hoisted by your own margin put tartar c.m.e. . to an undisclosed location somewhere in the united states and speak with the beautiful and always five aisha's stacy herbert who i understand is

having a silver round made in her on the edge soon stacey hello i mean yes you could tell i'm in america because hearing me over there you can see a picture of bin laden over here you can see my seven rifles. so i'm ready. and ready for the show fred this summer liberation walk a long. way nicely back out of green. beret carrying a gun yeah and a for on a next i want a hard way whatever handle the log frozen fish in the sea and so they actually been mine is my first headline not because i want to talk about him but there's an 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 local property experts 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 i two hundred fifty thousand dollars oh i heard that. 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 way to get him over there so they could release of the somebody else but all bought the mortgages and of real estate on the criminality on wall street well max i want to 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 and san francisco and they signaled recently that their monetary policy is not going to tighten after. when theoretically q e two ends and from aircrews in ghent 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 comments egypt right well the european central bank the e.c.b. just telegraphed 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 be raising rates and they'll be bringing q e three soon enough so none of the central banks are raising rates which means that the surfeit of money flooding the globe and destroying people's purchasing power and

skyrocketing food and energy and that trend will continue and whatever price over bottoms out at i hope you've been blocked by that with both ends buy it until you're bleeding because five hundred dollars is a target what else you got both of these ten presidents say that 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 accelerates remember they 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 in place of protection 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 in for. congress look at what i pulled out and say well the tips are not going up and wages are going up therefore the inflation congress we've got to keep rates artificially low which of course without rates being higher there is no incentive to say 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 command and 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 us rules 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. a 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 just 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 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 they might 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 that in a minute but i want to show you that 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 deploy 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 others 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 will essentially thank purchases could help push the price of gold to two thousand dollars he says china is out more ball than 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 get to mexico. as well yeah you know there's one for banks around the world there are for the first time. years increasing their 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 bretton woods system which had the value of the dollars at gold in one nine hundred seventy one yeah and peter schiff makes a good point his latest editorial talking about the institutional appeal of gold not only isn't for banks but the endowment of one of the big universities in texas

just bought a billion dollars of the gold he says that 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 carter but kuwait. out of gaiety right i would avi's someone walk on it got six hundred billion in cash to work with if these sovereign wealth funds 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 and all thought look you have a supply but they're not really understanding what the man dynamics are going forward and has their back and said you know when you increase supply as they're doing now by flooding the market with more naked short sells 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 georgia back accuse of massive mortgage fraud sued for one billion by u.s. government what's going on there as they say harbor now the justice department has

to do it should thank one of the world's ten biggest banks by assets for at least one billion dollars for defrauding taxpayers by repeatedly lying to a federal agency the house and housing and urban development well securing taxpayer backed insurance for thousands of shiny mortgages better. it'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 calculate assign the prospect of being caught chitta cost of doing business that's right and george bank of course is in broiled in the scandal 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 why going to greg is being asked three appear before congress has

a carl levin for charges of fraud and perjury all right stacie our 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.

more news today harlan says once again flared up. and these are the images the world has been seeing from the streets of canada. showing hope for a shelter rooted a. mum. welcome back to the kaiser report i'm max keyser time now to go to sunny a los angeles and speak with mike maloney of gold silver dot com author of a guide to investing in gold and silver my pillow 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 eight 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 my following well you know as far as the sell off goes i really don't care but i actually i do i'm hoping silver will go down a little bit more because i want to buy more i want to know a lot more silver has yet to exceed its one thousand nine hundred eighty one i mean we came within a breath of it but it hasn't exceeded exceeded its one thousand 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 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. 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 one 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. 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 dollar's doomed 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 in how much stuff it purchases and it's not purchasing near enough stuff yet it is. and anywhere near a bubble anybody that says the gold and silver are high right now just. the they don't know what they're talking about all right now let's talk about the c.m.a. and comics the c.m.e. is 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 they celebrate a margin account but why selectively are they doing this to sell over and they claim of course that 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 marginal rates and what is the c.m.e. have against over is it because they're all financial terrorists and are better with of life masters the capital 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 by the same amount as a dollar in your 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 it's 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 on you

know the 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 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 rather 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 that 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 and 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 rather 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 but 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 so over 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. a country has so much gold and silver and then they come out with a currency but 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 betting the price of the gold and silver up until 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 all there a second ago and of course the two trade and. 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 those gold but are they also interested in possibly buying silver every four 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 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 mike 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 the silver movement in mexico but when it comes to china and all these other countries that are now 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 where 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 so with more into the market than they were buying when they sell into the merc it bit depresses the price in still gold exploded and went up twenty four times its original price silver thirty six this time just for the past couple of years central banks have become net grier's and a whole lot of the buying is actually. off the books so the net buying is

a lot bigger than what we can see all right good point my bloody thanks so much for being on the kaiser report let's check back with you hopefully catch up on the news and. 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 states you have our our thank my guests my moloney of gold silver dot com if you want to send me an e-mail pleased to report at r t t v are you until next time this is a nice conversation. marvin here broadcasting live from washington d.c. coming up today on the big picture.

you delete it. from. the future are covered.