seven thirty pm in moscow these are your r.t. headlines egypt's revolution back fires across the border with israel now worried by a sudden reconciliation to finds factions ousted president mubarak made it possible for cairo to work for a historic deal between rival groups fatah and hamas. a german court finds a former nazi death camp guard john demjanjuk guilty of it says read a war crime these include the execution of thousands of jews during the second world war the ninety one year old was sentenced to five years in prison but

released had to get appealed. president medvedev meets his pakistani counterpart r.c. follies adare to tackle threats coming from both countries talking there was terrorism and drug trafficking up next our financial expert max kaiser asked so if the commodities boom and the collapse of the dollar are really over stay with us kaiser report coming up. for the full system we've got it for. the biggest issues get a human voice face to face with the news makers. will be. bringing you the latest in science and signals from the rooms. we've gone through to share coverage.

max kaiser this is the kaiser report well let's go back to a secret undisclosed location somewhere in the united states and type of face her face her can you hear me there what's going on. max i can see you as well you're looking great oh that's fantastic let's look at some of these big stories here stays here or is the commodities boom over and talk to me about this one yes oh the news papers oh all of the television news shows they're all asking is the commodities boom over they often call it a bubble as well and here's a chart here from the guardian a kludge an oil and gold prices has raised speculation that the long boom is over do you agree obviously the people participating in the line pull are bit smarter than the headline writers at the guardian forty percent say yes the gloom is over

sixty percent say no it's not it's going to continue because of course the chris question max would have been is the bear market is the collapse of the dollar over right that's the inverse of the solver naaman on it's really a story about the collapsing dollar and we've had a bit of a relative strength of the dollar recently on the pantomime going on in pakistan but let me ask you about this what i've seen here jim grant you know the famous news letter writer he said. the current monetary system in the us he calls it a collectivist top down tyranny top class is about yes this is the great new york city last we can't and he called it as you say collectivist top down tyranny the clever and the nimble he said play this system for what it is worth. old he referred to as the people's money and the dollar as america's credit card well

that's exactly right you got this out of control credit card being wielded for every war america says oh let's invade pakistan give up the american card oh it's an american death card and of course and gonna need to pay that they just print more money and the rest the world is saying wait a minute wait a minute wait a minute and said of getting all those weapons paper we're going to buy real stuff like oil commodities gallen solver max in fact also acted to me was david stockman the former reagan o.m.b. director the office of management and budget director said the gold standard wouldn't have allowed forty years of deficits a noun member this is important to remember because when you're here in america you see that people are it's a very partisan very right left very red state greens if you read state blue state they're all debating which one of these whether it's liberals or conservatives that caused the deficit so there are screeching about how to cut it and it's chileans

and trillions of dollars and they're talking and they're fighting so hard over thirty eight billion dollars when in fact their answer has been right in front of their faces the whole time as david stockman suggests with the gold standard the people's money got all the darks of the kleptocrats and the elites could not have stolen so much from them oh yeah exactly right and another big player of course of the federal reserve bank looking out of headline here out of the rich richer well max this is a headline from m.s.n. money and it's an opinion piece but it's an opinion that is right now being ignored as the commodities fell back a little bit on the way up to ever higher numbers the q.e. two project was supposed to ease borrowing it consumers to spend again but lo and behold it has benefited only a few well read. using most people's cost of living you see that in these rich list

like sunday times rich list came out last weekend you know the richest in britain all these billionaires are almost at the same exact amount of wealth that they had at their all time peak which is right before the financial collapse of course the bottom ninety nine point nine percent aren't nowhere near they're still down twenty thirty forty percent right top down turny. as opposed to bottoms up competition there is no building to compete anymore it's all been taken away by these top down kaka kratz those move over to europe great favorite topic of ours as of core greece and ireland now the european union has said they're considering requiring collateral for a greek a it's an extra collateral sounds like they're moving in for the kill there now to actually require physical collateral whether it's the crop or less or the income stream from tourists paying to get into the acropolis now they're saying

that if you need extra money and of course they knew from the very beginning that was that how it was rigged that to that they would need more money oh yeah it's a large buyout or a hostile raid of a country to secure those income producing assets using borrowed money that was borrowed using these assets as collateral to get the loans to take over the country and this is what i don't think most people understand they are the subject of a michael milken asks type hostile raid at the end all the assets will be sold off and they'll end up with nothing and a few people or park of billions and then they will have of course lost their sovereignty merkel's budget spokesman would just have to bite the bullet we need to help grease up and solve what's the alternative we don't want to be pushed over the edge into restructuring yes we need to help them help themselves again that's another thing that empire always did max think of. the british empire going down to

africa to help those people help themselves help these pagans help these barbarians it's always about helping them help themselves yes missionaries of debt spreading the gospel of being indentured servants for the rest of your known existence that's a headline here to go with that statement here's how much german banks are on the clock to the career free so this is a great chart from credit rate down harrison german banks owed what so greece owes german banks twenty eight billion euros which is not much compared to those other big bowls of debt you see there portugal owes them twenty eight point seven billion ireland owes german banks one hundred fourteen point seven billion and spanos a hundred forty six point eight billion so i think what is important to look at when you look at greece and you look at their assets in the sovereign right now having to be used as collateral for these loans what they're really worried about are

these bigger states are telling ireland and they're telling spain you know we're going to take all your assets just like we're going to do to this little puny country relative to you if we can take it from there and we've set a precedence and we're going to take yours on those rumors or a bombing that greece is going to go forth yes and p. of course downgraded greek that again and now greece is questioning the integrity of the s. and p. . so maybe we'll get a good old fashioned dust up down there in greece awfully the greek people will win against the the financial terrorists now here's the full story the u.k. says nine trillion pounds of savings shortfall consists of up well again we're talking about top down tyranny so when we start at the top of the show asking the question is the commodities boom over what is the fiat's currency collapse around the world is is that spending well you know nine trillion pounds which

is. what fourteen trillion dollars needs there's a shortfall of that amount for people retiring so where is that money going to come from it's going to be printed or. older brits are going to have to accept a severely reduced standard of living yeah it's similar to the peak oil story i remember a story from a couple weeks come of people were driving around looking for gas that was cheaper or some other gas station until they ran out of gas and they were stranded and then they had to call the aaa service to tell them out because they had run out of gas or they've called nine one one and said i don't know if you do or run out of gas so you have all the pension systems credit you think people economy people have no idea how to prepare for this and just one day there's no more money so they have to have the spigot print print print and of course this is what is telegraphing in the prices of commodities particularly precious metals let's move on because again

we're talking about commodities and there aside from the money printing there's also the matter of supply and demand so let's look at the other big important commodity that drives the world lets energy iraqi oil production cut back planned adds to global supply fear so iraqis just announced they're preparing to have its official oil production in target forcing companies including b.p. and shell to renegotiate their contracts so they're now setting a new target to produce between six point five million and seven little million barrels per day by twenty seventeen down from the original players to pump twelve million barrels that sounds like quite a lot in the oil market for sure. yeah well they're also arguing supply and demand their self interest they're saying well if we can't. you know seven million extra barrels of oil per day. that will drive the price down of our limited our

finite resource that responding so whether or not the world recognizes peak oil opec has recognized people well now they're starting to ration oil well yes they're starting to think of their own self interest in a new world that we don't know where these currencies are going to end what how what will happen post dollar collapse and then i have one final headline here on the energy market and it is a really good analogy for the whole financial system the currency. willing to think because they're kind of brainwashed but they're willing to destroy their children's futures their children's health their grandchildren's health and futures track in the room the rise of hydraulic fracturing and this is from the telegraph and they're talking about inflammable tap water cancer threats and earthquakes probably coming soon near you fracking has been most vigorously criticised for the damaged caused by its waste water which contains carcinogens

such as benzene and radioactive elements such as radium some of these chemicals are in the secret cocktail of liquids injected in the wells of people just like because one of the fed it's all secret you're not allowed to know what toxic brew of assets are behind the u.s. dollar backing the u.s. dollar backing the fed and their chip away rating you're not allowed to know that and yet people are like their children are coming down with those leaves and nazia and and they're still allowing this to happen because they're being paid a thousand dollars or ten thousand dollars for the right. currency for the right to drill under their lands well that's sounds like a dire situation of folks that don't seem to understand the value of their own life person of the corporate profits being generated at their expense all right thanks again for being on the kaiser report from some on the slopes location in the united

states thanks max don't go away when we come back much more so stay right there. and. welcome back to the kaiser report imax kaiser and as promised. then the letter eric sprott brought asked that man is read eric sprott welcome to the kaiser report max are very happy to be here particularly because you've been such a stalwart in pushing people towards silver which i think is the best recommendation

anyone could make this decade and i'm happy to aid and abet that cause in any way i can all right eric sprott you call silver the investment of the decade i take it you still stand by that statement give us a rundown on where we are currently in the silver market well i've always looked at the silver and gold as a situation where the demand will exceed to supply and when i looked at gold in the last decade we had a great change in from the demand side where central banks used to be sellers and became buyers we used to have no e.t.f. now we have e.t.f. used at mining companies would hedge now they don't hedge and the shifts in ownership have been dramatic in a market where we really see no rise in supply and a case of silver would really turn me on but twelve months ago was as we witnessed people buying silver you realise that there would not be enough silver to buy and

as examples the u.s. mint today so there's many dollars of silver as dollars of gold when you realize that silver trades at a forty to one ratio mean to write forty times of physical ounces of silver as a ball and gold when we sold our gold e.t.f. we raised four hundred forty million when we sold our silver e.t.f. we raised five hundred fifty million james turk of gold money he sells more dollars of silver and gold we have a little company called sprott money and it sells gold and silver coins we sell in way more dollars of silver than gold and so here we are in a situation where the price is forty to one but the dollars going into it are almost dead equal so i can't see the price ratio staying in this. range all right now recently presenter got up to that all time high of fifty didn't quite break it then a lot of things happened concurrently first jim rogers opened his fat trap and said that's over it was

a hyperbolic move and this it seemed to hit the hedge funds to start selling silver but more importantly this is what i want to talk about because this there's a lot of chatter about this i want you to help me straight that's not for folks why they reported that you sold units of p s l v this is the physical sober trust the it's it's not really an exchange traded fund it's an actual trust with actual metal in it many took this to as an indication that you had sold so over there is a lot of chatter about this what what exactly is going on there and eric sprott well max that's totally the wrong interpretation that people should have made as you know we have to file to be a seller because we're a major owner of the units i got up to about a twenty two percent premium to the underlying net asset value we had filed we had some sales but as i stated last week every dollar of those proceeds went either back into the silver market because fortunately we can buy silver basically

at spot and or it went into silver shares we have been a net buyer of silver every day i will be a buyer of silver today i'll be a buyer of silver to morrow so we have not lost any faith in what's happened to silver and if i may i'd love to comment on what happened last week and i'm sure you must had the same thoughts but in my mind it was just another one of those raids that we experience from time to time it got bludgeoned to the very quiet hours of last sunday night there was no particular reason for it and then we end up with five foot margin rate increases it just reeks of somebody manipulating the price of silver down and that's totally my attitude i have no fear of silver here he. yes it will be parabolic but it's going to be way more parabolic and we have today i've always thought that silver would traded a sixteen to one ratio in terms of price to gold. to make it simple if we imagine gold at sixteen hundred that would suggest that silver can go to one hundred i

think it might even overshoot on the downside maybe trade as much as ten to one and the reason i think that is i believe that gold today is the defacto reserve currency it's outperformed everything for eleven years silver has always been a currency people are now treating as a currency much as you are recommending to people and it's a very very small market there's no way that with roughly fifty billion dollars of silver inventory around that we can make it a currency at these prices so i see the price going much higher you talked about the price action and so recently described it as a raid now let's let's talk about some of the specifics here because people people understand what this means if you're talking about the fear of money world and the central bank where all they have an incentive to keep interest in paper versus metal this is ben and historic tension so periodically the there's an incentive to

try to keep metals as cheap as possible to get people more interested in paper but on the mic how does specifically go through some of the bullet points at how a raid goes down when they attack silver and gold well i mean max at first well i base this on our experience over the last eleven years in the gold and silver markets we get the very very sharp declines i think last week's decline was premeditated it happened in the early hours of sunday slash monday morning when the markets really weren't really operating and was closed china was closed was a great opportunity just to mark it down and then of course income the margin increases just as the price of silver is down six dollars which puts everybody under. stress. so i think it was very much orchestrated one of the things that i think we should all look at is the trading of silver in the paper markets which i mean the comix and the s. over the last week and probably every one point two billion ounces per day there's

only seven hundred million ounces in mind any year there's only thirty three million ounces of physical silver at the comix it's available for delivery by the commercial shorter's i mean if if something like three percent of the people who are trading silver three percent in one day demanded physical delivery it would be no silver on the comix so i just i look at all these paper markets and i just believe it's paper it's guys pushing buttons who really have no vested interest in silver either and trying to move the price one way or guess which way the price is going so i think the key markets the physical market what are people doing in terms of converting their feet over to silver and gold and obviously that is a very has a lot of momentum today and i don't think this raid is going to work even though what is was shocking last week when i've done a lot of work and you're newsletters and your research on the supply side of what

really is above ground in a silver market and you noticed that some supply was overstated or double stated you correct me if i'm wrong you're talking about there being approximately eight billion ounces of supply half of the which are an e.t.s. it at some pundits last week were suggesting that oh there's there's actually eighteen billion ounces out there what are the what are the true numbers erik's well i don't know that there are good numbers because most of the numbers that have been prepared for the silver industry come from a couple sources which we don't rely on because we think the data is misleading in most of the they always show the demand and supply is silver is balanced every year which we know is power. be caught and we prove that the investment demand was way beyond the investment demand that these organizations were suggesting so i for one don't believe any of the data one billion ounces that the commonly referred to

number as you know between the various e.t.s. and trust fund such as ourselves you can easily account for half a billion of those one billion ounces so they're really not available and happen million ounces at forty bucks announces it is a mere twenty billion dollars which is hardly a lot considering what institutions could do in terms of moving into that market and i might comment that you know the institutions were slow to get out of the gold market and you know i describe some of the people who bought back in zero eight is johnny come lately because we already had a neat your bull market in gold but a lot of people thought it was the start of something and of course the timing was good because of q.e. one. those same institutions i do not believe are involved in silver to any extent and i suspect that they will get and go with silver and of course once they get involved with silver there's going to be a horrendous shortage of silver and max one for anything back to the rate as you well know the commercials are short silver and i think it was just getting totally

out of hand from their positions when silver was fifty dollars and as the margin they had to keep putting up and that's why i think this raid was perpetrated was more to get the shorts off the hook than it was to reduce the speculation of the longs and you know we always characterize the people as that are along the speculators well what about the people who are short is that's an even more of a speculation when you realize that your losses are unlimited so i think it was just like the way they nailed bunker hunt is what they're trying to do this time but i don't think they're going to be that successful because you're so much interest worldwide in silver. much of it a credit to you and others that have recommended celebrate it it's a worldwide phenomenon not one guy taking on the comix right good point in the speculating on the short side is far more inconsistent with keeping a fair and orderly market then any so-called speculating on the long side let me ask you one last question have the c.e.o.

and devore silver on the show a couple of weeks ago and i asked them the question what would happen the price of silver of a million people bought announced today if it took you know a million ounces of silver off the market in one. and it was well you know the market would have to mediately discount that as a phenomenon that would perpetuate for three hundred sixty five days of the year and you'd see a thirty percent markup on the price of silver immediately that was is that was his answer so i put it to you the question a million people buy now the silver today what happens to the price of silver if anything but i think the more important thing max is you know what the big money does i think it's important that individuals want to buy an ounce of silver and almost anyone in the world can buy an ounce of silver maybe it's not a million people but a billion people. but you don't appreciate that there's a lot of institutional money around for just we're going to be starting a mutual fund just for canadians that will only buy silver that hopefully will be

tomorrow in the tronto and we would expect a large flow into that fund which in itself might buy a million ounces so if you can if we get these institutions that want to be involved in the silver market it will be i think more significant than individual certainly more significant than one million individuals but i think there might be more than a million people who realize that the writing is on the wall for defeat of currencies that would be prepared to buy well more than an ounce of silver debt but we know the markets are dominated by institutions we know the institutional money is coming in we know that the central banks are buying we know that major hedge funds like john paulson are the huge position and all but let's talk about that retail person that one or two ounce buyer i know that's not your target audience but if this goes out to the world of millions of people the show goes you know two hundred million people all over the satellite system. the the point oh you can't can we through

that one or two ounce buyer what i would point do you start do they start to take over the price discovery that's what i'm talking about this huge army of people who are disgusted with the fraud in the banking system well max i have no doubt that people are doing that already so for example i mentioned it we have a website called sprott money dot com where we sell small amounts of silver to canadian investors canadian retail investors and i've always encouraged anyone who could tell you there by gold or silver but as it is an alternative to fee of currencies i think that the audience is much larger than a billion and you know when you see what's going on in china and india where they have you know many billions of people who apparently line up every day to buy gold and silver it's going to be a big factor in the silver market there just is not a big surplus of silver and when you bring in the marginal new investor it'll just exacerbate the short he said i believe we already have all right our spread leave it there thanks so much for being on the kaiser report ok max my pleasure all the

best to you already that's going to do it for this edition of the kaiser report with me max kaiser and stacey arbor i thank my guests eric sprott if you want to send me an email please do so at kaiser report r t t v dot ru until next time this is backscatter saying i owe him. money. all. of them.