back when nobody dares to ask week you marty question more. hey tom are in here broadcasting live from washington d.c. coming up today on the big picture. max kaiser this is the kaiser report well let's go back to think about this cause

location somewhere in the united states and talk with stacy her face her can you hear me that 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. of the newspapers 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 cleansing of oil and gold prices has raised speculation that the long was over do you agree obviously the people participating in the poll are a bit smarter than the headline writers at the guardian forty percent say yes the boom 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. 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 path of mine going on in pakistan let me ask you about this what i have seeing here jim grant you know the famous news letter writer he says the current monetary system in the us he calls it a collectivist top down tyranny taught us about yes this is a debate in new york city last weekend and he called it as you say collectivist top down tyranny a clever and an imbecile he said play the system for what it is worth gold he referred to as the people's money and the dollar as america's credit card well that's exactly right out of control credit card being will that for every war

america says oh let's invade pakistan get out of the american that guard oh let's invade iraq and that guard and of course and tony need to pay the bad thing just print more money and the rest the world is saying wait a minute wait a minute wait a minute and stead of getting all those worthless paper we're going to buy real stuff like oil commodities ball and solver max in fact also acted to be 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 and now remember 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 red state blue state they're all to be doing which one of these whether it's liberals or conservatives that caused the deficits and there are screeching about how to cut it and it's chileans in trillions of dollars and they're talking they're fighting so hard over thirty eight billion dollars when in fact they're. answer has been right in front of their

faces the whole time as david stockman suggests with the gold standard the people's money the 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 is the federal reserve bank looking out of headline here out of me 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 while raising most people's cost of living and 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 was right before the financial collapse of course the bottom ninety nine point nine percent are nowhere near they're still down twenty thirty forty percent right top down tyranny. as opposed to bottoms up competition there is go. anymore it's all been taken away by these top bar kochba kratz let's move over to europe great favorite topic of ours is of course greece and ireland now the european union are considering requiring collateral for greek an extra collateral it sounds like they're moving in for the kill there now they're actually require physical collateral whether it's a crop a list 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 but to that they would need more money.

yes it's a lot of 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 greek people understand they are the subject of a michael milken asked type hostile raid at the end all the assets will be sold off and they'll end up with nothing and a few people park and billions and then they'll have of course lost their sovereignty birdcalls budget spokesman would just have to bite the bullet we need help greece help would 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 big headline here to go with that statement here's how much german banks are on the block to the periphery so this is a great chart for credit write downs and 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 one 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 their 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 to this little puny. country relative to you if we can take it from then we set

a precedence and we're going to take your dollars rumors are abounding that greece is going to default and the s. 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 the greek people will win against the the financial terrorists now here's an interim story the u.k. faces nine trillion pounds of savings shortfall what's this about up well again we're talking about top down tyranny so when we start at the top of the show asking that question is the commodities boom over or is the fee on its 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 and yeah it's similar to people while story i remember a story from a couple weeks ago member 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 bail them out because they had run out of gas or they've called nine one one and said i don't want to do i ran out of gas so we have all these pension systems if it to credit you economy people have no idea how to prepare for this and just one day there's no more money so they have to hit 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 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 to global supply fear so iraq is just you know it's 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 million barrels per day by twenty seventeen down from the original plans 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 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 responding so whether or not the world right now has peak oil opec has recognized people are starting to ration oil well yes they're starting to think

of their own self interest and in a new world that we don't know where these currencies are going to and what have no what will happen post dollar collapse and then i am one final headline here on the energy market and it is a really good analogy for the whole financial system the currency system what people are willing what toxins people are 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 frak in a room the rise of hydraulic fracturing and this is from the telegraph they're talking about inflammable tap water cancer threats and earthquakes probably coming soon near you fracking has been most vigorously criticized for the damage 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 what goes on in the bed 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 aaa rating you're not allowed to know that if people are like their children are coming down with those leads and nazia and then they're still allowing this to happen because they're being paid a thousand dollars or ten thousand dollars for the right of currency for the rights to drill under their lands well that's sounds like a dire situation of folks that don't think i understand the value of their own life versus the corporate profits think that. right at their expense all right thanks again for being on the kaiser report from some undisclosed location in the united states thanks max don't go away when we come back much more so stay right there.

a cluster. inside the container you have. and you can have anywhere from dozens up to hundreds of there's a huge market right now for battle area clearance because there are a lot of countries in the world that are contaminated by unexploded ordnance. that you've got these companies and n.g.o.s that have basically shrunk that have an expertise to get rid of these weapons what they do is they go to these places they will hire local train the locals how do the clerics let the locals basically take ownership because you know they have a vested interest in clearing their home and they're putting themselves at risk every single day when they go out there to clear areas of. a.

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welcome back to the kaiser report i'm max kaiser and as promised. the man the larger eric sprott also brought us that man is ren eric sprott welcome to the kaiser report max are very happy to be here particularly because you have been such a stalwart in the 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 the rundown of where we are currently in the silver market well i've always looked at silver and gold as

a situation where the demand will exceed the supply and when i look 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. that we had d.t.'s used that mining companies would hedge now they don't hedge and the shifts in the ownership had been dramatic in a market where we really see no rise in supply and a case a silver what really turned me on about twelve months ago was as we witnessed people buying silver you realize that there would not be enough silver to buy and as examples the us mint today so there's many dollars of silver as dollars of gold when you realize that silver trades are forty to one ratio going to right forty times of physical ounces of silver as they're calling 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 than gold we have a little company called sprott money that sells gold and silver coins we sell and way more dollars of solar 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. strange all right now recently the presenter got up to that all time high a 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 seemed to get the hedge funds to start selling solar 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 saw over trust the it's it's not really an exchange traded fund it's an actual trust with actual

metal in it many tempest as an indication that you had sold so or there's a lot of chatter about this what what exactly is going on there 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 that 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 have 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 good very quiet hours of last sunday night there was no particular reason for it and then we end up with five 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 than we have today i've always thought that silver would trade at a sixteen to one ratio in terms of price to gold. to make it simple if we measured 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 so performed 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 a currency at these prices so i see the price going much higher you talked about the price action until recently described as a raid now let's let's talk about some of us specifics here because people understand what this means if you're talking about the fee out money world and the central bank were all they have an incentive to keep interest in paper versus metal this has been 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 money how does specifically go through some of the bullet points out how a raid goes down when they attack silver and gold well i mean first of all i base this on our experience over the last eleven years in the gold and silver markets we

get these 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 england was closed china was closed it 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. straps. 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. so again last week it probably every one point two billion ounces per day there's only seven hundred million ounces mind a year there's only thirty three million ounces of physical silver at the comix it's available for delivery pari 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 there'd 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 and so over there in 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 at over to where silver and gold and obviously that is a very has a lot of momentum today and i don't think this rate is going to work even though what was shocking last week when i got a lot of work and your newsletters and your research on the supply side of what really is above ground in the silver market and you noticed that some supply was overstated or double stated you correct me if i'm wrong you are talking about there being approximately eight billion ounces of supply half of the which are an e.t.s. it at some point in its last week or suggesting that oh there's actually eighteen

billion ounces out there cellar what are the sort of true numbers erik's well i don't know that there are good numbers because most of the numbers have been prepared for this silver industry come from a couple of sources which we don't rely on because we think the data is misleading and most of the they always show the demand supply is silver is balanced every year which we know is. incog and we proved 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 is 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 half a billion ounces at forty bucks an ounce as 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 then my 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 an eight year 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 humor he won. those same institutions i do not believe are involved in silver to any extent and i suspect that they will get involved with silver and of course once they get involved with silver there's going to be a horrendous shortage of silver and max one further thing 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 that's 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 and that successful because there's so much interest worldwide in silver. much of it a credit to you and others that i've recommended celebrated it's a worldwide phenomenon one guy taking on the comix right good point. the speculating on the short side is far more inconsistent with keeping a fair orderly market then any so-called speculating on the long side let me ask one last question i have the c.e.o. and ever silver on the show a couple of weeks ago and i asked him 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 day one swoop one oyster his estimate was well you know the market would have to immediately 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 i million people going out of silver today what happens to the price of silver if anything but they did more importantly maxes 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 example we're going to be starting a mutual fund just for canadians that will only buy silver hopefully will be to morrow 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 the individual serving 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 the fia currencies that would be much prepared well more than an ounce of silver 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 of gold but let's talk about that retail person that wanted to out spire 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 point can we through that one or two ounce buyer what i what 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 discussed it with the fraud in the banking system well max i have no doubt that people are doing that already so for example i mentioned that 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 to buy gold or silver as it is an alternative fee of currencies i think that the audience is much larger than a million 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 will just exacerbate the shortage i believe we already have all right let's 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 record with a nice guys or as they say harbor i think my guest eric sprott if you want to send me now please do so at kaiser reported r t t v dot are you until next time this is max guys are saying i l l l a

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