america i'm christine for example so much for watching such a great night. max

kaiser the kaiser report well let's go back to think what other schools location somewhere in the united states and talk with states however if they are going to hear any of 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 stacy arbor is the commodities boom over and talk to me about this one yes. 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 plunge an oil and gold prices has raised speculation that the long boom is over do you agree obviously the people participating in the on line 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 bear market is the collapse of the dollar over right that's the inverse of the sol phenomenon it's really a story about the collapsing dollar and we had a bit of a relative strength of the dollar recently on the path of mine 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 says the current monetary system in the us he calls it a collectivist top down tyranny talk what's this about yes this is debate in new york city last weekend and he called it as you say collectivist top down tyranny a clever and a nimble he said clay to 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 you've got this out of control credit card being will that for every war america says oh let's invade pakistan get out of the american debt card oh it's invade iraq museum merican best card and of course the 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 stead of getting all those worthless 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 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 rich state greens red state blue state they're all to beading 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

and trillions of dollars and they're talking. 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 all the darks of the kleptocrats and the elites could not have stolen so much from them oh yeah exactly right and another big liar 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 week and 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 tyranny. as opposed to bottoms up proper tension there is go to compete anymore it's all been taken away by these top bar kochba crabs let's move over to europe great favorite topic of ours is of core greece and ireland now the european union is considering requiring collateral for greek it's an extra collateral sounds like they're moving in for the kill there now they're actually require physical collateral whether it's the acropolis 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 begin. that was that how it was rigged that to that they would need more money oh yeah 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 people understand they are the subject of a michael milken asked type hostelry at the end all the assets will be sold off and they'll end up with nothing and a few people or part of billions and then they will have of course lost their sovereignty birdcalls budget spokesman just after bite the bullet we need to help greece hop itself was 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 max i have mine here to go with that statement here's how much german banks are on the clock to the periphery so this is a great chart from credit rate down to 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 and 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. 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 all those rumors are abounding greece is going to default in 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 there's an interest or the u.k. faces nine trillion pounds of savings shortfall what's this about our well again we're talking about a top down tyranny so when we start at the top of the show we're asking the question is the commodities boom over what 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 yeah it's similar to the peak oil story i remember a story from a couple weeks ago memory 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'd call nine one one a third i don't know do i run out of gas so we have always pension systems credit if economy people have no idea how to prepare for this and just one day there's no more money so they had to spend it print print print and of course this is what is telegraphing us 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 that the other big important commodity that drives the world lets energy iraqi oil production cut back planned it's a global supply fear so iraq has just announced they're prepared 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 to near 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 they're self interested they're saying well if we can't. you know seven million actual barrels of oil per day. that will drive the price down of our limited our

finite resource bill respelling so rather not the world right now has people while opec has recognized people well now they're 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 and 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 system what people are well 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 we're talking about inflammable tap water cancer threats and earthquakes probably coming soon near you fracking is the 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 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 aaa rating you're not allowed to know there and yet people are like their children are coming down with those bleeds 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. think understand the value of their own life versus the corporate profits being done. right at their expense all right stacy thanks again for being on the kaiser report from some undisclosed location in the united states

thanks the next don't go away when we come back much more so stay right there. the official t.m.p. cation. called touch from the top story. the life. video. tease my old. feet now in the palm of your.

illegally. welcome back to the kaiser report i'm max kaiser

and as promised. then the legend eric sprott house brought asset management eric sprott welcome to the kaiser report and max are very happy to be here particularly because you have 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 think you still stand by that statement give us a rundown on where we are currently in the silver a market well i've always looked at silver and gold as a situation where the demand will exceed the 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 and we used to have no e.t.f. now we have e.t.f. he said 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 in a case a silver would really turn me on about 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 are forty to one ratio forty times of physical ounces a solar as they're buying gold when we sold our gold e.t.f. we raised four hundred forty million when we sold our silvery t.f. we raised five hundred fifty million james turk of gold money he sells more dollars on a silver than gold we have a little company called sprott money and it sells gold and silver coins we sell and way more dollars in solar than go and so here we are in a situation where the price is forty to one but the dollars going into it are almost there equal so i can't see the price ratio staying in the. strange all right

now recently presidential recount 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 seemed to get 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 widely 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 debt 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 tomorrow so we have not lost any faith in what's happened of 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 in a very quiet hours of last sunday night there was no particular reason for it and 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 and we had today i've always thought that silver would trade it is 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 open from 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 the profit the 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 until recently described as a rate now let's let's talk about some of the specifics here because people understand what this means if you're talking about the free out money world and the

central bank world they have an incentive to keep interest in paper versus metals this has been in the store attention so periodically the there's an incentive to try to keep them out all the cheapest possible to get people more interested in paper but on the 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 max i first of all 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 markets rick weren't really operating 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 nickel comix and the s. over the last week of probably every one point two billion ounces per day there's only seven hundred million ounces mined in a 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 there'd be no silver on the comix so i just i look at all these paper markets and i just believe that it's paper it's guys pushing buttons who really have no vested interest in silver other than 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

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 is 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 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 a billion ounces of supply half of the which are an e.t.f. it at some point in its last week or suggesting that oh there's actually eighteen billion ounces out there solver what it's not a true numbers erik's well i don't know that there are good numbers because most of the numbers that 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 and supply is delivered balanced every

year which we know is. 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 houses so they're really not available and half a million ounces at forty bucks an ounce is a is a mere twenty billion dollars which is hardly a lot considering what institutions could do in terms of moving into that market and it 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 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 going 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 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 what silver was fifty dollars an ounce the margin he 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 lawns and you know we always characterize that people as that are along the speculators well what about the people who were short is that's an even more of a speculation when you realize that your losses are limited 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 so that successful because you're so much interest worldwide in silver. much of it a credit to you and others that have recommended sold right and it's a worldwide phenomenon one guy taking on the comix right good point is 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 one last question i have the c.e.o. of endevor 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 once with one order his estimate 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 bite out of 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. who 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 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 the 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 the fee of currencies that would be much prepared to buy 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 had funds like john paulson are the position and all but let's talk about that retail person

that wanted to out buyer i know that's not your target audience but if this goes out to the world of millions of people this show goes you know two hundred million people all over the satellite system the the point is can't can we through that one or two ounce of wire 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 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 to buy gold or silver but as it is an alternative to 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 a marginal new investor it'll just exacerbate the shortage i believe we already have all right there thanks so much for being on the kaiser report ok max my pleasure all the best to you already and that's going to do it for this edition of the kaiser record with me nice guys or as they say are but i think my guest eric sprott if you want to send me now please do so at kaiser reported r t t v dot ru until next time this is back either saying i l. a time or been here broadcasting live from washington d.c. coming up today on the big picture.