i certainly disagree with many but at least we're willing to have those discussions to ask those questions to question assumptions and to look beyond beyond us up to a point of view the time when most mainstream news casts we simply sweep the serious issues under the rug with a smile i don't have to be worth something anyway that's just my two cents unfortunately we are out of time and that does it for now but up the eastern in the next hour and a half or another new newscast you can tune in at r.t. dot com slash usa or follow me on twitter at lucy got no getting. wealthy british. writers.

market. find out what's really happening to the global economy with much stronger no holds barred look at the global financial headlines. there's a report on our key. we'll. bring you the latest in science technology from the realm plus. we've got the future of coverage.

max kaiser this is the kaiser report it out over let me tell you something about silver there is no alternative your teen up there. there is no alternative let's bring in steve zero zero manc hey wait a minute were you at some undisclosed location where was the some bunker somewhere what's going on max i have to do is read the strap and see that i was in connecticut you had a strap on and. listen when you talk about silver we're going to talk about commodities and inflation in general today the first headline max is starbucks

chief howard schultz attacks coffee speculators so howard schultz the president of starbucks the world's largest coffee chain has a tax back elaters for pushing up the price of coffee to a thirty four year high he said quote through financial speculation hedge funds index funds and other ways to manipulate the market the commodities market is in a very unfortunate position this is resulted in every coffee company having to pay extraordinary high prices for coffee ourselves if you want to stop the price of coffee from going on there don't let any of your customers use credit cards every time a customer goes into your store and uses a credit card they're creating three our debt and of zero out of nothing that's why the price of coffee futures are higher if you knew anything about economics you would know that but instead you blaming the speculators because you're dunderhead yes this is an expansion of money supply and banks create it through people

borrowing money from them and you still see that at the starbucks all over the place people using their credit cards to buy right on is loaned into existence less than five percent of the money in existence is actually printed by a government the other ninety five percent is loan into existence from banks and every time somebody used their credit card they're increasing the money supply of those guy looting their purchase and probably in fact he says this in his statement as well without any real supply or demand issues we are. witness to the fact that most agricultural food commodities are record highs at once and coffee is that a thirty four year high of course he forgets to mention the supply and demand for currency the supply demand for credit yeah that's what's driving this market again howard schultz a guy who figured out one day that people in america i want to enjoy

a cup of coffee like people in europe is not the guy to ask the micro economic considerations that are driving the price of coffee itself no howard just stay there and do your barrister thing and don't talk about economics because you're obviously completely financially illiterate so inflation is also in the next headline china inflation spreading beyond food adds pressure so china's inflation is spreading beyond food as the headline says signalling premier wen jiabao its strategy of quarter point interest rate increases every two months has yet to contain consumer price is right well this is part of the global currency wars and why does john have so much inflation is because of all of the money that's being sense of them visa v. walmart that's right but also the u.s. has been engaged in two rounds of quantitative easing trillions of dollars printed the us and their currency in china now the room indy is pegged to the dollar so every time the us prints money every time ben bernanke it prints money china has to

print money who's a currency manipulator china or the u.s. that's the big question here are you feeling well obviously this is the tell that lags the dog or vice versa you can't really say china is the currency manipulator for pegging to the dollar which is being manipulated but it's the world reserve currency so they say what can be possibly manipulated because they live in a snow globe of denial they're in a world one of three hundred sixty degrees of fraud they don't see that there is a currency manipulator tim geithner you're the currency manipulator max the central banks around the world i would disagree that anyone unique when i'm we're in disagreement on that one because china's empty. is that fifteen point three percent in april alone so they're doing a darn good job printing money and in response to this limit down regulators expanded the range in which gasoline and oil futures control and today well again they're they're appeasing the speculators so going back to the year two thousand the commodity futures modernization act when they remove position limits which are

there for a good reason to prevent any one bank from dominating the entire market in manipulating prices but they're removed that piece of regulation and every time now that the markets get out of control they simply remove all manner of regulation or framework or any any way to buffer rampant manipulation so the response of regulators should be to regulate not to continuously deregulate well but it's also got a free market day have a specific outcome they prefer so they don't mind if the dow continues to go up or the s. and p. goes up and they don't mind of gasoline prices fall so they'll allow extreme moves in those directions that they prefer but they're micromanaging which direction they want but the stock market is in a bubble and it should have margin rates increase to prevent the stock market from reaching in the apex of a nother huge gargantuan bubble in bust but that's being left alone because it's

capitalized by the banks themselves that own the regulators whereas precious metals which are the car the two shouldn't to corrupt bankers they are being subjected to onerous margin rate increases in a selective prosecution of various markets what has been called violent currency moves is resulting in a violent precious metal moves but it's also resulting in the spread of radical lies precious metals buyers around the world well max listen you know the beginning of the whole financial crisis began with a of violence currency move in that with them. violent move in the us dollar which started by a treasury using a euro swap remember in two thousand and seven and thus began the move silver and gold are also currencies and so violent moves in this we could see that we are what we are seeing the knock on effects and all the markets around the world but look they intervened in the in the gasoline and oil futures markets they are they're

introducing all sorts of margin rate hikes first take a look at this picture i took in connecticut last week you see that prices are well over four dollars there for the average price of gasoline so the headline following this crude plunges but someone tell the gas stations and refiners average price of regular rises by two point two cents overnight so following that collapse in the gasoline futures we saw gasoline prices rise exactly because there's a disconnect between the paper market and the physical market because there are seven hundred trillion in paper around the world on a fifty trillion dollar global g.d.p. and when you drill down to markets like gas you've got oil collapsing in price while prices at the pump are increasing because that's the actual physical market is actually going up but the paper market is being manipulated in all manner of violent manipulated to. go path ology being practiced by these psycho

pathologically insane arbitrage yours and qualms places like wall street and goldman and j.p. morgan were you by the way during the period you know you just kind of disappeared there for a few days you sent an errant granny in the owners are in the other end you put your guns yes you got a gun to look like a bunker in one of those fish that can only come out of touch and talk like. fish fish fish fish i mean where were you exactly i mean you kind of want the grid actually somebody in the comments section said they've never seen such a redneck room. but we're talking about all the margin. rate hikes that we see well shanghai also joined in a member you seem to differentiate you think tim geithner and ben bernanke you are somehow more powerful and uniquely corrupt than the rest of the world but if you look at china they're doing the same thing money supply a fifteen point two percent in one month alone and then we see this headline shanghai and third silver margin hike in month right and what what's happening is

things your average is that the margin rates going to go up to one hundred percent which means that you've got people owning the precious metal for one hundred percent cash which is the same as having a gold or silver standard so the c.m.e. in trying to dissuade people from precious metals by raising the margin rate is actually creating a de facto global precious metal standard that's why i say there is no alternative you talk to me about the price of silver but i say to you there is no alternative paper is complete nonsense thirty is the alternative i think this is the second amendment issue because you talk about all those guns behind me connecticut but i think this is the second amendment issue you know that second amendment gives you the right to bear arms to defend yourself well i think bearing arms in the currency financial war is gold and silver those are protection against the financial war if silver bullets i have a silver bullet five gold bullets two those are chavez of the gold dollars i mean it's always good for werewolves and stuff and ben bernanke but i mean gold us

a little expensive ok but let's move on to this headline because i'm going to prove to you that they're trying to keep you from defending yourself against currency collapse dollar engraver danger than the euro so this is axel merckx in the financial times and he says imagine a country that spends and prints trillions to patch up any problem now imagine another country where there is no central treasury meaning that bailouts are less easy and which has a central bank that has mopped up liquidity over the past year rather than engage in quantitative easing of course is comparing. the u.s. and their dollar three european area and their euro but only let me explain something about the dollar enjoying a bit of a balance recently time exactly to the moment when i've been logged and spectacle a stand simply guy pakistan shot violence film little love and huge american

state sanctioned terrorist blood guts pentagon armed military conflict the military industrial complex i.e. you are you d s it's a huge platter fest that we've seen which is the basis for the rally in the dollar there's no jobs there there's no manufacturing there though think back to the dollar this broken states tension terrorist acts that's what the total child is what the bill and more any of us love the older more bangladesh's one of the older more probably one of the only more so effective i call us if you want to go you pine for the story is told through the ports over and gold there is the alternative bangladesh and the little blip it's not a rally in the dollar max there's a lot of cool if we don't have that much time left and i want to show you another headline banks driving people to suicide so this is from ireland and this comes from one of ireland's most senior high court officials and he's spoken out about banks hounding people over debt some of which has already been written off and

they're still hounding people to their death he said quote we know which banks were the cheerleaders for the celtic tiger yet some banks are reverting to type to come to court assuming that the banker always wins anyway that's not how the law sees it it has for the last few years of course bankers always win but this guy this judge in ireland is saying no no no not here not on my watch. this is a trend you see first in india of course the bankers go after the farmers and there's the indian farmer commit suicide every thirty minutes thanks to the genetic lea my modified currency seed the monsanto that is the genetically modified seed which acts as an agricultural currency and you see suicides in india one every half hour now in ireland people are committing suicide to escape the credits are bankers you see this all over the world and to escape to debtors prison the bankers prison there has to be what robespierre said many years ago if the social contract is

broken the people must revolt well my final word is that gold and silver are a second amendment issue there is no alternative thanks so much stacey thank you max oh right you don't know where there is more coming your way. live. ajam are here broadcasting live from washington d.c. coming up today on the big picture. the official location on the phone the i pod touch from the.

video. all season long cold calls and says feeds with the palm of your. question on the call. we'll. bring you the latest in science and technology from around the world. the future of covered. hi welcome back to the kaiser report i'm max kaiser time now to go to new york speak with a reggie middleton of boom bust blog dot com reggie milton welcome back to the kaiser report it's good to be back reginald the last time you're on the kaiser record you tell us how zero zero zero percent interest rates are starving the banks

that it was designed to say that the time you were the only analyst in the world to mention that it would starve the banks and you've been proven correct so tell us more about this what's the current status the current status is. same as before the banks are not making and the real economic profit off of their interest bearing assets and they are taking a losses on the liabilities. on the assets that have become idle to. i think also in the last i'm going to show i discussed something that was relatively contrary and unique as well and that's banks that were actually doing a walkway for foreclosures well. we're going to story this morning dead head cities of these flood cities that were suing banks for keeping care and maintenance on foreclosed properties so now you have banks actually have collateral that have a negative value to it it's actually costing them money so the collateral is

actually proving to be the antithesis of what the end to support it instead of backing a loan it's creating people whole for the said loan so not only would they probably never get the money back they have to dump the money and. it's also difficult to see how to get out of it if the cities overcome a question and i can see cities i mean it's because he's becoming less and because hard times are all over everybody needs the money and if the city see the money they're probably going to go after roger middleton let's focus on this a little bit more so you've got a situation now where the banks recently. it seemed as though they were getting washington to pass the new laws to absolve them from their mortgage fraud the mortgage selling problems or to cut a deal and get it behind them and do some accounting tricks on their balance sheets but what you're saying now is that the states are stepping in and they're actually suing these banks and so how how much teeth do these lawsuits have you think reggie i don't know i'm not

a lawyer and this for us is i know we're in. uncharted waters but if the banks saw a legal say host. the banking industry is a new tobacco industry now only on municipalities and cities suing the banks you have the banks n.b.a. and mortgage backed security investors interest suing the banks for you know fudging practices misrepresentation you have the market g.'s suing the banks the people who have been frozen for close support and that is like a bottomless pit think about the amount of mortgages taken down they have been taken out during the boom times just think about two percent of those people sumi banks you know it's a limited liability so if you think of the battle companies going to be bills you probably haven't seen anything yet and tobacco companies didn't run at thirty times leverage by the way right the pack of companies that run the three times leverage but let's go back to two thousand and eight for

a second we know that hank paulson went to congress to negotiate some bailout money and this was augmented by further bailout money do we know what the total price tag was for the bailout money and my second question is based on what you're saying here can we anticipate another round of bank bailout money and will it be approximately the same size or less or more well i differ don't know what the total price tag for the bailout is i could give you a number that's not. you know not every medical number and the price to be allowed . is the economic future of a country if you bet be insolvent fail be able to crash hit the bottom or to be on our way back up we have economic productivity. at a brisk level. we decided not to do that we decided if you go dogs in place and now rejecting law so out of it i have absolutely no idea what they're going to the number is but the actual true economic cost is future growth now as for any other

bailouts also read another article this morning oh yesterday stating that the banks are considering settling their fraudulent foreclosure issues with attorneys generals etc for five billion dollars if they get away with that that is in essence a girl out because we're talking at least twenty twenty five billion dollars of potential liability at minimal from a realistic economic perspective so if you could if you could take twenty thirty billion dollars of your problems and you can buy them sell them all for five billion dollars you've been bailed out to the tune of fifteen billion dollars let me get your comments on something that's in the news is to talk about goldman sachs for a moment two stories have come out s. and p. just downgraded goldman sachs and we've also got a downgrade from the wall street guy well they came in and said that based on matt

exposé in rolling stone magazine that the stock's price target was lowered substantially by more than forty dollars and goldman sachs case the stock is down six billion dollars already today and making reference to this matt taibbi article did you read the matt taibbi article you're a novelist or a financial analyst analyst did he get anything wrong in any of his analysis or is not tied me you know he's a primate he's a journalist an investigative journalist he's not a law straight guy some people might question his analysis but reggie now. what do you say about his analysis is it accurate to be honest i didn't get to delay this. article by teddy but i can tell you i've been attempted to alert those who felt they called the six guys that have excrement and does not smell the goldman sachs has been overvalued for quite some time i'm starting in two thousand and the spring of two thousand and eight i made it very clear that the amount of risk is

sex tapes and money his business and the rest of the assets are now covered by the profits of doing business from an economic perspective you know they're covered from an accounting perspective and they make a bunch of accounting earnings in the price goes up but they take significant risk over the last two thousand seven of the last three or four years their rates come the bike they're. basically. i'm going to watch my tongue here for the first time in quite some time but goldman sachs business model is basically to take advantage of his clients that's where the excess spread comes from and that's where they could have. trading quarter with not one loss an insider trading quarter statistically having a corner without one day of trading losses as was the case with gone and j.p. morgan and bank of america i think between the three of them they had one down day in trading losses statistically is that really possible is this is possible is jumping off the empire state building in london somewhere in california which is

approaching told me. oh it's a possibility but the chances of good ever happening you know very slim you know in general you know i have children and i tell my kids very simply when it sounds too good to be true chances are it's too good to be true i wouldn't want to do business with somebody who had one trading loss in two or three quarters you know i wouldn't it's not worth the chance just not worth the risk or let's talk about the stock market for a second it appears almost as if washington particular ben bernanke and working through the c.m.e. and other regulators they're trying to corral people into equities they keep raising the margin requirements song commodities but they don't raise margin requirements on training on equity futures and this based on all the economic indicators you've just discussed being a horrible shape stock market's trading near all time highs is that is our disconnect there of course is it just made i believe the paper the market has been

significant overvalued you know because those who follow my blog know that the crash of two thousand and eight and first quarter of two thousand and nine has never finished the government has attempted to reap load reinflate the bubble which they succeeded in nominal terms in the u.s. equity markets the problem is bubbles and i cannot make progress you know you blow a bubble it pops when the pops use the values you go below the trend line and that's. not the way to do it and that's the way their policies has been conducted in this country i disagree with it but we'll see if i'm wrong or from correct if i am correct then you're going to see your prices drop significantly and if i'm wrong then it will keep going up despite the fact only three revenues in margins are going down to direction and the spike in fact the input costs are going up despite the fact employment is going down. that doesn't sound like investing that sounds more like you know chase bernanke he does that's not enough investment and that's

not a true market with true price discovery right centrally planned market trends are true grandma could stay in the family all right last question pertaining to the dollar folks say that the dollar is stronger than the euro they look at the periphery countries in europe and suggest that the euro is an errant lee structurally weak as a result of these peripheral nations in the us however they have quite a bit of trouble based on what we've been saying right here what is your take on the dollar versus the euro both have significant flaws that have significant issues i think that we have a triumph rate of. super economic superpowers the e.u. the us and you have china and very each each of each one of them have fairly unique problems but taipei related in a correlation between the problems of basically the public and how they handled it the e.u. is in a highly indebted it's their face in every state so is the us the e.u.

has the too many chiefs and none of india's problems where they have. separation of strong economic countries and the very weak economic countries that are pulling other countries down and they're going to default to restructure you've heard it from me it's guaranteed to happen it may be called something different but it's guaranteed to happen and that's going to do significant damage to euro and cultivate spike the u.s. has too much debt and basically running a ponzi scheme which treasuries there's no way in the world that treasuries should be increasing the price and that rates will not go up and then you have china which . anecdotally appears to have avoided all this because if they simply ran a bubble they open a bank spigots told everybody and then include anything that could be considered transaction in g.d.p. and it looks like they're doing well they're going to crash and fade it's going to be inefficient every crash one way or the other but i think if the powers are basically waiting for the other to blow up while the close of the last gets to when . capital flies in

a direction that's. press that i can. you know it might not be the case but i see the case that the us is on is unsustainable i see the case of the guaranteed destruction serial destruction in several countries and china is rampant inflation there's actually no way to tonight so if china and the you go before us us going to fifty us and china go benefits etc if it's a very good way to run the country's finances but from what i'm seeing from the outside looking in as an outsider i can't see them doing anything else besides that because each step to each. of the three entities are taking don't seem to be fundamentally sustainable and just a final political just fundamentally just all right it sounds like what some call a currency war and the world war three being fought on the currency pets is exactly

what's going on regimental to thanks again for being on the kaiser report ok very welcome back again and that's going to do it for this edition of the kaiser report with me nice guys are. our thank my guests reggie melton of blog if you want to send me an email please do that kaiser report that r t t v are you guys are saying .