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from the choose option. life. video on demand keys money fuel costs and r.s.s. feeds now in the palm of your. question. call. the gulf. bringing you the latest in science technology from the realm. we are going to the future of coverage. more news today violence is once again flared up. these are the images pro girl has

been seeing from the streets of kandahar. trying to corporations or uday. max kaiser this is the guys to report it out silver let me tell you something about silver there is no alternative scene up there. there is no alternative let's bring in steve zero zero manc they wanted were you so on this close location

where was the some bunker somewhere or what's going on max tell you to do is read the strap and see that i was in connecticut you had a strap. listen well 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 is a tax speculators 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 and this has 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 of your store and uses

a credit card they're creating fear of debt and of zero out of nothing that's why the price of coffee futures is higher if you knew anything about economics you would know that but instead you blaming the speculators because you're dunderhead yes it's the 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 the pyrite money 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 loaned into existence from banks and every time somebody uses their credit card they're increasing the money supply those diluting their purchasing power 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 to supply and demand for credit that's what's driving this market again howard schultz a guy who figured out one day that people in america might 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 prices right well this is part of the global currency war isn't why does china have so much inflation is because of all of the money that's being

sent to them visa v. walmart that's right but also the us has been engaged in two rounds of quantitative easing trillions of dollars printed the un their currency in china and other human be is pegged to the dollar so every time the us prints money every time ben bernanke you 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 saying well obviously this is the tell the wags the dog or vice versa you can't really say china is the currency manipulator if they're pegging to the dollar which is being manipulated but it's the world reserve currency so they say well cappie 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 geitner you're the currency manipulator maxes central banks around the world i would disagree that if anyone unique we're in disagreement on that one because china's empty. that fifteen point three percent in april alone so they're doing a darn good job printing money and response or to slim it down regulators extended

the range in which gasoline and oil futures control. well again they're there appeasing the speculators 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 there remove that piece of the 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 not a free market they 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 right the stock market is in a bubble and it should have margin rates increase to prevent the stock market from reaching and 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 competition to corrupt bankers they are being subjected to the 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 radicalised precious metals buyers around the world well max listen you know the beginning of the whole financial crisis began with a violent currency move and that was the. moving the u.s. dollar which started by the treasury using a euro swap remember in two thousand and seven and thus began to move silver and

gold are also currencies and so violent moves in this we could see that we are we are seeing a knock on effects in 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 reads 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 not because there's a disconnect between the paper market in 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 gas 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 manipulates of psych path ology being practiced by these psycho pathologically insane or partridge yours quantz places like wall street and goldman and j.p. morgan were you by the way during the period you know you just kind of disappear there for a few days you send in their own party and the owners are in every other end you wish you had gone yes you got a gun to look like a banker in one of those fish that kind of come out of touch and talk like a fish fish fish i mean where were you exactly i mean you kind of went off the grid actually somebody in the comments section said i'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 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 a one month alone and then we see this headline shanghai and third silver margin hike in month right and what what's happening stacey however is that the margin it's going to go up two hundred percent which means that you've got people owning the precious metal for one hundred percent cash which is the same as having gold or silver standard so the c.m.e. in trying to dissuade people from precious metals by raising the marginal 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 and i say to you there is no alternative paper is complete nonsense there is no alternative i think this is a second amendment issue because you talk about all those guns behind me in connecticut well 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 expensive the gold bullets and that's always good for a werewolf and stuff and ben bernanke you but i mean gold that's awfully expensive but ok well 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 in greater danger than the euro so this is axel merckx in the financial times and he says imagine a country that spends imprints trillions to patch up any problem now imagine another country where there is no central treasury meaning the bailouts are less easy and which has a central bank that is mocked up liquidity over the past year rather than engage in quantitative easing of course he's comparing. the u.s. and their dollar to the european area and their euro but only let me find something

about the dollar enjoying a bit of the balance recently time exactly to the moment when been logged and spectacle stands 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 do these are you do it's a huge platter of 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 good thing back in the dollar district in the states section terrorist act that's what the goal is all about china is about a dollar more it is one of the more bangladesh's of the older more but it was only more so in fact the dollars if you part of the whole of your poem volunteer is the author of the books over and all there is the alternative bangladesh and a little blip it's not a rally in the dollar max there's

a lot of gold listen 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 with the cheerleaders for the celtic tiger get some banks are reverting to type to come to court assuming that the banker always wins anyway that's not how the law cizik 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 lee my modified currency see 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 predator bankers and you see this all over the world and to escape the debtors prison bankers prison there has to be what robespierre said many years ago if the social contract is broken the people most 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 mancs oh right you don't know where there's more coming your way. ok john berman here broadcasting live from washington d.c. coming up today on the big picture.

i will go back to the kaiser report i'm max keiser time now to go to new york speak with a red. glow. and welcome back to the kaiser report it's good to be back. here on the kaiser report he told us zero percent interest rates are starving the banks it was designed to say that the time you were the only analyst in the world mentioned that it would starve the banks and even proven correct so tell us more

about this what's the current status of the current status is. the same as before the banks are not making in the real economic profit off of their interest bearing assets and they're taking a losses on the liabilities. on the assets that have come michael 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 walk away from foreclosures well. we're going to store this morning. that should head cities of the four cities that was suing parents for keeping care and maintenance on foreclosed properties so now you have banks actually have collateral that have learned of value to it it's actually costing them money so the collateral is actually proving to be the antithesis of what the in to support it instead of backing a loan it's creating a deeper hole for the said loan so not only will they probably never get the money

back they have to dump more money and. it's also difficult to see how they get out of there if the cities are the become aggressive and i can see cities municipalities becoming question because hard times are all over everybody needs the money and if the city see the money the program to go after it regimented last 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 like 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 the states are stepping in and they're actually suing these banks as to how how much teeth to these lawsuits do you think reggie i don't know i'm not a lawyer and this for design know we're in. uncharted waters but if the banks saw a legal sinkhole. the banking industry is

a new tobacco industry now all your municipalities and city suing the banks you have the banks m.b.a. and mortgage backed security investors interest suing the banks for you know fraudulent practices misrepresentation you have the market gees suing the banks the people who have been frozen for close upon and that is like a bottomless pit think about the amount of mortgages taken down have been taken out during the boom times just about two percent of those people soon effects. you know it's a limited liability so if you think it's a practical piece of an illegal 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 a three times leverage let's go back to two thousand and eight for a second we know that hank paulson went to congress to negotiated 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 difficult know what the total price tag for god is i could give you a number that's not. you know not an irish medical number and the price to be allowed is the economic future of the country if you bet the insolvent fail. 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 about same place and now rejecting a lot so 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 bailout because we're talking at least twenty twenty five billion dollars of potential liability and 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 out for five billion dollars you've got out to two hundred fifteen billion dollars let me get your comments on something that's in the new. talk about goldman sachs for a moment two stories have come out the s. and p. just downgraded goldman sachs and we've also got a downgrade from a wall street guy dick go bad a who came in and said that based on mattei avi's exposé in rolling stone magazine that the stock's price target was lowered substantially by more than forty dollars and call it science case the stock is down six billion dollars already today making

reference to this matt taibbi article did you read the matt taibbi article you're an analyst 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 last great guy some people might question his analysis but reggie middleton what do you say about his analysis is it accurate to be honest i didn't get to be delayed this. article by terry but i can tell you i've been attempted to alert those who felt because of the six guys. have excrement it does not smell the goldman sachs has been overvalued for quite some time i'm starting in two thousand and two the spring of two thousand and eight i made it very clear that the amount of mr goldman sachs takes in when his business in the risk of the assets are not covered by the profits of doing business from an economic perspective you know

they're covered from an accounting perspective and they make a push of accounting earnings in the price goes up but they take significant risk over the last two thousand and eleven over the last few four years of their riches come the pipe and they're basically. i'm going to watch my time 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 in insider trading quarter statistically having a quarter without one day of trading losses as was the case with gone in 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 a broken toe nail. 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 one trading loss. three quarters you know it's a win 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 and 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 on commodities but they don't raise margin requirements on training on equity futures and this is based on all the economic indicators you've just discussed being of horrible shape stock markets trading near all time highs is that it's our disconnect there of course is a disconnect i believe that there could be market has been significant overbet you know those who follow my blog know that the crash of two thousand and eight in the first quarter of two thousand and nine has never finished the government is

attempting to reply i mean feed the bubble which they succeeded in nominal terms in the us equity markets the problem is bubbles and i cannot make progress you know you blow a bubble pops when it pops usually values you go below the trend line and that's. not the way to do it and that's the way that policies has been conducted in this country i disagree with it you'll see from rome for a correction if i am correct then you're going to see a pretty prices drop significantly and if i'm wrong then they're going to keep going up despite the fact earnings are revenues the margins are going down to the direction and the spike in fact the implications are going up despite the fact employment is going down. that doesn't sound like investing that sounds more like you know chase bernanke and do a finance he does that's not in the investment and that's not a. market that's true price discovery and i said free plan mark intensive three parameters to the fair all right last question pertaining to the dollar folks say

that the dollar is stronger than the airily look at the periphery countries in europe and suggest that the euro is inherently 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 they'd be able to triumph rate of. super economic superpowers the e.u. the us and we have china and very each each of each one of them have fairly unique problems but the related and the correlation between the problems are basically the problem and how they handled it the e.u. is in a highly indebted steph ation 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 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 the euro and culture it's spike the u.s. has too much debt and basically running a ponzi scheme with treasuries there's no way in the world the treasury 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 they simply ran a bubble they opened their bank spigots they told everybody to lend 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 trade it's going to be an inflationary crash one way or the other but i think the three powers are basically waiting for the other to get a lot closer grass gets to where. capper flies in a direction that's the best that i can surmise you know it might not be the case but i see the case of the u.s.

is on is beyond sustainable i see the case of the e.u. as guaranteed destruction serial destruction several countries and china is rampant inflation there's absolutely no way tonight so if china and the u.k. you go before the u.s. the u.s. benefits if the u.s. and china grow even benefits etc i figure 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 they each. of the three entities are taking don't seem to be fundamentally sustainable and justifiable politically just enough for them it's me just. like what some call the currency war and the world war three being the currency pets is exactly what's going on thanks again for being the kaiser report ok very welcome back again that's going to do it for this edition of the kaiser

report with me max kaiser. thank my guests reggie middleton of. you want to send me an e-mail please do at kaiser report that or. are you guys are saying. that here broadcasting live from washington d.c. coming up today on the big picture.