once again flared up. these are the images the world has been seeing from the streets of canada. showing corporations through today. welcome to join us you are with our team live from moscow here's a look at the top stories today out in dozens injured in a bloody hands to georgia's day of rage as police fired tear gas and rubber bullets at those calling for president saakashvili his resignation the world's wealthiest nations march on a wartime battleground to thresh out today's conflicts as a g. eight summit gets ready to kick off in france. to us judges are convicted of dishing out dodgy discipline making millions by throwing teenagers

into private prisons for only very minor offenses. those were the top stories here on our next are these financial guru max kaiser looks at american motorists road rage old gas prices and why the chinese are seeing a new glow in gold. i am nice guys or this is their tries are reports the global insert action against the banker occupation is growing in loss of. speed. and youthful. you know in america. things are love so people

like yet why because the price of gas has a critical price level you haven't thought from about for a couple years once it goes to a certain critical price all right close to zero and then they'll join with the other countries in the global insurrection again thanks to your patient let's talk with stacy her stacy backs of the beginning of the year we did say one of the primary weapons the banks freeze use against us is inflation and we do see that in our headlines today max american anger at gas prices fueled by rising household energy costs so americans are now spending twelve percent of their disposable income on energy costs up from seven point seven percent in two thousand and two a new study by clear group energy partners says there were two thousand and two of

course as before the invasion of iraq when we went in there to secure a cheap oil reason well better work out did it that's right not only did they lie blood for oil but they screwed up they went in there if blood for oil and then they screwed it up well exactly because then also the population of america he supported the invasion of course they screwed up by not looking at history and one thing you find in history is that all wars cause inflation so you might be able to secure the oil reserves by the inflationary cost of military adventure is is going to drive the price of that up anyway oh i remember i remember now going back to the two thousand and one two thousand and two gerd remember those guy chalabi. he said his pitch to the present gun in the american white house administration was a. brilliant bellows the cost of billion dollars you go in there you take over iraq

and then you could feel old that in the first year with the oil revenues i got a deal for you right now it's worth three trillion dollars and they don't even get the oil so this guy chalabi he's right up there with some charles ponzi you look at a picture of charles policy you should put a picture of chalabi and also remember you interviewed gregory mcdonnell the energy analyst recently and one of the things you brought up is that at the tipping point will come when a certain wrong certain class of americans start spending more and more up to thirty forty fifty percent of their income on energy costs and we're starting to see that in the numbers this study shows that in mississippi residents are paying up to five seventeen percent of their just posable household incomes for energy that includes household heating and costs and gasoline but gasoline makes up the most percentage of it that's right that's what makes the third world the third

world you put fifty sixty seventy percent of your income on buying you know getting acquiring food energy cooking oil and of course the first world or the first world because those people want to spend more than ten or fifteen percent of their income on stuff to keep him alive but now it's changing and the people who are in the first world are really now in the second world i think the first world's occupied by the devils five thousand crowd they're the new first world in that they never come down from the mountain top retreats then the u.s. is now in the second world and the third world first of all the third world so we're not just seeing the inflationary war against americans we're also seeing it in the primary area where we go to find those oil reserves mideast staggered by cost of wheat so weak prices jumped a week ago by seventeen percent. wet weather in the us and dryness in western europe are driving the recent rise futures jumped seven percent on one day and last week the biggest single day dollar gain

a more than seven months and are now up for ninety one percent on the year so this is important because that region which we now see the uprising is happening and it was many said caused by inflation and in particular in wheat prices so tunisians for example eat more we than anyone else on the planet they eat on average four hundred seventy eight pounds per person a year compared to americans which hundred seventy seven pounds and cyclist who's won it down there and i love it too good couscous cool of a coup screws and beat it but here's the thing about it you see these oil rich nations around the world like on the bed with american central planners back and i think seventy one degrees the petrol dollar standard when the us went off the gold standard paper the vietnam war it's everything was rosy for a while i mean they had oppressive regimes and dictators but you know the price of gas and food was commensurate with their status as third world losers but now due

to the ricochet effect of the monetization of everything that we used to be called debt and now we've got a surfeit of cash creating huge inflation folks are getting screwed in the middle east too so it didn't work did it the whole experiment with the petro dollars it was a big crashing failure and now you're living with the not the people of course they are having the problem of the inflation but for the rulers you see their problem is that the people are looking to change the rulers they're looking for regime change so the rulers thought they were so smart in getting in bed with american foreign policies and monetary policies but now the rulers are being taken out one by one they're being taken. in the middle east north africa spain ireland. you know greece regime change is the only answer because you're not going to teach these guards a new turkey they're not going to suddenly become ethical the regime leaders in

these countries they're all chinooks if these prices are any indication we could end up more like france and the middle east we could see rings of terror because other people to grow enough we home countries like egypt and tunisia buy half or more of what they need from other countries and pass it along at deep discounts to their impoverished populations as an economist at the world bank said this system is not very sustainable because at these prices buying foreign wheat we consume about six to seven percent of egypt's revenues and then the article in wall street journal. by comparison the u.s. spent a similar proportion of its revenues on the wars in afghanistan and iraq last year so again it goes back to this insanity of the guys who run all of the financial system whether in tunisia or america or britain america can afford to we in the

donor anymore and it's become the hole in the donor i'm sure and damaged. because you know hillbilly. you know you keep your trousers are there buddy i don't want to know what he does that they're not. ok so these two stories then collide and my next headline max libya britain's one billion pound war libya conflict lo and behold could cost u.k. taxpayers one billion pounds over six months as cut off he cleans on and the cost of involvement so or this is doesn't make any. cling on the part of the people above this part of the people doesn't make any sense well as the article notes demonstrations in support of are still common and dissident groups are unwilling to engage his loyalist army so it appears that own like chinese and and egypt where they were able to overthrow their decades long dictators in those

countries in a matter of weeks. it appears that there's a little bit more support for qaddafi in libya but i want to note as well that this just seems like a pure racket because this the u.k. is more such a testing ground for this the chalabi nothing of selling the public on some private service whether it's running the immigration and border checks or all these n.h.s. fandango that keep on happening the boondoggles with computerized systems. of. these invasions throughout the middle east are very much. contractors private contractors these mercenary contractors they make a lot of money on these and they sell these and they pitch these to the government to get involved it will only cost one hundred million pounds is what britain thought it would cost it's now up to a billion and who knows what will finally end but again it's causing more inflation

for the average present in america or britain or tunisia or egypt peace there's no money of peace there's no money in peace you can make money in the peace business you can make money peacefully overturning a regime there's a lot of that this is a catholic church figure this out that's why they don't follow jesus jesus was about peace they said there's no money in these we're going to start the crusades and get this nice name of this this boondoggle that the private contractors and sold to british taxpayers operation unified protector and so it was an operation unified protector so that your brand of condemnation well that's what it sounds like yes it does but it's also what the british people need as a prophylactic against excessive military spending that's of the british people the american people who have prophylactic against excessive military spending the need to take the entire pentagon and slip it into a giant condom prophylactically insulate the american people from being impregnated

by this ridiculously over by. a lot of planning which is causing inflation and causing the price of oil go up down you get it down it's going up not down just stand. it up for us. well max yeah speaking of prophylactics china is now top gold bug there is no better unified protector of course then gold and china's investment demand for gold more than doubled in this first quarter of two thousand and eleven compared to two thousand and ten to ninety point nine metric tons they now outpace india which is historically the biggest investor in gold in the world and i'm golden euro's make new highs currencies all over the world other been telling you it's not just the chinese and the russians it's the western ers to us it's easy oh

max global gold investment demand increased by fifty two percent to three hundred sixty six point four tons in the first quarter helping offset a fifty six ton outflow from exchange traded funds which are popular investment tools in the west so we talk about this all the time when you're protecting yourself from inflation and that insane of bankers that run the entire world every single nation on earth and every single banking system on earth why go to a paper investment which they also control you know you cash in on your e.t.f. and buy physical gold well that's what it looks like is now happening there was an outflow from the paper and an inflow into solid gold gold real. and yet despite this the mainstream media the b.b.c. the telegraph you've seen articles saying the gold bubble has popped because people like george soros are selling their paper gold but the fear of money prophylactic has popped causing all kinds of debt impregnation while gold stands rock hard

baby all right stay sober thanks so much for being on the kaiser report thank you max don't go away much more coming away so stay right there. with prices. moving from funds to christians. who throw stones on t.v. don't.

welcome back to the gaza reports time now to go to london and speak with many other leyland asset management ned old boy welcome back to the kaiser report good afternoon max let's talk about silver first second here you wrote a very interesting piece about silver price. in its action in the seventy's were made a thousand percent move and why this is in fact indicative that we are nowhere near a bubble please start talking about this i just thought that it was something worthwhile to put out there for the for the for the nervous investor which is that you know we really needed to clear to washington to move metal from from weak to strong hands in order to go significantly higher than we already were and there were lots of things that were going on in the background there's no question but the efforts that you've made to drag all sorts of new people into the market as

well but i think what i was trying to express was that last time around this happened the same exact same thing happened yet a twenty late twenty percent. move over a period of about two to three months which is quite normal any kind of market that goes into a seriously parabolic spike we're almost always have that moment where some of the weaker hands get shaken out and that's actually all to the good now let's talk about what your thoughts are on the commodity mercantile exchange the raising margin requirements four times a week on solve or is it the normal operations to do so is it a sound policy or is it necessary is is it an attack on so variety weigh in on this it sounds like fingernails on the blackboard to me. would be the way that i would describe it you know it's just desperation really i think it's just a sign of where we are in the in the guys here it's easy for me i have been investing the whole way through the cycle so these kinds of drops don't buy long as

much but yeah that kind of behavior that kind of incredible hiking certainly would suggest that something is substantially amiss in the background all right now that i'm looking at all these protests around the world in madrid in italy in. ireland in greece all over europe all over the mideast all over north africa we're talking about now. tens of millions of people and it's growing quite submit display i would imagine this number will be in the hundreds of millions not in the not too distant future based on your understanding of the size of the silver market and if my if in fact one hundred million or two hundred million or three hundred million people who are dissatisfied with the banking occupation that's destroying their lives and creating hyperinflation if each one of these folks bought an ounce of silver. what would what would that do another on a grassroots level putting aside the headphones for

a second putting aside all the financial engineering putting aside all of the algorithmic trading at all the fancy high top line garbage that's destroying the integrity these markets on a grassroots level you get one hundred million folks buying amounts of silver or more what happens to the price of silver i love this question and i'm very peace be able to offer my view on it i know it's not going to one hundred million which is clearly that is a big number one hundred million by now and. i think you could safely say that it's going to be a very very very significant effect on the i think actually the biggest effect of all max is the one just to be really awesome and thought back into what i was saying earlier just think it's like a mushroom being. a movement whereby it's more the psychological effect on other people of you but necessarily rather than the immediate price of it clearly a hundred million one one day taking it out c h is going to have a substantial effect on the price but i think it's more a psychological point than

a than an immediate pricing one because it you know there is no doubt that there is still. a lot more thousand dollar silver circulating in the world the narrower coinage so that you know you could make the argument that well there's an issue here with with blanks with making rounds coins and i think there's some there's some truth in that but it's naseby net you know by this incredible growth that we're also going to be warm in and i'm not it's not genetic off it's it's removed completely from the table as a problem so i think one hundred million people find out so throughout his or ten. well. we would be in a whole different place very quickly i asked the same question of eric sprott on the show with the example of a million ounces and his response was well you know i'm an i'm an institutional primarily institutional. money manager and you know we don't you know we don't really think in a million ounces it you know it wasn't it wasn't going to register as

a seismic event based on the numbers that he is used to so i am taking another bite at the apple here and look at what i'm trying to get from my experts like eric sprott or yourselves what is the sweet spot in this curve if you know a million of corn eric sprott is not the number one hundred million according to what i just heard you say is yes you have a very very very big event you know in the market at some point so what you know is that we know what the aboveground supply of silver is you know the demand is you know the mining output is we know what the training volume is we know all these things so what is the sweet spot what is the number that it would take to drive one dollar up in the price of silver is it a million is it two million is two point five billion that number can be extrapolated from the information that we have what is that number i'm not sure it can be extrapolated in there to be because there's too much data we don't have the

right so i'm not sure i agree with that actually but what i would say is maybe that's the point is the thousand pounds bars actually i think perhaps you know although yes without question the core and most important point is people of the groceries level taking some small denomination coins out of circulation i think actually the shorts are somewhat relying on this one thousand us dollars in the warehouses and i don't just mean by the way i mean you know in metals warehouses i think if if hedge funds and investors realise the difference more clearly between physical and paper silver they would be much more willing to pay the insurance and stores charges for a thousand us dollars and i think of a lot of those caught locked away i again i don't think a number on it but i think that would have a very very quick. effect on the market it would cause all sorts of. things that happen like for instance the bully indeed is still getting charged a whole load more for storing silver moving still because of the much more activity

in the warehouse talking about the one thousand pounds pars and the warehouse we know that the comix warehouse stocks of thousands bars is plummeting now what i'm seeing there and how much and how much of a problem is out of what point does comics announce that due to a drop in inventory they're going to have to do make some other provisions while it looks like they were very close to that to me is to me is what i look like max and that's what i we got to do so you know the comix is a very small part of the overall gold and silver market it takes and in order not of interest because of the visibility of it perversely it is actually the visibility of claymation allows us to grab on to its being you know critically important but i think it's is just as important you know your your private billion storage business is live in switzerland you know this is where it was hedge funds except that's where they store metal and i actually think that is probably

the really really key point but yeah a reference kermit's no question it's getting tighter and tighter and. more and more people are watching what's going on there but with the benefit of the back three to the c.m.e. it you know it may not be about to happen you know in the next month ok so just to just give you the numbers here according to zero heads comics is now down to thirty two million ounces down from eighty seven million in two thousand and nine so there's a large drawdown but i want to i want to just wrap it up here and focus in a little bit on this where you talked about the thousand ounces bar market and it sounds to me as though you're describing really two markets a thousand ounce bar industrial to chanel market versus the one ounce retail coin market let's call it and that according to you these are on two pair. lines that don't necessarily intersect but it seems that at some point if enough of the one

ounce half ounce town founds silver bullion coins are taken off the market in the and we already have bottlenecks and shortages in coin dealers around the world at some point again this grassroots effort has got to bleed over into this institutional thousand ounce market because unlike paper money there is a limited supply of silver and we know that it's extraordinarily limited supply of saumur i mean we're talking about a billion ounces available half of that start up an e.t.s. now some of said well if the price goes i doubt you'll see so we're flying out of the kitchen cupboard and that's going to bring in another huge oil supply will be materializing as we saw in the in the seventy's in the early days in eighty's as well but even taking into consideration that number you talking about a total market that's less than a certainly a less than one hundred billion in total ever in and that includes every silver

button that's been attached to every sequin every gallon every bob mackie gallon ever paraded at radio city music hall it's still quite a bit less in size than the seven hundred trillion dollar derivatives market which is own winding at this moment and people involved that market are looking for sound money so even give it a look in person go ahead i think just again to sort of try and not with a thousand dollar coins just thinking about it's creepy. rather than ordering metal from. i'm not going to mention that of the mining company because i shouldn't do that but from one of ninety comes the kind of what is filled with. that feature production i'm not sure i actually would not think about it whether it would make quite a significant difference if one wanted to do some kind of mentoring programs i mean a certain number of coins if wrong was in the market to do that that's. removing

thousand us dollars from the warehouse. which could be done i mean it would require a little bit of work in the background but i don't think it's any reason why that couldn't be possible that in a way would kill two birds with one stone if you're putting more metal out there and run out for when you also removing the big balls from the from the warehouse and maybe there's something you can be done. ok now this is what i like about you got the out of the box thinking now we're up on me again because i want the listeners of the viewers to understand what you're saying here run run not biased again where you said that and i like what you're saying is that two parallel lines between between the market and closing them is an issue but maybe that's the point maybe we need to try and make them converge by by you know supporting these private minting initiatives the likes of which you've been involved with and actually rather than securing the rule silver from a mine making sure that the only time one coin in. any time moments coins is by

taking delivery of the thousand hours balls from the way i was it will put pressure on them while also getting that people sometimes i think that could. i could so quite quite quite interesting purpose i think we need to look into that in a few weeks as you might be something that's worth investigating all right that i think that's a very interesting and. up until now no one's really made that connection so now once again proven why everybody in london is talking about data leyland and the fact that he is a stark raving genius over there should be out asset management and they're also talking about some of the ties that you wear because i like the fact that even though underneath that sure there's a stark raving genius he still managed to wear the conservative ties and notice anything that. thank you for the compliment anyway all right well that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert

are a thing my guest ned naylor leeland of asset management and if you want to send me an e-mail please do so at kaiser report r t t v are you until next time this is nice guys are saying bye.