afridi argy john tom. welcome back you're with our new here's a look at the top stories slowing fuel prices maybe as parts anger against nato military action tankers are regularly targeted in the lines as ongoing airstrikes to neutralize curled up his forces. israel faces an energy shortage as egypt threatens to rethink the gas supply investigators are looking into allegations that the deal signed by mubarak's regime fails to meet national interests. japan says six more workers evolution when you clear plants have been exposed to radiation

bringing the official total to eight in wa scientists warn that levels of contamination in the area are higher than those following the turn up with the task . and sticking with the fukushima disaster on the kaiser report next max and stacey compare the meltdown in the power station to what's happening to world markets. we'll give. you the latest in science technology from the realms where. we go into the future are covered. her eyes are this is the kaiser report the eco eco disaster the ecological disaster the economic disaster it's all tied together here at the end of time as we know it

stays here over max yes everybody keeps on being baffled and surprised remember we did an episode dedicated to wall street was baffled by all the economic data coming out showing things are worse than what they say it is and everybody has said it's been a financial and economic meltdown well i have a new phrase for you it's melt through and i think this is what we have actually been experiencing is economic melt through but i think i just pick up on this for a second because remember after the initial crash of two thousand and seven two thousand and eight you have the stimulus and you also have the bailouts and then you had a bounce which was called a recovery but now even according to time magazine there was no recovery there was the beginning of what you're saying now a melt through you well were you melting through to your melting through to a place called depression that's correct well first let me set up what the analogy

refers to fukushima nuclear plant may have suffered melt through japan admits so the molten nuclear fuel in three reactors one two and three at the fukushima daiichi power plant is likely to have burned through pressure vessels not just the core according to a report japan just gave to the international atomic energy agency. so it is the first time japanese authorities have admitted the possibility that the fuel suffered through a more serious an ario then core melt down now let's go to the economic melt through we're seeing in the rest of the world we need an evil plan to for oil our own leaders one second on the financial meltdown for us i can be much of the tepco tokyo electric power company that bought off the regulators this is what happens when you let private companies do something that the government should be doing and end up with this huge catastrophe and well through and of course they're

totally silent about it and so as the media so too in the financial spear you had a complete meltdown in two thousand and eight when hank paulson went to congress to get two hundred seven hundred fifty billion dollars but because the regulators on wall street are owned by wall street similarly you had an economic meltdown which is happening in real time well this is what this article here is talking about from market watch this is paul the feral and he's talking about that we need to defend ourselves from the coming american winter and it goes with the nuclear fallout situation this is a financial nuclear winter and he talks about the top one percent had nine percent of the wealth in one thousand seventy eight now they have twenty three point five percent he says the elite are violating the sacred compact between that higher authority of the leader and his people they possess the right to rule as a group dark aside and khadafi and a revolution is ignited book because of the elite contract there's another word for

it going back a couple hundred years it's called the social contract as iterated by thinkers of the enlightenment and of course famously rousseau talked about the social contract and when the social contract is broken it's imperative that the people revolt and seek a regime change i mean talking about this melt through concept you know i think about people like lloyd blankfein c.e.o. goldman sachs easily. that he's like that monster from alien you know it's starts to drip through the spacecraft like lloyd blankfein is like. through this time. and he's just destroying things because of the toxicity of the derivatives that goldman spews out of their toxic organs into this patient earth. and it's of disgusting display of toxic financial melt through and they don't do jack about it so the melt through in the nuclear industry happens when the

container vessel is breached in the financial and economic system we see a financial melt through all of the regulations and the regulators so for example glass steagall was the container vessel for attentional financial melt down because that has been breached we see it melt through and call the feral says that you need to have a plan he says an evil plan and evil plan to him is something that the elite won't even think of it so it's so masterful availe they'll consider it evil and you need a plan now for self defense for counter attacks for survival things are bad out there and they are going to get worst trust no one believe nothing you hear nothing right well on the containment front you've got less to go of course put in place after a crash of twenty nine when the creation of the f.c.c. and a federal deposit insurance corporation f.d.i.c the groundwork that was laid for the

boom that is the american century created by franklin delano roosevelt as a reaction to the banks or in the one nine hundred twenty s. position limits on commodity futures another containment margin limits on commodity futures another containment and all of these things and commodity futures modernization act being screwed introduced in year two thousand scrapping much of the containment these are the elements that open. up the floodgates of toxic derivative trading and the alien like exposure to the global economy from the monsters of derivatives like the blank lines of the jamie diamonds so we're going to look at one little other headline that this is also a poppy feral research firm to and this is from newsweek mad as hell they're angry that fuel the arab spring is now boiling over in europe could club wielding protesters be in america's future too the answer of course is in the picture you see in this newsweek article and that is people with images of jamie dimon the head

of the c.e.o. of j.p. morgan chase the biggest bank in america one of the biggest banks and as you see they have sacks of money there that they're saying that he stole from the american taxpayer well that's right the arab spring as they call it sweeping europe will come to america i think when it comes to america it'll take the form of mass state what they cost or t.j. default on all the under row water mortgages that were fraudulent lee sold to americans and they still find themselves in the real estate market like in miami for example and other locations of it new lows that even despite all of the pumping up by the by the fed in the stimulus by obama the real estate market is still crashing and these people are underwater and as a revolt the civil unrest that we'll see in the u.s. will not take the form necessarily of people on the street i think americans are a bit savvier than this i think what they'll do is they'll stage a multi million single day mass walk away from your mortgage this will be america's

cairo moment when somebody organized on facebook a ten million strong simultaneously simultaneous mortgage default but in the meantime we still have this coming financial melt through happening max and how it happened in tepco situation in fukushima was because the regulators and the people they were regulating were actually. one in the same so let's look at this next headline which is actually a video and this is jamie gaiman hijacking ben bernanke use press conference to demand an end to regulations he says we don't need them anymore because we've passed with flying colors the two stress test done upon the banks right one by the treasury alone by the fed but then he also says this made a list of all the things have already been done and a few things are going to be done so we're already doing most a bit actors are gone they were through all the mortgage brokers and obviously some banks unequivocally jamie diamond his lines there as to if he is the number one bad

actor they've got a ninety trillion dollars balance you know there j.p. morgan that they use to confiscate wealth from americans and people around the world ben bernanke if he had a spine if he had a pair he would have been jamie diamond at that conference and told him look we're the boss you're not the boss and then you also would have admitted that ben bernanke is beholden to the european central banks and that's really what's going on the reason you've got so much turmoil in the u.s. is that as obama himself said this past week the u.s. will be applying funds to help a bailout greece ok how does that happen through the global banking system which ben bernanke answers to which jamie dimon is a mere middling management one well but the important word here is actors and both of them are actors they are pretending to be american population that the fed is a regulator in somehow protecting them from the bankers the fed is

a banker they are the private bankers they are jamie diamond jamie diamond is ben bernanke you there is no difference between them so he is lying there and you know what wall street took this performance as bravo they gave it an oscar the next headline wall street loved jamie diamond speech yesterday the response is go jamie yes this is from business insider and one. the writer here says just yesterday we got a text for a friend at a big bank who wrote the obama administration continues to beat up on the banks not a great way to get more lending to help with job growth all of the new capital requirements and regulatory uncertainty has everyone grasping onto their cash cash equivalents such a short dated treasuries capital requirements of course being code for cocaine requirements as we reported on the show many times and you also have a situation where it's basically abbott and costello between jamie diamond and ben bernanke remember the famous who's on first routine between abbott and costello

where it's like oh i know he's playing this game it's and he says who's on first and he says i don't know who's on first because know what's on second i don't know who's up i've totally mangled that region you can look it up on you tube but it's basically two comedians doing a puppet show for a very compliant corrupted in the bag mainstream media who reports on this stuff as if it's somehow meaningful but the response to the performance by wall street was bravo because they know that they are part of this want to be elite that is going to defraud the population but let's look at this next headline a response to jamie diamond performance in directly jim rogers long silver short g.p.m. so jim rogers was interviewed on c.m.c. and he says this approaching crisis that we worse than two thousand and eight because there's been more debt more debt i remember jamie dimon to ben bernanke he was saying we can't raise capital requirements because we need to introduce more debt even more debt we have we are plenty fine now we're so stable but jim rogers is saying he's he sees something coming

a worse than two thousand and eight and he's buying silver he's buying silver he's buying silver he says five times and rice to protect himself and when he's here asked in c. and b. c. how to fix it what should they do if you cut spending with a draconian matter who should cut taxes and they should cut spending to the bone we cut troops in the hundred fifty countries around the world are not doing this in the good at making any. that's costing us a fortune there are many many other things that we're wasting money on and that should be stopped but still google long jim silver laying it all out he also says in that interview states are worth any short one big american financial numbered zero heads are speculating that it's probably j.p. morgan i would concur the easiest way to make money for your hedge fund traders out there is to short j.p. morgan go along so you're going to make a bundle of cash and soon as j.p. morgan stock price just below silver prize their balance sheet is it will whole world one in trouble so finally he says you know that the part of the problem with

our u.s. economy and the global economy is too much war here's j.p. morgan executive tony blair tony blair says west needs wider plans for middle east former p.m.'s call for clearest approach comes with warning to dictators that they must change or be changed so he wants more wars in the middle east j.p. morgan executive tony blair. prince bandar's tony blair there are like to threaten you with a terrorist attack closer to me more money there tony buddy. how do you know what prince bandar because i'm a clipper crap. my best british accent alright stays there or thanks so much for being on the kaiser report. don't go away much more coming your way so stay right there.

but i'm back to the kaiser report sign out to go to washington state and speak with david moore again silver and vaster dot com david mark and welcome back to the kaiserin for a true if you max right david morgan this is exciting stuff you've just returned from utah where you took part in and historic event tell us what you were doing there what's going on a new top of the house bill three seventy one was passed into law signed by the governor of utah i was invited to participate in the ceremonial signing this is the

first state in the several states in the u.s. to put back in the law all interior basis to neutralise actions gold or silver right so walk us through this little bit here david margan in other words i've got a pocket full of soul or a bully and i can walk into the store and i can buy a pair of shoes and give them some a billion has a work first of all the merchant it's still a new shoes or whatever you want to purchase is gross say yes right you except because he voluntarily does or does not so it's going to be voluntary on both sides to was very stripped of what silver and gold it would accept and for right now bill which passed in the law you can only use silver eagles recalled vehicles so only cordage bets minted by the federal government is accepted by this law at current time so sort of the important so it could take place is there is a depository. that is already set up that people can deposit their gold and silver

eagles into and be issued a debit card now makes the whole transact. process pretty transparent where you're able to walk into that merchant and you know use it debit cards similar to the debit card and buy whatever you're going to buy and it just takes the amount of protein maddest the record out of your account so once this is implemented it should be soon from what i've been told at this meeting i think it could really you know picture now david morgan on the political front here it sounds as if you've got a bit of a standoff developing between the states and the federal government because the federal government you know and the federal reserve bank are really not for this type of conversion out of five parsi and two precious metal based currency is is part of the stand off are saying between the states and the federal government because it also applies to other political issues as well well said actually said you i think you see as utah has the ability to stand up for states' rights as

outlined in the bill of rights there are certain powers that worse given to the federal government of very very limited basis and the states actually have all the power beyond those limited abilities of the total government of course the total government has usurped all kinds of power really outside the curve you cross into should you trust so say wait a minute states rights no state sulky issue anything but gold and silver for paying its debt that's the law we're implementing it prudent the law you would have it's one thing i like to address max the probably gets you anyway but. gresham's law you know the idea that we're why would i spend it all corn it's appreciating in value we're says the theocracy in it's be preachy in value because of that back you know how much traction will we get in this you know this movement in our culture to our yeah well that's a good question that came out raised on the blogs and people are suggesting that

well this is a way for the state to hat get people to go. out of their precious metal positions they had to liquidate those precious metal possessions and it's a way for the kind of the intention being the opposite of what we're suggesting here that there are some benefits and part of a trend to move away from fat currency but i would imagine that the answer to this would be that you need to start the circulation of precious metals trend somewhere and what it is a certain critical mass and then it takes on a life of its own and people than the benefits of having a non of having a currency that's not being the purchasing power is not being whittled away from inflation over overcomes that the perceived shortcomings of the fact that you're swapping out of fiat's for precious in a very short term you know you lose both sides warley is pretty much it's going to be tradition so there's somebody out there perhaps that walks over to it soon or do

you get momentarily or so you know i want to spend it and you does it an example the other examples of christians walks into street and that would be where she receives christ quoted out of his early articles he said it's just the idea that you can now skirts be in gold and silver maybe you will start saving now that's a little pollution brings the a weird ass of sound money to the poor for a lot of people who haven't thought of it before plus you've got to look at we market a lot of routes will go discount if you pay in so we're all whereas if you are you know it's a different price so i mean there's lots of ways you can see it actually going to put a hold of the long route from here right that's a good point in other words that the merchant is very interested in any getting there a hold of this appreciating asset the suppression and currency so they might be willing to offer a discount which again further incentive and in the play make in terms of savings is

a very key point savings is something that is the inverse of what most people in america have come to understand to be their daily. management of their finances which has been dominated by consumption and debt so here you have a and the op the opposite of this which would be savings and watching our savings appreciate and value so let's say that in the state of utah and in a few states around the country and maybe one or two countries around the world they say we're going to go to a cell for a standard for commerce what does this do to the above ground value of the above ground stock of silver of waste a penny on who you talk to as let's say between eight hundred million and a billion ounces does it increase the demand and if so how does it affect the prob what happens there on the on the dynamics of supply and demand it will put great price pressure on similar i believe you know it's already there if you well know it would put much much more on it because it is and you look at you know what

average wage for the average person wants back in the late teaching hundreds were created dollar a day and constitutional dollars and you couldn't pass today's u.s. super eagles one ounce i know that your constitutional dollars backcourt so six amounts are roughly three quarters of an ounce the point is simply dollars per day was a pretty good wage at one time so it's a decent beyond world out right now one hundred dollars per ounce and we're not there yet and i believe we're going to get their house that once the real value is determined and we have it in my strong opinion from a true value of silver yet you see lots and lots more pressure that's right this question was kind of important think about because you know people once you feel that they get their value for announcing turnout's or whatever term you use in the marketplace there you probably see a lot more transactions take wrote some great piece metals or they believe strongly

goats undervalued currency is quick to say we're powerless talk about precedence law for a second because it's something. bill black former regulator during the s. and l. crisis in the us speaks about often as well as being one of those. if you will behave you're all economic aspect that drives markets and finance underneath underneath the surface a lot of it tells you know explain gresham's law out applies here what's what is the law question flogs carmel instead dad where we grow so. we stewed the gross out beautifully exchange rate by law but regardless what it really means is that if you've got gold silver. people make sure it's the tourists usually is the last in the three yards. sorry and hold on to gold silver so there's good arguments being made. you know you were snapped in utah but there will be

a lot of incentive for people to. privatise sounds almost as if you can apply the same concept that is in a fractional reserve banking system the philosophy of money concept which is a say that loans become more plentiful they more that they are recycled through the banking system you could say apply this to silver and say there's a velocity of silver concept here is that the more it's use the greater demand there is for the seller and therefore the price goes higher so actually by spreading your silver you're increasing the price of the savings that you have left in your silver savings account but let's move on to our supply demand here for a second the c.p.m. group what's the most bullish data in the report that's just come out and the most bearish i know you track this stuff pretty clear closely over there at the morgan report one of the more watched aspects in china the amount of demand from china underscores to fall there isn't just a new man in china but particularly. industrial demand it's rude to respond to the

rule you left with the institute's. two thousand issue and the amount of story you. on a per capita basis in china was once said to be at the amount of silver used in the western hemisphere so in united states and canada for example now it's a dollar one twenty it's has been a better for holding increase in the amount of silver abused so flows laptops anything electrical in china as they build and modernize their whole infrastructure that trend continues and it continues stronger so right now it's about one twentieth the amount of silver per capita that they were using you know so years ago and then again the trend continues so if you look at what's going on in the solar energy fuel a lot of solar energy produced in china in destin bestial side in china is huge on top of that you have gold and silver availability for investment in china as well

right doesn't take much imagination to think about one quarter or a billion people in china so why not every one of them as well device over unless they catch on to be mass cars or you know how nz situation is. seriously there's a lot of pent up demand available in china and of course other places as well i see that would be one of the most bullish things under very side what's interesting. is that the recycling as storage increase and as i thought about it more and more it's it's very likely because there are more electronics some of them can be recycled some of them are on economic to recycle but they're mandated right governments to be recycled for example in california some of the circuit boards that are not economic can be cycled still in the last states that it must be so you've got a loss economically government to step in so it was so were mostly recycled so the

idea is that car free flowing to you know very low level so we're allowed to talk to you and you can play. by digital recycling would be a major battle trip and has been for a few years but now a story to come back to a slightly bearish that's a little spiritual. all right well that's all the time we have for on this. david margan of the market report thanks as always for your contributions on the so over side of things and i would just say the other trend in the bill is trying to still intact is that your basic bottom line absolutely merits you see my lecturer and also i'm for handsome extremely bullish and see much in your projections prices so right it goes up and down but we're far far far away from the silver market and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert our guest david morgan of the mortgage report if you were to send me

an e-mail place to sell at kaiser report at r t t v are you it's all exxon as backscatter say. for the full story we've got. the biggest issues get a human voice face to face with the news makers. i'm.