see. you with r.c. live from moscow a recap now of our top stories as nato fights to strip colonel gadhafi of vital oil libya is on the brink of its worst ever fuel crisis people on the ground complain the battle against the libyan leader is harming innocent civilians there must be israel's a flow of cheap gas is drying up with egypt pushing for a rethink on a key energy deal sealed under the previous regime a shake up which prompted by allegations the agreement only benefits the jewish

state and a new barracks for. excessive amounts of highly toxic strong links with cancer and leukemia have been detected in waters around japan's of for whom she met nuclear plant scientists also warn that levels of contamination are even the higher than those recorded following the china mobile. and are sticking with the fukushima disaster on the kaiser report coming your way right now max and stacey compare the meltdown of the power station to what's happening to the world markets this is art .

i am extra eyes are this as a cause a report the eco eco disaster the ecological disaster the economic disaster it's all sides together here at the end of time as we know it's tastier max yes everybody keeps on being baffled and surprised when 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'm 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'll just pick up on this for a second because remember after the initial crash of two thousand and seven two thousand and eight we have the stimulus and you also had 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 will worry 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 than 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 for oil our own leaders. on the financial melt of course i can you know much of the tepco tokyo

electric power company they 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 melt through and of course they're totally silent about it and so as the media so too in the financial severe you have a complete meltdown in two thousand and eight when i also went to congress to get two hundred fifty billion dollars but because the regulators and wall street are owned by wall street similarly you had an economic meltdown which is happening and in real time well this is what this article here is talking about from market watch this is paul b. 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 the financial nuclear winter and he talks about the top one percent had nine percent of the wealth in one thousand nine hundred eighty eight now they have twenty three point five percent he says the elites are violating the sacred compact between that

higher authority the leader and his people they possess the right to rule as didn't bark aside in khadafi and a revolution has ignited quote it calls it the elite contract and there's another word for it going back a couple hundred years it's called a social contract as iterated by thinkers of the enlightenment and of course famously rousseau talked about the social contract and when a social contract is broken it's imperative that the people revolt and seek a regime change i mean talking about this mel through concept you know i think about people like lloyd blankfein c.e.o. goldman sachs he's. like that he's like that monster from alien you know it's starts to drip through the spacecraft like yours lloyd blankfein is like. and he's just destroying things because of the toxicity of the derivatives that goldman spew out of their toxic organs into the spaceship earth.

and it's a 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 of the regulations and the regulators so for example glass steagall was the container vessel for a potential financial meltdown because that has been breached we see it melt through and paul be 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 available 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 we've got less to go of course put in place

after a crash of twenty nine with the creation of the f.c.c. and federal deposit insurance corporation f the 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 containments margin limits on commodity futures another containment and all of these things the commodity futures modernization act being screwed introduced in year two thousand scrapping much of the containment these are the elements that ohp. and up the floodgates of toxic derivative trading and the alien like exposure to the global economy from the monsters of derivatives like the blind finds in the jamie diamonds so we're going to look at one little other headline that this is also a puppy feral research firm two and this is from newsweek and mad as hell the anger that fueled 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 yeah 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 street what they call strategic default on all the under rock water mortgages that were fraudulently 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 so many organizers 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 x. . one in the same so let's look at this next headline which is actually a video in this is jamie diamond 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 tests done upon the banks right one by the treasury and one by the fed but then he also says this made a list of all the things we've already been done and if you think we're going to be

done so we've already done most of it actors are gone through with rich old mortgage brokers and obviously some banks unequivocally jamie diamond is lying through his teeth he is the number one bad actor they've got a ninety trillion dollars balance you know their j.p. morgan that they use to confiscate wealth from americans and people around the world ben bernanke if you had a spine if you had a pair you want to bitch slap jamie dimon 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 bail out greece ok how does that happen through the global banking system i wish ben bernanke he answers to it was jamie diamond is a mere middling management so long 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 and is 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 yet 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 dimon speech yesterday the response is go jamie yes this is from business insider and one of them. 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 you remember the famous who's on first routine between abbott and costello where it's like oh i know he's playing this game which and he says who's on first and he says i don't know who's on first because though what's on second i don't know who's a second who's up i've totally mangled their routine you can look it up on you tube but it's basically two comedians doing a puppet show for a very compliant corrupt in the bag mainstream media reports on the stuff as if it's 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 for all the population but let's look at this next have my response to jamie diamond performance in directly jim rogers long silver short g.p.m. so jim rogers was interviewed on c.m. b.c. and he says there's certain approach and crisis that would be worse than two thousand and eight because there's been more debt more debt 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 price to protect himself and when he's here asked in in c. in b.c. how to fix it what should they do they should cut spending when they're draconian that matter who should cut taxes and they should cut spending to the bone we cut troops in one hundred fifty countries around the world are not doing this in the good they're making in. 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 good old long jim silver laying it all out he also says that interview stays there but that he's short one big american financial numbered zero heads are speculating that it's probably j.p. morgan i would concur the easiest way can make money for you hedge fund traders out there is to short j.p. morgan go along so you're going to make a bundle of cash and as soon as j.p.

morgan stock price gets below silver prices their balance sheet is it will whole world one of 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 to teach 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 they're like to threaten you if the terrorist act lets you give me more money there tony buddy. i'll give you all the money you want to prince bandar because of the pull to crap. my best british accent all right thanks very much thanks so much for being on the kaiser report. don't go away much more coming your way so stay right there.

will be. real you believe this in science and technology from around the world. we go to the future covered. bug i'm back to the kaiser report time now to go to washington state and speak with david morgan of silver and vaster dot com david mark and welcome back to the kaiserin for a tribute to max morgan this is exciting stuff you've just returned from utah where he took part in historic event tell us what you were doing there what's going on in

utah the house bill three seventy one was passed into law and signed by that over of utah i was invited to participate in the ceremonial sorry this is the first state in the simple states of the u.s. to put back in the law build a yellow ball in theory basis to do transactions in gold or silver right sell walk us through this little bit pear 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 seller biljana as a work first of all the merchant so a new shoes or whatever you want to purchase is gross yes i do except sort of because he voluntarily does or does not so it's going to be voluntary on both sides the law is very stripped of what silver and gold it would accept and for right now bill it's in the law you can only use silver eagles were gold eagles so only core image that's minted by the federal government is accepted by the slot current time

so chris sort of important so what is going to take place is there is a depository. bed is already set up that people can deposit their silver eagles into and be issued a debit card now makes the whole transaction process pretty transparent where you're able to walk into a merchant and you know use it debit cards similarly debit card and buy whatever you're going to buy and it just takes the amount of protein medicine the record out of your. so was this is implemented it should be soon from what i've been told at this meeting. could really you know churchill 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 and the federal reserve bank are really not for this type of conversion out of fear after r.c.n. two precious metal based currency is this part of the stand off or same between the

states and the federal government because it also applies to other political issues as well well said matches so do other groups you see as you saw as the standard for states rights as outlined in the bill of rights there are certain powers worse given to the federal government of very very limited basins and the states actually have all the power beyond those limited abilities of the total government records of total government is usurp our kinds of power really outside the purview of the prosecution you trust to say wait a minute states rights no state sulky issue anything but coolants overpayments that's the law were implemented recruited into law and those who would have those who like to dress max and probably get through anyway but it's gresham's law you know the idea that well why would i spend it all corn it's appreciated in value versus the theocracy that's the preachy. because of that fact you know how much

traction we get in this you know of this movement in our cotton utah yeah well that's a good question and i've seen it raised on the blogs and people are suggesting that all this is a way for the state to hat get people to get out of their precious metal positions and 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 as part of a trend to move away from fast currency. but i would imagine the answer to this would be that you need to start the circulation of precious metals transit somewhere and what's in it 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 the perceived shortcomings of the fact that you're swapping out of theone for precious in

a very short term you know you lose both sides warley is pretty much it's going to make that determination so there's somebody out there perhaps that walks over to it sooner momentarily or so you know i want to spend it and you. an example the other examples listed gresham's law clue extreme and that would be. price quoted out of his earlier articles he said it's just the idea that you can outskirts. in gold silver maybe it will start soon net spend very little but at least raise the awareness of sound money to the floor for a lot of people who haven't thought of it before plus you've got to look at the market maybe a lot of groups will get discounts if you can so we're all whereas if you're if you're you know it's a different price so i mean there's lots of ways you can see it actually you know good. long route from there right that's a good point in other words that the merchant is very interested in any getting

their on hold of this appreciating asset the suppression in currency so that might be white 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 the op the opposite of this which would be savings and watching our savings appreciate in 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 depending on who you talk to as let's say between eight hundred million and a billion ounces does that increase the demand and if so how does it affect the pub what happens there on the on the dynamics of supply and demand and we put great price pressure on silver and i believe you know it's already been well know it

would put much much more on it because if you go. and you look at you know what average rate for the average person was back in the late between hundreds were created a dollar a day and constitutional dollars if you get it house today's u.s. goes one ounce i know that we're constitutional dollars backcourt so in six amounts or roughly three quarters of the house the point is simply dollar. was a pretty good a week at one time so. we're all bet right one hundred dollars less per ounce and we're not there yet and i believe we're going to get their house now but once the real values determined and we haven't in my strong opinion the true value of silver yet you see lots and lots more pressure that's why this question was kind of important to think about because you know people once they feel that they're

getting their value for an ounce of turnouts or whatever the term good news of the market why it's there you probably see a lot more transactions take close and grippy smells but if you believe strongly gets undervalued didn't soon see its course it's perilous talk about aggressive law for a second because it's something that bill black former regulator during the s. and l. crisis in the u.s. speaks about often as well as being one of those. if you will behave your 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 the what is the law question flogs calmly stated that badly grow so it's more accurately stude gross out. by law but regardless what it really means is that if you get sober. people make a choice and the tourists usually is a lost in the few yards. sorry and hold on to the gold and silver

so there's a good arguments. you know you want to snap in utah where there will be a lot of incentive for people to spend it will sort it all 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 all the more that they are recycled through the banking system you could say apply this to solver and say there's a velocity of summer 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 spending your silver you're increasing the price of the savings that you have left in your solver 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 warschauer spirits in china the amount of demand from china

underscores to fall there isn't just in demand in china but particularly the industrial demand it's really never a part of the really you go back to the silver institute's. two thousand issue and the amount of story use on a per capita basis in china was once. the amount of silver used in the western hemisphere so you know states in canada for example now it's about one twenty eight cents get a better we're all increase in the you. the reviews so close. anything electrical in china as they build in modernize their whole infrastructure that trend continues and continues stronger so right now it's about one twentieth the amount of silver pretty out of what 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 feel a lot of salut energy produced in china the investment gestural side in china is

huge on top of that you have gold and silver availability for investment in china as well well it doesn't take much imagination to think about one point four billion people in china certainly not every one of them is where the price over unless they catch on simply mass keyser you don't know how nz situation. was and seriously there's a lot of pent up demand available in china and of course other places as well i see that could be one of the most bullish names hundred various side what's interesting the way as 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 what they're mandated right governments to recycle for example in california some of the circuit boards that are not economic can be cycled still the last states that it must be so you have

a loss economically government to step in so it was so over mostly recycled so would the idea is that the car free go into you know very low level so we're allowed to talk to you in your place by digital recycling would be a major down trend and it has been for a few years we're now starting to come back us in a slightly bearish that's not the most bearish they're confronted to report all right well that's all. all the time we have for on this episode they've had more get of the mortgage report thanks as always for your contributions on the sober side of things and i would just say the other trend in the poll is trend is still intact is that your basic bottom line absolutely marriage if you see my election we're also in france or makes three big whoosh and she march in your projections sort of. goes up and down we're far far away in

a supermarket and that's going to do it for this edition of the kaiser report with me max keiser and stacy herbert and our thank my guest david morgan of the mortgage report if you want to send me an e-mail please to sell at kaiser report at r t t v are you it's all next on this as backscatter say bio.