now it's seven thirty pm here in the russian capital here with auntie a reminder now. and the libyans in the capital rage at the nato bombing campaign which they say is a robbing them of both the safety and fuel supply constant strikes have led to a shopping petrol shortage in tripoli where thousands of civilians are bearing the brunt of the war. israel's aghast a lifeline from egypt could be in jeopardy as cairo probes allegations the supply deal after president mubarak was

a shady scam egypt's reportedly considering raising the gas export prices to israel or plugging the pipe altogether. thus the alarm has been raised over record breaking suicide rates amongst the young people in russia it's blamed on indifference towards the problems of teens taking their own lives is one of the highest in europe. right so my colleague bill daughter's here in half an hour's time but for now it's the kaiser report where hosts max and stacey compare the fukushima power station meltdown so what's happening in today's world markets do stay with us.

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 oh 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 well i think i just pick up on the star second because remember after the initial crash of two thousand and seven two thousand and eight we 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 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 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 of course i could be much of

the temp go 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 are totally silent about it and so is the media so too in the financial story or 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 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 seventy eight now they have twenty three point five percent he says the elites are violating the secret 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 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 mel through concept you know i think about people like lloyd blankfein c.e.o. goldman sachs he's. that he's like that monster from alien you know it's starts to drip through the spacecraft like lloyd blankfein is like. the system. 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 a potential financial meltdown because that has been breached we see it melt through and paul 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 want to think of it so it's so masterful it dale 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 at the crash of twenty nine when the creation of the f.c.c. and federal deposit insurance corporation f b i see 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 these things and commodity futures modernization act being screwed introduced in year two thousand scrapping much of the containment these are the elements that. the floodgates of toxic to rivet of trading and the alien like exposure to the global economy from the monsters of derivatives like the blank lines in the jamie diamonds so we're going to look at one little other headline that this is also a poppy feral research firm two and this is from newsweek 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 diamond the head 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 that when it comes to america it'll take the form of mass street what they cost or t.j. defaults on all the under rock 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 organizes 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 tech go situation in fukushima was because the regulators and the people they were regulating actually were. 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 a 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 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 of it our cars are gone they were through all the mortgage brokers and obviously some banks unequivocally jamie diamond his lines are as to if 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 he had a spine if you had a pair and you want to bitch slap jamie donna at that conference and told him look we're the boss you're not the boss and then he was the would have admitted that ben bernanke he is beholden to the european central banks 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 which ben bernanke answers to which jamie diamond is a mere middling management one well but the important word here is actors and

both of them are actors they are pretending to the 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 dimon 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 called for cocaine

requirements as we reported on the show many times and you also have a situation where it's basically been 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 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 the second who's on 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 mainstream media who reports on this stuff as if it's some 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 headline a response to jamie diamond's performance in directly jim rogers long silver short g.p.m. so jim rogers was interviewed on c n b c and he says this approach in crisis that would be 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 really raise capital requirements because we need to introduce more debt even more debt we have we're 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 they should cut spending when they're draconian 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 states that 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 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 clearance 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 there are yeah i'd like to threaten you if the terrorist attack bush you give me more money there tony buddy. i'll give you all what do you want prince bandar because i'm a cook a crab. that's my best british accent are i stays there or thanks so much for being on the kaiser report. don't go away much more coming your way stay right there.

come right stream cascading from mom slopes to view is miss provides the air but this beauty brings down this kind of speed of more than two hundred kilometers per. step to launch on all our teeth. will. remain here the latest in science and technology from the realms where. we've gone to the future covered. welcome back to the kaiser reports i'm out to go to washington state and speak with david morgan of silver investor dot com david morgan welcome back to the kaiserin for

a tribute to america's right david morgan this is exciting stuff you've just returned from utah where you took part in an historic event tell us what you were doing there what's going on in your shop the house bill three seventy one what's the law signed by the doctor 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 all interior basis to do transactions in gold or silver right so the us through this a little bit here david margan in other words i've got a pocket full of stone or a bully and i can walk into the store and i can buy a pair of shoes and give them some or bullion has a work first of all the merchant goods so a new shoes or whatever you want to purchase is gross yes right you except because . voluntarily does or does not so it's going to be voluntary on both sides the law is very strict of what silver and gold it would accept and for right now bill it's in the law you can only use silver eagles or gold eagles so only core image that's

minted by the federal government is accepted by the slot current time so that's sort of important so what is going to take place is there is a depository. that is already set up that people can deposit their gold silver eagles into and be issued a debit card now makes the whole transaction process pretty transparent where you're able to walk into that merge 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 medicine the record out of your account so most this is implemented it should be soon from what i've been told at this meeting. 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 and the federal reserve bank are really not for this type of

conversion out of fact r.c.n. to 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 baucus i do i think when she is utah has the ability to stand up for states rights as outlined in the bill of rights there are certain powers that were given to the federal government of very very limited basis and the states actually have all the power beyond those limited abilities of the federal government christo cameras usurp our kinds of power really outside the purview of the car solution you trust so say wait a minute states rights no state solve the issue any. but cool and sober for peanuts yet that's the law were implemented were prudent the law. one thing i like to dress max you probably get through anyway a good. gresham's law you know the idea that well why would i state it will corn

its value versus the theocracy this new. value because of that fact you know how much traction will get in this you know of this move more cold in utah yeah well that's a good question that 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 transfer move away from fat currency but i would imagine the answer to this would be that you need to start the circulation of precious metals trend somewhere and once it hits 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 a fee for precious in a very short term you know you lose both sides were really is the pre-work it's going to make you think you're going to ship so there's somebody out there perhaps that walks over to it soon or do you momentarily and so you know i want to spend it and you does it as an example the other examples the state gresham's law to stream now would be if you do a serious price quoted on one of his early articles he says it's just the idea that you can now start saving in gold and silver maybe we'll start saving now spend very little pollution brings the awareness of sound money to the forefront a lot of people haven't thought of it. four plus you got to look at the flea market a lot of groups will be a big discount if you can still rule whereas if you're in a different price so i mean there's lots of ways you can see it actually get

a foothold in longwood from there right that's a good point in other words that the merchant is very interested in it and getting their hold of this appreciating assets appreciating currency so that 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 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 silver standard for commerce what does this do to the above ground value of the above ground stock of silver of what's depending on who you talk to as let's say between eight hundred million and

a billion ounces doesn't increase the demand in this town does it affect the probably what happens there on the on the dynamics of supply and demand it will include great price pressure all out civil war. you know it's already there if you will go much much more on it because if you. and you look at you know what average the average person wants back in the late hundreds your creator dollar a day and a constitutional dollars would be a good ass today's us super eagles one ounce i know that your constitutional dollars backcourt seven six amount you wrote we were to slow down scoop or you simply did it all or. was a pretty good one time so. we're all going to be one hundred dollars let's. corrals and we're not there yet and i believe we're going to get their house that once the real values determined and we haven't in my strong opinion of the true

value of silver yet you see lots and lots of pressure that's why this question was kind of important about because you know people once they feel that there are value for an ounce of turnouts or whatever the term views of the market place bill you probably see a lot more transactions to close and groupies levels but if you believe strongly go to undervalue since this group to suit her let's talk about precedent law for a second because it's something that bill black former regulator an e.s.l. crisis in the u.s. speaks about often as well as being one of those. if you will a behavioral economic aspect that drives markets and finance underneath underneath the surface a little bit tells you know explain gresham's law out applies here what's the what is the law of russian flags calmly stated that bad money grow so. accurately stude it grows out of beautiful exchange rate and so by law but regardless what it really means is that if you've got rules it's over the shooting and shooting people make

a choice and the choice knew julie is that all spend three yards. sorry and hold on to the gold and silver so there's a good argument. you know you want to snap in utah there will be a lot of incentive for people to stay and it will sort of sounds almost as if you can apply the same concept that here's 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 solver and say there's a velocity of summer a concept here is that the more it's used the greater demand there is for the solver and therefore the price goes higher so actually by spending your silver you're increasing the price. the savings that you have left in your cell resending the cow but let's move on to us applied to many of our second. the c.p.m. group what's the most bullish data in the report that's just come out and the most

bearish and i attack the stuff pretty clear closely over there at the morgan report one of the more bullish aspects is that china the amount of demand from china underscores two fold there isn't just in demand in china but particularly the industrial demand it's really never a part of the really if you go back to the silver institute's. two thousand issue and the amount of storage use on a per capita basis in china was once said to be here in the amount of silver used in the western hemisphere so united states and canada for example now it's about one twenty eight cents but about our poor old increase in the amount of the reviews so throws us. doing electrical in china as they will and modernize their whole infrastructure that trend continues and it continues stronger so right now it's about one twentieth the amount of silver prove how true they were using us you know

so years ago and again the trend continues so if you look at what's going on in the solar energy fuel a lot of sort of energy produced in china in just industrial site in china is huge on top of that you have gold and silver availability for investment in china as well all right doesn't take much imagination about were four billion people in china so why not every one of them as well the price over course that catch on simply mass keyser you are an ounce of. 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 world's poorest nations under very aside what's interesting to me is that the recycling astore. increase and as i thought about it more and more it's looks very likely because there are more electronics some of them can be recycled some of them are under canonic to recycle put them in

bright governments to be recycled for example tell. us some of the circuit boards that are in our economic cycle still the watch states that it must be so you're a loss economically the government is stuck in subsists over must be recycled so what do you ideas that are quote with the car going to you know dirty low level sort of how a lot of thought you can replace by digital recycling would be a major battle trend and it just didn't for a few years but now a story to come back to us to get a slightly bearish that's not the most bearish theory for i'm going to report all right well that's all the time we have for on this. they have it market of the market report thanks as always for your contributions on the server side of things and i would just say the other trend and the bullish trend of still intact is that your basic bottom line power salute you see my lecture there are now london also in

france our midstream it will see my chain your projections certainly the prices soar like anything goes up and down but we're far far far away from the top in the supermarket and that's going to do it for this edition of the kaiser report with me max kaiser and stacey herbert and i thank my guests david morgan of the morgan report it to us i mean in a place this at kaiser report at r t t v are you and mrs bax guys are saying.