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the. now it's seven thirty pm here in the russian capital due with a reminder. to libyans in the capital the nato bombing campaign which. both. fuel supply and constant air strikes have led to a shop. tripoli where thousands of civilians are bearing the brunt of the war. israel's aghast lifeline from egypt could be in jeopardy as cairo probes allegations the supply. of president mubarak was. reportedly considering raising the gas prices to israel. altogether.

record breaking suicide rates among young people in russia is blamed on indifference towards the problems of teens taking their own lives is one of the highest in europe. my colleague bill daughters 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 to what's happening in today's world markets do stay with us. i am i skies 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 melt down 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 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 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 well were you melting through to your melting through to

a place called depression has cracked 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 melt through a more serious than ario they 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 what one second on the financial meltdown for a strike of you much of the top 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 up with this huge catastrophe and well through and of course they're totally silent about it and so is the media so too in the financials theer you had a complete meltdown in two thousand and eight when he 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 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 a financial nuclear winter and he talks about the top one percent had nine percent of the wealth in one thousand nine hundred ninety eight now they have twenty three point five percent he says the elite are violating the sacred compact between that higher authority the leader and his people they possess their right to rule as didn't bark aside and khadafi and

a revolution is ignited well 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 who 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 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. through a financial system. and he's just destroying things because of the toxicity of the derivatives that goldman spews out of their toxic organs into the spaceship earth. i mean. 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 melt down 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 and 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 we've got glass steagall of course put in place as the crash of twenty nine when the creation of the f.c.c.

and 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 the 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 in the jamie diamonds so we're going to look at one little other headline that this is also a paul b. 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 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 street what they call strategic default on all the under ro 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 a bomb 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 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 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 test 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 a few things are going to be done so we're already doing most of it actors 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 they're 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 want to bitch slap jamie dimon at that conference and told him look we're the boss you're not the boss and then he was a 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 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 the american population that the fed

is a regulator and 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 want this. the writer here says just yesterday we got a text from 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 though what's on second i don't know who's on second 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's performance in directly jim rogers long silver short g.p.m. so jim rogers was interviewed on c.m.t. 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 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 is asked in 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 they're 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 going to hold long jim silver laying it all out he also says in that interview states are worth any short one big american financial now over derives or speculating that it's probably j.p. morgan i would concur the easiest way can 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 as soon as j.p. morgan stock price gets below silver prices 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 and prince bandar's tony blair there are yeah i'd like to thrive you if the terrorist act most or give me more money there tony buddy oh ok how do you know what do you want prince bandar because i'm a cook to crack. my best british accent all right stay there and thanks so much for being on the kaiser report. don't go away much more coming your way so stay right there.

come one stream cascading from. the view is miss was the one but this beauty brings death at a speed of more than two hundred kilometers per. step along. we'll. bring you the latest in science and technology from around the world. we go to the future of covered. welcome back to the kaiser reports i'm now to go to washington state and speak with david morgan of silver and vaster dot com david mark and welcome back to the kaiser report true if you max david margan as an exciting stuff you've just returned from utah where you took part and and historic event tell us what you were doing there

what's going on in utah the house bill three seventy one what's 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 of the u.s. to put back in the law the ability on a voluntary basis to do transactions in gold or silver right sell 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 or biljana as i work first of all the merchant goods selling you the shoes or whatever you want to purchase is going to say yes you accept silver because he voluntarily does or does not so it's going to be voluntary on both sides the law is very strict of silver and gold it would accept and for right now the bill that's passed in the law you can only use silver eagles or gold eagles so only a core image that's minted by the federal government is accepted by this law at the

current time so sort of important so what it 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 merchant and you know use a debit card or similar to a debit card and buy whatever you're going to buy and it just takes the amount of protein medicine the wriggled out of your care. so was this is implemented it should be soon from what i've been told at this meeting i think it could really you know trip you're now david morgan on the political front air 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 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 madge yes i do i think what you see is utah as 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 total government inquisitorial government is you sir all kinds of power really outside the purview of the constitution you trust so say wait a minute states rights no state self issue anything but gold and silver for payment debt that's the law were implemented were prudent to law see what happens what they're like to dress max you probably get to it anyway but. gresham's law you know the idea that well why would i spend it gold coin it's appreciating in value versus

the be our currency this the prescience in value because of that back you know how much traction will we get in this you know this move but mark colvin utah yeah well that's a good question i've seen it raised on the blogs and people are suggesting that well this is a way for the state to hat get people to get out of their precious metal possessions 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 and 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 trend somewhere and once it hits a certain critical mass 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 fear for precious in the very short term you know you lose both sides wiley is pretty much it's going to make the future an issue so there's somebody out there perhaps that walks over to it sooner due to you momentarily and so you know i want to spend it and to do. an example the other examples the state gresham's law can be extreme and that would be if you do a serious price quoted out more of his early articles he says it's just the idea that you can now start saving in gold and silver maybe you will start saving ness then very little but at least it brings the awareness of sound money to the forefront of a lot of people who haven't thought of it before plus you've got to look at the free market maybe a lot of routines will give a discount if you pay in silver or gold whereas if you're doing fewer you know it's a different price so i think there's lots of ways that you can see it actually you know get a foothold and move along from there right that's a good point in other words that the merchant is very interested in and getting

their hold of this appreciating asset the suppression in 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 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 a performer of 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 and if so how does it affect the pie what happens there on the on the dynamics of supply and demand it will put

a great price pressure on silver and i believe you know it's already there as you well know but put much much more on it because if you go back and it is three and you look at you know what the average wage for the average person wants back in the late eighteen hundreds you're looking at a dollar a day and a constitutional dollars and you can house today's u.s. super eagles one ounce i know that constitutional dollars about point seven six of an ounce or roughly three quarters of americans support is simply going to a dollar per day was a pretty good wage at one time so in today's speech world that might be one hundred dollars let's say per ounce and we're not there yet and i believe we're going to get there maybe surpass that once the real value is determined and we haven't been my strong opinion in term of the true value of silver yet you see lots and lots of upward pressure that's why this question was kind of important i think about because you know people once they feel that they're getting their value for an

ounce or two nouns or whatever they determine good news in the marketplace then you probably see a lot more transactions take place and she's metals but if you believe strongly that it's undervalued then since its course to save it let's talk about gresham's 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 the as. if you will behave your all economic aspect that drives markets and finance underneath underneath the surface. what of it tells you know explain gresham's law how to apply sarah what what is the law gresham's law is commonly stated that bad money gross out it's more accurately stude bad and it drives a good exchange rate by law but regardless what it really means is that if you've got gold silver reshaping and. people make a choice and the choice new jli is that else then the preop and. prescience are it

and hold on to the gold and silver so there's a good argument to be made that you know you want this anathema in utah but there won't be a lot of incentive for people to spend it all so it sounds almost as if you can apply the same concept that is in the fractional reserve banking system the velocity of money concept which is a say that loans become more plentiful all 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 concept here is that the more it is the greater demand there is for the solver and therefore the price goes higher so actually by spending your solver you're increasing the price of the savings that you have left in your silver savings account but let's move on to a 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 bullish aspects is 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 thought of the really if you go back to the silver institute's. two thousand issue the amount of storage use on a per capita basis in china was once. the amount of silver used in the western hemisphere so united states and canada for example now it's about one twentieth so it's been about our for forty increase in the you. overused so flows laptops anything electrical in china as they build in modernize their whole infrastructure that trend continues and it continues stronger so right now he's about one twentieth the amount of silver prick out or that they were using us you know so many 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 solar energy produced in china ingest industrial site in china is huge on top of that you have gold and silver availability or investment in china as well well it doesn't take much imagination to think about one point four billion people in china certainly not everyone of them is going to buy so over unless there's a catch onto the mass keyser you don't buy a house situation. seriously there's a lot of pent up demand available in china and of course other places as well i say that would be one of the most bullish things under various side what's interesting though may is that the recycling as started to 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 an economic to recycle but they're mandated by governments to be recyclable for example in california some of the circuit boards that are not economical to recycle still the last states that it must be so you're

at a loss economically the government has stepped in subsists over mostly recycle so the idea is that the car free going to you know very low levels over how a lot of thought be in place by digital that recycling would be a major down trend and it has been for a few years but now starting to come back i see that it's likely bearish that's not the most bearish they could find to report all right well that's all. all the time we have for on this episode david margan of the mortgage report thanks as always for your contributions on the the solver side of things and i would just say the other trend in the bullish trend of still intact is that your basic bottom line absolutely mera few sumo actually are no i'm also in france are mixed remove bush you see march in your projections. goes up and down we're far far far

away in the sort of market and that's going to do it for this edition of the cars the report with me max kaiser and stacey herbert our thank my guest david morgan of the morgan report if want to send me an e-mail place this at kaiser report at r t t v are you at all exxon this is backscatter saying buy off.