in the movie the joint the hotel rooms the home of villas the gateway who took the grand imperial college and the top western tours coromandel. close leisure to see don't need to go and. read this and the colonel was so told treat. eleven thirty pm here in the russian capital top stories the libyans in the capital rage at the nato bombing campaign which they say is robbing them of both their safety and their fuel supply concert asked price of lead to a sharp edge in tripoli where thousands of civilians a bearing the brunt of the. human rights groups say that nothing is changing for the better in egypt as the country's military rulers announce they've arrested seven thousand people since february revolution. and all eyes on the east where

members of the shanghai cooperation organization including russia are getting together to review ten years a collaboration and drop a blueprint for the future. and i'll be back with more news for you more developments in the thirty minutes from now in the meantime japan is the focus of the kaiser report next where mats and stacey compared the meltdown at the fukushima nuclear plant to what's happening to the world markets that's next. i am ex kaiser 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's facing 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 well 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 they 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 melt that of course i can imagine the top go soak electric power company they bought off the regulators this is what happens when you lead private companies do something that the government should be

doing and end up with this huge catastrophe in wealth through and of course for poli silent about and so is the media so too in the financial story or you had a complete meltdown in two thousand and eight when i paulson went to congress to get two hundred seven 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 ninety 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 is ignited book because of the elite contract 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 the social contract was 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 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 the spray ship 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 all 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 the feral says that you need to have a plan he says an evil plan an evil plan to him is something that the elite want you to think of it so it's so masterful well 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 at 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 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 the route of trading and the alien like exposure to the global economy from the monsters of derivatives like the blind climbs in the jamie diamonds so we're going to look at one little other headline that this is also what paul the federal research firm to and this is from newsweek mad as hell they know that fuel the arab spring is now boiling over in europe could club wielding protestors in america's future to 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 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 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 are 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 oh 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 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 by the treasury and one 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 they've already done mostly good actors are gone they were through all the mortgage brokers and officers from banks

unequivocally jamie diamond is lying through 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 you had a spine if you had a pair and 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 which ben bernanke answers to and 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 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 these 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 the 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 corrupt in the bag 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 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.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 to work 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 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 the 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. long jim silver laying it all up 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 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 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. bandar's tony blair there are like to threaten you if a terrorist attack bush you give me more money there tony buddy. i'll do all the money you want to prince bandar because of the close of crap that's my best british accent all right thanks very much thanks so much for being on the cause the report . does go i must work coming your way so stay right there.

room. welcome back to the kaiser report time now to go to washington state and speak with david morgan silver and vester dot com david mark and welcome back to the kaiser report true if you max right david morgan this is exciting stuff you've just returned from utah where he took part in and historic event tell us what you were doing there what's going on in utah up the house bill three somebody one

what's passed into law and signed by the governor of utah i was invited to participate in the ceremonial signing this is the first state in a simple states of the u.s. included back in the law all interior basis to do transactions in gold or silver right so not 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 of the leon has a work first of all the merchant that so a new shoes or whatever you want to purchase is gross say yes right buick sets or because he voluntarily does or does not so it's going to be voluntary on both sides the law is very strict to what silver and gold it would accept and for right now the bill which house in the law can only use silver eagles or it will be eagles so early cornish that's minted by the federal government is accepted by this law at the current time so it gets 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 equals 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 account so once this is implemented it should be soon from what i've been told at this meeting. could really you know picher 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 fact r.c.n. to precious metal based currency is is part of the stand off are saying between the

states in the federal government because it also applies to other political issues as well well said max just said you on equipment see if utah has the ability to stand up for states rights as outlined in the bill of rights there are certain powers 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 across a total government has usurped all kinds of power really outside the purview of the constitution and you just so say wait a minute states rights no state cell issue anything but gold and silver for payments and yet that's the law were implemented it were put into law see what happens when i do i like to dress max and probably get to it anyway but it. gresham's law you know the idea that or why would i spend it gold coin it's appreciating in value and versus the theocracy this new krishi paid in value

because of that fact you know how much traction we get in this you know this movement in our culture utah yeah well that's a good question and i've seen a. 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 the kind of the intention being the opposite of what we're suggesting here that there are some benefits and part of a transfer move away from fact 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 a purchasing power is not being whittled away from inflation over overcomes that the perceived shortcomings of the fact that your ear swapping out of piaf or precious in the very short term you know you lose both sides what really is pretty

much it's going to make the future going to shit so there's somebody out there perhaps that lots over to. you but momentarily or so you know i want to spend it and you. will be other examples of gresham's law can be extreme and that would be a serious price quoted on one of his earlier articles he said it's just the idea that you can now start saving in gold silver maybe we'll start saving now spend very little but at least reduce the awareness of sound money to the former for a lot of people who haven't thought of it before plus you've got to look at premarket maybe a lot of routes will give a discount if you. were ruled whereas if you're. due for chrysler i mean there's lots of ways that you can see it actually get a foothold and move onward from there right that's a good point in other words that the merchant is very interested in it and getting there on hold of this appreciating asset that's appreciating currency so there

might be willing to offer a discount which you get further incentive and then a playmate in terms of savings is a very keep. 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 seller a standard for prefer commerce what does this do to the above ground value of the above ground stock of silver of waste a penny on a toxic 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 power what happens there on the on the dynamics of supply and demand it will pollute great price pressure all out civil war and i believe you know it's already well

know much much more on it because it is true and you look at you know what average wage for the average person wants back in the late between a hundred you look at a dollar a day and a constitutional dollars and you get in a house today's us were equals one ounce i know that the constitutional dollars about six of an ounce of quarters are now supporting a secluded dollar per day it was a pretty good one time so to speak out rule 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 their house there or once the real values determined and we haven't in my strong opinion to remove the true value of silver yet you can see why it's a lot more pressure that's why discretions was kind of reporter think about because you know people once they feel that they're getting their value for an ounce or two

mountains or whatever the news of the marketplace will you policy a lot more transactions to a close and she smells of the blues. strong it gets under since it is close to suit but let's talk about gresham's law for a second because it's something that bill black former regulator and yes the crisis in the u.s. speaks about often as well as being one of those. if you will behave you're all economic aspects that drives markets and finance underneath underneath the surface a lot of it tells you know explain gresham's law how to apply sarah what's what is the law gross influx kamel it's. money grow so. we stewed gross out exchange rate and so our law but regardless what it really means is that if you've got rules it's. people make a choice and the truth is usually is that i'll spend three yards. for it and

hold on to gold and silver so there's a good argument to be. you know you do this now in utah because there will be a lot of incentive for people to stand. almost as if you can apply the same concept that is in the fractional reserve banking system the philosophy 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 sauber and say there's a velocity of summer concept here is that the more it's used to greater demand there is for the silver and therefore the price goes higher so actually by spending yourself or 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 press 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. china the amount of demand from china

for we're isn't just one demand in china. does your demand it's really never follow through. you left the silver institute's. two thousand issue and the amount of stories on a crook out of bases in china was once seventy the amount of silver used in the western hemisphere so united states and canada for example now it's about one twentieth says bit about our poor old increase in the amount of silver used so close laptops. getting electrical in china as they build and modernize their whole infrastructure that trenchant cheney and they continue strong so right now it's about one twentieth the amount of silver creek out of that they were using us you know so years ago and then again the trend continues so if you like your what's going on in the solar energy feel a lot of solar energy produced in china in just industrial site in china it's 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 et cetera not every one of them is going to price over or less course that catch on to be mass cars or you know my announced 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 robust names under various side what's interesting the way is that the recycling has 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 on economic to recycle what they're mandated by governments to be recycled for example in california some of the circuit boards that are not economic to recycle still the last states that must be so you had

a loss economically the government has stepped in so just so or must be recycled so the idea. car. you go through lowell sort of how a lot of thought you can replace by digital recycling would be a major general trend and has been for a few years but now a story to come back to us and so you have a slightly bearish that's about the most bearish they're trying to report all right well that's all the time we have for on this episode 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 lecture there are no london also in france are mixed removed whooshing see march in your projections sort of legal process all right he goes up and down we're far or away it will be in the silver

market and that's going to do it for this edition of the kaiser report with me max kaiser and stacey herbert our thank my guest david morgan of the morgan report if want to send me an email please this at kaiser report at r t t v are you until next time to sit back either say by zero.