as. davis is rushes and laying into the e.u. for taking a unilateral approach against syria for minnesota to love it all says the plans for a new oil and ball game will destroy any of the large approach to solving the arab countries the crisis. began pressures off in ukraine with a novel winter of discontent believing he had fails to successfully negotiate with moscow over its previously agreed fuel bills it's now looking for ways to become next dependent on russian gas despite the costs involved. actions remembering the

victims of the school siege seven years ago three hundred people were killed off the on terrorist tell children and teachers hostage for over three days without food or will. the kaiser board whether the i.m.f. causes more wreckage than rescue and also the use plans to cut the big banks thousand songs. this is the kaiser report you know people talk about zombies stocking the globe in fact one exists and his chair izing america. next i feel you're talking about dick cheney of course and he says he's a good walking symbol of what happens when one continues to look forward and never

looking back when justice is never delivered when criminals are allowed to stock the earth and we see that with the banking sector but he's a good example of what happens with the political and war crimes sector so let's turn to a little clip of him in the past few weeks this is him on n.b.c. promoting his book people call it torture you think it should still be a tool. secret prisons yes wiretapping well it was great for you say it is one of the things you were proudest of and you would do it again and i heard eight it was controversial it's time it was the right thing to do dick cheney is a pox on our soul he hasn't birthed and shamed americans well max you know he said in a heartbeat he would once again overthrow hideous corpus he would once again tap the phones of americans despite what the constitution says he is allowed to do of course dick cheney technically does not have a heart by the way there's just one flow of blood because he has an artificial pump

at his heart so it's just a constant flow of blood and it makes me think of the it's a great analogy for the financial system where it's just a steady stream of currency big push to the bankers and yet also in a system in which bankers have committed massive crimes against capital and yet they're able to walk freely so let's look at this headline to see what remember. just like cheney iceland revives carry trade on lower risk so iceland great if it was say hey who know. what. yes you know the carry trade that destroyed iceland yes of course well apparently it's coming back because iceland resists main interest rate by a quarter point august seventeenth to four point five percent this is the first time in three years since their banking system collapsed because of a carry trade that's ok so now they've raised rates again and they're also removing

capital controls which they brought in in two thousand a once their currency started to collapse so there's four point three billion traps in the country from prior to the collapse but because they're opening that they're expecting actually more money to come in because of the carry trade you know just to review here people would borrow money in japan or from switzerland the ultra low rates deposit it in iceland to pick up some extra interest rate on the posit as an interest rate arbitrage this is attracted a lot of capital which of course the country used to flow ten times the country's g.d.p. in debt and this is what killed iceland so you're saying that after four years and after beating the banks finally and after the krona collapsing that they think it's a good idea to restart the carry trade well some people do and i want to put into context i'll show you what how big the carry trade was according to the article

monthly krone flows peaked at one point two trillion krone which is the equivalent of ten point six billion and march two thousand and eight seven months before iceland's biggest banks failed iceland's g.d.p. that year was one point five trillion more the big controversy between iceland netherlands and britain of course revolving around save the savings account. involved these artificially high interest rates were that were created to suck capital into the country which they used to collateralize ten times the value in debt to buy a lotto ridiculously overpriced assets in the u.k. like the west ham football club i didn't know that west ham had a football club and why's iceland buying it well max there is one man who's who's warning everybody in iceland don't let the carry trade happen again his name oscar johnson. that sounds awfully familiar asker johnson but of where this is this the

guy we talked to a year before i saw him collapse and warned him against the carry trade now he's warning exactly max keiser you made a film called money geyser and you went to iceland you spoke to us or johnson he at the time was the chief research or an economist for saying bank which has since collapsed he at the time said on several occasions that carry trade is not a problem it is not a problem there is no hot money in this country today he says quote the central bank has stated that it wants to open the door to the carry trade as agreed knows no boundaries carry traders will always return as long as the yield is favorable that's right they will always return it's moral hazard it's of baked into their cake this guy oscar johnson he sounds like a guy who worked at a meat packing plant who becomes a vegetarian essentially this is what happens when you see what goes on inside these banks and you start of vomit because it's just larceny on

a wholesale industrial scale but max you interviewed him in april of two thousand and seven and i want to point to another little clip from this film the world we see around us in europe well listen to the question you asked him do you think you've ever wanted. to be was the. word you just lose. very very very few words that are the sort of saying their leaders the people of the civil. wars modal. bhaskar was wrong about that do i think you have the last laugh on that one. we're going to rise up well so of course they're rising up across europe due to these. that these banks that just won't learn their lesson because we won't punish them in fact we coddle them

whenever they make a grand larceny stick fault so let's move on to another headline along the same line where bankers just don't learn their lesson take blogger's bank warning with several grains of salt so this is the globe and mail and they're referring to zero hedge in which they blog about canadian banks and warns that they're on the verge of collapse because the tangible common equity ratio which the blogger used to drop his list compares tangible assets things such as lowe's cash and buildings to common shareholders' equity the the blogger's point was that a smallish write off of three or four percent of assets would wipe out shareholders so max this global mail article says that this isn't a problem in in canada why because first of all openings are highly leveraged so what's the big deal about canada right that's right they're speaking out of their morally hazarded. wolf you know we also saw what happened to all those other highly

leveraged banks like bear stearns lehman brothers yes they indeed were highly leveraged do they live today no they are dead so he has another point he makes why canadian banks won't class because he said they have intangible assets like a brand value and canadian banks he says quote are all adopt a levy they won't admit it but it's true they're pretty friendly they don't compete too hard as u.s. banks too they don't have to compete it is an older guy. they also have an entrenched captive audience that is forced to do business with them it is a moral hazard situation and of course they are going to collapse the reason why they have a collapse yet is because canadian banks already collapsed in the early one nine hundred ninety s. that's when they destroyed all the competition and brought in the club taco see i mean the oligarch really in the canadian banking system and so to say that they're safe because according to the very risks and liabilities as assets gives you an

idea of how you value banks these days all of the risks and the liabilities are considered assets and all the customers that provide the actual liquidity for the capital person think listen are expendable and disposable and treated like garbage now these banks are going to collapse why because the canadian real estate market is going to collapse why because vancouver is like japan in one thousand nine hundred nine tokyo nine hundred eighty nine the alberta oil fields of tar sands are stretched and that trans canada pipeline is going to be shut down by activists anyway so this country is going down the tubes and i love the fact that business insider henry blodget say as recently put forward the idea of actually having canada and america joining you create a global north american united states union as a way to extend and pretend take canners dead and american debt create new north american debt so what we're seeing in the euro zone this is part of the new. world order as some call it just create

a global debt market put all your local debts and to put it out for a hundred years and pretend like it'll go away oh by the way impose austerity measures and getting deeper and deeper every single day along the way well maxie goes on one further and this is like the moment to the moment where he's taunting us because he said the canadian banks won't collapse also because they enjoy a cozy relationship with the government so they get effective subsidies from ottawa in the form of canada mortgage and housing corporation which ensures risky mortgages and buys others so it's quite possible that if the housing market turns really ugly the taxpayer will be forced to write a check we saw this in australia last year member steve king was talking about the australian real estate market collapse while it was collapsing government came in offered subsidies stop the collapse or a few months now it's collapse and they're going to govern come in again morally house risk because the canadian government is in bed with the canadian banks a lot for a subsidy that will stop the rot for

a few months and then it'll collapse anyway of course so nothing's being done and more debt is being loaded up onto our economies onto the sovereign debt i see this headline here max europe's wealthiest raise their voices in favor of higher taxes now the subtitle says as fear of social unrest grows and offer to take on a bigger burden yeah ok so max they of course know they have hundreds and hundreds of years of history in europe where bankers and oligarchs and kleptocrats and monarchs have lost their heads precisely do because there was no justice was ever allowed for the people who stole if they were well connected they're connected to the sun king if they were connected to the oligarchs in power so they had there was no recourse for the peasants here but to cut off the head so now you have in france the french people are demanding because sarkozy keeps on giving them tax cuts and tax breaks he's there like pleases getting embarrassing and a little bit of pain. as for us right the richer in europe know that there are

limits for you engender social unrest and a visit down there to see. and they are sensitive to this type of thing america hasn't had that experience yet so it's a very mature country that haven't had a real popular uprising in its history where the poor as actors are actually chopping heads off the rich and so finally max i have a good idea here and this is a good example to follow short take illinois budget stiffs the dead so as part of trying to make ends meet the illinois state government will suspend its practice of paying one thousand six hundred fifty five dollars to funeral homes that bury the approximately twelve thousand public aid recipients who die each year now instead they're going to leave them in cold storage cremate them are bury them in a plywood box in a cotter's field otherwise the governor would have to take thirteen million dollars or so from that some program for the living to take care of the dead and that's exactly what you see happening in the world austerity measures are taking money

from the living to give to the dead banks i say we put all of these banks in to apply woodcocks throat bury them in the plot of the loan and just get rid of them. this year or so a great thanksgiving guys record thank you max that's going to do it for this course on the show stay tuned much more coming away so stay right there. worldwide manhunt for him lasted for fifteen years. and one million new war was promised for his country. for the west. in. general this year been. on a large. for the full story we've got it for. the biggest

issues get the human voice ceased to face with the news makers. welcome back to the kaiser report imax kaiser time now to go to sunny los angeles and speak with mike maloney of gold silver dot com mike bellone welcome to our first ever saturday edition of the kaiser report i'm honored max all right michael any let me ask you this ben bernanke he has promised to keep interest rates near zero for the next two years what will this do to economy and to the dollar you know i said before that ben bernanke he is dumber than gold gold automatically dalliances interest rates it balances currency inflows and outflows trade imbalances this was something that didn't take a group of men trying to figure these things out what we've got is

a monetary system that is a ponzi scheme it steals wealth from the middle class and transfers that wealth to the government and the banking sector these people get to ride for free because what they're doing by printing more currency and diluting the currency supply all the time and this is what zero interest rates will do it will expand the currency supply and when they do this it dilutes the currency supply and causes the purchasing power to go down people call it inflation it's the it's actually it's the dollar losing purchasing power. and this goes down just because there's more and more and more units of currency out there so basically you know he's on is that the path of destroying the dollar the average lifespan other theater and say i just learned this is twenty seven years so the u.s. dollar being a fee after and see has been around for forty. errs it seems like it's overdue to

be replaced and bring back something of tangible value like the gold standard you've been talking about this for quite some time talk to us a little bit about how you transition to a gold standard in other words you've got a lot of money out there you need to figure out the ratio between fiat's money and the available gold and the money supply for example in the u.s. how does that factor into a transition you know when i was writing this is one of the chapters that was actually cut out of my book my book was two and a half years of research and editing but actually the research was six years because it goes back to the beginning of when i got into this really. and one of the things that i did as an exercise i was when i was writing back in two thousand and six roughly. i went and found what would it take to instill confidence once again in the u.s. dollar if the u.s.

dollar was going into a hyperinflation or there was a crisis of confidence and basically i believe that that would take something like the bretton woods system where the u.s. dollar would be redeemable in gold but to foreign central banks only because believe me when when this current monetary system starts to fall apart they're going to want to try and run some scam on us again and only back they're going to try and back the fewest dollars possible with gold and so by making foreign central banks only eligible to regain their gold bets that's the way of cheating the most cheating gold the most by making the fewest dollars possible we do modeling gold. when i did this whether what i did was found out how many dollars are held by foreign central banks and you just divide it by the ounce of gold that the treasury claims to own they may not it all of the gold that the u.s. supposedly has was turned over to the federal reserve in one thousand nine hundred four and the treasury has

a bunch of hundred thousand dollar gold notes pieces of paper that say i owe you gold from the federal reserve. and the federal reserve has all the gold and the federal reserve can't be audited so what they have done with it over the decades in between we have no idea that greenspan admitted in testimony to congress in one thousand nine hundred six that the world's central banks were really single to suppress the suppressants price to keep gold's price down so whether or not the u.s. actually has the gold that's very questionable but if they did have all the gold that they said they did then the price of gold has to rise to about twenty thousand dollars per ounce when i did the exercise it was nineteen thousand eight hundred thirty seven dollars or something like. that per ounce for the treasury to have enough gold to cover every dollar that foreign central banks are holding now if dollars if currencies were to fail and you were just to replace all of the dollars out there with gold it requires

a price of around two hundred three thousand dollars per ounce if you were going to just replace all of the currency with gore and i'm not saying that these are any of these these are prices that gold is going to but gold is still extremely undervalued at this point and i think that ben bernanke these policies basically say that the dollar is doing he's willing to sacrifice the dollar to save the economy but when he sacrifices the dollar ultimately it's going to ruin the economy it's a short term fix it's a band-aid but it's a band-aid it's going to leak ok so to come up with a price of gold that would satisfy the outstanding claims. currency you're using the dollars hold by foreign banks to come up with your ratio of how that will play out how others are looking at the u.s. money supply they look at m. one or m two as that's number is reported and they come up with some alarm numbers

anywhere between five thousand to fifteen thousand dollars per ounce that is are let me may seem a bit technical but is there any how it will how would you contrast these two methodology of using as your i guess it would be your numerator either the cash held in foreign banks or let's say the m two money supply doesn't matter at all or would you make it can contrast these two well when i wrote my book in my book i've got some graphs that are generated from information from the treasury and the federal reserve and what it shows is that the base money in the country the money that's created by the federal reserve and the treasury in sort of the hocus pocus scheme. that they've got going they ramp that up for world war one and so there were more claim checks on gold and gold that existed our currency used to be a claim check on gold and then we go on and there's bank runs in the thirty's and then they allow the dollar to float in the dollar's value sank until gold prices

rose from twenty dollars to thirty five bucks an ounce and in doing so there was enough gold at the treasury to once again back every dollar ever printed from george washington to roosevelt. then we printed a bunch more claim checks on gold by nine hundred seventy one there were too many claim checks out there and not enough gold charles de gaulle had been asking for gold for several years the president of france and gold was flowing out of the treasury and nixon had to take us off the gold he ended the bretton woods system and once again the will of the public in the free markets did the price of gold up until four a year there was more. the value of the gold of the treasury was greater than the value of all the dollars ever printed and it also covered outstanding revolving credit unpaid credit card balances the credit cards are replacing cash in circulation and for that same thing to happen today for history to repeat and the

same thing that happened in one hundred thirty four and in one thousand nine hundred eighty it requires fifteen to twenty thousand dollars per school when i wrote my book it was only six thousand dollars that it required but ben bernanke created all of this excess base money in just the past two and a half years base money has gone from eight hundred twenty five billion to just a breath away from three trillion so he's we've created more paper currency basically in the last three years. four times more than in the past two hundred years. and if gold rises to meet that again like it did in one thousand nine hundred four and in one thousand nine hundred eighty it's fifteen to twenty thousand dollars per ounce gold prices going back to one nine hundred eighty when gold was eight hundred dollars an ounce the ratio of coverage to paper claims to gold was roughly once a one right now it's about fifteen percent coverage yeah it was over one to one for a while it was it was actually up at about one point two. to one so there was more the value of the gold at the treasury exceeded the value of the

currency created but right now it's about twelve percent and if you add standing revolving credit because credit cards are replacing cash in circulation and when when i charge something on a credit card i expand the currency supply of the planet and the merchant that i am paying his to his checking account can't tell the difference between a dollar i created or a dollar that the federal reserve created and that dollar circulates until somebody saves it up and pays down credit card debt when you take this into account the currency that the public is creating outstanding revolving credit then we're at about eight percent coverage so the gold has to rise tremendously to cover all of these out you know all of this excess currency i asked a couple of people this maybe you know the answer he talked about credit cards and how that factors into this money supply number how does you know how the food

stamps fit into this because it seems like food stamps are part of a black market and you know that nobody really talks about the food stamps out there the fact you've got forty or fifty million people in america using food stamps is that how does that factor into the into the growth of money supply well you got me there max this is something i never thought of even studying that i'm going to now because that is important it's another form of counterfeit money that they're just created counterfeit currency that they're just creating out of thin air i want to ask you one last question for. guard the new i.m.f. chief she was speaking to the i.m.f. in jackson hole jackson hole gathering with ben bernanke you know other central bankers and one of the big points there was that policymakers have to do everything they possibly can to keep house prices from falling further what are your thoughts on this point. my thoughts are they won't let the free markets work real estate got into

a bubble because of policymakers trying to manipulate things they were trying to keep the stock markets from from seeking equilibrium and going back to realistic p. e. ratios and dividend yields they tried to be pushed into a bubble the bubble popped nobody likes a recession so the government comes in to save us and they try and push the stock market back up by lowering interest rates and accidentally create a housing bubble they're going to create some other puddled regardless of whether every what actions they take we have a monetary system that is a fault for this we are using a ponzi scheme monetary system that isn't a free market monetary system if we allow the free market to once again select what money was and what the price of money is in the price of money is interest rates the interest rates would be different and the free markets oh always always select gold and silver you know i don't care about gold and silver that much i don't want

to try and come back to some gold standard in fact i wrote an article once called gold standard suck. a gold standard is a national currency that supposedly backed by gold and it just opens the window for all this these scams to be run on us again. if you just use gold the gold is what the free market selects gold and silver are the two forms of money that the free market selects right all this office not to panic. c.-a you still have the possibility of these multi level schemes infiltrating this system however there is some accountability with gold which you don't have any other paper money might moloney of gold silver dot com it's all it's own for we have with guys report this week thanks so much for being on the show thank you merits a day that's going to do it for this edition of the kaiser report with may max geyser and stacey herbert on my guest michael olea of gold silver dot com going to send me an e-mail please do kaiser report at r t t v are you it's all next on this

is max keiser saying they all.