and six thirty on a sunday morning here in moscow glad to have you with us this is on to. anger on the streets of israel hundreds of thousands demand social equality and reform in the biggest anti-government rally in the country's history critics say prime minister netanyahu is more concerned with blocking palestinian statehood than addressing concerns of his own people. russia condemns it that use a new round of sanctions against syria saying that they will be useless in ending under-estimate country bustles has abandoned the import of oil from syria to europe cutting off the country's major source of income. and ukraine

a pushes for discounted gas supplies from russia backtracking on to the two thousand and nine deal that ended in european gas prices but president medvedev says kiev's of the proposals are not concrete and the current deal cannot be revised unilaterally. coming up next the kaiser report looks at whether the international monetary fund is more wrecker than a rescuer and also that hughes plans to cut the big banks down to size. this is the kaiser adore you know people talk about zombies stocking the globe in fact one exists and is terrorizing america. that's 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 crime 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 listen to provoke you say it is one of the things you are proud to stand and you would do it again in a hurt beat it was controversy it was the right thing to do dick cheney is a pox on our soul he has embarrassed and shamed americans well max you know he said in a heartbeat he would once again overthrow hevia score proceed with it once again tap the phones of americans despite what the constitution says he's 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 is an artificial pump in 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 not steady stream of currency being pushed 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's real. just like cheney iceland revived carry trade on lower risk so iceland raised it it was a pay. 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 on august seventeenth to four point five percent this is the first time in three years since the banking system collapsed because of the 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 and eight once their currency started to collapse so this 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 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 cronut flows peaked at one point two trillion krone which is the equivalent of ten twenty six billion and march two thousand and eight seven months before iceland's biggest banks failed iceland 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 what's . involved these artificially high interest rates were that were created to suck capital into the country which they used to collateralize to end times of value in debt to buy a lotto ridiculously overpriced assets in the u.k. like the west ham football club i didn't know the west ham had a football club and why's iceland buying it well max there is one man who's who is warning everybody in iceland don't let the carry trade happen again his name oscar johnson with us sounds awfully familiar oscar johnson wait

a minute this is this the guy we talked to the year before iceland collapsed 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 johnson he at the time was the chief research or an economist for fame 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 greed 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 baked into the 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 you start of vomit and puke because it's just larceny on a wholesale industrial scale well max you interviewed him in april of two thousand and seven and i point to another little clip from this film the world we see around us in europe was into the question you asked them do you think you're going to want . to be. the words there's a good. very interesting because you are. saying they're neither the people of the quickest route. or smuggle. the bhaskar was wrong about that do it i think you have the last laugh on that one you're going to rise up well so of course they're rising up across europe due to these. that these banks 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 we're bankers just don't learn their lesson take bloggers 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 warned 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 lows cash in buildings to common shareholders' equity and the bloggers point was that a smallish write off a three or four percent of assets would wipe out shareholders so max this global mail article says that this isn't a problem in canada why because first of all openings are highly leveraged so what's the big deal about canada right that's right there speaking out of their morally hazarded. oh you know we also saw what happened to all those other highly

leveraged banks like bear stearns like 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 their brand value and canadian banks he says quote are always got believe they won't admit it but it's true they're pretty friendly they don't compete too hard as u.s. banks to write they don't have to compete it is an oligarch plea 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 talkers i mean the oligarch plea in the canadian banking system and so to say that they're

safe because pointing 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 thing called capitalism 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 nine hundred eighty nine tokyo one nine hundred eighty nine the alberta oil fields the 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 any blodgett say as recently put forward the idea of actually having canada and america joining the creative 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 will go away oh by the way impose austerity measures in getting deeper and deeper every single day along the way well maxie goes on one further and this is like the marie antoinette moment the moment where he's taunting us because he said the canadian banks will 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 insurers risky mortgages advise 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 remember steve king was talking about the australian real estate market collapse while those collapsing government came in offer subsidies stop the collapse or a few months now is collapsing am i going to get will come in again morally hazardous 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 clutch of prats 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 like pleases getting embarrassing and

a little bit dane. as for us right there a chair in europe know that there are limits before you engender social unrest and it is it down there to see miss teen 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 or bury them in a plywood box in a potter'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 into a plywood box throw bury them in the bois de boulogne and just get rid of them. this year or so later it thanks frank as reported thank you max that's going to do it for this part of the show stay tuned much more coming away so stay right there. with you take three. three. three. three. two three. three blunts video for your media. free media our t.v. dot com. we'll. read you believe this in science and technology from.

the future of coverage. welcome back to the kaiser report imax keyser time now to go to sunny los angeles and speak with mike mony of gold silver dot com michael 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 at near zero for the next two years what will this do to the economy and to the dollar you know i said before that ben bernanke he is dumber than gold gold automatically balances 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 have 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 when they do this it dilutes the currency supply and causes the purchasing power to go down people call it inflation it's there 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 of a theocracy i just learned this is twenty seven years so the u.s. dollar being a theater and see has been around for forty years 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 fee out 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 transitional 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 be doing their gold that's that's the way of cheating the most cheating gold the most by making the fewest dollars possible really mobile ingle. 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 iou 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 central banks were leasing gold to suppress the suppress its 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. 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 core i'm not saying that these are any business or prices that gold is going through 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 it's a short term fix it's a band-aid but it's a band-aid that'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 held by foreign banks to come up with your ratio without that will play out others are looking at the u.s. money supply they look at m one or m two as that's number as reported and they come

up with some alarm numbers anywhere between five thousand to fifteen thousand dollars per ounce now is there let me it may seem a bit technical but is there any how it would how would you contrast these two methodology of using as you're 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 with ed 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 scam. they've got going they ramp that up for world war one and so there were more clane checks on gold and gold that exist in 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 to 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 and 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 bid the price of gold up and fill for 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 or 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 hour in school when i wrote my book it was only six thousand dollars that required that ben bernanke created all of this excess base money in just the past two and a half years based money's gone from eight hundred twenty five billion to just a breath away from three trillion so yes 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 one to 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 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 outs and you know all of this excess currency i'm asked a couple of people this may be you know the answer you talked about credit cards and how that factors into this money supply number how does you know how the food

stamps that 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 got forty or fifty million people in america using food stamps does 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 but i'm going to know because that is important it's another form of counterfeit money that they would just create counterfeit currency that they are just creating out of thin air i want to ask you one last question for. garden you i.m.f. chief she was speaking to the i.m.f. in jackson hole the jackson hole gathering with ben bernanke another 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 they pushed it into about all 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 but all regardless of whatever 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 as interest rates the interest rates would be different and the free markets 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 used gold gold is what the free market selects gold and silver are the two forms of money that the free market so acts right all the self is not a promise. 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 mike maloney of gold silver dot com it's all it's on for we have all the guys report this week thanks so much for being on the show thank you max a day that's going to do it for this edition of the kaiser report was made max kaiser and stacy herbert was like my guest michael olea of gold silver dot com going to send me an e-mail please does kaiser report at r t t v are you it's all

next on this is back scratching by all.