i know what's really happening to the global economy with much stronger no holds barred look at the global financial headlines to cause a report on our key. headline good things come to those who wait after nearly two decades of torture russia finally gets the green light to join the global trade system. the italian economy trembles and groans under the weight of its debt silvio berlusconi's promised resignation leaves markets fearful of a powerless successor if the i.a.e.a. report on iran's alleged nuclear weapons program stirs up tension all over the country splitting the world community over whether to build up pressure on iraq. dollars here in half an hour's time gotta be directly after the kaiser report that's now. well. technology innovation all the developments

around russia we've got the future of coverage. i am max kaiser this is the kaiser report i finally made it to the house of commons to give david cameron a piece of my mind herbert yes indeed max keiser david cameron gets s t f used by max kaiser and you'll notice minority the criminals who have taken what

they can get i say this we will track you down we will find you we will charge you we will punish you we pay for what you have asked the f.b.i. you asked t. f. you david cameron because you're completely off base here you are a total product and elitist school banking schmucks here it's blatantly obvious that your own bankers are financially we are people. out there. and i'll be in london soon enough you know we just got back from ireland are you in our world sorta visit all the hot spots around the world as we push back against the criminal banking class warming up for the great inquisition part numerous double o. twelve yeah well the book they're. looking forward to what else well speaking of the global financial name computes they of course were meeting down in new. last week and one of the talks to emerge was in this next headline buddhist bank central

bank reserves will not help fund the f s f so g twenty leaders in can discuss the idea that the european system of central banks could pull on their total foreign exchange reserves of fifty to sixty billion euros to a trust of the european crisis fund in the form of a special drawing rights from the international monetary fund gold is in play this is what we've been warning you about for a long long time that gold is going to be in play now it's definitely in play because all of the banks with all of these debts when you add them all of you realize that all of the banks are insolvent but the counterparty risk as it's called doesn't exist because there is no possibility of any of these counter parties making good on any of these bets there's only one currency in the world without a counterparty risk that's gold it's in play now people want germany's gold but of

course most of it's a new york and the gold thing continues as we've been telling you now the buddhist bank itself said regarding this plan for germany to own fifteen billion dollars for the german scolds he said we know this plan and we reject it good luck good luck rejecting it sixty percent held in new york and you're not allowed to have a military after we crossed you after world war two so good luck with that germany plot but block well you did pre-warn them in two thousand and nine you were in frankfurt and here's a little clip of you there telling them exactly this plan to a german people hold of pure gold gold those values the u.s. dollar no value it's their currency. hold on to your german people as you seem. nobody was listening to you they should have well i mean when central banks were net sellers of gold including the federal reserve bank of bank of

england that's when germany should have said oh by the way give us back our gold but now the goals of play and all the global banks are collapsing it's too late you screwed up germany no gold for you buddy ok well at least max germany is not a serious debtor like italy is own crisis italian borrowing costs soared to bailout territory so we know italian debt is that two point six trillion dollars was dwarfs that of greece and the yield on the italian ten year bond went up to six point six six percent as you can see from the start spike right now on good take the hot seat away from grace who took the hot seat away from ireland but the whole crisis will revisit ireland again they just found an incredible new realize liability and their banks' balance sheet that will require another bailout in ireland and more austerity measures speaking of arlen say see i was just in

limerick at limerick university they gave me this award the limerick university debating team this is for contributions decline to answer journalism what does this say stacey it says honorary life membership according to max keiser for his contribution to debate and discourse they must've seen your discourse at the dispatch box with david cameron yes well the contributions i've made apparently to the art of discourse and debating is my use of props. of the props and i like props like this like here's a fifty euro roll of toilet currency all of your fifty euro toilet paper currency will soon be about as valuable as this toilet paper except this is all available nightly printed up in this beautiful display case that you can show in your house and tell your kids all about what happened in europe at the end of the beginning when it was all turned into one big pile. now regarding italy humax feisal islam who is the economics editor for channel four news in the u.k.

i said a fortnight ago f s f equals end for silvio's fiefdom germany will not create italy sized bazooka for use by berlusconi now remember germany has a lot of say in what happens in the eurozone particularly when it comes to monetary or any fiscal policy and now remember silvio berlusconi in the investigation into one of the various crimes he is involved with the phone transcripts from his conversation with a journalist said that he had called german chancellor angela merkel. well lord. so it's coming back to bite him now well this is the amazing thing because ultimately there are going to. world war three. in europe and around the world as part of the currency war and we'll be talking about

that with james records after the break but it's already started europe is now in a war they're conducting a currency war and germany can always pull out of the euro completely but it'll be a reunified germany with three thousand tons of gold oh yeah that's right that's the whole point of it was good well speaking of the gold ok now angela merkel's party suggested italian gold sale raised by c.d.u. lawmaker. post says so italy according to a good third greek a lawmaker in german chancellor angela merkel's party says italy can lower its debt by selling gold reserves so this is it again over and over we see this brought up in this european debt crisis that somebody should get rid of their gold and now they're trying to use this as a weapon they're excusing each other that they have to get rid of their gold get take his gold take their gold. italy has twenty seven hundred tons of gold to really big position and i make this prediction china never really came to the

a greece they have not come to the aid of anyone in the eurozone but they will come to the aid of italy in exchange for gold i make that prediction but before where our next week that will be definitely in play china a italy for gold according to the m.p.c. chart from september italy's gold reserves with the fourth largest in the world they held two thousand seven hundred one tons which was valued at one hundred fifty seven billion dollars now if you add that into the two point six trillion in debt that means that gold would have to be valued between twenty five thousand and thirty thousand dollars an ounce to clear their debts completely and i think that's something that you and m.g.m. records have come up with as a number that's where gold is headed to clear the global debts it's going to be north of forty thousand dollars old dollars an ounce but the thing about china and

italy is that china will come in and before the i.m.f. sinks their claws into italy and gets them to sign a memorandum giving away their constitutional rights as they did with ireland and as they did with greece italy will preempt the i.m.f. and they'll do a deal directly bilateral deal with china i predict that you'll see this is going to happen but speaking of the foods max let's move on to this traders from chicago board of trade don't mean donald applications on occupy chicago protesters so last week in the middle of an occupy chicago teachin traders of the chicago board of trade don't employment applications for mcdonald's on the protesters now to let people know what the chicago board of trade is i looked it up and we keep eating and they say it was established in eighteen forty eight as the world's oldest futures and options exchange now in two thousand and seven it merged with the chicago mercantile exchange. to form the c.m. group yeah and the c.m.a. group is also the largest regulator of the futures markets in the us but it's also

the largest player in the futures markets in the us and they fall under the heading of self regulated body that conducts business according to the rules that they themselves regulating them selves and what we know about the c.m.e. is that they've been caught now several times breaking the law and the c b o e the chicago board of options exchange in the chicago board of futures exchange there at the heart of the fraudulent derivatives trading and of the fraudulent frame that goes on every single day the leg the lawbreaking that goes on because c.m.e. for example told more about this is really shocking but we're going to move on to this headline so they're saying to the protesters get a job but they can't even do their job m.f. global customers say money safeguards failed them c.m.e. group the world's largest futures exchange is responsible for coordinating its clearing members such as m.f. global under its authority as a self regulating organisation now c.m.e.

group is losing the trust of investors according to this article in bloomberg business week who uses the exchange and expect their money to be protected said a trader with five hundred thousand dollars in an m.f. global account that has been frozen since october thirty first and who asked not to be named because he fears reprisals he also said the c.m.e. group told him to expect not to get his money back for years as it's held up in litigation going into business with the commodity markets in chicago regulated by the c.m.a. group when you give them your money to be investing in various accounts they put that money in their own pocket and then they put up a set of false accounts to the regulators that they themselves regulate and that's how they based their quarterly performance numbers and their filings is. based on a completely fictitious reports they they they falsify accounts they commit massive

fraud they commit massive counterfeiting this is the closest to a memory on twenty at moment we've had because it was the royal family of france that caused the country to be bankrupt at the time and perhaps marie antoinette thought she wasn't taunting the population intentionally like these guys are yeah but these guys at this derivatives exchange the largest three biggest market in the world they are responsible more than almost anybody else for the global financial crisis that we see before us but the question is where can i go to start an insurrection i mean as a chicago is it grace i'm thinking in belfast because you know there they know what it takes to start an insurrection and get a lot of requests to go up to belfast to start a new country called the independent republic of max kaiser and i got to go after the baxters so belfast i'm coming into your town and you get to declare this in parliament when you speak to david cameron again there won't be any parliament left

by the time i get there i'm pursuing a scorched earth policy head of when i arrive that's. all right thanks very much thanks so much for bring on the kaiser report thank you max don't go away after the break i'll be talking with currency wars writer james records. years of hard toil said. tradeoffs russia is raising suspicions taking. place. some downsides of flushes to museo accession or exceed.

the. technology innovation. developments around russia. the future of coverage. i am backscatter welcome back to the kaiser report don't walk run to your nearest candle in pick up a copy of this book currency wars this is the result of stone of the entire financial situation confused don't be read this book let's talk to the author james g. records jim welcome to the kaiser report thank you max thanks for inviting me all right your records your book is very timely with the suggestion emerging from the g twenty that german gold reserves should be pawned to the f.s.f. in order to increase the leverage available to the fund explain what's happening

here in regards to the currency wars lomax's we've said all along and as i say in the book you know currency wars are about competing devaluation so the fed the treasury have been working very hard to cheapen the dollar really trashed the dollar relative to china and europe but china does not want to strong currency either because they want to promote exports and europe has the same problem that's the essence of currency wars not everybody can cheat and all it wants somebody has got a way to somebody i was right now by the way the big loser is europe because the euro is done is very strong but people are surprised that they've heard you know europe is falling apart it's in crisis the sovereign bonds are you know trash and cetera but the problem is china and the u.s. both. a strong euro because they want to sell their goods to europe europe's a larger export market for china than the united states is so if china in the u.s. want a strong euro you're going to get a strong euro and germany is on board with that so that really explains back an entrepreneur of the end of the day not everyone can win a currency war unless you go to gold gold is the one thing where everybody can

devalue it once again scold they can't devalue against each other but they can devalue again school so that's where these things end up but there's a joker in the deck max the joker is the s.t.r. i know it makes people's head hurt but it's a special drawing rights and easiest way to think about it this is the i.m.f. printing press the fed has a printing press they crank out dollars the c.b. has a printing press they crank out euro's and known to very few people the i.m.f. has a printing press and they crank out s.t.r. so i see the entire international monetary system as a foot race between s.t. r.'s and gold because those are the only things left i want to repeat that point because it is quite critical going forward especially in your thesis as you laid out in currency wars the e.c.b. can't print your hours the fed can print dollars and the i.m.f. can print these s t r's which is another thing i've currency global currency now in response to this ingestion about the selling or collateral zation of germany's gold

germany countered with a suggestion that instead they suggest that italy sell their gold to pay down the debt now of course italy's got a big gold position in all of this distance walk us through that little counter response from italy and their position in the gold right now you know i've described i've actually studied the entire world in gold space and what i mean by that people you know geo strategy or study of the world of oil space this who's got the oil who needs the oil one of the choke points are the straits of hormuz how is it shipped to cetera think of the world in gold space and ask yourself who has the gold who needs the gold and where is the come from as a very revealing picture of the gold superpowers in the world. or actually the united states and europe they may have they may be trying to charge the paper currencies but the us is a thousand times the euro system as a whole all sixteen members have ten thousand tonnes so that's what the pushing shoving is about but there's one big problem which is that gold that we just talked about is not in europe it's in new york it's about you know half

a mile from where i'm sitting i'm doing the interview for new york and it's in the basement of the federal reserve bank of new york and good luck to the europeans trying to get it back i mean the problem with those gold pledging is the gold actually in new york and the u.s. is in a position to confiscate it when the time comes right jim i wanted to spend some time now on in the book currency wars this is just out this week your book in the first complex chapters you go through an actual pentagon sponsored exercise of a currency war and these chapters read like a thriller this is a fantastic read as well as being incredibly informative but you were participating in the pentagon's exercise of a currency war and i'd like you to summarize those first couple of chapters for viewers because i really think they need to understand that this term currency war is not just a metaphor this is really happening walk us through it sure that's correct this was what you're to describe to max it is the first two chapters of the book is the

first ever financial war game conducted by the pentagon over the pentagon's conduct of war games forever and they're very you know there's the red team in the blue team kind of bad guys and good guys and they do these all the time in the certain centers where these are conducted but this is the pentagon decided two thousand and nine that they should do a financial we're going to see where that would look like it was conducted a top secret weapons laboratory halfway between washington and baltimore called the applied physics laboratory but it was the first time they'd ever done finance so i was actually invited in as a as an expert consultant on how to write the rules of the game and it was they knew how to use aircraft carriers and b. two bomber. years and fitness invasions but no one knew how to use stocks bonds of derivatives to fight a war so the rules where you could not use any kinetic weapons means nothing that would shoot or explode you could only use stocks bonds currencies and derivatives and we had teams there was a russia team a china team a united states team and then we had sort of europe and switzerland hedge funds all

lumped in together and then they were referees so you would we were given certain scenarios you would make a move you would announce it the other teams would react we have separate rooms for our capital so we could go back i was on the china team so we went back to beijing which was a certain room the that was our capital we played it over two days and it was fascinating my object was to help the united states i actually wanted to attack the united states as hard as we could in order to teach our own military and intelligence community what the threats where you're trying to trying to help america by showing the vulnerabilities of america's that's what we did and i actually cook up a little plot with a friend of mine who was on the russia team and china and russia combine forces and combine their gold and announced a new gold backed currency using u.k. banks and swiss depositories and what they said is from now on if you want chinese exports or russian natural resources we will no longer accept dollars you must pay us in this new gold backed currency that we sponsor as

a way to kind of get the united states to think hard about the vulnerabilities of the dollar was a fascinating exercise it's all describe the book i hope the readers enjoy it but it was it was a deadly serious gambit by the pentagon to understand how financial war could play out you also mentioned i want to talk about a tweet that you've left in the last day or so again on the special drawing rights you said you tweeted that the g twenty will go to a special drawing right before they go to gold and then gold is the last resort walk us through that yeah sure i mean the thing is set the central banks and the international monetary elite represented by the g. twenty leaders the i.m.f. and then the central bank as the finance. ministers around the world just to be clear they hate girls now they have it you know the u.s. has not sold any gold since nine hundred eighty europe's been holding on to the gold so the people with gold to hang on to it but they actually hate it they would prefer for the currency because they can manipulate expectations they can if you lay people people who are kind of in on the game can hedge themselves with you know

things like gold land fine art other types of hard assets warren buffett bought a railroad that's the ultimate hard asset so the insiders can protect themselves the people who lose are average citizens so people saving in a bank account people with their retirement savings annuities insurance policies anything that's sort of denominated in nominal dollars that's not going to go up with inflation they're the victim so this is a sort of organized theft from taking money from average people giving it to the elites who know how the game is played so that's why they like paper money when they get over it doubt it which they are now europe cannot pay its debt there's not enough money in the world to fill the hole in the european balance sheet but what you can do is print some s.-t. r.'s and hand them out just like candy hala when you know here comes china here comes italy here comes france here's some s.t.r. as kids and go you know go have a good time that's actually if it sounds it will be frivolous maxim being very serious that is how as the hours worked are not backed up by anything they are handed out by the i.m.f. they do count as reserves you know when the s.t.r.

came out in the late sixty's in the seventy's they were actually called paper gold now it's one of the great oxymorons of all time but it was the nickname for them when they came out they were called paper gold so that would be the elites preferred route but my view is that you'll be able to keep going a little longer with us d.r.s. but eventually it will go critical people will lose confidence across the board at that point they will go to gold not because they want to but because they have to write it in a book currency wars by james j. records there's also some great analysis systems analysis because we're kind of almost in a post economics world we're in a world run by systems theory and systems analysis. if you bring in an n.s.t. are for example you try to roll up all the existing tat into a new currency in a new bond market you're just adding exponentially more debt to the system which actually increases the risk of chaos exponentially above that but in the minute left i wanted to convert something here which is i just came back from the token

omics economics festival in ireland and we're talking about gold and of course they think here all the time is well there's not enough gold to be for there to be a gold standard and i know you have some thoughts on that jim record sure i've actually got working on a piece called the you know the ten the ten things that everybody believes about gold they are not true in other words there are so many sort of false hoods or can ours are sort of cliche responses from the answer go people but look people say there's not enough gold to support world trade there's always enough gold it's just a question of price there is not enough gold at seven hundred dollars an ounce but there's plenty of gold at seven thousand dollars an ounce so the point is it's not about the quantity of gold it's about the price you choose to back up the money supply and this is another very serious point this was the blunder in one thousand twenty five in one thousand nine hundred five in the wake of world war one and you know why more hyperinflation and reparations and all the problems the world wanted to go back launch of the gold standard now winston churchill insisted that they go back at the pre world war one price which was about twenty dollars and sixty seven

cents announced in us dollars and four pounds a little more than four pounds in terms of u.k. sterling i thought it was the honorable thing to do probably as motivations were right but it was an enormous blunder because so much paper money had been printed during a world war one that to go back on the gold standard at the pre world war one price you had to take the money supply in england down by fifty percent well it was in the depression ten years before the rest of the world that was highly deflationary later in his memoirs churchill said that was the worst mistake he ever made and this is the guy we're just really quickly so he had a couple mistakes in addition to all his great achievements so the answer is it's not just when you go back on the gold standard. you have to think really hard about the price in one thousand nine hundred five if they had said maybe fifty dollars an ounce a set of twenty dollars an ounce that might have been mildly inflationary we might have avoided the great depression ever since economists have disparaged gold and marginalised gold so we'll just give in one thousand twenties you can see it felt really did fill in the one thousand tons but not because of gold but because of the

price so when you go back to the gold standard you've got to get the price right that's why i recommend actually a commission to study this and make some recommendations i give a range of values in the book i don't want to put a stake in the ground there were certain value max i've got the low end about three thousand dollars an hour and forty four thousand dollars an ounce and these are not you know made up numbers they're all just very simple math ratios of gold quantities to money quantities for example to use them zero to use and one to use and to do use all the gold the world is just the official gold if you're using official gold is it just e.c.b. chon in the us or do we count other countries as well these are important questions i don't pretend to have all the right answers but i know the questions and they have to be studied so getting the pressure is really put so people say there's not enough gold that's nonsense it's a question of price i jim rickards thanks so much for being on the kaiser report thank you max all right that's going to do it for this edition of the kaiser require with me max kaiser and stacy herbert and one thing my guest james g.

records the book is called currency wars you can follow mr egerton twitter james t. records as well pick up this book and they can follow me on twitter accounts or report or on facebook and you can send me an e-mail at kaiser reporting r t t v are you until next time tonight are saying.