continues the meantime max kaiser and co-host stacy herbert discuss european gold was and the brokers at the chicago board of trade telling others to get a job despite not doing their own it's all in the cause report next on r.t. . 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 her yes indeed max keiser david cameron gets s t f used by max kaiser and to a lot of 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 will pay for what you have done s. t. u. s. t. f. you david cameron because you're completely off base here you are a total product and

a leave this school banking shmucks here it's blatantly obvious that your own bankers are financially we your people who write oh they're government then i'll be in london soon enough you know i just got back from ireland are doing a world tour to visit all the hot spots around the world has me push back against the criminal banking class warming up for the great inquisition part numerous double o. twelve yeah well the put their heads on spikes looking forward through it what else . reeking of the global financial name computes they of course were meeting down a nice last week and one of the talks to emerge was in this next headline bundesbank central bank reserves will not help fund the f s f so g twenty leaders in cannes discussed 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 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 up you realize that all of the banks are insolvent but the counter party 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 in 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 where the germans gold he said we know this plan and we

reject it good luck good luck rejecting it sixty percent tell the new york and you're not allowed to have a military after we crushed you after world war two so good luck with that germany luck block well clark 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 don't do it german people hold on to your gold gold value the u.s. dollar no value it's the currency. hold on to german people as you see max nobody was listening to you they should have no 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 soar 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 spiked right now on go to 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 bank's balance sheet that will require another bailout in ireland and more austerity measures speaking of arlen stacey i was just in limerick at limerick university they gave me this award the limerick university debating team this is for contributions to financial journalism one of the say stacey 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 made apparently to the art of discourse and debating is my use of props if that's true 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 the store the paper 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 of feces. now regarding italy max 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 call. times he's involved with the phone transcripts from his conversation with a journalist said that he had called german chancellor angela merkel. will lard. 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 that europe is now in a war and they're conducting a currency war and germany can all was pull out of the euro completely but it'll be a reunified germany were three thousand tons of gold oh yeah that's right that's

the whole point of it was well speaking of the gold ok now angela merkel's party suggested italian gold sale raised by c d u lawmaker ryan nish 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 again over and over we see this brought up in this european debt crisis somebody should get rid of their gold and now they're trying to use this as a weapon their excusing each other that they have to get rid of their gold get take his gold take their gold but italy has twenty seven hundred tons of gold it's a really big position and i make this prediction china never really came to the aid of grace they have not come to the aid of anyone in the aero zone but they will come to the aid of italy in exchange for gold i make that prediction but before we're on next week that will be definitely in play china

a italy for gold according to the c m b c chart from september italy's gold reserves with the fourth largest in the world they held two thousand seven hundred one to. suns 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 revalued to between twenty five thousand and thirty thousand dollars an ounce to clear their debts completely and i think that's something that you and and democrats have come up with as a number. that's where gold is headed to clear the global debts is going to be north of twenty 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 mcdonald's applications on occupy chicago protesters so last week in the middle of an occupy chicago teachin traders at 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 on wikipedia and they say it was established in eight hundred 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 no 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 at the. roger the frame that goes on every single day the leg the lawbreaking that goes on but the c.m.a. for it's told more about this is really shocking well 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 auditing its clearing members such as m.f. global under its authority as a self regulating organization 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 well when you do 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 onto a 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 derivatives market in the world they are responsible more than almost anybody else for the global financial crisis that we see before us. yeah but it's going question is where can i go to start an insurrection i mean as a chicago is it grace i'm thinking belfast because you know they're 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 to your town soon he's going to declare this in parliament we need to 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 stay sara thanks so much for bringing on the kaiser report thank you max don't go away after the break i'll be talking with currency wars writer james

records. discoveries. communicate with the wind. and become. nature can give you. i am x. times or welcome back to the kaiser report don't walk run to your nearest candle

and pick up a copy of this book currency wars this is the result of stone of the entire financial situation. don't be read this book let's talk to the author james g. records jam welcome to the kaiser report thank you max thanks for inviting me all right jim 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 then all at once somebody has got to win the somebody has got to lose right now by the way the the big loser is

europe because the euro is done is very strong well people are surprised that they've heard their europe's 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 want 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 to strong euro you're going to get. strong euro and germany is on board with that so that really explains that cannot you but at 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 against gold so that's where these things and 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 right the easiest way to think of it this is the i.m.f. printing press the fed has a printing press they crank out dollars the e.c.b. is a printing press they crank out euro's and known to very few people the i.m.f. as a printing press and they crank out s.t.r. s.

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 a 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 d r's which is another currency global currency now in response to the suggestion about the selling or collateral zation of germany's gold germany countered with a suggestion that instead they suggest that italy should sell their gold to pay down the debt now of course italy's got a big gold position in all of this just of 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 strategist study of the world of oil space this who's got

the oil who needs the oil where the chokepoints like the straits of hormuz how is it shipped to cetera well think of the world in gold space and ask yourself who has the gold who needs the gold and where's it 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 to. 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 to me the problem with all this 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 wake your book in the first couple of 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 emacs that is the first two chapters of the book is the first ever financial word game conducted by the pentagon of 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 in 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 bombers and fabulous invasions but no one knew how to use stock spawns of derivatives to fight a war so the rules were you could not use and the kinetic weapons means nothing that would shoot. 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 the hedge funds all lumped in together and then there 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 were you trying to trying to help america by showing the vulnerabilities of america's that's what we did and i actually cooked up a little plot with a friend of mine who was on the russia team and china and russia combined forces and combined 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 always you must pay us in this new gold bar currency that we sponsor as a way to kind of get the united states to think hard about the vulnerabilities of the dollar is 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 the special drawing right before

they go to gold and then gold is the last resort walk us through that jim sure i mean the thing is central banks and the international monetary elite represented by the g. twenty leaders the i.m.f. and then the central bank has the finance ministers around the world just to be clear they hate gold now they have it you know the u.s. has not sold any gold since one nine hundred eighty europe's been holding on to the gold so the people with gold are hanging on to it but. they actually hated they would prefer free are currency because they can manipulate expectations they can manipulate 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 in new adiz 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 and when they get over in debt 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 hall 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 it sounds like a big 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 f.d.r.'s 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 that's was the nickname for them when they came out they were called paper go 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 lose confidence across the board at that point they will go to gold not because they want to but because they have to right and in the book currency wars by james j.

records there's also some great analysis of 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 and if you bring in an n.s.t. are for example you try to roll up all the existing debt 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 cover 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 we're working on a piece called the you know the ten the ten things that everybody believes about gold they were not true in other words there are so many sort of false swords or can ours are sort of cliche responses from the anti 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 nine hundred five in one nine hundred twenty 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 on to the gold standard now whiston churchill insisted that they go back at the pre world war one price which was about twenty dollars and sixty seven cents and now it's in u.s. dollars and four pounds a little more than four pounds in terms of u.k. sterling i felt 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 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 who were destroyed it glibly 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 instead of twenty dollars an ounce that might have been mildly inflationary and we might have avoided the. great depression now ever since economists have disparaged gold and marginalise gold so we'll look at the one nine hundred twenty s. you can see it failed well it did fail in the one nine hundred twenty s. 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 over a certain value max i've got the low end about three thousand dollars announced at the high end 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 do you use them zero do you use and one do you use them to do you use all the gold the world or 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 important 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 report with me max kaiser and stacy herbert and one thing my guest james g. records to book is called currency wars you can follow mr rickard on twitter james g. records as well pick up this book and they can follow me on twitter account as a report or on facebook and you can send me an e-mail at kaiser reporting r t t v are you until next time this is max keiser saying.

signed sealed and delivered to russia's access into the world trade organization is finally agreed to eighteen years in the making for me in geneva in just a moment. the greek economic still may now in the hands of a technocrat pathans names former banker and european central bank vice president lucas papademos the country's interim prime minister. israel could launch military action against iran soon as christmas according to british intelligence chiefs the statement follows the un atomic watchdog report claiming tehran is building nuclear weapons. two am in moscow.