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i am ask eyes or this is the kaiser report you know we live in a time of extremes extreme inequality instability volatility extreme debt really hypothecation finance reform occasion monetary dent generation or so paul has gone all johnny rotten yes the former fed chairman paul volcker the scallop discussing q.e. to infinity and this is what he had to say. that's right he was given the two fingered salute the big bearded ben bernanke oh as they say over. access also known as the heart of recently after the tongues of the last scotland and the headline that goes with this q e three will not fix america's problems warns paul volcker paul volcker the former federal reserve chairman credited with taming the inflationary threat of the one nine hundred seventy s. has warned that further quantitative easing will fail to prepare economies in

europe and the u.s. well why i am a federal reserve bank which is the lender of last resort responsible for taking the punch bowl away when the party gets to rot is not do their job instead of being the lender of last resort there's a buyer a first resort they buy every schlock piece of junk bond that these investment banks that used to destroy the economy they'll take it there are buyers and very garbage bond out there and this was to be the buyer of first resort just went through the lender of last resort think completely screwed this thing up they got it all backwards and paul volcker of course back in the seventy's early eighty's he took interest rates up to sixteen percent to squeeze out. these no good mix well to cover out all of this fraud max remember at the beginning of this crisis we were told it's a liquidity crisis it's a little quickly the crisis if we only had more cash in the system all would be fine right well he said there is so much liquidity in the market the adding more is

not going to change the economy that does nothing to do to create wealth right because the whole idea of a free market capitalist economy is that it goes through booms and bust you want the booms and busts you want to have the market figure out which of the winners and which are the losers and you go through these cycles that's if you don't have the cycles what you have is one perpetual all mom not news guru just shut down the fed because they do more harm than good basically. well he said it was the most extreme easing of monetary policy he could recall and that's why you see the image of him essentially flipping the bird and this is the telegraph a very conservative newspaper here that put that photo on their website and didn't mention that in the u.k. that image looks very much like a harvey smith or the tongs as they call it in. that this is the flipping the bird no move large fortunes you just pulled on his pants in the show mrs jewkes.

coming to the. polls. like to see paul volcker but ben bernanke you know. just my quantitative easing ben. well in germany they're also having a very difficult time responding to this madness and the central banks around the world of course yen divider min he called this bond an asset buying he called it what he called it the devil's work well germany eyes gold standard this is a report by do each a bank cold gold adjusting zero they say we are in a time that is quote zero for growth yield velocity and confidence we believe that there are nearly zero real options available to global policymakers the world needs growth and is willing to go to extraordinary lengths to get it to

patients dead you know those doctor shows are there due in part massage and then the doctor says. right now it's just a global economy it's dead it doesn't it's in a coma dissolving it's japan but no global the banks are completely comatose policymakers are smoking crack the wall street bankers are high on meth amphetamine they they're completely. entered into a period of utter and. social experimentation where were the guinea pigs and they're trying to concoct a freight to market world where their monstrosity quantitative easing experiments in alternative money universes are stalking the country and or big people's arms out of salt injected they're going to inject brasil's that's the only conclusion you can come up with at this point he's like that coney twenty twelve gun you should be on the pavement slapping islam but it does make it challenges but

depending on the guy is a complete madness. well it could account for paul volcker saying it's extreme monetary policy or deutsche bank saying it's extraordinary i mean these are words that you often associate with people running around miami in the police say it was extraordinary we've never seen somebody with such extreme psychosis it's a low speed car chase remember the o.j. simpson they were going in the white bronco like twenty miles an hour just a global economy there is a there's ben bernanke you talking in there everyone is like a slow speed car chase drawing of you know this guy ben bernanke who all you also say is i'm not sure exactly what i'm talking about except that i'm i'm convinced that printing more money is the answer and so he just blows it out the windows and people go well you know oh yeah i can use this to collateralize when i jump. yeah it's a slow speed car chase but because as you say he's on bath salts he's injected bath

salts into the banking system into the monetary system he thinks he's going like five hundred miles per hour like well going so fast right he's slowly crashing i think global economy well don't you bank of courses will go the way but all these other big money center banks are to big to fail banks are technically insolvent their liabilities are ten times greater than the equity their resale value was zero they've got nothing but a cartridge toner full of ink back there to crank out. counterfeit collateralized debt obligations and other derivatives there's nothing there there's nothing but a bunch of absence on a wheel spinning around to drive the energy of a printing press well in the meantime they're forecasting that the dollar will essentially plummet in the first half of two thousand and thirteen to less than a two thousand of an ounce of gold oh yeah they're all all the paper currencies are going to collapse against gold this has been the story for ten years it'll be the story for the next ten years and the people who are going to survive this

catastrophe of course are the people with the goal to and they're quite correct in pointing that out. now they also note that we're seeing a lot of people mention the gold standard you're seeing it all over the place even the g.o.p. put it on their platform so they think however that there's no way that we'll ever see a gold standard certainly not in the sort of times because they said quote the world has over the past century morphed into a highly integrated government dominated system guided by conventional wisdom my group think the self-reliant individual ism of the free market has been left behind in favor of a new age of coddled consumerism that's true however we are already in a new era of a gold and silver standard as people around the world are using gold and silver as a medium of exchange and alternative currencies like the bristol pound are are being introduced into the system the bitcoin is being introduced into the system

these are alternative currencies that will take the place of money we're already entering so this is where they're wrong because we're already entering into a post if you had money world we're already having it we already have the gold standard people already use gold and silver to do business actually since you mention that i want to tell the audience that will be covering the bristol power going to talk to somebody from bristol involved with this and we're also going to talk to james turk in the studio here we haven't spoken to him in a while on screen and he is actually runs gold money dot com but he's covering. sounds a bit korean as a possible alternative currency that people are already using a gold standard through science like kids where you can be using gold essentially to settle claims so i also want to look at some of these headlines here so where in the u.k. of course and this goes with the headline that we're in a coddled consumerist society the baby boomers are all retiring this is why a part of the reason i think why you had so much fraud is to sustain their

lifestyles and nick clegg is saying who's been in the news every single day here making some mistake or are there some flub struggling to buy a home dip into your parents' pensions says clegg all right well this is a very important story because as we've been covering on this you know the pension accounts the savers the backbone of the capital society are getting screwed with a ninety percent tax in the form of artificially depress interest rates thanks to mervyn king the bank of england and bernanke you know the central bankers around the world when they artificially bring down rates to zero near zero zero zero interest rate policy there it's like giving the savers of the world the people who actually are the backbone of the system and ninety percent tax hike now he's saying not only did we increase taxes by ninety percent live clegg over here in the coalition running the government right behind me can see the towers and all the more flora and fauna of this wicked government they are going into directly you

know it's like m.f. global they went right into the account to steal money for jamie diamond j.p. morgan and they stole it from customer segregated money was a new unprecedented ripoff here nick clegg is saying go into granny's account go to grandpa's account just take that money put it down on this overpriced housing market where you while if they let the free market do this job look at housing reflect the true supply and demand her the prices would come down to the point where people could participate in them are. it but instead they're going to continue. by stealing money from granny and grandpa and this is a policy. geriatric genocide don't want to get rid of that generation completely what is what's what's not clear going to do it is going to go down the street is going to trafalgar square or we're just put a gun to grandma said to give me a bunch of money on a blogger for the medal of thanks nick clegg your real current conservative your real nice guy. well speaking of grannies and hands you were talking about putting

the hand in m.f. global's money the queen loses her hand washer peter peter how ison crawford the washer of the sovereign hands dies the age of eighty two so the post must now be filled it's going to be by the descendants of this guy so if you're looking to apply for this job you were hoping for a gig i thought think of the foot washing up promotion but i think for most of what was your job and washer it was somebody from the what was it becomes a foot washer in the foot washer becomes a hand washer in the man water becomes the face washer is not the way it works over their house well he always had a silver you were bull and solver holding a linen towel on permanent standby but i thought this was a good sort of entrepreneurial market to enter because you know all these oligarchs who live here in london in the city of london where wealth around the world is plundered of course that's how the queen herself has which money she used to be the head of an empire right wingers a single goal we should use a paper money gold queen's dildo she knows the value of gold and silver it's all

over the jewels gold silver you see the quote me she's got her face on the paper money that the big joke is on. the silver you know of my face on the piece of paper just about right as a parent do you british people going to wake up to the. well you know many of these oligarchs look to live like royalty so perhaps they all have many of them have butlers and nannies and all these. her maids in their house but do they have hand washers well they probably have had washers in there in their world of course is called cookers. because they cook the books don't think and they get the urge to hand washing over their k p m g a pricewaterhouse coopers and i needed a washer thank you very much to learn snooty put. it in the day it's all comes out in the wash what was there was more than

a washer to football sure the bit washer only the queen knows. stacy ever thanks much for being on the kaiser report thank you max all right stay tuned for the second at gray's going to get her head blown off. now we're talking to dad lunch lecture author of paper money collapse don't go away once more coming away. we've. blown through the. really the chivalrous swimming bird you can catch both of the

premier maritime deviation show of the summer check out a whole family of russian engineering feats of the let ships truly fly or just go with the fluid intake in the view of the bay below but hold on there could be turbulence on board the plane it's only jet powered in p.b.'s planes are ready to tear that up of the world's most potent choppered and you've got to bring in the fleet technology i'm doing here on a launch we've done the future of coverage. welcome back to the kaiser report imax guys are time now to turn to dead legislator author

of paper money collapsed i'd love welcome back to the kaiser report glad to be here all right good live since we last book central banks around the western world have gone out full kerry kerry paul volcker told the audience this column that q e three is the most extreme monetary policy he's ever seen and it won't work your thoughts . yes i think it's very extreme and i don't think it will work i think the. the benefit you get from these kind of policies short lived anyway i mean you can just give the short term stimulus encourage a bit of extra credit expansion in the economy but we've been running these policies on and off for forty years and obviously extreme measures quantitative easing for the last five so you get these short acid rallies you get a bit of a net but equity market for a while. government can borrow money very cheaply for the last five years but it will not lead to a lost economic self-sustaining economic recovery so the fed is saying we're going

to forty billion dollars worth of mortgage backed securities these are securities that are tied to mortgages that are tied to securities that have a derivative notional quantitative quantum quantum knowledge based on an algorithm also and actually just paying off the mortgages why not just pay off the mortgages in the real economy for real people instead of going through this rather circuitous route to pay off a derivative based on a concept based on a mortgage based on a theory why why that why not just go direct. it's a good question i mean i mean you quote we are to it's sort of like well obviously i mean you know printing the money and getting it directly in circulation you know is going to have. inflationary impact impact also think that the fed would then be in a very strange position of picking certain debt that it would just pay off with the printing press and you would then come to the point where the white house inserted that mortgage debt so they're saying you know we're going to buy back mortgage debt

why not just forgive the forget the mortgages with them for giving it right i mean they're buying it to artificially boost the price of the mortgages and lower the interest rate so i try each more you know mortgage boring you know they want to stimulate more you know more mortgage lending and boring but it is just other stimulating more more mortgage borrowing are they stimulating more derivatives creation other words like them buying back these fake securities and putting it on the balance of the fed they're encouraging this fake one. at this potential market this extend and pretend they're encouraging the false of the false market going forward i mean i'm quite sure if it's fair to say that sort of these mortgage backed securities affords securities the one step buying back the mortgage backed securities but i think in terms of. i think that the fed does not want to just simply pay off certain loans for certain people so so so they're trying to manipulate or they would say guide the market guide you'll slow and encourage therefore sort of more mortgage lending and boring to help the housing market but i

think you're right i think one of the many side effects of that type of policy is that it encourages other sorts of risk taking in the financial markets because you saw in place in financial markets will now know that there is a built in support potentially unlimited support from the printing press for certain assets and that will encourage risk taking in other parts of the of the financial system i don't think derivatives are necessarily a bad thing i think even if we still had a gold standard and therefore probably a much smaller financial industry in a much smaller financial sector i think somebody would have had the idea by now to have to they can be sensible economic products but in our economy that is now so overstretched and overextended because of years and decades a very easy monetary policy i think you know these things have just become too big you know let me ask you a question now i'm going to go three economy simultaneously and it's going to be an interesting broad question you're going to talk about the u.s. europe and here in the u.k. now the head of the bundesbank recently said that draggy is bond buying was the

work of the devil we're seeing growing split between the business bank and the e.c.b. and if so where does that leave europe ok let's just have that one first what's your thought. yeah it's. i think it goes back to your question before where you said you know at what stage will maybe policymakers revisit you know this kind of policy you know i mean the first i like to say is like you mentioned we go to very different places the around the world but policy is brought you the same around the world all the central banks are practically zero interest rate a little damp images to the head of that because you've got the big split that was here in the u.k. they're supporting this austerity measure they're ok with an idea and there you know larry summers wrote a piece in the think of the economist in the f.t. saying how the u.k. policies are failing horribly they need it do what america's doing which is this money printing and that the america's growth is outpacing the u.k. and this is his argument you know he doesn't consider any of the other extenuating

circumstances like the overall economy the society is disintegrating as a result presumably he doesn't live in the actual society he just is in the ivory tower come a king these comments but it contrasts those two approaches it seems that based on what you're saying here is that neither approach is really appropriate neither the u.k.'s approach of austerity without bank reform or the american approach of money printing without bank reform is going to work at first you need to get more structural and look at how the how money is created how it works through the system and more on the systemic. quality of how these things are operating you're yeah i think what the first point to make here is that i don't think there's much of a stair ity in the u.k. i mean it's remarkable thing is if you read the press or follow the disk debate in the media of politics you think that they will be some horrible spending cuts in this country soon spending cuts but last fiscal year the u.k. government ran a budget deficit of eight point six percent or something of g.d.p.

of historic even for the u.k. is a mess of you know budget deficit the us is running at sort of about eight percent so i think i would put it back to larry summers that i think in both countries there's a lot of talk about you know fiscal cliff and austerity. but right now you know the beneficiary of very easy monetary policy and quantitative easing has been the public sector it can borrow and spend and it's still doing that there's a lot of agonizing about cutting back for school your spending but it's actually not happening so there is not much is more talk about a stare at you than there is a stereotype there is a certain places like greece and other places but there's not a policy choice simply bankrupt and a combo money anymore but the countries that still have access to either the printing press or the central bank or financial markets like the u.s. and the u.k. they're spending with both hands now the other point i say so i think of but i think you're right i think we need to. none of these approaches is a very is working right now i will also say with austerity where people try to get

their budget deficit under control is mainly done again by raising taxes rather than by restructuring government spending or the role of government in the economy i think you have this crisis of such a fundamental nature that it will force a complete change in politics at some stage but i don't think we see that happening right now if i may come back to the question of the bundesbank because the bundesbank because of their historical position. they've been also central bank that has constantly expanded its own balance sheet and certainly led to credit expansion but over the life of his existence from one thousand nine hundred eight zero nine hundred ninety nine the bundesbank has done much less than most of these other central banks and therefore has given germany a hard currency which has worked very well for german business so the german population is very concerned about these changes in policy so obviously i mean i'm concerned about all this money printing so and i think it will lead to a major disaster so i'm sympathetic to the bundesbank position the question however

is will that we change the dynamics in europe because it's quite clear that other european countries will run into trouble the german taxpayer will not be willing to foot the bill so the four bank option as in any other location is jeff. central bank printed and the big question is if the book has been can we stop this happening well finally speaking in germany deutsche bank put out a report titled gold adjusting for zero. the bank says we believe there are nearly zero real options available to global poll sea makers so following up on your just saying there none of these policies anywhere are working as advertised you know because we've corrupt the past twenty years the things that may have kind of worked in the past we have kind of flipped over a lot of sense that the the printing the frog the trading the securitization the derivatives themselves have become almost like the cancer that's now taken over the

host to some degree and so they're people are looking at these they're trying to cure a cold but they have cancer you know so i think the two options that policymakers alternately have is i mean the one i said before is to voluntarily stop the printing press and then allow. an end to money creation that would lead to the market pricing interest rates and price and glucose and financial assets according to the really available pool of savings and to really to in line with the economy if you like and stop it and just sooner saying we don't want to save money we do it we hope by i gadgets but it won't you see that's a political problem this will be my next statement like this is this is the one option and you gave already gave the reasons why why i think it's unlikely to happen because no politician wants to come out and say like this easy money will stop and be going to go through some we need tough adjustment nobody will want to say so the other option is to keep printing money you know in europe the spain will

be sidelined in a couple of bone spring people have already resigned so. you know the president will be in the next one. and ultimately because nobody wants to go through these tough choices the central banks will continue to print. and that's why i call my book paper money collapse because i do think the two ways in which feel money system systems of easy paper money have historically always end of this either you make the voluntary turn to hard money you stop printing money and it has been done in the past has been done successfully in the past but it's not easy to do most recently where. you know in in many ways you could say that all those different circumstances but you can say that obviously you know germany bye bye bye that when the doj mark was launched probably the germans were the zimbabwean so if europe you know they had to hyperinflation to currency collapse and what hyperinflation one hundred twenty three so they learn from these mistakes and in one thousand nine hundred eighty you know relatively hard for more money but you know more in history

obviously after the civil war you know the united states was you know on the gold standard and so on a paper standard during the civil war you know mainly paper money systems come about when when you know the state needs money and that historically usually was a time of war so during the civil war america was off gold and they returned an eight hundred seventy nine to gold standard the money supply after they did that the money supply contracted for years in america interesting the the american economy still group now i'm not quite sure given our consumer culture today that would be repeatable today i have my doubts so i think it would be much tougher to do this today but it has been done has been done in britain in one thousand twenty one now i know people will say this has been one hundred two hundred years ago it doesn't apply to all modern society i do believe it will be much harder to go back to some form of hard and stable money today it will be much tougher and today politics are such that nobody wants to do it now not on my watch that's the number one principle of politics these days around the time around the time but thanks so

much for being on the kaiser report thanks so much mike all right that's going to do it for this edition of the kaiser report with me max kaiser stacy over our thank my guests. author of paper money collapse if want to send an email please do so at kaiser report on our t.v. . are you going. to pledge. blemishes scribbler grinning tastes priests or judges

priests arrangements three. priests to priests the old seaboard counseling video for your media projects a free media dog tom. clements . the wrong. color some of. her along with. the a. cold.