max kaiser a welcome to the kaiser report george osborne chancellor of the exchequer you know the stuff of nightmares economically physically and literally yes georgie porgie you got fat bubble and fraud by and now you're scaring the population to death stacey yes max i find this an interesting headline to start as we have a obama reelected to the white house and you know in america it's very partisan and

every side claims to be terrified of the other side's president winning but here people know you look at the treasury nobody in america is afraid of timothy geitner other than a few people in our audience so u.k. finance minister tops british nightmares finance minister george osborne is the public figure that most often appears in british nightmares a recent study has found gordon brown is number two max why that nightmare at number eleven downing street next door to number ten downing street where the chancellor hangs out this could be a fantastic horror film to do it as a tax dodge right here in the u.k. you make a really lousy film of george osborne play himself in this film and give the people of legitimate nightmare because i understand also that watching scary movies as you can a way to lose weight and obesity here like elsewhere is a problem so you can kill two birds with one stone give the people exorcism away from the chancellor while losing weight at the same time. what

a great deal. when the med who is the spokeswoman for a travelodge said suffering from nightmares that involve the chancellor money and losing a job are a true reflection of how the credit crunch and the double dip recession has affected our well being as well as our money of budgetary chainsaw massacre people are there eating old beings out of a can having nightmares about george osborne karen are you just going to sit there and let this must devour their crotches just of your nation. they mention a double dip recession apparently is about to go into a triple dip recession it will be triple georgie porgie into the triple dip recession. is going to turn into a real horror film so people are afraid everywhere around the world they're afraid of the politicians they're afraid now of the treasury department here is a headline regarding this remarks and current developments in europe this is from dr andrea mac's a member of the executive board of the deutsche

a buddhist bank and again here's the bank again coming out with a statement about the silly desire to see the german gold reserves he says please let me comment on the bizarre public discussion we are currently facing in germany on the safety of our gold deposits outside germany a discussion which is driven by irrational fears it's not irrational fear as like leading up to the election. romney had an eight percent chance of winning all of the intelligent polling and statisticians had a bomoh winning with a ninety percent plus chance and yet people thought that this was an irrational position because they're unwilling to look at the blindingly obvious staring them in the face germany your gold is gone what are you going to do about it because you don't got it no more or you get all of these politicians talk to weigh into giving yourselves a half. make gold position you must act. well in the first story here is

a woman from travel lodge who is able to see that her clients are having nightmares about george staying at their motels and she's able to see that people are suffering from nightmares because of the state of the economy and the state of our money she says so here's a central banker who is one of the targets he's the next in line behind george osborne people and he's trying to say it's irrational fears like the german population are children and babies and should be patted on the back by mommy and told that all is ok or gold is fine but he then goes on to say you can be assured that we are confident that our gold is in safe hands with with you and he's referring he's actually talking to the head of the new york federal reserve bank here he's saying we're we're confident and safe with you and then he goes the days in which hollywood germans such as garrett for obama better known as goldfinger and

east german terrorist simon gruber masterminded gold heists in u.s. vaults are long gone nobody can seriously imagine scenarios like these which are reminiscent of a james bond movie with goldfinger playing the role of a us fed accounting clerk well it's something else interesting that people are starting to wake up about germany it was confirmed in today's editorial in the paper is that germany during this so-called crisis that they have remarkably benefited from here in the eurozone is cozying up to china russia i've made this prediction for a couple years now that germany will align themselves with that group of countries and a bit to become the sole superpower in the united states unfortunately when they come to impose themselves as the fourth reich they'll be missing something very important and that is sixty percent of their goal. here is an image that was sent apparently to the buddhist bank in response to their claim that all. gold is safe

and this is as you see ben bernanke protecting their gold that's in the new york federal reserve bank and their pile of gold. is the journey to go to central bank in new york. where there are gold right there were surrounding the players washington commission of other dogs you know government. funds you couldn't. go that's what you got to germany get real. i think is william dudley that's the president of the new york fed now. so headline reads max about that gold stored in flood prone lower manhattan max this is from business week and they know that a lot of buildings in lower manhattan were destroyed due to the flooding from hurricane sandy and they ask what about the nearly fifteen million pounds of gold bricks stored at the new york fed well they say it's ok because it's in a vault which is protected by an air tight and water tight seal created by lowering

a ninety tons steel cylinder just three eighths of an inch into a one hundred forty ton steel and concrete frame in effect quote similar to pushing a cork down into a bottle. like. dr evil like no but the gold is not going to be damaged by water wind or rain that's one of the great things about gold however something else was damaged. yet what will move on to that in a second max but i want to say here is a new york federal reserve bank part of the federal reserve bank system and ben bernanke in testimony to congress said that. the federal reserve banks and central banks around the world only hold gold as a matter of tradition so why go through this elaborate. sort of security system must be millions and millions and millions and billions of dollars of a ninety ton steel cylinder three inch thick with one hundred forty ton steel and

concrete frame it's just tradition exactly because bernanke he is speaking out of both sides of his mouth these are deployed as nightmarish ghoulish it is but the fact is that going forward gold is the only thing that's going to keep the economies afloat and that's why there's a mad scramble for gold that's why since two thousand and nine central banks for the first time in thirty years ben buyers met buyers all of golden state and i make the following prediction when the paper apocalypse hits you will find central banks printing money not to buy bonds but to buy gold that's one gold bricks out to ten thousand dollars an ounce that's when the global market collapses that's when we have a new paradigm shift that's when we're going to really see some excitement. so here is a picture that accompany this story as you see it's lots of gold from the new york federal reserve bank they say that's fifteen million pounds of gold that they say is tradition and yet they went through all these elaborate security measures to

make sure it was safe from water we all know gold will not dissolve in water unless it's a new york federal reserve bank maybe who knows so let's move on to another paper apocalypse that happened down in lower manhattan did hurricane sandy cause thirty six point five trillion in damage this is from the automatic earth dot com and they noticed that a vault in lower manhattan was flooded last week it was not waterproof and it contained thirteen point two trillion dollars worth in paper certificates one point three million of it so the vault in question max is belongs to depository trust and clearing corp or d.t.c. see a clearing house for wall street firms owned by wall street firms right in the amazing part is you mention thirty trillion or so on paper and washed away by the storm that's not even one percent of the global derivatives market number one number two

you've got this incredible scourge of naked short selling that is gobbled up wealth around the world that is to say banks counterfeiting securities and naked short sellers to push the price of things like gold and silver down that the way they do it and it's something called failure to deliver now if you've got thirty trillion of paper which is magically missing well they're going to fail to deliver on that train and so this is going to be like life masters greatest con ever because as she's pummeling the price of silver with those naked short selling kind of fighting over there j.p. morgan in london you can just claim well the papers missing it got washed away and meanwhile germany will be looking for gold and the u.s. will say no the water dissolved gold but we'll give you this paper and since then. ah. well actually as a largely from the automatic earth dot com points out the d.t.c. see again which is owned by the wall street banks which also owns a new york fed where they spent a huge amount of money to protect some traditional gold and they spend no money as

you see i'll show you an image of the d.c.c. building you see is huge tall fifty five stories somehow the paper thirteen point two trillion of the thirty five trillion apparently washed away that paper washed away but largely points out that d.t.c. has been for years trying to get all the wall street banks to dean materialize not ask for the collection of the actual paper now they break down from the automatic earth is about the paper they're the thirteen point trillion if you divide it into one point three million pieces of paper that would have equal about ten million in stock value in each certificate so however because of this disaster the d.t.c. c. has said that quote it has suspended processing of physical certificates for an indefinite period so they're trying to say that everybody should just collect it electronically and trust us we're not bond villains. clearly because of the flood

was j.p. morgan goldman i mean look at goldman sachs they had like three hundred ready for the event they were all lloyd blankfein was at the top floor of goldman sachs. so you know your search will never have to be covered so not only did it cause nine eleven but these banks also caused the great flood of oh well that brings me to this final little thing because you mentioned goldman sachs they were the only ones that had their lights on in downtown new york a lot of people of course don't realize that was lloyd blankfein bald head exactly well that brings me to the top of the show because we talked about the nightmares everybody here is having a nightmare about george osborne well for the last month i will admit that i've been having this nightmare after reading this headline greg smith i saw lloyd blankfein naked i think he was talking physically naked not naked. short talk about coming up short all right say sarah thanks so much for being the report thank you but all right stay tuned for the second app i'll be talking to that legendary trouble maker ned naylor leyland.

technology innovation. developments around. the future are covered. mission. critical three. three. three. three. three. three both closing video for your media project free media. dot com. the song choice. i shoot to school.

on faith. is the truth. the most reliable of the twentieth century. kaiser welcome back to the kaiser report timed out of turn to ned naylor leyland. asset management ned welcome back to the kaiser report thank you max nice to be

here ned we've got to ask you about germany the biggest story of the past few months german gold but his bank called the story bizarre absurd crazy this is a story about basically having sixty percent of their gold in new york a lot of people suggest it's been sold they are testing the grizzly against this what's your take well it's a great. story and as much as i think you know those of us on this side of the fence to be watching it for a long time repatriation of gold reserves i think the way that i see it more than anything is in the context of history which is that clearly central banks didn't post there is new york london in the past. for the same reason that there are now in other words the you know the what was a very different place pre world war two and post world war two and then once the nixon closed the gold window we entered a different world and of course the relationship with the central bank was of changed significantly at that point and that's the way i see it is. using the

lobster pot analogy now you having invested yourself well know the loeb support analogy being you don't want to be getting invested in things where it's easy to get in and difficult to get out and i see central banks foreign cars the gold reserves is a golden lobster pots the sort of ultimate worst case lopes the point best whereby they went in with the gold and it's only now they look around and go wait a minute how do we get out and i just think you know when you when you think about jobs about investments generally it's the most illiquid in smallest thing you tend to invest in but here it's the exact opposite and it's the ultimate great big golden globe support for the american listeners that would be the roach motel investment where your check in but you don't check out that since two thousand and nine or going back before two thousand and seven before the crisis hit reality and then it blew up in two thousand and eight attitude towards gold by central banks was that it's a relic of the past a barbaric relic of the past to quote keynes and they really were anti gold they're selling goal then the crisis then in two thousand and they start becoming that

buyers and i'm told now other repatriating gold central banks like mexico their gold positions up two thousand percent korea's gold position up enormously five hundred tons of gold bought by central banks in the first half of this year another five percent of times bought the second half they seem to go completely against this notion put forth. or by ben bernanke the call is just a trick and people collect it doesn't really matter well you look at what i do not what i say is the answer to that absolutely and in fact actually you can make the argument that central banks now have a double bed in the market because they're bidding for themselves and they're also bidding to to buy physical and always deliver it for these very repatriation requests because you've got to realize that they're not able to on wind the chain of leasing and swapping in order to deliver balls and within the cost so your systems only mention leasing their first second lot of people speculating that germany's gold has been leased out into the market these of bullion banks this is a trick that central banks and bankers use to feather the nest of investment bank

that telegraph to the market that they're going to change their lease rates to borrow to sell gold knowing that the price will fall and that these banks can scalp a few bucks from the market on the lower price using a short sell are we now in a position where perhaps all this monkeying around with leasing etc were all germany ever see it's gold that's that's the question or is it gone. i think it's likely to see some gold if it's going to repatriate in fifty ton chunks which is what we're talking about i think it's likely to see the sea go whether it's there's a was or where it comes from i think it's like a different point but yeah sure i mean the investment banks have been involved the album a system as we've discussed before is a highly leveraged on the ticket system and really the way i see it is the central banks of sort of followed in with that whole concept of leverage which is why they've also been involved aggressively in leasing and swapping and as i'm sure you're aware they account for is gold and gold receivables meaning that it is one

great big pot of gold trading as opposed to actual physical relocation of gold bars ok let's go back to the bonus bank for a second and they recently did admit that they repatriated over nine hundred from london between two thousand and two thousand and nine do you think gordon brown's men had just. sale of u.k. gold back in the day when he sold three hundred tons at the historic low bottom of the island fifty dollars an ounce scared scared them rather scared the germans into repatriating gold mines going on well i mean ultimately what we know is what we don't know because the fact the whole thing is completely opaque so the fact the central banks don't give us any information about gold reserves or really very very little is what leads us to speculate as to what might or might not have taken place and what i would say is very interesting this point about repatriation of london based reserves because i know myself back in i think three i met with mccune who's the ex chairman or c.e.o. of gold corp in the u.s.

not the second great poet popular in the one nine hundred sixty. point goldcorp much against the trend russia holding physical gold of cash which was very contrary at the time hence why i was interested in i met him and spoke with him and i asked him whether or not. he had a view on the u.k. selling its gold reserves and he said yes he was very interested by this new fact he had got involved in the auction process because coke were in the in the market for decent amounts of physical treasury and he actually beat for some of that gold during the auction process and despite the fact he puts a very generous bid in heating allocated anything she was somewhat surprised by so if we take that speculation a little further and use does the base case it would it would appear that potentially leasing and swapping custody deal chain of problems was already there back then and when the when the bank for that go back from london potentially

london were in a situation where do we find the physical to deliver against this now you know ok well we are in speculating what may or may not happen but there are a lot of moving policies a very interesting story and i expect more to come out of it as more people come interested in it but you mention the chain of ownership and all of the byzantine relationships like i want between i popped the question really at publication lazing in the first half of the show today and we talked about thirteen trillion dollars of stock certificates washing away in hurricane sandy and now according to automatic or at the very popular website it will cost more than two hundred billion to replace those certificates. that seems like a long ball figure first of all and let's say germany in fact had to go the open market replace that goal we're talking about quite a sum of money yes well yes but i mean they wouldn't have to go to sleep it would be them it would be the. paris or wherever it would be the ones that be doing the

buying on their behalf because clearly they have the chip as my gold but they go find it i don't know what's also fun and potentially slightly amusing about it is the fact the hugo chavez led the lead the way with this movement by recognizing some of the structural issues with the global economy and actually moving against it and i think you know he probably needs to be. a little bit of credit for making the subjects a bit more. broadly understood and i think one thing i will say max is it's very interesting the germans on likely to go now i feel you know a dog with bone and one would hope that the story will be pushed forward by the germans and despite the language of the bring this point which is pretty bizarre they use the word bizarre and and crazy and all this sort of language which to me suggests they're a bit nervous but we're not going to let go of it now you know we were there and they told us in person face to face that the gold was not there was a new york and that was a revelation and now they're trying to downplay it as if well of course it's a new york but it's safe what the which is not safe at all now finally ned let's

talk about your correspondence with bart shelton of the sea f.t.c. regarding his alleged investigation interests over price manipulation the f.t.c. ran a front page piece saying the investigation would be dropped bart denied this you know for the soberer enthusiastic out there in the audience the silver liberation army. and you're one of the generals of the s.l.a. what's happening well i've had ongoing corresponds to mr chilton i mean one thing i'll say about him is he is quick to respond to questions which is to his credit or lazy just in marketing in other words my experience with part going back a few years is that he's on the marketing side of the business he doesn't actually know what's going on well i would potentially agree with you on that one but i would just say that you know to give him some credit he does respond you're not you don't send e-mails into a black been a never get reply to there is an attempt to deal with not a blonde in maybe i am partial to and i'm do you part marketing for the see have to

see but i think i think in the background there are things going on and i think a lot more evidence is being compiled behind the original investigation that took place in eighty three years ago. and i think you know there's no doubt the season is in a serious corner the fact they came. out straight off that f.t.l. it's cool and you know i did and said that's not right suggest they have to be sitting on some fairly substantial evidence otherwise they wouldn't be so quick to jump back and go no it's not being dropped so to me it's just a function of how it takes them to actually speak or whether or not some of the evidence comes on the public before they choose to speak up ok so about it going on for three hours let me ask you ned what was the total so over production from all the miners approximately last year i think it was sort of seven hundred fifty million ounces ok at one point i think was last week or the week before in one single day from one single bank how much so over suddenly showed up on the marketplace smashing the price down

a couple well i think the number that was down around was sort of two hundred million ounces or thereabouts in a short time frame i mean this is not ok john i mean it's of course you know this is this is this is an unacceptable degree of. depression says the vailable physical i think we accept that right now apple computer by the has roughly a billion shares of stock ok so what would happen if somebody showed up with a quarter of a billion hundred fifty million three hundred million shares of apple to sell at the market what happened apple stock well it would crash i think it's a these are you know there are differences one is that one of the one is you know there's a there's a chain of ownership or apple stock but there's no chain of ownership for the futures contract that park chilton is overseeing it to see if the see through naked short selling reserve the j.p. morgan of life masters to smash the price of that silver only for the effect of supporting the dollar and creating mayhem in the markets no different except it accepted there is there is an enormous amount of truth in that they're all sort of some differences between apple and the truth is true that you can't there's no gradation of truth is that can sense an enormous amount of truth it's black and

white they're committing fraud that's the fact now who's going to stop and park shelton the blonde non regulator who gives great lip service but does nothing gary gensler the former goldman sachs guy who sits around says nothing but you know pays with pain a lot of money and who knows what else is involved with what's going to twenty going to take what what is it going to. stark honesty in that market will answer the answer is the market will do it max it won't be it won't come from the regulate so i think it's pretty clear now that we would have had back from the regulators by now if we were going to get it from them so i think we can say with confidence we don't going to get a big announcement all fiction from the c.f. suit however what i do think is that sufficient information is made public for for instance hedge funds to have a look at that i think they're going to jump they're going to move the price themselves and that's how it will come about that's my view i personally think that's actually said i think it won't be i think it will come through people investors waking up and wanting to be in and the products role a regulator a decision what's the hedge funds current position and silver and gold are they not

long are they building are they well i think it's changed overnight because i think the way in hope and more of the same. they're going to be more willing to play reflation retrain to go into that just briefly thirty seconds a bomb has been reelected ben bernanke he stays in place more of the same effect on gold and silver is what it should be very beneficial because usually second term presidents spend a lot of money in the first year and a half they try to put their programs through so i think that's why the market perspective on it all right fair enough now and then the leyland asset management thanks so much for being. a report my pleasure max that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert and we thank my guests ned naylor leyland we've got to say i mean email please do kaiser reported r t t v dot are you and don't forget to follow me on twitter so next time.

you know sometimes you see a story and it seems. you think you understand it and then you glimpse something else you hear or see some other part of it and realize that everything you thought you knew you don't know. i'm tom harvey welcome to the big issue. was.

was a and was. a a. clue.