this is the kaiser report you know if you show up to a gunfight with a knife chances are you're going to have your guts ripped shut did the street like a dog show up to a currency war with paper like mervyn king or ben bernanke here these other central bank clowns and you'll also be eviscerated gunned down in the street by the gold vigilantes and that's a good thing stacey yes max over the past few weeks we've seen the coming of the showdown at the ok currency corral right you've seen very same d.c. wanted dead or alive essentially against the u.s. dollar right there in the middle of the poster only a little bit a little bit yes one and dead or alive but i mean that metaphorically of course i would never suggest a special bankers would be gunned down and hunted down like dogs and ripped open and have their guts pulled out because of their profit ways i would never suggest that now. in this past week leading up to the g twenty we also had the g. seven they were saying denying that there's

a currency war that of course you need an official denial in order to confirm that it is true. david cameron was asked by some old codger in prime minister questions time about his experience his old guy had lived through the great depression and he said it looks like with all this quantitative easing that we're actually trying to devalue the pound but so is the yes and the japanese yen and america they're all devaluing their currencies now i lived through the great depression of world war two and that led to hot war because it became a trade war then war and here's how david cameron answered. i think what he says is important no one wants to see a string of competitive devaluations always the one happened to sterling. as a result of the very deep recession here was a depreciation i do believe that you depreciate your way to growth in whatever country you are but what you should do is use the benefit when that and there's

a structural change to make sure you increase your competitiveness and that is what britain needs to do well financial illiteracy runs through number ten downing street with david cameron you know central banks are caught be serving two masters they're printing trillions of dollars and yan's and pounds at the same time central banks it's two thousand and nine every verse a forty year trend they're buying massive amounts of gold and these two things are not going to finish together one is going to win one is going to live and the gold market saying the gold market is going to when the bond market now in these countries looks as though it's hit the wall is starting to fall apart and of course he's lying there as if they could take advantage of devaluation everybody is doing it then as well i devalued recently by over thirty percent in the u.k. the pound has pound sterling has fallen by over ten percent against international currencies and yet their export market is up barely point one percent so it hasn't worked for them they showed up to

a global currency war with their feet paper and it hasn't done anything for them right. it's not going to work because you can't have any winners and it's like playing that one rock paper scissors game with everyone has paper you know and they're just all showing paper and of course none of them going going to win except those with a rock winner's case of being not a rock of cocaine like p. diddy with my having this but a rock of gold. so there is the question asked and currency war with a gold standard. this happened on financial times and on bloomberg television they interviewed t.c. w. groups. kumar and bank of new york mellon michael wolff uk they were asked what the risks from currency war were and how to stop it this week omar said that he thought the gold standard if we brought the gold standard back it would end this currency

war and it would be no different to how good it was he said he said it would be as good as it was during one hundred forty five to one nine hundred seventy one we were on an international gold standard post bretton woods the u.s. dollar was backed by gold and international trade and it was good times then he said quote it worked the world was in prosperity there was economic growth and there was clearly certainty in terms of what exchange rates were well i've never been off a gold standard experiment society in seventy one of global free up money trading against each other as shelling and going to go back to what was in place for thousands of years ago standard but i also think it was ninety seventy one when nixon went off the gold standard what it was was the disarming of the population who had to work for a living because you could see that in the charts because i thought well let's look at these charts again because this guy kumar says that this was a time of prosperity and yet the propaganda you hear from the very workers working population people who have to work for a living they'll tell you we can't go back to

a gold standard because that's for the rothschilds in the rockefeller's in the wealthy in the super super wealthy but look at the stars this is the charcoal back to one thousand nine hundred five and it shows you the blue line is the productivity increase in labor units red is the median household income as you see from exactly one nine hundred seventy one. the median household lost their bargaining power and all the productivity gains went to the top they did not go to workers in fact the median household wage went down once we broke from the gold standard because they we discovered right sense going off the gold standard wealth has been accumulated by floating debt and by leverage the average household will borrow ten times their income to buy a house on a mortgage and the rising asset value from the inflation this is caused will give the homeowner a sense of net worth appreciation but the average bank strong wasser of the city of london can borrow a thousand times their income and they get paid based on that multi hundred billion

trillion dollar leverage that they're floating in the game and over the past twenty or thirty years or forty years it's going off the gold standard this is meant hollowing out of the economy to the banks and leaving the poor suckers who can only borrow ten times or income high and dry because the asset values crashed and of course what's happening now is that private equity funds like black rock are buying out all the homeowners in america that went bankrupt during the blast controlled demolition of the economy in two thousand and eight now those people are living like service in their own homes paying rent to black rock black rock of course you know this guy schwartz who runs black rocky's a terrorist he's a financial terrorist and of course he's terrorizing the people in america who are now suffering as a result so back to this chart here that they lost their power their negotiating power because the parameters were being set by the people who were financial eyes and the economy so these guys own the paper world and you decided let's get rid of

gold and all negotiate with these paper pushers and of course you lose now the economist this week actually has a piece calling bankers unique in the world because it's quasi marxism because they literally own the means of production they own. a means of printing the paper right there's no unit of labor that has any representation in this economy and i've told people in the u.k. and i've told people in the us people who work for a living people who might be affiliated with the unions like a bill o'reilly or all rush limbaugh or the people like that who are part of unions in america yes. you know they are union members rush limbaugh bill o'reilly do you want to explain you know rush limbaugh and bill o'reilly are very extreme right wing television hosts of america who spend their entire day condemning union members only to lo and behold they summers and crooks and liars dot com that in fact they are union members and they're telling people breaking the unions right

there televangelists in america and they are part of unions that they are decrying their self hating union members now live but they're also like a cop or a or a teacher or municipal worker who are you know part of unions and i've been telling these people for years now to tie your wages to money supply the money supply is up by billions of money supplies up the m two is up ten twenty fifty percent on a percentage or percent you need to tie your wages to money supply not the fabricated nonsensical scored unquote inflation number that is completely fabricated and has no representation in reality and now here in the u.s. obama is talking about well let's raise the minimum wage which is exactly equivalent to adjusting the monetary policy if the fed can move interest rates up and down for the have lobby have the baxters and make the economy completely artificial and remove supply and demand remove free market economics and go to a planned centrally controlled economy by adjusting the price of money then the

serfs need to be able to adjust the price of their minimum wage those two things with them balance each other out to some degree in this plan socially planned economy but if the service can't adjust their money their wages tied to money supply then he just sobbed. we have now which is a wholesale confiscation of wealth and aggregation of wealth of the top one percent of the top one percent and everyone else ending up like greece which are down there picking you know she's out of the rat poop to survive so again we're that we have a g. twenty meeting going on people are talking about currency war the finance ministers and global heads of state are talking about currency wars certain of these nations are accumulating gold such as russia and china at rapid rate so they watch our show i mean russia's buying gold are the biggest gold buyer in the world of course this show is played in those countries where the i.q. is high enough to stimulate people to buy gold like russia now one of the biggest

banks in the world a depository bank is bank of new york mellon and michael wolff folk was participating in this bloomberg television debate with kumar about the gold standard and here is how bank of new york mellon michael wolff responds he says if we went back to the gold standard you would be looking at a global recession we don't have enough gold and it's not growing fast enough well this is shows i'm a bank of mellon of course and state street banks are involved in massive pensions scam forex rigging and fraud and there's a man who is represents fraud who is making a fraudulent statement the there's something called price discovery and free market capitalism at the core of the supply and demand if there's a high demand the price goes up but he's saying that we manage the supply and demand we do manage wash trades to manipulate the price of gold and silver we don't believe in free market capitalism we envy they the state of the soviet union these

are these people when they were they would they would love to live in a centrally planned communist nation where the state is basically controlling every single aspect of their lives that's what this american there are americans in every single american is essential lead play. egypt screaming to get out meanwhile in moscow they're bracing their free market they're embracing logic they're buying gold because they're not jackasses like this american pinheads like bill o'reilly and rush limbaugh or self hating unionist who don't even understand what supply and demand means and that's why they're becoming extinct ok fremont guns we know that go to white gonna go up plenty of them but they're just going extinct because i just hope it so finally of course you can't have a shootout at the ok currency corral without some bourbon or whiskey maker's mark waters down as bourbon to me rising demand maker's mark just got a little less stiff the bourbon brand new for its bottles sealed with red wax told

customers today that it's reducing the amount of alcohol in the batteries by three percent in order to me rising global demand this is stealth inflation again like the horsemeat scandal in the u.k. so they their prices of make of the product is going up but they can't pass the price rise to the customer so they're watering down the product and they're trying to justify it by saying that there's a high demand for watering down the product that's that's just that's retarded that's stupid and people don't want it and want to know why the economy is growing why they're why they're suffering because of people who are making these decisions are functional idiots showed up to a gunfight with a knife oh my god well stay here with thanks so much for being on the kaiser report thank you stage of the second half we'll be speaking to jan squirrel's of the real asset company.

i've.

lived. welcome back to the report i'm asked as a child out of georgia jed squirrel's of the real turbot ajab welcome back to the kaiser for thank you for having me all right jazz goals in a statement this week g. seven finance ministers of social bankers insisted they remain committed to exchange rates driven by the market not government policy do you believe and i don't particularly believe and i think the statement came out from the g seven was quite confusing for everyone because they basically said that they don't support

people of the faith in their exchange rates individually as a collective group we tend to that might not be such a bad idea like they did back in two thousand and nine with a t twenty but they support it maybe in domestic monetary policy action say we all know that there's a currency war going on and we're heading that way in devaluation of currencies is happening and whether it's really happening or it's just happening individually the statement can change that fact to what everyone is clearly say so yeah there's a g. twenty meeting today it seems like the g. twenty meeting coming out of the g. seven meeting you've got the g seven or the debtors and that are going to meet with their creditors they're coming up with a plan jamie what the creditors of the chinas of the russias the world are financing the the west so to speak what's going to be their plan where i am i think they're going to go in with the same policy because i think we're trying to go in with the united front and japan you know this is all kind of started from this currency wars happening and meanwhile like you say you've got the nations of the g.

twenty and we've had at least three or four years that they've nations saying that these currencies are being devalued and you know we want to see something being done in the way the international current system is being run is two dollars centric and it's not you know it's not fair on them and you know brazil said a couple of years ago and then i'll bring it back but they'd like to see more. more internationally. in fashionable system so i think it will be interesting what happens this weekend but i don't think he's right it's going to come out of it because you know you need to make the seven a too powerful to. really want to change things that moment yeah it's really that because the they're saying that talk of a currency war is damaging and they don't seem to recognize that there is a currency war going on right now so what when are they going to realize that it's not like they're stumbling into world war one you know world war one of people kind of posturing and then a shot was fired and there's

a world war going on so it seems like we're just waiting for that one moment what do you think will be the trigger for this over currency war to become obvious and on impeachable it will be a what used to. countries as most fragile i guess you could say maybe japan will already think well i think part of africa maced interesting one and it's interesting because i've seen them the americans are very happy it's going japan's economic situation changed quite dramatically in past couple years you know they're now going to import energy so trying to start to my currencies and south korea are now i would compete with them on exports say the japanese yen has been quite devalued against that so i think japan could be the turning point is happening all over the world and i don't particularly see a one trick country as it were but i think i think there's a lot of rima left for nations such as america which is expanding their balance sheet he's me the u.k. which has done even better job three hundred fifty percent i think is still a long long way to go and before like you say we kind of head into the world war of

currency was i mean i listen to david cameron the prime minister's question time ask questions about currency war he doesn't recognize there is a currency war he's just as well as good at the pound is down he does recognize the fact that has it helped exports at all and that the believes that the ongoing policies of fiscal policies in the monetary policy. these are all well within the remit of those in government and we're going to see their way through this recession but nothing he's doing is working but more troubling is this seeming complete financial illiteracy how did they get to be. born mervyn king king sees we sounding the warning shots that what's really going on but he's leaving and mark karr is coming in to seemingly to just do it as a former goldman sachs guy to do the bidding of the people who are in this massive denial what i completely agree it is quite an interesting article a concrete member i read maybe on bloomberg about how we're now seeing this new

generation of central bankers and no i mean we see we see to understand central bankers we're seeing this generation aren't quite so bothered about being autonomous and independent and the way they're going about things because governments want to have more and more control of the central banks i mean a prime example if you go back to japan and the new government want to have more control over the central bank and they're now looking for a new governor. the current governor who's retiring isn't quite so keen to be going down this inflationary rate and to be raising the inflation target so i think it's you know we there's a report which i think we're going to discuss later on which says that the reason governments won't be wanting to go back to sound policies is because it doesn't work in their favor and that's also really what it's come down to you know there's no quick game three made when you've got a sound monetary policies and there are governments there for quick games and central bankers are now being brought in and he can help them you know kind of just prop things up and pretend things are ok for you know until they can find the next thing to make it look like it's ok meanwhile russia seems to be taking the strategy

just buying lots of gold the same thing with china yeah and they've said in russia that they don't really believe anything is coming out of the g eight countries in terms of defending their paper currencies by just issuing more paper so they could potentially be a big winner in all this what are your thoughts on russia well i think russia's very interesting you know they're talking about. and changing you know bandaging the petrodollar as it were russia is imported small gold china which i think was a surprise and everyone saw the numbers come out earlier this week and i think we've we've talked about you know these these. countries are forming a parallel currency and if there's gold backing and they've got gold as large cents there is then that certainly. has a lot of confidence in these these badly managed paper currencies in the western world and i think you know i've talked about this before in a paper or a university saying that we really need to gold is going to be gradual it's not

going to be sudden announcement from the government saying we know we're going to gold standard but i see this happening with these crowds nations who are importing gold are able to prop up their currencies with this large amount of gold ok. almost a currency war the official monetary financial institutions form the oh. they've released a report on the internationalization of the r. and b. they say gold will play a vital role so tell us about this report and they say ok a vital role but you know this isn't exactly a suggestion to go be reminded ties or will them with the gold standard they talk about china and the r. and b. they want to become an international reserve currency and specially trade currency and they go through the process by which this happen a they would have to have happened over quite a few years you know there's capital controls going on and you know monks everything else and while sis is happening and is the r. and b. game sort of international status and becomes a more widely exchanged currency and then gold because it represents quite

a significant part of china's dealings will become. more to the fore and makes the point that you were face to gold and assets it doesn't refer to as a currency or a money you know a money issue assets and it talks about its pros and cons in terms of you know it's a good hedge against inflation. current's was never think that it doesn't see a role for it on the next. standard as it were the next currency standard that we moving on to just see as big a role for china so it is significant but when you read reports of this report statements on it saying it took about three minutes of gold it's not talking you know like selleck was back in two thousand and nineteen thousand and ten about it becoming part of the basket of currencies or anything like that it's just saying that we can't ignore gold china come to the fore with that currency and you know you have to acknowledge that east asia which once was a huge trading and economic power you know several hundred years ago that's

happening again and we need to we have to acknowledge that gold will play significant role from a personal point of view everything that's happening you know whether it's the chinese currency. increasing its prominence on the international stage or whether we talk about currency wars and devaluation paper currencies or fiscal policy many policies you cannot ignore thousands of years of gold being used as an international money it's a face it's currency and say i found this report was quite disappointing in that whilst it does spend quite a bit of time on gold seeking some conclusion it doesn't acknowledge that the gold standard gold will have a prominent role in the international system on a permanent basis i didn't say is that in a transition basis one of the individuals out there who are buying gold and silver . there seems to be the silver eagles in the us are being sold out people are buying gold or buying so are they going to be buying this idea that the paper can be solved more paper there's a lot of buying interest in the individual market yeah this is interesting because

you know i'm getting a lot of questions remain about what's happening with gold and the price is kind of plateaued we are in this kind of consolidation phase and it's very easy to quickly point at this individual buying that is going on in any american city so regal's is fascinating we're seeing quite a bit over year these cash for gold shops a kind of you know sort of popping up again with this demand top. old individual currencies name personally in our company we're seeing people asking more questions about what's going on and how they can protect themselves that cannot be ignored but what that shift how significant a shift has to be in these western countries for governments to pay attention i really don't know because like you say these cameron and osborne in new york mark carney and you know ben bernanke yes they don't want to pay attention to this and the one trillion dollar platinum coin that came up people won't really looking back i say well that means that their own precious metals that wasn't you know what it was particularly all about either so they completely missed saying i mis understanding the role the pressure must continue and how people are putting their

faith into them the trillion dollar platinum coin idea was to create a bogus platinum coin with that one a gram of platinum in it but say that is worth a trillion dollars and a swap that for a trillion dollars and free up money to keep from going over the debt ceiling the fact as you point out that that yes platinum and gold and silver mentioned in the founding documents united states and referred to and used as money and maybe that might be a solution and getting away from paper they day that was never an issue in the conversation right now that you they kind of eat nice of you saw them talk about it and you're like yeah you know and then you sort of these are you know you've got this is just completely been messed you know they they can understand and we've just said before it's everything is just a quick solution is how they're going to get things done and it's just you know how can we do this and we can carry on doing what we're doing in the first place and you know you say it's in the constitution they should be having this and i've been spending a bit of time as boring as this sounds looking at other countries constitutions and

it's not just the us this say that you know this country should be minting gold and silver coins and last week am i right so i don't think of the trial of the pigs where it was a time old trial that happens in the u.k. where as if they mean it's found to be based on the currency then the head of the main switch i believe in this country the chancellor of the exchequer could be hung drawn and quartered and perhaps this is maybe something that when they're coming up with ridiculous ideas. one trillion platinum coins we could maybe hold back up the constitution there not know within the a we have a constitution then you know that's something that we they would maybe suggest more sensible policies which i think. would be rather courted for a day under six pack i think that's. ok well you know we're big fans of this type of thing of the of capital punishment for crimes against capital well why not thanks so much for being on the kaiser report thank you all right and that's going to do it for this edition of the kaiser report was made max kaiser and stacy herbert i want to thank my guest jan squirrel's of the real asset company if you'd

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do hack work. get caught lobbyist money and lawmakers are combined together that's where the problem of corruption comes from. i don't know the document's. smart look. there is also. another well behind that which is how to influence things situations steer clear of provocations don't answer any question. came into the office and found banners hanging around the office and lots of strange faces around so i said what's what's happening will somebody please tell me what's going on and they said oh we've come to occupy your building. possibly they want to do a confrontation possibly they wanted me to ring up the police have the police come

in through the mount but it didn't seem to be a good idea to learn the european way with brussels business. in the crossing it's one person one fold in brussels baseness it's one euro one fault.