also at 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 yeah 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 hot 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 don't 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 literacy 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. it's not going to work because you can't have any winners and it's like saying that what rock paper scissors game with everyone has paper you know they're just all showing paper and of course none of them going going to win except those with a rock winner's case would be 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 and streak 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 and seventy one of global fee money trade against each other is shelling and we're 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 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 worker 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 and the wealthy in the super super wealthy but look at these charts 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 for exactly one thousand and seventy one. the median household lost their bargaining power and all the productivity gains went to the top they did not go to work as in fact the median household wage went down once we broke from the gold standard because they would distort 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 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 as 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 cherise in 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 i'm marxism because they literally own the means of production they own. means of printing the paper right there is 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 if you want to explain you know rush limbaugh and bill o'reilly are very extreme right wing television host 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 workers 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 the money supply is up and two is up ten twenty fifty percent on a percent to nine percent you need to tie your wages to money supply not the fabricated nonsense of goals scored unquote inflation number that is completely fabricated and has no representation in reality and now here in the u.s. obama's talking about well let's raise the minimum wage which is exactly equivalent to adjusting the monetary policy of the fed can move interest rates up and down for the have a lobby out of the baxters and make the economy completely artificial and remove supply and demand remove free market economics and go to a plan 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 is buying gold at the biggest gold bar 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 the 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 will focus 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 mt 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 in free market capitalism it's according to supply and demand if there's a high demand the price goes up but he's saying that we manage to 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 leave play. in 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 that's why they're becoming extinct ok for young guns we didn't go to a white dog not 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 suburban or whiskey makers 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 horse meat scandal in the u.k. so they say their price is a 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 to know why the economy's not 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 will be speaking to jan squirrel's of the real asset company.

speak your language i mean some of the will or not of the. program some documentary some spanish what matters to you. a little. story. is told to the spanish find out more visit.

more news today violence is once again flared up. these are the images the world has been seeing from the streets of canada. chunk operations are all today. welcome back to the kaiser report imax kaiser tried out a charger jav squirrel's of the real job at a jag welcome back to the kaiser report thank you for having me all right jeff skiles is staying with this week's g. seven finance ministers essential bankers insist that they remain committed to exchange rates driven by the market not government policy do you believe i don't particularly believe that and i think that the statement came out from the g seven was quite confusing for everyone because they basically said that they don't support people that are facing their exchange rates individually as a as

a collective group it was hinted that that might not be such a bad idea like they did back in two thousand and nine or the 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 through valuation of currencies is happening and whether it's probably happening or it's just happening individually you know. statement can change that fact to where 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 to me what the creditors of the chinas in the rushes the world who 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 they are trying to go into 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 and sasha 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 their company years ago and then i'll bring it back but they'd like to see a more. more internationally international system so i think it will be interesting what happens this weekend but i don't think he's a man is going to come out of it because you know you need to be seventy two powerful. to really want to change things that the moment yeah it's really the 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 in a 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. impeachable it will be a what used to. country as most fragile i guess you could say maybe japan will already think well i think part of africa maced interesting why. 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 tear it down by 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 because it's happening all over the world and i don't particularly see a one trigger 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 in the u.k. which has done even better job three hundred fifty percent i think there's still a long long way to go before like you say we kind of head into the world war of

currency wars yeah i mean i listen to david cameron the prime minister's question time ask questions about currency war he doesn't recognise there is a currency war he's just as well as good at the pound is down he does recognize the fact of that hasn't helped exports at all and that he believes that the ongoing policies of fiscal policies in the monetary policies are 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 the more we can be seen to be 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 there 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 think we need to understand central

bankers we're saying this generation aren't quite so bothered about being autonomous and independent in the way they're going about things because governments want to have more and more control of the central banks i mean 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. gov is our 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 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 what it's come down to you know there's no quick gains to be made when you've got a sound monetary policies and governments there for quick games and central bankers are now being brought him 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 like it's ok meanwhile russia seems to be taking the strategy just buying lots of

gold the same thing with china 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 currency is by just issuing more paper so they could potentially be a big winner in all this what are your thoughts on russia oh i think russia is very interesting you know they're talking about changing the you know bandaging the petro dollar as it were and russia is imported small gold china which i think was a surprise and everyone saw the numbers come out earlier on 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 go it is going to be gradual it's not going to be sudden announcement from a government say we're now going into 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. most of the currency war the official monetary financial institutions form the oh. really. a report on the internationalization of the on big 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 it to become an international reserve currency and specially trade currency and they go through the process by which this happen a they have to have happened over quite a few years you know there's capital controls going on and you know amongst everything else and whilst this is happening and is the r. and b. game sort of international status and becomes a more widely exchanged currency then gold because it represents quite

a significant part of china's dealings will become. more to the fore and makes the point there. is 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 its cons in terms of you know it's a good hedge against inflation. currents was nothing but 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 becoming part of a basket of currencies or anything like that it's just saying that we can't ignore gold china come to the fore with their 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 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 money policies you cannot ignore thousands of years of gold being used as. in international money it's a faceless currency and say i found this report 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 what about the individuals out there who are buying gold and silver. there seems to be a merit a 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 as most 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 prices kind of plateau you know we are in this kind of consolidation phase and it's very easy to quickly point in this individual buying that's going on in any american city so regal's is fascinating we're seeing quite a bit over year cash for gold shops a kind of you know sort of popping up again and this demand to hold individual currencies name personally you know 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 york mark carney 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 be looking back i say well that means that their own precious metals that wasn't you know what it was particularly all about even though they completely missed saying i mis understanding the role that pressure must continue and how people are putting their faith into them the chilean dollar platinum coin idea was to create

a bogus platinum coin and 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. them in gold and silver mentioned in the founding documents united states of referred to and used as money and maybe that might be a solution and getting away from paper they day that was there and in the conversation right now i have a kind of nice of you saw them talk about it and you're like yeah you need a bag you know you there and then you sort of. you've got this is just completely in mess today they can understand why we just have a choice 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 it's boring to sound like you know other countries constitutions and it's not just the u.s. this say that you know this country should be minting gold and silver coins and

last week am i right so we don't think of the trial of the pigs where it was the time old trial that happens in the u.k. where as if the mean it's found to be based on the currency then the head of the main switch i believe in this country's chance through the exchequer could be hung drawn and quartered and perhaps this is maybe something that when they're coming up with ridiculous ideas i want trillion platinum coins we could maybe hold back up the constitution they're not always in the u.k. we have a constitution then you know that's something that we they would maybe suggest with sensible policies which i think. it would be rather good order to extract i think just for the royal family ok well you know we're big fans of this type of thing of the of capital punishment for crimes against capital 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 with me max keiser and stacy herbert i want to thank my guest jan squirrels of the real company if you'd like to contact us you

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when lobbyists money and lawmakers are combined together that's where the problem of corruption comes from. i don't know the document's. keep up a smart look. there is also. another word behind that which is how to influence these 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 someone and 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 to have the police come in through the mouth but it didn't seem to be a good idea to learn the year of the.