a hedge against inflation deflation confiscation stacey or max they're so concerned for your well being they're only telling you this because they're worried about you gold bubble scene turning to bear market by soc gen on recovery investors are unlikely to resume gold holdings because inflation has remained low signs that the economy is improving may spur the federal reserve to curb stimulus and the dollar has strengthened stopped and said today in a report oh this is financial narcissism because the dow jones is hitting all time highs but that down jones is the inflation the money printing eighty five billion dollars a month by ben bernanke is being front run by manipulators and stock traders who then are gaining on the gift from bernanke and they're saying that's on place during a song flesh mary that we're channeling greenspan said they're just channeling money directly from the federal reserve bank into stock manipulation and then calling that growth when there's no job growth there's no wage growth there's no

g.d.p. growth there's only confiscation using manipulation of the fed and the inflation is down jones fourteen thousand that's the inflation but by saying that's not inflation it's a form of what i call financial narcissism which is a disease but many investors are not actually buying it for inflation it's the chinese government buying it to protect against inflation is the russian government doing it to protect against inflation no they're doing their purchasing gold in large quantities by the tons in order to protect against the collapse of the global fee currency system on the side of the argument here in other words is gold in a bear market or is gold telegraphing something about inflation and yes i would agree that's another false statement because the inflation in stock prices is being hedged by china india and these other countries by buying gold which is a natural inflation hedge and that's why. these countries have never bought more

gold ever in the history of these countries now the fact that it's going sideways at the moment consolidating is meaningless the what george soros does on any given day at any given moment is about as important as studying a net on the butt of angelina jolie and saying based on this net on angelenos but i'm going to conclude that prices for the gold market are going to go that way or that george soros is a peanut compared to china compared to india compared to these global macro trends he's a he's a parasite he's an opportunist doesn't make him a bad guy doesn't make him a bad traitor but i wouldn't use him as an indicator of anything other than george soros now the other concern out there is this our bitcoins killing gold price the use of bitcoin seems to have increased dramatically in spain italy greece cyprus and elsewhere in southern europe over the last two weeks this is most likely driven by increased concerns about the future value of the euro historically these kinds

of concerns would have had investors headed for the safety of gold instead the value of big points and shot up in relation to the euro and remember during the cyprus crisis there was a one point three million dollar. thanks for bitcoins and that's the thing is like you know they have capital controls they have people at the airports looking to see if you have more than a thousand euros cash however if you have a thumb drive between you can cross the border or you can keep a big coins in a mind a wallet and you know if you just memorize the address you can walk around anywhere in the world with a million two million five million twenty million dollars in bitcoin and you can use that as good currency and i just want to point out that when the cyprus crisis hit and bitcoin it was just getting to that forty to forty five range i said it would get two hundred fifty on the cyprus crisis it did in fact get to one forty eight which is you know good does a good is one hundred fifty i was one hundred percent correct on that another relationship between big coin gold and silver i think it's

a bit premature to make those kind of connections because the market cap of bitcoin is not quite heavy or big enough however i will say that those who are owning and buying and building positions in bitcoin you would it would be prudent to peel ten percent off of those profits and park the profits into silver because silver is the natural hedge of bitcoin going forward big corn and silver will be vying as who will be the global currency that will replace all the other field currencies like to the dollar and and the year on these other currencies bitcoin especially in places like africa will explode in value the america i predict will be so frickin stupid as to try and outlaw bitcoin that would take them out of the global economy completely and all comedy would shift to the south in africa and eastern asia so this is how you how you play it going forward how i look at it is that gold and silver protection against the collapse of your government and society where it's because it is a protection against the collapse of the banking system and confiscation therefore

that happens from those deposit accounts so you know they work hand in hand one doesn't discount the other discredit the other you know they do work together they're the only three hard currencies in the world gold. over in bitcoin they're going to have different relationships price wise going forward and we think the point is is the rise of big coin sucking capital out of gold and silver i think no not no not yet but it will especially in bitcoin gets to run of the same market capitalization of silver so that would imply a price of bitcoin of twenty seven hundred dollars per big coin up from the current hundred twenty hundred fifty range which i see happening you know in the not too distant future then you'll see a lot more money flow back and forth from so over bitcoin gold etc but these are the only three hard currencies in the world today one of the other ways to protect yourself from the collapse of our financial system and our economies and inflation and things like that is your wage and your income now on the top level we have many at the top one percent of course don't actually work for

a living they receive income through dividends and capital gains national grid links dividend to inflation the national grid has reaffirmed its commitment to increase dividends at least in line with the rate of u.k. inflation for the foreseeable future now max this is nicely of what you have always argued to u.k. workers here is that you should tie your wages to inflation to the money supply in fact but at least here this is the why you see this growth in inequality is that at the top in the top one percent they insist on being compensated for inflation and risk well the top one percent through their channel let's say the b.b.c. is saying that inflation is not a risk they're saying and inflation's under control because there's no inflation the bank of england going to keep interest rates down to near zero at the same time they're telling their one percent clients that because there's so much friction inflation we're going to tie dividends to higher rates of inflation so you're not gobbled a lot by the real inflation number one number two how can this company the grid

afford to pay these escalating dividends to keep up with inflation they borrow the money from the central bank it near zero percent so it's a mechanism what i call interest rate apartheid so if you're on one side. the apartheid wall of interest rates you get dividends from a company that can borrow from the bank of england a near zero percent and as the replacement really bites you're protected because now you're dividends are going higher if you live on the other side of the interest rate apartheid wall then you borrow money from some companies to wanda to make ends meet for the end of the week and they charge you on any wise basis four hundred five hundred six hundred percent again you're the financial n. word which are not allowed to say because people would panic and you end up being slaughtered so let's talk them about george osborne and his financial new because he looks out at the economy and what he sees as too many workers having too many rights because we have minimum wage could be frozen or cut if it starts to cost

jobs or damage economy government suggest the minimum wage for millions of people could have to be capped or frozen in the future if it risks damaging jobs or the economy the government has said so when you look at this economy if you look out here what do you see has happened in the global economy over the last five years it's been too much debt right its collapse has been a problem of god there are just too many damn wages out there people are just earning too much money doing their jobs you know it's been too much student debt too much housing debt too much credit card debt too much debt and the government instead piles on more debt and looks out and says we need those low wage jobs or nurse to just take less pay according to the low wage commission to get back to this financial apartheid we using interest rates everyone has massive amounts of debt the difference is that if you live on one side of the wall your interest on that debt is near zero or zero or less than zero if you live on the other side of that wall your you pay twenty thirty forty eight hundred nine hundred thousand

percent annualized interest on that that everyone has debt but the difference is it what what side of the apartheid wall you live in do you live in the interest rate ghetto or do you live in the interest. valhalla my second point is that even the telegraph which is the conservative newspaper here in the u.k. argues that minimum wage should be raised germy water arguing that minimum rate should be raised for all the reasons that he states that it makes sense that i've already stated that he is now stating by cutting a minimum wage while while the same time allowing speculators to borrow near zero percent that's not even bad policy that's cruel that's cruelty beyond even financial pressure and who's orchestrating this is it gangs con is it a sign of bin log is it king kong is it godzilla no it's george frick and osborne that put your face and it is a number eleven downing street shame on him now george osborne stood in front of

a whole bunch of workers you know workers at a warehouse of a supermarket low pay sort of guys and you talked about the spongers and the welfare bums the people do you want to have to support those people and this is why we should cut benefits but the queen gets five million pound pay rise from taxpayer grant to cover household running costs rises to thirty six point one million pounds up from thirty one million pounds and diamond jubilee year that's up sixteen percent more like the real rate of inflation the queen does an important role in attracting lots of tourists so i think that's not necessarily bad you know i think she's not overpaid but i think george osborne is overpaid because he doesn't attract any tourists he just attracts the regions and blues we remember at the olympics he went out to say hello to everybody through garbage out of it that's a guy you're paying too much you're paying him must the minimum wage you bring him too much and uses it in duncan smith who suggested he could live on fifty three pounds a week or a month that's the guy you want to keep track of because that's the guy we're going

to see that's our ok stacey we've got to go thanks ring i think i was a report thank you max states over the second half will be talking to simon rose of save our savers. this is trash to get rid of. but it's also a treasure. worth fighting for. and a trap with no way out. it

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welcome back to the kaiser report i'm max kaiser time now to turn to simon rose of save our saviour's simon rose welcome back to the kaiser report thank you very much max some of those people talking about cyprus and in a cozy beheading not just the caricature that chopped up but the beheading now you point out here at the save our saviour's campaign that in the u.k. they've suffered a twenty percent decapitates sion of their money tell us about you know what we said we looked at how much they were getting on average before up to that record low by five percent and we looked at what they did in the three years since it was cut and the actual loss to save it's been about one hundred billion pounds but of course inflation is be much higher than expected as well. the difference between. inflation and what you're actually getting fuel savings on your cash is an account from one hundred twenty so in total two hundred twenty billion pounds has been lost by u.k. savers in four years alone in this country and given that we've got

a totals numbers just trip off the tongue one point one trillion but essentially it is twenty percent of the entire value of savings has just gone never to be recovered in the last four years so why is the u.k. press getting so worked up about what happens in cyprus when they don't seem to give a monkey's about what happens in the u.k. it's ridiculous i think you bring up a few points there first of all this two hundred twenty billion pound figure put into context are those who are arguing that the half a percent rate that is being on offer from the for the bank of england essentially is helping people pay their mortgages it's been calculated recently that mortgage payers are saving approximately seventy billion pounds what you're saying is that simultaneously the economy is losing three times that amount of money in lost income from the coal worship adventure series they're forcing down of interest rates in an unnatural way from the normalized. four or five percent down to this half a percent and so for every pound essentially that george osborne is gifting to

the city of london he's stealing three from the other sixty five million british people who are now suffering as a result of this calculation discount elated destruction of an economy by george osborne on behalf of a few speculators it's actor it's deep capitalized in the country and he kept listening so how can you have capitalism in any form without capitalists crazy muslims riffed on this d. capitalization theme for a second because there is a tower of london where they perform decapitations well the tower of london all about ground what people got killed for was high treason what was one of the crime so high treason deep basting the currency what else have they been doing but the banks in the currency now what people used to be sentenced to was you can get tortured you didn't get caught but you go hung them drop drawn to

a place of execution and then and then hung or burned if you are a woman and you debase the currency but that is exactly what they have done so are saying is that george osborne were alive a couple hundred years ago three hundred years ago he would be roped time to run each of his extremities his arms and legs attached to horses and they would gallop off in opposite directions and he would be torn asunder then burned then home then spit on then kill what i suddenly feel a lot happier. sadly that doesn't appear to be the case these days so this is an economic problem and it's a problem also of jurisprudence in other words the the the standards of justice in this country have collapsed because there's a treasonous treasonous of no good nick that's being allowed to sashay around in the house of commons stealing money but it isn't just hey it's everybody we've got to. bankers we go to the government the opposition there are hardly any m.p.'s is

told you seem to understand what is going on very very few but he stood up in front of the group of workers with their reflective jackets on you know just ported over from the cross well project and he started talking about why these workers are important he speaks with forked tongue or not only that but the latest thing is the people he's got his mean adopting estuary english which is latino was a white van way of talking right lifeguarding disorder is to us it's accent you know a guy original sound like one of the blokes is the i'm not a posh little you know it's the same thing with george already likes it just the accident just so to make it appear doesn't it george bush used to sound purposely stupid because in america if you sound like george bush stupid it means you're somehow honest so you have george osborne going from the posh accent to you know it's more cockney on the scale to sound real doesn't matter what he does i'm sort of going to have a drink down the pub with him all right let's move on because i mean that you know the whole of this easy money thing is just becoming obsolete because the one group

the benefits most is the government so no wonder george was doing nothing about it you go back to two thousand and nine he was giving speeches about how well the conservatives were going to help save us i mean the promises they made were quite extrude to the moment they get into power of course they just forget it now the economy of course this is what about this idea of he brought forward of cutting the minimum wage because interestingly enough in the telegraph. which is considered to be more you know right when. there was a story i forget who the jim hosley gerry warner was was arguing in favor of that actually minimum wage to be raised so here's another now first of all if if the left wing out there were smart they would jump all over that but of course none of them read the telegraph so they didn't even know that this right wing was arguing for higher minimum wage but what are your thoughts on what the trouble is i can see both sides of the only thing that i've read jeremy morse's piece and it seemed very reasonable went on cuba at the same time you know i've read hazlitt i understand the libertad. view and there's the worry that the people who are actually damaging by having

a minimum wage all the people who would walk off stopping being stopped from getting getting jobs because employers simply cultivators my point if you're going to keep a central bank that's forcing interest rates down while the same time flooding the money supply out there so the corporations are banks' balance sheets are exploding another words bankers and politicians essentially are paid on the growth of money supply whereas it labor is to be paid on something tied to inflation which is tied to the consumer price index why not time i minimum wage to money supply and say so in fact in other words if they're going to have a central bank that's manipulating interest rates then worker should have a should have some skin in the game and they're there and their salary their wage should be tied in the same way to money supply or conversed only get rid of the central bank and have a free market radical sense yes but you can't have a situation where it's a a giveaway a gift george osborne gifting money to the city and then penalizing workers at the

same turn ok that's what you say absent common sense but when was the last time you had common sense coming out of number eleven downing street or any politicians about the problems they will not admit to what they're doing they will not admit how they are deep basing the currency they will admit even to the true inflation numbers i mean we've worked these out on the fish will inflation figures which in the last five years we have inflation about seventeen percent on r.p.o. c.p.i. index but there's a city firm called who are the thorn in the side of most economists because they actually look at the real picture this time they take over telaprevir blue collar to pre-board very good name i said i told the cream bomb i don't know if they got but may but they have two very good guys like every like more american like joe's data joe's data those days are going to work well you know that a work event say for anyway slim not going. to tell the people on i'm going in just for you bake there are economists to morgan calculated how much. the prices of essential is going up because many people particularly save or save as

members there are things they have to spend money on food energy these sort of things right now seventeen percent is an index encompassing all goods including things like i pads you know not all pensioners are going to able to afford life ok so what if there's really no real read rates move the five years is not seventeen percent but thirty three percent when you actually look at the economic figures and take that figure of thirty three percent to the last few years but it's not just the economy's been stagnant it's been going backwards very very quickly because the government says that inflation is roughly two point eight percent yeah ok so based on what you just said it's double that number yet at the moment it's not very much higher but certainly of the last few years yes it has been significant so when people have this sensation of the other month that they're not able to buy as much as they did the month before on start of they actually need like food energy things like this they're correct yes and it even only official figures in real terms incomes in the u.k. much like in america back to where they were about ten years ago so no wonder most people feeling poor unless they're the beneficiary of things like q.e. and they're working in the city or they're politicians what's the breaking point at

what point do you have like a poll tax write off what point to people saying you know what you've lied to me about inflation you've lied to me about your objectives in q.e. you've stolen twenty percent of the country's g.d.p. you've a fine feathers a nasty financial terrorist without any legal recourse whatsoever i've had it that's it i'm going to revolt it was over we are now in england i suspect the breaking point is is much later than everywhere else when you know we used to have fantastic revotes in the days when they put people in that place behind that but how assaulting is it for the government to give people one p. off a beer. while the same time giving the city of london billions and billions of but that is the headline and that's what many people will notice yeah and they won't understand what's happening to them but it's another bit and they don't think it's hurting the public like monkeys like here's a here's a banana you fricken monkey the zookeepers taken all the real money i mean isn't that a. i mean those who keep or georgia surprise you politicians i'm just surprised people

put up with that i mean they're like oh a p.r. point of beer i'm so happy but that is their journey like a frickin monkey in a zoo bowser the reason of course is because they make it sound so complicated when actually it's very simple they're basing our money it is worth less all the time and that is what everybody not just saves he's feeling poor and then on top of all that you've got the situation in cyprus which is made even worse by diesel blue whatever his name is say well you know actually we might just take your money where there were we decided we're going to in future so suddenly savers who have been losing money through inflation being higher than interest rates are now saying to themselves if they've got any common sense hang on i thought saving cash deposit was a risk free thing to do what if it doesn't have a risk why on earth are you going to do it for one percent of tell you when you might have forty percent or more of your money suddenly confiscated again i'm going to be repeat the big point here and that is that people who are upset about cyprus have to realize in the u.k. they've already had their cyprus i mean almost every western nation rather they

have this cyprus it's still going on and going once it's getting i mean our last our last budget has just done exactly the same thing as before we have a debt crisis here as you always point out our debt is between five and nine times we take everything together five and nine times our annual income that's what we owe a debt toward economists who say it doesn't matter because we owe it to ourselves well i mean this is still going on it's getting worse not ours a budget not a word in this not all you get out there is thirty percent is comes from overseas and at that point they'll pull the plug yeah absolutely so we've got all this debt and what does he do in the budget he tries to get people to take on more debt yeah because you as you pointed out it works so well in america trying to encourage people who can't afford to buy houses that threat either way of fannie mae freddie mac. a failure so why is born repeating that failed policy as if it's going to magically you know undergo some harry potter like transformation why why i don't know i think they expected a few years ago that things would just somehow a. magic to get that that rabbit pulled out of that well he's not going to have we

know why because for forty or fifty years even though debt has expanded every single decade there have been periods of growth yes that were growth has exceeded debt rate of increase but starting it but it is a bit of a ponzi scheme in two thousand and seven two thousand and eight the music stopped and for five years now no matter what they do there's no growth the growth rate is going rapidly in reverse and no matter how much money they print them out how much debt they inject there's not any growth above the route of debt that's growing now i think we have about a minute left let me just touch briefly on mark carney who's coming in to run the bank of england he wore an economy small me company smarmy carney ok you heard it here first any thoughts you got about twenty seconds on what might be we expect from a savings point of view imagine he's going to try and push inflation up even higher but that's no aunts ritually dumb passmore i'm thinking on any sunday the cover of the bank of england's no they have to choose the chancellor i think he's going to

work behind the scenes he's going to get rid of us more he's got the regulatory purview now so easy you cumulating power he's a power mad psycho ex hockey player got hit in head with hockey but i think any time and i think it would be good news for save us unfortunately as to when you know we talked about this before when it went to people breaking go it's going to be reached i really don't know where we've already received all this you know all right simon rose of save our savers read time thanks for being on the kaiser report all right that's going to do it for this edition of the kaiser report with me max kaiser and stays here but i think my guest simon rose of save our saviour's the most important group now operating in this entire frickin country if you like to contact me please send a tweet find me there or perhaps you'd send an e-mail to kaiser report r t t v dot are you are you prepared for the truth. and not only.

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