after the headlines concern trolled you into selling your real gold and in the meantime having sold your real gold you are now no longer 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 resist 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 soc gen 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 flesh

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 ton. against the collapse of the global fia currency system the start 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 of any given moment is about as important as studying a net on the butt of angelina jolie and saying based on this net 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 would 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 a shot up in relation to the euro and remember during the cyprus crisis there was a one point three million dollars purchase on mt gox 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. 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 millions. 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 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 all economy would shift to the south in africa and to 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 is 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 and discredit the other when they do work together they're the only three hard currencies in the world gold silver and 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 bit coin up from the current hundred thousand. eight 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 of 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 me 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 thing and inflation is 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 at near zero percent so it's a mechanism what i call interest rate apartheid so if you're on one side of 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 an annualized basis. four hundred five hundred six hundred percent again you're the financial end word what you're not allowed to say because people would panic and you end up being slaughtered so let's talk then about george osborne and his financial non-computer

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 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 is to just take less pay according to the low wage commission to get back to this man still a part time when 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 debt 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 rate 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 minimum wage you. 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 solid in 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 jobs often 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 they threw garbage out and if if that's a guy you're paying too much if you're paying him much less 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 stacy we've got to go thanks rick i was a report thank you max states over the second half will be talking to simon rose of save our savers.

the international airport in the very heart of moscow. 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 indeed max some of those people talking about cyprus and the new cozy beheading not just the haircut of the chop shop 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 decapitate of their might 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 has been about one hundred billion pounds but of course inflation is beaten up 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 got a total 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 where 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 or first of august. her twenty billion pound figure put into context here those who are arguing that the half a percent rate that is being on offer from the from 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 code words in adventure series the forcing down of interest rates in an unnatural way from the normalized rate of 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 after it's deep capitalized in the country and he capitalizing 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 high up the tower of london know about ground what people got killed for was high treason what was one of the crime so high treason basing the currency what else will they be doing but the base in the currency now what people used to be sentenced to was you can get tortured you didn't get caught 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

on. off in opposite directions and he would be torn asunder then burned then home then spit on then killed why do 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 the bankers we go the government you got the opposition there are hardly any m.p.'s who 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 who discovered his mean adopting estuary english which is all you know was

a white van montoya way of talking right like starting 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 got out 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 let's move on because i mean that you know the whole of this easy money thing is just it's becoming obsolete because the one group the benefits most is the government's on the one george was doing nothing about it you go back to two thousand and nine he was giving speeches about how what 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 impossibly jerry 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 guy was arguing for higher minimum wage but what are your thoughts on the charges i can see both sides of the only humans i've read jeremy morse's precent seem very reasonable went on the same time you know i've read hazlitt i understand the libertarian view and there's the worry that the people who are actually damaging by having a minimum wage all the people who would want all stopping being stopped from getting getting jobs because employers simply called it was 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 of 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 tie 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 way should be tied in the same way to money supply or converse only get rid of the central bank and have a free market off who ran the full sense yes but you can't have a situation where it's a a give away a gift george osborne gifting money to the city and then penalizing workers at the same time ok not 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 politician's found the problem is they will not admit to what they doing they will not admit how they are basing the currency they will admit even to the true inflation numbers i mean we've worked these out on the fish inflation figures which in the last five

years we haven't. about seventeen percent on r.p.o. c.p.i. index but this is a city firm. who are the thorn in the side of most economists because they actually look at the real picture first time they take over telaprevir blue collar to pre-board very good for all the cream bomb i don't know if they've got but may but they have two very good guys like every like more american like joe's data joe's data joe's they are going to work with the yard work and see for any way slim. bought a target pre-born i'm not going to name just for you can take their economist 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 their source there's really no real right raising over 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 to the government says that inflation is roughly two point eight percent yet 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 to they actually need like food energy things like this they're correct yes and it even on the official figures in real terms incomes in the u.k. much like in america are 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 right at what point do you have 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

a. i'm going to revolve it were over we don't know in england i suspect the breaking point is is much later than everywhere else when you know we used to have fantastic revolts 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 and they won't understand what's happening to the money that is not a bit and then what they think they turning the public like monkeys like here's a here's a banana you fricken monkey zookeepers take it all the real money i mean it's not insulting i mean those who keep are georgia surprise you politicians i'm just surprised people put up with that i mean they're like oh a p.r. point to be here i'm so happy with 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 are basing our money it is worth less than 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 saying 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 out of an 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 time when you might have forty percent or more of your money suddenly confiscated again going to slow growth let me repeat the big point here and that is that people who are upset about cyprus have to realize that the u.k. they've already had their cyprus i mean almost every western nation but they have that cyprus it's still going on and going even worse 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 or nine times our annual income that's what we owe a debt to water column is to say it doesn't matter because we are. to ourselves

well i mean this is still going on it's getting worse not all that much it's not going to win this not all of these albums thirty percent is comes from overseas and at some 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 called affordable houses to drive away of fannie mae freddie macas failure so why is warren repeating that failed policy as if it's going to smash sickly you know undergo some harry potter like transformation why why does that i think they expected a few years ago that things would just somehow magically get better and that robin would be pulled out of that well he's not going to have we know why because for forty or fifty years even though death has expanded every single decade there have been periods of growth yes that were growth has exceeded debt rate of increase but it's 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. smarmy carney 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 hala but that's no aunts ritually dumb passmore i'm thinking about anything sadly the govern the bank of england is not able to choose the chancellor i think he's going to work behind the scenes he's going to get rid of i was born he's got the regulatory purview now so easy you cumulating power he's a power mad psycho ex hockey player they get hit in the head with a hockey but i think many times i think it would be good news for savers unfortunately for us to when you know we talked about this before when it went to

people's breaking point going to be reached i really don't know where we've already reached all this you know all right simon rose of save our savers are out of 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 stacy herbert don't take 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 and 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. normally. i mean so should the only city in europe come host of the twenty fourteen winter the pick a. sunset. thank you. so much. thank you.

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