raged over segregation but what happens to russians and russian speakers cool or hip or trendy or convenient enough for the mainstream media to take notice but that's just my opinion. i am max keiser welcome to the kaiser report round has gone crazy according to mrs wang americans are dumping paper gold and diving into the dow europeans are lining up for separate haircuts the e.c.b. is ready for a negative deposit rates the fed values to maintain its eighty five billion welfare

spending for wall street and the bank of japan is flying the yen into the ground and israel australia and india pledge to follow great leaps forward are being made daily and central bank and sanity while the real housewives of china are backing up the truck yes mrs away is fighting the fed and the e.c.b. and the bank of japan to do. because of course mrs west has seen this movie before it was called the great leap forward and it brought about what is known as the three years of natural disasters or if you prefer the three years of difficulty in which between fifteen million and forty three million chinese died during the great famine brought about partly by central planning gone completely freaked out amok mrs wang no. is this that's why she's

buying gold stacy yes she is and of course she's seen the central planning and how it goes because only three years of disaster of natural disaster we have this is our fourth or fifth year of manmade disaster. you know the great leap forward mao's they don't lead the campaign based on the theory of productive forces and he intensified it after being informed of the impending disaster from grain shortages so he saw that it was addict it was making it worse and he doubled down just like what we see across europe across america certainly in japan they're doubling down on a disastrous policy euro plummets as draggy says e.c.b. is open minded about negative rates european central bank president mario draghi has announced that the e.c.b. is technically ready for negative interest rates as draggy said that the e.c.b. had an open mind the euro plummeted against the dollar and you can see that in the chart here now now now now so this is what.

they got a real thing go in. the mountain of central planning doesn't work. ben bernanke is the man of central banking he's central planning causing natural disasters there's of course the cost of doing what companies like exxon do on never reflected on the true income statement or balance sheet of the company's other free to commit economic jihad and environmental jihad. and of course when. you know the part of the great leap forward with the collectivization of the agricultural land said you weren't allowed to own private property so private farming was prohibited in those engaged in that were labelled as counter-revolutionaries and persecuted in the same day and age today when you

try to protect yourself by buying gold for example to protect yourself from the ravages of collectivization of monetary policy because let's face it they're working together the fed is working with the e.c.b. work with the bank of japan which worked with the bank of israel working with the bank of australia and canada to collectivize monetary policy around the world into collectivizing monetary policy and then they're asking for individuals to sacrifice like the cypriot they have to give over their savings for the good of the collective that's being managed by the e.c.b. marriage i ben bernanke you mark carney coming over here to the bank of england and people are buying gold to protect themselves against the collectivism of the central planners the central government authorities the central bankers and the result is quite stunning in that the as you point out mal when faced with destruction double down double down now did mrs wang of course and saw that

mal they were bureaucrats when faced with catastrophe instead of having the humility to say. i'm a jerk and we've got to change same thing with federal reserve ben bernanke you're barack obama instead of having the humility of just facing the public and saying i freaked out i'm an idiot we've got to change course they're doubling down on their insanity was a foreign policy or whether it's domestic policy to print eighty five billion dollars a month in quantitative easing america it will be honored sixty billion soon a three hundred sixty trillion dollars it's just no limit to the insanity the doubling down of their collectivism. and to pay for it they're going house to house they're confiscating wealth they're taking people's bank accounts and it's an atrocity yes it was grain shortages which caused them to double down in china dung in one nine hundred fifty eight well it's shortage of liquidity that is causing them to double down and they say well but the fact is of course it's been reported

by a few guys and the likes of blythe masters is now under investigation of course but i was going to personally look what's happening in ireland what i call and we've called in the show interest rate apartheid the interest rates for the collectivists overlords their interest rates are close to zero for them when they borrow money to speculate and drive asset prices to all time highs but the mortgage rates in ireland now being doubled so if you're not part of the goldman sachs coterie of insiders you have interest rate apartheid you're interested to bring jack higher but if you're on the other side of that apartheid wall of interest rates your interest rates are close to zero that's the new defining vested in discriminatory defining wall it's not the apartheid wall surpassed on israel that's not the big one the big one is the interest rate apartheid wall between the goldman sachs or the rest the world well in ireland actually since you bring that up the peasants there are very loyal and have shown great allegiance to the party in this case the central bankers because it's just emerged that the sixty four or eighty four

billion euros in bailout well who was bailed out the unsecured bondholders of anglo irish for example who was that well bill gates twenty seven million euros but you go there and the peasants want to show loyalty that it is their obligation to serve bill gates and give him his money back he wouldn't have noticed the twenty seven million missing but these irish people feel obliged to pay for their central banking masters but remember when when gold crashed when the price of gold crashed because remember it's disloyalty gold was disloyal to the revolution to the central bank and revolution. and remember we covered the fact that joe wiesenthal at business insider said that it was great news that gold collapsed because the collapse in gold is not about gold but about vindication for a large corpus of belief in economic research which is largely panned out it's great that our economic elites know what they're talking about and have the tools at their disposal to address crises without creating some new catastrophe so he

said physical buying alone would not change the game and to support that argument he showed g.l.d. that they had sold sixteen point six billion dollars year to date so the first four months of the year western investors sold off sixteen point six billion dollars so i want to go to this next headline housewife gold rush keeps prices from falling according to the voice of china radio program one of the year's most popular phrases may be chinese housewives as a major force which reportedly spent one hundred billion yuan or sixteen billion dollars over the past two weeks purchasing three hundred tons of gold and thus helping to sustain gold prices at one thousand four hundred sixty eight dollars an ounce western investors over four months sold sixteen point six billion dollars or two hundred seventy one tons it's a form of punishment whenever the physical buy are in the shop in asia middle east or even in america or in australia when they're out there buying physical gold and

they're pressuring his billion banks and they're pressuring the fractional reserve terrorists then the what happens is they impose a collective punishment of crashing the gold market with their paper shorts cells so this is that again part of the interest rate apartheid people who want to skip to get zero zero percent interest rates by physical gold and if the price of gold stars inching higher because of course it's a limited supply then the paper barons and the collectivists they smash the price of gold as a punishment as a price tag for having the temerity to be free. the paper tearing now the fastest that g.l.d. ever sold off is one hundred tons in six weeks up to april sixteenth so here in two weeks' time just chinese housewives or chinese citizens have bought three hundred tons so do warfare anything that you're seeing coming out of new york

and yet new york is trying to shout the loudest about that maybe mao and his party apparatchiks said there was one farm one collective farm that did brilliantly forget all those millions of others that were devastated by famine and there's this one farm look how great the revolution is working joeys of dollars the new mounts are dung. this is wang the chinese deported typical chinese housewife which is replaced mrs watson nobby yes who is the japanese you know mythical japanese housewife who is forcing changes in the forests market because their interest rates in japan are so low that the housewife who controls all the wealth in japan were bought was buying using the carry trade and other tricks to buy australian dollars or canadian dollars etc so you saw this reflected in the forex market but now mrs watson abhi just like china and japan are now at each other's throat in a new war mrs wenger is now kicking mrs watson avi's butt but going out there and buying gold well it's a shift it's a this is

a period of time change because this is what's not to be for fifteen years drove a central bank policy each she drove interest rates down around the world by speculating wildly in the paper markets selling yen buying icelandic krona or european euro's now there's a new buyer in town and they have a different mindset to what was going on in japan though japan i might say mrs watson obvious now out buying gold as well mrs watson i mean i salute you and mrs you two should get together and make peace because you have a common enemy joe wiesenthal. don't. oh of of the paper turning you can beat joe and every blodgett over there business insider well you know i'm finally speaking of mrs watson abi i want to show this little picture i have here of an actual kamikaze plane during world war two and then cut to the chart of the euro on the announcement of negative interest rates you see this is the currency

war that's proof that the ambition is to be kamikazes either collectivists are not shy about throwing themselves into the fire for the ideological belief rather than having the humility to simply say they were wrong bernanke he would rather kill himself that say i'm wrong and as a result gold going to five thousand and paper money will collapse as all paper money has are i say zero but that's what i'm going to cause a report. straight to the second half a lot more. i am from. the world bank. and every day she says mother buddy. syria or syria in arabic.

brought him into the war beginning look far from. the syrian woman you are. trying to take care. of the struggles of the very most of. i'm planning to stay in russia. to. hear. more news today violence has once again flared up. and these are the images cold world has been seeing from the streets of canada. giant corporations rule the day.

welcome back to the kaiser report imax keyser time now to turn to als or macleod a former banker broker an economist who now runs the website finance and economics or it is writings can also be found gold money dot com he's also director of research also welcome to the kaiser report my pleasure max ok now you say that before the financial crisis of two thousand and eight total gold ownership in the west barely rose despite tripling of prices talk about this yes the reason is quite simple just imagine the two pots of people got one poster here who values something not very much going on all the pot here who values that same thing a lot more what happens it goes from the to. that is the west this is the east and that's what's been happening to go it's the simplest right so you've got this

migration of gold to the east and we've seen it recently with this price drop the prices come in and there's a huge paper selling in new york and other places but this triggered for the first time a buying stampede in the east and this is completely different mostly recently where the price declines have brought out the sellers this is different price because it brought the buyers stock up on what you're saying well that's absolutely right i think you need to draw a distinction between western style investors who basically. buy go with a view to selling into the profit in other words they're looking at dollars they want to come back into dollars or sterling whatever it is and the me on the other hand you've got people who are worried about systemic risk about the system maybe falling over for whatever reason they believe it's likely to happen and what they do is they don't think that gold necessarily is going to go up but they think the dollar is going to go down so they're rational is completely different from the

normal investing mentality which of course is pervasive in the capital markets now there is a call. and this was shown very very clearly when they bashed the price of gold i'm sober or all that happened is that the people who are worried about systemic risk bearing in mind systemic risk has escalated considerably over the last two or three years they came out of the woodwork and added to their positions there is a second thing which the analysts miss the analysts all talk in terms of annual supply mine supply two thousand seven hundred times graph another twelve hundred tonnes whatever the figure is actually the way you should look at it is this is one hundred and sixty thousand tom market and so when some of the holders of that one hundred sixty thousand tons decide that the prices fall into a point where they want to add to their position the effect is far larger than analysts in the city's capital markets generally expect right and principal amongst

this misperception would be the elsa's of let's cut business insider in new york that says when you see paper selling come into that market they're extrapolating this as a as a the world walking away from gold and yet if you look at the in the total gold market in toto this would be the wrong conclusion for well that's correct but the two reasons why they're wrong firstly is the reason that i just put forward that actually that analyzing the small pond the big pile they're looking at the tip of the iceberg not seeing what's on the water the second problem they've got with with that is that some of those eat some of the e.t.f. liquidation could well be people deciding they don't want to have stored in e.t.s. they want to move it out of e.t.s. into something where they feel more confident they have got control over it right so that's a classic move from we can sustain our hands correct so now let me ask you something your research analyst head of research of gold money dot com let me ask you

something because this seems to go against what i've learned in economics the supply of gold available the market seems to be. shrinking and mining is constrained and the demand is incredibly high but the prices are falling somewhat but the paper side of the equation by issuance has never been higher trollies of dollars of bonds apple computer just to avoid paying taxes is going to issue another fifty billion and bonds us more paper but yet the price of paper has never been higher in the u.s. and u.k. bonds are guilty of government bother at three under your eyes based on increase supply so the supply demand doesn't work any more what's going on no valuation of bombs equities and all the rest of it is tied completely to interest rates at the moment is completely to interest rates they are ignoring if you like on the underlying front fundamentals to a large extent so it's completely driven by interest rates and of course with interest rates at zero or very close to zero there is only one way over

a period of time of they can go and that's going to be up and the thing i think that will trigger that is that money will start to move out of capital markets into something else and what that something else is we don't know stage. but if it starts washing out of capital markets then it will do so because there is a if you like a developing fear of stagflation of the least or inflation at the worst now under those circumstances once the money starts running it could start running quite quickly now we've got no idea what the timing is on the house mr bernanke he thinks he's got another two years to play with i suspect it's going to be considerably less than that i suspect that will bring up for a problem later on this year and zero interest rate policy could well be tested by the markets i think it's wrong to assume that central banks always manage to control the markets the comes a point where that control breaks down at the moment they've got contro but i think that's likely to go and probably long before mr bernanke you would like it well the

. response by the holders of the other six thousand tonnes of gold let's say around the world the there's i think the indian population a lot of something like twenty thousand tonnes just in the party people who are buying the least bit safer at least from weddings and other and other things they are victims of the paper ponzi scheme because these low interest rates they manage to do things like move incredible amounts of money from savings accounts to speculators so in this country a lot of the u.k. they say seventy billion pounds on interest on mortgages with these low interest rates but they lost over two hundred billion pounds in a savings account so these folks with the gold their position now is as we were saying on the show it's almost as if they're taking an aggressive position they're looking at this is a way to fight back and the way in maybe ancient times in europe they would have picked up a pitchfork or picked up a torch they're saying you know it we're going to buy gold as

a way to fight these banks hers and i think nigel frosh is a popular politician in this country echoes this theme as well is that to. gilding the lily to use a phrase there or is that really a response i think you're i think you'll gilding the lily a little bit because actually what people are doing is they're trying to protect themselves they're not out in a vendetta against whatever they see danger that's the point there is an enormous amount of danger in the financial system at the moment and people just want to have something out but if i can go back to the indians go back to the indians and this illustrates the point very very well and why we need to understand why it is the indians the chinese nor the rest of them are buying gold an indian who got married in one thousand nine hundred sixty five would have had as his diary as a traditional go and maybe a little bit of his wife would have been given bangles enormous twist now the cost to him of fabricated go and to his parents who would have contributed at that time

was around about one hundred eighty rupees and. over the years as he produced children he would have put more and more of his savings into gold in other words it is his pension pot is the family pension bought today the price is over ninety five thousand rupees there is no better performer in a weak currency than go that is really want to stood the test of time in india and there are a billion people who if the not doing this want to do this you've got the population being unleashed in china and so you can see if you understand that if you understand that experience you understand that these people have not studied keynesian economics they have not studied milton friedman as far as they're concerned it's quite simple we trust gold more than paper money we reckon that gold is a better and more consistent store of value than paper money that is our experience and that is what we're going to continue to do so that vigilantes to sara lee but then combined buying power it will swamp the paper because we've got to move on

because we have some issues here that i meant to bring up with you and i'm chewing up all the time of this interview and i want to get into these issues that you write about that there is a point time when there are so little gold left that futures and forwards markets cease to operate effectively so here's where this demand on the physical side meet see the futures contract the nexus of the paper apocalypse as i call it but are we talked about for years on the show are we at this inflection point will there be a failure on one of these like the comics or l b m a well we will only know that by looking back at this point in time some stage in the future but the one thing that is clear is that whoever is involved with it whether it's the bullion banks which certainly the bullion banks or maybe the central banks maybe some hedge funds the one thing they have not understood is that if you lower the price of anything then you increase demand for it instead they were working off a different mantra the investor mantra if a company's share price starts falling you can spook people out of ownership of the shares because they begin to worry about whether their original assessment as to

buying it was right or wrong that is the invest. approach actually is a very very small part of the total now because of that moving from one pile to another we have a situation where there's very little left in this pile we don't know how much and we don't know what the exposure to it is we know the bullion banks in london for example run a fractional reserve system with gold i don't know it could be you know they could have bill if he's twenty five twenty twenty five maybe thirty times the actual bullion they've got in the area number as much as one hundred times on one leverage yes that was geoffrey christiansen and i think more correctly what he should have said is that one hundred times is the amount of fees commission bank interest. turns and all the rest that you can make out of one ounce of gold i think that i think that will be a better description of it but there is a fractional reserve system underneath for a little brothers was a really good short lehman it was forty the one before blew up yeah and that's and that's our defenders fifty to one so that's there in that range is highly leveraged

i want to talk about open interest you talk of in gold and silver open interest in gold and several what does this number tell us and what do you what are the current numbers tell us because this is quoted often as a number that would either validate or not validate this idea that there is some paper pusher smashing with a naked contract accent or are your thoughts. open interest is exactly what it says it is it is the number of contracts in existence in any one particular commodity so at the moment gold is around four hundred twenty thousand a figure like that now if that reduces then what you're seeing is the overall people are having less of an involvement in that contract if it expands and having more involvement now. the market is effectively run by bullion banks they act as defacto market makers if you like and in that process they will always run a short position so if there are a large number of contracts outstanding then in general terms it's right to say

that the the market making banks probably. a reasonably large short position and obviously the reverse is also true but they can close down that position basically by taking out loans rob of them closing their shorts on the balance the net position if you like it is reduced but the overall. open interest hasn't reduced with it ok so i don't know five hundred five hundred tons of gold in the market as was done friday gone past and sort of looking at it and a lot of those naked shorts this would be shorts that without a corresponding long this would be more or less counterfeiting as some would call it did looking at open interest is not going to tell me whether or not is not a good indicator is going to tell you directly no so that's not a good interest what in europe i mean europe and in the idea is that there was this huge five hundred ton position dumped on the market with the sole purpose of smashing a price and that was the purpose of it. are you in that camp yes i am in that camp

and what i'm not is absolutely convinced that it was the central bank because if you get bear in mind that you need to put five percent money down or a figure like that something like a billion dollars in margin will secure you for a naked five hundred ton sale so it could be a large hedge fund which has decided to sort of trigger trigger the price through the floor get all the stops running out and then hopefully close the positions of profit libraries being manipulated in the credit swap default swap markets we just aren't being completely manipulated and so why are people so resistant the idea that gold and silver are being manipulated i honestly don't know ok but this is staring us in the face. all right as we're glad it's i've done so much for being on the kaiser report that was my precious. all right that's going to do it for this edition of the kaiser report i'd like to thank our guest alistair macleod of finance and economics dot org if you'd like to send us an e-mail please do so

because you reported r t t v dot are you until next time ask others and i know.

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