welcome to the kaiser report max kaiser. the economic theory of hoops. creates expensive facts on the ground and normalizes what otherwise would have been willingly accepted by citizens and consumers of complete rubbish many new markets are opened and told was erected by those with the connections to get away with. my bad economics is too bad for everyone else writes. yes max this kind of goes hand in hand with disaster capitalism this is like connected guys whether politicians or financial elite make giant mistakes and they say oh my bad well we'll have to use my you know month santo round up weed killer to fix the whole problem well the

first one we're going to start off with a political bad costs soar as wealthy counsels re house families and hotels m b m b s bill to house the homeless and westminster rises by sixty three point five percent as thousands of people moved to temporary accommodation so max the government's clampdown on benefits whereby they cut the amount that they would pay per week for apartment rentals well rather than cutting costs especially different costs up right well we have a parallel phenomenon in society called the arsonist the arsonist sets fires in part because they like the chaos it creates and they can go put out the fire so harry corporations and government policy makers and sometimes those the same people who are like arsonists. create havoc and destruction

and profit from the cleanup so they say oh sorry it was a mistake however they keep making money from their mistakes and society keeps getting destroyed by their mistakes and there's no law against financial arsenic and the other problem of course is that. had george osborne gone to the public and said we need to get rid of all these poor people we don't want them in our expensive city why do we want them here that might have caused a different sort of conversation here they said we're just helping everybody out and we're doing a positive thing we're doing that anyway so then the poor are forced into temporary accommodation into hotels then you could also presented as like they're living it up in luxury hotels why should we pay this and next it'll be with walton's i was born and cameron can't overtly come out and say on channel four news here in the u.k. that they're against poor people but they have policies that they put in place that

accidentally and pushing poor people out of the city putting that into accommodations where they are then scapegoated as welfare queens meanwhile his contractor buddies clean up on the contract fees well you know that again this goes hand in hand with disaster capitalism we saw that in new york who were in new york for many many months almost a year after the hurricane you still have people living in the fema camps inside hotels it's a boon for them because they charge the full rack rate now here let's move on to another global actual my bad situation this is of epic proportions study finds more pests are growing resistant to genetically modified crops so this is from u.s. and french researches what they found out was that a key aspect of so-called bt corn and cotton plants that carry a gene to make them exude a bacterium called best silis third ginnie says which is toxic to insects well of

the thirteen major pest species they studied five had already grown completely resistant by two thousand and eleven although it's thirty not including george osborne who if you include george osborne there's fourteen major pest species and he like all these other pests are immune to these. toxicity toxicity. by not biologically engineered pathogens that are used stuff simply to better society by making food cheaper and readily available but ends up as you say the hoops my bad theory of economics where it doesn't work they profit from the chaos as any good arson would arsonist and we have to suffer the consequences well importantly how is this so important to my bad is that monsanto or side gent and the other genetically modified sort of corporations they own the patents to it so if they're genetically if they own the patent on the meat then they get there the

only ones that are allowed to provide the solution now we solved months and to recently do a huge my bad which was that an organ farmer found genetically modified we owned by monsanto which has no approval anywhere in the world and they're like oh my bad that's not supposed to happen but we saw us in canada where some of their genetically modified steve blew into a farm of a guy who had no idea and then they sued the farmer for patent infringement but i think you have to understand that this goes against everything we've learned from darwinism or selective or the the fittest survival of the fittest here you have people forcing survival of the worst using patent law so here they have a product from monsanto that clearly is inferior to what is already existing in terms of crops being able to sell for generate they force it onto society using patent law and you have survival of the stupid historic stock or so you leadership by the worst again george osborne comes to mind just so you understand the

implications of what this could mean for the world in the global agricultural food supply is that bt corn accounted for sixty seven percent of corn planted in the united states in two thousand and eleven and bt cotton for between seventy nine and ninety five percent of cotton planted in the us. china and india so we could have a global bad catastrophe of epic proportions if these super beast super passed or merge super pasts there are some at number ten downing street and number eleven but i think also people need to understand that genetically modified organisms in the food chain is a subtle insidious form of inflation because it happens is that the food prices and we see this in india all the time indian farmers because of monsanto products the price of economics of farming becomes destroyed for the local farmer who when they are killing themselves of course monsanto does writes those suicides off as the cost of doing business there very callous and insensitive and sensitive about that

there is a bit of a program of indian farmers to benefit the shareholders of monsanto so speaking of super pass let's move on to another giant story many have covered this but it's interesting to compare it to the whole global financial and banking system banker falls asleep on keyboard at work accidentally transfers two hundred ninety three million dollars a german bank employee was supposed to transfer just sixty two point forty euros from a bank account belonging to a retiree but instead fell asleep for an instant while pushing onto the number two on the keyboard making it a huge two two two two two two two two year order to many to use order sort of like a lot of money two hundred twenty million dollars that was just kind of fabricated into existence but then you step back for a second and you realize that the federal reserve bank in order to keep the american ponzi scheme going every single day has to print in a similar manner two billion dollars well in fact what we've seen is when the

global financial crisis started to happen in two thousand and seven in two thousand and eight the banker said oops my bad we created hundreds and hundreds of trillions over a quadrillion and driven gives us we don't know actually who owns them we don't know who owns the mortgage on your home we don't know any of this stuff so the central bank said oops we're just going to keep on press. this print but in printing more dollars everything has been an oops and they're going to say one day we created too much debt from the central bank we don't know who owns anything let's start over and we're seeing that right now as a matter of fact and rising bond yields which is the inverse of crashing bond markets something we've been talking about what happened this year we've been saying this for a few years now that the my bad economic model of just covering all mistakes with more money printing would eventually cause a bond market crash which of course would really cause another real estate market crash in cities like london and elsewhere and re cause another leg of the global financial crisis which people will say it's a new crisis but it's

a continuation of the same crisis and that when this banker in germany is a very similar story to the flash crashes we have and the same thing is during those flash crashes the likes of bart chilton from the c.f.c. sea have said well people clearly made money bankers did make money somebody made profits on these flash crashes but it's such an oops catastrophe that we can't possibly unwind and figure out who illegally profited from it so let's everybody put on a stiff upper lip and carry on you know you mentioned this stoops my bad economic model made the connection to disaster capitalism but disaster capitalism infers a certain degree of premeditation going back to the neo liberalism and milton friedman who famously would say never let a good disaster go to waste and they had plans on the shelf and whenever something blew up they pulled those plans off the shelf when they'd raise taxes or they impose financial repression and. but this is

a new level of irresponsibility by our leaders like the born to the camerons the obama bankers in the monsanto's of the world where instead of just waiting for a disaster and then bringing in new policies to capitalize on these disasters they are actively like ours. it's setting a fire these economies and these countries farming communities and industrial communities in a bull blatant act of of of of tyranny i mean that's the word it comes to mind is that they're acting blatantly tie radical and to profit from the chaos yes and now here we talk about the bad banking system. now that kind of meets in los angeles in california in this next headline where we had the situation where we could have decided there actually was a whole public transport system where people could have been free to not have

themselves chained to a car depreciating assets with it ever inflating insurance costs to drive to get your vehicle on the road and we have this. my bad entire american dream in this final headline high prices are driving more motorists to rent tires chain such as rental wheel and rim co are seeing business boom many consumers pay double or triple the cost of buying and face aggressive repossession policies so rent to own tire shops are among the newest arrivals to a sprawling alternative financial sector focused on the nation's economic underclass like payday lenders pawn shops and buy here pay here used car lots tire rental businesses provide ready credit to consumers who can't get a loan anywhere else but that access doesn't come cheap another form of insidious and subtle inflation so they officially america says the inflation rate is between

two and three percent like they do here in the u.k. but look under the surface and you find things like rent a tire shop people can't afford tires so they're renting tires and i read the article the the amortized cost of the tire ownership over a year or two is something like eight or nine hundred times the price of just going on buying tires what you need to get to the shop right now to get your drugs wal-mart so you need the tire right now so he willing to pay it's exorbitant fee and also the payday lender who alleges the money to rent the tire to go get your drugs that are also because of tat law exorbitantly priced and you end up with a permanent underclass in america but that's not considered inflationary it's a program it's a whole of cost of consumers but it's not inflationary because. the arsonists just count how much smoke comes out of germany of all these incinerated lives and that's all they pay themselves but that's not inflationary that's economic progress that's why the american dream loops so i heard the country all right they said it but thanks let's bring in the kaiser part thank you max state of the second half

a whole lot more. choose your language. we can't without in the financial system still some. choose the consensus to. choose the opinions that you think are a call to. choose the stories could you. choose access to. nobody chooses to be homeless no one chooses to me and our sorrow. is that was for the show to. get in the six pm get out six be a six. day war room

a serene school day or. not to me the class before the. days that were against the war. it's tough to think about all of them comes to us and to know that many may not have only been lost to won't never believe me but there are also due to foreclosures that never should have. been. opened. and.

welcome back to the kaiser report imax keyser time now to go to dublin and speak with mark o'brien of gold core dot com michael bryan welcome to the class report so i mean i got mike's mark o'brien gold and silver and the mainstream media says that the bubble has burst your thoughts well the mainstream media hasn't exactly cover themselves in glory and they have covered the gold markets in recent years a member of the early two thousand. despite raging legal for the battles the

mainstream media rarely if ever covert gold and when they did cover gold it was covered in a very negative way whereby it suggested it was volatile it was risky it was a barbaric relic and they quoted an assortment of different stock brokers and bankers who would peddle that basic that very negative view of gold and then it's interesting once gold began to perform and i'll see how the global debt crisis manifests itself and the people who were warning about the debt crisis and advocated owning a position in gold bullion as diversification people such as yourself when these people are proved right and the gold price. went up and value had been suggested that it would buy these people i went up from two hundred fifty dollars in early two thousand and six to over nine hundred dollars per ounce and the major dent changed tact and rather than saying gold was risky or commodity they said well

now it's risky because it's a bubble so they've never predictable the first place will suddenly decide to say it was a bubble and that actually happened if you remember people started saying goes above the end when gold got above eight hundred fifty dollars france i remember the first calls of gold bubbles and then we got tears in dollars there was more versus sypher sculls including from such notables as nouriel roubini who famously predictors where when gold was over one thousand dollars. heading towards one thousand two hundred dollars that was it was a boy who was going to hold very very very sharply he was arguing let me jump in here we'll get to remain in a second but one thing that's come up that's counter-intuitive i should say counter to every law of economics known the price drop has caused record global demand for gold bullion people lining up out the door in shops and bank of india china how is this commensurate with the falling price is that make any sense doesn't this prove without a shadow of

a doubt that gold just like live bore just like the energy market just like the credit default swap market is being managed by the government and now we know the government works with the n.s.a. through their prism program to trade on insider information inside data and to manipulate markets isn't this phenomenon of record demand for gold and falling prices proof beyond a shadow of a doubt that the gold action trust committee and others that have been calling for market manipulation have been one hundred percent correct mark o'brien. i think it is i think very soon that will be realized i don't know if you sort of story overnight bloomberg broke a story quite important story saying that banks have been rigging the global foreign exchange markets to currency markets which is a huge story so we know libel was manipulated. desecrations into the gold silver market market's been manipulate for a long time to see if you see an upcoming vote on the conclusions but now the

bloomberg investigations concluded that the currency markets are manipulated so i yeah as you said we fundamentally the car to me here between global demand and the actual price but what's happening is the paper price is very much this disconnected from the actual real world of physical supply and demand and the massive sell off we saw in april i mean it was it was phenomenal it was. what was the figure again twenty billion dollars worth of gold was sold in a matter of minutes which was about four hundred tons of physical gold sold into marketplace so i did cripple the foreigners and so their futures contracts not backed by anything as you know futures contracts are leverage in the litter no a backing up roughly fifty to one hundred support leverage and i'm not four hundred tons of soul it's a marketplace in a number of very very large trades which saw the price plummet fifteen to twenty

percent that was the that four hundred films is equivalent to about fifteen percent of the new gold production so i think i might let me jump in and just you know what you're saying there and if we look at the summer market for example there is in a condition right now where it requires fifty times more by orders to move the price up a dollar and it does move the price down a dollar in other words in a fair and orderly market you would say that roughly the amount of money it takes to create an uptick versus a downtick is roughly equivalent this is called the price discovery mechanism. but for several years now we've seen a situation where it requires fifty times more dollar purchase amounts to move the price of silver up one dollar than it does it take it down one dollar so clearly that market whether it's the n.s.a. working with goldman sachs or j.p. morgan is rigged in a way using prism and other technologies i'm very familiar with of course having

developed a lot of these technologies back in the ninety's but the market has raged in such a way that it recognizes a cell order to have fifty times more weight as far as a computer is concerned than a bio outer and you have this distortion in the marketplace i want to ask you mark o'brien about on the ground in ireland of course ireland is one of the first countries to go into the troika meat grinder the i.m.f. meat grinder they've been destroyed like greece has been destroyed the valuable assets are now falling into the hands of private contractors defense contractors mercenaries the same people that support prism and the global police state are the people in ireland now are waking up to the fact that gold and silver are part of the way that they can preserve their wealth and sanity while the poll graham of the troika the financial holocaust sweeps across the europe the people of

ireland waking up to this mark o'brien are they still relatively in r.t.e. the global broadcast news coma. the vast vast majority aren't waking up that there are a minority as there are a minority tried to rescue in our own we were very slow to to wake up to it's part of the media there's a combination of genuine there's a lot of misunderstandings and there's a lack of awareness of walk old is people have been brainwashed and conditioned by the so-called financial experts by a so-called financial advisors to believing it's just before the goals of barbaric really. that stress heat up the bubble you know and they've been continuously warned about this you know so there are only men are to people who are buying gold to protect themselves from from the economic dislocations that are coming. and that's in marked contrast to the people say in china engine i'm sorry the western world to realize that currencies are being devalued on the base and i realize the importance of owning physical gold there's also phenomena whereby journalists of

confide to me that they have felt pressurised by editors and there have been conversations between governments and media they silly notion of that they think that if they discuss talk about why people should own gold that this could create a run on the banks and i mean what creates a run of the banks is what we saw in cyprus and i balan's which unfortunately for coming in trying to world a scene and the f.b.i. see by giving of documents so but there is almost a pressure on people on the media not to cover gold in a positive light and they're for the vast majority do not understand gold they don't know anything about gold they don't know the price of gold and yet at the same time some of the majors actually convey the impression that there is a gold rush going on that the majority people are piling into gold and therefore that suggests gold is risky because everybody's wangled in quite the opposite as is the case it's again the smart money is why gold but who are quite wealthy investors high net worth people who are more aware of the risks that are going on in the

world these are people who are buying gold mixes gold today not on the street who yet they are not aware what's coming and i think it's much the same the u.k. i think the parallels with the u.k. i think the u.k. just a few years behind our owns. i do think the u.k. property market pickier in london but also the u.k. bond market this huge bubbles that are about to burst and they are the real bubbles in the world which we should all be really worried about not the nonexistent bubble in the gold silver markets yeah there are jobs barnes new help to buy ponzi scheme for the housing market in the bond market of course will end in tears and i'm not. being across the bond market as you point out are in genuine bubble and you make something a point interesting point about the media they will simultaneously say that gold is a far barbarous relic and you should look at it and but for some reason there's it's in a bubble so they're speaking in this typically duplicitous manner that really is

the characteristic of mainstream media now across the globe should also be pointed out that along with the millions if not billions of individuals buying gold in the east effectively draining wealth from the west central banks around the world since two thousand and nine have been buying gold aggressively principally russia china and others who are poised to do quite well in the bond pocalypse as a collapses now let's talk about the dynamics of gold mining it's up because i know you cover this pretty pretty closely the supply of gold is running out in places like the comix is running very low there inventory j.p. morgan's gold vaults are now almost completely out of gold as gold is being drained from the system. but what about new gold coming on on line the what is the current cost for extracting an ounce of gold and what sort of distress are we saying from miners at these price levels well i guess that's a fundamental question i when the media covers gold you know you tend to get

soundbites about what's nouriel roubini said about gold watch your sources don't are not don't with his gold and gold investments and they don't tend to do any every person i was the actual fundamentals driving the marketplace which markets ultimately are dictated by the laws of supply and demand so globally production has increased very incrementally in recent years despite the massive increase in the gold price and there are concerns that at some stage we may be coming close to pico production because or grades globally are declining and i haven't any new very large gold was found for a large number of years with this society in terms of the cost of production i mean i think there's different estimates but the real fleet people believe that the average cost to extract one has to go from the ground it's a very very energy intensive very costly business and cost roughly one thousand one hundred s. and seen one has once has one hundred one thousand two hundred dollars per ounce so

i think it's lower prices it's simply not economical for the mining companies to mine and we put out a chart in our market update there recently showed when we had the last sharp sell off in gold and we saw similar calls that go bubbles over when the go price fell twenty two percent back in two thousand and eight two thousand and seven two thousand and eight that actually led to a gold production full of about nearly ten percent of one point four nine point five percent so the price fell twenty five percent production fell concurrently on the same thing is going to happen again now which will so perversely it's actually going to it's going to be bullish for the gold price because it means less supplies going to come out to ground and it means the fundamentals are even sounder for the medium to long term all right mark o'brien that's all the time we have thank so much for being on the. as a reporter about stocks i mean ok and that's going to do it for this edition of the kaiser reply with me max kaiser and stacy herbert i'd like to thank our guest mark o'brien of gold core dot com that's g o l d c o r eight dot com if you'd like to

send us an e-mail please do so i reported r t t v dot are you like some ice kind of thing you know. i would rather ask questions for people in positions of power instead of speaking on their behalf and that's why you can find my show larry king now right here on our t.v. question more. will

be here very. very. very for. you. thank. you and i think. seriously very very. thankful. he. was. in. giving you all before you actually move the move.

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tell me that at least. a few. spying on e.u. european nations are finding out america's secret surveillance program was monitoring. the n.s.a. defends itself by saying it was preventing terrorism. by ministers deadline for an end to public protests losing to. threatening an even harder response despite accusations the police have already resorted to unprecedented brutality. and a mass media strike is under way increased way unions are protesting the shutdown the state broadcaster as part of a cost cutting program.