at eight pm. 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 directed 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 roundup weed killer to fix the whole problem well the first one we're going to start off with a political my bad costs soar as wealthy counsels re house families and hotels and 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 cas it creates and they can go put out the fire so here you have 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 cause 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 oz born and cameron can't overtly come out and say on channel four news or in the u.k. that they're against poor people but they have policies that they put in place that accidentally end up pushing poor people out of the city putting the into combinations 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 we 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 i carry a gene to make them exude a bacterium called best silis third jenny 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 not including george osborne who would if you include george osborne those fourteen major pest species and he like all these other pests are immune to these. docsis toxicity. why not biologically engineered pathogens that are used steps a plea to better society by making food cheaper and readily available but ends up as you say the loops 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 their 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 oregon farmer found genetically modified we owned by months and 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 that 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 on to society using patent law and you have survival of the stupid historic stock received 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 my 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 your order to many to use order sounds 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 in your 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 and two thousand and eight the banker said oops my bad we created hundreds and hundreds of trillions over a quadrillion and driven halves 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 recall 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 that this group 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 oprah 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 arse. 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 ty radical and to profit from the chaos yes and now here we talked about the spy 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 asset with it ever inflating insurance costs to drop 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 that wal-mart so you need the tire right now so he willing to pay it's exorbitant fee and also the payday lender the lender 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 an apartment 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 an american dream loops sideburn the country i say sir thanks let's bring in the kaiser part thank you max taking over the second half a whole lot more. i would rather ask questions for people in positions of power instead of speak on their behalf and that's why you can find my show larry king now right here on our t.v. question more. the

worst year for the most. white house of the day the radio guy minutes from a quick thing i want you. to do because you've never seen anything like this. let me let me i want to know we're going to let me ask you a point. here on this network as we're having the debate we have our knives out if. the right against the scientists bad staying there again we're in a situation where b.

and i don't agree to talk about surveillance me. 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 mark o'brien watching the guys 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 as 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 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 are 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 in value as had been suggested that it would buddy's people went up from two hundred fifty dollars in early two thousand 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 no it's risky because it's a bubble so they've never predictable in the first place was suddenly to sort of say it was a bubble and that actually happens if you remember people started saying goes above

one go 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. and 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 and look at the remaining 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 the currency markets which is a huge story so we know libre was manipulated. desecrations into the gold silver market market's been manipulate for a long time to see if t.c. and i'm not coming out i mean conclusions but now the bloomberg investigations concluded that the currency markets are manipulated so i yeah as you said well it's

a fundamental call to me here between global demand. that 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 the marketplace so i did cripple the forests and so their futures contracts not backed by anything as you know futures contracts are leverage in the new litter no a backing up roughly fifty to one hundred to leverage and i'm not four hundred tons of soul it's a marketplace in the number of very very large trades which saw the price play much fifteen to twenty percent that was that four hundred tons is equivalent to about fifteen percent of the new gold production so i think i mean i am let me jump in and just you know what you're saying there and if we look at the server 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 than it does to move the price down a dollar in other words an unfair 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 is rage in such a way that it recognizes as celluloid or 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 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 wake up to it and part of problem is 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 to so-called financial advisors to believing it's just before the goals of barbaric. that's risky it up to bobo you know they've been continuously warned about this you know so there are there's only one or two people who are buying gold to protect themselves from from the economic dislocations that are coming. in and that's in marked contrast to the people say in china engine i'm sure the western world to realize that currencies are being devalued and the base and i don't realize the importance of owning this will goals there's also a phenomena whereby journalists because i've made that they have felt pressurised by editors and there have been conversations between governments and the

media they it's just silly notion of that they think that it's they discuss and talk about why people should own gold that this could create a run on the banks and i mean what creates a run in the banks is what we saw in cyprus and i'm balan's which unfortunately becoming a trap the world at c.n.n. the f.b.i. see blanketing the documents so but there is a almost a pressure on people and on the media not to cover gold in a positive light and they're for the vast majority do not understand god 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 conveyed 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 feeling gold and quite the opposite is the case again the smart money is buying gold who 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 like his 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 are and i do think the u.k. problem are completely are in london but also they had the u.k. paul market this huge bubbles that are going to burst and they are the real bubbles in the world which we should all be really worried about not add to nonexistent bubble in the gold and silver markets yeah it was do our jobs markets new helped devise a ponzi scheme for the housing market in the bond market of course will end in in tears and as. looking across the bond market as you point out are 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 we 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 itself 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 seeing 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 as gold investments and they don't tend to do any every

course analysis of 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 the 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 the cost roughly one to one hundred and asked if he wants has wants has one hundred one thousand two hundred dollars per ounce so these 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 at the gold bubble is over when the gold 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 of ground and it means the fundamentals are even sounder for the meat of the long term all right mark o'brien that's all the time we have thanks so much for being on the. as the replies are. ok and that's going to do it for this edition of the kaiser reply are with me max kaiser and stacy herbert i'd like to thank our guest mark o'brien of goldcorp dot com that's g o l d c o r e dot com if you like to send us an e-mail please do so at kaiser reported r t t v dot or you feel like someone is causing you know.

the worst year for those things. the white house of the day the radio guy in fort lauderdale is minutes from a quick profit i want you to watch closely or about to do because you've never seen anything like good times roll. you know sometimes you see a story and it seems so for lengthly you think you understand it and then you

glimpse something else and you hear or see some other part of it and realize everything you thought you knew you don't know i'm tom hartman welcome to the big picture. i would rather as 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. to

live on one hundred thirty three bucks a month for food because you know how. i got so many i mean. i know that i'm sitting in the same thing really messy. and they're all very so personally apologize and. worse you're going to fly down six of a day and a radio guy in fort lauderdale minestrone. i want you to watch close for a politician because you've never seen anything like this i'm told. reading folks i'm having martin and this is going to set good news guys to.