bonds oh. that's the yes so here we're going to introduce this first headline poor english saved japan's banks from crisis this is from. the finance minister and he says many people fell prey to the dubious products or so called subprime loans japanese banks were not so much attracted to these products compared with european banks mr also told a seminar in tokyo managers of japanese banks hardly understood english that's why they didn't buy he said. well i can understand where he's coming from on that you know and i said a lot of french t.v. i would call jamie diamond lloyd blankfein curse words and names and all kinds of scatological references to their being and the french of course are to speak english so they would just say yes i agree with you that's fantastic well but the other thing of course is that he could argue this but the fact is also that the english speaking bankers did not understand

a single thing they were buying or the pension funds or the small time investors had no idea what all the gobbling goop even though the words themselves were in english it was all just complicated mishmash of the words jammed together to hide basic simple fraud well you know let's break this down a little bit more because in japan they were not required to buy the collateralized debt obligations and all the flora and fauna of the writ of contracts that came out of the imagination and the. many of wall street financial engineers because all japanise had to do these past ten years is to allow their interest rates to trade near zero the cheapest interest rates in the world to become what's called a funding currency all these collateralized debt obligations sold by goldman or j.p. morgan or deutsche bank are financed with the interest rate cheap money of japan. so japan is the well from which all the cheap money comes to float the global

quadrillion dollar derivatives market and has been that way for ten years and this is why that bubbles about to burst so they're not required to buy these derivatives that ass so is talking about that's not their role their role is to finance the creation of these derivatives and so the fact that he's saying well we didn't get the trouble because understand english is just trying to make a joke that all our banks are somehow sound they're not sound they're sitting on all kinds of bad stuff because they've been the funding currency in the kamikazee currency called the japanese yen kamikazee currency japanese yen well max now how. the market language is the price signal so i want to talk about the price signal that nobody no longer understands because it's not it's no longer translatable people aren't able to understand what is being said by the price signal c.m.e. pulls wash trade proposal and first of all max what is a wash trade well washrooms are

a way to manipulate prices manipulate markets so let's say google stock is that six hundred dollars a share or seven hundred dollars a share you throw in order simultaneously to buy and sell washing those orders at a price that you want the stock to go so let's say the stock of google is six hundred dollars and you want the price to go to six hundred five you throw enough simultaneously buy and sell orders at six o five and so the price gets to six o five so if you have options that are going to pay off at six o five and then you throw a lot of wash trades and to get the price at six o five then you make money without taking any risk or if you make a mistake then the state bails you out is called communism in america well that's what people will argue that a free market is the price is always right the price signal is correct because for every buyer there's a seller for every seller there's a buyer but here you're saying that the guy buying is also selling he's trying to manipulate the price he's trying to create a price now the c.m.e. group introduced some voluntary reporting of your washer is so basically they're

making it a rule but. the c f t c has squashed this for now because they say watch trades are banned by u.s. law because they can feed false information into the market and be used to manipulate prices intentionally taking both sides of a trade can minimize the risk for the trading firm while potentially creating a false impression of higher volume in the market and bart chilton of the c. f.t.c. is saying that this is sort of what high frequency traders are doing they're sending out loads of spoof trades and wash trades in order to create and benefit from the rest of the market they're scooping out well for the rest of the market right well instead of a price resulting from buyers and sellers in a process called price discovery price is determined first or calculated first or mentioned first and then you fill in the trades to get to that price but decide if there's no sellers get back to the japan being

a funding currency as relates to the federal reserve bank and jamie diamond so jamie diamond and j.p. morgan all put a bunch of wash trades using zero percent money to get prices the word they pre-determined their them to go through manipulation and then the buyer and seller or the buyer of all the debt that they used to get to that trade is ultimately the federal reserve which is backed up by the bank of japan and zero percent interest rate so that's where all the risk is the buyers are the governments are sitting on a hundreds of billions and trillions of dollars of bad debt that they keep having to float and roll by quantitative easing that's that's the buyer of all the wash trades ultimately that it used to manipulate prices and of course the edward snowden scandal brings in the other dimension where allegedly firms like booz allen and others and. keep b.m.g. are involved in the data selling to make this even less risky so in effect quantitative easing is a sort of watch trade because here the the government of the united states is

issuing debt and then they're buying their own debt in order to create what they want it to be the price they want to send a price signal. about the strength of the u.s. economy about the strength of the u.s. dollar about the strength of the reserve currency of the world but they say look it's deflation because interest rates are so low but they're engaging awash trades by selling debt and buying that simultaneously to create that inflow interest rate that they say is deflationary meanwhile they're inflating the biggest bond bubble in the history of the world which is as we've been saying and warning about is in the process of bursting interest rates are ticking up and this will be a fantastic glorious collapse of this central planners of the federal reserve bank and other central bankers well though global real genuine world reserve currency the world reserve money has always been gold and that's the other side of the strait of the wost trade the one that actually can't be washed traded away so we're going to talk about gold here in this headline because this is another price signal that nobody no longer understands it's suddenly the price signals are speaking

another language that nobody understands but the ones manipulating so we're going to turn to a little clip from c. and b. c. in the interview rick harrison of points. rick harrison as a part time job is a point pole dancer over there sanity for marion bartoli. well and portfolios well he's a pawn star so he runs a massive chain and he has four thousand customers a day just alone in his last vegas shop so here is what he was asked by sam b.c. what he thought of the falling price of gold is business different where you are because of what's going on. here i also retail a lot of gold and silver and i'm having a real difficult time right now getting physical battle. it's the crazy world of gold and silver sometimes you know the paper market it's going down but you carefully find the actual physical ardor but that's another aspect of the wash trade of gold price suppression if you want interest rates low and you want the

price of the dollar to be simultaneously again wash trading over. different asset classes price of gold to be lower and this gentleman points out from pawn stars that the demand for gold has never been higher but the prices dropping that's a clear indication of price manipulation same thing with the bond market the supply of bonds has never been greater and the prices have never been higher in three hundred years in the u.k. or two hundred thirty eight years in america that's again it's a complete repudiation of supply and demand the price discovery and economics as we know it we've seen reports over the past few weeks of unprecedented demand for tens of thousands of people lining up outside gold shops in china and dubai in india in vietnam in bangkok and yet the price that keeps on being talked about on c n b c is the price signal being chased by this like cat chasing one of those laser pointers if you go to youtube and google it you'll see lots of cats chasing leaser points

and they're being steered in the circle by a prop false price signal they're chasing a price signal that is lying i call the price propaganda people react to a price emotionally like a cat to a laser dot on the almost on the wall and if you can manufacture a price you can get the masses of people to pant like dogs toward that price if you know and if you see the dow jones of fifteen thousand that's a manufactured price you see all the the you tube and the tweeters you know clapping like seals on the beach like oh that means something even though it's a prize prop again it's meaningless well then finally here in terms of understanding language and price propaganda they combined in this final headline this is a follow up on the anglo irish tapes hash tag anglo tapes i'll probably punch lenahan drome he told the world we are solvent now he can protect his hundred billion euro guarantee by writing us a three billion euro check get on with it so this is david drum of course the

former c.e.o. of anglo-irish talking about his upcoming me. eating with brian lenihan and he said he was going to punch him and tell you've already offered us one hundred billion euro price guarantee just give us the money or else the markets are going to go crazy and investors are going to get scared in the population is going to be scared give it to us yeah well look there's a guy who's threatening violence against the irish people and who have bailed him out and i've said all along that bankers to deter them they should maybe face capital punishment and the people said no capital punishment is too much you can't engage in capital punishment and yet we're talking about a banker who threatened violence against the bank and the state unless they gave him billions of dollars so the irish people you're never going to win this fight unless you're willing to fight this fight but you know keep picking them shamrocks whatever you do get us. all right stacey newman thanks so much for being on the kaiser report thank you maggie stay tuned for the second half whole lot more.

talking about language as well but i will react to situate him to reports. no i will leave that to the state department to comment on your. security on the job here. you know more. when you need a direct question the press for a change when you. get ready for a. pretty speech. sounded pretty much.

choose your language. call it we can with. the consensus. choose the opinions that to. choose the stories that impact to. choose the access to.

welcome back to the kaiser report i'm max kaiser time now to go to investing legend and fashion plate jim rogers jim welcome back to the kaiser report. later to be here about all right jim rogers gold has had its worst quarter in thirty years is the bull market over. well max said that's a very good question and depends on how you define it you may remember nine hundred eighty seven stocks down forty to eighty percent and many people said the market was ok was it over in retrospect no it was not at all all right and my point is that i my view the bull market in gold is not over it may go down another twenty or

thirty percent but by the end of this decade it will be much higher right so the fundamentals that are supporting the gold market are still in place that you did call for a pullback a company last year you said you were looking for a pullback to satisfy i guess healthy bull market has shot pullbacks every now and then have we had that pullback now in this bull market are you satisfied are you buying or are you looking for maybe a little bit more of a pullback i bought a tiny little this just in chase but i would max them to world's worst market time the world where a trader but i would suspect that a thirty percent thirty five percent is not enough to make your final bottom i suspect we're in the process of making a complicated bottom which may take a few days weeks months maybe even to another year or two but then ultimately though will make it back to the bottom even if it's down fifty percent from its.

and then it will be off to the right ok. that ok i want to stay on gold for a second the price of gold is now lower than the cost of production for many gold miners barack is writing down billions on one mine so isn't this going to affect the supply of gold and. the dynamics of supply and demand going to kick in here at some point. well some point but max i don't think many commodities below the cost of production for your to it's great because people are very reluctant to close my clothes out of oil whatever happens you know it's very expensive to close some things out and start it up so it can study below the cost of production for longer that we like i want to ask you really to put on your journalist hat for a second because you're an singapore you're in asia and you can give us direct man on the street reporting whether this is true or not are people lining up in asia in bangkok and other places to buy gold physical gold at the shops is astrue yes and

april and even into may there was some of that but that's the sure that still people lined up but it's not nearly as much as it was the first time go now jim you've taught finance and economics at columbia university how is it that their demand for physical gold is so large and yet the price goes down how is that possible professor jim rogers yes the demand is large but if you're talking about people shop buying go but more people selling the that's gold as well a lot of people selling that that go and that's why the price is going down goat is rarely if ever in the physical market go prices any more than we reprice the market they're all set in the futures markets are you in the camp that believes that there are more paper claims on gold then there is gold in the physical

existence and what i mean is it seems that there is an agenda here those that are supporting the paper market love to see the price of gold go down and they're willing to even manufacture naked claims against gold so-called naked short selling to make that happen are you are you in the camp of those to believe this is what's going on or what are your thoughts there jim rogers. what i said about the futures markets and we need a much larger than all that we. in the world always says but when you say naked short selling i'm not max that's not the way my everybody who's in the futures market is. no such thing is that's how futures are when you still go to our own oil no we don't cotton you're selling make it you may have it but most people don't that's the way those markets were not like where you can so make it shorter or you have to be long you have to borrow it you don't have to borrow in the futures market you don't have to borrow anything just call up your broker and start selling

it on the internet right and people can simply call up their prime broker they can establish a line of credit and they can start selling short gold all day long no matter what the actual fundamentals are regarding that commodity and i want to switch gears and talk about bonds for a second. the bond market many people and yourself included i believe have been looking for a top in bonds the bond market seems to be having reached that point now in a thirty year bull market in bonds and we've seen the top in this bull market in bonds it's been going on really almost your entire career jim rogers we've had the bull market in bonds is there now a reversal by the bull market started in bonds in one thousand nine hundred eighty one when that made this low in september of one nine hundred eighty one going up that was i max not all the top and bonds were five times that are wrong but fortunately for me the last two times i've got it right i have no idea. where not i

am sure what junk bonds not government on and you can ask me in three years if i got it right or not i don't know if this is a soft max but i do know we're getting closer and closer all right let me ask you about a comment made by richard fisher he's the president of the dallas fed he called bond traders quote feral dogs likening their reaction recently. a selling bonds to the news of the fed tapering that is to say the fed stopping their quantitative easing he made a comparison to george soros as attack on the pound. so here you have a group of market players that used to be called bond vigilantes and applauded for being bond vigilantes now the richard fisher the president the dallas fed is calling them feral hawgs is that a bit unfair jim i know richard and i don't know him well but i do know him and he's a smart guy i do know that whenever there's some kind of. comment better or anybody

else people react the moment you know that as well as i thought it was nice to be and. if he would get a report about pot go and sell or buy pot based on the report this is the way market work markets work richard knows is this you're going to ankie who's never going to write about anything came out and said x. y. and z. the markets react what is expected everybody just say ok if you do what mr bernanke says let's ignore it come on that's not the way markets work. now imagine ben bernanke ing and you're a critic of ben bernanke and the whole methodology of the federal reserve bank which mimics more of a poll of b.r.l. style central planning than free market here in the u.k. we have now mark carney he's taken over the bank of england from urban tang he comes in from the bank of canada he's being lauded here in the u.k. as a savior as a rock star of economics as almost

a jesus like figure who will save everyone in the u.k. in europe your thoughts jim rogers. mags go back and look at every time somebody has been appointed sure the head of the central bank in the past when you third year they're always brought in is rock star when thank you was a rock star greenspan was a rock neither one of these guys had a clue what was going on i got it wrong over and over and over again but every time they break them in the press because of the government p.r. these guys are geniuses and they're going to study but unfortunately unfortunate for all of us is rock stars and turned out to be men with feet of clay and they haven't known what to do it and they're going to lead us all into a series they are leading us into a serious serious problem well so they're kind of yes then he will print money just like everybody else that's not a that's not going to save us right now seems up to me the philosophy of the central bankers including mark carney is to look at asset prices and bond prices as

their pricing is all that they work off of and but they don't seem to take into consideration other areas of the economy that are suffering so they have a very myopic view. of the economy and what they're supposed to do it's a matter of that economy how could the central bankers expand their purview to be more effective or to we just get rid of them completely. the world listen to america first america had three central banks are history the first to disappear did you know the world can get along without central east central if we don't have central banks next we have a problem obviously good that the central banks the worse than having no central bank at all what's in the sense of making so many states many mistakes at least in the us we're going to get rid of these are going to go bankrupt because there are so many of them then she the buggers just. got us into such terrible trouble let's

get rid of the central bank as it's happened in the fast look at the japanese central banks that guy is hailed as a hero at the moment you know he is going down the value of the currencies it's japanese in twenty twenty five percent now that's great for stock brokers and people who won't stop but don't hundred twenty five million japanese max and every one of those people who are now stuck think that the price the cost of living is going up everything they bought just more and more inflation yeah he's helping a few people but he's not helping a hundred twenty five million japanese any more than mr brown and mr carney is helping the rest all right you mentioned japan let's stay in asia here and talk about china and it was recently reported that banks and china are relying on short term funding which may evaporate at any moment looks like a bit of a lehman moment when suddenly short term funding a bath race and of course that was part of the two thousand and eight crash what's

going on a giant jim i know you're an expert on china but it really looks like there are other than a credit crunch or is that over overstated what's going on. mag's i'm not an expert on anything i would like to be an expert on but china is certainly going to have problems you may remember fifteen years ago there was a big crisis right most of the asian banks doing that borrowing long and then short and the whole thing collapsed i'm not sure that's what's going on in china right mind the chinese government central bank has been trying to cool things off for the past three four years now i've got to do is watch r t t v and you would know that most people should know that and finally it's becoming to their fruit is starting to cool things off it looks like it and people are coming then say wait a minute her car was supposed to for goodness sake when you cool things out somebody has to suffer somebody rigs and i hope china this time stays the course and does get rid of a lot of the excess developed in china too much inflation they have

a property property bubble they need to clean things up less so thank you all right jim rogers we've got about a minute left i wanted to ask you again something more of a philosophical question putting your professor hat on for a second and for and staying on china. china the economy is really mading now some environmental constraints and now according to people like milton friedman or other thinkers an economics company should never consider the environment their only obligation is to make a profit that's their only obligation but that kind of thinking in china and around the world is now meeting and immovable force call environmental catastrophe so are you in a school where companies in china and around the world should just forget the environment or they should try to mitigate their environmental damage or is it time for another economic model perhaps jim rogers. max if your goal is to make

a profit that's fine but you can't make a profit if you and your customers your customers look at what did they see are the pollution caused by you they're going to buy from somebody else you have to balance everything the president is exactly right the goal of catalysis to make money part of making money is keeping your customers happy and china now starting to spend hundreds of billions of dollars cleaning up cleaning up the environment has been polluted both in the air and in the water somebody is going to make a fortune next cleaning up giant this spending a lot of money solving that yes but does a cost of course up an xterm allies off the company's balance sheet it ends up on the government's balance sheet and then the people end up paying this through higher taxes so there's a bit of a mismatch with incentives and rewards but anyway jim rogers are out of time thanks so much for being on the cause a report and if you max us do it again some time all right. and that's going to do

it for this edition of the kaiser report with me max kaiser and stacy herbert i'd like to thank our guests the legendary jim rogers if you'd like to get in touch tweet us at kaiser report and the next time ask out of saying bio. real damage and complexity of this oil spill was not something you can grasp just by looking at dirty birds we have between four to five million people in this directly affected area of the coast and it's pretty clear why it's not being reported because b.p. can't afford to have a reported all along the gulf coast are clean they are safe and they're open for business if b.p. is the single largest oil contributor to the pentagon the us war machine is heavily reliant upon b.p. and their oil this is a huge step backwards for the marker see it's

a step forward oligarchy carex it is toxic is a look a lot like spraying and. it was it was not a picture that either the government or b.p. really wanted to have out there i don't want dispersants to be the age you are. this bill says. the civilized world produces more food than it needs. while people die of hunger in other countries. millions of victims every year. where a meal is the most about the treasure. was. his flood or droughts to blame. it was a bad year for the train. it's not that we couldn't find anything but that one.

there was great hunger and some. reason to help comes too late and with good intentions. charity diplomacy and business want to play a. cyst so.

that. the old. mother. of the street. her. and. her wish i. could live long slow good. luck just see. enema.

i mean very little. edward snowden rejects russia's asylum condition that he's still working against washington as these options begin to run out one by one. president obama says every country spy in a bid to calm the outrage of america's blatant snooping on its european allies. into no way an unmanned russian rocket loaded with navigation satellites crashes a minute after takeoff and the accident sudden clouds of toxic gases and sparking fears of an environmental disaster. i'm not pictures now from todd here. in egypt the situation is reaching boiling point as the deadline for the president to address the calls of millions of protesters moves closer with every hour.