provided by google was that it's a war or struggle against believe hers so this is important for the rest of the episode this notion of unbelievers which i think we should return for the west as disbelievers nobody believes their lies and fraud anymore vince cable calls bank of england capital taliban vince cable has stirred tensions within the bank of england by apparently comparing policy makers to the taliban over restrictions imposed upon banks well first of all let me say something which is that i coined the term financial terrorists and now here it comes vince cable glomming onto my toy attic characterization of the bank of england and all the banks and the u.k. as financial terrorists by creating this term of capital g. hottest but of course he's misapplying about term the banks of course they would need capital reserve requirements to be functioning banks in

a free market system you don't want banks involved in ponzi scheme economics like vince cable is proposing like vince cable is perpetrating like vince cable is supporting by saying no we don't want minimum capital requirements for banks we want financial terrorism so that cable now has become financial terrorists number one they used to be george osborne but no vince cable your financial terrorist number one you love that right for stealing my material without attribution that right there is a copyright violation mark well he's comparing them to tap the taliban capital taliban so basically here's the bank of england and you can look back for three hundred years of their interest rate policy their money their capital policies are looser than they ever been this is the equivalent of a woman walking down the strength street with a g. string of bases on and he saying that this that the bank of england is treating the money as if it has a full. burqa on and hiding the money keeping the money from flowing loosely around

the economy he's blaming them for these capital requirements despite having ultra ultra ultra loose monetary policy right well it brings up the question would you rather sit in a table wearing pay season as the bulls or a burka and i think i'd rather see vince cable wear a burka. but that doesn't mean that is the characterization of the minimal capital requirements is correct by referring these people as capital jihadi vince cable as a p.c. wearing capitalist terrorist slash financial and mabel or of the city of london to hypothecate what the non assets they have to. ponzi nirvana is now on the table in other words he's revealed himself has shown his true colors vince cable as being this financial terrorist who promotes ponzi schemes

let's roll back a little bit to say exactly what's happening here so the bank of england's prudential regulation authority the p r f a has ordered britain's five biggest lenders to raise thirteen point four billion pounds to plug a twenty seven point one billion pound gap in their finances so george osborne is also agreeing with vince cable here he refers to the jihad ist tendency in threadneedle street and this is despite this puny amount twenty seven point one billion that we've had the funding for lending scheme all of that money did not go to small businesses in fact investment is down by thirty percent they're only lending to these ponzi schemes to house an every single freaking penny give these people they just go into the speculative ponzi scheme here and in terms of this money here's the twenty seven point one billion pound gap you know apple has just reported only one hundred fifty billion dollars cash and bonds just sitting on

their balance sheet there's too much cash in the world these there's trillions sitting on these corporate balance sheets why are they not putting it to work if there's such a great economy out here and i want to get into the specifics of going on here with this call that banks should be looser with their mental capital reserves you know i was born brought in this funding for lending and then he brought in the help to buy scheme which is to get people to speculate in the housing market again and then nationwide one of the banks they said well we can't do both we can't have the lending scheme they are proposing and have minimal capital requirements because we're already breaching a three percent level and so this is what triggered cable and ahs born to go after the regulators and saying and mervyn king the outgoing bank of england head saying look we have to allow these banks to reduce their minimum copper requirements inviting another. catastrophe as we saw in two thousand and eight and who's going to be on their side but the new bank of england head mark carney who is going to be pulled into the scheme and what it means is print print print by the bank of

england is going to have more inflationary pressure right now inflation is on a tear in the u.k. three point one percent and you know that the government says what is actually eight percent nine percent on officially so you're going to see that continue to race ahead living standards continue to collapse and the housing market will reach the polling bubble and then collapse again this is our form of jihad here it's a war and disbelievers so they're angry that we disbelieve there we don't believe their lies that they're telling us lies we know the economy is crashing we know wages are down and so what supporting these house prices rise and what's where are the jobs where's the real income where's the well real wealth creation you know what vince cable is calling me an infidel because i don't believe in his ponzi economics i would return and say cable you're a pos state which means that you've turned your back on free market capitalism you don't you are frickin welfare socialist bum queen who's out there sucking on the teat of the state and the bank of england free money that you're

a bomb you're not even a pos state you're not even worthy of that phrase you're just a bomb in the street begging for money so you know and now we'll go on to the next story here about disbelievers because a recent study has shown that our artificial intelligence computer algorithms have about the intelligence of a four year old and part of the reason why they're not smarter yet is that they don't have common sense they can't tell basically a lie they can only take the data and the facts historical correlations historical data and determine where things are going to go so in terms of this war and disbelievers that the central banks are engaged in humans beating robots most since zero eight as trends shift currencies so this is in the four x. trading markets and humans are proving more. adept at them computers are reacting to the federal reserve's mixed messages i live on when policymakers will reduce their unprecedented stimulus so at the moment. most four x.

trading is done by algorithms but the few that are done by humans are actually outperforming the algorithmic trading currencies because they're looking at historical data and trends and what should normally happen and it's not happening i'll tell you what's going on or the computers we're generating returns that were consistent with market conditions and consistent with inflation trends and consistent with interest rate policies and those returns were not sufficient enough to cover the extraordinary malfeasance that people like vince cable is encouraging so what the humans have done is they are basically rigging markets to confuse the machines and saying we're outperforming the machines based on our own rigging and trading on inside information and some others will turn into a story that humans are beating the machines no humans are unplugging the machines because the machines were telegraphing the fact that humans are reading the markets so so i also employed them because it's offering too much transparency and what

vince cable wants to do which is to rig markets manipulate markets and commit fraud well richard olsen from zurich is quoted in this and he's the founder of olson ltd who has designed currency trading models since one thousand nine hundred six and he says about what's going on in the four x. markets at the moment central banks have become the insider traders of the currency market which is a paradigm shift that systematic traders cannot pick up as well as fundamental traders systematic traders are the algorithmic trading robots in other words the n.s.a. and all of the surveillance technology made it very difficult to beat the markets and generate any kind of alpha in your portfolio because all of the differentials between market pricing have been arbitraged away through the sophisticate. computers and so the returns from these algorithmic computing programs were not sufficient enough to pay the interest on them yup that i just bought if i just paid two hundred million dollars for a yacht and i need to generate

a certain amount of return manipulating markets i can't have some computer that's going to efficiently arbitrage away all the fraud get the way of those payments so i'm going to blame the computer unplugged the computer manipulate markets more convince vince cable and mark carney and george osborne to commit more fraud than they already are doing so i don't miss my payment again we go back to the fact that there's a breakdown of long held correlations i.e. the disbelieving so you know you should be able to enter in the algorithmic trading the data the facts the what would normally happen in a supply and demand situation but none of those work anymore plus the central bankers are lying so when ben bernanke he said that he's going to taper. the computers lost because they didn't expect that they they weren't extent to supposing that based on the data of unemployment and inflation and other numbers so they've lost some there and that's the important thing to look at here of what happens with central bankers when vince cable is saying that this is

a problem of the central bank not demanding the banks commit more fraud because that's what he's saying because this is all they're engaged in at this moment of lending fraudulent lead based on collateral that doesn't really exist that the breakdown of this data has resulted in long held asset correlations is proving problematic for many computer based funds i.e. the ones that can't detect the lives let's talk about the trades union congress do you see the unions get to trade union congress to hire computers to go after these guys in the city of london right so hire that computers go toe to toe the vince cable in his coterie of crooks. get to and they'll make poser money at the expense of the city don't look to studio plug the computers because they don't want to see from benefiting from this advanced technology well max finally you know i want to just point out that this is a war on disbelievers they're telling you lies and they're demanding you believe that just like the taliban and afghanistan is saying that this is our

interpretation of a book and you have to believe otherwise you're an unbeliever even if the book doesn't actually say what we say we believe and this is to say what's going on in economic central bank policy monetary policy currency policy financial policy and economic policy around the world they're telling us lies and telling us we're going to punish you with zero percent rates negative zero rates you're going to we're going to take your savings we're going to confiscate your savings we're going to belly in you if you don't if you continue to disbelieve our law it's. just never at all clear to actually know it was a report thank you max. ok stage over the second half a lot more. on

the money with the business over russia this. leg. he. says. he.

slips. critique three sports three. three. three. three. four year media project c.e.o. don carty dot com. welcome back to the kaiser report imax guys are time now to turn to the cloud of

gold money dot com also welcome back to the guys report it's my pleasure max right now after you had a late breaking news exclusive report really powerful explosive information pertaining to the gold market but i don't want to get there quite yet i want to kind of review some of these other things that are going on to get some background that will get into this explosive revelation that you have now in the news this past week we've heard a couple of terms backwardation and go file in the gold markets and the gold leasing markets etc backwardation we've talked about on this show before and it was very rare in markets to to have the short term trading at a premium to the three or six month price it's in backwardation they are betting in case of a shortage of physical metal for spot delivery ok now go fo we've heard this a few times the last week dig into that what is go for well if it was a go forward rate and you compared with libel normally what happens is that it is less than libel because what central banks do is they lease

out gold. bullion banks take that lease gold they sell it into the market and they take the proceeds and they lend it back to the government usually for an interest rate turn so under those circumstances which on normal go for is less than libel we have a situation now where for the last fortnight gopher has been higher than libel which has turned the world on its head now we don't necessarily know what this means and it is more likely to happen when libel is very low obviously but what it is indicating i believe is that there is now a slowing down of the provision of gold for leasing by the central banks so i think it's indicating a tightness if you like in terms of supply so the next question that goes on from that is that of central banks were quite happy to release bullion into the market or into the bullion banks before why the slowing down now and again i believe that

having to work but both of these indicators is you could look at the barometric pressure or the temperature and these are gauges or to assess what's happening in the internal machinations of what it was and these two very key indicators are both indicating tightness in supply there flashing red and not only that but if you look at the delivery situation on comix that is also flashing red ok i can't wait and what really does more well is because the amount of gold actually held in the comix depositories is extremely low the amount of gold which is registered for delivery into the market in other words dealers gold is incredibly low and so far as we can see a lot of the may settlements haven't actually been cleared yet and that's only looking at the day to day drawdowns if you like out of the bullion banks now i was just reading some comments by jim sinclair is one of the. deans of the in the gold

business i would say yes he isn't he's saying that the comics is going to have to flip. to all cash delivery and they're just simply say we don't have the gold we can't deliver the goal is to leverage the run of the gold markets we can't deliver are going to go to cash and that this will cause a panic in the market because people will realize then that there is no goal available lots of yes i suspect that this is the it's the delivery situation in comix that jim sinclair is really thinking about this he's got in the back of his mind i think he sees the crisis coming out and i don't put words in his mouth but that would certainly make sense if if that was what he was seeing and then extrapolating from there what is likely to happen and as you say he's a man of great experience so we listen to what he says right there would be a panic buying and gold people realizing that the paper claims they all are worthless and suddenly why is that worthless is because there's less color on the thought that they had and so then because there's lots supply and there's high demand the market takes over we have to i think actually go to draw

a distinction between the paper market and fiscal market and the paper market is basically the futures market in the states and what has happened is that everybody basically has sold it there's nobody left to sell it there are a few producers maybe who mines for example who see their profit margins disappearing up the swanny and think well we if this is going down we've got to sell a bit we've got a hedge a bit just in case it was good pay wages and the rest would pump from that there are no sellers left in the market the people who have sold and need to buy it back are basically what the called the manage money cash group which from a smoky hedge funds who don't actually know what they're doing they haven't got experience of this market they don't understand the underlying dynamics they are in a situation now where they are beginning to close their positions and we saw this in the last commitment of trade report standing shorts came down a bit but it's still incredibly high so what we're seeing of the early stages of a wonderful best please tell me i think the people i love best squeezes when you

say closed positions i mean closed short position exactly because short positions they have got to buy back to buy them back to close that gap and they've got to find someone to buy. from and the point i'm putting to you is that unless the bullion banks are prepared to accommodate them and the not very friendly people a billion banks then there is no one to sell stocks back to the shorts let's move on to the late breaking news of the day this is ground shaking stuff ok bank of england if corning to some information they have looks or oh we've got some incredible all information here on earth throw to you to break this news tells the some details there ok well not so long ago i had a call from a journalist friend who told me alice to have you seen the new app on the bank of england website i said no i haven't he said well perhaps you ought to look at it because it's got some interesting things in it and part of the app is the tour of the hope bank it gives you would tour around the go folks and they're very sort of factoids i think about twelve different sort of factoid hard word but anyway and

one of them is that this is dated june so it's very very recent this is only just gone up one of them states that in storage in custody in the bank of england there are over four hundred thousand four hundred on sparse. so i looked at this and thought this is slightly different from the year end figure which is shown in the annual report which translated into four hundred ounce bars is actually five hundred five thousand bars so roughly one hundred thousand bars seems to disappeared from the twenty eighth of february when the annual report was dated and sometime in june so where has this gold gone now bearing in mind that post cyprus there was a huge great increase in demand for gold as people tried to take demand of physical physical in europe as trying or in india were ratcheting up their buying there was this and it's it was clearly

a coordinated attempt to take the bullishness take the steam out of the market and it started with a hit on kodak's and that got all the stock losses triggered and so on and so forth it got people selling e.t.s. so that created the supply the common thought is this supply was sufficient to keep the price down but if you do the sums no it is not there is a huge shortage of bullion so it must be being supplied by a very big deal or this i think is where that hundred thousand four hundred hundred ounce bars has gone which is roughly thirteen hundred tonnes now that would make sense is the but it's the sort of number which i would expect to keep the price suppressed over those two or three months you're saying you're confirming the bank of england is one hundred thousand ounces sure no one hundred thousand four hundred ounce bars. one third period of time is thirty hundred thirty five hundred

yards you're confirming that bank of it in a big event of course was already bailed out goldman sachs under gordon brown well he's done three hundred tons so they say so they say ok so they've already been involved in a scandal and well the bank of england has always had a management position in the london bullion market of that there is no doubt at all and the bank of england if you look back through the only two made it out you saying thirteen hundred does thirteen hundred times yes ok so if they would also have that means that they would be in a position that they have sold gold that is not actually owned by the sovereign state of britain we've only got three hundred ten tonnes right exactly. but the surrogates are still in germany says we want our gold back but the best thing you know we'll give a piece seven years is because they sold their gold they're sold all these other countries gold no hold on hold on a minute we used to bank of england again this is all in their accounts going all the way back used to run site accounts in other words bullion held for other banks

our central banks was on the balance sheet that was run off around about two thousand and five and two thousand and six was the first year when they started declaring outside the accounts the gold held in custody it was a figure and they gave you a value figure and you could work up from there with the cable race and with the price of gold at the twenty eight the febrile which is always the the you know the the base of the accounts exactly how much gold it held so that's absolutely fine so the bank of england actually is now in the room in the business of fixing leasing contracts for central banks other central banks they are they are literally an agent if you like between other central banks in the market now we know from something that the austrian central bank said in an unguarded moment that yes they've been leasing gold into the market and it helped pay the for the stories. koss hold on a minute. they then withdrew that because they knew that they'd said too much but i

also remember the bundesbank saying that the reason they withdrew go from london i think it was back in about two thousand or thereabouts was because the leasing expenses were sort of the storage expenses were too high and therefore they took some some of their go back to the bundesbank so it seems to me and i may be wrong on this that the bank of england has a policy of charging storage fees which are expensive and then when central bank complains tell you and say well there's an easy way around this why don't we lease your gold into the market and make it work for you and that will pay for the storage costs and i think that's the general approach what if the countries that have been bailing themselves a disservice as for the gold back it's they their central bank available have to go and buy in the open market well no what happens is the bank of england says well you've leased it and you know when that lease is when the lease is ended then hopefully you will get it back. perhaps in a hurry with ok in current circumstances it's now warm around the necks of various

chinese and indian women but that's what they're selling to the middle east is huge and so hopefully the bank held the west has got into these but i would just point out that this is a this is based on you know political you look at the website and app on the web these are not audited years this is based on well let's let's let's go into that little bit more i mean we have about thirty seconds it's such a definite statement that here we have four hundred over four hundred thousand four hundred ounce bars compared with five hundred and five thousand four hundred on was literally four months earlier now that to me is a significant difference and i don't think that it's just you know someone getting muddled and not quite saying quite the right right figure blanketing the doesn't do that and i think that therefore we need to take notice that it's now over four hundred thousand not over five hundred thousand four hundred ounce bars the difference being one thousand three hundred tons of gold which i guess is roughly what would have had to have been supplied into the market to try and keep the price done. with all the indian demand and the chinese demand and of course the next

thing they're doing is they're leaning on the bit on the indians to try and restrict importation of gold as you may have heard. fascinating read time thanks for this link breaking news the exclusive here on the kaiser report alister macleod thanks for being on the guy's report that's my pleasure. ok that's all the time we have for this episode of the kaiser report with me max kaiser and stacy herbert like to thank our guests from a cloud of gold money dot com if you like to get in touch tweet us at kaiser report until next time after saying but you know. nobody chooses to be homes nobody chooses to be in our sorrow. is the world for the sake of the. in the six pm get out six feet six am.

they were. told. to me the class before the. days the word against. it's too hot to think about all of them comes in. and to know that many may not have only been the last two should never be there also due to foreclosures that never should live. play right close to. the first strike. and i think you're. on a recorder splitter. and instrumental. live

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more news today is once again flared up. again these are the images the world has been seeing from the streets of canada. showing corporations are all day. that. i. could speak. i wish i.

could. just say. a little. secret laboratory was able to build the world's most sophisticated robots which fortunately doesn't sound anything tim's mission to teach me the creation of life should care about humans and. this is why you should care only.

breaking news here on our t.v. more than one hundred people are feared to have been killed in egypt most of them reportedly plug pro muslim brotherhood demonstrators who are said to have been attacked by army supporters and targeted potentially by snipers in cairo. the syrian national coalition agrees to take part in peace talks as the group meets with the u.n. security council for the first time. and u.s. authorities break a cyber fraud scam worth hundreds of millions of dollars believed to be the largest ever they're now seeking decades in prison for the huggers.