welcome to the kaiser report i'm max kaiser the u.k.'s business secretary vince cable as compare the bank of england to the taliban and to the hottest vince made this comparison not because of their reckless quantitative easing nor because of their overlooking bank fraud and infinite retired profit cation that is to say because they are indeed terrorists now vince cable saying that the bank of england are jihadi he's for insisting banks have minimum capital reserves vents. as i've said for years the bank of england are indeed like the taliban but only

because they provided the safe haven for the he hardy's of banking fraud is trapped on the debt pact suicide vests and blew up the entire frickin economy. and that same taliban central bank is now papering over the bloody aftermath with little pieces of digital paper that explain more we turn to stacey or well max first of all i did look at jihad and i'm sure the n.s.a. knows i looked it up on google and the definition provided by google was that it's a war of struggle against unbelievers 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 now here comes vince cable glomming onto my toy attic characterization of the bank of england and all the banks in the u.k. as financial terrorists by creating this term of capital is the 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 things cable now has become financial terrorist umber one used to be george osborne but no vince cable your financial terrorist number

one you've earned that right for stealing my material without attribution that right there is a copyright violation smart 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 string street with a g. string of beasties on and he saying that this that the bank of england is treating the money as if it has a full clad 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 which rather sort of inescapable warning bases on the polls or a burka and i think i'd rather see vince cable wear a burka. but that doesn't mean that characterization of the minimal capital

requirements is correct by referring these people capital jihadi vince cable as a hasty wearing capitalist terrorist financial and they bill are of the city of london to hypothecate what the non assets they have to even greater levels of ponzi nirvana is now on the table in other words he's revealed himself he 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. essay has ordered britain's five biggest lenders to raise thirteen point four billion pounds to plug the 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 just 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 the house and every single freaking penny you 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 but i want to get into the specifics of going on here with this call that banks should be looser with their middle 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 the nationwide one of the banks they said that well we can't do both we can't have the

lending scheme that you're proposing and have minimal capital requirements because we're already breaching the 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 you know pulled into this scheme and what it means is plain 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 you know that the government says was actually eight percent nine percent on officially so you going to see that continue to race ahead living standards continue to collapse and the housing market will reach the point of a 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 where. 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 it and say cable you're a pos date 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 bone you not even a prostate 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 how 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 forks trading markets and humans are proving more adept at then computers and reacting to the federal reserve's mixed messages i live on line policymakers will reduce their own precedent to 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 so what's going on are 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. one 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 has turned 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 rigging the markets so so 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 they 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 these sophisticated 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 have some computer that's going to efficiently arbitrage away all the fraud get the way of those yeah payments so i'm going to blame the computer unplugged the computer manipulate markets more convinced vince cable and mark carney and george osborne to commit more fraud than they already are doing so i don't miss my payment can 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 expected 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 lies 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 the computers go toe to toe the vince cable in his coterie of crooks. get to know him like pose of money at the expense of the city don't look the city employed to 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 remember it's all clear doctoring it was a report thank you max. ok state over the second half a lot more. money. on the money with the business over russia. it is easy to.

see. the interview. to. choose your language. mackellar though if they sell some of.

the consensus. to the opinions that immigrate to. the stories that entire book. chose access to often. welcome back to the kaiser report imax keyser time now to turn to oust of a cloud of gold money dot com allister welcome back to the guys report it's my pleasure max right after you have late breaking news an 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 give 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 it was very rare in markets to have the short term trading at a premium to the three or six month price it's in backwardation they are betting a case of shortage of physical metal for spot delivery ok now go fo we've heard this a few times last week dig into that what is go for what if it was the go forward rate and you compared with libel normally what happens is that is less than libel because what the central banks do is they lease out gold bullion banks take that lease gold they sell it into the markets 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 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 if central banks were quite happy to release bullion into the market or into the bullion banks before why they slowing down now again i believe that hanging. but both of these indicators is you could look at the barometric pressure or the temperature these are gauges of 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 tells more what it 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 one of the. deans of the in the in the gold business i would say yes he isn't he's saying that 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 us through a crisis coming out 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 call than are they thought they had and so then because there's lots supply and there's high demand the market takes over we have to i think max to 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 just spearing 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 all rested apart from that there are no sellers left on the market the people who have sold and need to buy it back are basically what the called to manage money cash agree which from a smokefree 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 the outstanding 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 the people i love best weeks is when you say close positions i mean those short position exactly close for positions they have got to buy back to buy them back to close that 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 they're not very friendly people have been in 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 that you have looks the row we've got some incredible all information here on the road 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 hope bank it gives you a 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 copecks 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 dollars 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 that bank of england is one hundred thousand ounces cure no one hundred thousand four hundred ounce bars. one. hundred times as thirty eight hundred thirty nine hundred you turn as you're confirming it was a plank of it in a big event of course was already bailed out goldman sachs under gordon brown when he's done three hundred tonnes 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 made it out of them if

you saying thirteen hundred dollars thirteen hundred tonnes 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 third place or so in germany says we want our gold back but the best thing you know we'll give a piece seven years because they sold their gold they're sold all these other countries gold no hold on hold on a minute we used to the bank of england again this is all in their accounts going on 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 that gold held in custody was a figure and they give you a value figure and you could work up from there with the cable race and with the

price of gold at the twenty eighth of february always the you know the date of the account 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 storage. cos 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 sorry 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 a central bank complains turn around 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 asked 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 says well you've leased it and you know when that leases when the lease is ended then hopefully you will get it back. perhaps and with ok in current circumstances it's now warm around the necks of various chinese and indian women but you know what that's what they're saying is a man in the east is huge and so hopefully the bank held the west has got into these but i would just point out that this is what this is based on you know look at the website and app on the web these are not audited you know here's this is based on let's let's let's go into that a 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 dance bars 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 only indians to try and restrict importation of gold as you may have heard a fascinating read time thanks to the late breaking news the exclusive here on the kaiser report from a class 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 guest from a cloud of gold money dot com if you'd like to get in touch tweet us at kaiser report until next time ask kind of thing but you know. the judge is essential. killed in the streets. that women kidnapped and converted to islam. will be another motives for the coakley christians of egypt to the cross to. the future victims. the way of the cross.

live.

live. lucky . live.

ninety two people have been killed in overnight clashes in egypt as the muslim brotherhood claims supporters of the ousted president are being targeted by the military with a shoot to kill policy. is concerned a diplomatic push in syria could go down the drain as rebels mol arms shipments from backers and call for regime change despite agreeing to join a peace meeting. and america's largest cyber fraud case that's had washington on the run for years five are charged with swiping hundreds of millions of dollars from people's credit cards.