welcome to the kaiser report i'm max keiser now according to the guardian newspaper a former manager at the royal bank of scotland impersonated a bunch rater at the bank after losing his job and it's property service division yes k.k. ho trying to a business card describing himself as a bond salesman with which he attended internal meetings and met customers also in the u.k. this week mark carney attended a press conference where he impersonated a bunch of mater by offering to buy more gilts should unemployment rise he also did an impression of a property speculator when he promised to keep rates low at least until twenty seventeen let's all talk about it more in depth with stacey stacey yes max we've seen quite a lot of impersonating happening in the headlines this week and of course yes mark carney earlier this week he was speaking to the press and twitter reacts is carney

a banker or a lawyer so he introduced so many escape clauses to his forward guidance some people asking whether or not he was indeed a lawyer but feisal islam also tweeted this chart and he says here's the boom in the u.k. as you see this is production to manufacture that little tiny blip at the end he says mark carney must think we're all both. k.k. hope i like that name kick i hope mark carney is a ho he's a ho for the bankers who pimp him out to go before the people in the fine country here in britain and he talk and lots of smack about keeping interest rates low as if he can control which way the bond market is going sure they can for a while and they can manipulate interest rates and they can suppress the price of gold by dumping a thousand tons or more of ukase gold but eventually it all comes on the. joash

interest rates skyrocket mark carney is taken out of this country on a rail and laughed out of town as he rightfully should because he's a used car salesman he is a supposed tory salesman he's a stinker spreader agron day from some military penal colony in canada somewhere in the escape talk about a skate plaza to this guy's skate from a military penal colony somewhere and camera where he got hit with pocky pucks all day and somehow i managed way over the bank of england well least with the r.b.s. story the guy who impersonated a bond trader ok. according to r.b.s. he had not performed any regulated activity nor had he profited they don't think any way for the regulator looked it over yes nothing in every house is regulated it's an open sewer for all but r.b.s. open sewer of road there are no regulations. was speaking of open sewer fraud you know mark carney is here heading the bank of england but he did escape from canada

before it was all too late c m h c moves to take steam out of housing market canada mortgage and housing corporation is limited in guarantees it offers banks and other lenders a mortgage backed securities the measure comes amid the federal government's efforts to protect taxpayers from financial risk in the housing sector further cool lending and add upward pressure to mortgage durie i wish i had one of those helium filled balloons. on the helium filled balloon. like this because this is really any time you hear the words of mark carney think about a clown of a sideshow named kiko who's sucked in on a helium filled jimpson and speaking in that childlike whiny voice of somebody who's either a completely smacked out on heroin b. needs to have a low bottom e. or c. only runs a bank of england. well over in canada as we know the housing bubble is getting ready to burst its. well it carry blue big bubble in canada now

it's crashing it's not hard to blow big bubble if you like it makes buy something about humans and dogs if you leave out of dog food eat themselves to death if you jack interest rates down to zero percent they'll speculate themselves to death and the bubble will pop that's not it's it's not so what you get paid on the amount of dogs you murder the amount of consumers and lenders you destroy that's how you're getting paid that's a business model based on a genocide it's environment it's interest rate sensitive genocide there's an interest rate apartheid mark carney is the doraine psychopath from canada who blew an enormous bubble in canada and now it's your show to blow it all up on this show well the c.m.h. c has notified banks across the candidate that they're going to lower their maximum guarantee for these mortgages and that decision comes in the wake of unexpected to

manned for the guarantees of course you know the government guarantees to use taxpayer money to trying to back their housing speculation and flipping schemes and of course they all went for it you know have an experiment go to a wal-mart and open up a van and inside the van are an unlimited supply of donuts and then go in the parking lot in front of the big fat waddling american to say all the down that you can eat now do you think a my when i talk about they already have those sales at wal-mart where people trample themselves to death to get discounts on don't it and eat themselves into a piece of the same thing in canada so here they're saying oh if we could interest rates down low enough for the white people meanwhile the black people have to go to payday lenders and spend thirty forty fifty sixty percent but figure a way guy oh it's zero percent for you all the interesting you can get speculate yourself to death would. kick a fellow a market may well. speaking of guarantees however there is of course many market participants now on wall street like guaranteed profits they don't actually like to

have to compete or take any risk no morris. i don't want to risk love you know and i don't want to take no risk because i got my hose down and a wall street and out and if i'm a pimp and my mortgage is goldman sachs and j.p. morgan i don't take it no risk that's not my thing but maybe you mean that. because you got another real estate bubble to come well gold futures dropped in milliseconds before i report about ninety milliseconds before the ten am release of an up the institute for supply management report about u.s. service sector companies the price of gold futures and gold e.t.f. fell specifically at nine fifty nine fifty nine and nine hundred four milliseconds gold for december delivery dropped almost two dollars a contract from thirteen zero eight ninety two thirteen zero seven gold is like

under a prisoner at one of america's federal penitentiaries on day one in the shower. it doesn't have a great future ahead of it. till such time as they burn that prison down i'm saying the bone vigilantes come in and they've burned carney and is real estate popping pose down you get two things bonds collapse as they should because there's a bout a fourteen percent global inflation rate adjusted for reality and if you remove the suppressant on gold like bank of england over there mark carney these little thousand tonnes into the market and more to suppress the price of gold goes to five thousand dollars and it's not going to wait we've got to wait for the prison to be built down we've got to wait for justice to be sure because we've got to wait for this horrid mark carney to get is mojo if this is rated by reality which is coming . well they take

a hose in this situation are the guys who were impersonating real participants in the market when in fact they were just front running so here that the story is suggesting that thomson reuters was feeding them again a few milliseconds it only takes a few milliseconds before they confront him on the whole market let me explain from running for the global audience in particular americans imagine there's a donor glazing machine and through it like krispy kreme and through the down of and they're going to put a nice layer of sugary glaze you have advance knowledge and you can put yourself on the conveyor belt and actually open up your job like this one of you catching this on the yeah and you can front run the sugar pouring out of the free machine. so you actually front running is you know you're drowning or soften the free sugar before anyone else gets on the don't it's ok americans do understand that means destroy a big fat and stupid because you're front running your own donut shops you should

call they don't attend the k.k. i'm going to start my own chain of topless don't it shops. hope it's going to put you know its importance up there encounter they've got a donut shop going to put him right out of business along with mark trying to go back to canada yagi damage more room. and so finally we move to a headline from james howard kunstler and the talk of the dreadful summer wind and he's basically talking about the u.s. dollar as an impersonate sion of a global reserve currency and the american people and administration as it impersonate of a global empire so the usa is very into a psychological space not unlike the wilderness of mind that germany found itself in back in the early twentieth century the deep woods of paranoia where our own failures will be projected on to the motives of others who mean to do us harm so you study about them losing control of all the systems and structures they set up

in place whether it's the edge of the military empire or the edge of the financial empire that they have and he says and we've tried to offset the accelerating losses of running our own runnable stuff with accounting fraud aimed at pretending that everything still works but the accounting fraud has only excel aerated the gathering disorder in the banking system he says max that disorder has infected our currency and the infection is spreading across all currencies what a surprise that the first pandemic to strike an overstressed global immune system was not bird flu after all but a sickness of money and the sickness of money he's referring to is the april smash of gold and silver. james howard kunstler is a fine writer and i read that piece and he was talking also about what he sees happening this fall september and october when people come off the beach in the hamptons return to their desks and they see that the world is on fire and that they're not properly hedged and then they go into panic mode and they say wait a minute we've got some hockey puck down much more on morning the bank of england i

better get out of this market and they start selling in a panic sale mode and bonds seek their rightful level of about eight nine percent on the ten year in the g twenty and about twenty percent in various other countries and of course then we'll have armageddon. which you know prepares so well he's saying as well that the u.s. dollar is the hope of global currencies because he says near the center of that money sickness was the blitzkrieg against gold and silver in the spring when errant serial selling dumps were executed against the money metals to under money them so gold and silver are the only true money the dollar has posed as the one true money that they act as if there is good is gold on the global gold standard and yet it's being exposed in terms of taking hold them they've actually taken they've actually been profiting from this hoe impersonating a currency scheme well emission faisal islam earlier then he was at the press

conference of marketing and i asked faisal on twitter any hasn't responded yet why didn't ask mark carney about the thousand or fifteen hundred tons of gold that bank of england sold recently to force the price down and this is gold there you hold for other countries so german gold austrian gold australian gold various gold holdings around the world stuart of the bank of england bank of england sold these other countries gold to keep force the price down and this has been documented by folks over there gold money dot com allister mcleod for example has a real kind of a forensic look at the numbers we talked about on the show i'm still waiting to get some answers so you're still waiting because maybe if i still islam is it on take a go mark carney scheme taking hold this long. words want to beat back but it. was my tweet over there john for what i grambling about stacy herbert we've got to go thank so much for being on the kaiser report thank you max. i'll go away.

mission. critical three. three. three. three. three. three books video for your media project free media. tom. you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else you hear or see some other part of it and realize everything you thought you don't know i'm sorry welcome to the big picture.

welcome back to the kaiser report i'm max kaiser time out to go to gainesville georgia to talk with robert author of conquer the crash welcome to the kaiser report yes good to be here thanks max ok let's talk about this idea if you call yourself a one handed economist who sees no chance of inflation that deflation is our future self speak about that a little bit. well i think the big problem is the debt there are fifty five

trillion dollars worth of dollar denominated debt when you go around the world and add up to debt it comes to about two hundred trillion dollars when the government ran out of steam pushing home ownership debt they started moving over to students and trying to push student loans those are now up to a trillion dollars when you add eighty four trillion dollars worth of unfunded liabilities of the federal government. when you look at perhaps a quadrillion dollars worth of what i call iou if which are derivatives i think the debt burden is so great that it's on payable no matter what anyone does including governments and central banks so i think it's going to go the way of all over indebtedness which is conflation i think we've got some signs of it as well in the background but so far the central banks have been pretty successful in keeping things about flat ok so to talk about that the enormous debts the fact that debts the can't be paid won't be pay and that bonds default that goes belly up and

there's this depression deflation going on and there's a background with this also for example my friend peter chef in connecticut it has a very good job in breaking down some of the consumer price index is and shows that you know the government doesn't really track things like magazines or education or other elements of the consumer price mix and if you were to actually look at stuff that people buy and trade on a daily basis the inflation numbers are creeping up there are more like eight or nine percent extent or so there is that what's can you speak about a little bit about that bob sure. of course we know the government released figures the inflation rate terms of consumer price index is higher than they report but look around you i mean gold is off six hundred dollars from its high silver's down sixty percent this is that the metal is supposed to go to two hundred dollars an ounce of twenty books you look at interest rates and for the past ten years. the

hyperinflation is have been saying oh with all this money creation interest rates are going to be in double digits and they fell to the lowest level in history and this was right along the predictions we were making. if you look at commodities they've been languishing since two thousand and eleven kinds of indicators to me show that there is not a response that hyperinflation we're expecting and this is in the face of the fed inflating the base money supply at thirty three percent a year this is huge so obviously there are tremendous deflationary pressures that are countering this inflation of base money but my argument goes a lot deeper than that i think the banks don't want to go bankrupt and a lot of people said in fact bernanke himself promise that he would drop money from helicopters and that really what they've been doing well in two thousand and eight they pretty much did that they supported all their buddies you know willy nilly during that period the very rapidly thereafter they traded all that debt for u.s.

government bonds government guaranteed mortgages so they're doing the same thing the feds always been doing which is buying the safest possible debt are not going to go up and buy all the bad corporate debt or all of bad mortgages that are owned by the banks now something that i have more or less anticipated i think shocked a lot of people was what happened in cyprus i mean where was all the money printing where was the central bank the e.c.b. coming in you're on a white horse saying we're the lenders of last resort where is the money dropped from helicopters what they did was they came into the cyprus to the country of cyprus and basically said we are seizing your bank accounts in other words are not bailing you out we're taking your money these are these are still bankers at heart and they don't want to go under they don't want to go bankrupt they're not giving money away they want to be paid back i think eventually the same the same thing is going to happen in the united states that there's no such thing as magic money no such thing as infinite credit and when this thing rolls it's going to be a sight to see ok well that's a really good point i want to focus on the cyprus. situation as you describe it

here because and to give some context here what you are saying is that the reason we've had these programs like quantitative easing is because when debts are and when bonds are due to be rolled over and mature there's a lot of economic growth to support a normal functioning bond market so the government has got to come in and buy their own bonds they've got to print money and buy their own bonds and this they're doing this in the hundreds of you know trillions of dollars because there is this ongoing deflationary rollover of these economies and so for those who say as i just described that there are countervailing inflation evidence in the consumer price index your point i just want to repeat the point is at some point you end up at a cyprus where you know what the banks say forget it it's a bail and we're just taking the assets and that's that's the risk is that that type of cyprus like ballin or wealth confiscation spreads throughout europe and spreads around the world correct. yes in fact the people who run europe already warned spain and portugal and ireland and greece look if this happens to you we're

going to raid depositors accounts so you know will the f.d.i.c pay back everybody i don't think so the fed has said several times that they want the government to get their houses in order so they can shore up banks here in the united states i don't think the fed is going to do it i don't think you can do it so i think we're in a real crisis period and you know cyprus was a little a little glimpse into the future just like two thousand and eight to me was a glimpse into the future shot across the bow told us what it's going to be like when things do do implode ok let's let's take a look at the united kingdom for a second because a marconi just took over as bank of england and he's saying that they're going to keep rates low for the next couple of years ago so called forward guidance he sees recovery and by recovery he means an improvement in house prices and stock prices i think what you know you'd characterize that as speculation but it going forward what i think if what you're saying also is that these are very unhealthy policies

because you're fostering economic misallocation of capital little interest rates at this low level to fight this in deflation and that they're at some point the u.k. is going to be facing something very similar to what happened in cyprus and that the creditors just come in they seize wealth and there's a balance and these banks in the u.k. they're zombie banks can you comment on the u.k. banks about proctor i don't know if you've done a lot of work on u.k. banks but the other balance sheets as impaired and dangerous as i have said and others have said that they're just basically it's a huge ponzi scheme your thoughts. well i agree with that entirely but let's start with the idea that he's promising interest rates will stay low and they'll keep them low i don't think they have the power to do that recall it was december two thousand and twelve last year when bernanke he came out and said our q.e. policy is designed to keep long term interest rates down well they had already started up in the summer of two thousand and twelve they've been soaring ever since

he made that comment so obviously their policies are working as designed this all of the machinations that they're going through are leading to a weaker and weaker and weaker situation with greater and greater debt the more they keep the bad guys liquefied the more debt expands and you're getting some of these things like we talked about before like student loan debt and and private equity companies you know paying themselves through more and more ridiculous bonds that are going to be paid off so the situation gets worse and worse and worse and i don't think they can ultimately control it i think ultimately the market is going to start demanding higher rates and this happens in countries that are in trouble and certainly happened in greece before things blew up there so rising interest rates to me are not the result of an extremely healthy economy which is what most economists think i don't think they're there than indication that hyperinflation is coming which is what most of the bears thing i think the the rise in rates now that surprise the fed and virtually everyone else are the early hand that all the debts

in trouble and people are screaming to start demanding higher rates because they're going to start worrying about principle now this is pretty much off the radar because if you look at the sentiment indicators in the u.s. stock market they are off the charts and have been for five months in fact we follow up to twenty two different sentiment indicators every one of which reached extreme record highs or matched record highs record highs being two thousand and seven and two thousand in the past four months so we're back in another two thousand juncture two thousand and seven juncture when people are absolutely optimistic about stock potential stock market gains they're buying junk bonds like crazy in fact even though we're off the highs and jump on pry. it says that the sales have continued be very very strong so that the optimism and confidence out there is tremendous it's historic and it's the same up it was in two thousand and two thousand and seven so we've got a double whammy coming too much optimism means people are taking all these investment on and the second one as you pointed out is the underlying system is rotten and isn't going to be able to support these debts in the interest payments

or eventually i think even the principal payments are let's talk about the bond market here for a second because the rate on the ten year bond and this is the bedrock bond that all other mortgages and credit related instruments kind of sit on the ten year bond the government bond whether it's the u.k. or the u.s. you know last year were saying there are one forty one fifty on the ten year bond the other two fifty to sixty they're moving up what you're saying is that this is interesting because we're going to tap directly into the elliott way phenomenon because the elliott way phenomenon or technical analysis looks at historical chart patterns and price patterns and there's also a bit of a how do i describe as there's a recurring theme in human nature that you see humans tend to go through periods of enormous optimism at the top and enormous pessimism at the bottom and so your work tries to tap into that do you see robert rector just to repeat on this you're saying that rates now have bottomed out you're looking for rates to rise and so

therefore bond prices commensurately are on the decline which of course has huge implications for the the the banks and the economy your thoughts he jibla cations one thing i'm very proud of is that a year ago the summer of two thousand and twelve see how much repeat kendall and i got together put out our first joint special report out of delhi wave international here and we said the thirty one year bull market in bonds is ending we're going to get into a very major period of rising interest rates and as you just pointed out this is the this is the kiss of death this is the black hole when rates start to rise this is where people start part. their money is so they stop putting it in other areas and the higher rates go the more it attracts money again just like a black hole of many magnetic force so it's going to come out of the stock market is going to come out of commodities it's going to come out of metals is going to come out of real estate and everywhere just just to go to to borrowers who are willing to pay and higher higher higher and higher interest rate it's very bad for

the internal structure and fortunately i think the the monster that all the lenders most of which are backed by the government whether it's the federal reserve system or fannie mae freddie mac's or a home loan banks ginnie mae sallie mae you go right down all these lists of agencies have been pushing credit on the american people for all these years and it's finally led to a point where the monsters too big to kill and the only bullets they have are more debt so you can't kill a debt monster with more debt ultimately you know we're going to reach an endgame here shortly and i think the extreme and optimism is one of the big signs the warning signs that we saw before the last collapse all right the legendary pressure thanks so much for being on the kaiser report thanks and if i could i just want to lead if anybody wants to see the bond report we put out for my twenty page special deflation just go to a wave dot com we're handing them out for nothing if you're if you're interested i call. very good and that's going to do it for this edition of the kaiser report

with me max kaiser and stacy herbert and i'd like to thank our guest robert rector of elliot wave dot com as you just heard about he's got a special going on if you'd like to get in touch tweet us at kaiser report until next time backscatter saying by all. the main competitor girl on the market is mother nature. may customers struggle with to. fight for each drop from a dirty supply. let people think i hear prices pure water. on our t.v. . they use it up there in a more sure hands. and flush their toilets with the same. this

series is selling and spring water. choose your language. with. the consensus. choose the opinions that you think are a cool. choose the stories to. choose people access to. it was terrible. the city was on fire nobody knew what was happening. five days without a break we were terrified. and there was no communication only tanks all around us we came out to find georgian democracy in our streets.