you know the central bankers invisible hand and the other words the invisible hand described by adam smith you don't made central bankers you don't need tapering you don't need printing such and it's a beautiful it's kind of the coin of its day you know from two hundred and two hundred forty or years ago or so that was a bit coin of its time the enlightenment that i'm smith but then central bankers got very envious of the fact that there was something so beautiful perfect as the as the invisible hand so they started to degrade it and they come up with this new command and control central bank model that of course is a failure well that's interesting because of course adam smith looked at nature and when he wrote wealth of nations and you look at nature to devise a perfect balance market and because nature. destroy anything that's weak or bad so all of these enterprises that we've propped up all these banks they would have been destroyed ruthlessly i mean it's difficult to watch those nature documentaries

where the lion eats the poor gazelle but that's what's got to happen in this in the financial system now there's room for you know mutations that evolve to become the new standard that's part of what you should see in an economy so here in the u.k. the small to medium enterprises are not allowed to thrive because a bank like r.b.s. finds and got some strips sells off the pieces and devours them because there are a predatory monopolist or not a free market capitalist yeah but nature would say that if you're just going to favor the lions on the serengeti if you're only going to allow the lions and you like those the best because they're the most ruthless then like you would still need the gazelles and all the other animals out there to be eaten but i want to look at this first headline regarding you know basically what to do against all these commanding controllers who have seemingly lost control learn from buba and demand delivery for true price of gold so this is from the f.t.

this is from a few days ago but i wanted to bring it up now as where if to meet with the second half talking with john bolton and a year ago the buddhist bank asked for seven hundred tons of gold back you know that well according to this piece last month yan's white been just bank president admitted that just thirty seven tons had arrived in frankfurt the original timescale to complete the transfer by two thousand and twenty was less fully enough but at this rate it would take twenty years for a simple operation well perhaps not so simple while he awaits delivery error weidman is welcome to come and look through the bars and federal reserves vaults but the question is who's bars are they and them the f.t. goes on to recount the arm chair farmer fraud this is a new phrase and he says you were told look this is your pig in the stock. it works until everyone wants physical delivery of their pig which is why boo boo's move last year caused such a stir after all nobody knows whether there are really two hundred sixty million

ounces of gold in fort knox because the u.s. government won't let auditors in side so that's the armchair farmer fraud. well it just goes back to fractional banking you know fractional banking fractional gold the london billion markets association here in the u.k. for every ounce of gold they supposedly have they've sold a hundred they don't even have a one one hundredth of the gold that they say that they have and the comix is probably going to default and they're going to have to go to a cash cash settlement on these on these on these contracts people are going to they all want to get their gold at the callbacks or london berlin market association they would have to declare an immediate force measure or subtle in cash because they don't have the gold it's in asia now the gold is gone exactly because as we've been discussing this command and control system is based on having value first they had to get rid of gold and the gold standard but in order to keep people

believing in their fee currency they have to control what is the alleged supply and demand of gold now article then goes on to say the delivery problem for the fed is a different breed of pig the gold market is far more than exchanging paper money for precious metal indeed the metal seems something of a sideshow in june last year the average volume of gold cleared in london hit twenty nine million ounces per day the world's mines are producing ninety million ounces per year the traded volume was many times the clear volume look it's an open secret that if you want to make a quick buck from the hedge fund business you can call up any of these money center banks and borrow let's say ten or twenty billion dollars and sell counterfeit gold contracts on the market and they doing. all at the same time there's two. hours in the day when the banks around the world collude to sell counterfeit gold fraction of the market and you see four three or four percent drop that happens every single

day at the exact same time and as the bank as a matter of fact another bankers in germany are now complaining about this open manipulation because they they realize that this is why they're not getting their physical gold anymore because the market's been so destroyed by these crony capitalists that they will never see their gold and this goes on to something so much bigger that most little minds just don't understand it so he goes on to say but one day the ties that bind this pixilated gold may break with potentially catastrophic results so if you fancy gold that today's depressed price learn from boo but in demand delivery now this is something you know most people just like oh i want to make money i want to double my you know u.s. dollar exchange rate and here he's saying this is the whole thing it's going to battery s.n.d. jaitley is always told this is going to be no price for there will be no dollar price it will be no euro price for gold this is what crash j.p. morgan buy silver was about most people are like oh i want to make one hundred

dollars on it or i want to make five hundred dollars on it you're going to get no dollars on it you're going to have gold and silver at the end of the day that's what will happen they only aaa rated credit the foundation of the global banking system is gold and if you notice all these sovereigns are being downgraded from aaa to double layer etc there's very few aaa credits left those aaa credits and some are debt are the money they credit the collateral that is on the balance sheet that supports these enormous ponzi schemes like do it your bank is an enormous ponzi scheme so is h.s.b.c. so is j.p. morgan at the base of these ponzi schemes are a few ounces of gold that they've read that catered to infinity and so they've created this enormous hole a gram of fraud that encompasses the global economy now the bundestag. q one of the physical delivery of gold thanks to the report we did a few years ago which started the whole in motion they suddenly realize that a gold stoli but it related be there never get their gold back and see what your

bank which is there j.p. morgan is probably technically insolvent without a shadow of a doubt now that is something that was announced in one of these articles talking about the bundesbank only getting thirty seven tons back they did mention that it was that you and i went into the bank in case you don't know this march eighteenth two thousand and eight that weekend bear stearns had collapsed j.p. morgan took over the bank on a sunday night. bernanke slashed interest rates by seventy five basis points on sunday night monday morning at nine am we had a meeting at the boone to spank they were in tie us absolute chaos there were people running around everywhere they filed this off on to some executives that they didn't they were supposed to speak to the head of the gold market and axel vedder at the time he actually specifically said nobody is allowed to meet with the gold market person during our talks we spent several hours with them they showed us

around they mentioned you asked aren't you happy with all this chaos that you have all this gold oh no we don't have the gold here it's in new york. yeah they made it really and then the gold actually trust action committee gets picked up on the story and then lars schol who went into overdrive and that resulted in germany asking for their gold back from new york and other places and now four or five years later they're being told you know what. sucker and you know another thing that's emerged recently is that tim geithner himself specifically threatened s. and p. when they threatened to downgrade the u.s. debt from aaa and sure enough they were investigated soon after they did downgrade the u.s. so that's a response to those people who say the u.s. would never care. about the price of gold they don't care about that but obviously they do because this command and control they're trying to control what are they trying to control the trying to control perception about their integrity and their

ability to control things they're trying to control their sovereign bob price and believe that they're worth one hundred cents on the dollar. because if that's not true then price of gold should be at six seven thousand dollars an ounce and that's where we're going as it becomes apparent that they're lying about their balance sheets of deutsche bank and h.s.b.c. and j.p. morgan they don't have anywhere near the collateral they say they have they don't have anywhere near the assets they say they have neither does the federal reserve bank that you see b. the bank of england they're insolvent as in bankrupt as and as in there's nothing there but belly button lint now regarding all of these lies on top of the cover of frauds people have been controlled their perception has been controlled and distorted into thinking that it is all about finance and because of that we do have this pixilated wealth where gold can evaporate and the wealth of a nation can evaporate and on this final headline here why central bankers are completely wrong about inflation and how one country is trying something new this

is one guy's opinion on for x. live and he's saying that they keep on targeting c.p.i. and the price of goods and yet not only are those prices rising because of all the quantitative easing he points out in zero percent interest rates and free money and less loans to the likes on wall street well we just are not rising there in fact declining they're down almost ten percent since the collapse began and nobody is doing that targeting the wages and the fact that people are earning less and less and yet they're being more and more is being sold to them especially china where they have infinite ability to create endless amounts of products but nobody has the income to actually buy anything for this is the this is the really the genius of the global bankers is that they figured out a way to inflate the value of the assets that they own without. cutting wages in you know twenty or thirty years ago inflation meant that wages and prices went up simultaneously and it caused the inflationary cycle but then through to financial

engineering due to the derivatives that came onboard really online and in the one nine hundred eighty s. there was a splitting of risk and reward the same way einstein rest energy and matter the modern volatility options volatility formula affectively separates risk from reward and creates a nuclear bomb of financial engineering that kept wages from growing but asset prices for a few people to go up we've got to go up to consider this next time thank you your commanding controlling this ending all right stay tuned for the second half oh a whole lot more. to take. back with

great care. why do you think this is for life on other planets why the real truth is such disregard on this but one of the things i think sets a human mission to mars will accomplish is to make humans here on earth more

sensible about life about life on this planet about the planet itself about the environment as so one of the one of the key benefits for you mr march will be a better. welcome back to the kaiser report imax kaiser time out of turn to john mauldin author of this new book a new book called code red how to protect your savings from the coming crisis john welcome to the kaiser report. right now john this book could read there's one chapter in the book that makes it a must read for anybody who wants to know what the frick is going on because you talk about why interest rates should be raised they should be raised as

a way to get this economic policy back on track so talk about that. oh that's it has to do with the natural his. level of interest it was something that was pretty. actually talked about by a swedish economist wavelet at the center called whistle is the concept here is that there is a. tree we don't know what the jewelry bitters the market goes there but when you set rates below the natural rate of interest when the when the situation does that are there keeps a savers from being able to make the amount of money they should have but what it tells to investors and bankers and businessmen is it financial transactions make more sense than capital transactions because the interest rate is one part of the information that we use business in sin to each other and we don't really think

that with that we but that's what it is so when it makes more sense for me as a businessman to buy my stock gave to go out and do stock buybacks rather than buying a piece of pure good to compete with somebody else to try to produce more stock to more of the price of something else. which would screw for consumers as we get more prices and that's the natural order of the let me look at something here let me jump in if our second because or open up a couple of different things i want to unpack this a little bit because i think it's very i think it's right for scotland yard let me let me let me jump in though because for example janet yellen who's coming in as new fed chair and other including mark carney who want the bank of england they keep talking about the risk of deflation and they keep talking about we need to lower interest rates to justify that because they perceive this risk of deflation

but what we've discovered whether it's quantitative easing are zero interest rate policies it's just there to bail out the zombie banks if they're interested in creating inflation and creating capital investment in creating it restoring the economy they would raise rates they would do the opposite lou opposite correct. well what they would do is allow rates to go to their natural level in that twelve people in the case of the u.s. and i'm not certain how many there are sitting out in london or of the e.c.b. i think there's twenty seven of these he wouldn't people would sit around a room saying we think we know more than the markets we think we don't understand what rate should be and what they're really trying to do is to encourage consumers to borrow money they're trying to pick encourage businesses to borrow money and therefore consume more to buy more it is driven by the case here dearie that consumption drives the economy now i happen to think that it's not that we don't

have enough consumption is that we don't have enough income. there's a complete difference in your approach i think we need to make rates and allow things to to work so that we can figure out how to produce the most income and when we get out of the way of a business entrepreneur is when we allow them to do what it is they do that and produces. they can workers they do more john think you buy more stuff and the world transitions smoother. my gosh we had our problem this last crisis was caused by too much leverage. never driven encourage more to bridge the problem is it's good for your brother and all he's flat out his back door open so you own your two drool cure that here's another proof whiskey.

shot to cure i know i did john that's that's that's all the point is well made i'm just saying that in the it when the use of language here the use of the word the flay sion is completely misused and whenever they talk about we perceive deflation to be the risk then we're going to justify lower interest rates they're get they're going to do what years day what you're saying you're promoting consumption over investment you're promoting debt over equity you're promoting a you know currency wars over over a kind of a manufacturing base but i want to move on to talk about glide for a second. such a place this is lieschen if you want that's what the price of our emperor goes down or the president for sure or our own studio that's good nobody gripes about that oh but they don't want to see is the place it is when you start to go there when your houses go down. and so forth so in other words there's two definitions of deflation of course one is a good deflation where the price of electronic goods are going down because of

global competition sorry paying less for electronic stuff than the other type of deflation is bond prices are bonds are held on the books of banks zombie banks that if they were to actually let interest rates a rise to their natural level those banks would be immediately insolvent and those people would be out of work so here you have a situation where they don't want that'll interest rates which would promote savings and get rid of the zombie banks but they don't really make any room for competition of the deflation that you would normally associate with firms competing with each other unless you see outsourcing of labor to china. except meanwhile on the inflation side they love the inflation that comes with inflating away debt but they hate any inflation that as a relates to wages so that now there's no way inflation a wages but there's inflation and asked of prices how did that how did that happen job of i'm about not in building too much of this question there are certain things we look at as to why there's been no. growth. or the problem is that.

in the globalization process we know people who are competing on their own we surprise people whose who have a skill and this one talent is there's not a lot of it. they've actually seen quite a big rise in their income people who have skill that there's abundance of this scale and using something because my kids do it and i do that if you're a waiter there's a lot of people who can be waiters out there so waiters really haven't seen rise arise of their income so it's. it's a tricky subject when we say we haven't seen a rise. we haven't seen a rise. creasy income in general in the u.s. of u.k. gas for some time right now ok let's move on to gold for

a moment because you speak it you write a lot about golf and i was down by more than thirty percent last year this time last year now on days when gold is down. you know the the mainstream press will say this is proof that the central bank money printing policies are working your thoughts. ideas when somebody says that i just kind of sit back and go really so it goes up it means or no work to. the central banks. in general don't like. because it's a check on their own own actions or their what they're doing but are gold has a mind it's own. little too far it's said a normal correction. is will be going to see inflation turn back up because of all that money pretty when the boss of the money

turns up and i don't know when that's going to happen nobody does. something that happens a decoded a small cycle a little less decade it started turning down to that's what has allowed us intervention to print more money if you buddy oh but it turns back oh they're going to take that money off the table we're going to see inflation and then we could see gold skyrocket by the way we could see it go some time here in the near future due to completely different phenomenon as the other thing to do with money printing is that we have created a truth may be driven to the goal progress there is not another physical going to deliver oh products that there's only about zero we want to tell us for every contract out there so if everybody where does. everybody want but more and more people are deciding my physical gold i don't my contractor and that that move to

physical gold is decreasing the amount of gold of a will for physical gold ended when when that gold gets down to zero on where it's not available in the physical labor spot goes it's going to go through the ceiling i judge it you're a world traveler you've got one of the most or if not the most widely read financial newsletter in the world with think a million subscribers you've got this new book cold read how to protect your savings from the coming crisis you just you were just talking about gold in the fact that there is that the fed people are demanding physical gold and they're at risk of not. getting it because there's one hundred to one leverage or the hundred one paper claims to actual gold what about germany now you're a world traveler as i mentioned they asked for their gold back a couple years ago there were told basically they can get it back in twenty years they got back very little now there they have an investigation into the manipulation of gold they want their physical gold what's going to happen in this case are they going to press the issue are they ever going to see their gold and

houser gold been sold as some suggest by the central banks as part of this global effort to keep the price of gold cheap your thoughts we do know that it was. actually. it's a curiosity. that i want to go and i would be doing you best ok i was a citizen to let me move on because my let my final question we've got about a minute left is you're talking about we're in the early stages of a currency war certainly gold would play a role in that i would think so we've got about a minute so i just lay out your case for this is we're in the early stage of the currency war where do you see that going john wall them. the first real missiles fired by japan they're going to continue to watch the end is up from seventy eight to one hundred four it's going to go to one hundred ten one hundred twenty the one hundred fifty to two hundred. because of these we live it looks it's too cool

generators japan hass to could or the value of their currency have over time that means the rest of asia is going to have to respond europe is going to respond of germany is japan's biggest product competitor not korea not china not the united states joe he's got to figure out how to take the euro down which means it is going to have to create all sorts of situations going on in europe. and has decided that it wants to. take its currency down we're going to see khrushchev manipulation on a scale that we haven't seen since the seventy's of the thirty's and that's a completely different type of mortgage than most of us are used to gold during that time period gold is a currency and i would expect goal would go against most currencies all right john although i have to leave it there the book is called code red i've read it it's a must read as the title suggests it how to protect yourself in the coming current

you are thank so much for being on that guy's report max thank you a lot of a student at i found out. and that's going to do it for this edition of the kaiser report with me max kaiser and stacey to thank our guest john walton author of the new book could read if you like to get in touch tweet us a kaiser report and so next time i'll. try to get a lot of housing for homeless people but the government is not funding it and in a lot of the shelter today be having people brothers down the street because people begin to read didn't shelter to get involved right now ironically ironically i mean we're. consuming your whole. person.

when you paid regular people like someone like a lawyer or doctor or some other madison avenue it's boring and sometimes the homeless people to be able to deflect rather than by. say those countries that runs things for restraint or has you never been in this city or region city in the world what people. pay money to do give you. clues anybody can make you feel good you know get up. to london. the whole world is on the whole. of the original one a father one down the end there are funny to hang up the coins that building at the end of the street another one the more transparent society gets the money or the proper tears become we see military and state and police forces mobilized

against people who blend into the city the city the more people trust to look. drawn into rice who's the more new front slows the. fear that it has a thousand on. is obviously more for the latest because it's pink. women wanted to avoid rape they really needed to buy guns and how to use them i'm. sure this is the one that i want to go with them once again it's the fear factor all women are definitely the target of the gun lobby the one you don't kill but not one that killing money would have somebody with you with this with her. i'm noticing more and more that's really scary marketing tactics which implies that women have some sort of moral obligation to protect their family and young girls shoot out here. so we do have

a pink or. more kids young kids choke on food than are killed by firearms if being armed made us safer in america we should be the safest nation on earth were clearly not the safest. what is going to be who's writing it and where was it leading to seeking to bearings we seem to turn to the news to take heat for the medium is the message and this mostly by will mean the planet is now the method to defining clicked of reality each night if it's not on the news it didn't happen right. here. how do you operate dylan piggy i'm going to him was going to sports such. as proof i'm not an olympic hockey player bon mots

a. slam dunk please. eat my fly. biting the hand that feeds ukraine's opposition. government buildings precondition for an amnesty put forward by the government in a crisis gripping the country. is the first foreign channel to reach the syrian town of early morning attack by islamist radicals displaced and plain. and he's here to save the day. down in the dumps to get back on their feet.