you know politicians would be described as angry i think i'm a strong. single. they got a lot of housing problem with people but the government is not funding it and then a lot of the shelter today be having people rather stay on the street because people begin to shelter them right now ironically ironically i'm worth more to the city of new york he told me. personally. when you paid regular people like someone like a lawyer or doctor or some other madison avenue it's boring and sometimes homeless people to live in the place rather than. say those countries that still produce restraints were. in this city. richest city in the world what people. need to do is give you. clues.

to make you feel good you know. welcome to the kaiser report imax kaiser currencies are crashing the markets are tumbling taper taper no no no no i mean print print more no way maybe we should taper not maybe we should print print print take paper maybe paper print paper print paper print paper tempered paper print think they think that all markets are down two percent four percent maybe we should print martin and i'm. you know having

this whole thing as a command control economy doesn't seem to be working you know milk we need milk bread no bread yeah hurricane print command control what the frick. stacy frick max it looks very difficult to do this command and control is very hard because the city's you control one single thing it's like i guess the theory of relativity you know all changes you change everything and then you have to go control that and then you have to tell this lie and that lie and more lies on top of lies on top of fraud to cover the fraud more fraud so it's a never ending cycle of a whirlwind of chaos you know the central bankers invisible hand and. in other words the invisible hand as described by adam smith you know made central bankers you don't need tapering you don't need print thing as such and it's a beautiful it's kind of the coin of its day you know from two hundred two hundred

forty or years ago or so that was the point 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 utter 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 port isabel 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 command and control is who have seemingly lost control learn from 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 asked for seven hundred tons of gold back you know that well according to this piece last month yan's wide been 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 or weidman is welcome to come and look through the bars and federal reserve vaults but the question is whose bars are they and then 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 moved last year cause such a stir after all nobody knows whether there are really two hundred sixty million ounces of gold in fort knox because the us government won't let auditors in side so that's the armchair farmer fraud. well it just goes back to fractional banking 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 tenth of one one hundredth of the gold that they say that they have and 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 goal the callbacks or london billion market association they would have to declare an immediate force raise your suttle 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 in the head from 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 do it. all at the same time there's two. hours in the day when the banks around the world collude to sell counterfeit gold contracts into the market and you see for 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 boob 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 factory 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 can make 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 boy 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 gated into infinity and so they've created this enormous hole a gram of fraud that encompasses the global economy now the blunder span. the 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 wouldn't be late it be 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 bidding to spank they were entire os 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. 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 in 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 it's 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 bond 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 at 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 a goose egg 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 forex 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 riveted came on board 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 the 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 got to go up to continue this next time thank you your commanding controlling this ending all right stay tuned for the second half oh a whole lot more. with great care.

so we leave that i see. your party years ago. that no one is as you would to guess that you deserve answers from. politics. i.

welcome back to the kaiser report i max 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 proved actually talked about by a swedish economist wavelet at the center called whistle is the concept here is that there's a bit of interest 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 signal

break 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 because the sinsin do each other and we don't really think that of it that way but that's what it is so when it makes more sense for me as a businessman to buy my stock. 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 because 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 to scupper to 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 our 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 the opposite correct . well what they would do is allow a race to go to their natural level and that it will people in the case of the u.s. and i'm not certain how many there are sitting out in london or the e.c.b.

i think there's twenty so these he wouldn't people would sit around a room say we think we know more than the markets we think we 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 is driven by the case hit theory 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 business is entrepreneur is when we allow them to do what it is they do that and produce it. they can hire workers

to be more jobs they can buy more stuff and the world transitions smoother. my gosh we 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 no he's flat out his back door open so you own your two drew if you're there here's another twist. a shot to cure i did john that's that's that's all the point is well maybe 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 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 and talk about glide for

a second. time to the place this is lieschen that you want that's where the price of our emperor goes down or the price of or it is the earth 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 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 then the other type of deflation is bond prices or 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 full interest rates which would promote savings and get rid of the zombie banks but they don't really make any room for a 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 it relates to wages so that now there's no way inflation a wages but there's inflation and massive 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 in income or the problem is that. in the globalization process we know people who need to be jewels are competing on their their we you 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 rights. people who are skilled that there's abundance of this. 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 or rise of their income so it's. it's it's a tricky subject when we say we haven't seen a rise. we haven't seen a rise. crease in income in general in the u.s. of the u.k. that 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 not work that.

the central banks. in general don't like. because it's a check on their own own actions or they're both are doing good goal has a much it's own good rental too far it gets horrible correction oh what happen is we'll going to see inflation turned 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 to dictate a small cycle with little less to keep it started turning down and that's what has allowed central asia to print more money if you buy the world oh wait it turns back and 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 sometime here in the near future due to completely different phenomenon has done to do with money pretty

is that we have created true maybe derivative gold products there is not another physical going to deliver all products 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 then when when that gold gets down to. 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 don't know. what is. actually. it's a curiosity. but i want to go and i would be doing you best ok loaded aside i disagree let me move on because my let my final question we've got about a minute left as you're talking about we're in the early stages of

a currency war certainly gold would play a role of minutes i just lay out your case for this that we're in the early stage of the currency war where do you see that going john wall them. the first rule of 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 without it looks it's too cool generators japan hass to could or the value of their currency and 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. has decided that it wants to. take its currency down or 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 mortgage than most of us are used to gold through that time period gold isn't currency and i would expect 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 how to protect yourself and the coming current you are thank so much for being on the guy's report max thank you a lot of student i found out. and that's going to do it for this edition of the kaiser report with me max geyser and stacey to thank our guest john malden author of the new book code red if you like the end times tweet us the kaiser report and so next time.

i've got a quote for you. it's pretty tough. to say where it's about story. if this guy like you would smear about time instead of working for the people most issues in the mainstream media are working for each other right right was due to. the dead rather.

what's up however on i'm abby martin and this is breaking the set shortly after perjuring himself about how the u.s. government is not only spying on every american citizen national intelligence director james clapper appeared before a senate judiciary hearing to blow some more hot air according to transcript clapper called on snowden and his quote accomplices to return the remaining stolen documents pertaining to the n.s.a.'s global spying apparatus yes aside from painting snowden as a criminal clapper also seems to believe that the dozens of journalists who have simply reported on the link documents as his criminal accomplices copper stands on journalist simply doing their jobs sends a chilling message.