and i want to show you this chart because china of course is a mega importer of oil from around the world the us is a mega producer of oil it's one of the top three producers of oil in the world here is chinese crude oil imports russia is the number one from there for their imports twenty nine point two percent of that angola saudi arabia iraq oman. venezuela brazil kuwait and other so it's very wide range of nations that they'll accept the basically will be able to buy gold in exchange for get gold and in exchange for their oil so i mean it's pretty significant. so they've been preparing with this for a while because i k there offering you on in the price a new one but a lot of nations well do we want the yuan do we want the currency risk or do we want to let everybody takes gold right the key word there is deed dollar as a stone and this is the trend is that ok jim records he wrote the death of money

the new case for gold all sorts of books the one that i really like that i can't remember the title ok but anyway he's been predicting this for a while but the the trend here the story this scenario has taken a few years to develop that's why it's been overshadowed by what's happening in the crypto space which is you know every day you get these huge moves very exciting but underneath monies that are these bigger geo political moves involving chinese yuan gold you know russia this is something that's more seismic and century defining but this is huge i mean we've been talking about this for fifteen years in terms of dollars ation and this also makes gold back as a reserve currency effectively i mean gold is now there's a new gold standard. emerging again you mentioned saddam hussein in one mark and.

and they were like oh we're going to do this and of course they didn't have a plan china doesn't do that it took a decade maybe two decades to lay a ground or for this and not tell us the art of war well they exist because in other words if they don't dollars onto the world market the dollar would collapse faster than they could hedge against it but by aggressively buying gold as regards others i've been talking about a sceptical russia they're now they now have a hedge so they dump dollars into the market or everyone dumps dollars is great for gold so they're a hedge they've got a hedge against dollar collapse the u.s. stands oblio as gold but many argue that has been loaned out as part of the attempt to keep the dollar high and gold cheap you know this guy minucci and it works for trump in the treasury assistant secretary in the treasury secretary wanted to take in charge she recently went to fort knox and held up a gold bar but unfortunately that gold bars been loaned out minucci doesn't tell us this because he's

a fraud but there you go well while we were engaged in all sorts of circus bread and circus and the aftermath of all these hurricanes and fires and golfing america not only in the white house but actually in the physical space you know that the heads of state of russia and china were meeting and discussing these sort of things and clear and things like north korea and set of chum just spouting out of like we're a ball now i'm like we're going to wipe them off the map and kim jong un responded we're going to wipe you off the map and stupid things like that's like a twitter war but here again go back to this crude oil futures market they say that the crude oil futures will be the first commodity contract in china open to foreign investment funds trading houses an oil firms the circumvention of u.s. dollar trade could allow oil export or such as russia and iran for example to bypass u.s. sanctions by trading in yuan according to nikkei asian review of course these are.

again the things that i was saying is like saddam hussein or moammar gadhafi just announced stuff without a well laid ground plan in place for the consequences of their statements the same thing here what jim rickards had been warning about like when the u.s. went the nuclear option said we're kind of people often swift as soon as you do that you know like well ok now we're going to have to devise our own systems here the same thing it's like. we keep implying sanctions sanctions which just harm the people usually have the general population of a nation not the elites so you do that over and over again and then eventually people are going to say well we have to devise a new sort of trading mechanism something i think in the history books will go down as the billy mays with presidents you know billy mays is the probably the most famous t.v. huckster of them all like billy mays here for the fabulous bunch of manic biggest lies they conduct right i mean look at those commercials he did for trump stakes and i asked donald trump i love steak is why favorite food chopsticks are the

premium stakes are the best thanks you can get better steaks and twelve states you know the guy is billy mays who died from an fetid mean methamphetamine poisoning as i understand it and there's a truck car on the smell of his own flatulence spewing nonsense selling garbage oh well my daughter say that he looks i way i got no idea looks good though he'll still stiletto heels and used to yeah ok she's literally every many men do ok let's move on to this next quote this is another this is another quote from somebody in the financial sector about this new oil futures contract price and yuan convertible immediately to gold at the shanghai exchange the rules of the global oil game may begin to change enormously luke grumman founder of u.s. based macroeconomic research firm f f t t told me asia review of course you know gold and oil everybody knows that in one thousand. when he won the

u.s. went off the gold global gold standard effectively going bankrupt and every recent innovation and nixon not only did he do that all of it on thing but he took us off gold what a loser well actually speaking of vietnam is a great documentary coming out where we just ran into ken burns on the way well we're at reagan one in two and we saw him on the subway coming down here yesterday didn't like this let's move for cocktails later this is i am on the subway ok so here we have now the dollar was backed by gold first and then it was backed by oil that was meaning the post bret maintained in the post bretton woods global financial system and now that could be breaking but you know not restructuring the global financial system i want to also point to another headline that was missed in all the craziness of the resistance and trump and insanity here in the hurricanes and fires inside of iraq and here's a tweet that says iraq hash tag bricks bank headquarters breaks ground in shanghai the one hundred fifty meter high building is expected to become

a new landmark along river onto the sounds dirty well it's the new bricks bank and this is going to replace the world bank i.m.f. in terms of these brics nations if being able to basically ply their dead others and the bigger the edifice the smaller thing though here we're talking about a financial news story it's a new financial system global financial system an economic system here china's able to with their huge. pile of cash they able to now basically build an empire like the way the u.s. did after world war two they were the only man left standing the only nation left standing they had some capital they had some gold they had all the gold that everybody had sent to them for protection and they were able to do the marshall plan now china's able to do the one road one belt the one belt one road system here we also have them you know the last two thousand years of history. countries that

were in dominance in the world for the most of history were china and india true ok america was just a blip on the screen america was like billy mays' song vege of magic's which became donald trump which became history's thought of history's joke it's just a blip same with europe same with europe that was a blip to relative to the the thousands of years of china and inscrutability in china is now going to go away do you think they invented gunpowder fortune cookies are just going to disappear off the face of the map they invented paper money i think that was a long term plan they knew the best way to know how to take down china is obviously with bitcoin don't forget that central planning chinese politburo communists fake capitalists well i'm looking at stacy through the my for free for all vision and it's i think she's time to wrap it up for this segment and we'll be back after the break. so don't go away stay right there.

as long as you run support still the intel international community just say to run this is not acceptable you should stop firing on this until from our perspective baseless ballots hamas saw those is holding doing all the place but this is something that i believe israel should see to good with russia of course with the united states and with other states and to say ok it's not just you know a small these really pulled them.

down not once not. enough leaves off let down one might have been a south the definitions enough and by any. one seeking i mean south. haven you know equal city can sound good docs to give the band and then you're going to bring. how we think i'm. young would be might not be a boy going to the well not beach. sounds out. just get silly new climbing i love just that you know but let me focus them tokyo find. he's going to keep going to be.

like. his look was because did it because it didn't seem quite a cultural shift from the old grannies. to. slim.

but come back to the kaiser part imax kaiser yeah let's talk to michael pancho of bento what is it dental port that something that's so portfolio strategies canto portfolio because he goes on there every day put a lot more website pent up or dot com right so what do you do or i did manage money i write a podcast i have a show called pencil nomics program which i invited you on i'm still waiting to hear ok from you three important i want to talk about krista currencies with you commit about something and you've got the monogram costs look pretty good we've got i think that all right i looked at polled cufflinks yes you ready to get ready for carrot baby that's fantastic let's get into some now michael pena who of course but following for years he's a outrageously lucid commentator in this space i will say i listened to him and he's got some good stuff so i'm very honored to have you on thanks reza back the last time we spoke you're on the show michael you said we discussed cunto nomics cut the debt before you cut taxes mr trump ok talk about that as

a sure i mean not not very well i guess there's a remnant of the tea party left in d.c. but now i hear republicans talking like they're democrats liberal democrats take just raise the debt ceiling when we even need a debt ceiling for sist useless right take the batteries out of the smoke alarm we don't need a smoke alarm i mean we're the gun it's governor it caps the spending limit for congress they cannot agree on how to cut spending liberals democrats republicans conservatives ok so on this is what happens we know you don't now they're trying to attach the funding for harvey with the raising the debt ceiling but now some there are some the the the vestiges of the tea party movement are saying no we're not going to do that will fund harvey relief and erma relief but we have to have some kind of concessions before we reach that debt limit and i'm all for that we're twenty trillion in. that you know our our deficit are going to be other already about thirty five percent higher this year than last year we have twenty trillion

as i said we're going to go to a trillion every year just because the demographics every one percent interest higher in debt service payments it quits to an extra hundred billion dollars or i think no two hundred billion dollars in debt service payments ok so we have a huge debt problem we're going to have another recession is going to happen soon that will lessen that happened that added an additional one point two trillion dollars to the annual deficit so somewhere along the line we've got to worry about deficits i assume central banks are going to be buying everything forever you know in japan the b.o.j. is printing up i think it's now eighty the equivalent of eighty billion dollars every month with no end in sight they can't even pretend to end that because their ten year note is zero percent ok now in germany i mean there is no ability let me jump in on another show so you've covered a lot of ground there i know it up two points i want to i want to focus in on you said that the interest on the debt and central banks buying stuff yes ok now is it

true that central banks buying stuff in this case bonds are artificially keeping rates low course at the same time they can say well you know we can go into deeper in debt because our interest costs are so cheap but they are them they themselves are manufacturing that reality through their machinations of the market by buying back debt but is a matter repudiation of what a central bank should be doing oh my god what we used to have a central bank used to say well we want stable prices now we need for some reason everybody agrees it hypnotic fashion that a two percent inflation target is nerve ana and if you have great growth and low inflation that's a problem ok well let's let's hope about that we talk about all the money printing fifteen trillion dollars of confetti of counterfeit money used to push interest rates down to all time record lows i was saying in germany the german boom is. point three five percent what the hell is a german boon a ten year note going to ten years point three five percent who's buying that but

central banks i get why you like me just make this what i'm so i'm so sorry but let me just make this point. it's like having the ability to go into debt and never have to pay any interest on it and never having the public to buy it the central bank owns the debt guess what the treasury pays the fed interest and the fed credits back the interest on them and they never have to float the bond will have to know we don't know what religious rates are where they should be because the feds bind them and the b.o.j. and the e.c.b. that's why i'm i'm so confident that you know you could go along this market a little while longer max but guess what's going to happen once the e.c.b. this is the linchpin when marial drag he's going to probably do it in october when he comes out and says we're going to taper our bond buying purchases watch that german boom rip from point three five percent or way to two or three percent very quickly it's going to drag treasuries here and bonds all over the world sovereign debt is going to skyrocket and that's when this phony economy and stock market

implodes i know but we've been saying this for five years that there's a phony economy a phony market that the central banks you know there was a great hope that the european central bank would not do the same thing the fed was doing to the bank of japan was doing that there was a vestige of the old bundesbank that they were anti inflation that they would never monetize debt and yet they want to did it and drag has been doing it and they don't seem to care about it and but the capacity to continue on this game with the bank and switzerland buying back by apple stock and buying assets in the bank of japan buying e.t.f. i mean i hear what you're saying well i don't see why now should this and i mean i can and i can hear the whole another fifteen trillion dollars worth of us going forward so draggy is running out of booms to buy that's one reason and let's just go back to two thousand and twelve though you remember the european debt crisis circa two thousand and twelve. when you had a greek to your no ten you're no at forty percent ok and it's allensworth seven

percent portugee seven eight percent so you know they had to come in because the amount of debt extent in the world today requires low interest rates or the whole charade implodes as i said before so i mean when can they ever get out of money printing here's what's happening and so that sort of the roughly say pray to the currencies and go. i'm going to tell you that i did already are you guys are you i was over. what was i'm trying to get at golden. years is going to happen the world is going to come into an epiphany a watershed moment and i don't know the date but it's going to happen soon when they absolutely reject the paper currencies they're going to lose credibility and the reason why they're going to lose credibility and no we've been saying this for a long time and listen central bankers have kept the game alive by buying now between the e.c.b. in the b.o.j. it's one hundred fifty billion dollars worth of bond purchases every month this is counterfeit make al capone look like

a saint ok that's what's keeping the whole thing afloat yeah but sooner or later and i think it's going to be sooner people are going to understand that the central banks can never stop inflating the amount of base money the base money supply that's what they control not broad money base money supply and that means that interest rates in real terms are going to be negative for a very very very long time and that's what goal is sniffing out and that's the whole for genitor of the cryptocurrency craze well ok i think the goal is a breakout of a bear market is better a bear market for four or five years it ignored the reality of used as you describe it and now it's becoming a price signal worth noticing gold is now saying it's calling time on this cycle bank missed mischievous behavior we can say that and of gold prices continue to go higher it will attract sufficient capital to pull the plug on the bond market. conceivably because the bond market is a one way bet you know especially if you're headed and you've got

a ton of money you can basically just clip the bond market all day long but if gold is going to call time on that market then you could have a significant reversal but i want to talk about a country greece greece they had very high interest rates as part of the country going into freefall those were bought by the european central bank rates have come down which suggest in an economy when rates are coming down that it is in a growth however greece is continuing to fall into the adriatic if that's the correct body of water ionian probably ok but it unemployment skyrocketing. jannah ok sound somewhat ok unemployment skyrocketing so there is in other words. what is going on here if the e.c.b. is if the rates are reflecting one reality or improve the economy but the reality of the reality is this a basket case economy is a basket case isn't that beyond just failed policy isn't there something more macchiavelli in going on here the e.c.b. is acting like beyond just a screwed up central bank that doesn't know their elbow from the canopies but

they're acting in a malicious way it's very militias well they're trying to keep their country alive i mean they have really had no choice i mean i blame them i would i would like to seen two thousand and eight two thousand and twelve is to let the fruit is anyone with a million are they doing well on the back when they found out their own backyard you sent why do central banks exists to bail out the bank you remember the whole two thousand and eight credit crisis when we do did we give checks to people who are in arrears on their mortgages now we took banks bad assets off their balance sheet and put them on incentives on a very market capitalism crisis. couldn't know ok it's free markets are going to hit me things are getting close in free market capitalist societies price or signals signal they give you tell you what the buyers and sellers are doing and i'm going to point is that of interest rates are no longer reliable signal of anything yes so then that's why money to get now to your point. it has been flowing in the crypto currency because it is a free market there is no sexual back destroying that market and now gold is

casting a bid thanks to cryptocurrency. synchro done her i don't know how do you know money away i don't know go there are for five thousand years ago where for the gold market currencies yes we help you yes thank you i heard. your listen listen cryptocurrency is or are wonderful if you believe their money i don't believe their money i don't think they fulfil are still for equality wanted qualities of money money ok so which is money what separates the theory i'm from from that coin what separates a huge profitable gold mine of south africa from me going down the street with a pail and i know i know this i know it takes about a thousand dollars an ounce right to pull and saying hold it out of the bank sixty million dollars of protocol with servers and mining. so there's really only one cause twenty one million big going to be funny but sixteen but really a crypto currency it takes about five minutes i know that's why there i thought i was old i'm right here i got a pail but i can start digging for gold yet but ok but. but listen it's

a thousand dollars to get an ounce of gold in the ground it takes almost nothing no money no time to create competing cryptocurrency is a thousand of them discipline and what is going to lose it all and there is only like i started to let out a call is t.t.p. protocol there was internet once it was established in the mid ninety's it became the defacto standard of the internet you can create another h.t.t.p. standard that runs internet but the cost of doing so before have been already are able to accept it so it's got a barrier to entry first mover advantage of a multi-billion dollar slice of the industry is not going to come up here you can generate a competitor here i dreaded competitor they see g.p. right now for a dollar there's i mean it's going to work it's going to take the market by storm know what what separates one these are these become commodities that there are no decentralized digital money they are created by the hundreds. every every month so there is no limit to how many of these computer aided and each

new one dilutes the purchasing power of the ones just how many good ideas go out of style kernel that are basically all the ground with a liar over over over head looking down and saying is k. is called so think about this think of this illogical experiment so if if we were a scientist create discovering elements in the ground natural elements by the hundreds that were beautiful very very rare and virtually indestructible by the day would you then agree that we have gold platinum and then all these additional elements that fulfill those qualities fungible tangible blah blah blah. wouldn't that dilute the purchasing power of the existing precious metals that were already above ground zero just like all the elephant or seventy i don't the periodic table and it has a properties of money that is not ascribe to copper or oxygen or helium they don't hate it when there are seven oxidize they don't corrode it quite has unique attributes but we got to go darn it that's it thank you. thank you max and that's

going to do it for this edition of the kaiser report with me max kaiser and stacey i read like to thank our guest michael point zero zero zero for fall yos look him up on google go to catch us on twitter it's kaiser report until next time.

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going to know will not be. such as our. next guest feeling if one means. just that you know. he says them tokyo found it. does work with because. he's. here's what people have been saying about rejected a knight to us to just pull along awesome the only show i go out of my way to launch you know what it is that really packs a punch oh yeah there's the john oliver of our country americans do the same we are

apparently better than blues nothing that some see the people you've never heard of love are down for the night my president of the world bank will tell you until we're. sure it's like send us an e-mail. as aid flows into the syrian city of day arizona for the first time since islamic states hold was broken government forces are now fighting to retake the city's last remaining districts. russia's newly appointed ambassador to the u.s. meets the american president in washington what challenges the diplomat is likely to face. and in an exclusive interview with germany's foreign minister suggests sanctions against russia could be lifted if a proper truce in eastern ukraine is.