the syrian army breaks islamic states a blockade of a key air base and it dares or as the operation to force the terrorists out of the city bridges its final phase. moscow's new ambassador to washington meets the u.s. president amid a diplomatic route over the seizure of a russian consulate. and germany's foreign minister tells our team that sanctions against russia could it be lifted if a truce in eastern ukraine is established. those are your headlines that does it for me the incomparable rory sushi will be here in about an hour's time with a full look at your news washington fashion stay with us.

i am extractor this is the kaiser report yeah things are happening in the world of currencies the dollars crashing the euro's up against the pound of course as britain sanctions the miasma of their own stupidity thanks to the breaks at the gas co and gold what's happening with gold and oil what's happening the oil and and stuff like that oh my god it's hurricanes everywhere you look of course where now in new york city we fled north carolina just in case hurricane erma was hitting there was a bumpy bumpy ride everything was all the flights were canceled except for ours because all these thunderstorms was a private charter jet thanks to the back on. well hurricanes everywhere and there's no storm bigger than the category seven hitting the u.s.

dollar this is a tweet from jim rickards who has been warning about this for years our ip petro dollar russia will sell oil for you on swap you on for gold weirds the u.s. dollar and all of this nowhere and this is based on the story we'll get into which is that china is launching a yuan based priced crude oil contract which you can. buy for you on but convert immediately to gold yeah this is massive you know few countries have tried this before remember saddam hussein tried to trade oil in your o.c. was assassinated a member of moammar gadhafi try to trade oil in your own he was assassinated then your third guy was also was yet a guy anyway countries have been trying to get out of the dollar for quite some time and trade oil in something other than the dollar the world reserve currency

because of course any time you buy oil you have to buy dollars first besar keep the dollar up but now china has taken the bold step here in the twenty first century and after they've built our economy on the backs of all american jobs all the american jobs went to china and the created a middle class out of dirt remember like other years ago fifty years ago thirty years ago before the world trade organization they were accepted into the average you know chinese person was surviving on dirt like they were haitian haiti but now they're all fricken middle class bitcoin mining because illian errors and what do they stand for thanks to all those marm walmart shopping american stooges well we're going to take the dollar down to the garbage. well this is a story when fallen for a while all the basic structure of this new contract has been put in place over the years and a few years ago a lot of gold bugs for example were really excited by the shanghai futures

contracts and gold and yuan price gold and that this was going to like immediately change everything but of course china doesn't operate like we do in the west they're like slow they prepare for years and years and now it looks ready dollar ization accelerates china readies yuan priced crude oil benchmark backed by gold now of course the important thing is you mention moammar gadhafi and saddam hussein iraq and libya those were oil producers so they are one thing but the consumer. your customer is always right 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 that is pretty significant. so they've been preparing with this for a while because a cave they're offering you on in the price a new one but a lot of nations we 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 ation 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 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. urging again you mentioned saddam hussein and one market alfie 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. stance 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 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 engulfing 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 said of 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. the nikkei asian review of course these are again the things that i was saying is like saddam hussein or moammar gadhafi just announce 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 elite 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 much about it because life they conduct right i mean look at those commercials he did for trump steaks and i asked donald trump i love steak is why favorite food chopsticks are the premium stakes are the best things you can get better steaks and told 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 up but my daughter say that he looks i way i got no idea looks good though he'll still

stiletto heels of his to yeah ok she's literally every many men do ok let's move on to this next quote this is another guy 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 graumann founder of u.s. based macroeconomic research firm f f t t told nikkei asia review of course you know. gold and oil everybody knows that in one nine hundred seventy one the us 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 we were 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 maintaining the post bretton woods global financial system and now that could be breaking but 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 hong kong through the sounds dirty well it's the new brics 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 cows but all 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 . i also have them down to the last two thousand years of history the 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 dollar trump which became history's got 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 not going to go away 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 stacey through the my for free for all vision and 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. fix travel destinations so it must be nice to live or is it.

disrupts the city's economic and social life. for us on the scene. of the. sun not as bad. as we. tried. to collapse. of a. couple. in the bush. the supposed. to. find. is it will fail. welcome back to the kaiser part imax kaiser yeah let's talk to michael pancho of

bento what is a pen to a poor pat something that's so portfolio strategies canto portfolio you can see he goes on there every day put a lot more website pent o.-port dot com right so what do you do well 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 it's very important to talk about krista currencies with you commit about something and you've got the monogram costs look pretty good you got the car right i looked at polled conflicts yes you ready to get ready for carriage 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 you 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 force just useless right take the batteries out of the smoke alarm we don't need a smoke alarm i mean we're the go 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 raise the 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 oh it's up two points i want to i want to focus in on you study 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 richer 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 isn't that a repudiation of what is such a 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 like this one 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 at 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 have and 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 a greek to your no ten you're no at forty percent ok and it's allensworth seven

percent portuguese seven eight percent so you know they had to come in because the the amount of debt extent in the world today requires low interest rates where 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 roughly say pray to the currencies and go. i'm going to tell you this i did already are you guys are you i was over global it is what was i'm trying to get at goldman. here's is going to happen the world is going to come into a pissing me 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've described it and now it's becoming a price signal worth noticing gold is now saying it's calling time on this central 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 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. jan ok sound so much 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 an malicious way it's very malicious 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 free anyone with a body want it they just want it on the back when they found out their own backyard the senate why do central banks exists to bail out the banks 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 on the to now ok it's free markets are going to let me stay close and free market couple societies pricer signals signal they give you tell you what the buyers and sellers are doing and i'm going point is that if interest rates are no longer reliable signal of anything yes so then that's why money to get now to your point. he's been flowing into crypto currency because it is a free market there is no such a bank destroying that market and now gold is catching

a bit thanks to crypto currency. synchro down her i don't know how do you know money away i don't know go there are over five thousand years ago where for the gold market currencies yes we help you yes thank you i heard there you know. your listen listen cryptocurrency is are wonderful if you believe their money i don't believe their money or nothing they fulfill 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 he's saying hold it out of the bank sixty billion dollars of protocol with servers and mining. so there's really only one cause twenty one million big going to be but sixteen but it's really really a crypto currency it takes about five minutes i know that's why they're like ours old i'm right here i got a pail that i can start digging for gold yet but ok but. but listen it's

a thousand dollars to get an ounce of gold from the ground it takes almost nothing no money no time to create a competing crypto currency is a thousand of them discipline and all it 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 it 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 just a trade a competitor i dreamed a competitor the a.t.p. right now for a dollar this 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 or so there is no limit to how many of these computer aided and each new one dilutes the purchasing power of the ones it's how many good ideas go

out and start a kernel that are basically all the ground with a liar over over over head looking down and saying it's keynes call so think about this think of this a logical 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 wouldn't you then agree that we have gold platinum in 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 out just like all the elephant or seventy nine of the periodic table and it has a properties of money that is not ascribed to copper or oxygen or helium well they don't hate it when they are selling out in oxidize they don't corrode right last year and it quite has unique attributes that we've got to go darn it that's it thank you we don't know segment thank you and that's going to do it for this

edition of the kaiser report with me max kaiser and stacey abbott like to thank our guest michael point zero zero fence portfolios look them up on google go to catch us on twitter it's kaiser report until next time by oh. i'm on city it's not coming from the trump of ministration which is being victimized by this the the imaginary hobgoblin of the russian collusion with the trump campaign is being used by trump and the mes and adversaries to do to them as a. bridge for a single purpose. a soup of. training very young. eight months of intensive school.

raps. and they save lives. as long as he runs. the intel into the community say to run this is not acceptable you should still fine on this until from our perspective ballots hamas. will be doing the place but. something that i believe israel should see to good or withdraw some goals with the united states with other states and to say ok it's not just you know a small israeli problem.