what is true what is faith. in a world corrupted you need to descend. to join us in the depths. or remain in the shallowness. hi this is max kaiser this is kaiser report summer solution home i guess me just sort of all out there in this series now today recovering the d. dollar is a should big global ization what comes next with investment manager lawrence

parr lawrence welcome welcome thanks so much of stacy for having me appreciate it so lawrence i guess you know obviously we ended july hitting new all time highs in gold silver is also on a tear it's quite a ways from its all time high however and what i want to ask is really how much this economist cover free money when government spending knows no limits is is the free money it was never free and we can see that in gold prices free money is good to keep the system rolling obviously that's why they put it in place. of course is what's the underlying value of the money. you know that money is in the process of dying and i think that's what we're all observing very notably it's reflected in gold and silver prices right you know you say they can print all the money they want but it doesn't mean that it has value and we haven't lived in war

all the fia money since 1971 where the value is always based on a relative valuation to other fee out money right this spend this crazy kind of strapped bar self-referential or crazy days ha or all these big commies are just printing and they refer to each other what they're printed money and it's a simple storage and that when this bubble and found money burst and this is by far the biggest problem with probably ever seen in history there's no bottom to it really can the whole thing can just crash. and we're talking about hundreds of charlie hands a family disappearing lawrence wright and i think it's hard for a lot of people to get their mind around they just sort of want to go there because the implications of collapse with the global reserve currency are very very severe and and somewhat sad obviously the implications for society but but setting out aside i mean it's what happens if you set the system up with bretton woods the

dollar being the reserve currency and all tied to gold and then of course that ended 70 august 15th $71.00 and. you know they all have been suffering referential as you point out the dollars in the cleanest dirty shirt and there's somebody on twitter that you know says milkshakes theory because everyone needs dollars in the short dollars you know the dollar remains strong and it has my view is that that's true to the extent that people need dollars but it eventually what happens when there's an alternative to the dollar and it becomes clear that the issuing authority is not trustworthy 'd and has as really been running a large ponzi scheme which is what's been happening and the models are here to call call the law on the fundamental value of the dollar and it's you know it's tragic and it's it's potentially rather scary and has some bad implications. quite an optimist so i actually think that the system is broken needs to be fixed and that

there's a good other side to it once we get through once we get through it will no doubt be a difficult period you know you mention 1971 when we went off the gold standard rick richard nixon closed the gold window after france asked for $300000000.00 worth of their gold back in the the trade deficit going on and then soon after that the united kingdom asked for their gold which has also happened to be about $300000000.00 worth and richard nixon and said close the gold window and hand it back england insead got some dollars so in this moment today in 2020 do you think elvira now believe who is the head of the central bank of russia that she will kind of be seen as that equivalent of charles de gaulle the charles de gaulle of central bankers in that. you know russia the russian central bank has been stockpiling gold over the past 3 years they've bought 521000000000

dollars worth so do you think they might be seen as kind of the last huge buyer the last until bank able to even get. gold in exchange dollars and mansur absolutely yes. you know it's not it's not just her i mean it was shocks rough who counsel the gall to to demand the gold and he was right obviously but also the chinese i was and touch with the very intelligent swiss investor over the weekend and his view and i strongly support it is that combination of china and russia will be the 2 countries that will lead us back to having currency backed by by the precious metals and they'd both been preparing for i mean if you look at you know the behind the scenes purchases i'm sure china has multiples of what they report in gold reserves that they've probably got 20000 plus tons of gold reserves and as a result it would not surprise me at all when when the thing comes crashing down

that the 1st 2 currencies they go to a gold backing are china and russia and china's got a big credit bubble too so that's going to be tricky but russia is actually in a very very good position they have you know very low debt you know they don't run large deficits except euro and they've got a a large natural resource economy as well so. i think those 2 companies countries have been playing the wong game on the currency side and will benefit as a result of having done so right south orange to follow up on china russia what you're saying there there are a lot of tension that's been building up between these 2 at particularly u.s. and china you know for years it was about the symbiotic relationship that these 2 would never come to blows because they have such a great system going while we export the jobs to them and they export cheap goods to us but now it's come looking like it's getting increasingly more. of a problem and there's a 3 cities trap and and the mex the u.s.

dollar some of it is coming under attack so it is part of the conflict between his country 2 countries 10 that if you see the. developing you know very much of me graham allison says that through said it is traveling is dead right and you know obviously that the embassy you know moves last week and then if you look at what's come out of the white house i mean there's a policy paper out there talking about dealing with them as a strategic competitor and that if you look at the mellons credit bubble bulletin this saturday had some great stuff in it about my pump a.o. and the speech he recently made and now there's no doubt that you know our interest in china's interests are not aligned and. you know. i think the tension is going to continue to grow what i'm hoping and praying is that you know we can actually get through a complete worldwide currency collapse without you know slaughtering 40 or 50000000 souls the way we did in the last large 4th turning which you know obviously was the

the pression were 2 or so. you know it's entirely possible to do a currency reset and not have people die but it's it's not always the case so we'll just have to see how it unfolds but regarding that relationship with china my pompei i did accuse them of economic blitzkrieg but what is the role of the united states in that and in particular the structure that is the us dollar by necessity it needs to run massive trade deficit and order to have a global reserve currency so isn't i know everybody in this space hates keynes keynes didn't warn that they would have to run a huge deficit in order no doubt he had it right bretton woods in that respect i mean the bank or was not a bad idea and was not the direction they went they went with the dollars reserve

currency and you know i mean it's it strengthens the level right without you know without a way of of satisfying a neutral reserve asset you know we have to run deficits and they have to. we ship our jobs to them and they they take our paper and and send their junk to us and so it's got all be restructured i mean there's no doubt about this probably the best thinker on this i'm sure you're aware of it many of your listeners are as well as luke roman who has done a very nice job of kind of writing about and unfolding how you know that there's a there's a call for a neutral global reserve asset and you know there are a lot of potential candidates but you know having the dollar is the reserve asset i think we've got the end of the line there because we're too far in debt and you know the math just the math is falling apart on him now i mean it's you know you can't take the reserve asset into negative negative interest rates and not have the whole thing collapsed so it's a mess it's there's no doubt it's

a mess but you know there are some encouraging signs of bank the fact that they're willing to even consider putting judy shelton on the fed board indicates to me that somebody there is saying hey you know we've got some real issues in this area and let's get somebody who actually has thought this through to have a seat at the table i mean when she was when she came up in front of the senate hearings i mean they treated her with justice dang i think somebody i'm guessing it came out of the deal yet right no surprise it came out the d.o.d. or somebody whispered in somebodies ear and said no no no no we want her at the table when this whole thing goes down as a lot of stuff going down that's going to be him or so i thought that was interesting right yeah you manson he can have the world reserve currency go into negative interest rates but every single week rates for u.s. treasury paper get lower and lower and lower and a lot of people are now saying you know it could go negative down in tampa said he liked it to go negative and so is it possible to go negative what does that mean

number 2 kind of to go with that question i notice that no matter how much they print money philosophy keeps collapsing towards 0 or those 2 things related. i think they are max i mean i think as you know others have pointed out i mean the reason it's 0 is there's so much of it out there it's not flowing around i mean think about trying to get you know money something about water in a bucket trying to get a floor on versus trying to get water flowing around in a lake you know it's a lot easier to swirl around the bucket when there's less of it so much money there's no velocity i don't know the answer your question of going to take the reserve currency rates negative i suppose they can i guess i can't see why not if they made the choice they stated they will not do it and i guess i tend to take them at their word on that i think what they prefer to do is just get them so low and leave them there and geraghty that they will stay there that effectively the real interest rate which is what drives the price of gold and drives the gresham's law substitutes the really interest rate is so deeply negative that they do get the

inflation and you know i think that the you know as i wrote my last quarterly letter i think that what's going on here is is they you know they're actually they're ok with gold the gold price going up now they probably don't want it going up quite as quickly as it's going up now because eventually gresham's law kick in and they'll be in a lot of trouble and i'm sure they've got some some tricks up their sleeve to to slow it down but you know it's definitely right i think their plan is to run deeply negative rates that's my belief and to create inflation and they know they have to do it they absolutely know right now is the bird we're going to take a break and when we come back pick up on this conversation fascinating stuff dollar gold hyper big quantization is coming up right after the break i'll go away.

join me every thursday simon short and i'll be speaking to us from the world of politics. i'm sure i'll see of that.

crazy. he just. shocked but. i have been waiting for the moment of complete and total societal collapse i never knew it would happen this. new york alone has become a place of dozens and dozens of demonstrations were driving through brownsville one of new york's neighborhoods that has the worst homicide shooting rate in the city. going. oh my god this is the most of the season you. know i think we're going to the 2nd grade so we're not even done with the 1st we're . going to let you know. it's a mass was going on behind those walls the richest country most powerful and yet it

has the worst response there well country. if you're doing nothing about it the level of that's going to be so great. that. we're going to have to bury that maybe and. maybe in potter's. this truly has become a symbol of the current in new york. welcome back to the kaiser report summer solutions that's right we sort it all out we've got all the answers with lawrence apart we're going to continue our conversation with lawrence lawrence i want to pick it up and ask you about the gold dow ratio

this is something that's been. bouncing around finance all markets and discussions for a long time that every now and again the price of gold equals the level of the dow jones we saw on an $800.00 back in the early. 1980 period we saw it again and they have believe 2011 period if we get back to a dow gold ratio of one that would imply either gold goes up to multiple you know i'll hire the 20000 or the dow's going to come down from its 242-5000 level down say 10000 or some combination of the both what do you think this is going. to have no idea and i don't really have the solution but i i do believe they are converging because the dow represents. a group of stocks that are you know driven by a credit bubble that's in the process of collapsing and gold is still deeply deeply

undervalued in relation to its substitute which is based money and credit and so i think there's almost no doubt that the ratio which is in front of the 56 well no it's higher than that it's what is 821000 or 202-6500 divided by. team 100. so it's $13.00 today and it's search stream it could be as low as $1.00 to $1.00 so if it gets to $1.00 to $1.00 you know if we go symbolically it'll be 100000 dollars one $100000.00 gold if we do something less than that it could be $30000.00 or $3030000.00 gold you know it all depends i mean the the correct price for gold is a function of. you know well 1st of all gold is the numerary so really gold is just price announces right so now it's a gold is an ounce of gold what you want to measure against that i would say that you know is other things in the dollar has been the world these are currencies so

there's one way of measuring it but you can also measure it and girls of oil or amount of bitcoin or other sorts of things. but yes we're going to a ratio that's going to be much more in favor of gold than the because we're still very much at the high end of the range of the 2 if you look at 100 you're serious. i grew on that max ok so let's talk hyper bitcoin as a shan as as we see they feel that system disintegrate and you know everybody sees this everybody's talking about it now the likes of raid ballio the likes of stan druckenmiller and the likes of paul tudor jones paul tudor jones has a huge position on gold here however has also started investing and decline saying that this will be the fastest horse in this race do you agree with him and his position and bit calling and what he sees as the reason for it he sees inflation

coming he sees these negative real rates he sees that the central banks have lost control completely i mean his 2nd quarter letter was brilliant i own a lot of bitcoin i'm a huge bitcoin fan and i think it probably at the end of the day will be the fastest horse in the race. i think it's actually contender for a part of the whole solution of world reserve currency it could be the numerary having said all of that it's still only 11 years older or 12 years old and so and you know if the option is very early on and i like to view it as it's a call option on the out collapse and it's a call option on technology and i love it i own it. but i also love gold and i own more gold and i own more gold mining stocks because i've got a 5000 year track record and i don't have to rely on an electrical grid which i think ultimately will become quite stable. you know there i think there's merit to

both and i often i find it funny and sad on twitter when people go at each other you know that kind people go if they go people or vice versa because i keep saying same team same team you know let's go after the fia they're the ones that are you know ripping us all off and that it's really you know damage this country and this world honestly i mean i you know i live for the day that he will be in the history books right beside john law and it's common i can just tell that it's common cal of course to tell the audience who john law is and his role and monetary history i think most of your audience knows if they're watching your show but john lowe is a english finance chair who went over to france and convinced convinced the french monarchy that. they could they could print money to access and he blew a bubble in the south sea bubble and. then he of scotland with all the gold in the whole thing collapsed so he was it was the 1st large scale money printer in the

history of the world and that may not be true there may have been others because the 1st modern large scale money printer in history and. it was it was one hell of a ponzi scheme and he ran out and i honestly think that when blackie you know came out with this misinterpretation of the great depression and his helicopter money speech. you know he was channeling john law. and you know let's take a little while to play out it's really the same thing said a follow up on the john laws ben bernanke the analogies so what john law the colorful history guy he wrote into paris and he bamboozled the kangen monetary history was created in the states ponzi scheme interestingly though when burnett is really it took over from alan greenspan is alan greenspan created this idea that markets could be assuaged with money printing and we had the greenspan put

which means that any time markets went down greenspan would bail them out and print more money then bernanke it's a cover then janet yellen sic over and now jay powell is taken over so i got 4 successive fed chairman and woman who have been engaged in this obvious fraud with bernanke the way he was very had a very bad poker face and you could tell he didn't believe a word he was saying he was just setting himself up for that job at citadel when he got out of the out of the fed and cash in so many politicians and policy and fed chairman do but it's interesting in that we've had now 35 years of this fraud and it goes from chairman to chairman to chairwoman to chairman and as a result the subsequent crash and devastation could make the what happened in france look like a picnic and france went into a severe economic tailspin and the whole country crashed and i think this is this

crash that these 4 fed folks set up could be bigger lawrence. you know i have to agree with the maxim in it if you had hyperinflation before in history you know why aren't argentina and others and generally there's something sound you can go to you know you haven't had the world's reserve currency go die for inflation at least to the best of my knowledge until you know since since the times of the roman empire. you know when when our own collapse and and that led to the dark ages and so yeah it could be pretty bad and i think that's tragic and unfortunate and makes what they've done all the more criminal and you're right it wasn't any one of them that did it you know they each took a step and you know as one of my friends in this business says they all just kind of figured out a way to take the bride you know they were they they could have done the right thing but now let's just take the bride and you know nixon took the prize and then

you know greenspan took the bribe to mean greenspan used to be an end rant you know gold is that gold is great guy and he decided being famous was better and he sold out and so on and so on so you know they've they've all kind of taken the bride and it's it is going to be tragic no doubt let's talk about the upside to all of this and our summer solutions special because you know max and i have lived in europe for quite a long time and if you read about the 81800 and early 191-0020 s. and europe you see that you know they ran empires they had it they were imperial powers they were colonial powers and yet the people themselves lived horribly now they live amazingly well so many people in france have 2nd homes they vacation for 8 weeks a year they have a much better lifestyle than the average american when we do lose our exorbitant

privilege isn't that exorbitant privilege just reserved for a very very very select few i mean the fact that we have. have mass unemployment and mass opioid overdose can be tied to this problem of the exorbitant privilege that these the elites really don't need the population at all yeah no i completely agree there's so there's a lot to go on there and. you know the one thing i will say i mean to people who are despondent about all these problems in this 4th turning that were in the process of going through as bad as it looks i have read a lot about hyperinflation as i've studied hyperinflation if we don't get into wars and kill each other all the assets are still there all we need to do is transfer the wealth into the right hands and you know if you actually and then not make political mistakes i mean if you actually study why mark there fully a guy came in after the y. marco laps in germany in 23 shocked and he cleaned it all up they went to the gold

standard and bank the country was cooking again in 2 years all the stuff was still there you know the auto manufacturers and the machine tool people are all making stuff and and once you once you fix the money you fix the fundamental underlying broken problem and the society will get better and fairer for everybody it's a it's just critical you've got to fix the money not in that case the tragedy is they were also hurt and beat up and pained that they went and elected hitler and you know so but but that's a different matter there are economists it was running fine you know they were just that they'd all been wiped out you know as a result of on having stan what he did and so to follow up on that. they the money printing that went on and you had mentioned that that debate reset that's coming can be done so peacefully we don't need a war we can dissipate play at the same time we have something brand new in the

history of monetary history as a a money because that is not attached to any state so it's state free money that's never happened before so is i think seems to me that that's really the only path to it to a peaceful race that is to go with the only store of value the gold equivalent that's not attached to any flag warrants i grew the i grew the max a lot of i think gold can. play the same role in a way it's not quite as good in the sense that you don't know who has what but i think gold can be a neutral reserve asset and 6000 years of history supports that but i would agree with you and i i think part of the beauty of the 4th turning it if you can call it that because of the pain we're going to go through is large part of the beauty of it is all of these big organizations are just going to collapse the federal governments are going to collapse we don't need i mean who needs the stuff who nieces jumbo jets who needs these aircraft carriers who needs these big armies who needs these nuclear weapons i mean our grandkids are going to look at this and say

what were they thinking why do they have all that stuff it just doesn't make any sense but you know unfortunately you're going to have to see it collapsed and you know there might have to be some pitchforks you know and there's going to have to be a lot of still resistance because some of the elites and some of the powerful that are in control the government are going to fight like hell to prevent us from resetting it making it right again i think those of us who were standing there you know prepared you know to stand up for sound money and for the right principles for term limits for limited government for smaller governments you know there were going to be believed and the people who've been pushing this fall system that is it you know rich the elites they're going to be seen for the liars that they are they're going to be you know they're going to be in jail now you're right lars i should point out that you gave our e-mail address a while ago and he got so many requests you can't handle them all but you're going to try and get to them at some point in the future i think is the best they can hope for thanks for being on summer solutions lines thank you guys i really enjoy

your show and it's great to be with you right now it's going to death for this edition of kaiser report summer solutions with me max kaiser stacy ever special thanks to our guest lars apart from to catch us on twitter it's kaiser report until next time by y'all. seemed wrong. just don't hold. me to that you get to shape out just to become educated and indeed from an equal betrayal. when so many find themselves worlds apart we choose to look for common ground.

nationwide protests we boast a 12th day in the wake of the disputed election a large production is now taking place in the eastern city of beats with. this why do you warnings against meddling and european leaders agree tempo sanction on pumping accusations of. also this are russian opposition figure head on explain them only as an intensive care after falling sick during a flight to moscow prompting western media speculation from one place even though moscow has offered to send him out broad for treatment. i'm kind of this prime minister is accused of a cover up after suspending parliament at a time when the government isn't bad.