a new gold rush is underway in ghana thousands of ill equipped workers are flocking to the gold fields hoping to strike it rich here is a good. day oh. children are torn between gold. from me was very poor i thought i was doing my best to get back to school which side will have the strongest appeal. 5 i'm max kaiser this is the kaiser report let's discuss what

happens when. on stoppable force tries to move into a movable object this sounds interesting. you're talking about the central banks trying to fight the tie the currents of an economic cycle of a business cycle so for this analogy this metaphor here we're going to look at what rip currents do max and i grew up on the east coast of america spent many a summer out on the beach on long island and one thing you know is that currents occur and what to do with the rip currents well according to usa today on an article about deadly rip currents they say rip currents occur in bodies of water with breaking waves they are channels of water that flow at a faster pace than the surrounding area swimmers who are caught in rip currents can get sucked away at speeds of up to 8 feet per 2nd far too fast for many swimmers to

make it safely back to shore and what to the swimmers who don't make it back to shore do they always try that they panic and then they they see themselves being pushed away from the shore and they panic and try harder and harder to get to shore which is the exact thing you should not do you should just relax go with the flow and let it take you and then swim away slowly exactly right panic into the problem panic into the problem so this is this is the end leading into this central bank panic i believe yes so since 2008 we've seen central banks panic and everything they do seems to just fight the tide fight the flow like back in 2000. an inmate they thought the bankruptcy of many of these banks that's the business cycle if you lend recklessly and your debtors can't pay the creditor goes out of business that's what happens you both go out of business well they fought that and and why people

who fight the current die in this case of a rip current why why they die is because of exhaustion and this is what we see in our economy is exhaustion nonstop deflation that keeps on happening because the economy is exhausted because of all the mis allocation of capital that has happened constantly because the fed and other central banks are so determined to fight the current of the bad debts of just basic business cycle so we have situations like bank of england says banks well nice 6 months to prepare to have fun staying poor and this of course is a bit coin or tweeting this about a c. and b. c headline which reads bank of england says banks will need 6 months to prepare for negative rates right so what's been going on for the past 20 years what's the force of nature that banks have tried to stop from occurring and that is a bond market selloff right so economies like nature like life is

cyclical and cyclical a speaking sometimes bonds go up sometimes bonds go down what are called the bond vigilantes back 2025 years ago and they would be a check as part of the checks and balances that would stop governments from spending too much money but what governments figured out a lot of the central banks is that if the government keeps printing money in the central bank keeps buying in fact monetizing debt then they don't have to worry about the bond vigilantes and they never have to worry about bond prices going down ever again in fact bond prices in the u.k. hit a 300 year high recently and bond prices in america had an all time 243 year high so when you. like try to stop the cycles of nature or building or to stop the flow eventually you have a catastrophic collapse and that's what it were we're anticipating in the very near term because ultimately you can't stop the sun from rising you can't stop bonds

from seeking they're there are normalized rates of return but they're going to try and negative interest rates is just the latest tool to stop the bond market from seeking its actual all equal librium price and that means gutting the value of the paper money even more and this is why the commodity market is now entering a secular bull market this is why bitcoins near an all time high and this is why gold has been better than usual but that's another problem they've had to shoot massive down days in gold as well because it's about perception management what the lifeguards are that the federal reserve is the central banks are what they're supposed to be the ones that rescue you when you get to trouble they're supposed to tell you don't fight the current just go with the flow instead they're saying everything is fine don't worry and what they should be telling you is is your you know this is

a disaster situation let's just let it rinse out let it just go with the flow they tell you to do the exact opposite of what you should do and that's what the perception management of interest rates of gold and silver well gold prices in particular gold prices and interest rates should be telling you those are the warning signs like you know when you go to jones beach and new york on long island there will be signs up danger rip currents likely to happen today because of certain conditions so that's what the fed should be telling you they should be able to tell this with the velocity of money with them the quantity of money all these sort of things tell them that a certain day certain time certain period certain years as they are in like this the past decade that there are certain rip tide rip current situation they're dangerous such. and what we learned from the game stop wall street bets scandal is that the is such a thing called naked short selling you know there's a lot of denial of dates of the existence of naked short selling or the existence of counterfeit sell orders to jack or force the price of something down in the case

of gold we see it categorically unequivocally happening all the time dealers print counterfeit sell orders to bang the price down because they want to help banks when they go into negative interest rates and to try to manage this bond market from having any real price discovery because i would mean all the banks in the united kingdom in america would have to finally admit that they are insolvent but you mention denial but the denial doesn't have the current it's a rip tide is that type flu's in to the river right denial it's not just a river in egypt. they want to say ok now comparing this with the central banks most of the central banks are doing what they're doing wrong and causing this exhaustion in the economy you see that in the exhaustion of the money

velocity it's like totally exhausted right this is this is a swimmer who has fought the tide for and the current for too long what a study in 2014 by the university of new south wales says that the rapid expelling of energy which can be caused by panicking or swimming to the shore often leads to drowning quote energy should be conserved wherever possible rob brander again is that energy and the economy energy is money and the money is the energy so you're expending you're throwing like spankie right you're throwing all this money at the economy everybody's seen that jeff are a little rascals a little rascals think you're throwing money and that's your energy and the lifeblood of an economy. you're just throwing it against the current that is the economy in 2008 where this all started that you know what they were fighting was the inevitability of all these bad debts going bust right they didn't want to

confront that they thought it right there was something called the gold standard and that was a way to keep order in the global economy and occasionally countries would get way overextended and then if they have to rebalance visa v the gold standard and we went off the gold standard of benefit of money standard that was backed by gold until $971.00 then it became all feet of money back by other feet of money and that's when central banks went absolutely crazy and started to believe that they could control the economy by printing money and buying back their own debt now 40 years later we're at the breaking point is when a velocity shows that the economy has died in 2008 we legalized bank fraud under eric holder and that has been a huge problem and a 2021 everything comes back to restore sanity but that would being under fee out money collapse which is not terrible if you're on bitcoin everybody who

drowns because of a rip current they die because of exhaustion right because they're swimming trying to get to the shore because your panics and you make bad decisions when you're panics like that so despite this is what the central banks keep on doing they panic because they don't want because in your mind all you're thinking is you're going to be taken way out into the middle of the sea and drown out in the middle of the sea with all the sharks and stuff like that but all it's going to be is like that's what they don't want to see that's what the not used to seeing is any g.d.p. decline because this is what our debt saturated economy can't take so we're in the situation where they can keep fighting this tide this current and now they've decided to just drown some of them let some of them drown and say and rescue a certain class of people schumer. democrats today 2 percent plan to cancel student debt obviously all these that are going to go boom right they're going to disappear they're all going to drown all these debts are gone right because they're not payable the debts i champion repaid won't be repaid that's the truth but here

they've decided you know there's a very small group of americans who go to university most of the debts are held by 10 percent of those all the student debt holders you know it's people with advanced degrees who have advanced incomes and they're deciding that they're going to rescue those people because perhaps they think they're the strongest swimmers in this economy and will be best to survive for this economy post kovac or something but here is them making just. a targeted decision to rescue certain people obviously it's because the federal government took on all these debts off the off the private banks balance sheet back in 2008 it was all shifted to to the federal government because of the whole debt crisis that they fought the current back then and sort of letting those debts go letting the banks suffer the losses for the bad debts they wrote well here is that right this is another bank bailout because the banks will say wait a minute we rely on those student debts to make our 3rd quarter numbers and the

government would say how much that would you like we can write that check right now oh is it $1.00 trillion dollars no problem because we are beholden to you the bankers thank you eric holder in fact the taxpayer own something like a trillion of that $1.00 trillion the other 6 trillion point 6 trillion is owned by private banks but that's what the point to make here is the huge cost. is going to be borne by taxpayers so these all these administrators of all these overpriced universities selling junk degrees they're like civil servants being paid hundreds of thousands of dollars some of the these people are on 500000 a $1000000.00 a year and they're just civil servants essentially because they're being paid by the taxpayer for these bogus degrees that don't even help anybody get anything beyond a job at starbucks rightest on capitalism it's the court of louis the 15th and whoever curries favor with the king this case they are regaling 1st and we'll get

the royal bail out and those who are working real jobs to create real g.d.p. and a real economy are going to be told to eat it their sorry power new stock well this is fighting the current of bad ideas that that are the misallocated capital the misallocated energy of the economy that kept you know it started out small * alan greenspan started back in the eighty's he was trying to worry you know who is would concern trolling and don't get too excited about things but then he you know he felt bad for his friends they came in to the rescue with the greenspan put and it started with the greenspan put and now it's you know. it's you should have just gone with the current right you shouldn't eat your spear you are genuinely way out to sea in a disaster situation because of these little changes that became bigger changes fighting the tide of just normal what you know for thousands of years we know our

normal business cycles normal economic cycles they should have just gone with that this set up of this university system what are they going to do they're writing off this debt and it still survives i think they let this focus system survive remember an american economy don't still small you know petty theft still big. i'm going to take a break and when we come back lots more coming your way. it's .

oh it's in the woods and there could be. good at. least and you're back in a can matter. and a bad national. shall not. kill some miles on them the little hazy. and.

let me try not to give us the impetus that all of you in the mostly you know me get a feel of a good. solid and know it and when i might. see my name a few that. the world is driven by dreamers shaped by one person those great. no dares thinks. we dare to ask.

welcome back to the kaiser report imax keyser time now to return to our conversation with mike maloney of gold silver dot com mike welcome back thanks for having me max it's great to be here great to see you and stacy again to you well let's talk all in solvers so we've got everything people feel by silver and gold for happening with the money markets and terms of the expansion of am money supply is increasing dramatically last year in the u.s. as a lock downs close the economy so what are these tell us about the numbers here what's going on i look at the charts i see them to looks like the hockey stick explosion era monetary historian what's going on well i think we're approaching any game here you know anybody that looks at this knows that it's crazy it this is unsustainable . the currency creation has exceeded my wildest nightmares now it's

you know i wrote about this in my book back and it was released in 2008 just before the crash just before t.v. and i said this was going to happen but this is far far beyond what i was expecting and it all comes back to haunt you somehow there's no such thing in economics where you don't have some sort of consequence to everything you do for every action there is a an equal and opposite reaction we just don't know in economics where that reaction is going to appear you know when when. really it was when the nasdaq crash down response or rates down trying to boost up the stock market what he did accidentally was create the world's biggest real estate and we're still suffering the consequences of that ben bernanke. and william powell. chairman bernanke and german pow. and yeah. cause the greatest wealth transfer

in history from the average person to the richest people are the land whenever they create all of this new currency that currency finds as you know they did create dollars and then they buy something with them to get them into circulation that's the fed's balance sheet so they're getting currency into existence buying stuff and that usually ends up in the stock market you can see this tremendous correlation with the increase in the currency supply and the where the stock market goes so that wealth is diluting the currency supply transferring purchasing power from the average person to bill gates and jeff bezos and it's just it's it's immoral i mean it's immoral in the 1st place to steal and that's what the federal reserve and all other central banks do whenever they create currency they're counterfeiting something that had no cost or effort into creating it into existence and buying something with it it's immoral and really should be illegal as it is for any

private citizen some of the thing was going on in iceland back in 2008 or so banks were caught counterfeiting money they were buying assets when that finally the law caught up to them and they were all severely punished and going to jail and the country suffered horribly and they had to rebuild from scratch but the morally they have a sense that something was being done to punish the criminals fair and united states and elsewhere way same to applaud the criminals and gave them bonuses now let's talk about the u.s. dollar because it turns 50 in august how does it look as it is it middle aged or is it all the ages about to go out is going to make it to its 51st birthday mike 50 years since it became nothing but it's the currency backed by future taxation. this is the longest lived version of the u.s. dollar you know there have been. many monetary system. the gold

standard started in around $863.00 i believe it was in germany and then by the year 1900 pretty much every country on earth was was on it and then. what we saw was for the u.s. . there was the classical gold standard that was around 30 years and then 27 years in the gold the gold exchange standard between the wars and then there was the reading would system that lasted until 1971 and now on the u.s. global dollar standard which is the worst design of all the systems it's an accident it was the deeds wrong position when bretton woods fell apart simply because bretton woods had flooded all the world's central banks with u.s. dollars and this one has been developing stress cracks for many years in 2009 and started getting present ations on the debts of the global dollar standard. it used

to mean that once every 2 or 3 years there would be a nail in the coffin now they come up on a weekly basis sometimes on a daily basis you're just seeing these things that are that are not good for the dollar just keep on happening. i do think that you know with it won't be that many years now within the next 3 or 4 years i have no idea maybe it'll take longer than that but there will come a day where the u.s. dollar loses its predominance and we have a new global. monetary standard and they're talking about this global financial resets maybe that's it because you know before this one lasted close to 15 years it was every 30 to 40 years the world had monetary sets it's just a cycle any manmade system can not because it cannot account for all of the forces in the free market now going to fall. it worked for years and you were the 1st i

think to talk about deflation 1st then inflation and. where are we in that cycle because the same so mean that the government prepared to now print stimulus in the chileans of dollars and if we thought the last ferris were crazy or about to go hyper crazy is there then now the transition from the deflation to inflation they even talking about now for a number of years is this the inflection point coming now well i do think that we're going to see a period where we see a contraction of the credit based operation of the currency that the banks creates where the public gets scared the loss of the slows when the public gets scared the number of times the new unit of currency is involved in a transaction is slowed during the year you know a euro or yan that were pound or dollar should change hands a certain number of times when that slows it's the same effect as contract currencies. so that should slow and in

a crisis banks get scared and they stop rolling over all of the loans and there's a lot of rolling credit lines out there and when they stop rolling over loans there's basically a car and they be loan is not renewed when the debt means that they're going to credit needs the debt on the books they annihilate each other and that currency vanished. so a debt based currency system. the one saying that the world central banks can't control his velocity with a crash and a crisis joe aussie should slow beyond the. counterbalancing the fact. that the russians say counterbalancing because it actually puts things more out of balance the effect that the world's central banks when they react with the massive currency creation that very i believe you're right we haven't seen anything yet this next round when the crisis hits is going to be huge and so we should have this

short term dip and we should see a whole lot of bankruptcies and then. it's off to the races that i do believe it can go into hyper inflation the only ways to protect yourself are with crypto currencies and precious metals and i know those are the real safe havens city down and this is setting the central bank the fed and others to consider printing and distributing directly to consumers and bypassing the banks because they're tired of the banks hoarding all this capital they're tired of the low velocity they say the bank says they fly in the ointment as really the problem they could create a digital central bank digital currency is quite the buzzword this year at davos and around the world the fed creates fed coin that they guarantee your deposits they swap out your dollars for a fed coin one for one and they let the banks die in other words are the banks

under the bus this is. a heterodox idea but it's gaining some currency out there and your thoughts i think that's entirely possible because you know the banks and wall street these are all cannibalistic i mean they're sharks and they're camels though they'll eat their young men but with their competitors it doesn't matter and you have to remember the largest banks in the world own the stock in the federal reserve which is not part of the government i mean it's government sanctioned but it's not part of the government it's a corporation that issued stark and the largest banks in the world own that so if they do with the banks out of business they haven't really put the banks that own the federal reserve out of business they just created in morocco that point and yes they do want to control the lost city this is why in the orient for them and

getting currency into the hands of people that are poor sri currency which is then by the way into the. as of the poor they are the 1st ones to spend it and spend it on sayings like groceries and stuff that's at the retail level so at that point you gotta watch out for inflation so that will be one of the their answers is to get currency into the hands of the poor in the middle class so that it gets spent right away into the retail system because they are deathly afraid and. if the inflation occurs then there's the west taxes coming in to pay the principal and interest on all of the treasury bonds that were purchased by the ned to create the currency that's it's a silly system the whole thing is nuts while we extensively cover the crisis in 2008 aliant both protected that the solution at that time west by bailing out the creditors a sound that debtors and just expanding their credit lines so they could do things

x. aim thing but 10 times 20 times more over what create another crisis within 10 or 12 years and here we are 2021 it's at is i what we saying there is a repeat especially of the 2008 crisis but much bigger you just laid out the connection that they have this was created the crisis they were going into was created back in 2008 by this the central banks reactions with interest rates and currency creation and i see it as one crisis sort of like a hurricane with an eye in the middle of the hurricane we've been in that eye for you know over a decade now it's amazing how long it's lasted but when you consider you know this is all an illusion it's all smoke and mirrors based currency creation it isn't the real economy since the financial economy growing at the expense of everybody else and the federal reserve and the rest of the world central banks may be where you

are right my pallone of gold silver dot com thanks ray i kaiser report thank you max and that's going to do it for this edition of guys a report. until next time. so what we've got to do is identify the threats that we have it's crazy. let it be an arms race. dramatic probably the only.

headline in dozens of european parliament members call on foreign policy chief to resign he was friendly with. just a minute. also this hour the european medicines agency stuffed reviewing a request to approve the vaccine bringing the job a step closer to widespread adoption in the e.u. . for how to cross from schooling for protecting children as the country's top court hears the case of a. 25.