and all things must pass, however, we forgot to mention, as we've been celebrating, or commemorating the 50th anniversary of the nixon shock. when president richard nixon took the united states off the gold standard, and august, 15th 1971, put into effect, august 16th, 1971. what happened is it ended bretton woods, well, 50 years later, all things must pass. every single new money printing idea gets past no problem, whether it's a debt sailing going up, whether it's a new stimulus package, whether it's a, it's an infrastructure package, whether it's tarp, whether it's q, we spin, twist, all these various programs, mortgage back, security being put on the fed balance, see all things must pass because all things must pass 50 years ago was the name of the album released by george harrison. and i forgot to mention that while we were busy paying attention to the 50th anniversary of the gold standard ending, right,

when you make a good point there, the infrastructure bell, for example, in the us, it's not about infrastructure. it's about printing more money to keep the policies game of wall street alive. and we know this because by recent studies, 90 percent of all the money print thing for all these different programs never leaves. wall street. yeah. right. so it just stays on wall street. don't say here's an infrastructure bell, roads, tunnels, bridges, and they the 2000 page bell, they numerate all the things where this money is supposed to go. then they pass the bell, then they authorize the money to be printed and then they sent it for distribution to wall street and wall street. that's on it. me see that very clearly in the money velocity chart, which is all was going toward 0, that never goes anywhere just it's on wall street balance sheet and they use it to buy expensive property. and that happens. and that's been the story now for more than 20 years. we saw that for sure, with the rent moratorium situation. joe biden decided to basically violate the constitution because the supreme court ruled that he could not,

that this rent moratorium issued in, you know, ordered by the cdc. the centers for disease control was unconstitutional. he decided to extend it for a few months. but the thing is that taxpayers, we, we gave $40000000000.02 pay the rent for all these people who haven't paid rent, only $3000000000.00 of it under $4000000000.00 arrived at the destination. whatever happened to the other 43000000, right. like only 7 percent of it made it to the bank. so that tells you what the toll is for the oligarch, for the neil feudalism who, how much they have to take. so they qualify for every single, all things must pass every single measure that passes it. so if they take 97 percent of it, right, i mean it's so easy to really research this and see the numbers are starkly plain and visible to all the a wealth going up amongst the top oligarchs of america versus the money printing.

since carbon crisis, they're about the same. right? so, i mean, if you can't see that, you don't know, you can't, you don't, you're either dead or you're paid not to see it as so many people in america, particularly in the news media. their job depends. their salaries depend on abc, cbs, nbc, cnn, fox news. their salaries depend on being presented, the stark reality of the money that's going into the oligarchy. pockets from the money printing in d. c. and pretend that they don't see that that's what their job is, that their primary job. so they focus on things that are distractions, like social justice warriors, and who's wearing, what it, what cocktail party and everything. but the actual fact that the oligarchy in america is about draining every last, then from the economy. and when it's all said and done, they'll be gone. they'll be on there just off. they'll will never hear from them again. and what will be left is a dead zone, demilitarized zone of poppers and beggars and people who didn't buy bitcoin because

big winners will be out of there also, yes. will picking up on that whole point. so back to 971. when we went off the gold standard, it used to be the situation during the seventies and perhaps the early eighty's. whereby if the government or whenever it's all the debt in the system, $1.00 that would perhaps create 2 or $3.00 of g d p growth. and so that the, the theft concept, the fact that a felt money is theft, right? inflation is theft. the fact that that mindset has sat in through the entire economy down to the person who will take a cup of joe biden. right? right for free. they think. but that mindset said in, you can see it in the numbers that it now takes like $9.00 or $7.00 of debt to create $1.00 g d p growth. so that's all the, the, the, the, the corruption right there at the top right. the the says all or something like

that, they call it where they take all the, the, the money at the top. yeah. well, it's the best all the best. you had to say, i believe that then embezzlement, right? money is being embezzled. civil is kind of like, you know, flap or yeah. yeah. yeah they, they got the basil down real good. and then the g. d. p. did they do count as having resulted from all that decoration are going to bankers whose job it is to process manufacture and distribute all about that? right? yeah, so it's a year it's, the search will says you never try to appease a crocodile because they're likely to take off your arm. so, you know, you never supposed to appease the financial terrace on wall street for obvious reasons, but that's for the policy now for 25 years and the results are in and it's not good . and the other thing that stood out to me is like when we 1st started doing this show 1011 years ago, the richest man in the world was warren buffett and bill gates. they always went

back and forth. and remember, they went back and forth between the stock market ups and downs, between $40.00, and $60000000000.00. that was their net worth and they were the richest people in the world. now it's like jeff bezos and in our mosque are up there at 200000000000 . so just in this time that we've been making the show, just the enormity of the, the vacuum up, the, sucking up of all the wealth from the bottom through this inflation system as we enter the 50th. now we're into the 51st year of an all see system like the acceleration. how much faster the black hole, how much like or be sucked over into the black hole. debt is amazing. well, the key moment in my view was in the he 19 eighties under raul riggins 1st term there was a seminal event where he fired all the air traffic controllers. and that was the beginning of a serious, dismantling of organized labor. and so once they were able to stop labor from having any traction in the economy,

wages were then going to stay completely flat if but down a versus the money printing. so they knew and then that they could print an endless amount of money without causing inflation in the sense of a wage spiral. they, they're, they're perfectly happy to accept that price on place on the fine art, the sha chosen switzerland, yachts and things like that. which is, we see that happening and there's oligarchy developing. but they, once they were able to financially eliminate labor from getting any of the pi that and then the gloves are off and the oligarchs in america. now we have the present situation where jeff bezos, you know, is that a point where he will probably buy several countries in the next year or so? well, he did buy greenland, he and bill gates and jeff bezos have bought a huge play of the greenland. good mind some point, some those rare earth metals or something that the products the ingredients for electric batteries for electric vehicles. so yeah, but everybody has

a cup of joe biden. that's the thing. you mentioned the labor thing and you're seeing shortages of paper bags and mcdonalds, you're seeing shortages of pilots, airlines stuff. you're seeing, everybody has a cup of joe biden. everybody is like price insensitive, they don't care, they'll pay whatever it takes, but nobody, all those people with cuffs to joe biden with us and hands on appoint events, all the stimulus. they don't want to work. why should they work? because they have so much money, right? so you're having a supply crunch and people are being offered ridiculous deals to go join like to work at mcdonalds. some of them are offering, some of the franchises are offering things like full tuition to university for your kids and stuff like that. so they're having to offer extreme amounts of money. so we are in a different paradigm, whatever. however, this plays out, we don't know, it's an a new new pair, i think, for historical precedent. i would go back to the bar, sy,

in the court of guess it was louis the 16th 16th. and versailles was a place where, during the monarchy of france, where you had the nobleman, they're accessing all the wealth, but to when they went to the toilet, they simply went behind a curtain and relieved themselves on the floor. and then the pre, everyone pretended that they didn't see that right, or they put like stuff under their nose to keep a stance from ruining their beautiful conversations. and this is america. now you've got the oligarchs go to a bama birthday party in their jets. and everyone around them was pooping on the floor or dying from overdose, from opium diction. and they just have to put the blinders on and say, we don't see nothing. and we don't. we're just living in the versailles 2.0 and the court of louis the obama, that's it may have been louis the 51 of the louis could be the 15 louis louis louis and quickly, you know, while everybody mindset,

the inflation mindset is setting and people are willing to pay whatever it takes to get a cup of joe biden. that's important to realize when you look at this headline. oops, china's producer price index, which measures cost for goods of the factory gate jump 9 percent year on year and july wait faster than expected fuel and global inflation fears. so usually the producer is a lot of that price. now the consumer is willing to pay it, so we could see a real ratcheting up of inflation go well in a stomach, in a secular, and it's the beginning of an inflationary period that cannot be hit and will be back after this. don't go away. ah, you know where you in the a 6 day marathon of creativity and multi cultural festival and the biggest variety

is the competition for a few days. became a russian cultural capital. 28 categories. ahh from violence, piano to the parenting and data protection night years just throwing up a little over water. sure. you know if you could get some other kind of a 3 or 4 to be here. they 1st answer when reading or context. the delta games only take the very best of the best buy. i join me every thursday on the alex simon show, and i'll be speaking to guess in the world, the politic sport business. i'm show business. i'll see you then

me americans love buying homes. ah, this was a funny middle part of how our political leadership and our country, large understood the bargain. you get a whole and then you know, rebel right, as the things you don't revolt if you have a stake in the system. be really interesting to dial back and think about the longer, deeper history of what housings meant in the united states. not just that old question of the american dream, but the bigger question of who the dream has been for

the me welcome back to the kaiser report imax kaiser time now to go over to old blighty visit our friend ouster mccloud of gold money dot com ouster welcome back. thank you for having me max. all right, so we always talk about the gold market. there seem to be something actually important happening in the gold market. finally, something is really changing structurally that could have an impact on things that is the extinction of gold derivatives. you wrote a piece about it, what's going on? well, it's, it's all to do with this. net stable funding ratio, which basel 3 has been used? and there's been a lot of touring and praying, and this rarely ever since the regulations but finalized back in october, 2014. but now they are finally implemented as far as europe is concerned,

as far as the united states is concerned. and they will be implemented in the u. k . as of the 2nd of january next year. the reason is the 2nd is the 1st is a public holiday. the members of the l. b. m a are going to have to come in line and basically they will spend the time between now and the end of this year, adjusting their balance sheets to take account of the changes brought upon them by basel 3 of the point. but the net stable funding ratio is that it is really an attack on banks that rely on trading and derivatives as a major component of their profitability. the reason for this is that the derivative market. so we're looking at around about 7 times d pay. and over the counter derivatives along, i mean, these is

a huge market bank speculates they make market and things like credit for the full swaps. your foreign exchange transactions forwards and all the rest of it. and so go is actually a very small possible. i mean, we're looking at, i think the total otc universities around about $830.00 odd $1000000000.00 worth. so it's really a fall way to thing the golden silver, which is walks you and i normally talk about the way this works basically is that if you have a derivative, a net derivative, liability is a bank on your balance sheet, then you cannot use that liability to fund anything on your, on the assets side, your balance sheet. if on the other hand you have a net positive asset value on your derivative positions,

on the assets side of your balance sheet, you cannot use any of the available stable funding amongst your own. you're allowed, realty is to finance that position so you can see that any unbalanced position where one derivative doesn't cancel out another one completely and is tied to it. that's if you'd like, means that the bank ends up having its balance sheet bang, use very inefficiently. so the banks, treasury department turns round and says to the management, this is what we ought to do. and basically what it means is that we've got to cut back on our market making activities. we're going to cut back on unbalanced derivative possessions and so on. and so forth. so this is a very, very big change. and one of the things that i tried to bring out in the article is that the banking system really from big bang in the 19 aces,

has been evolving away from financing industry. if you'd like non financial credit expansion, instead they've been expanding credit in towards financial activities. i mean like they started buying stock brokers, they got involved in market making an equities. they've been doing investment banking activities and financing last off the balance sheets. and so, and so forth. so the expansion and bank credit has had this emphasis of moving away from non financial, into financial activities. all right, let me, let me jump in for a 2nd. i just set the table a little bit here. so the 1st of all, basil 3 is by who the b i s. yes it says it's set by committee underneath underneath the bank of international bank of international settlements. it's kind of like the central bank as the central bank of central banks. so basil 3,

as you point out, we usually talk about gold and silver, but this suggest is more of the global banking system as it relates to derivatives, which as it relates to leverage, right? so a simple way to say this is that they are trying to reduce the leverage in the system by eliminating the number of derivatives in the system. and many, many of these derivatives have as a reference price point, other derivatives, right? so they're stacked on top of each other and they create this, the layer of derivatives. and as you point out, the total number of derivatives and the global market is many times the global g, d, p. and the question is, you know, what good does all that do? i know in the u. k. i believe this would also fall under the category of re i papa cation. right? so this is rehab publication. so you are essentially lending something more than once. my question, my 1st question is that in the united states, re high publication is limited to something like 104 percent of the value of the

underlying security. my understanding is that in the u. k, it's almost infinite. there is no limit to the, not the amount of re publication you can do. is that still true? and will this basil 3 net stable funding ratio, guidance? change that i haven't looked at it from the point to be of a high publication. but certainly as far as basel 3 is concerned, it puts very strict limits on the funding of a bank's balance sheet. this is the key thing. what they're trying to do is to match, they, if you like the tenor of the liabilities with the tenor of the assets. so they don't want to get into a situation where a bank let us say, has a run on it, because it has got too much short term financing for the length of this liabilities . that is the underlying approach if you like the bank and it's of the basel committee to try and eliminate that risk. and they were given this instruction by

the g 20 following the lehman crisis. i mean, this is what we're going back to. let's talk about goals here for a 2nd because you're extrapolating and all this and saying this as a net positive impact on goals because we'll get into it. why, how does that impact gold? but it impacts code because what we're looking at is basel 3 regulations will reduce banks, involvements in bell derivatives, forwards, swaps and also on the listed the regulated derivatives on futures exchanges such as comics. now, the question then is what the clients do? what the banks customers do? when the banks turn around and say, sorry, we could no longer provide you with an on allocated gold account. the customers will probably turn round and in some cases say, well, it's fun. molly's lost it, but in these rather inflation rates times they're likely to turn round and want to

replace that exposure with another means of hedging. see if you'd like fit currency risk and about the only way they can do this is either to speculation of way in what will be in a liquid market on, on that come x, because banks are withdrawn from is in the main. alternatively, they will seek some sort of physical go to replace the allocated gold, which they regarded. if you'd like on their banks advice as being, don't worry, it's just the same as having a position in real gold. i mean, you and i know it's not that we've discussed this so many times, but back to semester is the banks are pushed over to their customers when they run gold accounts. and essentially the whole of a, l, b, m, a banking system is short of an allocated go to that customers. so you know, the point is what is going to replace that is obviously going to be

a significant extent build itself. isn't the, the equivalent of, of, for the gold speculators out there, a giant margin call. yeah, it's a don't margin call in effect on the system. all right, so the only way to do that call is to pay for more actual gold. yeah, absolutely. and you know where to go? good, come from. i mean we have, they'll be, i'm a keeps on telling. it's $9600.00 tons, whatever the figure is, the gold in london. but actually when you do dig down into the figures, most of that is bank of england's custodial go held for the central banks. and you've only got atf holdings. you've also got privately held girl. now we don't know how much acid, right? we know that why is somewhat constrained, so we're going to have something happening in the price discovery, right?

so if you're eliminating all of those derivatives, which we have talked about before, are used to keep the gold price suppressed. and that's been documented. and no one really debates that anymore. and now you've got this basil 3 or guideline which is essentially coughing up more goal to stay current than your leverage account. so is this going to take the, you know, take the blocks off the wheels and we're going to start to see some price. we're going in gold after 10 years because as over 10 years it's been down 3 percent in dollar terms. are we going to see some action of all? i'll start to get all the things being equal. the answer is yes. now the reason i say other things being equal is that we are living in the time as they're all aware of this program. while method, monetary inflation, that is the background to this and in a sense it's coming at the worst possible time for the banks trying to get out there. sure. positions. right, so, i mean, eventually there had to have been a trigger. you now, you mentioned a lehman crisis and the 2008 crisis. it was,

i believe, as i recall, there was a fund in europe that had trouble meeting its pe requirements that set off a cascade or a global you know, contagion that gave us that crisis. could this be the spark that finally generates some, some buyers in gold and we'll get a price movement. i mean, or only take one event. could this be the event that triggers it could well be? and i would say that, i mean, recent events. let's near the last weekend when they go, prices slammed on a sunday sunday night all the time in europe shows that, you know, if you like, the establishment in the gold market is extremely nervous about the current position. they cannot close down their position. this is the problem. they are short. the way i calculated on comics, looking at the bank participation report. i mean national positions around about

$25000000000.00 net on comix. now how do you because that done. that is the question. all right, well we're going to cut her out there. we'll pick it up on the next episode. that's going to do it for this additional the kaiser report with may max kaiser and stacy ever want to think, i guess 1000 mccloud of gold money dot com. and to like sign via the me, ah, the news you know, where you go to a 6 day marathon of creativity, a multi cultural festival. and the biggest variety is the competition for

a few days. palm became a russian cultural capital. 28 categories. ahh . from the violinist piano, to the artist, parenting, and data protection. not yours just throwing up over the water. sure. you said you had a good time. is there a way for them to be here? they 1st as a, when read an or context, the delta gains only take the very best of the best buy i americans love buying homes. ah,

this was a funded mental part of how our political leadership and our country at large understood the bargain. you get a whole and then you will rebel, right? that's the things you don't revolt if you have a stake in the system. be really interesting to dial back and think about a longer, deeper history of what housings meant in the united states. not just that old question of the american dream, but the bigger question of who the dream has been for long, long when i would show the wrong. when all just don't the rules. yes to shape out. the thing becomes the after an engagement equal trail. when so many find themselves world far as

we choose to look for common ground the and an expected upside of the pandemic kenya's experiencing. and elephant baby boom. 250. why this? can you have so many cars? and how has the pandemic impacted people's lives? is andree will have fairly big long in any fact. he end up killing himself. i don't live on a lease and then you go buy a car. well, and i will make a little a little was a, get him in the digital media group and they get, they say, look it when the mean thing in it will,

because i know that of the when the members who did the they didn't even notice whether they call to do, there's no local, but i know the company just wasn't going whatever. give me the ah,

ah, the headlines this hour here, one octave scales and gulf cobbled apple, thousands of afghans tried to flee the country, disturbing images. so people desperately trying to cling to an airplane as it attempted to take off. and thomas, we understand later funding for that that mission and ghana stand was never supposed to been nation building. it was never supposed to be crated. the unified centralized democracy defined the president biden defense is troop withdrawal blaming the unfolding. cale enough gun done on its leaders for bleeding and the gun army are not fighting both of the new gun reality make. the leaders are very anxious over a potentially enormous foe of refugees on route to europe.