and we've been walking in pregnancy control, it's probably been going forward. i read. so i'm very much going to be that we can continue working with. these are very much the ones are trying to teach independence. and it's very crucial, particularly at this moment. that's one of these issues stand by. there was a rough on this as coverage of the unraveling situation. i've got to start, we'd been following it, please see, and we'll continue to do so. this is our team's national life from of the the me the the, the

the i am kaiser this is the kaiser report. no, you're not imagining it. the purchasing power of your money is going down now. oh bu who? stacy. oh sorry. i'm just having my cup of joe biden, this morning. you say this, you know what the cup of joe biden is about, the coffee prices we're seeing, and those are sky rocketing things could get harry right here on the set of cars report. if we don't get the coffee, while the price of a cup of coffee keeps rising and nobody seems to care, remember this is something we've been talking about over the past few months as inflation starts to war. but people balances and their bank accounts are at all

time highs in the household sector in america. so the inflation mindset set in long ago a few months ago as people were getting used to these enhanced unemployment benefits . the non stop stimulus checks arriving in their bank account. and now those child credit tax credits are also arriving and bank account. so everybody feels flush and they don't care how much prices are going up. they're willing to pay, they're not negotiating, they're not bargaining. right? so this, we already have universal people are just getting the steamy checks and they won't stop coming. they are going to allow people to live rent free. they're going to pay them more than they will get minimum wage. and so yeah, they don't care where the price of coffee is going because it's not their money. it's just a pass through mechanism to bail out bankers. and the amazing thing is that simultaneously we're saying interest rates go negative, surrendering into a period of the global economy, where banks are charging customers and savers to have money at their institution.

and then that money that they take is going to be sent to the same customers to buy a free cup of coffee. and this will be looping around now for a while, until such time as true, catastrophic resulting in sue's, which would be either on the environmental front where we're seeing the bile fear of the ability to support human life is collapsing. or we'll see a bond collapse, throw an immediate screeching halt to the global economy, or we're going to have some kind of war world war. well, everybody gets a cup of joe biden, in today's america, where nobody has to work. they work from home, right? and everybody's having the free money, their, their mindset about inflation. it has altered, it's changed, they're all ready and willing and able to spend. 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 a 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 parties 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, bridge is, and they the 2000 page bill, 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 of it under 4000000000 arrived at the destination, whatever. but the other 43000000, right? like only 7 percent of it made it to the one. 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 pretending 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 seventy's 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 theft concept, the fact that a few out 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 civil 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 embezzle. civil. it's kind of like flap or does yeah, yeah. the other, they've got the basil down real good. and then the g d p that they do count as having resulted from all that that creation are going to bankers whose job it is to process manufacturer and distribute all about that. right? yeah, so it's a year, it's a search 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 terrorist on wall street for obvious reasons, but that's been the policy now for 25 years and the results are in and it's not good. 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. i 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 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 inflationary system. as we enter the 50th, now we're into the 51st year of and all the system like the acceleration, how much faster the black hole, how much like would be sucked over into the black hole? debt is amazing. well the, the key moment in my view was in the, the 1980s under route reagans. first 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, asked the price inflation on the fine ard, 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 pie that and then the gloves were off and the oligarchs in america. now we have the present situation where jeff base us now is that a point where he will probably by several countries in the next year or so? well, he did by greenland, he and bill gates and jeff bezos have bought a huge play of the greenland. good mines, some point, some those rare earth metals or something. 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 mcdonald, 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 as, and hands on appointments, 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 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 in a new new pair, i think for historical precedent. i would go back to our sy, the court of, i guess it was louis the 16th 16th and versailles with a place for during the monarchy of france,

where you had the novel men there accessing all the wealth, but to when they went to the toilet, they simply went behind the 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 now go to obama's birthday party in their jets. and everyone around them was pooping on the floor or dying from overdose from opium addiction. and they just have to put the blinders on and say, we don't see nothing. we don't know what we're just living in the versailles to point out in the court of louis the obama, that's it may have been louis the 51 of the louis could be the 15 louis saint louis louis. and quickly, you know, while everybody mindset, the inflation mindset a 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 is producer price index,

which measures costs for goods of the factory gate jump 9 percent year on year and july away, 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 systemic and 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, 100 make. no, you know board is blind. number please. the new virus has emerged. we don't have a 30. we go to the back seen the whole world leads to take action and be ready. not a joke. people are judge governors crisis.

we can do better, we should be better. everyone is contributing each in their own way. but we also know that this crisis will not go on forever. the challenge is paid for the response has been massive. so many good people are helping us. it makes us feel very proud that we need together. okay. yeah, good. i got a sick day marathon of creativity, a multi cultural festival. and the biggest variety is that competition for a few days became a russian cultural capital. 28 categories. ahh . from filing a piano to the parenting and data protection,

not use just throwing up over the water. i mean, sure, you know if you could get some of us, we are hoping to be here. they filter when read an or content. the delta games only take the very best of the best. buy. i the me welcome back to the kaiser report imax kaiser time now to go over to old blighty visit our friend, our 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 in jews. 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 basil 3 of the point. but the net stable funding ratio is that it is really an attack on banks that rely on trading in 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 g, d, p. and over the counter derivatives along. i mean these is a huge market bank, speculate 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 acid side of your balance sheet, you cannot use any of the available stable funding amongst your on your 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 been used very inefficiently. so the bank 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 positions 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 1980s 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

that, but you know, you start 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. 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 set 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 there stacked on top of each other and they create this 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 into the category of re i papa cation. right? so this is rehab propagation. 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 brief 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 law offices 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'd like the bank and end of the 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 goal here for a 2nd because you're extrapolating and all this and saying that as a net positive impact on gold because we'll get into it. why, how does that impact gold?

but it impacts code because what we're looking at is bottom 3 regulations will reduce banks, involvements in bo derivatives forwards, swaps and also on the listed dave, 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, an allocated gold account. the customers will probably turn round and in some cases say, oh, 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. say, if you like fit currency risk and about the only way they can do this is either to speculate in a way and what will be in a liquid market on, on that come x because banks withdrawn from is in the main tentatively,

they will seek some sort of physical go to replace, they 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 semester is the banks of 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 k to go to the customers. so, you know, the point is what is going to replace that. it is obviously going to be a significant extent gold itself. now that's the equivalent of, of, for the gold speculators out there, a giant margin call. it's a don't margin call in effect on the system. all right?

so the only way to 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 pounds or 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 girl held for all the central banks. and you've also 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 massive monetary inflation, that is the background to this and in a sense is 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 york chose that. you know, if you like, the establishment in the gold market is extremely nervous about the current position. they cannot close down that 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 guys are in stacey everett want to think, i guess 1000 mccloud of gold money dot com. and to like sign via the

me i when i would show the wrong when old free just don't. i mean you yes. to fill out the thing because the attitude and engagement equals the trail. when so many find themselves worlds apart and we choose to look for common ground, the

ah, one of the desperate afghans who clung to us military pain, taken off from cobbled phil. he'll deal on his phone, his paint is unknown, but others went on to plunge to baton about briefs the meat off just how abrupt promising that it be. no refund on the afghans who walks before and all of these are forgiven. lockson's reveals that telephone commander gave a victory experience from cobbles, presidential policy, but is a detainee one kind of bank. i welcome to the news on here on.