tv [untitled] November 11, 2010 7:30am-8:00am EST
and this is the guys report i'm max keiser this is stacey however what about the golden nutcrackers tell the people tell the people well max that's your version of this headline from the financial times first to get a look at the pictures of the golden nutcrackers and why are these needed headline reads zoellick seeks gold standard debate world bank chief heirs disquiet with the system of course max we've been warning about this for quite a while here that the gold standard would be imposed upon the world trading system and sure enough robert zoellick on the eve of the g. twenty meeting and seoul says that a cooperative money system including the dollar the yen the pound and and they remain. were needed and that quote consider employing gold as an international reference point of market expectations about inflation deflation and future
currency values although textbooks may view gold as the old money markets are using gold as an alternative monetary asset today well it's an untold love it when i was over in moscow a few months ago i said you've got to use gold what do you do a lot over the world conference of the big gold cloying want to stay in the gold going well actually max if you look at a headline from december of two thousand and nine this was foretold to the world population they would have known about this had they not only watched r t and seen the kaiser report but had they looked at the headlines from last year medvedev sees single currency dream in g eight coin gift so this is at the two thousand and nine g eight meeting in lucky italy and russian president dmitri medvedev issued a well gave as a gift to the other g eight leaders a gold coin on which was written united future world currency and he said in all likelihood something. similar could appear and it could be held in your hand and
used as a means of payment this is the international currency let's have more my portraits on my gold coin but the fact is this is been imposed anyway this is the number the gold price has been rising and rising and rising for the last ten years since gordon brown sold half of the u.k.'s gold supply at the bottom in terms of the price for the last five thousand years and he and so it has been a currency for the last ten years. people chose to ignore it and they chose to deny it because the fact is what it was signalling was why robert zoellick is now conceding defeat and that is we got it we got a photo of the golden nutcracker yeah there it is the golden note cracker from bob zoellick a new world order shill of course but the new world order of the i.m.f. of the bob zoellick so the world of course realize that eventually all paper currencies go to paper currency heaven and that all the goold will be the proper
currency to back the true reform that barack obama missed out on when he heard a siren songs of the geithner's in the summers of the world that went down the path of more fractional reserve bailouts and other nonsensical non-performing idiocies well in fact gold is honest money so this is part of the problem that even alan greenspan last weekend when he went to jekyll island and met with all these other bankers he's conceded that the problem with the global financial system at the moment was there was just too much fraud and this is the problem that the u.s. dollar has become a unit of fraud and you see that in the headline the age of the dollar is drawing to a close and they're saying that america squandered its advantage on credit fueled spending with the developing world expected to represent more than half of the global economy within five years dollar head to moni no longer makes any sense not to know
the dollar of course is on the way out of the way that they're going to try to extricate themselves from having to pay off their debts in america is to roll those debts over to a new global currency they're going to reach a cure of all the bad debts in the currency denomination of the new world currency which will be partially backed by gold they'll roll all those forward and they'll think that they'll escape the sort of hyper inflationary depress. vastly and they are wrong but this is a way to devalue the dollar because i mean if you look at the chart the long term chart of the dollar you see it's it or it has been crashing and how do you get it to crash any further it's crashed fifty percent during reagan it rose during clinton it crashed again from for bush but now it's at the bottom of the barrel it's hard to get any lower unless they introduce a global gold standard well they're going to introduce a new global currency a new global world bank the world bank of the i.m.f.
will become the new global central bank to work with the bank of international settlements and then the work with all the various central banks the fed the bank of the the bank of japan accent or so there's another layer of bureaucracy of bob zoellick is a bureaucracy monkey he will be part of the new bureaucracy and paul krugman and and nouriel roubini and other academics will be on the board of directors and these are all paper bugs but they can't escape the fact that without a gold component there is no hope and medvedev of course in the fabulous mosque gallagher stands as. the truth well the other reason why this is being announced of course is that america i guess everybody's been noticing since two thousand and eight that essentially the u.s. empire is over. and we see this like who we see this in the headline
america's economic suez so this is the moment when the u.s. introduced quantitative easing without coordinating with any other nation south africa germany china brazil all came out immediately and condemned the u.s. for this movement they are standing alone young brazil what a shocker they really because brazil's the i.m.f. quite a number of years ago now to go stuff it you don't want to be debt slaves to the i.m.f. so now they're running the show well here's a quote from brazil's finance minister guido mon take it well everybody wants the us economy to recover it does no good at all to just throw dollars from a helicopter nobody wants the u.s. dollar economy to recover because all they do is use their money to invade countries and commit genocide and ecological all of cars with man made global warming that's right and who is the man making the global warming you know the states have the finances the dollars the rest the world those are what you want to
do you know where the dollar well the other thing that you know americans themselves are patting themselves on the back thinking oh we voted in the fiscal conservatives who are going to save the dollar and save america restore prosperity they voted those republican could probably just say well this takes me to this next video which is ron paul did libertarians win so he was on fox news and he was asked is is this a good sign that the libertarians the fiscal conservatives are in power but what is being offered is a big question and you know i was excited about 1980's election in one thousand nine hundred ninety four and a year two thousand thinking that maybe conservative libertarian types in the republican party would make a significant change but it never happened but one thing that really disappointed me in the campaign this campaign is they weren't really involved in personal live. the patriot act searches without warrants torture preventive war and all the things
going on they never talk about foreign policy and they call themselves fiscal conservatives in there spend a trillion dollars a year on manage and i am far i mean you're not going to solve your problem that way you can tinker around with cutting food stamps for the poor and think you're going to solve this problem we have to change our attitude that's right ron paul smart guy he those when he's talking about these totally against this the new crop of prophet just g.o.p. freshman you know he's right so nobody will talk about that ever expanding cost of america's wars and they talk about little things like food stamps but the rest of the world is saying this that the dollar finances america's wars were fair and the only way we can get america to stop killing people for blocks and for thrills is to be neuter due to crack the nuts of the u.s. dollar what's our golden not cracker speaking of neuter here's the headline neuter
iran senator makes the case for u.s. strikes which senator so this is senator lindsey graham from south carolina lindsey graham crackers more like you guys completely have crocker that's gone crackers lindsey graham please continue and so here we've established as ron paul says that america spends trillions of dollars trillions not little billions and millions on their own population but trillions bombing and destroying other people he spoke to these people and he said that we need to attack the islamic republic of iran not to just neutralize their nuclear program but to sink their neatly destroy their air force and deliver a decisive blow to the revolutionary guard in other words neuter that regime which by the way iran just announced that they converted fifteen percent of their reserves and to gold so they've buy tons and tons of gold in the last year and it is israel behind this crazy move by lindsey graham i mean i mean well you want to speculate. he is very close to the apac lobby i mean they're pushing their luck
over there they pack i mean you know they've been for decades now they've been using the us military to solve their local skirmishes but it doesn't think on a bridge too far here now i mean there's real you know use of the culture you wasn't even them before nine hundred forty eight there's just nothing now that they've been pushing their luck i think that there's a dollar so much that they can do before the rest of the world says to the shuttle what they say to the dollar and you know so we talk shows so then lindsey graham then goes on to say he also warned of a forthcoming quote period of confrontation with china over quote it's cheating currency manipulation so this is what lindsey graham what a very powerful senator in the g.o.p. which has just been nominated and they're celebrating that this guy's going to rescue the dollar he's going to how do the rescue america crackers lindsey graham crackers these one of those wide stance guys i think will be reading about the not
too distant future well ok so here is america's decided to blow their wad on invading iraq and possibly china now here's the headline the folly of the american business model of oligarchs the monarchs who run the big energy big military industrial complex headline reads killing each taliban soldier cost fifteen million dollars killing each nato soldier costs fifty thousand dollars but they're making up on volume oh yeah well they didn't say that dot com somewhere in silicon valley and they could lose money that way and take themselves public and retire billionaires so these are based on numbers from the brookings institute and you know an independent analyst looks at it and says if you look at that out of the number of taliban soldiers killed and you add up the number of nato soldiers killed divided by the cost that each has spent and you find that. the pentagon and nato a bankrupting the u.s. nato is also bankrupting the u.s.
no of course because they're advised by someone monkeys like paul krugman now that makes no sense their model of courses is on sustainable and the u.s. dollar of course is going the way of the dodo and. the new gold backed world currency is coming on board even alex jones knows this. all right stacy i would thank so much for being on the kaiser report thank you max don't go away much more coming your way so. this is just a parliament building in. the. sixty's for. the final target. true for the army. it's country became the symbol of the financial sort of. victory
over nazi germany. welcome back to the kaiser reports i'm not to go to new york and talk with commodities expert kevin carey who is author of a new dragon's medal report china's resource monopoly in the world's growing resource addiction kevin care welcome to the kaiser report good to be here thank you all right can care rare earth metals have been all over the news lately thanks to china's bull brief ban on exports tell us what are rare earth metals well
they're basically the seventeen elements you were told in high school didn't matter they're the ones at the bottom of the periodic table but you know more importantly they're in things we use every day and we don't even realize that a lot of the electronics that we buy in the new hybrid and green technologies the big windmills that you see when you're driving around the countryside are in the desert in california a lot of these things and it's used in defense items. that we rely on so these rare earth metals have been around for a long time and they're used in a lot of things we're seeing use more and more every day ok so on the periodic table that i studied in high school all that stuff at the bottom of it that had all kinds of really high numbers that nobody figured it would have any worth is now suddenly as you call it the new oil explain more it's absolutely becoming one of the most important commodities clearly because of its being brought to tension because of what's been going on between china and japan japan has been so dependent on china for forever basically for these rare earth metals for so much of what they
produce and this route between china and japan over i think some of these islands that they haven't disappeared because china to threaten to ban exports and other posturing china is responsible for ninety seven percent of the available world supply of these rare earth so japan is really really spooked by this and the u.s. should be too right so we know all about how shortages in the oil business can cause all kinds of economic mayhem in the u.s. of course the oil shock of the seven days and then oil spiked up to one hundred forty seven recently cause all kinds of mayhem so you're saying as commodities expert the same kind of thing happening in rare earths because so much of our new electronic world all the gizmos are made with these rare earths and china has a ninety seven percent of the of the market how did that happen well you know what it's a two fold here it is exactly like energy in many ways because here we are we're dependent on these metals for our future green technology you know the hybrid cars
like the shed the windmills etc in other technologies if we're going to ever get off this oil addiction which we're definitely dependent on right now we're going to need those green technologies so we're going to need these rare earths in the future now we do have supplies here at home they're just not being developed it's going to take years before that gets underway there's many obstacles here and in other parts of the world environmental governmental you know litigation and then money it's very expensive price. right now to dig in the ground and look for these things and it takes a long long time china is already up and running they don't have as many restrictions we know that in many industries they don't so there is able to produce these metals that other areas of the world either have not or cannot at this time so that's why they have such a lock on exports and we are going to become more and more dependent on those exports for our own at home use and in defense as well which is very critical right so the u.s. has rare earths but due to environmental concerns i believe if i know the story correctly here they kind of let their mining industry and these rare earths a lapse and they kind of just
a furtive let china run with the ball now that this become mission critical to go back into a mine in the us is going to be difficult because of all these environmental laws of course that are isn't as toxic when you're mining these rare earths as let's say copper or goal yeah you know what absolutely that is one of the big hurdles here a lot of these mines were shut down for a couple reasons one was the cost of course related to any litigation would come up governmental red tape you know similar offshore drilling you know when we start to talk about offshore drilling run into all these political and environmental ramifications and red tape that's that's what has happened with the rare earths and also it's money you know it takes a lot to build the infrastructure and dig these metals out it's a commitment and it just hasn't been there in the past now you are right now as usual governments coming out and saying this is mission critical we need to do this right away it just won't turn around that quickly i'm not confident it will anyway but that is exactly right max that is exactly what's happened and here we are and now it's mission critical as you said and china meanwhile is up and running and
we're going to be depend on them for a while for these metals just like japan all right speaking about exotic metals there's one thirty three m. which is on the periodic table somewhere we get a lot of e-mails on this topic asking about thore m. you're the expert could you talk a little bit about thore and what what what's the what's the what's the story i'm thore i'm well you know we talk about extensively in our reporting authority and remakes video. which is online is very good it's actually in the report to people can watch it explains it a lot better than i can i'm not a chemist but from how i understand it you know the other thing we're looking at here is nuclear power and we talk about all the energies and the green technologies we're talking about nuclear many of these rare earths are used in that process thore i'm being one of them and you know the future of energy in largely depends on these rarer you know not only for nuclear but us as i said earlier the green technologies as well for him is really on the radar screen for many in this sector there's others molybdenum and others that you know are really focused on many of these do have toxic byproducts that is one of the biggest concerns environmentally
when you're mining it it takes a lot of money to protect the environment in mind for these but longer term they're going to be the answer to many of our energy problems and we have to look at this and we have to you know expound on the resources we have here at home and that's one of them for him is definitely one of them all right now i noticed recently that there's been an exchange traded fund launched based on these rare earths and is this is there are enough product out there to supply the demand on the e.t.f. market is the i think at last and then there was an announcement from china that they were going to relax their export ban and had a little bit of an impact on the trading of the e.t.f. is there are some some gamesmanship going on in these markets the other it definitely is a political angle on the chinese japanese disappeared now i would really be cautious of that you know the new e.t.f. buy i believe vanek that came out is interesting we have some concerns about it because of some of the elements of it we don't talk about in our report because it
is so new it just launched but again this is kind of encouraging that these things are starting to come out i would probably wait for a while though before investing in this sector in that e.t.f. or any that might come out any time soon there's going to be more opportunity to come down the road and also with this volatility from china and again they're they're changing their mind every other day and i think really have to look at. sector is longer term there are some opportunities out there some of the equities are recommand that are actually producing right now we also have more speculative plays and really really speculative plays we give the pros and cons for each so people can read about them and make their own decisions but the e.t.f. i would probably just take a look at right now i really wouldn't jump into that at this time already so just to be clear these rare earths they're involved in strategic manufacturing capability for defense and electronics and they apply i guess a lot to their magnetic properties and how that relates to i mean defense is
a big end user of these these rare earths you know and that is critical to national security i am a little cautious on the government actually trying to regulate these rares here more price fixing in some way but you know at this point we don't see that happening but these are strategic metals they're the ultra ultra precious metals china is certainly going to safeguard them there you know china has been basically called the saudi arabia of rare or say have such huge deposits and there develop they also have the infrastructure you know any of these equities that we're looking at earnings potential mines that are coming online we need to see that they also have infrastructure roads railways or just like we would with any mining stock and many of them do not so that is a big con for a lot of these that'll take years to build so we really want to focus on the companies that are already producing that also have infrastructure to get these products to market of the some loose at the table couple of weeks ago that afghanistan claims it's now the saudi arabia of the lithium market is that when he
anything to that sure yeah i mean you know a lot of these rare earths we find in many places in the world some are friendly some are kind of friendly and then there's places like afghanistan clearly there's there's certain hurdles you know in certain investment concerns for companies that are going to put money into infrastructure and developing mines in a country like that i just have saw oil companies investing in. places like venezuela only to be nationalized and turned away there's there's real concerns in some regions that have these rare earths lithium being one of them i haven't read the specific reports and with them in afghanistan but i do know that you know any kind of investment in that region will be long and difficult forever as there show you know again we want to focus on the countries that are already producing that have the infrastructure in place otherwise we're talking about at least ten to fifteen years minimum to really get this up and functioning and some of these locations well certainly the demand from the democrats in america for lithium probably just quadrupled in the last i want to four hours right now we've got about
a minute or so left i want to talk about oil now a year ago what oil got to one forty seven we saw demand destruction in the us and around the world and so the price discovery mechanism was kicking in and people were saying ah demand is collapsing around the world but now the oil on the way up again it seems as though demand in asia china india is maintaining a pretty strong pace and production however is falling off so two to two point questionnaire peak oil are you guys a support the peak oil story number one and number two is it possible for asia to decouple from the u.s. and continue to grow even if the u.s. continues to fall apart but there are great questions you know i do believe in peak oil in a way we believe that oil price of oil is not going to run out it's just going to become more expensive it's going to be harder to find it's going to be more costly
to explore for it so these costs are passed on to the consumer look we you know a lot of people say it's a bubble when we're going to go back to what prices were forty fifty dollars you know i remember when they had fifty dollars for the first time and that was quite a while ago however you know what we're going to see is the cure for high prices high prices if we get back up you know to a level like one hundred forty seven dollars was at the time where it becomes. well absurd you know about thirty dollars of that was just pure speculation the market will take care of itself and correct now when it corrected it corrected too far to the downside and came back and we've been pretty much in that kind of nominal range since and i think the market has a way of curing those problems itself i do believe though that we are seeing more and more demand out of asia you know like you have millions of drivers being added on chinese and indian roads you know demand for better goods for processed goods these things are going to continue to grow as china grows as the rest of the world grows as their middle class grows so we're going to have more and more oil demand
the question is how much is it going to cost to find the rest of the oil that we have in the world and that could be expensive so i do believe that those prices will continue to climb we're going to get a lot of trading activity in the in between it's not going to go straight up to two or three hundred dollars it's going to it's going to move back and forth but it is moving higher can china and asia decouple from the us absolutely i don't think they'll ever leave us all together we won't and that relationship but you will see them moving and they're already doing it they're doing it in the agricultural by moving into africa and other areas in venezuela they're doing relationships with them for oil they're doing deals with russia they are working the world for resources and we are being more and more isolated we do not have those relationships we have terrible relations with venezuela who is our closest export or basically besides mexico who is in serious trouble because one of their biggest fields is experiencing peak oil the cantrell field i mean it's basically dripping out oil at this point so we have some real concerns here at home about our relations with the rest of the world and what strategic deals we're making because
we are energy dependent and we're not drilling off shore even now so we need to make some real tough decisions yeah but kevin i mean thanks to the war in afghanistan america's got plenty of opium and let them all kevin care thanks so much for being on the kaiser report thanks max all right that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert and i want to thank my guest kevin care if you want to send me an e-mail please do so at kaiser reported r t t v are you until next time this is nice guys are saying by all . the be.
university fees well more money. and more analysis of the g twenty in the business update as president calls for better access to capital for small. business all that twenty past the hour. around the world around the clock this is live from moscow the g. twenty leaders are in south korea they're all trying to get the countries back into good financial health but each keeping an eye on the currency war that threatens to overshadow the summit the heads of the world's biggest economies are keen to stop nations are using their exchange rates to keep their own countries afloat at a cost to.