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tv   [untitled]    May 17, 2011 3:30am-4:00am EDT

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paula back here with our team here is a look at the top stories russia plays a mediator for the libyan conflict and prepares to host gadhafi zan voice of the rebels representatives failed to turn up what some analysts suggesting they've grown too close to some states not interested in peace. deadly financial dominoes for spain will slike the next possible victim of the euro crisis after portugal's massive bailout package is unanimously agreed. in china voices and vicious plans to
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put its own station in orbit while officially focused on research the program is mostly funded by the military causing concern of a new arms race in space. because of how lines next let's turn to our tease financial guru exerciser. there this is the guys report you know silver let me tell you something about silver there is no alternative. there is no alternative let's bring in stacy or well max they wait a minute were you so on this close location where was some bunker somewhere or what's going on max tell you to do is read the strap and see that i was in connecticut you had a strap and. listen when you talk about silver we're going to talk about
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commodities and inflation in general today the first headline max is starbucks chief howard schultz attacks coffee speculators so howard schultz the president of starbucks the world's largest coffee chain has attacked speculators for pushing up the price of coffee to a thirty four year high he said quote through financial speculation hedge funds index funds and other ways to manipulate the market the commodities market is in a very unfortunate position this has resulted in every coffee company having to pay extraordinary high prices for coffee ourselves if you want to stop the price of coffee from going on there don't let any of your customers use credit cards every time a customer goes into a store and uses a credit card they're creating fear debt and of zero out of nothing that's why the price of coffee futures is higher if you knew anything about economics you would know that but instead you're blaming the speculators because you're dunderhead yes
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it's an expansion of money supply and banks create it through people borrowing money from them and you still see that at the starbucks all over the place people using their credit cards the pyrite money is loaned into existence less than five percent of the money in existence is actually printed by a government the other ninety five percent is loan into existence from banks and every time somebody uses their credit card they're increasing the money supply those diluting their purchasing power in fact he says this in his statement as well without any real supply or demand issues we are. witness to the fact that most agricultural food commodities are a record high school at once and coffee is that a thirty four year high of course he forgets to mention the supply and demand for currency the supply demand for credit yeah that's what's driving this market again howard schultz a guy who figured out one day that people of america might want to enjoy
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a cup of coffee like people in europe is not the guy to ask the micro economic considerations that are driving the price of coffee itself no howard just stay there and do your barrister thing and don't talk about economics because you're obviously completely financially illiterate so inflation is also in the next headline china inflation spreading beyond food adds pressure so china's inflation is spreading beyond food as the headline says signalling premier wen jiabao those strategy of quarter point interest rate increases every two months has yet to contain consumer prices right while this is part of the global currency war isn't why this time i have so much inflation is because of all of the money that's being sent to them because of the walmart that's right but also the u.s. has been engaged in two rounds of quantitative easing trillions of dollars printed the u.s. and their currency in china now that you are mindy is pegged to the dollar so every
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time the u.s. prints money every time ben bernanke you prints money china has to print money who's a currency manipulator china or the u.s. that's the big question here are you feeling well obviously this is the tell the legs the dog or vice versa you can't really say china is the currency manipulator if they're pegging to the dollar which is being manipulated but it's the world reserve currency so they say well it can't be possibly manipulated because they live in a snow globe of denial they're in a world one of three hundred sixty degrees of fraud they don't see that there is a currency manipulator tim geithner you're the currency manipulator maxes central banks around the world i would disagree that if anyone unique when i'm we're in disagreement on that one because china's m two. is that fifteen point three percent in april alone so they're doing a darn good job printing money and in response to this limit down regulators expanded the range in which gasoline and oil futures control. but again they're they're appeasing the speculators going back to the year two thousand in the commodity futures modernization act when they remove position limits which are
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there for a good reason to prevent any one bank from dominating the entire market in manipulating prices but they're a move that piece of the regulation and every time now that the markets get out of control they simply remove all manner of regulation or framework or any any way to buffer the rampant manipulation so the response of regulators should be to regulate not to in continuously deregulate well but it's also not a free market pay have a specific outcome they prefer so they don't mind if the dow continues to go up or the s. and p. goes up and they don't mind of gasoline prices fall so they'll allow extreme moves in those directions that they prefer and they're micromanaging which direction they want but the stock market is in a bubble then it should have margin rates increase to prevent the stock market from reaching and the apex of a nother huge gargantuan bubble in bust but that's being left alone because it's
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capitalized by the banks themselves that own the regulators whereas precious metals which are the competition to corrupt bankers they are being subjected to onerous margin rate increases in a selective prosecution of various markets what has been called violent currency moves is resulting in a violent precious metal moves but it's also resulting in the spread of radicalized precious metals buyers around the world well max listen you know the beginning of the whole financial crisis began with a violent currency move and that was the. moving the u.s. dollar which started by a treasury using a euro swap member in two thousand and seven and thus began to move silver and gold are also currencies and so violent moves in this we could see that we are what we are seeing a knock on effects in all the markets around the world but look they intervened in
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the in the gasoline and oil futures markets they are they're introducing all sorts of margin rate hikes first take a look at this picture i took in connecticut last week you see that prices are well over four dollars there for the average price of gasoline so the headline following this reads crude plunges but someone tell the gas stations and refiners average price of regular rises by two point two cents overnight so following that collapse in the gasoline futures we saw gasoline prices rise exactly because there's a disconnect between the paper market in the physical market because there are seven hundred trillion in paper around the world on a fifty trillion dollar global g.d.p. and when you drill down to markets like gas you've got oil collapsing in price prices at the pump or increasing because that's the actual physical market is actually going up but the paper market is being manipulated in all manner of violent manipulated to cite who passed college being practiced by these psycho
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pathologically insane or patrols yours and quants places like wall street and goldman and j.p. morgan where were you by the way during the period you know you just kind of disappeared there for a few days you sent an errant reading in the owners are you know the other end you put your guns you have to come to guns a look at a bank or in one of those fish that can only come out of touch and talk like. this pish i mean where were you exactly i mean you kind of went off the grid actually somebody in the comments section said they've never seen such a redneck room. but we're talking about all the marching. rate hikes that we see well shanghai also joined in a member you seem to differentiate you think tim geithner and ben bernanke you are somehow more powerful and uniquely corrupt than the rest of the world but if you look at china they're doing the same thing money supply a fifteen point two percent in one month alone and then we see this headline shanghai and third silver margin hike in month right and what what's happening
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thinks your average is that the margin it's going to go up to one hundred percent which means that you've got people owning the precious metal for one hundred percent cash which is the same as having a gold or silver standard so the c.m.e. in trying to dissuade people from precious metals by raising the margin rate is actually creating a de facto global precious metal standard that's why i say there is no alternative you talk to me about the price of silver and i say to you there is no alternative paper is complete nonsense there is no alternative i think this is the second amendment issue because you talk about all those guns behind me. well i think this is the second amendment issue you know the second amendment gives you the right to bear arms to defend yourself well i think bearing arms in the currency financial war is gold and silver those are protection against the financial war if silver bullets i have silver bullets i have gold bullets to those are expensive the gold
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gold is good for wearable stuff and ben bernanke you but i mean gold that's a little expensive ok but let's move on to this headline because i'm going to prove to you that they're trying to keep you from defending yourself against currency collapse dollar engraver danger than the euro so this is axel merckx in the financial times and he says imagine a country that spends and prints trillions to patch up any problem now imagine another country where there is no central treasury meaning that bailouts are less easy and which has a central bank that is mocked up liquidity over the past year rather than engage in quantitative easing of course he's comparing. the u.s. and their dollar to the european area and their euro but only going to explain something about the dollar enjoying a bit of a bounce recently time exactly to the moment when been logged and spectacle stands simply guy pakistan shot violence film little love and
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huge american state sanctioned terrorist blood guts pentagon armed military conflict the military industrial complex i.e. you do are you d s it's a huge bladder fest that we've seen which is the basis for the rally in the dollar there's no jobs or there's no manufacturing there though i think i think the dollar district in the states tension terrorist act that's what the poll is all about china does want to go to the more it is one of the more bangladesh was a little more but it wasn't all the more because all in fact the dollars if you bought a boat your boeing volunteer is the author of the books over and gold there is no alternative bangladesh and a little blip it's not a rally in the dollar max they get lots of gold listen we don't have that much time left and i want to show you another headline banks driving people to suicide so this is from ireland and this comes from one of ireland's most senior high court officials and he's spoken out about banks hounding people over debt some of which
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is already been written off and they're still hounding people to their death he said quote we know which banks were the cheerleaders for the celtic tiger it's some banks are reverting to type to come to court assuming that the banker always wins anyway that's not how the law sees it it has to last for years of course bankers always win but this guy this judge in ireland is saying no no no not here not on my watch. this is a trend you see first in india of course the bankers go after the farmers and there's the indian farmer commit suicide every thirty minutes thanks to the genetically my modified currency seed the monsanto that is the genetically modified seed which acts as an agricultural currency and you see suicides in india one every half hour now in ireland people are committing suicide to escape the credits are bankers and you see this all over the world and to escape to debtors prison the bankers prison there has to be what robespierre said many years ago if the social
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contract is broken the people must revolt well my final word is that gold and silver are a second amendment issue there is no alternative thanks so much stacey thank you mancs oh right you don't know where there's more coming your way. repairing a broken things. the way construction and humanitarian aid. official get the spoils of war it's the people the price. the cheering is no longer just down to drug trafficking. the drug. free. free. free. free.
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free. free. video for your media project free media the hard time. i welcome back to the castree park imax guys are time now to get to new york speak with the regime middleton boom bust blog reggie milton welcome back to the kaiser report it's good to be back reginald the last time you're on the kaiser report you tell us how there were zero percent interest rate for starving the banks that it was designed to say that the time you were the only analyst in the world mentioned that it would starve the banks and even proven correct so tell us more about this what's the current status of the current status is the. same as before the banks are now making in the real economic profit off of their interest bearing assets and
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they are taking a losses on the liabilities. on the assets that have come by guilty. i think also in the last time on the show i discussed something that was relatively contrary and unique as well and that's bang. that we're actually going to walk away from foreclosures well. then a story this morning that should head cities at least four cities that were suing banks for keeping care and maintenance on foreclosed properties so now you have banks they actually have collateral that have a negative value to it it's actually costing them money so the collateral is actually proving to be the antithesis of what the anticipated instead of backing a loan it's creating a hole for the said no so not only will they probably never get the money back they have to the money and. it's also difficult to see how they get out of it if the cities are become aggressive and i can see cities in its apaches becoming
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aggressive because hard times are all over everybody needs money and if the city see the money they're probably going to go after it reginald the most let's focus on this a little bit more so you've got a situation now where the banks recently it seemed as though they were getting washington to pass a new laws to absolve them from their mortgage fraud of mortgage selling problems or to cut a deal and get it behind them and do some accounting tricks on their balance sheets but what you're saying now is the stakes are stepping in and they're actually issuing these banks and so how how much teeth do these lawsuits have you think ready i don't know i'm not a lawyer and as far as i know we're in. uncharted waters but the banks or legal sinkholes. the banking industry the new tobacco industry now only all municipalities in cities suing the banks you have the banks m.b.a. and security investors interest suing the banks for you know forgery practices
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misrepresentation you have the market gees suing the banks the people who have been frozen for close upon and that is like a bottomless pit think about the amount of mug. just take it down i've been taken out during the boom time just think about two percent of those people soon to be ex you know a major liability so if you think that the backup copies of any of the bills and probably haven't seen anything yet and tobacco companies didn't run at thirty times the average by the way right to pack a combination run of three times leverage but let's go back to two thousand and eight for a second we know that hank paulson went to congress you negotiated some bailout money and this was augmented by further bailout money do we know what the total price tag was for the bailout money and my second question is based on what you're saying here can we anticipate another round of bank bailout money and will it be
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approximately the same size or less or more but i do if you don't know what the total price tag for a god is i could give you a number that's not. you know not of every medical number and the price of the bailout is the economic future of the country if you bet be insolvent fail. come crashing to hit the bottom review and i way back up we have economic productivity. at a brisk level. we decided not to do that and decide to keep the oligarchs in place and now the dragging along so out of it i have absolutely no idea what the average medical number is but the actual true economic cost is future growth now as for any other bailouts also read another article this morning oh yesterday stating that the banks are considering settling their fraud in a foreclosure issues with attorneys generals etc for five billion dollars if they
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get away with that that is in essence a deal out because we're talking at least twenty twenty five billion dollars of potential liability at minimum from a realistic economic perspective so if you could if you could take twenty thirty billion dollars of your problems and you can buy them sell them out for five billion dollars. to get to a fifteen billion dollars let me get your comments on something that's in the news is talk about goldman sachs for a moment two stories have come out s. and p. just downgraded goldman sachs and we've also got a downgrade from the wall street guy go of a who came in and said that based on matt exposé in rolling stone magazine that this stock's price target was lowered substantially by more than forty dollars and goldman sachs case the stock is down six billion dollars already today and making reference to this mad t.v. are tickle did you read the matt taibbi article your analysis your financial
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analyst analyst did he get anything wrong in any of his analysis or is matt taibbi you know he's a primate he's a journalist an investigative journalist he's not a wall street guy some people might question his analysis but reggie middleton what do you say about his analysis is it accurate well to be honest i didn't get to be delayed this. article but harry but i can tell you i've been attempt to alert those who felt the goldman sachs guys. have excrement it does not smell the goldman sachs has been overvalued for quite some time starting in two thousand and the spring of two thousand and eight i made it very clear that the amount of risk and sex tapes in one of its business in the risk of the assets are now covered by the profits of doing business from an economic perspective you know they're covered from an accounting perspective and they make a bunch of accounting earnings in the price goes up but they take significant risk
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over the last two thousand and over the last few four years of their risk on the bike then. basically. i'm going to watch my tongue here for first time in quite some time but goldman sachs business model is basically to take advantage of his clients that's where the excess spread comes from and that's where they have. training with not one lost an entire trading statistically having a corner without one day of trading losses as was the case with gone with j.p. morgan and bank of america i think between the three of them they had one down day in trading losses statistically is that really possible is this is possible is jumping off the empire state building in london somewhere in california with just a broken toe nail. oh it's a possibility but the chances of good ever happening you know very slim you know in general you know i have children and i tell my kids very simply when it sounds too good to be true chances are it's too good to be true i wouldn't want to do business with somebody who had one trading loss in two or three quarters you know i wouldn't
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it's not worth the chance just not worth the risk i let's talk about the stock market for a second it appears almost as if washington and particular ben bernanke and working through the see any other regulators they're trying to corral people into equities they keep raising the margin requirements on commodities but they don't raise margin requirements on training on equity futures and this based on all the economic indicators you've just discussed being of horrible shape stock markets trading near all time highs is that it's our disconnect there of course is a disconnect i i believe that they're pretty market has been significant overvalued if those who follow my blog know that the crash of two thousand and eight in the first quarter of two thousand and nine has never finished the government is attempting to reply oh reinflate the bubble which they succeeded in nominal terms in the us equity markets the problem is bubbles and i cannot make progress you know
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you blog global it pops when it pops use the values you go below the trend line and that's not to be to do it and that's the way that policies has been conducted in this country i disagree with it but we'll see from wrong or from correct if i'm correct and you're going to see equity prices drop significantly and if i'm wrong then you're going to keep going up despite the fact our names are revenues and margins are going out of the direction and the spike in fact the input costs are going up despite the fact that climate is going down. that doesn't sound like investing that sounds more like. you know she's pretty keen and with her name she does that's not enough investment and that's not a true market with true price discovery you know right centrally planned market and central grandma can stand a fair all right last question pertaining to the dollar folks say that the dollar is stronger than the euro they look at the periphery countries in europe and suggest that the euro is inherently structurally weak as
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a result of these peripheral nations in the us however they have quite a bit of trouble based on what we've been saying right here what is your take on the dollar versus the euro both have significant flaws that have significant issues i think there to be able to triumph for it of. the super economic superpowers the e.u. the us and you have china and very each each of going to each one of them have fairly unique problems but taipei related and the correlation between the problems of basically the bubble and how they handled it the e.u. is in a highly indebted steph ation every state so is the us the e.u. has the many chiefs in and of india's problem where they have. separation of strong economic countries and the very weak economic countries that are pulling other countries down and they're going to default to restructure you've heard it from me it's guaranteed to happen it may be called something different but it's guaranteed
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to happen and that's going to do significant damage to the euro and close rates spike the u.s. has too much debt and basically running a ponzi scheme a treasuries there's no way in the world that treasuries should be increasing in price and that race will not go up and then you have china which. anecdotally appears to have avoided all this because of it simply ran a bubble they opened their bank spigots told everybody to lend a clue anything that could be considered transaction in g.d.p. and the looks of it doing well they're going to crash and trade it's going to be an inflationary crash one way or the other but i think the three powers are basically waiting for the other to blow up the close of westminster when. capital flies in every direction that's the president can surmise you know it might not be the case but i see the case that the u.s. is on is be unsustainable i see the case of the e.u. as guaranteed destruction syria of destruction several countries and china is rampant inflation there's actually no way to tonight so if china and the u.k.
quote
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you go before us u.s. benefits if he were us and china go even if it's etc i figure it's a very good way to run the country's finances but from what i'm seeing from the outside looking in as an outsider. can't see them doing anything else besides that because each step they each. other three and speeds are taking don't seem to be fundamentally sustainable and justifiable politically just the probable but not fundamentally justifiable all right it sounds like what some call a currency war and the world war three being fought on the currency pets is exactly what's going on reggie middleton thanks again for being on the kaiser report ok well you're very welcome before you come back again all right not going to do it for this edition of the kaiser report with me max kaiser and stacy herbert all right thank my guests reggie melton of boom bust blog dot com if you want to send me an e-mail please do this at kaiser report at r t t v dot are you next guys are
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saying.
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all.

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