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

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now here last week this is all to see one of cuddle kids out these envoys comes to moscow to meet us it's called the stuff he's doing an end to the fires around towards a new lens resolution on the movie itself the french made us talk at several buildings including an anti corruption agency. russian attack sectionals are accused of mass investment of links to annoy you dialing cost of regular go to get magnets and staff calls the public and private speculation humans refuse medical treatment
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while in kampala. and china is setting out how. to build its own space station lingle malls within decades beijing's out of it but it wants cooperation with the two current space to the past but that's a war eat a cookie it's a new international by the way. i'm next to the claims report digs deep into the muck his side of. easy. to report it silver let me tell you something there is no alternative to you know. there is no alternative let's bring in stacy or well manc they wait a minute were you so long on this close location where was that some bunker
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somewhere what's going on max i had to do is read the strap and see that i was in connecticut you have a strap on. listen well you talk about silver we're going to talk about it 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 and the tax 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 your store and uses
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a credit card they're creating fee on 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 blaming the speculators because you're dunderhead yes it's an expansion of money supply and banks create it through people borrowing money from them and you see that at the starbucks all over the place people using their credit cards to buy on 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 loaned into existence from banks and every time somebody uses their credit card they're increasing the money supply those looting 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 record highs at once and coffee is at a thirty four year high of course he forgets to mention the supply and demand for
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currency the supply demand for credit that's what's driving this market again i worked salts a guy who figured out one day that people in america might want to enjoy 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 how or 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 is strategy of quarter point interest rate increases every two months has yet to contain consumer prices right well this is part of the global currency war isn't why the stern have so much of pleasures because of all of the money that's being sent to them because of the walmart that's right but also the u.s.
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has been engaged in two rounds of quantitative easing trillions of dollars printed the us and their currency in china now the room in b. is pegged to the dollar so every time the us 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 tail that wags 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 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 geitner you're the currency manipulator maxes central banks around the world i would disagree that if anyone unique and i'm in disagreement on that one because china is empty. it's up fifteen point three percent in april alone so they're doing a darn good job printing money and in response to to slim it down regulators
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expanded the range in which gasoline and oil futures control. but again they're there appeasing the speculators going back to the year two thousand the commodity futures modernization act when they remove position limits which are there for a good reason to prevent any one bank from dominating the entire market in manipulating prices but there remove that piece of 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 offer 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 they 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 but they're micromanaging which direction they
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want right the stock market is in a bubble and it should have margin rates increase to prevent the stock market from reaching in the apex of a nother huge gargantuan bubble in bust but that's being left alone because it's capitalized by the banks themselves that own the regulators whereas precious metals which are the car petition to corrupt bankers they are being subjected to the 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 radicalised 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 going to. moving the u.s. dollar which started by the treasury using a euro swap remember in two thousand and seven and thus began to move silver and
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gold are also currencies and so violent moves in this we could see that we are what we are seeing a knock on effects and all the markets around the world but look they intervened in 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 not 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
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while gas prices at the pump are increasing because that's the actual physical market is actually going up but the paper market is being manipulated in all manner of violence manipulated to cite who path ology being practiced by these psycho pathologically insane or betrothed yours quantz places like wall street and goldman and j.p. morgan were you by the way during the period you know you just kind of disappear there for a few days you said in their own writing and the owners are in the other end you know guns you have some kind of guns or look like a banker in one of those fish that can only come out of touch and talk like crazy fish fish fish 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 margin. 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
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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 in what what's happening stacey however is that the margin rate is going to go up two 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 a second amendment issue because you talk about all those guns behind me in connecticut well i think this is the second amendment issue you know that second amendment gives you the right to bear arms to defend yourself well i think bearing
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arms in the currency financial war is gold and silver those are protection against the financial war if silver bullets i have a silver bullet five gold bullets two those are expensive the gold bullets i don't know it's always good for werewolf stuff and ben bernanke but i mean gold that's awfully expensive ok well 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 imprints 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 us and their dollar to the european area and their euro but only let me explain something about the dollar
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enjoying a bit of a bounce recently time exactly to the moment when been logged and spectacle a stance of bully guy pakistan shot violence films little love and huge american state sanctioned terrorist blood guts pentagon armed military conflict the military industrial complex i.e. you do are you do it's a huge platter 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 good thing back in the dollar district in the state sanctioned terrorist act that's what those are all about china's want it all and more it is one dollar more bangladesh's want it all and more but it was only more because only because if you bought of gold you're buying votes there is no alternative but silver and gold there is no alternative bangladesh and a little blip it's not a rally in the dollar max there's a lot of cool of this if we don't have that much time left and i want to show you
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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 has already been written off and they're still pounding 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 for the last few 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 is 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
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now in ireland people are committing suicide to escape the predator bankers you see this all over the world and to escape the debtors prison bankers prison there has to be what robespierre said many years ago if the social 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 max oh right you don't know where there's more coming your way. repairing a broken link. the way construction and humanitarian aid. the official get the spoils of war it's the people like the price. the cheering is no longer just down to drug trafficking.
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hungry for the food we've got. the biggest issues getting the invoice face to face with the news makers. i welcome back to the kaiser report i'm nice guys are time now to go to new york speak with the reggie middleton boom bust blog dot com reginald and welcome back to the kaiser report it's good to be back reggie melton last time you're on the kaiser report you tell us how there were zero percent interest rates or starving the banks that it was designed to say that the time you were the only analyst in the world to imagine that it would starve the banks and even proven correct so tell us more about this what the current status of the current status is the. same as before the banks are not making and the real economic profit for their interest bearing assets
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and they are taking a losses on the liabilities. on the assets that have become liabilities. i think also in the last i want to show i discussed something that was relatively contrary and unique as well and that's the banks that were actually willing to walk away from foreclosures well. we're going to story this morning i said should head cities of these flood cities that was suing banks for care and maintenance on foreclosed properties so now you have banks 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 in to support it instead of backing a loan it's creating a whole for the said loan so not only will they probably never get the money back they have to pump more money and. it's also difficult to see how they get out of there if the cities will become aggressive and i can see cities municipalities
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becoming quest of because hard times are all over everybody needs the money and if the city see the money they're probably going to go after it resident and 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 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 that the stakes are stepping in and they're actually issuing these banks and so how how much teeth do these lawsuits have do you think reggie i don't know i'm not a lawyer and this for us is i know we're in. uncharted waters but the banks or legal sinkholes. the banking industry is a new tobacco industry now only all municipalities in cities suing the banks you have the banks m.b.a. and mortgage backed security investors and trust suing the banks for you know
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forgery practices misrepresentation you have the market g.'s suing the banks the people who have been frozen for close upon and that is like a bottomless pit think about the amount of mortgages taken down there been taken out during the boom time just think about two percent of those people soon events you know unlimited liability so if you figure to back up the senate legal bills you probably haven't seen anything yet and tobacco companies didn't run at thirty times leverage by the way. right the pack of companies that run of three times leverage well let's go back to two thousand and eight for a second we know that hank paulson went to congress to negotiate 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 well i do if you don't know what the total price tag for god is to give you a number that's not. you know not of interest medical number and the price of the bailout is the economic future of the country if you don't bet be insolvent fail. crashed by i don't know to be on our way back up we have economic productivity. at a brisk level. we decided not to do that and decide to keep all of us in place and now you're dragging along so i have absolutely no idea what there was 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 fraudulent foreclosure issues with attorneys generals etc it out for five billion dollars if they get away with that that is in
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essence a bailout because we are 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 off for five billion dollars you can get out to two hundred fifty billion dollars let me get your comments on something that's in the new. 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. all straight guy all day who came in and said that based on matt taibbi exposé in rolling stone magazine that the 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 matter be article did you read the matt taibbi article your analysis or financial analyst
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analyst did he get anything wrong in any of his analysis or is not tied me 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 read the latest. article by terry but i can tell you i've been attempted to alert those who felt the goldman sachs guys. have excrement it does not smell the goldman sachs is going 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 of going to sex tapes and running its business and the risk of the assets are not covered by the profits of doing business from an economic perspective you know they're covered from the conning perspective and they make a political cunning earnings in the price goes up but they take significant risk over the last two thousand seven of the last three or four years that rates is kind
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of right there they're basically. i'm going to watch my tongue here for the first time in quite some time but goldman sachs' business model is basically to take advantage of his clients that's where the expert comes from and that's where they have. training with not one last insider trading statistically having a quarter without one day of trading losses as was the case of kong and 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. you know 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 would want to do business with somebody who had one trading loss and two or three quarters you know i
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wouldn't it's not worth the chance just not worth the risk or let's talk about the stock market for a second it appears almost as if washington and particular ben bernanke and working through the c.m.e. and 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 a horrible shape stock markets trading near all time highs is that as our disconnect there of course there's a disconnect i believe that there could be market has been significant overvalued you know 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 blow and we inflate the bubble which they succeeded in nominal terms in the u.s. equity markets the problem is bubbles and i cannot make progress you know you go
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a bubble pops when it pops usually values you go below the trend line and that's not the way 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 from correct if i am correct then you're going to see if your prices drop significantly and from wrong then you're going to keep going up despite the fact learnings of revenues in margins are going the opposite direction and the spike in fact the input costs are going up despite the fact employment is going down that doesn't sound like investing that sounds more like. you know if chief bernanke and people can and he does that's not enough investment and that's not a true market with compress discovered you know rights if you plan by market and since you 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 periphery for all nations in the u.s. 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 they're deal with triumvirate of. super economic superpowers the e.u. the us and you have in china and. each each of them each one of them have fairly unique problems but taipei related in a correlation between the problems of basically the bubble and how they handled it the e.u. is in a highly indebted staff ation every state so is the us the e.u. has the too many chiefs and one of india's problems where they have. separation of strong economic countries and a very weak economic countries that are pulling other countries out 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 to happen and that's going
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to do significant damage to euro because rates spike the u.s. has too much debt and basically running a ponzi scheme with treasuries there's no way in the world the treasury should be increasing the price in that way to another one and then you have china which. anecdotally appears to have avoided a lot of it's because if they simply ran a bubble they open their bank spigots it's not everybody then include anything that could be considered transaction in g.d.p. and it looks like they're doing well they're going to crash in faith it's going to be inefficient every question one way or the other but i think the three powers are basically waiting for the other two blog world opposable as if they will. cover flies and erection that's the best attack and. 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 serial destruction in several countries and china is rampant inflation there's absolutely no way to tonight so if china and the u.k.
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you go before us u.s. benefits if the u.s. and china go even benefits etc i don't think 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 to each. other three and cities are taking don't seem to be fundamentally sustainable in just the five of political just fundamentally just all right it sounds like what some call a currency war and the world war three being fought on the currency of pets is exactly what's going on reggie middleton thanks again for being on the kaiser report ok well you're very welcome for coming back again and that's going to do it for this edition of the kaiser report with me max kaiser and stays there and our thank my guests reggie melton of 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 in for the next guys are
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