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tv   [untitled]    May 26, 2011 7:30am-8:00am EDT

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we'll. bring you the latest in science and technology from the realms. we go to the future coverage. without see you live from moscow operate the news for you this hour watch the future forcing yourself a military commander wanted for over a decade for suspected crimes has been arrested but critics say he is just another scapegoat in a one sided witch hunt in the conflict in the former yugoslavia. the u.s. it says it's interested in missile defense that meets both moscow's and washington security interests president obama's comments came following russia's leader on the sidelines of the ongoing at g eight summit. today dozens injured in
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a bloody end to georgia's a day of rage as police fired tear gas and rubber bullets at those calling for the resignation of president saakashvili. our next door nazi our financial guru max keiser looks at american motorists road rage over gas prices and why the chinese are seeing a new glow in gold and stick with us. for the full story we've got. the biggest issues get a human voice face to face with the news makers. i am nice guys or this is the kaiser report the global action against the banker occupation it's growing in velocity. and people. you know in america. things are love so well people like yet.
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because the price of gas hasn't hit that critical price level yet i've been talking about for a couple years once it goes to a certain critical price oh it's going to break loose. and then they'll join with the other countries in the global insurrection against banks to occupation let's talk of stacy her for stacy oh max of the beginning of the year we did say one of the primary weapons the banks jerseys against us is inflation and we do see that in our headlines today max american anger at gas prices fueled by rising household energy costs so americans are now spending twelve percent of their disposable income on energy costs up from seven point seven percent in two thousand and two a new study by clear blue energy partners says there were two thousand and two of course was before the invasion of iraq when we went in there to secure
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a cheap oil reserve well better to work out did it that's right not only did they lie blood for oil but they screwed up they they wanted their blood for oil and then they screwed it up well exactly because then also the population of america he supported the invasion of course they screwed up by not looking at history and one thing you find in history is that all wars cause inflation so you might be able to secure the oil reserves by the inflationary cost of military adventure is it's going to drive the price of that up anyway so i remember i remember now going back to the two thousand and one two thousand and two period remember those chalabi. he said his pitch to the president got it for the american white house administration was that bill imposed a billion dollars it goes to a billion dollars you go in there you take over iraq and then you profile hold that
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in the first year with the oil revenues i got a bill for you right now it's worth three trillion dollars and they don't even get the oil so this guy chalabi he's right up there with some charles ponzi you look up with a dictionary charles policy as you put a picture of chalabi and also remember you interviewed gregory mcdonald the energy analyst recently and one of the things you brought up is that at the tipping point will come when a certain wrong certain class of americans start spending more and more up to thirty forty fifty percent of their income on energy costs and we're starting to see that in the numbers this study shows that in mississippi residents are paying up to five seventeen percent of their disposable household incomes for energy that includes household heating and costs and gasoline but gasoline makes up the most percentage of it that's right that's what makes the third world the third world you put fifty sixty seventy percent of your income on buying you know getting acquiring
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food energy cooking oil and of course the first world or the first world because those people want to spend more than ten or fifteen percent of their income on stuff to keep him alive but now it's changing and the people who are in the first world are really now in the second world of the first world like you by the devils five thousand crowd they're the new first world in that they never come down from the mountaintop retreats then the u.s. is now in the second world and the third world they're still in the third world so we're not just seeing the inflationary war against americans we're also seeing it in the primary area where we go to find those oil reserves mideast staggered by cost of wheat so we prices jumped and we could go by seventeen percent. wet weather in the us and dryness in western europe are driving the recent rise futures jumped seven percent on one day and last week the biggest single day dollar gain in more than seven months and are now up for ninety one percent on the year so
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this is important because that return which we now see the uprisings happening in it with many said caused by inflation and in particular in wheat prices so tunisians for example eat more we than anyone else on the planet they eat on average four hundred seventy eight pounds per person a year compared to americans but who eat hundred and seventy seven pounds of cyclists who's on a downer and i love it to a good couscous. and be that but here's the thing about it you see these oil rich nations around the world like on the bed with american central planners back in one hundred seventy one degrees of petrol dollar standard when the us what are the goals there to pay for the vietnam war everything was rosy for a while i mean they had oppressive regimes and dictators but you know the price of gas and food was commensurate with their status as third world losers but now due to the ricochet effect of the monetization of everything that we used to be called
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debt and now we've got a surfeit of cash creating huge inflation both are getting screwed in the middle east too so it didn't work did it the whole experiment with the petro dollar it was a big crashing failure and now you're living with the about the people of course they are having the problem of the inflation but for the rulers used to their problem is that the people are looking to change the rulers they're looking for regime change so the rulers thought they were so smart in getting in bed with american foreign policies and monetary policies but now the rulers are being taken out one by one by being taken. in the middle east north africa spring ireland. you know greece regime change is the only answer because you're not going to teach these dances new turret going to suddenly become. the regime leaders in these
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countries they're all chinooks but if these prices are any indication we could end up more like france and the middle east we could see rains of terror because other able to grow enough we at home countries like egypt and tunisia by half or more of what they need from other countries and pass it along a deep discounts to their impoverished populations as. economists at the world bank said this system is not very sustainable because at these prices buying foreign wheat would consume about six to seven percent of egypt's revenues and then the article in austria journal. by comparison the u.s. spent a similar proportion of its revenues on the wars in afghanistan and iraq last year so again it goes back to this insanity of the guys who run all of the financial system whether in tunisia or america or britain america can afford to weep in the donor anymore and it's become the hole in the don't it i'm sure and domage trust
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card to look at because you know he'll do it. you know you get your druthers are there buddy i don't want to know what he does that turn up but ok so these two stories then collide and my next headline max libya britain's one billion pound war libya conflict lo and behold could cost u.k. taxpayers one billion pounds over six months as cut off aid clings on and the cost of involvement so or this is doesn't make any sense could be clinging on to talk to the people about those thoughts of the people personally going to serve us well as the article notes demonstrations in support of could affy are still common and dissident groups are unwilling to engage his loyalist army so it appears that unlike tunis and and egypt where they were able to overthrow their decades long dictators in those countries in a matter weeks. it appears that there's
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a little bit more support for gadhafi in libya but i want to note as well that this just seems like a pure racket because this the u.k. is more such a testing ground for this the chalabi method of selling the public on some private service whether it's running the immigration and border checks or all these n.h.s. fandango that keep on happening the boondoggles with computerized systems. of. these invasions throughout the middle east are very much. contractors private contractors these mercenary contractors they make a lot of money on these and they sell these and they pitch these to the government to get involved it will only cost one hundred million pounds is what britain thought it would cost it's now up to a billion and who knows what will finally end but again it's causing more inflation for the average president in america or britain or tunisia or egypt peace there's
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no money of peace there's no money in peace you can make money in a peace business you can make money peacefully overturning a regime there's a lot of that but the catholic church for example where they don't follow jesus jesus was about peace they said there's nobody in peace we're going to start the crusades and get this max the name of this this boondoggle that the private contractors have sold to british taxpayers operation unified protector i'm sorry it was an operation unified protector so that your brand of condemnation well that's what it sounds like yes it does but it's also what the british people need is a prophylactic against excessive military spending that's the british people need the american people to prophylactic against excessive military spending they need to take the entire pentagon and slip it into a giant condom prophylactically insulate the american people from being impregnated
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by this ridiculously over. a lot of military spending which is causing inflation and causing the price of oil go up down get it down it's going up not down to understand that it's going to go up. as. well max yeah speaking of prophylactics china is now top gold bug there is no better unified protector of course then gold and china's investment demand for gold more than doubled in this first quarter of two thousand and eleven compared to two thousand and ten to ninety point nine metric tons they now outpace india which is historically the biggest investor in gold in the world and i'm golden euro's thank you i've heard these all over the world as they've been telling you it's not just the chinese and the russians it's the rest are nurse too isn't it susie both max global gold investment demand increased by fifty two percent to
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three hundred sixty six point four tons in the first quarter helping offset a fifty six tonne outflow from exchange traded funds which are a popular investment tools in the west so we talk about this all the time when you're protecting yourself from inflation and that insane of bankers that run the entire world every single nation on earth and every single banking system on earth right go to paper investment which they also control you know you cash in on your own by physical gold well that's what it looks like is now happening there was an outflow from the paper and an inflow into solid gold gold real. and yet despite this the mainstream media the b.b.c. the telegraph you've seen articles saying the gold bubble has popped because people like george soros are selling their paper gold well the fear money prophylactic has popped causing all kinds of debt impregnation while gold stands rock hard
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maybe all right stacy eric thanks so much going on across the report thank you max don't go away much more coming our way so stay right there. down the official t. hopefully cation your money from the long cold touch from the. life on the. video. on keys and. the russians for you now in the palm of your. wishes on the.
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welcome back to the kaiser a fourth time now to go to london and speak with nader leyland of asset management ned old boy welcome back to the kaiser report good also to max let's talk about silver first second here you wrote a very interesting piece about silver price. and it's action in the seventy's were made a thousand percent move and why this is in fact indicative that we are nowhere near a bubble please talk talk about this i just thought that it was something worthwhile to put out there for the for the for the nervous investor which is that you know we really needed to clear to washington to move metal from from week to stronger in order to go significantly higher than we already were and there were lots of things that were going on in the background there's no question that the efforts the you've made to drag all sorts of new people into the market as well
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but i think what i was trying to express was that last time around this happened the same exact same thing happened yet to a twenty eight twenty percent. move over a period of about two to three months which is quite normal any kind of market that goes into a seriously parabolic spike we're almost always have that moment where some of the weaker hands get shaken out and i thought she will to the good now let's just talk about what your thoughts are on the commodity mercantile exchange they're raising margin requirements four times in a week on silver isn't the normal operations to do so is it a sound policy or is it nefarious is it to tack on so variety weigh in on this it sounds like fingernails on the blackboard to me max would be the way that i would describe it you know it's just desperation really i think it's just a sign of where we are in the cd for people like me i have been investing the whole way through the cycle so these kinds of drops don't much but yeah that kind of
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behavior that kind of incredible hiking certainly would suggest that something is substantially an ace in the background right now that i'm looking at all these protests around the world in madrid in italy in. ireland in greece all over europe all over the mideast all over north africa we're talking about now. tens of millions of people and it's growing quite precipitous les i would imagine this number will be in the hundreds of millions not in the not too distant future based on your understanding of the size of the silver market and if my if in fact one hundred million or two hundred million or three hundred million people who are dissatisfied with the banking occupation that's destroying their lives and creating hyperinflation if each one of these folks bought an ounce of silver. what would what would that do another on a grassroots level putting aside the hedge funds for a second putting aside all the financial engineering putting aside all of the
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algorithmic trading at all the fancy high line garbage that's destroying the integrity these markets on a grassroots level you get one hundred million folks trying it out to silver or more what happens to the price of silver i love this question and i'm very peace to be able to offer my view on it i know it's not going to one hundred million which is clearly that is a big number one hundred million by now and i think you can safely say that is going to be a very very very significant effect on the i think actually the biggest effect of all max is the one just to be really awesome and thought i can see what i was saying earlier just think it's like a mushroom being. movement whereby it's more the psychological effect on other people or viewpoint necessarily rather than the immediate price of it clearly one hundred million one one day taking it out c h is going to have a substantial effect on the price but i think it's more a psychological point than
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a than an immediate pricing one because you know there is no doubt that they still . owe a lot more thousand dollars silver circulating in the world than there are coinage so that you know you could make the argument that well there's an issue here with. blanks with making one ounce coins and i think. there's some truth in that but it's not simply netted off by this incredible growth of groceries letting people who want in and not is not genetic off it is removed completely from the table as a problem so i think one hundred million people find out so throughout his or ten. well. we would be in a whole different place very quickly i asked the same question of eric sprott on the show with the example of a million ounces and his response was well you know i'm an i'm an institutional primarily institutional. money manager and you know we don't you know we don't really think that a million ounces if you know it wasn't it wasn't going to register as
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a seismic event based on the numbers that he is used to so i am taking another bite at the apple here i'm looking going to trying to get from my experts like eric sprott or yourself what is the sweet spot in this curve you know a million a priority eric sprott is not the number one hundred million according to what i just heard you say is yes you have a very very very big event you know in the market at some point so what you know is there we know what the aboveground supply of silver is you know the demand is you know the mining output is we know what the training volume is we know all these things so what is the sweet spot what is the number of that it would take to drive one dollar up in the price of silver is it a million is it two million is it two point five billion that number can be extrapolated from the information that we have what is that number i'm not sure it can be extrapolated in there to be because there's too much data we don't have marks i'm not sure i agree that i actually got it but i will i would say rationing
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maybe that's the point is the thousand ounce balls actually i think perhaps you know although yes without question the core and most important point is people of the grassroots level taking some small denomination coins out of circulation i think actually the shorts are somewhat relying on this one thousand us dollars in the warehouses and i don't just mean by the way i mean you know in metal as warehouses i think if if hedge funds and investors realize the difference more clearly between physical and paper silver they'd be much more willing to pay the insurance and stores charges for thousands of dollars i think of a lot of those got locked away out again i don't think a number on it but i think that would have a very very quick. effect on the market it would cause all sorts of. in seeing things that happen like for instance the bully indeed is still getting charged a whole load more for storing silver moving so because of the much more activity in
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the warehouse talking about the one thousand miles bars and the warehouse we know that the comics warehouse stocks thousand and mars is plummeting now what i don't birds are seeing there and how much and how much of a problem is that at what point does comics announce that due to a drop in inventory they're going to have to do make some other provisions but it looks like they were very close like that to me is to me is what i look like mark for me let's look at where we got to so you know the comix is a very small part of the overall gold and silver market it takes and in order not of interest because of the visibility of it perversely is actually the visibility of allows us to grab onto it is being you know incredibly important but i think it's is just as important you know your your private bullion storage business is live on out in switzerland and this is where high net was a hedge funds etc that's where they store metal and i actually think that is
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probably the really the really key point but yeah reference is no question it's getting tighter and tighter and. more and more people are watching what's going on there but with the benefit of the bat phone through to the c.m.e. it may not be about to happen you know in the next month ok so just to just give you the numbers here according to zero heads comics is now down to thirty two million ounces down from eighty seven million in two thousand and nine so there's a large drawdown but i want to i want to just wrap it up here and focus in a little bit on this where you talked about the thousand pounds bar market and it sounds to me as though you're describing really two markets a thousand ounce guar industrial the institutional market versus the one ounce retail coin market let's call it and that according to you these are on two pair. hello lines that don't necessarily intersect but it seems that at some point if enough of the one ounce half ounce ten pounds silver bullion coins are taken off
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the market in the and we already have bottlenecks and shortages in coin dealers around the world at some point again this grassroots effort has got a bleed over into this institutional thousand pounds market because unlike paper money there is a limited supply of silver and we know that it's extraordinarily limited supply of saumur i mean we're talking about a billion ounces available half of that tied up in e.t.s. now some of said well if the price goes up you'll see silverware flying out of the kitchen cupboard and that's going to bring in another huge oil supply will be materializing as we saw in the in the seventy's in the early days and eighty's as well but even taking into consideration that number you talking about a total market that's less than a certainly a less than one hundred trillion in total ever in and that includes every silver platen that's been attached to every sikh one of every gallon every bob mackie down
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ever paraded at radio city music hall it's still quite a bit less in size than the seven hundred trillion dollar derivatives market which is own winding at this moment and people involved in that market are looking for sound money so even giving. go ahead i think. just to get that sort of try and not with a thousand dollar point just thinking about this critically. rather than ordering metal from. i'm not going to mention the name of the mining company because i shouldn't do that but from one of mining company kind of orders still the three that's teacher production i'm not sure actually would not think about whether it would make quite a significant difference if one wanted to do some kind of mentoring programs amid a certain number of coins if one was in the market to do that that's. removing thousand dollars from the warehouse. which could be done i mean it would require
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a little bit of work in the background but i don't think is a reason why that couldn't be possible that in a way would kill two birds with one stone if you're putting more metal out there in one ounce form and you're also removing the big balls from the from the warehouse so maybe there's something you can beat down there. ok ned this this is what i like about you got the out of the box thinking now we're in a bind again because i want the listeners of the viewers to understand what you're saying here ron ron not my bias again where you said that and i like what you're saying is that two parallel lines between between the market and closing them is an issue but maybe that's the point maybe we need to try and make them converge by by you know supporting the private minting initiatives the likes of which you've been involved with and actually rather than securing the rule silver from i'm not making sure that the only time one coin in. any time moments coins is by taking delivery
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of the thousands balls from the warehouse which will put pressure on them but also getting that people's hands i think that could. could serve quite quite. purpose i think we need to look into that the next few weeks actually nice is going to be something that's worth investigating all right then i think that's very interesting and. up until now no one's really made that connection so ned once again proven why everybody in london is talking about data leyland and the fact that he is a stark raving genius over there chip got asset management and they're also talking about some of the ties that you wear because they like the fact that even though underneath that button down shirt is a stark raving genius he still managed to wear the conservative ties i notice a and the max. i thank you for the compliment anyway all right well that's going to do it for this edition because a reporter with me max kaiser and stacy herbert are
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a thing my guest ned naylor leeland of asset management and if you want to send me an e-mail please do so at times to report at r t t v dot are you it's all next on this is max kaiser saying.
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