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tv   [untitled]    April 11, 2013 9:30pm-10:00pm EDT

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international airport in the very heart of moscow.
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i am asked as or welcome to the cause the reporting down the which is dead this song is short to the top of the charts in the u.k. now is this just the odd manner in which the druids that is to say the british people mourn the passing of their former prime minister. or do they just agree with what david cameron and the media claim that margaret thatcher saved britain not to me i see that margaret thatcher what she did is be quids to the population a dream much more honest than the american one she gave them the british dream a dream that you can all strong live to mature before your debts do i guess by maturity mean die stacey yeah you want to die before your debts catch up to you that's the only thing it's like extend and pretend this is the entire global economy this is what she bequeath to the world and that's what we're seeing we're trying to out run these debts and for this i wore this financial apocalypse t. shirt in honor of her death and but i want to look at this other notion that she
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say to britain this is what we hear over and over she saved britain from those workers those strikers those troublemakers and look at this chart here this is north. see oil production this is what i think saved britain if you could see from the chart oil production from the north sea oil came online as she became prime minister and started it will continue to climb up through her prime ministership right well one chart can really show in context the underlying economic forces that shape the prime ministerial ship and so to the prime ministerial a ship of maggie thatcher because as you're pointing out here the economy was driven by oil wealth now what and it's very important i think we're going to get into this a little bit is that ok what happened to that wealth well first of all the fact is the media never talks about it they act as if she delivered some sort of miracle
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that somehow out of nowhere a druid ritual perhaps that they became magically wealthy by her deregulating the financial markets here at the same time that all this oil came on even during this crisis as we saw in that chart oil production was plunging nobody talks about that has any relationship at all to the fact that the u.k. economy is crumbling it's never mentioned very seldom maybe in a obscure newspaper like the guardian on the back page so i want to look back to another article from two thousand and eight u.k. missed chance to build up four hundred fifty billion pound sovereign wealth fund this is from february two thousand and eight and it's based on a pricewaterhouse coopers report they looked at what if the u.k. had saved some of the money from their north sea oil and they found that oil money allowed taxes to be kept lower than would have been possible without either rising
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national debt or sharp cuts in public spending as a share of the economy quote since or oil revenues were greatest in the first half of the nineteen eighties this was also when this potential effect. greatest that was a quote from john hawksworth the chief economist at pricewaterhouse coopers so he's saying it was during the prime ministership of margaret thatcher that there was the greatest opportunity to save for the future of the british population and i say area of this queen which she steals let's be honest about a scottish oil to begin with it's not even english oil it's scottish oil so she's taking scottish oil. she's. creating an underage deregulating the city of london so that they can open up those credit markets to lend money into development of the north sea oil into the scottish oil and she's claiming responsibility for economic growth and concurrently she's not doing what norway did she's not putting billions
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of hundreds of billions of dollars into a sovereign wealth fund no she's allowing interest rates and she's she's allowed taxes to be to be to be cut to finance housing speculation now that the north sea oil the scottish oil is running out you have the economy collapse housing is in collapse there's no room for people to live in london because it's only it's only open for foreign oil drillers and oil speculators there's nobody here who's actually english any more lives in london so it was a catastrophe now that i say enough that is three years the only thing good about it is that there was enough gumption on the street for bands to start singing protest songs and you know this fed into the punk rock revolution the greatest thing since elvis presley so that was the really the only thing i mean long after maggie thatcher is forgotten and that'll be about another three days after the you know telegraph stops crying. never mind the bollocks will still be a classic now pricewaterhouse coopers said oil revenues rose from almost nothing in
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the mid seventy's that's when she became head of the conservative party to be worth over three percent of g.d.p. about forty five billion in current money at. at their peak and one nine hundred eighty four to eighty five they are now worth around point five percent of g.d.p. so you see she had a huge amount much more than any of these governments have now in oil revenues with which to cut taxes to seem like she was you know that this was somehow unique that this was that she was doing it to be tough and hard and she wrote a bubble she wrote a bubble in oil and credit there was a credit boom we've hit peak credit in the world the global financial crisis is the result of having hit peak credit we hit peak oil certainly in the u.k. they hit peak oil a couple years ago they're in a rapid decline as is many of the big oil fields around the world there are rapid decline so this economy here in the u.k. is going to be saved by the crash of the british pound and that will help export
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markets know their exports do not account for enough of a percentage of g.d.p. to matter there as the pound crashes as a result of it in peak oil and peak credit exports are not going to improve seventy percent of the economy is services read retail read consumption so just people are going more into debt to feed a bogus g.d.p. that's crashing and the government is too lame to tell the people the truth that because of peak oil and peak credit this economy is totally screwed and without a real radical transformation the standard of living in britain is going to crash so well peak oil came first because if you look around the city of london you see a lot of build and what is who owns all these properties well it's not this neo liberal notion that you could just become a genius and you know there are very few googles of the world but there are the oil billionaire us from around the world are this is what they're where their money is coming it's the qatar royal family it's the saudi royal family it's the russians
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this is the money that is coming in here it wasn't some miracle magical deregulation and cutting taxes and this and that that created that wealth so this is what sustaining it now and now going back to. all of this this five hundred billion pounds that the u.k. could have had if they saved some of their money from the north sea oil reserves john hawksworth from pricewaterhouse coopers said to a significant degree the money has effectively been handed back to this and other generations since the early one nine hundred eighty s. to spend or in many cases to invest in housing or other assets so that's the other thing that she bequeath to the nation why you want to out run your debts before they come due is that the more more more more it's all about speculation forget all that stuff don't don't remember it don't even know where your wealth comes from just speculate away keep on adding debts and if your price of your assets are rising that means we're getting wealthier but the banks in the u.k.
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were making a lot of money during this period deregulation by financing the oil extraction exploration business this gave them the collateral then allow under thatcher's programme of allowing people in public housing what's called council estate housing here to buy those flats with borrowed money from the bank at reasonable rates that was being underwritten by all that money coming in from the oil industry and now because the oil has run out and because credit is scarce and no matter what the bank of england does we've hit peak credit now you've got also the problem of having hundreds of thousands of units where people who do honest work people to do actual stuff that people need to do they can't afford to live here anymore so they're out of the picture so the services are crashing basic services and one of the left so what are they going to do with the n.h.s. which is the public health care system in the u.k. we're going to privatized it are going to sold off the private developers will destroy it like the glazer brothers who destroyed manchester united they take money
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out they load up with a billion pounds of debt if you know the glazers run national health how the glazers run the transportation system american strip mining you know it is going to come in here and just destroy the country more take all the money. now thanks to deregulation of maggie thatcher are you pretty stupid but she started this big bang across the world so this whole notion of keep on extending your debts make them go longer longer longer further out the maturity happens and so let's look at it another story in the headlines this week just keep dancing introducing the ninety seven month auto loan so the average price smacks of a car in the united states has gone to thirty one thousand dollars up three thousand dollars in the past four years but the monthly payments for those loans to buy that car has gone down to four sixty why because interest rates have gone down but also because the maturity is extending over and over and further and further out into the distance so in the first quarter of two thousand and twelve the average term of a new car note stretched out to sixty five months the longest ever according to experian the company said that seventeen percent of all new car loans in the past
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quarter were between seventy three and eighty four months and there were even a few as long as ninety seven months four years ago only eleven percent of loans fell in this category so people are taking out car loans and years welcome to afford to officers low low rates because the banks of offer those low rates are borrowing money on the wholesale market which comes from the global banking system including the i.m.f. and the e.u. and these other global banks who in turn extract austerity measures from the people who are being treated like the good leg and the new financial hole cost in greece and cyprus there are the prisoners of the death syndrome so that american big fat stupid americans can buy a big fat stupid cars and drive down to the big fat stupid donut shop to get even bigger fatter and stupider meanwhile people in cyprus and greece are dying in the streets to support that mentality and people like margaret thatcher made it all happen because she's a frickin idiot yeah and they say they do mention that people are in negative
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equity essentially on their car for a very long time and you mentioned europe so let's finally go to this headline portugal considers paying public workers and treasury bills instead of cash the. government is considering a plan to pay public workers and pensioners one month of their salary and treasury bills rather than cash after high court ruled out wage cuts so here you have a situation where as your head says this plan makes perfect sense because with every central bank openly monetizing its debt it is effectively made debt and cash equivalent so this is that that myth that sort of world reality that margaret thatcher created that we don't know where wealth comes from anymore that the notion is just to extend your debt to as far as possible. and hope for the best or they can pay them as such the iou is now in california pay the workers an iou is now people are being paid and i use the treasury bills and i owe you it is the
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definition of monetizing debt it's what the french happened in france leading up to revolution with the acid not what it was just basically debt based currency and of course the after that was the revolution stacy ever thank so much being on the kaiser report thank you all right don't go away much more coming away i'll be speaking with jan squirrel's of the real acid company. couldn't take three. three. three. three. three. old freeboard video for your media project free media oh don carty dot com. that's a meteorite oh. ten
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tons kowtowed through space towards russia. with the power. of a nuclear bomb. should you open sky full on r.t. . international airport in the very heart of moscow.
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welcome back to the times report i'm max foster time now to turn to jan scales of the real company general come back to the kaiser report. all right jan your latest newsletter from the real. companies that the biggest most surprising theme you see the real asset market these days is where you see well we've been late to different things we're talking about and this is the real asset report that we're going to release and it's coming out today and we've just some great research you've been asking our clients my readers various different things you've also got some kind of longer research pieces in there my biggest personal surprise i found is i started thinking about writing this back in january and february i did quite a bit coy you know i wrote quite an extended piece and now everyone knows about that corning and i wanted to see you know they would be on the front of the f.t. i think the telegraph had at least five articles on big corn so this is something that my biggest surprise i found just real company big coin is
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a real asset well if you ask are we here on our side at the moment on a pole as we speak that quite right if you go forty percent of the moment last time i looked to you they love bitcoin a coin that's quite a tiny percent like i think about buying and then even greater percent do you like it i think that it is in a bubble. no one is neutral on big corn which is really interesting so people have quite strong opinions which i think he does nicely on say in a bubble someone said to me you know it's a bad market when you're in it and it's a bubble when you're not in it so you can see that means how he goes people think it's a bubble well but in the bubble question aside for a second a lot of people of course want to know what the intrinsic value of a big colon is in gold and silver there's a strong case to be made that gold has intrinsic value it's been used as money for thousands of years and people argue that it should be the basis for the currency of
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modern societies whether in the u.s. or the u.k. instead of the money that we have now but when you look at big coin there's a split also because some people argue that it is a hard currency it is an asset it does of intrinsic value and some say it doesn't what do you think well this actually comes back to you because you told me less than the other day about i asked the exact same question is there intrinsic value in your answer to me is the mathematics that lies behind it mathematics is thousands and thousands of years old and it's the basis of out of any monetary system fundamentally and this is something that after speaking to you i came away and i thought about it and one of the things we have in the in the last that report is a look in the debasement and just looking back at that that makes you realize that you know mass is very intrinsic to a currency system and the mass it sees behind and basically what you have in the system should be existing wherever your your banking ends and that is very basic math and that's how big coin work so i personally out warming to this belief that there's an intrinsic value i think if i was answering the poll at the moment i would have i like it but i haven't bought it yet curious i'm curious yes talking
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about where the big coin is actually just a big con and i'm in the middle i'm curious as to the reports coming out today today and i'm in the i'm in it you're in the report great story. senate i minutes what more could you want from a report ok let's go back to gold and it's central to the currency war so how is the gold. playing in the at the moment well i'm fine it's very interesting again it's something we looked at we've got is really great in for graphic called the world is talking about gold you know because everyone is saying the gold is the bull market is done because the price as a proxy for this year ninety seven countries in this great into graph we've got are all talking about gold central banks are still buying gold you know i was just writing about brazil they bought i think they added ninety cents there is. more gold than anyone else in the south america china still talking about i mean gold so it's still this currency war still playing out and people are still people bank
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central banks in countries are working to protect with gold how much break it down how much they spend on goal well this is again another in for graphic we have a look at the percentage income which is spent on gold by various countries the countries that mainly covered in the world gold council report so looking official figures that were spent on gold whether investment gold or jewelry we break that down according to what the average income is in the countries and unsurprising may you know i didn't find a particular uprising is the wealthier countries there in the list spend the least amount of gold say france and the u.k. for instance spend less than one percent on gold switzerland is the i mean we european country in the list is spends more than one percent on gold wire is vietnam and india spend to me i believe quite high proportions their income on gold given what low incomes they have say. the number is between eight and nine percent for instance but is trying to clamp down on that right they are and they're not the only ones in general so trying to i don't i post in play in my research and what i'm hearing this doesn't seem to be having a huge impact on goldman personal gold investments and from people within these
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countries i think there's been a huge surge in the black market and i know they've tried to clamp down on imports from countries such as thailand but if people want to get a hold on hold gold that's where they want to put their savings and that's where they're failing so that's the safest that's where they're going to do it i'm going back to big point this is why because it's a great because it gives them access to putting their savings in something which can be. controlled by the government and at the moment isn't clamped down on by the government which is a complementary player between bitcoin and gold in terms of being able to bypass restrictions on buying gold in a country like vietnam so the countries themselves in the central bank level are buying gold but they are in forcing some restrictions on the retail investor of the citizens of buying gold so he introduced bitcoin into the mix and you can be buying gold outside of government control but i wanted to return to this idea the french citizens bought the least amount of gold. talked about a little bit what's your thought there well this was in two thousand and twelve given what's happened with cyprus and there's some really shocking figures coming
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out of france the last couple of weeks president along not having a particular state of play is that where and so i would be really interests. you know maybe by the end of this quote by the end of the year to see how that investment picks up in france because i mean the countries basically insolvent you know it's a dangerous place to be keeping your money and that i believe so the next ones that we're going to be looking at so i think that number will change last that we saw last year but having said that you know here in the u.k. where you and i have talked about before we're also in quite dangerous position we're seeing the same numbers here and people you talk to on the street don't quite make that link kept in what's happened to that money in the banks and what they could be doing at times is gold say will be interesting to see how it plays out ok people's money in the bank this being confiscated but the government and the media are calling it a bell in or there they have other euphemisms for this. they are not copping to the
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fact that they are simply taking money out of people's accounts because the programs of printing money and programs of research is ation and all kinds of funds are being created across the eurozone to try to roll up the debt an extent the maturity that we've seen over the past few years these are simply not working they're not they're not creating any meaningful growth at all. employment numbers continue to crash wages continue to fall and now you have a situation where people are just reaching in and grabbing money out of people's bank accounts over the last a company or you allow give people the opportunity to buy gold as a way to protect themselves from this but still even at this late stage in the game people seem tone deaf to the facts that their wealth is being stolen i do you agree with you and i think it's still a major problem but just from our perspective at the real asset company we have seen huge increase in deposits of people wishing to buy gold just in this last
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quarter that we've seen and i think our last year in february you know we had already looked at doubling our figures in january now we're looking at the same for the following months so there are definitely more people coming on to it curiously while cyprus was a huge push i also think what happened in february the pound so quite dramatically on back on the back comments that king said that something got people thinking about the value of their money but i do agree that not enough people are thinking about this and i really do think that even though cypress is actually quite close to home it's still seen as a completely different approach to an economy different people in the way that they manage their money and their respect for the tax system we we still differentiate ourselves quite a lot because we know in the year i've done from the respect because we know in the year we perhaps don't see ourselves as in as dangerous position i think another aspect is because there was a cap on how much money was being taken taken out of bank account so i think one hundred thousand year is not a huge number of people that we come across have one hundred thousand yuri's in
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current accounts or you know in any account and they said now they may be just saying well we have to be a little bit savvy with where we're keeping our money but they don't realize that if you can take any amount of money from you know that amount from a bank account into any amount from a bank it's a slippery slope to say well we're going to keep the insured amounts protected we'll just take the insured amount and then they'll come back and they'll say all as they're doing in the pension accounts down the united states are saying they're going to keep. app the amount of money you can have a tax free pension a chemical capita three million dollars or so these things are encroaching now when i'm you know you mentioned yes we are here in britain and what i'm talking about gold and silver and i'm on twitter the most common response i get from people is they say well you know silver is great but you know they get charged that they could charge a value added tax for silver well that's not the case if you buy with the elastic i mean as i mean if you take out the bond system if you keep it within a volt. take delivery of it but if you keep it within a volt then you don't pay fast ok so there's if i go down to the shop and i buy
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a silver bullion coin i'm charged bat but if i go to a real asset company that's not the case but i'm not a tax advisor so if you're not giving tax advice now but that just happens to be the lay of the land when it's kept within the volt system as offered by the real asset company then you don't say oh no so far from good you know now in the u.s. record sales recorded of silver by the u.s. mint are you seeing that i personally have a nice assistance or ask somebody like i say since since january fourth in the pound and then cypress it seems that people want to be buying gold disquiet surprising because so it's also you know quite significant i need think that people would also be seeing this as a buying opportunity i'm not just sure why this happening i don't know if it's because people still while it is still see as this is an industrial mysore maybe they're concerned if the economy is floundering them is not really it's great. but i where i'm i said we haven't noticed as much for pick up and so the moment it is much there ever was but not as dramatic increase as we've seen for gold and
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particularly for gold to be stored in singapore is where we're really seeing big surge in demand and you also look at those trends as well where people are storing their bullion and so that's that would be another trend that i'm picking up on is that people are now looking at singapore as a destination that they find preferable wise that we found in our research that was mainly our american customers that we're interested in stirring in singapore. and it was because they basically were disappointed and fed up with the way that. information they are us and i think i said before if it's your gold it's your gold keep it wherever you want to keep it and it shouldn't really be anyone else's business as long as you're not breaking the law so finally let's just talk about this idea of government encroachment because governments in the u.s. as you mentioned they were active now in getting the swiss government to comply with u.s. law and the u.s. is now introducing legislation around the world to they want banks around the world to comply with the u.s.
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and but it's not just about tax taxes at some point it's about government. seizure of assets i mean this is like we saw in venice well we saw it in argentina we've seen it down cyprus we've you know this is when governments go bananas they just start stealing money do you think that's going to come to that here in the u.k. where you are sometimes a bank account yes i am i don't think if i was to say that i know nowadays it's going to happen and how naive because you can't believe that walking around going stephanie going to happen no one no one saw it coming if anyone saw it coming there would be a bank accounts be dipping into so i think you can write off that that is never going to happen there's always that possibility once happened somewhere governments wheezes an example to you somewhere else so i don't really think people should be that ninety's they should just spread their wealth around keep an eye on what's going on make sure that they're fully informed where their assets are don't ever seem something weren't happen because we look at all that events in history where
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we've seen things that happen and then they do a fair point all right just go thank so much for being on the kaiser reporting. that's going to do it for this edition of the kaiser report with me max kaiser and stacey her my guest jan squirrel's head of research for the real acid company in london if you'd like to send us an e-mail please do so at kaiser reported r t t v dot are you are you ready for the truth and so next time. you know how sometimes you see a story and it seems so for life you think you understand it and then you glimpse something else and you hear or see some other part of it and realized everything you thought you knew you don't know i'm tom harpur welcome to the big picture.
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