tv Keiser Report RT November 19, 2013 11:29am-12:01pm EST
panic in the seeds of the i wander to my. good inflation every time again the money printing side streets we've gone down i wondered to myself hopes may rise with the market but honey you're not safe there so you run to the fed to the safety of the printing press but there's panic on the streets of comix schiller nasdaq of the l b m a i wondered to myself down the fia disco hang the blessed of bankers because the money that they've. done so much to ruin around low. blows of printers having to produce. the right more seeing what you got for me yes hang the printers isn't the first headline essentially global art market sizzles with one hundred forty two million dollar bacon sale the record breaking one hundred forty two point four million dollars sale of francis bacon's three studies of lucian freud shows confidence in the art market and that the very wealthy see it as
a safe haven for their money experts said. francis bacon cryptic. multi hundred million dollar sell andy warhol new record high because all the money that's being printed to bail out the banks is going into the art market so you have a zombie banks you have them in the u.s. you have them in the u.k. big story today in the financial press of the u.k. that these zombie corporations are thousands of them in the u.k. they're only kept alive by money printing the transfusion of calf but of course the necessity to continue transfusing cash to them is preventing the other players in this market from becoming active it's preventing competition from manifesting itself is preventing real jobs paying real wages to spring forward and to create a dynamic into them and into them in the marketplace but the art market however
is. taking all that cash and is driving it much much harder you see well exactly because we do see that gold and silver for example have not risen in price property prices have risen booming globally in all the major cities around the world these are the extremely wealthy the ones with billions and billions of dollars billions and billions handed to them by the central banks of the world at zero percent and they're looking for a safe place for their money to hop to protect not only from inflation but also from the mad crowds the angry crowds the peasants that come marching and so when you roll up your little you know bacon in a tube you know you're francis bacon golden so we're on the same side as workers and savers and workers savers gold and so over they all are being. put into an area of the economy where the cash is not flowing to them they are in
a you know like a gang green has set in for gold silver and workers and savers so they're not getting any of those cash unlike the seventy's where workers went up their wages went up and that would drive inflation into a. inflationary spiral that's not the case anymore this is been a business section they've amputated gold silver workers and savers and they've kept the cash for themselves and of course in the west the central banks own the majority of gold and silver certainly of gold in the east perhaps there's more of an equal distribution between the population and the central banks but a comment regarding this sale at christies was from our advisor todd levin says what we are experiencing now is a kind of melt up in the market is a combination of tremendous surplus capital and the need of a small band of culture high net worth individuals to invest all that surplus cash and assets that will appreciate now i also want to point out that bitcoin has been
on a tear it's over six. dollars has soared to over six hundred dollars and these are the un manipulated markets i think you know the central banks and our politicians like to control our perception of their ability to control things well big going as a currency that unlike gold and silver is a government interference and manipulation so they must keep gold silver workers and wages and savers they must keep them on the sidelines in order to finagle this wealth transference using the central banks to transfer all the money that would've been made of gold so for savers and workers to the top point one one one percent of the population so that's exactly correct it's like irrigation sun even financial engineering its financial irrigation where they just let the money flowing into the pockets of this very few folks well i also might say as they're saying it's a melt up these are signs of hyper inflation not just inflation these are huge
leaps in prices and the luxury art market and i mean this particular auction at sotheby's at christie's raised nearly a billion dollars this is like a light blue way all records for before the a few days later there was this auction at sotheby's warhol crash steve cohen's richter lyft saw the sale so andy warhol led saw the biggest option as the pop art icon silk screen painting silver car crash double disaster sold for one hundred five point four million dollars in new york is one hundred five million his previous record high for an andy warhol seventy one million dollars the subtle subtext there silver crashing by canvas with a few splashes of paint for one hundred million dollars corsi the fed and of course all of the money is coming from these new technology entrepreneurs who let's face it google facebook apple they work for the n.s.a. the n.s.a. subsidized by the u.s.
taxpayer and that they pay them back with click fraud i think up to. up to thirty percent of the revenues from google for example are from government sponsored government underwritten click fraud so at the sub the reason option we were witnessing hyper inflation and art prices there was an investor michael ovitz the former head of c. a which is the creative artists agency after that the head of disney and he was there and this is what he had to say about what he observed at the panic in the seat of the b.'s he said i am an art collector this is not about collecting for a moment last night i thought i was in the commodities market so you think of the commodities market the pit there with people screaming and shouting and yelling and colored jackets like this all and it's all being come out of dollars financial as a securitized whether it's art or people's kidneys you know there's a huge growing kidney market people showing that getting on the open exchange of people to sell their body parts to get enough money to go buy an andy warhol
perhaps but i mean my goal which of course being from hollywood a lot of people do sell their blood to finance movies or they'll sell getting to sell the movie so it's done i think for him however if there is total meltdown if there if this hyperinflation spreads to the u.s. dollar and it's overnight loss of faith in the dollar and it crashes one needs whatever wealth one can take on a plane trying to log suitcase full of gold it's extremely heavy the people at the immigration counters and tekken tend to notice you roll up an artwork or you have a u.s.b. stick with some point on it they don't notice that so much you're more likely to be able to flee to whatever safe haven you're looking for art has always been an easy way to transport large sums of cash this is true couriers who do nothing but transport rolled up multi-million dollar paintings around the world on behalf of rarely rich folks is been in business for many many years so that's. always been
the case but we see also this enormous spike in prices across the board for anything that would directly benefit those who are in the league with the central bankers who are working hand in hand with the folks to transfer this enormous amount of wealth meanwhile the poverty levels around the world are skyrocketing wages are collapsing purchasing power is collapsing and the social unease is increasing other than the art market where if you have one hundred forty million dollars to spend on a francis bacon you're ok and your you don't care what you spend here we see silver coin supplies buckle on fever pitch retail buys silver prices have dropped more than thirty percent year to date and demand for the physical metal has reached a fever pitch united states mint sales of the american eagle silver bullion coins have already hit a record this year that's over forty million ounces it's blown away again this
hyper inflation and demand prices are rising to reflect that for some reason you can ask yourself but even the monster boxes which cost twelve thousand dollars us five hundred coins and there those are people who are gobbling those up as soon as those come out prices so with the demand is an all time highs for silver and gold but the prices are not reflecting these the demand whereas the price for bonds and paper money is still apply i should say is an all time high and the prices keep going up so it's not only repudiates the idea of supply demand economics the more you create it the more the price goes higher the less the bigger the demand somehow the prices are reflected in the price i might add as well that even the e.t.f. in silver are adding record amounts of silver to their surprise record demand for they silver e.t.f. not so much for the gold they mentioned that while gold exchange traded fund holdings have declined to a three year low holdings and silver e.t.f.
record of six hundred fifty five million ounces as of. october thirty first now these are the silver liberation army these are the small guys who are disconnecting and disengaging from this corrupt system the same as the top bar by buying these francis bacon paintings and i want to bring this to a final a recap of what we talked about on our last episode of kaiser report where we talked about the banker in vietnam who faced the death penalty well he was sentenced to death over the weekend vietnam banker sentenced to death for fraud former finest chief and business associate to die by lethal injection for their parts and embezzlement of twenty five million dollars so the pair were among the eleven who were defendants in a nine day trial and they were sentenced to death this weekend but the interesting piece about this article talking about this death sentence case is that highlighted vietnam's efforts to show it is stamping out corruption in the face of widespread
public anger over the issue of corruption so the public. got angry demanded their politicians do something and the politicians have done something so you wonder you have to ask yourself you wonder to yourself is it who is responsible for jamie diamond getting away with crime after crime after crime after crime after crime it's a crime after crime after crime i mean the difference is that in the us of jamie diamond was sentenced to death and lloyd blankfein of goldman sachs was somehow figure out a way to get it on paper you know there's always a way to twist a nickel in the united states economy that there's no end to the fraud you say if you put one banker to death it just means a dozen more are going to figure out how to sell tickets to watch the hanging when i buy a ticket right away you know that would be the greatest thing the greatest christmas special in twenty years thirty years you have rudolph the red nosed reindeer and a hanging of jamie barry what's a great for the family you have to mince meat pie and maybe some crust jaimie kidneys do you know i mean give the kids and grandma they all enjoy this great show
up to. fifty. welcome back to the kaiser report imax guys are time now to turn to jim records author of the international sensation currency wars jim welcome back to the kaiser report thank you max all right i want to just i want to do something there's the news as translated by jim record ok first of all here's a story one point surely in dollars this is the amount of money that the banks central banks in the u.k. u.s. and europe did not have to pay out due to all of their artificially low interest rates so explain what this means to the people in real terms well you know the central bank will sit the each of these countries has issues debt of course the house is treasury issues to the u.k. government issues to the questions who buys it and normal market investors buy a put into those markets the central banks by to
a great extent when they buy it they they on the bonds and they are an interest on that so they have zero cost of funds because the restoring currency that pays no interest and they're making money on the asset side because they buy the bonds so the make very large profits at least in the with the good the fed the fed gives that money to the treasury so it becomes a sort of a twofer you get low interest rates which reduces the government's cost of borrowing then you get this dividend from the fed every year which helps to reduce the budget deficit but i was compared to two drunks you know leaning on each other so neither one falls down on the question what's happening though is that because the taper talk and interest rates are going up if you look at the fed's assets if it were a hedge fund it kind of is a hedge fund looks like a bad one if you march of the market the fed would be insolvent today with it would wipe out their capital their leverage to almost one hundred to one of this point again a very small decreasing acevedo wipes out the capital so now they're getting closer to the point where they're not going to be able to pay these dividends over to the treasury without becoming insolvent that will make the u.s. budget deficit worse and same phenomena in japan and the u.k.
here's a story cody hails recovery ok as unemployment fills mark already the new central bank are here and they. u.k. jobs market has not yet recovered as inflation has now outstripped wages for four years right how can you have a recovery and have this at the same time to market if you can i mean the real wages are going down if the cost of living is going up and your wages even if they're flat in real terms you're worse off if wages are actually going down you're much worse off so there's no recovery there are carnies commissaire other day about you know maybe we'll raise interest rates in late two thousand and fifteen in the computer business there's something called vaporware that's when you make an announcement there's no there there there's no substance behind it this is the central bank equivalent of vaporware where it's corning about one point it's going to be two years from now all the central banks are experimenting we're just getting pigs in their experiment at the idea that he can talk about where a plan is going to be in two years is nonsense meanwhile the bank of england said the housing market is supporting the recovery so far playing down the worries that the market is in a bubble they say the housing market's going to boost consumer spending as
households by goods to fill their new homes while rising prices enable them to borrow more that's on housing prices and spend more so this is entirely based on blowing a bubble and i wasn't well that's exactly right we have do us a publisher in stocks and housing so when they say a rising housing prices are supporting the recovery was the central bank money printing that's supporting the rising housing prices if that's not substantive that's not fundamental it's just another bubble that will come back down to earth at some point no one knows exactly when but you know maybe late two thousand and fourteen early two thousand and fifteen it's just another bubble and it was you have prices going up and interest going up and have to borrow more where how does that support consumption so people are over borrowed to begin with or trying to deal leverage they're not running out to bit of the price of houses now at the high end they are but that's not the real economy but they're defining growth as consumption instead of looking at let's say output as it relates to manufacturing right the way the way you grow is with investment consumption should follow investment so you make smart investment you have productivity you create value etc
that's how an economy grows and from that you get higher real wages and consumption the central bankers. backwards they're trying to they're trying to recreate the lending and spending debt and consumption model but there's nothing to support it except money printing here's an interesting anomaly in the market it's an art market as you point out recently one of your writings you've got all this money printing and the federal reserve bank and other banks a sigh causing inflation however we see huge inflation almost hyperinflation in a market that they don't necessarily care about that's the art market talking about what was the first one there are markets not going up the dollar is going down another is when people pay higher and higher dollar prices for art the art has intrinsic value it doesn't really change is the art it's the dollar that's going down so i pay more dollars for my art but you know in the u.s. one hundred year old family money is the old money you come here to europe these dynastic fortunes are two or three or four hundred years old when you talk to people have that kind of well the say well how did you survive you know the thirty
years war in the polina louis the fourteenth and all that and they say a third a third a third one third gold one third lamb one third fine art you know so when the wild birds burning down the village ten miles away you take your order of the wall you put your golden bag you right away you come back ten years later you put your go back put your art on the wall and you should be able to establish to his will to your land that's how you preserve wealth in the long run so at a time when currency is a destabilizing central banks are trashing currency gold is a part should be a part of the portfolio but art should be part of it is all also ok the price in the art market is moving up quite dramatically you have record record being paid for francis bacon triptych i think a hundred forty million dollars fine pink diamond going for six years. some blow up balloon animals from a some american. i forget frank somebody this is now a hugely priced so why is it not trickling down to gold market i believe you would
posit that because gold is a quote unquote alternative currency or a central bank asset or does. the job of. discrediting the dollar there's an interesting keeping gold prices suppressed and is this still the case and give us an update on that central banks care about call they don't care about ours so are the market big ocean make some headlines and so ben bernanke he doesn't wake up in the morning said jerry really got across the art market today he just doesn't care so there goes that somewhere in the same thing with other collectibles and even other hard assets they care a lot about gold gold is money gold is a reserve i said i was officially de monetized in one nine hundred seventy three but thanks to the french objected to the u.s. position it was never completely eliminated from the international monetary system this is why china is acquiring thousands of tons why russia has increased its gold reserves seventy percent a list for years they know that when the international monetary system collapses which it will it's collapse three times in the past hundred years one hundred
seventeen nine hundred thirty nine nine hundred seventy one these things happen next time it collapses southie end of the world but it means the major trading financial powers have to come together and reform the system so they can sit down at the table so it's like again texas hold'em how big is your pile of chips gold of the chips that's what china is acquiring a look china is purchased several thousand times in the last four years or they don't do they know something most people don't i would say they're not so the art market but it economic markets are sending a price signal correct that edict he can ignore or he can take that on board and understand where that's going to move you have recently said that janet yellen is going to incoming fed chairman to replace ben bernanke what can we expect from janet yellen well ben bernanke here to lady gaga janet yellen. as to miley cyrus and others she said well it's always more she's a trash your version of the the original although actually gaga has a little talent and i'm sure bernanke and you know i do but but the point is she's more more hard shell more model based she's going to print more hard shell meaning
that which the meaning i just mean a flexible ideologically driven ideologically driven model driven academically driven impervious to the real still look at our models no matter what the actual market tells are correct and it's not as much i love cheese like blinkers correct most keynesians to i mean the keynesian theory works fine in theory not the real world and neither does her brand of monetarism or her brand of monetary is but be that as it may she's a little let them eat cake like it is there out there with the torches in written places ranging societies collapsing but i'm sticking to my models that's right and you know doubly famously so let them eat i pads and i think janet yellen this is now she wouldn't say that of course but you watch her behavior look at her speeches look at her academic papers look at the people who are supporting her and she is fearless when it comes to money pretty bernanke he pursued you know going back to you k. in the late fifty's early sixty's how mcmillen and they're checking with a call to stop go policy the bank of england stop go policy binocular stop go
people talk about tapering the fed has tapered twice already they had one hundred percent taper at the end of q one and one hundred percent taper at the end of q e two it failed both times so we kind of know tapering doesn't work a yellen doesn't want to do stuff go shows you want to be ten they're just going to be go go right ok now a russian lawmaker introduced a bill calling for the banning of holding u.s. dollars in private hands i'm sure you've heard about this the reason being that the dollar he claimed was a ponzi scheme while it's unlikely to become law could such increasingly frequent public declarations against the dollar undermine faith in the currency the answer is yes so this is a minority party and russia it was introduce a probably won't become law but it's what i call straws in the wind if you're a legislator why would you even do something like that and there was some genuine concern. another the much bigger play going on in the world is saudi arabia feels the united states has betrayed them president obama is very close to annoying thing iran as the regional has him on in the middle east i talked to a expert is very plugged into the negotiations oh by the way six months ago when he
predicted on twitter a strike on iran i think i can fly i came up with a prediction that there would not happen so i won that particular twitter battle i must say well then let's see how it plays out the story of the strike may be coming from a different a different source from israel but but the point being obama is now ready to sort of say anoint iran as the reason i'm on saudi arabia feels completely betrayed this will be the end of the petrodollar deal where they take our dollars and we provide their security obviously we're undermining their security by promoting iran so there's an emerging alliance among all people so to egypt israel and russia and together their interest would not favor the dollar would favor you know their security in the security of israel it's interesting a lot of us is withdrawing you know the same power pours a vacuum there won't be a vacuum in the middle east will be filled by these new alliances house currency war selling in russia there is a russian language edition it's selling well i don't know you calling all this made and you know it was going on here or you know you think the instigator and i think
i was the first one in the opening pages occurrence who or which came out two thousand and eleven i was the one who said the fed might confiscate the gold belonging to other countries in new york and since then we've seen your germany and others withdraw their gold and so it's a lot of political issue it's what some of the netherlands so i think i might have contributed to starting that debate of hey where's our gold quick question you say that this is an alliance between saudi arabia and israel forming but isn't it fair to say that that alliance has been around for decades others been cooperation no one knowledge is that up the others been cooperation but now it's becoming more solidified yet if the u.s. deal so-called we're going to we're going to unfreeze fifty billion dollars and we're going to let iran ship oil and get paid dollars right now they can ship over you all they want. they cannot get paid in dollars or euro as they have to do work around suddenly they're going to be allowed back into the international monetary system this is going to put downward pressure on the price of oil they'll be selling their world or rand getting paid in dollars using the dollars to support their nuclear weaponization produces petro dollar which came about at the
collateral in america defaulted in an honest bond in one hundred seventy one called the gold and ratchet dollar relationship to saudi arabia america or mco that's now to put it in the process of falling apart those one saudi arabia the size of the u.s. doesn't have their back what interest is saudi arabia have in supporting the dollar i'm not saying this happens overnight max that's what i i said before these are straws in the way i look at the merging g.c.c. central bank based in riyadh issuing their own currency perhaps person or on that currency perhaps the rise of the s.t.r. perhaps a regional reserve currency in the in the russian periphery others in northeast asia and there are a lot of regional things emerging the brics are doing a lot of things as you know i'm not saying any one of these things eliminates the dollar overnight i'm saying they all point the same direction over a matter of years to the diminution of the dollars the global reserve currency ok last question was in your book comment new books coming out april eighth it's available for preorder now it's got a nice cheery title the death of money and the coming collapse of the mighty about insist on having knowledge base
a bit but in this time of the shot ok i razzed i'm generators i could be on the kind of remarks. all right that's going to do it for this edition of the kaiser report like to thank our guest jam records author of currency wars will be releasing currency wars two for the death of money in early two thousand and fourteen you can follow him a twitter at james g. records if you like to get in touch tweet us at kaiser report until next time ask. if you. know opportunity. to start to construct your. don't want to be bit gives don't want to be gangsters you don't want to be. they don't want to blow with no time a kid came be we can see. you just me because i was the right
in the hood. but i said. i don't want to die i just really do not want to die young young. in the future. to show willing about a technology keeping the most cool metro rolling. modeling in that makes me ways in the oil industry under a dream team of robots who places too dangerous for humans. who need unfold the latest news and innovations here and said no. we've got the future covered. dramas that truth be ignored. stories others refused
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a double bombing targets the iranian embassy in beirut leaving dozens dead and schools injured. i ask obama to bring my dad back to life. the u.s. drone war on terror is missing it's small. human rights groups reporting mounting civilian deaths travels to a yemeni village to hear firsthand accounts. this is all that remains from a u.s. predator drone strike right here in yemen that killed two suspected members of al qaeda but also civilians so in the loss of innocent lives justified in the fight against al qaeda stay with us as we report from one of the front lines in the war on terror. and also the real records for a virtual currency coin pics of nine hundred dollars.