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tv   Keiser Report  RT  April 18, 2013 8:29am-9:00am EDT

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well then how can italy avoid the same fate or greece for that matter and knew when to face innuendo well yes ben bernanke and the rumor and the scuttlebutt is that they may end quantitative easing they may end this process of printing money and buying bonds eating their own vomit as it were but that is in possibility there is no exit strategy ben bernanke he will never end quantitative easing this will all end in a massive currency devaluations against gold everyone knows that who has a lot of money the people with the most money know this that's why they were buying lots of the gold as it was being coughed up puked up at the bottom well for every seller there is indeed a buyer so somebody was buying big time during these record sell offs. but it was also says that all these european nations are going to capitulate somehow people think that italy is going to hand over two and
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a half thousand tons of gold. but of course as soon as this was going on as well as everybody saying well gee cyprus is going to hand over its goal now is going to hand over its four hundred million euros worth of gold which was worth three hundred thirty million euros worth of gold by monday a few days later so of course you can have to give up more and more and more and at the same time the bailout costs are going up so tweet from c.m.d. see the rescue of cyprus has just increased by another six to seven billion euro steinbrück tells c.n.n. b.b.c. world well it's interesting that gold is a factor in these bailouts because as the gold price moves around it changes the calculus on the i.m.f. and these other big global banks on their ability to determine what i'm number of dollars and yen and euro they need to print to simulate this so-called bailout which is nothing more than a modern version of occupation it's a colonization of cyprus a colonization. in europe by central bankers but the point is this gold is now
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being used as a defacto global gold standard right now gold as it were already back going to gold back standard the daily price based on paper manipulation that's not the big story the big story is that the central bankers now have to calculate every single day the price of gold into the figuration how to take over these countries and impose their imperial mandate and it's already back its beer well you're also learning a very valuable lesson as an investor because they're not interested in the dollar value of the yen value or the euro value of the gold what they want primarily is ounces they want to accumulate ounces and in the case of central banks tons whether that tons of cyprus gold is going to be transferred to frankfurt or new york tons of the accumulation is of many tons as possible from italy from portugal because what's going to happen is we have the end of one empire and the shifting of power elsewhere some say china but it's certainly shifting east and you want to have the
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most tonnes not the most euro's worth of gold you want the most tons of gold right well look at the dynamic here on one side of the paper bugs you've got joe wiesenthal of business insider you've got barry ritholtz over at riddles dot com who are talking about the end of the bull market in gold ok they're on one side of the equation here is the other side of the equation a billion rabbit indian people almost stampeding down to the gold shop to buy more outs of gold i have got my money on the billion indians well let's look at what else is happening as european nations and the u.s. and all these debt bombs explode wealth tax to pay for e.u. bailouts wealthy households would face new taxes on property and other assets under german plans to prop up the struggling euro zone so senior advisers to chancellor angela merkel these are called the five wise man you might call them the five wise guys as we would call them here they have come up with a new. plan and they think that because the rich can just transfer their cash
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anywhere they they said to help everybody of course is they're going to go after assets the capital which like property something we've talked about here is that's one very huge downside to property is it's a sitting duck there you can't hide your mansion on the coaches there they just take it they tax it so this is what they plan on doing instead of taxing cash european union government should in future target property and other less mobile assets for example over the next ten years the rich should give up a portion of their assets professor both in your set this is professor peter both finger one of the five wise guys i think the key word in that statement is mobile this is why the sale of mobile homes skyrocketed across europe merkel shows up just to take your house just turn the key in drive away there you go. let's go to talk of walk you over there in britain sort of ok let's go to poland builder of poland wow this sounds remarkably similar to something that happened
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a while ago well anyway getting back to assets in the form of real estate are now vulnerable as we've been saying all along so we've got some major threats to real estate number one is confiscation and it's interesting that germany is now playing to type by becoming very belligerent in their confiscation of wealth across the euro zone oh i wonder when that ever happened again so some analysts say the reason why they're bringing this up is and in particular they mentioned spain and they're all these four hundred thousand brits for example own homes in spades and they're targeting they think that spain remember they took a huge bailout to rescue the banks now they think they're going to need another bailout to rescue the government so in order to pay these bailout debts they're saying they're going have to tax all those properties we don't know how much all of the major institutions of the i.m.f. and the world bank that are orchestrating the bailouts of these individual countries let's keep in mind they themselves are bankrupt. they themselves have to
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go borrow money from themselves essentially in accounting fraud to make it look as though they're solvent but in fact they are bankrupt and so you do have this massive implosion happening across the world in all markets and meanwhile the global g.d.p. has been revised downwards again and again and again there is no growth you know the other thing that one has to look at when you see the sell off in gold you have to wonder ok. is it all really getting better is they do not need gold is ben bernanke e.r. is the bank of japan are all these guys like in control of everything x. or us advisor says be o'jays a massive easing to back fire the bank of japan's huge bet by boosting quantitative easing won't turn the economy around in this instead sending the nation toward the fall. of maki former advisor to billionaire investor george soros so you know the bank of japan is now doubling their monthly debt purchases to seven
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point five trillion now in which is seventy six billion dollars almost the same as the u.s. federal reserve on a much larger economy so he's saying that this bond issuance is going to cause it could lead to hyperinflation he said because they're also seeking to expand their monetary base to two hundred seventy trillion dollars well japan is the place to borrow money at zero percent interest to speculate in all these other markets around the world that's the role it's played for twenty five thirty years now japan has been the go to country to borrow money at zero percent to feel all kinds of interest rate arbitrage scams and all kinds of leverage leverage hyper leverage derivative scams and and so they're going to continue to play that role that is acting as a black hole of debt sucking the global economy into that debt including the i.m.f. well here is george soros is former advisor to keshi future maki he likens it essentially to kamikaze so by the way it was two hundred seventy trillion yen. that
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they seek to expand their monetary base not two hundred seventy trillion dollars though i'm sure they would love that remark he says about corrado the new head of the bank of japan he says carruthers q.e. announcement declaring double suicide with the government the b.o.j. will have to share the country's fate and default together there is no escape he says for a market crash in the future well the japanese monetary policy is a noble form of suicide just like in some other cultures and religions they have suicide bombers they they believe this is a noble form of suicide in japan they're noble suicide is to commit monetary harry carey and so they're going to make a religious statement it's become a religious statement for them to commit suicide on behalf of american consumers so for democracy says that they're going to have a market crash because of all the debt you can't have that sort of debt he says and stay solvent how much debt japan's outstanding government bonds bills and borrowings increased to a record nine hundred ninety seven point two trillion yen at the end of two
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thousand and twelve so just at a quadrillion yet quadrillion and well this goes back to my point that there is no exit strategy from any of these programs when there is this collapse and they're going to have to as a result of those currency war they're going to have to really calibrate all the global currencies again like a bretton woods type agreement and against gold so gold is going to be the benchmark against or against all these currencies as it has been for thousands of years and the indians know this and the smart money knows this now the international monetary fund i know they were out this week they downgraded global g.d.p. growth for japan in this article they say that they estimate the liabilities will grow to two hundred forty five percent of the nation's economic output this year expanding to a sixth straight year. he says about this things may look rosy for now us stocks rise but should we see hyperinflation j g b s we'll see a huge selloff. leading to
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a stock market crash so you know j g b's the japanese government bonds they've often had to shut down because there's so much volatility and the day said this is a unique thing going on in the world and despite this goal the selling off so we do see that the wild waves of friction and chaos of a new currency regime i've mentioned that before we have a shifting balance of power around the world and this is part of the chaos is part of it well last week the price of gold priced and yen had a forty year high and not a lot of people were aware of this it was this moment when the central bankers essential pulled out all the stops and decided to allow japan and other countries to print now a quadrillion yen or a trillion dollars or euros and to sell into the market these naked contracts that are essentially counterfeit contracts but it was that that was the signal to them when gold hit forty year high in the end that was their signal to attack the gold market with hundreds of billions and trillions of dollars with the paper contracts and of course that just means that the indebtedness of the world just increase
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substantially that means that the central bank's going to print more money that means that their exit strategy is now way way way to the future it's an infinity into the future there is no exit strategy and in the joke is that bernanke you on a rumor that he might end quantitative easing bernanke you will never end quantitative easing it's impossible it's like the sun coming up in the west never ever going to happen he says it purely to manipulate prices says you never thanks so much for being on the kaiser report thank you max stay tuned for the second half oh whole lot more. do we speak your language i mean some of the worn out of the. programs and documentaries and spanish. do you. use
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international airport in the very heart of moscow. welcome back to the kaiser report time our turn to ed harrison have credit write downs dot com ed welcome back to the kaiser report good to talk to you max you are
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the macro the macro man in washington we come to year for the big macro picture you tweeted out recently the question why are germans poor question marks are they poor a question mark and if so why tell us about this you know there's a study that came out on household finances of these be released of all the euro nations spain italy germany and so forth the interesting bit was the median wealth there are actually the mean wealth in spain and it allude was higher than it is in germany so you're asking you start why is it then that the germans are billion out of the spanish and italians when in fact there's a lot of wealth there and the reason really is the way the world is distributed but there are four reasons that households in germany are relatively poor one is that none of their public pensions are counted as part of their assets they don't really have
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a lot of private pensions what the second reason is that. in germany there are very house who are only forty four percent of germans actually own a house whereas it's more. like seventy or eighty percent in places like italy and spain in addition to the east west divide i mean really if you look at the pro capita income in eastern germany versus western germany is a huge gulf still even twenty years later and then when you add in the fact that fertility rate in germany is very low it's the lowest in the world along with italy and jerk and japan rate there that gives you a sense that household the number of members per hour so is the lowest in the e.u. that's a huge factor in terms of when you think about well throughout school and the final thing is that east versus west germany is really still today two different countries because the pro capita income in eastern germany is much lower than it is in western germany that deftly pulls the number down so i think those are really
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big. things in terms of why there's less wealth in germany in the household sector than you might think it would right i saw the report that the households and italy and spain were worth more than germans and this set off a firestorm and in the media and but you know it's not really an apples to apples comparison as you are describing there the you have a lot of worth tied up in real estate these countries but that real estate is now crashing plus you have social cohesion in these countries is falling apart unemployment is skyrocketing whereas you have very high employment in germany at some point the numbers don't really tell you the picture because in germany you have high unemployment you've got social programs that are funded in a surplus so it's a really a good comparison it just seemed like a waiter rile up using the media and what you think it definitely is a moving target i think the netherlands is a good example of what you're talking about because you know the netherlands is low
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they have low per capita are actually lot household wealth but they also own the homes more than the germans it's just that they have huge mortgage debt in in the. no listen that's actually going down so they're a good example of how it's a moving target you can expect and spin for its spin in slovenia where the two countries in the e.u. in the euro area that actually had the house prices were falling the most in two thousand and twelve so you know that household wealth is going down in spain all right let me let me cut in here for a second because you know the what we're talking about i think is very important and you can apply it over a couple of different situations and it's really also a question of what policies do you want going forward do you want austerity policies or do you want keynesian kind of money printing policies now the people down in the south with high wealth for household they are the beneficiaries of speculation in the house printing house business that that comes from all this
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money that's floating around in the system where isn't germany it's already practicing what you could call austerity and a trade off is between jobs versus speculation that here we are in britain and the question is with the new central bank coming in the new head governor mark carney should they go down the austerity route or should they go down the money printing route it seems like the question is do you want jobs and wages for the population or do you want house speculators do you want market speculators do you want bond speculators but you can't have both you have to pick what what's more important to jobs or speculation where you think of my analysis said let me see two things the first thing is going back to the whole concept of there being differences in those differences not actually be meaningful think about in terms of complication you know a lot of people have been talking about that necessarily but there is a lot of wealth to be out in spain and italy you know if you're talking about
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austerity obviously at some point in time the government's going to think to themselves really we want to get at that well that's money that we're now. that we're not having access to there's no reason we're still bankrupt when that was sitting there i think cyprus when you saw the complication of the attempted confiscation of insured deposits that's telling you where things are headed in the european union now with regard to the paradigm of money printing or austerity really it's i think that related still it's not just about the money it's about the central bank monetary policy it's also about fiscal policy and it's also about you know structural reform so you don't necessarily have to have all three you can mix and match however you want to be it doesn't have to be that you print money if you if you have some sort of fiscal program and you're making structural reform and the same goes in the reverse but i think that the paradigm now is that we need to print
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money and come in countries that can print money because you know they're the same level for their central bank and their national government they're going to do that so mark aren't going to come in and you know that there's going to be money printing harrison you are fluent in german and fact you're a former u.s. diplomat to germany i know you read the german newspapers sell talk a little bit about what they're saying in german the german people about what's happening in cyprus what's your insight there i was in germany for the last two weeks just before this i had family in germany and i was talking to family members you know i read the german press accent or i think the general thinking here is this is that look you know. it's not like everything's easy for us we were called the sick man of europe ten years ago we had these hearts reforms we've had a lot of difficulty you know we had our east west property bubble and we're getting
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over that but you know we've made the other disciplines surest to crack down and and if you know now that other countries are running into trouble as well they have to. buildout and we expect the exact same thing to happen for them so you know if we're going to give some money and we expect there to be so much some mean obviously some sacrifice ok so so so westerman e r germany is looking at the euro as a repeat of assimilating east germany into their economy and this point is not lost on everyone else in europe who believes that germany feels it's their duty now to assimilate the rest of europe and there's a lot of antagonism now like germany you know get out of our face we don't want us simulating us into your economy and germany is saying well other that if you don't then we're going to turn off the spigots at the e.c.b. and the troika and you're going to die from one of terry starvation isn't there some antagonism there. there is of nationalism some antagonism and you know there
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was east west. antigun isms you know there were the aussies and the bessie's and there are sorts of jokes accent and it's still are just certain to be even twenty years later so there's always going to be entirely as me have that but i really do think that the germans in general they really are they want to be good europeans they want your to be cohesive and they want to be a part of that but the problem of courses is that number one they have a certain way of looking at things and they basically think that the rest of europe should do it the way that they've done this or do it their way and then the second problem basically is that you know the germans of today are not the germans of before if you think about people of color and schmidt's and these other german politicians from the seventy's in the eighty's they had a legacy in terms of the war that was the war guilt so this big today that your politicians who are running germany they have nothing to do with the korean war
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germany or nazi germany etc that that sort of thinking is not their thinking now is look this is sixty years later seventy years later this is a new era this is a new europe and there's no reason for us to feel guilt whatsoever you know we're the largest country engine in the e.u. and therefore we have a responsibility to step up to the plate before they were saying no we don't have a responsibility to put you know we are we're guilty we need to play a muted role but now there's a stronger germany when germany is stepping up to the plate and looking to take a leadership role that definitely changes the dynamics well i sound like you're in favor of the festival discipline that we saw as west germany assimilated east germany and but at the same time just a few moments ago when we're talking about washington d.c. and other economies it sounds like you are in favor of money frank thanks. is there . good does it because what's good for the goose is good for the gander or what's
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going on here as i was saying you know there are three different things this austerity there is you know there's the fiscal side the monetary side and the fiscal reforms my belief in terms of the fiscal side is basically that it especially if you have a if you if you if currency that's not convertible which is not really the case that you have in europe but if you do really you shouldn't have policies there's really no reason to target the deficit the deficit is the outcome really what you should be targeting is is growth and you should be looking to to smooth out over this cycle to have some sort of a policy that allows you to have maximum climate at all times and the deficit will be lower as a result of that if you have the appropriate tax policy let me let me jump in for a second because i just after saying that you've got three avenues to pursue and
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different countries would require different prescriptions unfortunately in these countries you have different lobbying groups and different ideologies off competing to get their ideology and their policies through they all think they have the best policy the reason i bring this up is because here in the u.k. margaret thatcher has died margaret thatcher there's a big margaret that there's a funeral there's a huge outpouring of emotion about margaret thatcher back in the seventy's when she assumed power she too had all these competing voices telling her what to do she took a survey very strong position for better or worse she took action so my question to you as a long term observer of markets and countries and politics what's here and we only have thirty seconds left unfortunately but it might be interesting what the facts are like to see how did it has a stack up in retrospect or thought. oh you mean that you're i think you know i have mixed views about her and i think that if you look at the u.k. thirty years ago basically it was like you know completely much more sort of this
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country everything was nationalized i think it was a positive thing that you that you privatized these parts of the country but at the same time you know you look at the financialization of the u.k. the enormous banking sector as a percentage of g.d.p. that's a huge legacy of margaret thatcher and i think that's a very negative legacy right ok well we're at a time so. we have to pick up on that at a future date and harrison thanks so much for being on the kaiser report thank you much all right that's all the time we have for this edition of the kaiser report i want to thank my co-host the gorgeous and talented stacy herbert i also want to thank my guest at harrison if you'd like to say i mean email please do so i can as reported our t.v. that are you are you ready for the truth and so next time ask either saying buy off .
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olympic gold. her mother lives. under the speed. of. her current. whitney. look. a little bit misleading good. luck. to him.
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to come out find him a little. political thanks bill.


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