china aims to have more gold than america so rob mcewen founder and former head of gold core now the world's fifth largest gold mining company believes central bank purchases could help push the price of gold to two thousand dollars he says china is out to have more gold in america and russia is aspiring to the same now you know of course china has officially a thousand tons of gold and if they want to catch up to america's alleged quantity of gold they need to buy a seven thousand tons well i'm going to go to mexico. as well yeah you know they don't feel right around the world or are for the first time. years increasing their gold reserves well let's move on to that mexican story because that's the next headline mexican central bank buys one hundred tons of gold as a result of mexico's purchase central banks sovereign wealth funds and other so-called official sector buyers are on track to record their largest collective purchase of gold since the collapse of the bretton woods system which pegged the value of the dollar to gold in one nine hundred seventy one yeah and peter schiff ma

you've been hearing for years from cheerleaders of gold and silver saying you have to buy silver or gold are going to lose everything to inflation well there is a grain of truth to that if you will hold your savings in u.s. dollars the purchasing power of that money will slowly be drained away is more money is created by the federal reserve here in washington but anyone who follows that up with and therefore you have to buy silver or gold or this twenty year supply deal hydrated food is well. trying to sell you something and while silver is generally continued its exponential growth curve in value that mirrors the decline of the value of the us dollar it had a rally recently and just last week jumped from about forty five dollars to forty nine dollars in two days before plunging throughout thirty five dollars where it was two whole months ago so here's what this looks like the recent increase we see right here followed by the big plunge and the slight correction now let's see ten year silver over ten years you can see the approximate exponential curve as it goes up and you can put a line

of gold line. well earlier i spoke to a man who has been talking about this for years carol selenski publisher of the trends journal and director of the trends research institute he told me why others are now only starting to jump on the gold bandwagon. this is happening you go back to the world bank they were talking about this seven months ago the dollar is collapsing jim rogers is right about bernanke you know with a real public enemy number one is it's osama bin burn a key this guy's devaluing the money in front of our all eyes look at wholesale prices today at producer prices just today that retail sales went up why because energy and food prices were going off the cheaper the dollar goes the commodities go higher the dollar isn't worth the digital paper it's not being printed on not to reiterate this too much in general but let's look around the world what's going on interesting indicator i think this year mexico got around a hundred tons of gold this is according to the mexican central bank

gold we have a little company called sprott money and it sells gold and silver coins we sell and way more dollars in solar than go and so here we are in a situation where the price is forty to one but the dollars going into it are almost there equal so i can't see the price ratio staying in the. strange all right now recently presidential recount up to that all time high of fifty didn't quite break it then a lot of things happened concurrently first jim rogers opened his fat trap and said that's over it was a hyperbolic move and this seemed to get the hedge funds to start selling silver but more importantly this is what i want to talk about because this there's a lot of chatter about this i want you to help me straight that's not for folks widely reported that you sold units of p s l v this is the physical saw over trust the it's it's not really an exchange traded fund it's an actual trust with actual metal in it many tempest as an indication that you had sold so or there's a lot of chatter about this what what exactly is going on there eric sprott well max that's totally the wrong i

to own gold. but we were still on the international gold standard until lyndon johnson took a soffit in 1968, and legally nixon repudiated the cold standard in 1971. maybe more history than you wanted to know. there are compelling legal arguments that this is not constitutional. i am a constitutional lawyer, called by the treasury department to testify before the gold constitute -- cold commission about the history of monetary policy. a long and rich history, and it is crystal clear whether you read the debates when there were writing the constitution in 1787, look up the notes of 1787, look up the notes of debate, and you can read it for yourself or go to the gold standard website and search their. there is a blog entry about that. one of the founders said that the -- give the federal government power of issuing paper money, it would be as alarming as the mark of the beast in revelations. they were strongly against this power. george washington wrote against it, james madison wrote against it in

urges gold back zim dollar so this is the reserve bank of zimbabwe and their chief dr getting go now is advocating for a gold backed zimbabwe dollar gideon gono yes well he made quite the stir when he introduced the one hundred trillion dollars i'm bob way note it was right for inflation now they're the first into gold back r.c. and here's the thing according to game theory which of course drives the global economy in this highly leveraged akaka world if one country goes to the gold standard there's going to be a lot of money actually going into that currency it will force other countries to go into gold standard both. hugo i remember once dr gono started printing badly before the hyperinflation that led to the hundred chileans of dollars on the central bank of zimbabwe's website they actually cited the u.s. fed policy and bank of england policy of quantitative easing that they said they were doing the same thing well their currency has now collapse and now they're saying ok well everybody's going to abandon the us dollar because we know because we copy them and look what happened to

mine you know and what happens next we implement gold we bring back the gold standard to the united states as it was you know until world war i and what changes here is there's the economic crisis hits our. well i think what changes is that are put handcuffs on central banks and i think that that's really what jim rogers and steve forbes and others are saying is that we have to control the amount of money we're printing right now as you said the dollar used to be reserved as or stated as good as gold and not many in the world think that right now in fact there was a phrase that our currency your problem was an old phrase and the world is not happy with the fact that they are holding a lot of our treasuries and it's losing value also christine the big fact is that we continue to add to our debt we're spending about a trillion and a half more every year than we're bringing in in tax revenues and that is only devaluing the dollar long term at goldline we talk to individuals that are concerned about their buying power and that's why they're buying gold as one way to move away from dolla

when we sold our gold e.t.f. we raised four hundred forty million when we sold our silver e.t.f. we raised five hundred fifty million james turk of gold money he sells more dollars of silver than gold we have a little company called sprott money and it sells gold and silver coins we sold way more dollars in solar than gold and so here we are in a situation where the price is forty to one but the dollars going into it are almost dead equal so i can't see the price ratio staying in this. strange all right now recently presence over got up to an all time high of fifty didn't quite break it then a lot of things happened concurrently first jim rogers opened his fat trap and said that so it was a hyperbolic move and this seemed to get the hedge funds to start selling silver but more importantly this is what i want to talk about because this there's a lot of chatter about this i want you to help me straighten this out for folks widely reported that you sold units of p s l v this is the physical silver trust the it's it'

we buried this rock filled with gold. and it took only seconds for michael to find it. >> it's like a dream come true. it gives you exhilaration. >> reporter: and that's why they are searching for more. the lure of gold has michael scouring the same area where the washington nugget was found. he got some very strong signals and that could mean more buried treasure. >> i think with our newer technology that the early settlers did not have we have new opportunities. >> reporter: before you rush to the mother lode it's not that easy to find. this team spent years pouring over historic materials and searching for geologic clues. >> reporter: you're using old maps and logic. >> and we went and looked at the accounts of the time, what some of the gold miners wrote in their memoirs. >> reporter: and it takes luck? >> absolutely. >> reporter: in grace lee, cbs 5. >> gives new meaning to gold digger. >> it's still there, roberta. they only got some of it. >> i tell you what they got today, a whole lot of snow. let's take you to th

and now china is buying more gold. how many thousand tons of gold to india and china have -- to india and china have and i understand that china does not want the dollar to be the reserve currency. how close are they to making it so they can switch to a gold standard? guest: the gold standard has not been taken up by the g20. the day before yesterday, the former deputy governor of the reserve bank of india published an important article in the hindu business line. it indicated the world is moving back toward the gold standard. there are wise thinkers internationally and another one is manuel hines who dollarized the salvadoran economy. as little as a year or two ago, the gold standard was considered kooky. it is rapidly becoming on a marble. -- un ignoreable. we are not sitting here waiting for high inflation. we don't perceive it that way. at least not right away. gold is just very >> tomorrow, a discussion on the 2012 presidential race. also a look at al-qaeda after osama bin laden with daniel green of the washington

that's my next headline gold farming in a chinese forced labor camp it's not physical gold you might think gold farming is actually they force these chinese prisoners to play multiplayer games amass and credits and virtual objects then the prison guards are forcing the chinese slave labor to hand them the virtual credits that they've gained in various schemes around the world whether it's war world of warcraft or farmville and hand them to the prison guards who then sell them for real cash right this is the beautiful thing about these. dollars farm bill dollars as i explained at the top of the show when you spend your free out money the a levels of debt in the world grow which has the effect of reducing your purchasing power it's called inflation you're getting poorer every day because you keep spending this money that's backed by ninety nine percent debt now as a dollar or a formula dollar is backed by one hundred percent of nothing and the more that you use time you spend on farmville or the more of the overall money that's in circulation is the base by a quantum leap more in terms

gold. non-sensical not economical nonsense well the machines these high frequency trading machines typically hold the stocks for two to seven seconds realize a portion of a penny profit and repeat the process over and over the pennies accumulate into astronomically large heap estimates of the unregulated secretive industries profits for two thousand and nine ranged from two billion to five point six billion in profits seven seconds or almost longer than thanks dominic strauss kahn to read some names there that's obvious there coming from max kaiser but we're talking about high frequency trading i want to say that these are as the article points out you know these are not something that a mere mortal can scoop those millisecond fractional arbitrage is so what sort of market is this where it's it's just machines trading against each other the machines are in charge as we've been warning about for quite some time and the people at these banks they don't actually work for a living they just com

proly oh manager and good frayne and she said quote the largest position in the fund is gold which we think is a very good form of protection against what could go wrong we were encouraged by the fact that a lot of central banks especially in asia are big buyers we think that's an underlying trend that's very favorable for gold that's right although grocers name phone owner of pimco. due to the way that that fund this charter that created that fund he's not allowed actually own precious metals but he's a believer in inflation if a hyperinflation so you would naturally think he'd be a buyer of gold so here is one of those satellite phones actually buying gold so now the circle has been complete pimco is pimping gold as he should be in this environment where the bond market will get creamed well there are also as gold and silver have corrected over the last two or three weeks and they've had big declines silver up to thirty percent there's been all sorts of shouting and screaming especially in the b.b.c. saying it was a bubble it's burst it's popped so what do these sort of people who d

well and this goes on to the other thing so gold as i said fell back here's the headline gold calling sales reaching one year high signal no end to rally in history so this is from bloomberg another big financial news service the u.s. mint sold eighty five thousand ounces of american eagle coins since may first is the standard and poor's g.s.c. i index of twenty four raw materials co nine point nine percent the last time sells reached that level bully on rose twenty one percent in the next year freedom is on sale as i explained on the show many times days there are in particular with the price of silver when it got up to the price of j.p. morgan's stock price but there would be a huge turbulence it goes j.p. morgan is going to defend that price because they've used their own stock to collateralized against naked silver shorts cells just like enron use its own stock to try to keep the walls of the door and then eventually collapses or. j.p. morgan stock will collapse to zero at some point so when it got to the price of j.p. morgan stock in the mid forty's then you had j.p. morgan pull

so here's one of the satellite phones actually buying gold so now the circle has been complete pimco is pimping gold as he should be in this environment where the bond market will get creamed well there are also as gold and silver have corrected over the last two or three weeks that they've had big declines silver up to thirty percent there's been all sorts of shouting and screaming especially in the b.b.c. saying it was a bubble it's burst that's popped so what do these sort of people who do you trust for example the largest bond fund trader in the world or the b.b.c. trust the actual people who are dealing with money day to day not the lackeys of to b.b.c. who are an extension of the corrupt government and after the hutton affair of course the b.b.c. lost all objectivity and they're in the pocket of those nasty number ten downing street operetta well and this goes on to the other thing so gold as i said fell back here is the headline gold coin sales reaching one year high signal no end to rally in history so this is from bloomberg another big financial news service the u.s. mint so

she's my gold coast's. richest speech now. now in the palm of your. question on the dot com. mission. could you take three months for charges free. range month free risk free stu's types free. old free broadcast quality video for your media projects free media oh don carty done time. magazine reports time now to go to boston to speak with an energy analyst gregor mcdonald of gregor dot com gregor welcome back to the kaiser report good to see you max it's great to be writing on your blog you write paper vs real exit from normal ecological economics and probably ballistic regimes in one chart wow you got all that in one chart the chart is the thirty year treasury bond versus the c.r.b. the commodity research bureau index tells about it tells us a couple of things first let's just note that since two thousand and two the u.s. dollar has expressed you are in dollar terms we're just in terms of. u.s. treasury bonds has lost about sixty five percent of its purchasing power against a broad basket of commodities and i just find that with this latest ramp up over the last two years in

gold is very difficult to find though it can be done. grace lee convinced a man who found a huge gold nugget to share many some of his secrets. >> reporter: hidden in the hills, gold, the old 49ers mined most of it but look at what they left behind. >> really heavy. >> reporter: it's called the washington nugget, weighing in at 100 ounces. we found this rock just to give you an idea of the size of the washington nugget and remember eight pounds, that's about the weight of a newborn baby. >> i screamed. >> reporter: fred helped auction off the nugget. he believes it is a one in a billion find and that's why it sold for $400,000, fetching more than twice the record market rate. >> the chance of finding big pieces are rare in nature. that's why its not likely we will find another big one. >> reporter: during the gold rush mining stripped this area. amazingly a few miles up this same channel one man found the washington nugget on his private property and this is his very first television interview. when you expected to find it you were think

out for their own rights to he's been doing his best to stop the patriotic act and utah goes for the gold money that is will have to fall molineux on to explain how this means the end of the mocker see that's a good thing long live the republic that is until the necessary evil of government is no longer necessary you're watching the atom vs the many. people. in case who are wondering you know we weren't just going to let this one go. yesterday i asked you the viewer if we should go down to the metro transit police department to press the issue or wait for the official report it was like the t.v. version of choose your own adventure and hopefully will be doing some more of that i had a concern specifically that wasn't being addressed in the investigation and so i caught up with metro police deputy chief ronald pavlik after press conference he was having this afternoon about a recent robbery at the largo town center met the station but i wasn't so interested in their failures to keep us safe as much as their success is in weeding out men and wheelchairs is there any plan to investigate the

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 but the fear of money prophylactic has popped causing all kinds of debt impregnation while gold stands rock hard baby all right stay sober thanks so much for being on the kaiser report thank you max don't go away much more coming away so stay right there. with prices. moving from funds to christians. who throw stones on t.v. don't. welcome back to the gaza reports time now to go to london and speak with many other leyland asset management ned old boy welcome back to the kaiser report good afternoon max let's talk about silver first second here you wrote a very interesting piece about silver price. in its 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 start talking about this i just thought that it was something worthwh

to own gold. but we were still on the international gold standard until lyndon johnson took a soffit in 1968, and legally nixon repudiated the cold standard in 1971. maybe more history than you wanted to know. there are compelling legal arguments that this is not constitutional. i am a constitutional lawyer, called by the treasury department to testify before the gold constitute -- cold commission about the history of monetary policy. a long and rich history, and it is crystal clear whether you read the debates when there were writing the constitution in 1787, look up the notes of 1787, look up the notes of debate, and you can read it for yourself or go to the gold standard website and search their. there is a blog entry about that. one of the founders said that the -- give the federal government power of issuing paper money, it would be as alarming as the mark of the beast in revelations. they were strongly against this power. george washington wrote against it, james madison wrote against it in

gold fell $25 to $1,515. one catalyst? word that george soros' big hedge fund is cutting back its position in precious metals. >> tom: and another factor in the selling? maybe new margin requirements for silver from the c.m.e. group. the commodities exchange has raised trading costs three times in the past week, making it more expensive for investors. and speculators. suzanne pratt reports on whether the outlook for precious metals is tarnished. >> reporter: listen closely and perhaps you can hear the silver bubble popping. having doubled its price in six months, the white metal is down 19% in the last few days. some experts say higher transaction costs for silver futures have left a huge gash in the bubble. but, others like precious metals trader mihir dange mahear dangay say the damage can be repaired. >> it seems like the bubble has bursted. it seems like the end all, be all. we saw below $40 today. i think you'll see it below $40 for some more time. but, in the end it's still a bullish commodity. >> reporter: silver bu

economy as good as gold. and a crude intentions on capitol hill this as c.e.o.'s from major oil companies get grilled over subsidies and tax incentives so if they get a public lashing from senators here's a question well anything really changed i was taught all my life. school that the united states was the greatest country in the world because if you just work hard you can be part of this magical middle class. and what middle class might that be the ones the american dream is now a distant memory for many living in the u.s. now the middle class dies in america it's growing elsewhere we'll take you to india to see the economic boom. it's thursday may twelfth and is dean for sally washington d.c. you're watching arts here. well if you ever heard the expression as good as gold well it's starting to take on more and more meaning these days as more people are talking about returning the u.s. economy to the gold standard now i know what you're thinking this sounds crazy a radical idea and it once was just reserved for seemingly radical people but things are changing s

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 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. 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

bullets two those are chavez of the gold gold is good for wearable stuff and ben bernanke you but i mean gold us a little expensive ok but let's move on to this headline because i'm going to prove to you that they're trying to keep you from defending yourself against currency collapse dollar engraver danger than the euro so this is axel merckx in the financial times and he says imagine a country that spends and prints trillions to patch up any problem now imagine another country where there is no central treasury meaning that bailouts are less easy and which has a central bank that is mopped up liquidity over the past year rather than engage in quantitative easing of course is comparing. and us and their dollar tree european area and their euro but only let me explain something about the dollar enjoying a bit of a balance recently tied exactly to the moment when i've been logged in and spectacle a stand simply guy pakistan shot violence film little love and huge american state sanctioned terrorist blood guts pentagon armed military conflict the military industrial complex. are you d