CW 289: Currency Collapse, Gold & Silver Markets, and Debt with Max Keiser from ‘The Oracle with Max Keiser’ on BBC World News

Welcome to Creating wealth with Jason Hartman. During this program, Jason is going to tell you some really exciting things that you probably haven't thought of before. And a new slant on investing fresh new approaches to America's best investment that will enable you to create more wealth and happiness than you ever thought possible. Jason is a genuine self made multimillionaire who not only talks the talk, but walks the walk. He's been a successful investor for 20 years and currently owns properties in 11 states and South 17 cities. This program will help you follow in Jason's footsteps on the road to financial freedom. You really can do it. And now here's your host, Jason Hartman with the complete solution for real estate investors.

Welcome to the Creating wealth show. This is your host, Jason Hartman. And this is episode number 289. And you know what that means. 290 is next and that will be a tenth show. And on tenth shows we go off topic and talk about something of general life interest. And for show number 290 we will have Sonja Arison, who is the author of 100 Plus. We're going to talk about the search for the fountain of youth and longevity and how we're all living longer and longer. And you know, I think that has huge impacts on our investment choices, very positive ones actually. And I think that's another thing that bodes well for us, owning income, property. But the downside of living so long is that we will outlive our money. And so we had better be planning for ourselves and be doing all the right things to make sure that we can stay solvent through a nice long, happy, successful and prosperous life. So that'll be show number 290. But today on number 289 we have Max Kaiser. And Max was actually recommended as a guest by one of the couples on our Atlanta property tour a couple of months ago. So again, thank you for that recommendation. And we will be here with Max Keiser as our guest today in just a few moments. And then on number 291 we have the ever so interesting G. Edward Griffin back on the show. This is his second appearance on the Creating wealth show and of course you all know him. He is the author of the seminal work on the Federal Reserve and monetary policy entitled the Creature from Jekyll Island. So that will be show number 291 and we've got a whole bunch of great guests coming up after that. And you'll just have to stay tuned to hear about the rest of them. But we're going to talk about the landlord Chronic on future shows, we're going to talk about economics with Logan, who is a very interesting economics buff and mortgage representative. And just wow, a whole bunch of great shows in the can. Already recorded. A lot of great callers we have to get to as well. So we'll be back with those on future episodes. And for those of you who are attending Meet the Masters event, our Meet the Masters totally sold out. I would highly recommend that you book your hotel if you haven't done it yet. I think the vast majority of you have. But again, we've got over a hundred people attending and we don't have a hundred rooms booked in our room block. And I know some of you are coming as couples and of course doubling up and you don't need two rooms. But I just want to make that one reminder to you that if you don't have your hotel room booked at the Hyatt Regency Irvine, be sure to do that and be sure to get in on our room block. Just mention Jason Hartman and the Meet the Masters event and you should be good to go for our discounted prices on the room block. And as I recall, that price is $119 per night at the Hyat Regency Irvine. So we'll look forward to seeing you there. And if you cannot attend, be sure to get a copy of our Meet the Masters home study course@jason hartman.com in this in the products section. And that again is a sort of best of Meet the Masters where we've got 22 different speakers, more than we have for any live Masters event. And I think you'll really, really like that. It's a great course, 500 pages of PDF download, which is all the slides from all the presenters. And by the way, this is stuff you don't get when you actually attend the live event. So be sure to check that out@jasonhartman.com under the product section and take advantage of that. So we will be back with Max Keiser here in just a moment.

It's my pleasure to welcome Max Keiser to the show. He's coming to us today from London, England, and he is a very astute commentator on the various situations going on in the global economy nowadays and was actually recommended by a client of ours. So it's a pleasure to have him on. Max, welcome. How are you?

Hey, Jason, Great to be on.

Well, likewise. It's good to have you. So what is going on in the world nowadays? Maybe I'll just start with a very broad general question and then I want to talk to you more specifically about on your last episode, how you talk about how the bankers go around pillaging country to country. I thought that was very interesting and I hadn't heard it expressed that way before. But what's your take on things nowadays? It's a crazy world.

Well, it's the continuation now of what we've been seeing for the last 10 years. And you got to look at really in the context of post World War II and post going off the gold standard in 1971. You know, governments have been increasing debts, the central banks have been printing lots of money, and the return on all of this has been a case of diminishing returns. So 10 years ago, 15 years ago, for every dollar of debt or stimulus you created, you might get a dollar or $2 in GDP growth. Now in 2007, 2008 when this peaked, it would require 7, 8, 9 dollars to be created to get the same dollar of GDP growth. So the situation became saturated with debt and now it's collapsing. It's been collapsing for five years. And you can see there was a great chart that was posted on the web by a couple of different sites that tracks the price of gold versus the expansion of the debt ceiling. And over the past 10 years, as the debt ceiling has gone up over 16 trillion, now price of gold is tracking that quite nicely, heading back up to 1800. And of course the debt ceiling and the debt loads are going to continue to go up sharply and so to the price of gold. So for 10 years we've been saying really, gold and silver are the only shelter in the storm. And that's worked out pretty well.

Right?

Right. And you know what's interesting? It's like, you know, a drug addict. I mean, you know, in the beginning it doesn't take much for the drug addict to get their fix, but after a while they become so tolerant to it. Maybe that's really the same thing that's happened to these economies around the world with more fiat money creation. It just takes more and more and more to get the same high or the same result of stimulus, doesn't it?

Yeah, sure, that's a perfect analogy. And it's diminishing returns. And now we have nations that are facing outright currency collapse. So in Iran you have a currency collapse hyperinflation. You have gold making all time new highs against the euro, the Swiss franc, other currencies, the Indian rupee. Soon it'll be making new all time highs against the dollar and the pound. So currencies, the paper currencies, are now in serious trouble. They're all in retreat. And the response is to either expand both the Keynesian artificial demand programs and the money printing. So they're trying to do both at record amounts and neither one is working. There's still, the GDP is still contracting, so none of those are working. None of those tools are working. And currency collapse hyperinflation is now baked into the cake.

Yeah, and I agree with you. The only real question though, Max, is when it comes to the United States, it really seems like it is different because for the time being we've got the reserve currency, we've got the big military to bully the rest of the world around to play our game, to make, to make China and Japan and other countries buy our debt and force countries to trade in the dollar and keep it as the reserve currency. There's a lot of mutiny against this for sure, but the question really becomes for how long can they just keep putting off the inevitable? Maybe they can put off the inevitable for five years, 10 years, 50 years, I don't know. I mean, who knows? This has never really happened before.

Yeah, I agree with you that the US and the UK are probably going to be the last two to collapse. The US has the world reserve currency status. The UK is the global epicenter for global bank fraud. So AIG went through London, Lehman Brothers, the London Whale from JP Morgan, Bernie Madoff, all these things go through London. So they have a tremendous franchise in global bank fraud and that's going to insulate them to some degree I think, as now Spain is going under and losing its sovereignty and Italy is now on the radar as being a country that's set to collapse and it will lose its sovereignty as well. We know what's happening in the Eurozone, but really the big wild card in the next 12 to 24 months is probably going to be Japan. Japan, world's number two biggest economy set to go through a currency collapse and implode like Greece. They've got absolutely horrible economic conditions there. And I think that will be really set the stage for this global currency collapse. And yeah, it's true, you might have dollars and you might have British pounds, but the turbulence and the volatility is going to be so outrageous at that point that people are not going to be making that relative judgment anymore with any degree of, of, you know, assurity. You're going to see some very powerful social unrest, I believe.

And where, where do you think that social unrest will be? Or will it just be widespread? Will it be everywhere?

Well, I call this the global insurrection against banker. Occupation.

I love it, I love that.

And as a matter of fact, I've minted up some 1 ounce silver rounds that have that printed on it. It says global insurrection against banker occupation on one side. And then we see this is a new silver round that's 100% made from recycled silver. So it's trying to mop up the kind of the recycled silver that's out there.

What's interesting about that, Max, by the way, I love the sort of dark humor in that, by the way, but what's interesting about it is it reminds me of, I think it was post civil war in the US they had these coins and I, God forgive me, I just don't remember the name, but where people were so angry that they, they minted their own coins and they were like these complaint or protest coins. Maybe you know what that was, but I just can't remember.

Well, I mean, you know, I have.

A few of them.

If you're a reader of Friedrich Hayek, of course, you know, he called for people to create their own currencies and the currency should compete. And what's happening now, you've got in the uk, several towns are creating their own currency, most principally in Bristol has its own currency, Bristol pound, which is, you can pay your taxes in it. They print it in Bristol, it's good. In Bristol it's becoming a major currency. People are, of course, I've got the silver Kaiser, which is recycled silver round. You've also got Bitcoin, which is a coin that's on the web, backed by cryptology. It's a cryptocurrency which is competing with all these other currencies. So this is really the response people have to the collapse in the fiat money that's put forward by these various central banks. And the central banks simply can't control the system anymore. They, they just have no control. So the people are taking matters into their own hands. Now in terms of Europe, what you spoke at the top of the show, the collapse of these various European countries, if you look at it, you'll notice that it happened in the order of their vulnerability in size. So first you had putting Iceland aside for a second because that's kind of a special case. But on the continental Europe, Ireland, which had a GDP of $400 billion, it's almost, you know, not even as roughly the size of Exxon Corporation at that time. I mean, that was a, that was a country in Greece Also with a 3 to 150 to $400 billion market cap you could call or GDP these countries effectively have been exposed to a leveraged buyout. So you have all these hedge funds. John Paulson was in Athens with Lloyd Blankfein from Goldman Sachs, with Papandreou, the head of Greece, and they were talking about the collapse of Greece. They made billions on the collapse of Greece. They used the profits from the collapse of Greece to then go after these other countries, like Portugal, now Spain. They're building this war chest to go after these huge countries. They collapse the countries, the countries lose their sovereignty. They give away their sovereignty to, like the imf. And the troika was called the troika, imf, EU and ecb, the European Central bank. And they're making out like bandits. Germany is quite happy. They're running everything out of Frankfurt, so they're getting a play on all this. They're managing the federalization of Europe, they're quite happy with what's happening. And everyone else is losing their sovereignty. France is now really starting to get nervous. They're under attack. But I think Spain is definitely going to lose its sovereignty. And then Italy, and of course Italy has 2,400 tons of gold. It's got one of the top five biggest gold positions in the world. And just like Greece had to give away their 111 ounces of gold away to the IMF, they've lost it.

Now.

It's part of tons, I believe you meant to say.

Yeah, tons. I'm sorry, 111 tons. They've had to give that away now as part of the deal that they signed with the imf, EU and ecb. So, sure, yeah.

No, it's really scary to see that these countries are basically being held hostage by the banksters. But when you say lose their sovereignty, I mean, be more specific about what you mean. To whom are they losing their sovereignty? Are they just being in debt when you say that?

In other words, in Greece, Troika, they came in, they signed off what's called the memorandum, the troika being imf, ECB and eu. And Palmadreya, the former leader of the country, went to the public and said, well, we're going to have a referendum on whether or not we agree to the latest terms from the troika. The troika canceled the referendum and said, I'm sorry, you're the leader of the country, we don't allow you to have that referendum. So that's a country that's lost its sovereignty. It's being managed from outside of the country. That's what it means when you lose your sovereignty. You have In Ireland, Anglo Irish bank ran up GDP to debt of 10 times the country's GDP. They went bust. The country took that trillion in euro debt and they gave it to the citizens to have. And when it came time to pay an Anglo Irish debt of a billion euros, it's an unsecured debt. But the government which is in place now, working with Anglo Irish creditors have forced the public to pay this unsecured debt. No referendum, no vote, no talk about it at all. It's not even a secure debt, it's completely unsecured debt. They say themselves, they know if anyone in Ireland, they say we no longer have economic sovereignty, which to me is the same thing as having not having sovereignty at all. So those two have lost their sovereignty. Spain will soon lose its sovereignty. They'll parachute in a technocrat, they'll get rid of the current administration, current leadership. They'll answer to Brussels, ecb, these other institutions from a centralized federalized Europe. So they no longer have their self determination, they no longer run their countries run from outside. That's what it means, that's what's happening.

Yeah. Unbelievable. It really is unbelievable, Max. It sort of begs the question as to, you know, is this a conspiratorial, I mean is this just some private companies? Well, they're not private, they're public many times. But are they just bankers in other words and business people who are just looking to exploit situations or is there some sort of a concerted effort here? I mean it almost seems methodical and systematic the way they're going about this.

Well, I've worked on Wall street for many years and I can tell you exactly what's going on. The bondholders of these banks, these sovereign bondholders, they're not getting paid. So what they're doing is they're rolling up their bonds into new issues, they're re securitizing and they're using new lending facilities that are European wide to roll up the bad debt, to re securitize, to extend the maturity and to put a new coupon rate on these new bonds. So it's just a roll up. The fact that the people are losing their sovereignty, it's never a consideration. None of the bankers who are managing this paper, these offerings would ever take that on board as a consideration. They don't factor in those types of things in their calculations. But there's no growth to support paying off the coupons on these bonds. So in response it's just basically a roll up. Now when, when Europe as a whole, when they are incapable of Paying the debt on the new tranche of debt that's being issued to replace the current tranche. Then we're going to see something very interesting. We're going to start to see some talk with UK Central Bank, European Central Bank, American Central bank about creating a new global central bank. And they already talked about that at Davos a couple of years ago. They said we needed lending facility of $100 trillion to create a new global central bank to roll up all this bad debt again.

Unbelievable. That is so scary to me.

Let me take a brief pause. We'll be back in just a minute.

Have you listened to the Creating wealth series? I mean, from the beginning? If not, you can go ahead and get book one that shows 1 through 20 in digital download. These are advanced strategies for wealth creation. For more information go to Jason Hartman.

I mean, Max, are we looking at a future of a global fiat currency? If you ask me, that's checkmate. If you institute, if they institute, I should say a global central bank, a global fiat currency and legal tender laws that apply everywhere on the planet to where someone can be arrested for trading in another currency, even if it's gold, Gold or silver, for example. That's just an inflationary checkmate, isn't it? They can debase and rob the population of the planet anytime they want by just debasing the currency.

Well, don't Forget that in 1913 when the Federal Reserve bank came around in the US was also the beginning of income tax in America. So to pay for this global reserve bank, we're going to have a new global tax. So you're going to pay in America state, local, federal and global tax. And we already saw something last week that heralds this globalization. We saw this suggestion by World Health Organization for a global tax on cigarettes administered by a global organization, the World Health Organization. So now this is the first time that we're seeing a global institution that answers only to itself, not to any of the countries around the world is going to institute a tax on everyone around the world. Okay? They'll say, oh, it's for cigarettes and cigarettes are bad. It's just as you have to take care of your health. But this sets a dangerous precedent because after that will become the global carbon tax and then after that will come the global income tax to pay for the new global central bank which was created to absorb all the bad debts from Europe, which just went bankrupt again for the 20th time in the last two years. And by the way, the US is also bankrupt. We need to roll up all that debt into this new debt. Same thing for Japan, same thing for Britain. So, you know, but all these things are happening in real time. I don't see this. Not a, I mean it's not a theory. I mean it's not a theory. Oh, this might happen. I mean this is happening. What am I missing here? Gold and silver are hitting new all time highs. They're telling us, staring us in the face, the truth. What are we missing? I don't see any disconnect here. This is what's going on right now.

Right, right. And you're absolutely right. I mean this is not some far out crazy theory. It is really happen in real time. And then it also begs the question, Max, would there be a global confiscation of metals, of gold and silver? I mean, FDR did it. Would it be a turn in your gold? You can't own it. You can have some jewelry maybe, but you can't have bullion. I mean, I mean, is that in the wings? Because gold and silver are the competition for the banksters, they're the competition for the central banks. They don't want people to collect it, they don't want people to use it in trade. It is their nemesis.

Well, I think you're right that this is, now we're talking, I mean, now let's have a serious conversation. Gold is their nemesis. Gold is going to, we're going to go back to some kind of gold standard. At some point it'll have to be valued upwards, north of $10,000 an ounce if it's going to try to make a dent into this global 1, quadrillion derivatives mess. So they're going to want it, everyone wants it. They're going to want our gold, they're going to want to confiscate our gold. The US has already done it. So as a strategy, you have to think strategically. Number one, you would want gold held in more than one territory, more than one country, you would want to hold gold. And also, gold and silver are not the same really at all. Silver is an industrial metal. It's used also not only as a monetary metal, but it's also used in solar applications, industrial applications. There's 700 million ounces of silver mined a year. And more than what? Half of that goes into industrial use, the other half goes into people buying it for monetary reasons. So to confiscate silver, that means you'd have to shut down the electronics industry, you'd have to shut down Apple, you have to shut down Google, you have to shut down Facebook, you have to Shut down the Internet. You have to shut down television. In other words, you can't really confiscate silver because it's.

Yeah, right, I agree. But they could save from private citizens who don't have an industrial use for it. Passed a law in the US in a couple of different states, I believe now, because people were stealing air conditioners so often for the commodity value of the copper. And they're also stealing catalytic converters from cars. So they could say, you know, I mean, look, governments can do anything they want. That's the scary part, right? They can do whatever they want, ultimately. And now they've made this. This law against trading. You have to have, like, an industrial license if you want to sell copper. You can't walk into a place and sell copper. You know, it's crazy.

You're in the United States, Right? You're in the U.S. okay, so if the government is confiscating silver, would that qualify as tyranny?

Yes, absolutely.

Okay. If that qualifies as tyranny, then I would point your direction to the Second Amendment.

Yes.

Which was created solely for the purpose of defending oneself against tyranny.

Couldn't agree more.

It's not there, you know, conceal and carry. Go to your local Wendy's to terrorize some hamburger flipper. It's there for a very specific reason. You know, and if you've got tyrants running the show, then you have a constitutional obligation to do something about it. Okay, that's the answer. I mean, it's right there in black and white. Again, what am I missing? It's right there. You can't miss it. Can you read English?

Max, you're not telling me anything I disagree with. I couldn't agree more. I just hope it never comes to that.

Of course it's going to come to that. Thomas Jefferson said, the water of liberty. I'm going to paraphrase here. But he said he thought that the liberty needed to be reinvented every 50 years. You know, it's been over 200 years. We're overdue.

Yeah, well, we are overdue. We're living on borrowed time, aren't we? Well, very interesting stuff, Max. Give out your website if you would tell people where they can listen to your show and learn more.

Just follow me on Twitter. Everything goes through Twitter now, okay?

It's just Twitter. Twitter. Max Keiser, follow me on Twitter and you will be set free from the drudgery of your existence.

Awesome. Any closing thoughts? Max, I know you don't have much time, and I appreciate the time you've spent with us. Any final thoughts?

No.

No, I have no final thoughts, Jason. You have me on your show. It must be a good show. So that's all I can say. Your audience are going to be very happy. They're like, oh, Jason, Jason. Jason Hartman's a smart man. He's a wise man. He has Max Kaiser on his show.

And Max Keiser is, too. Yeah. We've got several of our clients following you, so. Hey, Max, thanks for joining us and keep getting the word out like you are. You're doing a great thing for people, so appreciate it.

Thanks. Bye.

Jason provides an extremely unique service, deal evaluator. Are you interested in a property outside of our network? Need a second opinion? No problem. Let our experts evaluate the deal. Find out more about it@jason hartman.com the price is only $50.

This show is produced by the Hartman Media Company. All rights reserved. For distribution or publication rights and media interviews, please visit www.hartmanmedia.com or email mediaartmanmedia.com Nothing on this show should be considered specific personal or professional advice. Please consult an appropriate tax, legal, real estate or business professional for individualized advice. Opinions of guests are their own and the host is acting on behalf of Platinum Properties Investor Network, Inc. Exclusively.