This economist cover free money when Government Spending knows no limits is is the free money it was never free and we can see that in gold prices free money is good to keep the system rolling obviously thats why they put it in place well issue of course is whats the underlying value of the money. You know that money is in the process of dying and i think thats what were all observing very notably its reflected in gold and silver prices right you know you say they can print all the money they want but it doesnt mean that it has value and we have lived in war all the fia money since 1971 where the value was always based on a relative valuation to other fee out money right this and this crazy kind of strapped bar selfreferential or crazy daisy chain where all these big commies are just printing and they refer to each other with their printed money and its a simple sturrock and that when this bubble and found money burst and this is by far the biggest problem with probably ever seen in history theres no bottom to it really you can the whole thing can just crash. And were talking about hundreds of trillions a family disappearing lawrence right and i think its hard for a lot of people to get their mind around they just sort of want to go there because the implications of collapse with the global reserve currency are very very severe and and somewhat sad obviously the implications for society but but setting out aside i mean its what happens if you set the system up with Bretton Woods the dollar being the reserve currency and all tied to gold and then of course that ended 70 august 15th 71. 00 and. You know they all have been so for referential as you point out the dollars been the cleanest dirty shirt and theres somebody on twitter that you know says milkshake theory because Everyone Needs dollars in the short dollars you know the dollar remains strong and it has my view is that thats true to the extent that people need dollars but it eventually what happens when theres an alternative to the dollar and it becomes clear that the issuing authority is not trustworthy and has really been running a large ponzi scheme which is whats been happening and the models are here to call call the law i own the fundamental value of the dollar and its you know its tragic and its its potentially rather scary and has some bad implications im quite an optimist so i actually think that the system is broken needs to be fixed and that theres a good other side to it once we get through once we get through it will no doubt be a difficult period you know you mention 1971 when we went off the Gold Standard rick Richard Nixon closed the gold window after france asked for 300000000. 00 worth of their gold back in the the trade deficit going on and then soon after that the United Kingdom asked for their gold which has also happened to be about 300000000 dollars worth and Richard Nixon and said close the gold window and hand it back england insead got some dollars so in this moment today in 2020 do you think elvira now believe who is the head of the central bank of russia that she will kind of be seen as that equivalent of Charles De Gaulle the Charles De Gaulle of central bankers in that. You know russia the Russian Central Bank has been stockpiling gold over the past 3 years theyve bought 521000000000 dollars worth so do you think they might be seen as kind of the last huge buyer the last until bank able to even get. Gold in Exchange Dollars yanna mansour absolutely yes. You know its not its not just her i mean it was shocks rough who counsel the gall to to demand the gold and he was right obviously but also the chinese i was and touch with the very intelligent swiss investor over the weekend and his view and i strongly support it is that combination of china and russia will be the 2 countries that will lead us back to having currency backed by the Precious Metals and theyve both been preparing for i mean if you look at you know the behind the scenes purchases im sure china has multiples of what they report in gold reserves that theyve probably got 20000 plus tons of gold reserves and as a result it would not surprise me at all when when the thing comes crashing down that the 1st 2 currencies they go to a gold backing are china and russia and chinas got a big credit bubble too so thats going to be tricky but russia is actually in a very very good position they have you know very low debt you know they dont run large deficits except maybe out of a Large National resource economy as well so. I think those 2 companies countries have been playing the wong game on the currency side and will benefit as a result of having done so right south orange the follow up on china russia what youre saying there there are a lot of tension thats been building up between these 2 at particularly u. S. And china you know for years it was about the symbiotic relationship that these 2 would never come to blows because they have such a great system going where we export the jobs to them and they export cheap goods to us but now its come looking like its getting increasingly more. Of a problem and theres a 3 cities trap and and the mex the u. S. Dollar or some of it is coming under attack so it is part of the conflict between these kind 2 countries can that can you see the. Developing very much in me Graham Allison says that through said it is traveling is dead right and you know obviously that the embassy you know moves last week and then if you look at whats come out of the white house and theres a policy paper out there talking about dealing with them as a strategic competitor and then if you look at doug mullins credit bubble boldness saturday he had some great stuff in it about my pump a 0 and the speech he recently made and now theres no doubt that you know our interests in chinas interests are not aligned and. You know. I think the tension is going to continue to grow what im hoping and praying is that you know we can actually get through a complete worldwide currency collapse without you know slaughtering 40 or 50000000 souls the way we did in the last large 4th turning which you know obviously was the the pression were 2 or so. You know its entirely possible to do a currency reset and not have people die but its its not always the case so well just have to see how it unfolds but regarding that relationship with china my pompei i did accuse them of economic blitzkrieg but what is the role of the United States in that and in particular the structure that is the us dollar by necessity it needs to run massive trade deficit and order to have a global reserve currency so isnt i know everybody in this space hates keynes keynes didnt warn that they would have to run a huge deficit in order no doubt he had it right Bretton Woods in that respect i mean the bank or was not a bad idea and was not the direction they went they went with the dollars reserve currency and you know i mean its true from selema right without you know without a way of of satisfying a neutral reserve asset you know we have to run deficits and they have to. We ship our jobs to them and they they take our paper and and send their junk to us and so its got all be restructured i mean theres no doubt about this probably the best thinker on this im sure youre aware of it many of your listeners are as well as luke roman who has done a very nice job of kind of writing about and unfolding how you know that theres a theres a call for a neutral global reserve asset and you know there are a lot of potential candidates but you know having the dollar is the reserve asset i think weve got the end of the line there because were too far in debt and you know the math just the math is falling apart on him now i mean its you know you cant take the reserve asset into negative negative Interest Rates and not have the whole thing collapse so its a mess its theres no doubt its a mess but you know there are some encouraging signs of bank the fact that theyre willing to even consider putting judy shelton on the fed board indicates to me that somebody there is saying hey you know we got some real issues in this area and lets get somebody who actually has thought this through to have a seat at the table i mean when she was when she came up in front of the Senate Hearings i mean they treated her with justice dang i think somebody im guessing it came out of the deal yet right no surprise it came out the d. O. D. Or somebody whispered in somebodies ear and said no no no no we want her at the table when this whole thing goes down because a lot of stuff going down thats going to be him or so i thought that was interesting right yeah you manson he can have the World Reserve currency go into negative Interest Rates but every single week rates for u. S. Treasury paper get lower and lower and lower and a lot of people are now saying you know we can go negative down in tampa said hed like to to go negative and so is it possible to go negative what does that mean number 2 kind of to go with that question i notice that no matter how much they print money philosophy keeps collapsing towards 0 or those 2 things related. I think they are max i mean i think as you know others have pointed out i mean the reason its 0 is theres so much of it out there its not flowing around i mean think about trying to get you know money something about water in a bucket trying to get a flawed around versus trying to get water flowing around in a lake you know its a lot easier to swirl around the bucket when theres less of an a so much money theres no velocity i dont know the answer your question of going to take the reserve currency rates negative i suppose they can i guess i cant see why not if they made the choice they stated they will not do it and i guess i tend to take them at their word on that i think what they prefer to do is just get them so low and leave them there and geraghty that they will stay there that effectively the real Interest Rate which is what drives the price of gold and drives the greshams law substitutes the really Interest Rate is so deeply negative that they do get the inflation and you know i think that you know as i wrote my last quarterly letter i think that whats going on here is is they you know theyre actually theyre ok with gold the gold price going up now they probably dont want it going up quite as quickly as its going up now because eventually greshams law kick in and theyll be in a lot of trouble and im sure theyve got some some tricks up their sleeve to to slow it down but you know its definitely right i think their plan is to run deeply negative rates thats my belief and to create inflation and they know they have to do it they absolutely know it right the bird were going to take a break and when we come back pick up on this conversation fascinating stuff dollar gold hyper big quantization is coming up right after the break out go and. Join me every thursday on the alec simon show and ill be speaking to guests of the world of politics Small Business im showbusiness ousia that. Oh yes. And this can last a moment a lot them fast for the last 70 and seeing and on the rest of the batch pro who should have been the commission. Branch im sure. Shoot on disk in the. Asian community. Legion mom. I know you are so so i dont know pretty much the same mama just that are ya know. Welcome back to the kaiser report Summer Solutions thats right we sort it all out we got all the answers with lawrence the part were going to continue our conversation with Lawrence Lawrence i want to pick it up and ask you about the gold dow ratio this is something thats been. Bouncing around finance all markets and discussions for a long time that every now and again the price of gold equals the level of the dow jones we saw on an 800. 00 back in the early. 1980 period we saw it again and they have a late 2011 period if we get back to a dow gold ratio of one that would imply either gold goes up to multiple you know ill hire the 20000 or the dows going to come down from its 2425000 level down 210000 or some combination of the both what do you think this is going. To have no idea and i dont really have the solution but i i do believe they are converging because the dow represents. A group of stocks that are you know driven by a credit bubble thats in the process of collapsing and gold is still keep we deeply undervalued in relation to its substitute which is based money and credit and so i think theres almost no doubt that the ratio which is in kind of the 56 well no its higher than that its what is 821000 or 2026500. 1800. So its 13. 00 today and its search stream it could be as low as 1. 00 to 1. 00 so if it gets to 1. 00 to 1. 00 you know if we go symbolically itll be 100000 dollars one 100000. 00 gold if we do something less than that it could be 30000. 00 or 3030000. 00 gold you know it all depends i mean the the correct price for gold is a function of. You know well 1st of all gold is the numerary so really gold is just priced announces right so now its a gold is an ounce of gold what you want to measure against that i would say that you know is other things in the dollar has been the world these are current say so theres one way of measuring it but you can also measure it and girls of oil or amount of bitcoin or other sorts of things. But yes were going to a ratio thats going to be much more in favor of gold than the because were still very much at the high end of the range of the 2 if you look at 100 youre serious. I grew on that max ok so lets talk hyper bitcoin as a shannon as as we see they feel that system disintegrate and you know everybody sees this everybodys talking about it now the likes of raid ballio the likes of Stan Druckenmiller and the likes of Paul Tudor JonesPaul Tudor Jones has a huge position on gold here however has also started investing and decline saying that this will be the fastest horse in this race do you agree with him and his position and a bit calling and what he sees as the reason for it he sees inflation coming he sees these negative real rates he sees that the Central Banks have lost control completely i mean his 2nd quarter letter was brilliant i own a lot of bitcoin im a huge bitcoin fan and i think it probably at the end of the day will be the fastest horse in the race. And i think its actually contender for a part of the whole solution of World Reserve currency it could be the numerary having said all of that its still only 11 years older or 12 years old and so and you know if the option is very early on and i like to view it as its a call option on the out collapse and its a call option on technology and i love it i own it. But i also love gold and i own more gold and i own more gold mining stocks because ive got a 5000 year track record and i dont have to rely on an electrical grid which i think ultimately will become quite stable. You know there i think theres merit to both and i often i find it funny and sad on twitter when people go at each other you know the bitcoin people go at the gold people or vice versa because i keep saying same team same team you know lets go after the fia theyre the ones that are you know ripping us all off and that its really you know damage this country and this world honestly i mean i you know i live for the day that burnett he will be in the history books right beside john law and its common i can just tell that its common california to tell the audience who john law is and his role and monetary history i think most of your audience knows if theyre watching your show but john lowe is a english financier who went over to france and convinced convinced the french monarchy that. They could they could print money to access and he blew a bubble in the south sea bubble and. Then he absconded with all the gold in the whole thing collapsed so he was it was the 1st large scale money printer in the history of the world and that may not be true there may have been others because the 1st modern large scale money printer in history and. It was it was one hell of a ponzi scheme that he ran and i honestly think that when blackie you know came out with this misinterpretation of the Great Depression and his helicopter money speech. You know he was channeling john law. And you know lets take a little while the play out its really the same thing said a follow up on the john laws ben bernanke the analogies what john law its colorful history a guy he wrote into paris and he bamboozled the kangen monetary history was created in the states ponzi scheme interestingly though when burnett is really it took over from Alan Greenspan is Alan Greenspan created this idea that markets could be assuaged with money printing and we had the greenspan put which means that any time markets went down greenspan would bail them out and print more money then bernanke its a cover then janet yellen sic over and now jay powell is taken over so you got 4 successive fed chairman and woman who have been engaged in this obvious fraud with bernanke he he was very had a very bad poker face and you could tell he didnt believe a word he was saying he was just setting himself up for that job instead of that when he got out of the out of the fed and cash in as so many politicians and policy and fed chairman do but its interesting in that weve had now 35 years of this fraud and it goes from chairman to chairman to chairwoman to chairman and as a result the subsequent crash and devastation could make the what happened in france look like a picnic in france went into a severe economic tailspin and the whole country crashed and i think this is this crash that these 4 fed folks set up could be bigger lawrence. You know i have to agree with the maxim in it if you had hyperinflation before in history you know why arent argentina and others and generally theres something sound you can go to you know you havent had the worlds reserve currency go die for inflation at least to the best of my knowledge until you know since since the times of the roman empire. You know when when wrong collapse and and that led to the dark ages and so yeah it could be pretty bad and i think thats tragic and unfortunate and makes what theyve done all the more criminal and youre right it wasnt any one of them that did it you know they each took a step and you know as one of my friends in this business says they all just kind of figured out a way to take the bride you know they were they they could have done the right thing but now lets just take the bride and you know nixon took the bride and then you know greenspan took the bride i mean greenspan used to be an end rant you know gold is that gold is great guy and then he decided being famous was better and he sold out and so on and so on so you know theyve theyve all kind of taken the bride and its it is going to be tragic no doubt lets talk about the upside to all of this and our Summer Solutions special because you know max and i have lived in europe for quite a long time and if you read about the 80800 s. And early 1910020 s. And europe you see that you know they ran empires they had it they were imperial powers they were colonial powers and yet the people themselves lived horribly now they live amazingly well so many people in france have 2nd homes they vacation for 8 weeks a year they have a much better lifestyle than the average american when we do lose our exorbitant privilege isnt that exorbitant privilege just reserved for a very very very select few i mean the fact that we have. Have mass unemployment and mass opioid overdose can be tied to this problem of the exorbitant privilege that these the elites really dont need the population at all though i completely agree theres so theres a lot to go on there and. You know the one thing i will say i mean to people who are despondent about all these problems in this 4th turning that were in the process of going through as bad as it looks i have read a lot about hyperinflation as ive studied hyperinflation if we dont get into wars and kill each other all the assets are still there all we need to do is transfer the wealth into the right hands and you know if you actually and then not make political mistakes i mean if you actually study why mark there fully a guy came in after the y. Market laps in germany in 23 shocked and he cleaned it all up they went to the Gold Standard and bank the country was cooking again in 2 years all the stuff was still there you know the auto manufacturers and the machine tool people are all making stuff and and once you once you fix the money you fix the fundamental underlying broken problem and the society will get better and fairer for everybody its just critical youve got to fix the money not in that case the tragedy is they were also hurt and beat up and pain that they went and elected hitler and you know so but but thats a different matter there are economists he was running fine you know they were just that theyd all been wiped out you know as a result of on having stayed in what he did and so to follow up on that. They the money printing that went on and you had mentioned that that debate reset thats coming can be done so peacefully we dont need a war we can dissipate play at the same time we have something brand new in the history of monetary history as a a money because that is not attached to any state so its state free money thats never happened before so is i think seems to me that thats really the only path to it to a peaceful race that is to go with the only store of value the gold equivalent thats not attached to any flag lines i grew that i grew that max a lot of i think gold can. Play the same role in a way its not quite as good in the sense that you dont know who has what but i think gold can be a neutral reserve asset and 6000 years of history supports that but i would agree with you and i i think part of the beauty of the 4th turning it if you can call it that because of the pain were going to go through is large part of the beauty of it is all of these big organizations are just going to collapse the federal governments are going to collapse we dont need i mean who needs the stuff who nieces jumbo jets who needs these aircraft carriers who needs these big armies who needs these Nuclear Weapons i mean our grandkids are going to look at this and say what were they thinking why do they have all that stuff it just doesnt make any sense but you know unfortunately youre going to have to see it collapsed and you know there might have to be some pitchforks you know and theres going to have to be a lot of still resistance because some of the elites and some of the powerful that are in control the government are going to fight like hell to prevent us from resetting it making it right again i think those of us who were standing there you know prepared you know to stand up for sound money and for the right principles for term limits for limited government for smaller governments you know there were going to be believed and the people whove been pushing this fall system that is it you know rich the elites theyre going to be seen for the liars that they are theyre going to be you know theyre going to be in jail yeah youre right lawrence i should point out that you gave our email address a while ago and you got so many requests you cant handle them all but youre going to try and get to them at some point in the future i think is the best i can hope for thanks for being on Summer Solutions lines thank you guys i really enjoy your show and its great to be with you all right thats going to death for this edition of kaiser report Summer Solutions with me Max Kaiser Stacy ever special thanks to our guest lars apart from to catch us on twitter its kaiser report until next time by all. Join me every thursday on the alex salmond show and ill be speaking to guest of the world of politics sport im showbusiness ill see you then. Crazy. He just said. But. I have been waiting for the moment of complete and total societal collapse i never knew it would happen this. New york alone has become a place of dozens and dozens of demonstrations were driving through brownsville new yorks. Has the worst homicide and shooting rate in the city. Going. To since most of this seems to. Be going to the 2nd grade so were going to be done with the 1st were. Going to let you film it. Some mass was going on behind those walls the richest country most powerful and yet it has the worst response there while countries. Were doing nothing about the level of deaths are going to be so great. That. I were going to have to bury them maybe and. Maybe in. This truly has become a symbol of the current new york. Nationwide protests and a sweep of fellow rules for a 12 day in the wake of the countrys election in response. Place including in the eastern city of. Despite warnings against meddling in european leaders agreed to impose sanctions themselves on them prompting accusations of hypocrisy. U. S. Secretary of state formally requests a resumption of u. N. Sanctions against iran accusing the country of violating the 2015 Nuclear Deal Even though washington quit the agreement 2 years ago. Russian opposition figure head. Into