Max Keiser & Alex Jones: The upcoming bond collapse, commodity manipulation & gold repatriation

Selected transcript highlights from the Alex Jones Radio Show broadcast from January 22nd, 2013 with guest Max Keiser. Video courtesy of TheAlexJonesChannel.

@1:34-2:29

Alex Jones: Max, so much is happening, and I wanted to get you on about the economy because they’re buying urban assault vehicles, 1.6 billion bullets, training the Army for martial law, that’s all declassified. Gearing up like it’s the end of the world.  And, you believe that by the end of April we’re going to see the next phase in implosion. We’re already in an implosion. They just use more debt and welfare checks, and the government little credit cards to keep things going. It’s a consolidation program.  But, now we’ve seen a bunch of countries, the biggest of which Germany, the key to the EU, repatriating their gold, saying in the news, I saw it in the Financial Times, that we don’t trust the US anymore. So, even the crooks running Germany don’t trust the crooks over here. So, are we seeing that creeping towards the exits that you’ve warned about.

@2:50-11:45

Alex Jones: Max, so much is happening. I hope that your bold prediction is not true, but unfortunately it looks like we’re creeping towards the eve of financial collapse.  We’ll talk about what the collapse will look like as well.

Max Keiser: Hey Alex. Well, yeah, nice to be on your show again, and thanks for coming on my show.  I think you describe it well. Creeping toward the exit. This is what the German gold repatriation story is all about. And, as you point out, the central banks have lost trust in each other. They are taking their gold out of banks in respective vaults around the world and they’re bringing it all home. And, they’re doing this in a way that will precipitate and accelerate this collapse that we’ve been talking about.  To give you an idea on how this all works. In Britain for example, the government says they have 300 tons of gold here in Britain. But my sources tell me that they have leased out, or sold, over 1000 tons.  So, we have a fractional gold standard around the world that is keeping these central banks afloat. And, now that they want all their gold back, they find out that the gold’s not there.

Back when Germany took 900 tons from Britain, back during the 2000, 2001 period, Gordon Brown, to satisfy Germanys demand for gold to be sent back to Germany at that time, he ended up having to sell 400 tons of Britains gold. So, Britain had to sell 400 tons, and that’s well over a trillion dollars now that he gave away because the price of gold, at that time, was $250 an ounce.  Now it’s $1700 an ounce.  And this is a problem going forward.  The Netherlands want their gold.  Germany wants their gold. China’s buying gold. But these central banks that say that they have gold, it turns out that they actually leased the gold, which is a way for them to put on their books that they still own the gold.  When Fort Knox, for example, when they lease the gold, they claim that that is as good as owning the gold itself. But if you were to audit Fort Knox, you would find that most of the gold has been leased, and that means sold. So when people come, then, to claim their gold they find that it’s not there. The Bank of New York, when Germany says that they want the gold over, 7 years. Well, as a panic in the gold market builds, they’re gonna want that a lot sooner, and they’re going to be told that we don’t have the gold to give you because we sold it.

Alex Jones: …Max, ad nauseum, for about 2 years, in almost every interview, so there’s probably 20 of these, you have said you’ll know it’s about to collapse when they start demanding gold from Britain and from the US, and that they’ve leveraged it at least 10 to 1 in fractional reserve, and that it’s the fraud of the silver and gold reserves that will finally bring them down, and that they wanna have a controlled collapse without this happening, but that if they do go for the gold and silver this way, that that’s a signal that things are out of control.  Now, you’ve said that over and over and over again, and my guests do this all the time because we have guests on that are right. They could have guests on that were right on national TV here in mainstream news, but they don’t want the slaves to know what they know.  Max, you’re scaring me because  you’ve said this over and over again, that this would be the sign.  And, now it’s not just Germany demanding the gold from the US and England and places. This is really scary, so you’ve got the floor ’til we go to break in 5 minutes.  Break down how you knew this was coming and what this signifies, and how you think they’ll satisfy it this time.

Max Keiser: It started, really, back in 2008. On March 17th of 2008. Stacey Herbert and I, we were making a documentary. We were in Frankfurt, Germany. We were at the Bundesbank and we were talking to people at the Bundesbank. And, this was right when Bear Sterns was collapsing and gold shot up above $1,000 an ounce, and we ended up there at a very historic moment. And, I asked, I said I’d like to see the gold. The response from the Bundesbank was, well, most of it was in New York.  Now, that film was later broadcast on Al Jazeera English, and it was a shock to the people in Germany. Another journlist named Lars Schall picked up the ball, and he’s been hammering journalists and bankers now every year for 4 years until the point when  Bundesbank came out and said due to popular pressure we have to admit that we have these huge gold positions held in the New York Fed and we’re now going to repatriate this gold. We’re taking the gold back.  And then, my sources tell me, the New York Fed said that we don’t want you to start a run of the gold market, so we’re gonna space this out over 7 years. But this was really going back to what we discovered in 2008, which is that the gold that these banks say that they have, they don’t have, and this set off, you know, a trigger.

Now, over the past 4 or 5 years, what you have is central banks and governments, to keep the economies afloat, have aggressively been buying their own bonds. They call it Quantitative Easing.  Your other guests talk about this, like Gerald Celente. He talks about this a lot. They buy their own bonds as a way to keep interest rates low, or to keep bond prices high. Now, here’s an amazing statistic. The bond price in America has not been as high as it is today in the 240 years that America has existed.   The government bond price in the UK, in Britain, has not been this high since 1694, when the Bank of England was created. The bonds are where the dot com was in 2000.  It’s where the stock market was in 1987.  It’s where the real estate market was in 2005. It’s at a historic peak, a bubble peak. Now, whether the bonds collapse between now and April, as I predicted on your show last year, it could happen. I think it could happen. I might be wrong, but I won’t be wrong by much. I could be wrong by a few weeks, a few months, but that’s what we’re going to see. We’re going to see bonds collapse, we’re going to see panic buying in the gold market, taking gold a lot higher. And, of course, this all ties in to what we launched on your show 2 years ago, “Crash JP Morgan, Buy Silver.” The price of silver was around $26. At that time there was such a furor to buy silver, it moved up to $50. Pulled back now to the low $30s.  But now we’re seeing the price of silver, after this consolidation period, now it looks like it’s going, along with gold,  you’re going to see new highs in silver. So silver will get over $50, $60, $70 an ounce.  But, those are individuals now who don’t trust the banking system, not just governments. And for individuals, they reach for silver because it’s a lot easier to get. It’s cheaper.

Alex Jones: Max, the public, going to break, they’re all buying survival goods, shelters, guns. They’re voting with their purchases, showing they don’t trust the system. The elites are all buying armored redouts and getting body guards, they don’t trust the system. This looks like quite a mess we’re going to enter.

Max Keiser: Well, there’s a good point you’re making there.  To contrast today with the 1930′s.  People say this is similar to the 1930′s.  There’s a big difference between now and the 1930′s. In the 1930′s there was a liquidity problem. Banks needed cash to keep their business going for their deposits. But today that’s not the problem. The problem is an insolvency issue. These too big to fail banks, they are technically insolvent. They’re zombie banks. They’re being kept alive with this money printing that the politicians tell us, well we need to print the money, we don’t want to repeat the mistakes of the 1930′s.  That’s false. It’s not like the 1930′s, it’s not a liquidity issue.  It’s an insolvency issue, and they’re keeping the banks alive with this cheap money and 0% interest rates to keep their buddies afloat.

@14:24-17:22

Alex Jones: Why is it that the government is arming to the teeth while rushing to disarm us? Is it because they don’t want us to be armed during a collapse?

Max Keiser: I think that’s a pretty fair statement.  When the bond market collapses, as we’ve talked about, because it’s in a bubble, it’s in a 300 year high bubble. And, I look at what’s happening in the markets to give me a clue as to what the big money is doing, and I know that JP Morgan, over the last couple of years has been developing huge positions, monopoly-like positions, in food, copper, industrial metals, and in precious metals, and they doing so because they know what’s coming. Hyperinflation is coming and they wanna be able to totally control that market. For example, JP Morgan just got involved launching an exchange traded fund for copper. And, before they did so, they bought something like 20% of the worlds coppers supply. So now the price of copper is gonna start going up aggressively higher because it’s being manipulated higher, because JP Morgan and the bankers on Wall Street have a new way to make money.  It’s gonna be on commodities.  They’ve made all the money they possibly can over 30 years in the bond market because bond market, the interest rate under Paul Volcker got 15% to 16% on the 10 year bond and hit this huge high on the interest rate, and during the past 30 years has now gone down to 0%. During that 30 year period was biggest bull market on Wall Street in history selling bonds and bond related equities, and stock and options, etcetera.  Now that 30 year period is over and we’re going to enter into a period of  commodity price appreciation. JP Morgan already knows it, Goldman Sachs already knows it, and they’re buying huge positions into these markets.  And, in the US, if the price of food gets to a certain level it causes riots.  We know historically that when the price of food gets to around 40% of an individuals income, you look for a riot. That’s the point it got to in Egypt, before the Egyptians staged a riot, a revolution in their country.

Alex Jones: And they don’t want us armed so that we can’t protect ourselves. But, that may actually cause total rioting, where even the government gets taken down. But the tyrants instinct is to disarm us so much they still don’t care. But historically if they take the general publics guns, that’ll make the government even more unstable.

Max Keiser: So in the US, the average American spends something in the order of 12% to 15% of their income on food. That’s still not at 40%. But as prices now begin to go up because of the manipulation coming and the collapse of the bond market and the loss of purchasing power from the dollar, you’re gonna to get to the point where the food costs are gonna be out of reach for a very, very large percentage of the population.

 

 
  • Fred

    Thanks for the transcription! This is very useful when people, like me, can’t necessarily watch videos from my device. I was looking all over for the information discussed by Alex and Max in this video, and found it here!