On the Edge with Max Keiser - 02 October 2009 (Interview pt2)

[clintonlies]

was really any mortgages tied to the goldman sacs synthetic CDO's ???? why can't I find

that answer ?

[psnsam]

Obama is a joke!!!

[LastReplaySC]

for the political correct

[DavidAKZ]

Didn't have a mechanism for AIG going into receivership? Isn't it called the market ?

[OgeronimonominoregO]

She seems to see "deflation" only in real estate prices which were backing a lot of the crappy paper that went bad. But the gov't and the Fed have covered or promised to cover losses of the biggest banks as well as Fannie/Freddie. They've pledged trillions.

Inflation is an increase in the money supply, which has already occurred. They're playing for time and so all that money is idle in the banks. It's to keep them "solvent".

We're just in a lull until the next crisis hits.

[savemyplaylist]

Deflation in terms of dollars?

Why doesn't max come back to the states and pay my food and energy bills, then he can tell me about deflation.

[EndTheFedRes]

savemyplaylist that is funny and I think your right. Deflation in terms of gold is believable, but not dollars. We well see inflation in terms of dollars. At least thats my guess because, thats all we have seen since 1913.

[savemyplaylist]

I know! How the hell is that trend going to reverse?!

[LastReplaySC]

it wont it will only slow down and speed up until -crash time

[orangedac]

things you own are deflating (losing value).

things you don't own are inflating.

its a perfect sh*t storm.

[Azbx23]

Debt shmet, we'll print our way out and China/Japan will be left holding a huge, smelly bag of worthless dollars. If they have a problem with that, we'll drop a few nukes and shut them up.

[recessionlover]

lol

[RoberTastic]

and 95% of america will be flat broke. What a real man of genius

[wingnut4427]

A possible Solution to our massive Debt problem. This is a theoretical solution using our legal system to tell the international banking interests for FOOK OFF. & it makes sense when you look into the legal aspects of it.

/watch?v=Rc-3TivAgiU

[mrzack888]

but it wont cause massive sell off of stocks and commodities. massive sell off last year was caused by over leveraging and then suddenly deleveraging and selling even the good assets to pay off the bad. Gold will go through the moon not because of just inflation, but because of US dollar no longer becoming the first place reserve currency.

[fal2grace]

amazing!!! thanks.

[madamhelens]

Or is the money being transfered to the elite from whom we are borrowing from?

The fact that we are BORROWING from the elite sums it up. Our governments are just puppets and we are the suckers who pay for the elite to enslave us. Good system.

We used to borrow from them to fight wars that they created, but people in the west are less willing to fight wars. The financial crises solves many problems at once for these evil elite bankers.

[caveman0110]

I think you got it right... The US-system - as I understand it - works like this: The government uses the peoples tax dollars and gives it to the banks who then lend the same money with interest to the government and the people. Of course at some point there is nothing to steal anymore and the system reaches its end, at which point war becomes highly likely. If only to distract the people from their real enemies.

[xearther]

BINGO!, caveman0110.

In the words of Morpheus, "Welcome to the desert of the real. "

[caveman0110]

I think I´m getting a loan tomorrow to buy some pitchforks.

[madamhelens]

The way things are now, I think it is the GBP that will be finished off in order to bring in the new world currency.

This maybe simplistic, but since debt is money (see money as debt vid) and because since the crash new debt has been reduced, then there must be less new money thus deflation. Is this money printing also a safety net against bank runs due to runaway fractional reserve?

[seanboy80]

In other words... we're screwed

[JiveDadson]

Love the Ed Grimley hairdo.

[overseachininadoll]

The game of Fed now is call Deflation vs Inflation. The Fed is aiming at maintain the stagflation. May be.

[overseachininadoll]

The "smarties" educated from elite business school and wall street transferring large fortune under people's nose in bright  day light. They creatively gaming/gambling (by derivatives) with other people's money to enrich themselves. Ripped off are the Industry, business, average people and the old rich to new new rich who are not in the game and don't understand the game. The society and the majority are improvised

[overseachininadoll]

The US government supports the modern rip off because the government officials are bought off by the financial banking industry and Wall Street.

[momentinpassing]

Finally someone saying FRAUD.

[rh7onda7]

shouldn't this segment be titled PART 3!!!

MaxKeiserTV thanks for uploading but i am continually puzzled and frustrated by how you post Max's interviews ;(

[kricke243]

Whats the problem with unbeatable deflation? Then the Fed and govmt can do what they want. The US can have 100% unemployment, thus not producing any products.Thats so deflationary that the Fed can issue even more money, because this deflation is unbeatable. They can issue a trillion dollar note and just mail it. Hm, why didn't Zimbabwe and Weimar rep. think of bankrupting themselves in unservicable debt before starting printing? Then they would have had unlimited purchasing power instead? Right?

[TheMadronas]

In a couple of months, the appendix will explode.

[egregiousdave]

Is this the same Max who was screaming about hyperinflation on Al-Jazeera a couple of years ago?

[justjacqueline2004]

Please have Janet back soon,she really makes the derivative game come alive.Thanks Max and Stacy.

[justaoldslave]

Thank you so very much Janet, I find smart, informed, honest women so attractive.  Jim Morris

[malleni]

She COULD be right, if she would answered:

"WHAT is MONEY for her?"

If she meant - GOLD... That is is correct - we are in hyper deflation.

USD is just "currency"- a piece of paper.

This " piece of paper" will be with extremely speed - just worthless in hyper deflation.

Price of Gold (measured in " piece of paper" ) will just explode.

Unfortunately - Max never ASKED her this very important question:

WHAT is MONEY for her?

[dnarby]

Oil, food, base metals etc. going up/down is an indicator of inflation/deflation.

But gold & silver going up in price is NOT necessarily an indicator of inflation.

It is an indication of LOSS OF FAITH IN FIAT CURRENCIES.

This is because gold & silver aren't commodities, THEY ARE A FORM OF *MONEY*.

Deflation can bring the price of gold/silver down briefly, but during economic turmoil it never lasts.

[rikestard]

great guest this week

[jaxadx]

inflation is already out there,increase of money supply is inflation,she is reading her conclusions from the book ,she does not use common sense.

[mrzack888]

Deflation huh?  So Max suddenly realized that crumbling the dollar like he did a year ago wasn't a smart idea. He's having some "dollar bashing" remorse.

[NewsScanner]

Webster Tarpley also has some excellent info on derivatives -- Surviving the Cataclysm

[mrcool011]

We will have asset deflation but with the trillions they're pumping into the system we will have inflation in commodities. While is oil at 70 a barrel when demand is still way down and supply is up? Inflation and a weak dollar. Food prices are up and will continue to go up due to inflation.

[dnarby]

...What exactly do you call the decline from $120 a barrel?

And FYI bread is $0.50 a loaf cheaper here in NYC from a year ago!

[mrcool011]

Of course it's down from its high during last summer but money velocity is A LOT slower right now. Once velocity picks up inflation will take off, not hyper-inflation but high inflation. But I could be wrong, I know the dollars value is going down the drain, so even if we don't have high inflation a weak dollar will mean higher and higher oil and other prices. But oil at 70 shows we have more inflation then earlier and gold at a 1,000.

[rollsthepaul]

Even if the US dollar drops a conservative 50%, gas will double in price at the pump. Actual forecasts are $20-30 per gallon. There goes the infrastructure.

[vsaldanas]

To: rollsthepaul- The Dollar index is at 77 as on today 10-3-09. If the dollar index falls to 37.5- A gallon of gas will only cost $6-$8 a gallon, not even near $20.00 a gallon.

[rollsthepaul]

I should have been more detailed. The US dollar will fall to about 1% of it's current value. That will essentially end the USA's economic existence. Both famine and food riots are expected in the USA and 55% unemployment with the remainder being government employees. As ugly as all of this is it comes from the Web Bots and it will spread worldwide. If we manage all of the problems well then 1.2 billion deaths worldwide and if badly managed 5-6 billion deaths. Some preparation would be in order.

[formulaprimer]

The central banksters have been robbing us blind for decades and decades so you don't think that they planned and got a back up plan.

Think IMF and SDR's.

watch?v=BHjpcvHoxHU

[overseachininadoll]

Rx on how to reduce the amount of the US debt: To play some money tricks. Everyone in the world plays money trick(s) at times. Like the Chinese and the S. Koreans devalue their money to boost export. Now since the US can't get the Chinese to flow their money exchange rate, the US government is doing that for them by devalue the dollar. In doing that, the US debt shrinks while export is improving. When time gets better, the exchange rate can be reversed. Like Is the Yen goes up now?

[MarcusCMarcellus]

She's ultimately wrong because she does not take into account the deliberate Fed policy of monetizing debt through inflation/devaluation. She herself says "I'm a cash flow analyst," and she's a good one. From her perspective, she sees debt default, not enough cash, which is deflationary. But the Fed's solution to this problem is what has caused the inflation we already see, e.g. prices have not come down enough given the asset bubble burst. The absence of deflation is itself the inflation.

[donharlan1]

... and stock up on other items you deem essential. Once you have done that, buy precious metals to preserve wealth. But then there is that pesky swine flu vaccine laced with squalene.

[donharlan1]

It is confusing isn't it. We have wealth destruction caused my the real estate collapse, the stock market crash, job losses and credit tightening. That is all deflationary - period. But, then you have the US government going into debt while GDP is shrinking, which means at some point the US government will not be able to pay the interest on the debt. When that happens, the dollar is dead overnight. So what do you do? Well, common sense would say to store food and water as stock up ...

[RoberTastic]

that depends.. the govt can give away battleships, land, oilfields, housing tracts, gold, etc in exchange for the government debt in order to appease creditors,,, that said, the government would probably opt to print their way out of debt whch would indeed destroy the dollar.. thats why I think we will have huge deflation followed by hyperinflation.

[donharlan1]

I agree RoberTastic. The government will trade the debt for physical assets and the creditor nations, in particular China, will own this country. That, I believe, has been the NWO plan all along, for China to own the US.

[Irinrover]

China may already own us. Did you see where the Empire State builing was lit up with the Chinese colors for Mao"s birthday.

[overseachininadoll]

Who are buying Gold? Those who have spare money to sit idol. And the Chinese and others.

Gold can go wild crazy when the public suffer a totally collapsed in trust of the government. Instead of putting their retirement 401K or 403B, etc in T bills, bond, or the stock markets, they put their savings retirements in Gold and sliver.

[roscogre]

china doll:sorry I guess English is not your first language.

[overseachininadoll]

Lots of people are short in cash. Price can't go up when few are buying. Still got too much overproduced stuff out in the market.

Hyperinflation occurs if lots of people have lots of cash in hand while not enough goods on the market. But the money printed are sitting in the banks and the banks are not lending cuz we are debt to death already.

[PressForFreedom]

The Austrian economists called it, they are still calling it. Ron Paul was right and he still is. Peter Schiff was right, and he still is. How you play the info is up to you, but the info you get from them is right on.

[jaxadx]

I cant listen to that deflation bullshit,yes it is going to be deflation but in terms of gold,money supply increase means  inflation,it means dollar is fucked up big time,it is common sense and logical. it means for 1 oz of gold you will be able to buy more than now. GOT IT?!!!!

[louis12346]

Max  , Ask her Who is going to Prison?

[eyewitness043]

Rather than "inflation vs. deflation" both scenarios are more than likely to occur in relationshiip to the other. We've already been through the "hyperinflation" of the housing boom but nobody complained about that. Now we're in "Deflationary" spiral of the cost of things you may want. (TV, PS3, G4, Laptop, Iphone, etc.)

The next wave of Hyperinflation will come as the effect of the total collapse of the US Dollar. The Fed will essentially drown America's purchasing power by printing money.

[pairunoyd]

you can get government out of the economy and let people get rich mostly thru production of superior goods and services or you can have massive regulation and have people getting rich not by productive capabilities but thru system manipulation.

Big govt simply enables people to empower themselves politically. Id rather people empower themselves by providing superior goods and services.

[XulChris]

Many people think that a depression will lead to deflation, however, this time around we will have an inflationary depression.

[Trapster99]

TAX WALL STREET

1% TAX on all Wall Street financial instruments: Stocks, Derivatives, Flash Trades, Futures, Commodities manipulation....TAX IT ALL at 1% of the value of the notational amount.

That will end this nonsense OVERNIGHT

[needbailout]

One year after Wall Street teetered on the brink of collapse, seven out of ten Americans lack confidence the federal government has taken safeguards to prevent another financial industry meltdown, according to a new Associated Press-GfK poll. Even more -- 80 percent -- rate the condition of the economy as poor and a majority worry about their own ability to make ends meet. WW3 is insight at current rate probably within 2 yrs time. US objective is not complete surge of active military response..

[Lingerfoot]

Have you read "Conspiracy of the Rich" by Robert Kiyosaki, or END THE FED by Ron Paul? They are some of the best books that I have ever read. Max Keiser is awesome; Thank You, Mr. Keiser.

[rockhardxrocker]

I think the dollar is dead, there's just way too much debt, there's no way we can pay that off. Even if we can, why'd we want to?

What we should do now is trade the dollar to anyone stupid enough to take it, buy up resources, and try to rebuild our production infrastructure, so that after the dollar falls, we'll emerge from the dust with intrinsic wealth. The ability to produce for ourselves. We can then go back to demanding real currency, something of intrinsic value.

[chena3]

well max

dunk my donut

more risk now

than last year ...

who would have

thunk it ...

[Unkn0wnGuy]

I can't quite understand how we can possibly hit a deflationary period, especially considering the amount of money printing/creation going on. Not to mention, when more foreign investors stop buying US treasuries, the US gov't will be forced to print more to cover the gap. Not to mention, the gov't is looking to provide health care for everyone, whey will they get the money? Remember those wars? They cost money.

Can someone please help me understand how we will have deflation?

[DojiSan]

Lets say you have to fill up a 100 gallon hole, so you get 100 gallons of water. The problem is that you find out that the hole is not really 100 gallon deep but 100000 gallon deep! So all that water you just poured will not fill up the hole.. you need more!! So even though the fed printed a few trillion dollars of money, its not enough! Its like they need to print 500 trillion to get the system going again.

[Unkn0wnGuy]

Great analogy, DojiSan, it makes perfect sense. But in the pursuit of filling the hole, and we probably agree that the gov't will stop at nothing to fill it, do you think we will see the destruction of the dollar before we see any deflationary forces?

My understanding of inflation/deflation is the expansion/contraction of the money supply. The Great Depression was deflation because there wasn't much money in circulation so most people had no money. I think the opposite is true now.

Thank you!

[DojiSan]

I read and hear that the powers behind the curtain wants One World Govt and thus one currency to use and they are pushing SDR as that currency. If that is the case, then the dollar might not have a chance :-/. I just look at the price of gold as my guide to dollar direction. Good luck!

[rockhardxrocker]

Ya i Don't understand either. Wasn't Peter Schiff, and Max Keiser, and all these people screaming inflation like a few months ago?

I don't see how we can have deflation if the dollar is a representation of our economy, while our economy is going to shit. It's not backed by anything, so why'd people want it, if they can't buy anything from us with it, because we're producing less and less.

[GlobVetus]

thank you MAX..

Meltdown 2.0

[StandUp555]

Good solid common sense Janet .. thankyou ... a rare commodity these days !