Max Keiser: Prof. Fekete, Gold and Austrians

This is an enlightening, if somewhat arcane, look at the role of precious metals in the world money system and provides some insight into “Austrian School” economic philosophy. It’s unusual for Max to hold a guest over for two episodes. You will see why.

Max talks to renowned mathematician and monetary scientist Professor Antal Fekete about the gold basis – cash versus the nearest futures contract and why the cash price for gold never being reported is by design. They also discuss gold repatriation from Germany as a trial balloon, to see how much demand there is for cash gold and how it is that permanent backwardation means internal bleeding in the monetary system. Part 2 discusses elimination of silver as money, an event that saw value and liquidity wiped out, and they compare the two giants of Austrian School of Economics – Carl Menger and Ludwig von Mises – with the biggest difference being that Menger did not believe in the quantity theory of money.

http://www.youtube.com/watch?v=tkNa4tm9ZM8&feature=player_embedded#t=730s

http://www.youtube.com/watch?feature=player_embedded&v=mn-rTs2zSo4#t=723s

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