max kaiser and this is the kaiser report markets finance and scandals and stacy herbert stacey talks a great mexico is there i brought you back a wonderful gift from new york which is your cold yes fags but it's really great next time i'm going to california and i can bring back maybe a hash brownies that takes me to my first headline yeah california prepares to issue marijuana bonds if prop nineteen passes so california issue these new marijuana bonds backed by other state taxes on marijuana that's a security yeah i mean it's about time i think it makes sense to issue these marijuana pot bons you know we've been recommending gold for really for ten years to put it into perspective the timeline actually now if you ballads or folia

with some marijuana bonds i think a golden gunja would make a really good well balanced portfolio you've got the slacker play you've got the welfare bomb play you've got the inability of america to compete in the global market play with your guns or bombs and then you've got the rest of the world dumping the u.s. dollar and going into precious metals on the gold side so you're going to be making money on both sides of this portfolio i like it so previously you were recommending hard assets and now you're recommending high assets that's right heart of high asses keep it hard enough. well speaking of this rebalancing of the global economy and dumping of u.s. dollars that you were referring to headline reads swaps show who's in towel bonds approaching treasury yes at a time when governments around the world are facing growing debt china is bonds are becoming almost a safe as the u.s. treasuries and the market for insuring against defaults well those that u.s. treasury bond mark. it looks really weak the global investment community

governments around the world they are trying desperately to get out of their us dollar bomb positions they want to escape the nightmare that has banned post world war two brand woods u.s. dollar reserve currency stranglehold and as peter schiff our friend peter schiff says often the u.s. is the caboose that's holding the rest of the world economy back and the the world wants to cut themselves loose of the caboose the u.s. dollar even warren buffett was in europe trying to buy into euro and other denominated assets but nobody wants to sell to him because they realize the dollar is a dire currency actually do your own head of research ask more investment management in london in this article in bloomberg says chinese policy makers want to be seen as a stabilizing factor they want to become a reserve currency and they will become a reserve currency so this is the one story that you and i have been talking about

since the beginning of the fear is that something to look for for two thousand and ten is the currency war that's right that was a major theme we identified had the beginning of the year currency wars as the global economy has shifted out of manufacturing and away from. export import and judging each other's currency based on things like trade balance and savings rates and has moved into a purely financial ization type of qana be where it's algorithmic trading computer trading robot trading to go with drone you know it's a fantastic analogy in america these drone warfare to go and strike people and many times civilians you know the america kill civilians in pakistan every day now as part of their need to blow up bombs to enhance their g.d.p. that now they have drone computer programs that go in there to try to scout pennies from their own. workforce i mean america is openly committing what's what is it

when the your country commits suicide. countrysides nations as well as everybody's getting worried about their rebalancing to shifting away from the u.s. empire over to something in asia and remember geitner is coming out tomorrow with his report about whether or not the chinese are manipulating their currency headline reads suddenly everyone wants to know what the plaza accord is so this is from joe wiesenthal a business insider and he's referring to people searching and this is the chart you see here is google trends they're searching for plaza accord which is the one thousand nine hundred five intervention in the currency markets but if you look at who's searching it's mostly from hong kong and singapore where all of the world's wealth and capital and savings reside well look the u.s. is going to wake up one day in the very near future and find that ghastly this two

or three times higher price food is already skyrocketing in price and they'll have nowhere to turn their government is not controlled by corporations barack obama is a puppet of the corporations he is completely an empty suit he's a mensch candidate up there representing monsanto and exxon and coca-cola he is he has no connection to the people whatsoever is going to be defeated this you know looking at in trade they have a chart which determines the probability of the democrats and the left corporate side of the equation losing the house of representatives in this upcoming election that's about eighty percent now a probability they're going to lose well it'll be better for our show because of course barack obama as dull as dull as gordon brown was yeah at least with the republicans you know you had george bush falling off a segway and choking on pretzels you have christine o'donnell i don't know if you saw this the senate candidate for the republican. party in delaware this is just

the first two seconds of her recent political ad her first ever i'm not a witch wow that says a lot she's not a witch. and you have to deny it of course openly for america however they may just need a way so it might be good news if she is because look everybody is relying on magical thinking and you see that in the headline global finance chiefs task i.m.f. with calming currency tensions so all the as you know american and european countries are seeking help from the i.m.f. here's the first thing that i am left comes out with the past week and i.m.f. calls for a new round of huge bank bailouts shock that's a new sudden magical thinking that happens lenders across europe in the u.s. according to the i.m.f. are facing a four trillion dollar refinancing hurdle in the coming twenty four months and may still need to recapitalize particularly they say in spain germany and the

u.s. yeah well that's true that's right you know because all these national governments are deferring now to the i.m.f. and the world bank so you are having the emergence of a post this is one of boils down to it's post america world people can say what is this new world order it just means that america is no longer the force that it was they were moving into a post america world you know a configuration of the economics and politics and that's the new world order to post america and you know america has done anything to distinguish itself in the past twenty or thirty years to keep the whole of the reins of power and they've done everything to let go of the reins of power and the people inside the united states especially after nine eleven you saw basically the rich just confiscate all the wealth that they possibly could knowing that the end was not the rich have always use the i.m.f. to steal wealth from mostly the developing third world if you read the quote from the i.m.f. you'll. see that this is exactly what they have

a mind and what they've banned doing over the last two or three years progress towards global financial stability has experienced a setback since april due to the recent turmoil in sovereign debt markets so they're saying it's the sovereign debt that's causing the crisis to continue and the sovereign debt of course is because they are you mad as encouraging all the sovereign nations of the west to bail out these bankers who have attacked the economies suicide bankers but that's the best the root of the problem and they follow this corrupt ideology of free market fundamentalism and so you break the spell and christine o'donnell and me maybe she we need a witch break the spell of the indoctrination of free market capitalist ideology which is the most radical extremist view of any group in the world these neo liberals in washington and on wall street are the most radical extremist suicide

banking group in the world causing much more damage than ten thousand elka it is well of course those neoliberal. economics introduced into america was called by george bush sr to do economics and we're doing now which is are often scary they come out of hollowing was just coming up greenspan says us creating scary deficit as borrowing rises there's a warlock for you. were at rock to crawl out from under greenspan i mean seriously here's a guy who threw the entire u.s. economy under the bus so they could win you know a knighthood from the queen of england i mean if that's not journey for american i don't know what is and now he's saying you know what actually i did cause this catastrophe and i want to buy more and more books well his quote is we're involved in a dangerous game where increasing the debt held by the public at a pace that is close. the gap between our debt and any measures of borrowing

capacity well stop borrowing just like he acts like it is probably doing it's these bankers his cronies his friends yeah again this is the ideology of a psychopath and we need witches and government to break the spell of the economics is exactly right christine o'donnell should play out that she's away and not try to distance herself that she's away from her witchcraft past and the final headline yeah those corrupt us sister you know and it offers a new max keiser prediction ok to leave many of your so come true most are home oh most all of my predictions invariably come true because i like here it is why i have no need for a national foreclosure moratorium a top white house adviser question the need for a blanket stoppage of all home foreclosures even as pressure grows on the obama administration to do something about mounting evidence that banks have used in

accurate documents to even toll more. forged documents they forged documents i mean i worked on wall street a long time and all the documents are forged for expediency sick and then they packer's all these fraudulent mortgages and to bundles into securitizations into mortgage backed securities and they sold wanted banks frauds of the money so they sold them a bag of worms all these banks especially in europe they're holding these collateralized debt obligations these trove of high yield mortgage debt that is not you know worth anything so my prediction is that this will have to lead to a bank holiday like we saw in the one nine hundred thirty s. we're going to have to close the banks to sort this all out and oh by the way while we're closing the banks to sort out the mortgage mess let's reconfigure the global currency grid and oh by the way the u.s. dollar will be fifty percent cheaper versus other currencies when this whole thing reopens again oh i guess that means in the u.s. your energy and food costs just go up by six or seven. percent overnight and that's

the way it goes and to pay for it we're going to have to take back all your social security benefits but have a nice day and vote for whoever else is boring on behalf of the corporations so you too can drive yourself into an early grave over there in the us because you are lacking in all self interest whatsoever well stacy herbert thanks again for being on the kaiser report thank you max when we come back i'll be speaking with the famed economist over there i tulip dot com eric jensen. every month we give you the future we'll do you understand how we get there and bring the best in science and technology from across russia and around the world

join your knowledge on our cheap. welcome back to the kaiser report time now to go to massachusetts to talk to author and blogger eric johnson eric blogs at i tool dot com where he has written about the pending global debt collapse years before it happened eric's latest book is called the post catastrophe economy i'm all in a copy right here pose catastrophe economy rebuilding america in avoiding the next bubble i just finished reading this for my second. eric welcome the kaiser report. next right eric jansen introduce your book with a vivid description of the modern day dystopia that is that america of abandoned housing projects millions of unemployed tell us what is the fire economy how big is it what's its role this ongoing economic. the collapse of the fire economy is

a term used to refer to an economy that is overly dependent on the finance insurance and real estate sectors of the economy and this is an economy that's developed in stages since the early one nine hundred seventy s. but the most significant growth in terms of living in one of debt bond happened since ninety eight the biggest dynamic to create it was the walker fed in the late one nine hundred seventy s. and basically what happened was we had this huge spread an interest rates in oregon to do what the economists are a couple recessions and cut up a massive inflation spiral which is threatening to turn into i profession are now in the book you describe the inflation deflation debate which is raging in the blogosphere there you come down on the side if i understand correctly of what any old dr doolittle story was the push me pull you the two headed. camel that is

both inflation and deflation pulling at each other simultaneously with the resulting stagflation well i think i understand this is of the hardest part for people to wrap their heads around is that well i want to con we really have two countries where this finance based economy and we have what we think of as the economy a pretty easy isn't consumer right through the producer and consumer economy is employers are the people salaries in the salary wage earners become consumers to go buy stuff from producers and that's the only thing the economy is this cycle of payments between producers and consumers but then you have this fire economy that operates in a very different principle that runs up the fees and interest and on capital gains from asset price inflation all right now in the book to do a great job and describing how the way it's set up the system. and it. asset prices

go up to reward those in the fire economy while simultaneously keeping the wages low which is completely against of course the mandate of the fed was a supposed to keep you know prices stable and full employment but then the way it's constructed and it just gets worse is that the one side of the equation they enjoy rising asset prices whereas workers and savers are continuously getting. pushed to the side and that gap is opening up wider and wider view is that a fair characterization well. being explained that there are these two economies and from a low monetary policy standpoint they are managed independently so the objective of monetary policy for the producer consumers economy is primarily to maintain low wage inflation because that's the transmission mechanism of inflation in commodities into the real economy and that's again the cycle that we had no

conception is this mission is not what that happen simultaneously the fed's mission and this is unstated is to provide continuous as a price inflation and that's generally done through a low interest rates lack of regulation. and also as we go along with subsidies and supporting these from a standpoint of orthodoxy. that so the what's like a good thing to do and you can course play back any of the things i mean spend saying during both dot com and the housing bubble justifying. these policies including asset prices or just out to crashes then the policy as a ship pretty quickly to preventing asset prices from crashing because then what happens is that the class and fire economy spills over into the so-called real production consumption which happened in a really serious way that the thirty's happened somewhat in japan. since the

midnight in ninety eight and is playing itself out in its own way there are now so those the people the folks in the united states are a gassed up this growing wealth and income gap and the growing problems due to the d.n.a. industrialization of the economy and we'll get to your your second half or your part in a minute here we're talking about how to or you know rebuild the u.s. economy but the folks are getting paralyzed by the way that the set up is now is it correct to say that their biggest enemy is the fed because the fed is really the source of all the spier economy and by getting rid of the fed isn't it wouldn't that kind of start to really level the plank failing but where i can download this get rid of the fed argument is then replace it with what i mean i i strongly suspect that if we were to get rid of the fed the fed the role that the fed plays would be replaced with something even worse than that the problem is that it's an institution and like any institution it is its feet

a viewer it is so operation depends on the guys who are running it and the ideas in their heads and i think that both our problem right now we have the wrong guys and the principles that they're operating on are the wrong principles so the real the fundamental problem here is not any one being necessarily being a good guy or a bad guy what happened when these interest rates really high in the start to come down we use his hands he spread the let's call a fat spread on says what richard can cause i don't think it's a good term because what was happening was the wholesale price of money that could actually barley that was falling rapidly but the retail price for that unit was not and so that spread between what they pay what they charge for money get bigger and bigger and what happened was when the money the a more profitable increased in things so rationally within the operation of any economy industries going to tend to go for the it's the most profitable and the most. that's why

a car company is in the words of one ford executive i got to when i was rather the we beat him you know for a nice to be a car company that wanted money on the side and then it became a bank that made cars on the side because it was more profitable so final problem was that the incentives in the economy got completely perverse. and the more. the more money that was being made in this financial part of the economy the more influence that part of the economy had over the financial over the political system really became a self reinforcing cycle all right now during the two thousand and eight crisis the ongoing crisis trillions of private bank debts were transferred to the federal reserve bank now ok i understand that your point is that the federal reserve as an institution can function in a way that is as per designed a benefit to the economy currently is not being managed to that extent tell us what

happened to those trillions of dollars that the fed now are they are going to be able to exit this situation where they do with these loans are they what the current policies are they as crazy as some believe that they are you know a good back in the early days of this inflation deflation debate. in and out argue with guys like. crawl down. much i walk in there and tell me you know i see what all those classes. were knocking out of deflations far what you guys are are forecasting is that that's going to take all this bad debt and put it on its own downstream to the to the magic of double entry bookkeeping is going to show up one side of the balance sheet is an asset and the other side is a liability to the balance such as thirty five billion although there are there downsides to expand by a trillion or two or whatever it takes it toll it was garbage that can't possibly happen you can surcharge and blah blah blah and of course that's exactly what

happened and so now we have all the step in the balances that obesity is that going to get mark to market if you go look at the record market process back securities it's quite strong i think one point six to eight hundred billion dollars and the difference is now sitting on on the fed's balance. unmarketable they can't sell it there's no market for in a market there's no private market for any of this stuff so the question is how do they exit what happens if they don't and i suspect that's one of the reasons why we're seeing gold prices go up because there's a general concern that the currency of a country that has a central bank that's operating this way is well says for this way in the long term it's going to really cause people to question whether the central bank really is pulling in or not all right so in the book what's the catastrophe khana me the idea of a guest on early currency crisis and hyperinflation is given

a low probability sense the book has come out it's been out now for a few months as the probability of that eventuality increased and i came up with is there an economical kicking there in basically the idea is that we don't need to print one of money to have high inflation a century on the dollars that we'd ever need to produce high inflation is going to have already been printed and residing in central banks and private accounts over there all over the world and all that has to happen is for the saudis were never goes to come on to get repatriated because people are worried about. you know the dollar depreciating in a disorder away and the process is like a run on the bank that causes the outcome that everybody fears so that really does the back try to take the money out and the bank does collapse when you do that because they're afraid the bank is going to collapse because the event that they're afraid of so that that dynamic could result was a potential for that dynamic. and the one thing that many good. is that over

a guess or on dollars. that the political causes of that of the crash in china in the u.k. and europe and other creditors is is very very bad and so the way the system works i come back in two thousand and six at all the nutrition the destruction that's essentially the dynamic of our global monetary system that there that everyone is motivated to not what that happen because it will be a political disaster for everyone so they're trying to work out a process of decommissioning the dollar as the primary reserve currency and that's what we're seeing today is a lot of pushing and shoving because the obvious big loser is going to be the united states anyway ok tell us about the other side of this catastrophe what you call the g.c.i. economy transportation energy communication and infrastructure what the f.s.s. energy the backlog for all that it is that we're going to have a second energy crisis and the first one was in two thousand eight. hundred forty

seven dollars a call the peak oil cycle so i don't know the big spike in oil prices now perceptor they probably another not a recession. get ahead of three cycles a crisis we need to vastly reduce our need through our own oil for transportation is countered and we do that through various kinds of conservation and the stock economy is a way for us to the focus of our entrepreneurial energies interest in to solving a problem and shifting the economy's focus away from finance and back toward production are the biggest cause of pasta tassie academy pick it up at your favorite bookseller amazon dot com comes a vibe that it's a hands quick and that aircraft that thanks for being on the kaiser report it's rather than it's already and that's going to do it for this edition of the kaiser report with me back kaiser with a cold and stacy herbert and if you want to send me an e-mail please do this at

kaiser report at r t t v dot ru until next time this is nice guys are saying body all. i know.

if. chevy's kicks off a diplomatic tour in moscow as russia and venezuela seem to pull together and shake up the balance of world power. dora's box opened women in u.s. politics are accused of playing dirty swaying voters with emotional tactics where they like professionalism. and russia's formula for success hosting the twenty fourteen winter olympics simply isn't enough for the black sea resort of sochi now it's racing head toward premier motor sport to. this is our team from moscow welcome we've just shown to us this hour it's eight pm

this thursday evening here in the capital i'm kevin zero in on the top story and russia and venezuela are two countries seven shaking up the system so that the global balance of power is more evenly spread chavez has come to moscow to nail down cooperation which is so important to the south american republic to strengthen its standing following the first leg of the president's diplomatic to put across the story all day good to see you not having frequent guest in moscow is the what's so special about this visit. yes of course this is actually this one is that with the russian capital but moscow moves well they never seem to run out of things to talk about and this time around they also have center to discuss on the agenda for most of course. here russia set up. just deal with these here there's also this military cooperation with moscow selling things i buy their tickets to this well there's also this is a bit discussed healthier.