really for ten years to put it into perspective the timeline actually now a few 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 bum play 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 us 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 assets 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 us 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 market looks really weak the global investment community the governments around the world they are trying desperately to get out of their u.s. dollar bond 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 dying currency actually do your own head of research i asked 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 this here is that something to look for for two thousand and ten is the currency wars 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 with 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. 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 searching it's mostly from hong kong and singapore where all of the world's wealth and. capital and savings reside well look the us is going to wake up one

day in the very near future and find that gasoline this two or three times higher in 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 manchurian candidate up there representing monsanto and exxon kopek all he has he has no connection to the people whatsoever he's going to be defeated this you know looking at in trade they have a chart which determines the probability of the democrats 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 is dull as dull as gordon brown was yet 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's a lot she's not a witch. if 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 these 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 and magical thinking that happens lenders across europe in the u.s. according to the i.m.f. are facing a four trillion dollars. 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 what a 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 configuration of 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 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 stillwell for 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 toward the 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 the i.m.f. is encouraging all the sovereign nations of the west to bail out these bankers who have attacked the economy as suicide bankers that's the best the root of the problem and they follow this corrupt ideology of free market fundamentalism and until you break the spell and christine o'donnell and me maybe she we need to which will 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 ellicott as well of course those neo liberal. economic introduced into america was called by george bush sr due to economics and blue in 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. right 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 on tyranny 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 of my books what is quo is we're involved in

a dangerous game we're increasing the debt held by the public at a pace that is closing the gap between our debt and any measures of borrowing capacity will 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 that and we need which is in 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 system yeah and it offers a new max keiser prediction of good will leave many of yours have come true most are. almost all my predictions invariably come true because i am so 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 told more. forged documents they forged documents i mean i worked on wall street a long time and all the documents are for for expediency sick and then they packer's all these fraudulent mortgages into bundles into securitizations into mortgage backed securities and they sold wanted banks frauds of only so they sold the bag of worms all these banks especially in europe they're holding these collateralized debt obligations these try 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 but 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 sixty or seventy 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 running on behalf of the corporations so you too can drive yourself into an early grave over there in the u.s. because you are lacking in all self interest whatsoever well stacy herbert thanks again for being on the kaiser re port thank you max when we come back i'll be speaking with the famed economist over there i tulip dot com eric jansen. discover it.

with the wind. and become free. the. close up has been to the cycling region where the biggest russian salmon caviar processing factories located not only r.t. goes to northern paradise where many still live off the land. new ways are being found to fight a comic. first free elections retro. thousand years ago. welcome to the world preacher. rush a close up. welcome back to the kaiser report time now to go out of massachusetts to talk to author and

blogger eric johnson eric blogs at i tulip 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 and avoiding the next bubble i just finished reading this for my second eric walking the kaiser report thanks for having me on next right eric jansen introduce your book with a vivid description of the modern day dystopia that is an 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 collapse well the fire economy is a term well used to refer to an economy that is overly dependent on finance insurance and real estate sectors. me and this is an economy that's

developed in stages since the early eight hundred seventy s. but the most significant growth in terms will be one of debt bond happened since ninety eight the biggest donor to to 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 notice rates in order to get to put the economy through 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 you come down on the side if i understand correctly of what in the old dr doolittle story was the push me pull you the two headed. camel that is both inflation and deflation pulling out its other simultaneously with the resulting stagflation well i think i understand this isn't the hardest part for people to

wrap their heads around as well i want to continue really two countries where the spine is based economy and we have what we think of as the economy a pretty decent consumer right from the producer and consumer economy is employers are the people salaries in the salary wage earners become consumers you go by step them producers and that's the way they get the economy is this cycle of payments between producers and consumers but then you have this fire economy that operates in the data from principle it runs off of fees and interest and on capital gains from asset price inflation are now in the book to do a great job and describing how the way it's set up the system it it it helps 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 it was a surprise. you know prices stable and full employment but their way it's

constructed and it just gets worse as that than 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 ok so a feeling to explore that there are these two economies and from a low monetary policy standpoint they're managed independently so the objective of monetary policy for the producer consumer is this 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 what a good thing to do and you can course play back any of the things that mean spend saying during both dot com and the housing bubble justifying. these policies inflating 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 time in their production consumption which happened in a really serious what about the thirty's happened to someone in japan since the mid one nine hundred ninety s. and is playing itself out in its own water now so those are the people the folks in the united states are a gassed at this growing. often income gap and the growing problems did they

did the 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 they're 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 wasn't that kind of starts are really level applying fail a bit where i can download this get rid of the fed argument is and 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 could be replaced with something even worse than that the problem is that it's an institution and like any institution it is its behavior just so operation depends on the guys who are running it and the ideas in their heads and i think that both are a 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 anyone being necessarily being a good guy or a bad guy what happened when these interest rates really are in the start to come down we'll use this as he'd spread the let's call a fat spread on says what richard who calls it i think it's a good term because what was happening was the wholesale price of money that could actually borrowing 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 big money the a more profitable interesting things so rationally when the name of the operation of any economy industry is going to tend to go for that 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 news 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 reversed. 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 subtle are 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 we did back in the early days of this inflation deflation debate. in and out argue with guys like. crawl down. much a lot and they would tell me you know i see what one of those classes we were knocking out of deflation is far like you guys are are forecasting this is that that's going to take all this bad debt and put it on its own down to do the the magic of double entry bookkeeping it's going to show up one side of the balance sheet as an asset and the other side is a liability to the ballot such as thirty five billion or the other of that balance is to expand by a trillion or two or whatever it takes it toll it was garbage that can't possibly happen you could surcharge it blah blah blah and of course that's exactly what happened and so now we have all the stuff in your county that obesity is not going to get mark to market if you go look at the record market process backed securities

it's from a thing 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 you no 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 putting in any or not all right so in the book what's the catastrophe khana me the idea of a distorter link 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

a steering economical completely there in basically the idea is that we don't need to print a lot of money to have high inflation in this country 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 cycle never goes to come on to get repatriated because people are worried about. you know the dollar depreciating in a disorder a way in the process is like a run on the bank that causes the outcome that everybody fears so that when he does the back try to take the money out in the bank does class nature do that because they're afraid the bank is going to collapse so they cause the event that their credit so that that dynamic could result is a potential for that dynamic. and the one thing that many get it's a. is that all over again it's our own dollars. that the political quote says that a 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 of nutrition good structure that's essentially that the dynamic of our global monetary system that they're not everyone is motivated to not what that happen because it would 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 as well pushing and shoving because the obvious big loser is going to 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 to p.g.p. oil cycle so i don't know the big spike in oil prices now preserve today probably

another another recession. to get ahead of three of these cycles a crisis we need to vastly reduce our need for oil for transportation this country and we'll do that through various kinds of conservation. and this to me is a way to focus our own spiritual energies interest in to solve the problem and get shift in economies focus away from finance and back toward production are the biggest cause of polish catastrophe economy pick it up at your favorite bookseller amazon dot com comes to mind get it into your hands quick and that eric massa thanks for being on the kaiser report it's read that 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 so at kaiser report at r t t v dot ru until next time this is nice guys are saying bye ya'll. are known to.

all of us lot of americans are poor americans so far from god and so close to the part of the yankee empire that is hurt our confidence so badly chavez didn't miss the opportunity to slam the u.s. but reassure the russians of his brotherly love the first day of his diplomatic visit here to moscow. pandora's box open women in u.s. politics are accused of playing dirty swaying voters with emotional tactics where they lack refreshments. and russia's formula for success hosting with twenty fourteen winter olympics simply isn't enough for the black sea resort of sochi now it's racing ahead to welcome some premier motor sport.

this is our team from moscow welcome it's midnight here now in kevin over the top story into russia venezuela are two countries set on shaking up the system so that the global balance of power is more evenly spread. his has come here to moscow to nail down cooperation which is so important for the south american republic to strengthen its standing in english has been following the first leg of the president's diplomatic. blasko means well it never seems you're not all things to talk about and this time around they also have plenty to discuss on the agenda but first and foremost of course there is no reason to steer russia in as well the house up which will ensure there's also of course military cooperation with moscow selling tanks to fighter jets in tunis well but there's also the issue to be discussed else there russo been as well a bank that has been in talks since two thousand.