vs the speculators now time magazine's pick up on the thread talking about the imminent civil war in america stacy herbert tell us more maxwell that time magazine headline reads will the federal reserve cause a civil war so they're following up basically on a zero head article in which they predict that the fed's meeting next week november third might lead to civil war due to the quantitative easing that they will introduce and they said that in a very real sense bernanke you throwing granny and grandpa down the stairs on purpose he is literally threatening those at the lower end of the economic strata along with all who are retired with starvation and death that's right this is monetary policy that will result in starvation and death how does this work in other words to keep the speculators in business to keep the money flowing to the

banks that have been caught fraudulently selling mortgages foreclosing on mortgages and repackaging mortgages and then making negative bets on the same mortgages using credit default swaps to keep those guys in business they want to keep interest rates so low that people who rely on income for food for sustenance are literally going to be dead on the street they're using monetary policy in this way ben bernanke and he has a lot of blood on his hands and the way time magazine is positioning this is as a civil war and that's exactly exactly what's going on and savers versus speculators it's the same all over the world and this is the exact same conflict with c. and confident all europe or the folks are on the street riding and we see this down the u.k. with the u.k.'s announcement to cut back and impose austerity measures once again bankers are given all the money they need everyone else is being. to live in the

street in the gutter i mean this is going to obviously result in massive uprising and riots and and war of course well there is another person speaking on this and that's chris whalen who is an institutional risk analyst and he was also interviewed on bloomberg news talking about this foreclosure gate and the fact that barack obama is just like herbert hoover and in not understanding the situation and here's what he says on bloomberg i think it's much the same as it was in the twenty's in the thirty's good government didn't realize what was happening but i think leaders are caught in the same problem when you foreclosures what's mixing going to happen not a federal more korea but a loan term moratorium by lenders who can't deal with their backlogs anyway we're going to have state moratorium the way we did with the reduced yappin the governors of those states are going to search folks stay in your homes keep paying your property taxes to default on your mortgage yet once again civil war in other words the states are going to instruct people not to pay their mortgages to pay their

property taxes yeah but to not pay their their mortgages and the federal government even if they get involved the states and the federal government are going to go to war over this issue we also mention that this is what happens during massive deflation if we remember that's the key concept there isn't flesh and theoretically if all the money that the fed is printing causes the money supply to expand and for there to be a reversal in all the damage being done by the bond market imploding as it is or deflating but so far we haven't seen any evidence of it the primary threat here is imploding bond market i.e. deflation one thing that is different between now and the great depression when the states did this before as he mentions is that the state militias the national guard are all over in iraq and afghanistan but the potential for. civil unrest in the united states unlike let's say when the soviet era. economy

collapse the state was still very much involved in providing essential is like transportation and food except in the u.s. none of that exists so instead of falling out of a one story building as dimitri all off is written about and brilliantly in his essay it's like falling out of a twenty story building and so this is good be i'm glad for a few thousand miles away from that mess well more on civil war here's a headline along this track new york fed face this inherent conflict in mortgage buybacks so the new york thread along with pimco is suing bank of america and this is trying to force bank of america to buy back these bad home loans forty seven billion worth and the reason why the new york fed owns these mortgages is that they acquired this debt when they rescued bear stearns and right so you see their plans ping pong game back and forth with each other and the fed is supposed to be a lender of last resort have some function in the economy but what happens is they

buy all these bad debts and they sell them back to the research your ties them and they put some of that off the balance sheet and then the commercial banks will look at that for a while they don't want to have to deal with it so they repackage it and sell it back to the fed and this goes on and on and on to the point now where nobody knows who owns what and there's no way to have any accountability whatsoever so the only solution is the atomic weapon solution of quantitative easing and let's keep interest rates near zero which as we've pointed out all the savers and all the pensioners and anyone who wants to get a decent wage for the hours that they're working are being penalized so there are some surprising the savers are subsidizing the speculators the savers the workers the pensioners are subsidizing the pathological incestuous may. psychopaths on wall street we see this conflict between wall street and the entire rest of the u.s. population when bloomberg says. the new york fed trying to force bank of america to

take back these bad mortgages may be at odds with its mission to ensure the stability of the financial system so they're basically saying that the the entire financial system has been rigged to explode at the least amount of accountability by the bankers and so therefore the fed and no politician for that matter can ever operate on behalf of the population because it is literally rigged to blow this financial system and the wall street bankers contain can manipulate anything now how is that different than suicide bombers i mean these are suicide bankers who say they're rigged to blow they say give us more money or we're going to blow up the system you know how assange paulson jamie diamond lloyd blankfein how is it different than some guy in a cafe in television strapped with some c. four who's going to blow himself up for his ideological cause these guys are blowing themselves up their banks are suicide bankers and they're threatening the

global economy in the u.s. economy therefore they qualify as terrorists and i say this not as a rhetorical device but as a statement of fact there are as time magazine point out they put innocent people to death using suicide banking techniques that's a that's a terrorist you put to the casualties or the innocent civilians that do you've gotten caught up through this group punishment by their suicide banking how come they're not in guantanamo bay how come you know lloyd blankfein is not in a small guantanamo bay like cell right now having is orifices probed by curious u.s. servicemen you know the midterm elections are coming up and everybody's pretending that these tea party people are all going to be about rescuing us from these evil bankers because that's exactly how it started it was a reaction against hank paulson and george bush rescuing the financial system here . here is a headline by

a co-founder of the tea party karl down into who we have had on the show before to the tea party go screw yourself eloquence karl as always well this is on his blog and at first he threatens to sue the tea party for using the phrase tea party at for defamation and then he says yeah that's a joke but so are you all of you especially sarah palin newt gingrich bob barr and douche bag groups such as tea party patriots and he points out that he's gone to several meetings as a leader of the tea party and it always descends into guns gays and god and they talk nothing about the banking oligarchies and these fraud after fraud in the last two or three weeks leading up to this election season they have said zero about it so he implies that the tea party is now quote nothing other than the republican party stealing the anger of a population that was fed up with the republican party's own theft of their tax money at gunpoint to bail out the robbers of wall street and fraudulently

redirecting it back toward electing the very people who stole all the bleeping money plus propaganda remember hitler came out with a propaganda film triumph of the will which glorified the child naziism and this is what basically sarah palin has been co-opted by the republican party and the koch brothers multi billion dollar mottos down there for it to nowhere as well america who tap into the fact that sarah palin's got a cute ankles and they spin that somehow into a propagandist film to convince millions of people that they should forget the whole constitution thingy and focus more on how to make the koch brothers more money it's become a cult of personalities i mean sarah palin is a personality cult she represents the same thing that hitler represented which is that if you forget your fellow citizen here you forget your neighbor for a moment and think only about yourself and the. possibilities of being

a venal vainglorious so sooner or moron you too can get ten or twenty million dollars from william morris or whatever town the engine is by stumping in front of millions of propaganda issue that at the end of the day only make the same frickin corporations richer that's all it does well on a headline on that the final headline max conservative ultra rich plot their takeover and this is from huffington post talking about the koch brothers apparently that emerged in february that quieted the takeover of this while the good in the winning of this new these the midterm elections and at the meetings were glenn back karl rove justices scalia and thomas but there again these are the the ones financing the demagogues the likes of sarah pailin the likes of christine o'donnell who just this week had no idea even what the first amendment was that she claims to be a constitutional expert when it was later revealed that she spent seven days in

a health and hotel somewhere studying the constitution as it was printed up on a placemat at the local diner i think that was or saul educational course in terms of constitutional expertise look i mean the koch brothers that you know going back to world war two six million guns in aerated the koch brothers objective is to incinerate six billion in with their basically global warming man made global warming is the basis of their empire they won't be happy until everyone is basically charcoal so sarah pailin those this and she just wants to make a few bucks on the way to the bonfire of what was called humanity all right stacy her thanks so much for being on the car as a report thank you max well when we come back we're talking with james howard kunstler he's got a new novel out very interesting stuff don't go away. rolled

into the. to civilians contain explosives intentional bacteria strikes to limits to c.e.o. slugs militia go magic has better planes in the sky and seeds of hope to protect our hearts the others i mean we can provide such accuracy news to many forms of modern technology update here. we've got the future covered. time now to go to new york to talk with author blogger expert on urban development james howard kunstler author of the new book which your favorite james welcome to the kaiser report nice to be here max all right i want to ask you about a front page headline recently featured on huffington post called twilight of the

suburbs the article highlights the exploding poverty rates in the suburbs post financial collapse now you predicted this as far back as one thousand nine hundred four in your book the geography of nowhere how and why did this suburban disaster happen how much worse will it get james howard kunstler well it was sort of self-evident that these suburban living arrangement was a way of life with no future and i've been referring to it for a long time as the greatest misallocation of resources in the history of the world and you can call it that because you know it's quite simple we have a problem with our energy supply we have a problem with oil and american suburbia was designed to run on oil and it's not going to run a thing else and so you know we're going to see a very complex kind of disintegration of it that will express itself in

a lot of ways and you know the first way that it's expressing itself is the tremendous distress in property values and in the financial health of households now your. promise here goes along the lines of what many call peak oil and they write many detailed white papers on the subject in the late great matt simmons of course wrote a wrote about the twilight in the desert about peak oil but the book the witch of hebron is a novel so it's a it's a story about what's up why did you choose to write this as a novel not as fiction as opposed to nonfiction well i wrote. a nonfiction book published in two thousand and five from the atlantic monthly press it was called the long emergency and it was explicitly about the global oil predicament and how it would converge with things like the global warming problem and the

financial fiasco to create an era of hardship and vicissitude that would go on for a long time and after i wrote that book i wanted to depict what that life would feel like what the texture of that life would be in a post-industrial collapse america post oil america so i wrote a book called world made by hand it was a novel and the witch of hebrew on is a sequel right now reading the book. eve got really within this catastrophe there's a ray of hope actually for our future which gets back more era in american history of self-reliance says let's say personified by the folks of emerson or third row and getting back to that kind of america on walden pond and of course walt whitman's classic i hear america puking updated for the twenty first century but what what's your comment on this well that was

a very explicit agenda of mine i wanted to get it was you know i want to get across to the public that leaving behind many of the modern conveniences and blandishments of of our age is not necessarily going to be a terrible thing there may be a lot of benefits for us you know we're going to we may not have i pods anymore and in the book the electricity has pretty much gone out and so has the internet and we may not have those things but we're going to be working shoulder to shoulder with our neighbors and we're going to be working at things that matter not sitting in a cubicle we're going to be making our own music with people we know. not just buying kinda entertainment and we're going to feel the textures of life and nature again so you know the book that i wrote was not the road i was trying to write an antidote to the road to allow people to really feel the sensual beauty of a world that is no longer dominated by machines and the noise of engines and the

tyranny of the automobile right so the road of course is this movie that's come out recently a bit of a dystopian nightmare like the mad max movies about a world gone psychotic with the end of cheap energy but you've got a vision which is more as i were just saying here in keeping with a part of an american history which goes back to the era of self-reliance and which is interesting because this american character that people refer to as the most. entrepreneurial ingenious in the world of course it doesn't exist anymore so much because of the availability of all this cheap oil that has kind of been snuffed out or made americans life way too easy you know the the the economy runs on cheap oil and i mean talk a little bit about for example the suburbs and the ex-urbs and with the the how

once you turn the taps off on this cheap oil just talk a little bit about the chain of events the reaction reaction that occurs in the suburbs how the lights go out what it what happens well i actually saw the preview of coming attractions i was a young newspaper reporter in one thousand nine hundred seventy three and i covered the opec oil embargo in a pretty suburban area around the capital district of new york and you know you could see the almost instant failure of the suburban living arrangement but you know there's also kind of a there are series of mental failures that the american population is going through right now there are some very dangerous beliefs that have become normal. for example the idea that when you wish upon a star your dreams come true this used to be a normal idea for seven year olds in america now it's a normal idea for everybody and the companion idea is the idea that it's possible to get something for nothing which is what all the legalized gambling in america is

based on but also wall street and particularly the fraudulent operations of the past twenty years and when you combine those two ideas that it's that when you wish upon a star you'll get something for nothing you get the current temperament of the american public and it's a very bad mental space to be and i think right so last year i believe twenty five top hedge fund managers got a billion dollars in compensation each and you can argue that they don't really do anything except shuffle paper around and game the system and then the rest of america as you point out has become info in infantile ization has set in so you've got folks regressing to this state of literally looking for the next teat to get their free meal from they don't seem to have they forgotten the saul era of self-reliance and this whole era of can do but i mean it exists as a myth but it doesn't really exist in reality doesn't know but you know we're doing

an awful lot right now in american politics to prevent ourselves from getting beyond this and thriving and finding new ways to reorganize our society the financial fiasco is largely about the disappearance of capital you know and this was the capital that we hoped would be there to rebuild our economy to build a post. or oil economy right so when a bomb a talks about hey we're going to increase runways and freeways if else imagine that we're running out of oil now to get back to the point you were making about him. america seems to be completely missing the boat here a recent rasmussen poll out last weekend shows that fifty eight percent of u.s. voters think that finding new sources of energy is more important than reducing the amount of energy americans now consume and a majority continue to support the deepwater drilling despite the b.p.

oil spill so much more the same thing i guess you could say well there's another current of thinking or delusion that's abroad in the land is what i call techno grandiosity or techno triumphalism you know the idea that we're going to tech our way through this or that there's some set of magical rescue remedies that's going to allow us to you know muddle through the energy predicament and the truth of the matter is max that no combination of wind solar. ethanol bio diesel bio mass dark matter used french fried potato oil is going to allow us to run wal-mart walt disney world the interstate highway system the u.s. army and suburbia or even a fraction of it and the key to understanding where we're at is then and i don't want to be misunderstood because i'm not invading against alternative energy i'm

quite sure we're going to use everything we possibly can but we're going to be disappointed in what these things can do for us you know we're going to be disappointed in what they can do we desperately need to make other arrangements for everyday life in america the way we produce or food the way we inhabit the landscape the way we do commerce etc all right now just to fill in a bit of the economic punny holding this delusion to gather the peak oil and the peak credit are co terminus just as we've run out of credit supply through the continuation of oil into the economy as oil pete. it will also capitalize the ability to raise fresh credit so you've got these two things collapsing at the same time now let's move on to your thoughts on the us real estate racket what does the wholesale fraud coming to light tell you about america's financial system and what was once called the rule of law here the rule of law is very much on everybody's

lips these days it's the it's you know it in ten days it's managed to become a cliché although we didn't appear to think about it for the last twenty years and the trouble with the absence of the rule of law in money matters is that when it's not there people lose their faith in the operations of money and banking and when people lose their faith in the operations of money and banking money begins to lose its value and its legitimacy and it's a very dangerous game as joni mitchell once said you don't know what you've got till it's gone and we're going to suffer if we cannot reestablish that in money matters finally james our consular the republicans are expected to retake the house with those tea party republicans did it again several seats now are the tea party republicans set to restore the self-reliant american roots you imagine in your book

which. i think that both of the republicans and the democrats run the risk of undergoing what the whigs did in the late eighteenth fifty's you know that's the last time that the nation was in a comparable convulsion and the whig party disappeared so quickly you know and so and so thoroughly that people were looking under their teapots form like where the whips what happened to them and i think that the both the republicans and democrats are in danger of doing this although i am personally not a tea bagger or a tea party subscriber you know it seems to me that they're idiology is pretty incoherent in. kind of a combination of the old john birch society propaganda and you know u.f.o. lore so they're really just part of the general delusional thinking picture that's now rampant in the usa what happens if someone like ron paul would come up with a reasonable platform for political reform and then some shiksa gets involved like

sarah palin and willie morris picks up her account and it's all back to celebrity culture that's the arc of political progress in america today well maybe instead of a campaign we should just you know. have our politics all on dancing with the stars and it can be all about you know how well you dance yeah wall as long as the light seems to be where were ad at the moment right as long as the lights are on which requires cheap oil and that area is coming to a rapid close all right james howard kunstler the book is the witch. and it's a fantastic book it gives you kind of a real life fictional version of the apocalypse and to be upon us thanks for being on the kaiser report thank you for reading my book max and thanks to stacy too well stacy actually read the book and then she told me about it ok well there's going to be a quiz. all right well that's going to do it for this edition of the kaiser report out with me max kaiser and the book creating stacy herbert i want to thank my guest

james howard kunstler if you want to send me an e-mail please do kaiser report at r t t v dot ru until next time this is next kaiser saying bio.

you don't want to be german but want our benefits. message from some politicians who are immigrants in the country of failing to integrate for chancellor angela merkel says multiculturalism has failed its board and intervened on this divisive. deputy. is sentenced to death but some say the verdict is to distract from the wiki leaks exposé of secret american files showing the widespread killing and torture by the us backed regime which replaced the dictator. the russian security services and cut off an international cash supply funding terrorism in the north caucuses which they say had been behind a surge of recent terror attacks in the region.

broadcasting live from our studios in central moscow this is our team into gratian of immigrants into german society for a long and taboo subject has burst onto the political center stage with chancellor angela merkel's remarks that multiculturalism has failed failure to learn the german language ensures a big social problems say some politicians others accuse immigrants of milking social welfare while refusing to respect the country's a values despite the positive contribution many newcomers make to the economy sarah ferguson reports. then the language of get and accept. we need to have a place. the message to immigrants in jenin a integrating.