this history still keeps it secret but now it's time to reveal it in the soviet files house on the embankment. with the twenty four hours a day this is from the russian capital time. main news stories this hour. committed to supporting independence of the palestinian state capital in east jerusalem to be. his middle east visit as the russian leader meets with his palestinian counterpart left on the sidelines due to political infighting. and blames russian air traffic controllers for the plane crash that killed polish president lech kaczynski in april. the official investigation that cited pilot error and bad weather as causes of the accident. and anger is boiling over in the

u.k. as banks by taxpayer money planned to handle billions in bonuses. in the rest of the country and public pressure to limit the pales. when i would get a break in transmission in about thirty minutes from now due to technical maintenance but i will be back with all the latest news at seven am g.m.t. tomorrow before that break their financial guru. asks if americans should return to the gold standard and rely more on precious metals rather than the u.s. dollar that's in the cards report next. i am asking as are and this is the kaiser report you know there's a lot of crazy stuff going on around the world with the weather and with the

banking system i call it the eco eco disaster and it's all tied to cheap money stays here were taught to me that x. the first headline is you're insane if you don't own gold investors told so this is a little clip here where robin griffiths from cazenove capital is interviewed within the bigger picture which the downtrend in the dollar is all some really powerful and when i think when the most important call to give is jew bill gross has made this call it's vital to get yourself out of the dollar on any significant rally continued into an account a currency that is going to be printed virtually into oblivion that's the official policy is crazy you need to the current rally in the dollar is actually a great selling opportunity and it's crazy to own a currency that's going to be constantly printed i'm guessing then you are bullish on gold absolutely right i think not saving gold is a form of insanity he'd made even unhealthy masochistic tendencies which might need

medical attention and it's not just gold even the base metals copper and all those have made new all time high breakouts which is always and everywhere a buying signal so real assets page paper money being printed into oblivion so you go to gold and you go to other commodity related investment still oh yeah you'd be crazy if you are still in that paper stuff in zero member the crash j.p. morgan by silver a campaign that went viral went global it's got people all over the world buying server i have upped the arms right. against j.p. morgan in the paper money. as i call them i got here a new rubber stamp it says cresc a p morgan by server and i still. paper money with this christian p. morgan by a silver stamp and i circulate this money throughout the economy all over my euros

and my dollars wherever i go to get the me the message around the world get yourself one of these rubber stamps and get the word out croes j.p. morgan bust over what else are you saying that people except your obama dollars. will bomb dollars in europe they do because they're still fascinated with obama they don't realize he's just a j.p. morgan puppet so this man is saying that to own to not own gold is insane and you know the mainstream media including the j.p. morgans of the world who support this fee out currency reason will tell you in fact you're the insane one now we're going to show you how insane it is to believe in that currency system that relies on these banking criminals that we talk about to maintain stability to dead four injured in chile gas hike protests so protest over gas price increases of seventeen percent are intensifying far southern chile the protests of the first major political challenge to face chilean president sebastian

pinera this year he made a campaign promise that gas prices wouldn't rise but the state owned petroleum company has had trouble maintaining supplies then why are gas prices going up is the demand suddenly shockingly high or no the supply of cheap money is quantitative easing quantitative easing three quantitative easing four that's what's driving the price higher it all goes back to cheap money in these central banks there are the root of the problem recall we just interviewed who mentioned that the lane central bank only a few weeks ago started printing money to buy dollars in order to suppress the price of the value. their currency so it's part of the currency wars as well but right currency wars are upon us and with every war there is of course propaganda so you'll find people writing stories as you are mentioning here that's propaganda this is the tokyo rose of the currency wars trying to put out the bad word but here is propaganda as you're talking about meet the central bank chief who is reckless

money printing is causing commodities spikes and riots worldwide this is from business insider chief paper bug joe wiesenthal there as we always tease them he is saying that the people's bank of china and their central bank had is the cause for these riots because they're the ones causing inflation and he shows the m two money supply chart in order to back up his claim joe is a ball is a propagandist obviously the us dollar the federal reserve bank of the world reserve currency is the source of all of this cheap money not china china's just trying to respond to what's going on the fed should want to joe wiesenthal the superbugs will crush you well there are some people about being insane and we're we've been talking about these riots and food rising commodity riots happening around the world and in one of the locations in india of course where we've seen some protests over food prices and inflation and commodity prices now here's the headline where you might be able to read between the lines india iran mole over

gold for oil for now so india is determined to ensure a steady crude oil supplies from iran and is even considering settling payments with gold in the short term before that countries agree on a mutually accepted currency and a bank to clear the transactions there's a mad scramble for gold by these countries by these central banks because they realize that a global gold backed currency is coming remember medvedev holding up the gold coin at one of the recent international concepts he knows what's going on we know what's going on in india know what's going on here and you could perhaps look at the. says diplomatic way out of saying we're teaching the dollar india is you know an ally of the us and how do they ditch the dollar without causing turmoil in the markets or upsetting their one of their benefactors well let me make this following prediction china is buying european bombs why are they doing this i

think it's because at some point they will demand payment in the form of gold you know in the european zone there are about eleven thousand tons of gold which would be the highest concentration of gold in the world higher than even the u.s. is a thousand tons of gold china moving into europe buying those bonds of course europeans will never be able to pay off those bonds because their economies are in freefall and then china will turn around as if you can't pay as back in euro's but will take the payment in gold and dissipate this into context india imports eighty percent of one hundred eighty four million tons of crude oil every finds every year so this is another thing in this commodity insanity tied to the central banking money printing insanity is you're going to a lot of these countries have to import many of the commodities that they use and consume number one being energy and how are these people going to compete while also racing to the bottom with their own currency that's correct it's

a cluster of currency manipulation and post nineteen seventies petrodollar for cation now at the top of the show we also mentioned that crazy people say crazy you go a little crazy. crazy not me obscene j.p. morgan's c.e.o. diamond says more us minister pallet ease may file for bankruptcy so this is j.p. morgan chase chief executive jamie dimon and he says he expects more u.s. manesar polities to declare bankruptcy and urged caution when investing in the two point nine trillion dollar public debt market in the united states. jamie diamond the to suicide banker in a financial terrorist because memory if memory serves going back a ways what's the other part of this i think there's another part of this whole thing many of the municipalities right now are going bankrupt because of declining revenue but they were started down that path of bankruptcy you might recall by

headlines we were covering last year this is from two thousand and nine j.p. morgan settlement bank to pay see over seven hundred million dollars over charges of illegal payments so j.p. morgan chase last year agreed to pay seventy five million in fines and forfeit six hundred forty seven million in fees to settle federal regulators charges that it made unlawful payments to friends of public officials to win municipal bond business in jefferson county alabama and just and december of last year some j.p. morgan municipal bond traders actually pled guilty and to criminal charges roy so couple years ago j.p. morgan vulture capitalist fly into these municipalities they load up the municipality with toxic debt they engage in debt swaps convincing the local rubes that somehow they're going to lower their interest cost of course they are lower

for the first couple of weeks and then boom their skyrocketing bankrupting the county flashforward two years jamie doesn't predicts trouble for the reducibility who can't pay their debt. ok now if that's not the very definition of financial terrorism throw away your dictionary and buy a new one diamond is a suicide banker he's a threat to society worse than sarah palin and it's kind of the equivalent of recall. a year ago two years ago when goldman sachs was advising clients to get out of greece knowing that they had sold them the credit default swaps to hide all their bad debts now j.p. morgan is the number one player in the whole municipal bond market so they would know how much dodgy collateralized debt swaps and all sorts of crazy stuff isn't there and the defense both goldman sachs and j.p. morgan is is they say we're making a market which is a whack

a mole defense because you can say anything is making a market it's completely vague to say we're making a market or supplying liquidity this is another thing you'll hear lloyd blankfein or jamie diamond say both of those reasons are made up concoctions that they pull out of their nether regions that mean nothing and anyone prosecuting these guys should hold them accountable for basically making google to go and looking and committing acts of financial terrorism. and we've also mentioned the shooting rampage in arizona and week or two ago. here's a headline in response to that this is a very american story firearm finance american gun industry thrives in any economy and glock sales surge after shooting so instead of hurting sales the massacre had the four hundred ninety nine dollars semi-automatic pistols popular with police sports shooters and gangsters flying out the doors of a glock meister stores in mesa and phoenix so remember one goldman sachs was busted

for mark manipulation a lot of the bankers were packing blocks on the way to work so that other big area of sales but here's an interesting way to look at this whole thing i mean i got an idea if you wanted to take over a gun manufacturer using a leveraged buyout what you do is you go to the bank like a saks or j.p. morgan and say i'm going to insure that no year from today there'll be ten of these political assassination attempts on america and i'm going to use that as collateral to borrow the money to buy the gun manufacturer by the gun manufacturer that stripped it of all of the employees and pension benefits keep the difference in cash all have to do is make sure that a year from now there are ten more political like assassination attempts which should be easy in a country like america that thrives on political assassination attempt if there was no political assassination attempt there would be no fox news there would be no roger ailes there would be no bill o'reilly there be nothing on t.v. except for rupert room and fridge and captain kangaroo will be brought back because that's the only last thing then of any importance on the fricken channel but there

was an interesting little tidbit in one of these articles about this booming sales and glocks and that is that nothing fuels gun sales like uncertainty about the future particularly when such uncertainty centers on the availability of handguns the last pronounced surge in sales came in the wake of two thousand and eight financial crisis you never go broke in america selling guns but remember that in. bullets and the sales of all it's going to be tightly controlled all right stacy ever thanks much for being on the kaiser report thank you don't go away when we come back much more stay right there.

well. bringing you the latest in science and technology from the realm for. the future of coverage. i welcome back to the kaiser report i'm max kaiser but time now to go to germany and speak with economist share have or the alternative information center he's the author of the economy of the occupation bullets in welcome share imax and thanks for having me back on your show fantastic not sure i want to talk about the war economy and how the wiki leaks cables reveal what's going on in israel so what does a war economy look like who are the power players what does or where does the capital flow well and in fact that we can leaks discoveries are not that important in that respect because a lot of people who already knew that it was at work on a mean the information is pretty much out there already a recent study that. was published two years ago found that approximately twelve

point three percent g.d.p. is invested into war security military. and there are two ways to look at that you can say ok twelve point three percent. means that that almost ninety percent of these really economy is not into war with true but another way to look at it is actually that israel has the highest proportion of g.d.p. invested in security military compared to any other country the world just to put into proportion most european countries have between one percent and two percent of their g.d.p. go into their defense budgets and the united states which is a very militarized economy as four point five percent so about a third of israel well how do they hide the cost for the nuclear bomb program because. it's got about two hundred nuclear warheads and of course that's against international law but they need to pay for it somehow how do they hide that in the in the books. budget of defense is actually

a state secret nobody can know what's inside there and just a big number ok so that twelve percent number is understated by the factor of the nuclear arms program which is a pretty expensive drug. i feel you've got to double the twelve an app or send right there i'm not sure if it's not already included there because already we're talking about many many billions for a very small country after all. it's. it comes at the expense of a lot of social services that have been significantly cut and eroded over the years so that means there is now a crisis in almost every aspect of his rose economy and there is very high level of poverty but the money that goes to the military programs is not being cut i don't think actually that nuclear programme is the biggest expenditure it's probably quite big of course but there are other forms of expenditure that are perhaps even bigger for example the cost of jails and currently there are approximately eleven

thousand political prisoners in israeli jails and constantly there are more and more people being imprisoned and all of this in a huge expenditure on more and more jails and more and more space into the prisoners of course they are kept in very crowded conditions and protecting and guarding all these prisoners some of them are twelve year old ten year old prisoners this is something that is a very heavy burden on these really economy all right well let's sort of it my view is wiki leaks cables some more according to the wiki leaks cable israel plans total war on lebanon gaz the us cables quote israel chief of staff general gaby ashkenaz up telling a us congressman i'm preparing the israeli army for a major war since it is easier to scale down to a smaller operation then to do the opposite your thought well even before the in

invasion of lebanon in two thousand and six israeli officer said they're going to adopt the doc doctrine the docket doctrine means that israel will stop at nothing and basically bomb it without any restraints even considering. i think that there are civilians and living in the areas where they plan to bomb and this is been public knowledge in that sense that we can mix didn't really add a lot of new things what's. more interesting is the fact that officials both in europe and the united states and other countries are well aware of the docket program by israel and yet they do not think about it they don't mention it they keep on reading reiterating that israel has a right to defend itself regardless of the disproportion of its use of force and the massive massacre of innocent civilians but i think the way to look at this idea of all out war and complete lack of restraint is not that israeli officers such as ashkenazi believe that israel has something to gain by using more force it's not

that they really have a strategy whereby if they bomb another refugee camp and kill another people. people somehow that will make israel more secure i think the way to look at it is from a different angle in fact the problem is that a lot of israeli soldiers even low ranking soldiers are completely out of control and the problem is that the israeli government have has really no way and no desire to try to rein in these soldiers and to try to. make any of these soldiers very sponsibility for their crimes of course by doing that they're also accepting responsibility on themselves and they are becoming war criminals. but. what these soldiers are violating international law. government sees it as its responsibility to protect them rather than to protect the victims and in fact

recently the israeli knesset is moving forward to draw a list of. one of them is the organization where i work. four who are suspected of gathering information on these really military so fifty such as i'm doing right now giving you an interview is considered destroy look to the team which is now monitored by the israeli government and the organizations which participate in these activities are being hunted by the government and workers in these organizations are currently at risk of being interrogated and even arrested all right so what's the upside here for israel they they want more land for condos i mean there's a global real estate crash. what are they pushing for exactly what's their objective because. there doesn't seem to be much economics behind the push toward more condominiums i mean they could always go to florida and build plenty of

condominiums there so what's that what exactly is the upside or are this just a matter of a bunch of sadists with weapons murdering people for no ideology other than the ideology of sadism well it's neither of these things. if you try to find one comprehensive strategy of these really government which tries to achieve a clear goal you will find none because in fact these really government is paralyzed from within by different factions each one with their own strategy with their own ideology you have the settlers who are led by a group of mysie an equal to a religious fanatics who believe that god has promised them the land and given up in the end they sent immediately and would be sacrilege they want to live in a way that way to a god promised them the land while other britain and america promised them the land in one nine hundred forty eight what's this god promised them the land theory i mean i mean i believe in the flying spaghetti monster and i could say that i'm kansas is out to me it doesn't make

a truth as it i mean by the large yes of the u.s. and the u.k. they carved out a thing called israel now what that's about it now what's this whole mandate religious mandate we're talking about that. nobody put that in the cards in the begin with and they got away with that well that's a very good question because in fact most of these really officials in government are quite aware that this group of religious fanatics are not promoting israel's. let's say official interests however it seems much easier for people like netanyahu and other leaders in israel to shift the blame over to these religious fanatics and say well the reason that israel cannot withdraw from certain palestinian areas from certain esteem in town is that these religious people are just too powerful and their grip over these ready politics is just too strong and they're be used as a kind of scapegoat and it doesn't mean that some of these people are not very

violent and there's a lot of violence every day repatriated by a religious extremist but in fact all of that violence together cannot compete with the official violence that is employed by the israeli army what the what the israeli government has been able to achieve in its dealing with the united states and also with europe is to shift the blame so that when obama has to explain for example when barack obama has explained why he was not able to convince israel to dismantle any settlements in the west bank. his answer would be well he's really a government is fragile the coalition might collapse if those religious fanatics on the right don't get. a peace state don't get their share and this serves as a kind of. a blood block all or stop all medical cure to prevent any kind of compromise any kind of advancement. peace and

any kind of demand for justice for mr sounds like a situation where you've got to a two year old holding a knife and then. i was afraid to approach it because they don't know what's going to happen let me ask you this you mentioned earlier that something like twelve percent of israel's g.d.p. aside to. militarization you also mention that another big portion of the g.d.p. is tied to prisons what percentage of the g.d.p. is tied to operating the biggest open air prison in the world palestine how much money does israel make per year by operating that prison called palestine well israel doesn't make so much money it loses money and that's a very interesting thing because if you look at the early days of the occupation of of the palestinian territories the gaza strip the west bank it was set up many mechanism by which to profit from these areas by exploiting cheapest i mean labor by exploiting the land exploiting the water resources and using the palestinian cheap captive market for marketing israeli goods but the more the palestinian

resistance has been organized and been effective in. putting putting these really army on edge the more israel has been losing money to keep control over the palestinian territories and you mentioned the biggest open air prison i would say the gaza strip is the world's current biggest open air prison and the world it with one and a half million people living there and they were quite in interesting revelations and we can mix with guarding how israel treats the gaza strip. and why israel operates the siege of the gaza strip and what i find extremely interesting but also extremely worrying is the fact that the economic interest economic agenda whereby israel would. be willing to make some money let's say by allowing the international community to send. money to gaza to

sustain the refugee camps but actually do so by buying products from israel must products made in this room and thereby create a night in nice little export venue for israeli company. now israel is even blocking backed so the siege is now full so. has such a strong momentum such a strong element of picture to it that even costs money to these really go well yeah i mean it's a loss leader like a grocery store put milk in the front or the back of the store and they'll sell it at a loss to get people to buy other stuff at the grocery store i mean they make money at it if israel didn't make money operating a ghetto in the gaza strip they would shut it down in a heartbeat. however thanks so much for being on the kaiser report thank you very much and that's going to do it for this edition of the kaiser report me max kaiser and stacy herbert i thank my guests share haver of the alternative information center if you want to send me an e-mail please do so at kaiser reported r t t v are

you until next time this is max guys are saying but you all.