paul b. pharaoh forget mubarak it's fed reign of terror that must then and this is your take with a very pretty picture on paul b. ferals headline fed dictator ben nanking needs to be toppled. so he says that the fed boss ben bernanke he is the most dangerous human on earth far more dangerous than hosley mubarak egypt's thirty year dictator ever was bernanke he rules a monetary dictatorship that will trigger the coming third meltdown of the twenty first century right you know a year ago or so paul be feral over there at market watch dow jones might have been accused of sedition but because the global insurrection against banker occupation is gathering storm gathering force all over the world the forces that are in power now can't stop it the momentum is too high so we're seeing in egypt are saying to me as if we're seeing riots all over the world in america it's coming it's coming soon and it's time for

a regime change and he's right to target the federal reserve bank because obama let's face it obama is just a sideshow the real power is ben bernanke in the federal reserve bank that's where the regime change needs to take place and ben bernanke is the figurehead for a collection of private banks and a few corporations like chevron who own the fed and they are the ones that are profiting from this economic war as paul the farrel talks about it if he lists ten reasons for weapons of this financial warfare that perpetrated by the fed and list two three of them commodity price inflation will soon and the fed dictatorship next near is zero rates means banks rich or massive poor meltdown and then finally easy money fueling worldwide inflation and a new meltdown so we've as you mentioned we've seen this in commodity price inflation all over the world well as you point out the federal reserve bank is owned by banks and corporations it's a private corporation it's not

a function of the united states government anyway it's there as a lobbying group for corporations the number two you mentioned near zero percent interest rates this is really the killer because in the united states and around the world interest rates are not allowed to trade per the. market they're kept artificially low to give free money to the speculators whenever they make a losing bet then the government bails them out and to pay for the government's bailout they put a go to the people through austerity measures are saying and greece are saying in ireland they put a gun to the people side with austerity measures to bail out the banks who were holding the government hostage so this is just easy money fueling worldwide inflation yes they're getting greedy they're forcing prices to go up to astronomical price levels i read a statistic somewhere of the number of people actually forced into poverty but that's a matter is really fantastic so continue on to get into the nitty gritty world bank warns of soaring food price dangers so apparently in the last year an estimated forty four million people have been pushed into poverty since last summer by

soaring commodity prices robert zoellick the world bank president said food prices have risen by almost thirty percent in the past year week has doubled mases up seventy three percent so this is what you're seeing going on in the world and this is caused from primarily the federal reserve bank is increasing the supply of cheap money and the demand for the food is the problem is the supply of credit that's giving speculators an easy way to make greedy bucks in the short term even though it's putting forty four million people on the starvation lines so it mean think about the number of people who died in world war two people who died in previous wars this is of that comparable size the federal reserve is actually putting tens of millions of people into their into a grave well that's forty four million people yes that they're causing to start which is why paul the feral says that ben bernanke he is more dangerous than mubarak remember mubarak was a front man just for the military industrial complex ben bernanke he operates on

behalf of the financial industrial complex. so there is going to need to be a regime change at some point as a matter of survival. you know people in america debate whether it's a left wing issue or a right wing issue it's not left or right it's a matter of survival either get rid of bernanke or you die but the situation we got rid of mubarak but who's going to be put in there by the military industrial complex but another dictator that's what will happen the same thing you can get rid of ben bernanke he is a financial dictator but the guys behind him are still there and they'll put in another guy who might be a little bit more pleasant jamie diamond a little bit better looking than ben bernanke you perhaps albeit well that's why i say everyone in the world should buy silver silver bullion because that's the under belly sore spot the vulnerability of these banks you mentioned jamie diamond j.p. morgan's vulnerability is the short silver position so the wealth that all these banks stole using them to bring that wealth back home by silver you have

a double effect of becoming wealthier so while putting these banks out of business by driving their stock price to zero so you're right there will be more dictators behind the current dictators more cia operatives behind the current cia operatives that's why you've got to go for the global insurrection against banker occupation by sooner put them all out of business a lot of people will say oh you can't possibly touch j.p. morgan because they are the fed they are the government but this next headline and this next bit of information we have here shows you that you can scare them food price follies the grown ups step in now this is the reformed broker joshua brown talking about an announcement from deutsche bank a crucial bank to this global banking cartel very crucial in the creation of derivatives now they have suspended further issuance of the power shares d.b. agriculture double long exchange traded note its trades on the new york stock

exchange or the simple dag. apparently industry sources believe that exposure the a.t.n. was holding to corn wheat soy beans and sugar futures was nearing limits that might attract the attention of regulators at the commodity. futures trading commission that's right one way to keep the lid on the speculators running amuck are position limits and margin requirements as if you're a member of the end of last year or so or was getting through thirty and then the see after you see under former goldman sachs guy gary gensler and his crew simply expanded the position limits and expanded the margin requirements or reduced the margin requirements and in such a way they allowed for more of the criminals the criminal banking elite to manipulate these prices even more but you know there are hundreds of millions of us there's only a few of them price of silver is going to five hundred dollars an ounce and that will pretty much take care of j.p. morgan but go back to these agricultural products joshua brown and with the torches and pitchforks may have been put into cold storage as the economy rebounded but

trust me the villagers know where they left them so he's saying that the bank was right to put away this double long like highly leveraged exchange traded no which would help drive up the price of already high commodities agricultural products well everything on the margins in the commodities business is being examined by the speculators and the governments too are beholden to the people because the government even in germany merkel doesn't want to have to deal with a revolt in germany because she allows for these special products to engineer speculative excesses by the worst financial criminal among us the terrorists so she's looking after her own interests at some point you really have to decide do you want to survive and and go go go one service saying the needs of the speculators at risk of having a revolution in your country and that's that's what we that's what it's come to now in this year now back to the u.s. the other do wobbly part of this financial war is the military war the military

industrial complex and a lot of great unmentioned in this global financial catastrophe we've seen is the role of the on funded u.s. wars around the world they are being funded through. money printing and instability in the financial system now here's a little video of jeffrey sachs who is a professor at harvard and also you an advisor and here's his take on obama's new budget and we're turning around and we're just going to keep driving down the poorest of the poorest of the poor and that's where we are this is a game that's going to come to an end in a bad way do we really have to have our own egypt here in the united states are we going to actually understand that we have a society we're half the people have no voice in this country at all remarkable you know obama basically cutting money stealing money from the poor to give the rich he's the reverse robin hood that's correct and as a percentage of the budget now the military the pentagon budget has gone up and i

actually have a chart here you can see where the three point six trillion of obama's budget goes along the bottom that's defense and social security the two major components of the budget and you could also add in the veteran benefits of one hundred twenty four billion and then medicare four hundred sixty two billion that in total so just the pentagon and the budget for retirees is over two trillion of the three point six trillion whether or not the pitchforks are going to come out you see in this new gallup poll americans are divided on defense spending so overall thirty nine percent of americans according to the latest gallup poll say the u.s. spends too much on defense twenty two percent say it spends too little and thirty five percent say defense spending is just fine here's another chart if you look at the partisan divide a full forty percent of republicans say too little is spent on military and nine

percent of democrats say the same thing and yet look back at that chart you see from the three point six trillion and government expenditure almost half of it is from just military spent and you know this is not welfare this is not corporate welfare well that's exactly the. and i should be made if the question was do you support welfare for psychopaths and the industrial military contracting business most people would say no but you call it defense and it gets confusing of course the fact is to see that if the if the interest of the dollars being spent on military hardware is to defend the homeland and to proffer some security i suggest america stop invading countries and killing people and inviting retribution like we saw in the whole of them but the important thing to look at here is you we talked about the economic war and a lot of money went missing in these offshore vehicles in these fake derivatives and the same thing is happening here with these fake war it's kind of

a fake war in afghanistan and iraq because i mean a lot of people were killed and bombs were dropped but billions and billions and billions constantly go missing there are constant government oversight report saying well we lost ten billion this month we don't know what happened to all that cash it's gone the same thing so it's just money going to total welfare queens that are just pocketing the money taking it out dubai transferring it back into the u.s. and suitcases and what substitutes for american military these days are cracked adult kids in florida playing video games attached to howitzers and machine guns flying predatory drones in pakistan blowing up civilians for a milkshake and bonus and then finally you know bringing it back the military industrial complex meets the financial industrial complex this o.m.b. chart shows how the financial crisis ruined america's debt outlook so the reason why barack obama slashing one point one trillion in spending on poor people is

because many of the media pays a lot of attention to what poor people receive and it's even though it's a tiny tiny tiny tiny percentage of the overall u.s. budget this chart shows their six year budget projections and as you can tell from two thousand they. it totally went ballistic because the financial crisis happened then so because of the financial crisis because of the banking crimes the difference now is forty nine percent gap between where the deficit would have been and where it is now all right stay here with thanks again for being on the kaiser report thank you max now when i come back i'll be speaking with william d. harto young who wrote a book profits of war much about the military industrial complex and don't go away .

do you believe in science. welcome back to the kaiser reports i'm going to go to new york to talk with william . prophets all war william is also the director of the arms of the securities and initiative at the new america foundation william welcome to the kaiser report thanks for having me all right will you throw out the coverage of the egyptian revolution over and over again we see reference to a one point three billion given annually by the u.s. to the egyptian army where does this money actually go well it's sort of recycled briefly stops in egypt but basically comes back to major contractors in the u.s.

like lockheed martin general dynamics general electric rates for fighter aircraft tanks. missiles a whole range of. century the entire egyptian armed forces have been outfitted by the united states going back to the beginning of the mubarak regime thirty years ago right and this is a model that the us uses in other countries as well correct yes some countries through aid in places like yemen others saudi arabia purchases weapons from the united states so there was a recent deal for sixty billion dollars the largest arms deal ever concluded for combat aircraft attack helicopters bombs guns it was a huge package including a full range of military systems so america is the push for democracy in the region is coupled with the america's arms dealing in the region and in fact it's america's arms dealing welfare recipients in the region who are i guess. pushing for

something called democracy but as long as they get this welfare association with it meanwhile the people on the ground had enough and they revolted so what's going to go what's going to happen now going forward now that there's been this populist revolution in egypt for example to me it's going to cut into this pentagon welfare scheme i think it's going to be an open question what happens with the arms deals and the military aid certainly if democracy takes root there are other needs in these countries supporting agriculture education one of the roots of the. uprising had to do with the fact that people can get decent jobs even fairly well educated people so in an ideal world some of that would be reinvested in civilian activities but the military in egypt is still controlling the transition they've got longstanding ties to the united states military in the pentagon so i think it's really an open question as to what will happen as

a new government comes together all right so in the book profits of war your book you focus a lot on lockheed martin are they the biggest recipient of this corporate welfare and one of the numbers how much well lockheed martin. certainly is the biggest recipient of pentagon contracts both from the pentagon itself and through foreign sales to egypt twenty nine billion dollars a year the biggest recipient of u.s. tax dollars and the largest weapons contractor in the history of military complex right now these numbers are not included in the official pentagon budget right i mean that's that's a separate line item and so this is just gravy on top of the large jets of the taxpayer to lard the coffers of these defense contractors it's just more money for them right a lot of the military aid is funneled through the pentagon in the sense the pentagon serves almost as an arms broker they've got a whole separate department called the defense security cooperation agency which

sounds sort of benign but it's really kind of an in-house weapons trafficking operation and so you've got that in the pentagon rubric but you've also got things like nuclear weapons design which happens through the department of energy you've got a whole range of biometric can surveil its technology through the homeland security department and the f.b.i. so you've got a whole range of agencies and spy satellites for the national security agency outsourcing of cia activities so it's more than just a twenty nine billion for the pentagon it seems that a lot of the technologies that go into surveillance and these other areas they they did be you if you well off broadway in these foreign countries and then they end up in the u.s. you know for example predator drones we heard about the first in pakistan and then we saw them in texas you know looking at the border between texas and mexico is this part of the strategy of a way to kind of beta test

a lot of these technologies in foreign countries before they bring them into the u.s. i think it's sort of inevitable just in the sense that in a conflict like afghanistan. it has to have been. viewed as a way to quote unquote limit civilian casualties to go directly after the leaders of the taliban and al qaeda so they saw an implication there and of course these were armed with hellfire missiles which are another lockheed martin product but then the surveillance aspects as you said have been applied in places like the us mexico border so i think it's not clear you know why it happens that way except that of course the you know the systems have much more direct usage in some of these overseas conflicts so in a sense they are. getting their test run i know if that's on purpose but it's certainly what ends up happening all right just to our review on this budget matter because obama just relates to the budget for the air record deficits for the u.s.

the pentagon get to here a piece of it martin marietta they're part of the seven hundred twenty two billion dollars seven to twenty two billion dollars pentagon budget and this is according to your work does it add or subtract let me just ask you a bit of a philosophical more philosophical question but the overall u.s. economy as a whole if it more than half of it or half of it is to fund these. arms dealers in countries where they're they're failing to the extent that the local population has to stage their own uprising. is this any good for the u.s. economy at all does it bring does it do anything for defense does it do anything for democracy does it do anything for the economy doesn't succeed on any level in terms of the economy it's a smaller percentage than you might think probably about four or five percent. of the g.d.p. is for military spending

a lot of it and it's strategically located in places like. ohio where the speaker of the house john boehner is in california where the head of the armed services committee. buck mckeon is in hawaii where daniel in a way the head of the appropriations committee in the senate his so it exerts an influence larger than its economic weight and what that means when they try to for example cancel a system like the f. twenty two fighter plane as was done they have to almost give a pay back to the company what they did was they cut the f. twenty two by four billion they added four billion to the f. thirty five another lockheed martin product so they basically kept the jobs base satisfied in the contractor base satisfied in the regions where the members were most concerned but as a result the military budget did not go down. i think in terms of foreign policy a lot of these sales particularly undemocratic regimes don't serve the long term interest of the united states and i think there was

a good piece in aol dot com about what would have happened if those billions and billions spent on weapons had been spent on supporting schools supporting food program supporting the civilian economy in egypt might there have been a more seamless or even a soon a transition to a genuine democratic system. so i think certainly there's overspending now compared to what would be need for strict defensive purposes and in that sense those extra dollars beyond what's needed to defend the country i think are not only a way spend some cases they they're counterproductive in terms of the defense of the country so you know i think certainly some pentagon spending is needed but we're probably you know one hundred billion or more above what would be needed for strict defensive purposes and a lot of that goes to feed the military complex well of the dollars. a dollar if i put a dollar and taxes last year to the u.s. government what percentage of that goes to military budget the military is more than half of the discretionary budget which is the part that doesn't count social

security and medicare so social security medicare have their own taxes so in terms of regular tax dollars you know probably more than half of them. you know go military for. purposes ok so let's say for the sake of argument fifty percent of the tax dollars goes into the military industrial complex which we have just decided does not return much in terms of a cost benefit analysis now you mention that the total. industry is four percent or forty five percent of america's g.d.p. but we know that eighty to eighty five percent of the america's g.d.p. is fueled entirely by debt that has been created at the behest of wall street bankers to generate fees for themselves it has nothing to do with the real economy the actual real economy in america shrinking jobs are crashing infrastructure is crumbling the actual economy of america strip away the debt is a considerably smaller so it's a bit misleading to say that it's only four or five percent of g.d.p. because g.d.p.

in america is completely fallacious it's entirely debt driven by you know the equivalent of the taliban on wall street the financial terrorist the goldman sachs and j.p. morgan i think more per more to the point is that fifty cents of every tax dollar goes to the programs that are failing on any anyway a look at it now ron paul is a contender for president presumably coming up in the next election he thinks that it's possible to shut down most of the military bases around the world and shut down a lot of the military industrial complex is that a good way to go in your opinion i think certainly there's overstretch in terms of overseas presence by different measures there somewhere between seven hundred and over thousand military bases around the world i think a lot of those could be reeled back you know they created to make it easier to intervene in various places but it's not clear that we want to be able to do that in short notice and i think we could use

a little more thought into liberation before we go into wars of occupation as happened in iraq for example which was facilitated by u.s. access to military bases in the persian gulf back in during the iraq skirmish war. invasion incursion takeover or whatever you want to call it there was that story floating around that pallets of money arrived and disappeared billions of dollars if you recall the story whatever happened that money did they find the money that it go up somebody knows what happened to it there was a period where some of the smaller contractors were being paid in cash and they were even pictures of them you know throwing the bundles back and forth as if they were having a football game companies like halliburton had you know billions of dollars that they never did actually account for i think partly because at the same time that they were increasing spending on the war they were reducing spending on auditors and contract officers at the pentagon and of course the middle of the war zone the military commanders first obligation is not to chase. spending its money it's to

protect its troops and deal with the military strategy in approaches so certainly a lot of money was lost in the process which often happens in war zones there's great opportunities for profiteering so. you know again i don't think the government you know set out to do this necessarily but nor did they take measures that they should've i think to try to. curb that activity right so they couldn't afford auditors well yeah i suppose that would be one reason why it was a billion dollars in cash william our target bank so much for being on the book as profits of war and thanks much again for being on the kaiser report thank you all right and that's going to do it for this edition of the kaiser report with me max kaiser and stacey herbert and i thank my guest william hearts on his book is called prophets of war if you'd like to send me an email at kaiser reported r t t v are you until next time this is max kaiser thing bio.

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