with a global mission originally where we had a state controlled capitalism was called sasural so when nobody dares to ask we do our t. question morning. sports is political in ways we don't often even notice especially on the level of culture where our ideas and attitudes as a society are shaped the for. example the ties between professional football in the u.s. military have existed since the start of the n.f.l. back in one thousand twenty that lation ship laments least during world war two and today that bond is stronger than ever and one of the incentives to kill kill kill kill kill kill innocent recent history has taught us the sports is never just

something that we just sit back and smile and sports always had an important social function and the history of american sports is no different. the same. i am max kaiser and this is the kaiser report reporting to you on the global

insurrection against the banker occupation or revolts everywhere they're all attacking the corrupt bankers we're going to get into the headlines i want to introduce stacy herbert stacey. yeah i have a headline for you and you're going to give us some comments on it yeah nine eleven crybabies needed to kick in for two dollars a day i ask you to comment on this because it is your headline yeah i wrote that on my site i told one of these nine eleven crybabies you know since nine eleven there's been an effort to make sure this never another nine eleven but of course this is the worst thing that could possibly happen to the american economy because if you're competitive if you're trying to expand your global franchise you've got to take risks and you've got to take the risk of being hit with a make a gentle nine eleven every ten or fifteen years there should be a nine eleven there show that america's got a pulse that it's out there actually expanding its business franchises around the world the fact that there hasn't been shows up in the statistics in terms of loss

of competitiveness high unemployment and the control by kleptocrats so the u.s. the americans if you want to get back in the game here on the global competitive stage you should wish for another nine eleven all right so let's go to the headlines but you bring up this notion of nine eleven and this is something that also triggered a very deep partisanship and america and also allowed for the looting of america by on funded wars and this is the phenomenon we've referred to before where that famous psychological experiment where you're told to watch the black shirts in the white shirts playing each other in basketball and and you have to count the number of times that passed the basketball. back and forth to each other and inspect spearmint runs a gorilla most people don't see it and that's i think what we see in the global economy nobody ever sees bankers no running through the crime scene because we're too concentrated on whether or not how many muslims are getting into the country or

how many red states are getting an unfair advantage or how many women union members are getting unfair advantage just on all of the kleptocrats i'm talking about the koch brothers and scott walker in wisconsin played a divisive game they play the sectarian game red state blue state game to try to divide people and then once cowering in fear and they're losing their mojo in america they can't compete anymore and when immigration just bear down put their shoulder to the wheel and in to support another nine eleven because it's the first thing that could happen it's not the best thing that happened could happen actually when when people orchestrate these attacks they do it in order to divide and conquer so the next time it happens they should know better that this is what happens and we see this through all of our next headline just quick point when you're learning to ride a bicycle you fall though occasionally that's what happens when you go through they call creative destruction and economics is the same thing in politics is the same thing in empire building so don't reject it except squatters take over it safe cut off these london home so this is

a protest group called topple the tyrants and they've seized what it describes as the libyan government's corrupt and stolen assets but their own prime minister of course helped the libyan government steal that's right that's right tony blair made it possible for a good thing to steal incredible amounts of assets now the protesters are squatting a daffy held property in london and they want their money back of course and we should see this all over the world to people should see outside scott walker's house and demand that back because that was stolen with taxpayer money well they're seizing the house. they squatted in and told the assets are sold and given back to the libyan people it's ten million pounds but i. the meantime we're going with this theme of the gorilla running through the room their own economy has been taken and they're paying austerity measures and order to finance the banker heist lord hutton public sector reforms who will lose out so lord hutton remember who whitewashed the

whole tony blair. put the b.b.c. totally on the back foot during the hutton inquiry that's correct but he's come up with these new public sector reforms in which workers in the public sector will face a radical overhaul of their pension schemes but here's a paragraph that stood out to me more public sector employees who are now living and drawing a pension for longer has created an estimated thirty billion pound black hole in the pub when the public finances so thirty billion pound black hole and people are outraged at these public sector spongers you know who's stealing all our money from us did you see any outrage for these two have lines one from two thousand and nine bank bailout to add up to one point five trillion to public debt that's from two thousand and nine years from the end of two thousand and ten ireland bail out u.k. taxpayers could face seven billion pound bill for some bondholders

and bank that didn't even have deposits so the thirty billion dollars black all the point is that the known public sector union workers could just as easily fight to get a thirty billion dollar raise so that there is parity in the worker space that workers would get some kind of decent wage instead of filing a motion serves a lot of the bankers approach the terrorist get away scot free they're complete idiots it's the same thing in the us in this wisconsin thing the public pensions are being attacked as well they're morons but all you see is david cameron or in the us you see the whole of ahmed ministration they all came in on this wave of unrest. about the banking theft and in office both of them have only targeted workers making fifty thousand dollars a year not the guys who stole fifty trillion and the population immediately falls into that guys making fifty thousand i want to make that over my lifetime working

at wal-mart if anyone can send me an example of a campaign promise that obama did not break i'll wear a dress on this show i'm going to find one good luck the guy's been a three hundred sixty degrees of disappointment a total utter fraud and a punk well here's some more gorilla bankers running through the rampaging through the global list look at quickly come out here if you want to see these gorillas go to youtube just search the phantom gorilla you tube and play this for yourself you'll see that it works you're focusing on the basketball players and he totally missed the gorilla running through the frame this is this is what stacey is saying is that if people are focused on the stupid stuff and they missed as good will walk through the frame that's still your money. brothers arrested in cow thing raids so these are brothers vince in the robert chiang s. were arrested by the serious fraud office in the city of london police the serious fraud office that is investigating allegations of market abuse fraud and excessive

loans financial claims against south and bank run to five times iceland's g p s f o n s an icelandic officials started investigation and to ascertain whether a substantial value was extracted from the bank in the weeks and days before it collapse it needs a very expensive investigation paid for by the taxpayer of the u.k. to see whether or not there was any fraud involved in that but one of these us a phone does a room take out a large frying pan and bomb them on the head and see how much money they spent investigating whether nothing just got in there with a frying pan i mean the country just got looted your job is to go after the looters . forget you're. pretty good. cow thing bank owes the u.k. two point five billion pounds ok. so much less anger over that by the population than against a public sector union worker and also one of these things bank guys arrested was

the former treasurer and bank after the collapse of the bank you then went to work for the f.s.a. the financial services authority in the u.k. yeah it's an amazing amount of corruption in iceland and u.k. exceeded only by the banking corruption in ireland and it's also london as these guys topple the tyrants are looking at some guys in the middle east in their midst are running wild these bankers looting all the world and using london as a safe harbor you know they're totally blind to the leaders amongst them there and you know it's not just a river in egypt so there is another headline don't get mad get even so this is in wisconsin the whole coke brother scott walker story labor vows to recall wisconsin g.o.p. lawmakers fight anti-union building court so governor scott walker republican of wisconsin and his republican allies in the state senate took nearly everyone by surprise and pushed through a standalone bill stripping public employees of their collective bargaining rights

and you know to the media they always say it's the public sector unions like you were talking about that we're just getting rid of these unfair advantage they have they never mention that the exclusion exclusion of this bill are firemen and police unions the unions are targeting are teachers and nurses which are almost all female so this is that sectarian divide divide and conquer you know psychologically many in the the religious fundamentalist sort of base of the republican party will endorse that that women should be in the home anyway those guys that work or obviously don't want to pick a fight with a fireman or a policeman because he's a bully he's afraid of a man a real man somebody who's not a pencil necked you know some. breathing incomplete drug policy making koch brothers underwear sucking moron and so anything that's against women and women he'll be endorsing because he's an embarrassment to wisconsin he's an embarrassment to america there should be a regime change of wisconsin this guy's asses should be seized he should be thrown

in jail he was caught committing acts of tyrannies a cold brothers he's a he's a criminal and no punishment it would be too cruel and so because of all these banking guerrillas again looting in plundering everybody the money continues to be printed and printed and printed so headline reads warning of food price riots in the u.k. . a senior economist at the worldwide bank h.s.b.c. has warned of civil unrest in britain if food prices continue to soar she said quote even in the developed world i think we have very very low wage growth so people aren't getting more in their pay packet to compensate them for food and energy and i think we could see social unrest certainly in parts of the developed world and the u.k. as well she doesn't blame the money printing that's going on in order to bail out the bankers she blames high energy prices which in turn leads to more biofuels

so you can see where the scapegoat here will be it will be not on the bankers not on the banking guerrillas running rampant through our economies it will be on it ecologist and people like that persons are funny you know i think that they are just a few generations most of these people complaining they come from peasant stock they'll return the peasant stock bless your good luck indentured servants you know never any civil rights you never had any legal rights it's pretty magna carta get back in the ditch and start day again and you know that was a dream democracy never happened for you or your family it's over so finally max she does however point out the very low wage growth very low wage growth. she says she emphasizes that this is a big problem as prices continue to rise but all of those very low wage growth people they respond by saying make my neighbor also make less money me make war right we've talked about this many times before workers are tricked into believing

that they should tie their wages to inflation or c.p.i. and those numbers are cooked by the government so that they don't have to pay wages and they don't pay anybody retirement benefits if you're smart in your own work or if you're a cop if you're a farm and if you're a nurse you do real work out there you've got a hedge fund guys just spinning paper and trading on inside information you shouldn't bargain to have your compensation tied to money supply growth if the u.k.'s money supply grows by ten percent or fifteen percent a year then so set your wages otherwise you're cooked your goose is cooked but wait a minute money supply that that has a four syllables don't know anybody to look for you to handle. all right say there are facts so much for me other guys report thank you don't go away much more coming your way stay right there. the official auntie obligation to your body so you called touch from the.

jaunty light on the good. video on demand. among the old comes. from a sense feed now in the palm of your. pushing on the dot com. welcome back to the kaiser report time now to go to san francisco and speak to richard heinberg of the post carbon institute richard is the author of several books including the party's over blackout peak everything which i happen to have read myself and found to be extremely interesting and is no go up at the end of

growth richard i wrote welcome to the kaiser report thank you max to be with you all right richard heinberg your latest book is called the end of growth tells about well the book unfortunately is not out yet but it makes the controversial claim that world economic growth has hit non-negotiable limits as of two thousand and eight and that we're in a new economic era it's not a a recession will end at some point and we'll get back to normal growth rather we have seen the end of economic growth as as we know it is in fact this shouldn't be a a big surprise the best selling and buying little book of also. back in two in one hundred seventy two was called limits to growth and it forecast that some time in the early twenty first century resource depletion in population growth would lead us into a colder to such that world economic growth would would cease i

believe we're at that point and it's largely because of oil prices which essentially are forming a cap on economic growth if the economy if the economy starts to recover that question's oil prices up when oil prices go up they undercut economic activity so. while the cheap easy oil is gone it's not that we're about to run out of oil price of extraction. exploration is is rising rapidly so at this point i believe enter energy prices are effectively capping economic growth ok so climb back away early early years of the london school of economics there was thomas marcus he came up with the law through the end dire prediction with other states as a matter of fact for the entire field of economics being referred to as the dismal science in that that there would be of course the. arithmetic growth of resources

versus geometric growth of the population that we had run out of resources and economy would come crashing through our what he didn't count on is innovation technology and everything we've seen since that time why is this time different alright the biggest thing that thomas an office nearest was the fossil fuel era he had no way of knowing that there would be enormous amounts of cheap energy available to fuel economic growth and also to fuel industrial agriculture which nobody dreamed in the offices time. even as recently as the one nine hundred eighty s. and one nine hundred ninety. there is a strong argument that resources would not get more expensive because. of. innovation as you say we would just get better at extracting lower and lower grades of resources well since two thousand the situation has turned around they were just

making that surely and i think most of this was what essentially saying what he said too early as well he said that there would be limits to food supplies if population teach growing i think is absolutely right we're seeing food prices going through the roof right now as well as energy crisis. these limits are elastic to a certain extent we can push them out with with efficiency with energy efficiency with more global trade by using more energy to extract lower great resources and so it but there are limits to all of those strategies and i think we're reaching those limits as well or let me ask you a question or heard something recently i want to comment on it they have to do with the amount of debt that's in the global economy and they're the the hypothesis is as follows to pay our debt requires a certain amount of growth and of course in our modern twenty first century world

growth means oil oil driven growth and the commentator there read was suggesting that the amount of growth it would say that generate the ability to pay off this debt versus the amount of oil in the ground that could be burned to engineer that growth does not exist in other words we have more debt then we have oil to burn to finance the retirement of that debt are you familiar with that equation and if you comment on it well i think that's that's probably true but the point is really that we've created all this debt to fund economic growth. we we have even created modern currency as a form of debt we loan money into existence so without increasing levels of debt we have no way to increase the money supply to fund economic growth. now

this seems to make sense in decades past when we had lots of cheap energy with which to make the economy grow but as energy resources get more scarce and expensive not only oil but but coal as well. as that happens then you know the we end up with this huge debt overhang there's no way that those debts can ultimately be paid off and this is a effectively what happened in two thousand and eight we had the bursting of a housing bubble house prices couldn't keep increasing forever but also in two thousand and eight we had the oil price spike to almost one hundred fifty dollars a barrel and those two things together the bursting of the housing bubble and the oil price spike sent the economy into a tailspin we remember the housing bubble but most people forget about the oil price but we're not going to forget for one because the same thing's happening this

year again all right tell us about the gold a lot centralizing caught your thoughts on how markets may respond to this resource scarcity the goldilocks syndrome is. a term actually invented by a new york times writer i didn't invent it but i think it's a really good metaphor to use for the situation we're in because we need oil prices to be within a certain narrow band in order for the economy a function these days to fund exploration and production or oil companies need prices in the range of at least seventy dollars per barrel because all the cheap easy stuff is gone we use the low hanging fruit principle resource extraction from looking for oil and we have gotten all of the low hanging fruit richard heinberg you're in you're near san francisco not a fan from tesco yet you're in an area. of course near silicon valley which is the

home of our territorial ism and venture capital and social networking sites and apple computer and all these whiz bang shiny glossy little products coming off the assembly line and it seems tell us about what's happening on the ground there in san francisco is there an awareness of this pick everything. phenomenon or is there this bligh kind of. belief that technology is going to save the day is there any is there a comprehension there in san francisco or is everyone just kind of continue to play the venture capital game i think if you took a call of the general population here and there is a california. you get a strong maturity people believing innovation can continue to solve our problems and perpetuity when we don't really face in fundamental resource limits but as i said that is changing as oil prices go up as food prices go up people start to get

worried and. i guess their worry is that innovation can't search here keep up and we're not investing in it enough but i would go further i would say that there are you know basic limits to what we can accomplish with efficiency substitution innovation we're getting those i think many people would agree with that now i've seen a phrase being bandied about various financial websites a lot. if the phrase by nation with is different than stagflation by flash in commodity prices rising while wages are terry arraigning do you buy into the threat and what is this raise mean if you have a comment on that but i think that is what we are seeing a pup we are going to see. and i think not many financial commentators really understand what's behind it not many of them would agree that it's

a result of fundamental scarcity. as i've said earlier we reached the low hanging fruit we've already picked the low hanging fruit in terms of oil coal natural gas minerals freshwater fish forests etcetera etcetera and so as time goes on we're inevitably having to expend more effort to harvest resources and that effort is energy so if energy itself is also becoming becoming more scarce then we get into a whole a sack and therefore you know even if we can raise wages with inflation. prices of basic resources are going to rise faster than wages right unlike the areas of inflation in the bathroom and the stagflation of the one nine hundred seventy he did have of course there were a lot more union union representation at that time he did have wages at least

keeping our to some degree without with happening on the inflation front ok so let's look forward a year two years five years ten years down the road what does a post carbon economy look like well look smaller than the economy we see around us today and it's also more localized because. globalization is based on cheap transport fuel so as transport fuel gets more expensive that changes the the equations with regard to the comparative advantage in and in globalization so we will see more production regionally doesn't mean global trade will go away overnight or altogether at any point but it's if it is going to shift. also we're going to need to become more generalists rather than being more and more highly specialized. we more and more of us are going to have to know how to grow food how to take care of her so in terms of health care and so on. and

so that's really going to change what they life looks like it's not just going to be a matter of hopping in the car or rushing over the other side of town to buy a new flat screen t.v. we're going to be more concerned about providing basic necessities for ourselves of a good pair a new shoes or for example is going to be a much bigger deal for us in five or ten years there. has been ok well that's the book is coming out in play in a in a and a couple of months called the end of growth of the follow up. blackout and peak everything. basically is exactly what it what it says it's about all the various natural resources we're now in the endgame as the. liberal industrial model has eaten up i'm all of the cheap availability of these resources so we look forward to

seeing it when the book comes out the end of growth richard heinberg thanks so much for being on the kaiser report it's been great talking with you thanks. for this edition of the kaiser report with me max kaiser and stacy herbert i want to thank my guest richard heinberg if you want to send me an e-mail please kaiser reporting r t t v are you till next time this is back guys are saying. hey tom are over here broadcasting live from washington d.c. coming up today on the big picture.

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