the old waverly who took it in whole search of the mill stone who took some of those country house holiday inn the bull good old gold mattel's the rim bronze the cream that used to feel the most acute much of the oil pulling the ribbons original . you're watching our taters take a look at the headlights no no fly zone has been forced across the libyan coast scoring only days of air strikes calls from among the dolphins forces un commanders and sisterhood called its will have precisely this point and point still some in the present tense. several weeks off and on rest in egypt ended president mubarak's control of tempests who fought for the revolution will be a day from today life is on eyes to sustain the. protesters in the

u.s. demand better treatment than on the move to the interim data to the use of the clinics rather than arming supporters say has been labeled a traitor. reagan conditions. and three workers at the fukushima power plant have exposed to mind that this is a great nation when work continues to stabilize their facilities polluted systems and make new reports of smoke it's an unstable in a number of. the program continues now with the carson report saying this. and this is the kaiser report covering all the markets financial scandals around the globe let's bring in stacey or it's nice to see herbert max keiser i brought

you a present where you go for here so. what do you say well i'm calling it stacey herbert fun china can it's a little bit of a plutonium mixed with uranium because according to the first headline max a glowing report on radiation he has apparently radiation is good for you know so this is ann coulter and she wrote on her blog that regarding japan the good news is that anyone exposed to excess radiation from the nuclear power plants is now probably much less likely to get cancer we did recently discuss agatha logic capitalism and this is a prime example of it either using fake science or mis misleading using science because there is research into the effects of radiation that can be positive in very very very very very very low dose agents not a nuclear meltdown arsenic in very low doses good dosages. mild

beneficial health benefits as i recall but of course you would want to swallow a gallon of it of course and coulter i mean this is how the misinformation article and the logical capitalism agne to logic and know told logic capitalism exactly she's got the same kind of misinformation gets people to think that radiation is good for you manmade global warming is good for smoking cigarettes is good it's many facts or many facts or ignorance well she wrote this on her blog a little blog which. thank it's amplified on fox news if you look at this little video here. glowing radiation very very good but you are not delon on radiation poisoning well it's not me i'm citing a stunning number of physicists and from the new york times the times of london there's a growing body of evidence that. radiation in excess of what the government

says is that of a minimum out there should be exposed who are actually good for you would reduce cases of cancer so that of course this bill o'reilly egging her on and you could even see in our culture space that she's kind of laughing like she knows it's a joke but that's the way they do it is that a shocking number a stunning number of physicists believe i'm right and in fact it would be shocking if there were one that believes she were correct to say go on to fukushima it'll be very good for you but that wasn't on the payroll of boxing is another one like murdoch and you know this is a yellow journalism taken to you know radioactive extremists radioactive journalism . fox news and coulter bill o'reilly here to package james riske lies and put into the public space hoping to protect the industrialists that they represent in their

quest to dismantle the global economy and cause you know what you see a similar thing in this next headline most britons describe themselves as middle class this is from the telegraph and they say the nation's perceptions come despite the rising cost of living and fears about unemployment amid the fragile economic recovery yet the last paragraph then goes on to note that actually you know twenty five percent of brits less than twenty five percent even think they're working class when in fact almost fifty percent are this is the confusion with inflation they think inflation is making the rich not poor right to see they can't distinguish what they do from one. goldman sachs or morgan stanley who borrow money from the government of zero percent interest rate speculate keep all the profits and put all the losses into the public domain where the average user of the consumer out there on the street used their credit card to affect the persona of a rich person but their debts never go away j.p. morgan and goldman sachs they push their debts out of the government and then push it on the people but for somebody who goes into debt to affect the the air of

someone with a lot of wealth they don't understand that their debts don't go away they're just being used as chumps of course well all of these kind of combine in the next few headlines as well. in this confusion of what value or wealth is and the confusion often caused by our own governments confusing us through misinformation sergei elana coughed gets eight years prison sentence as the puts it the man who single handedly the last stole goldman's algorithm that could quote manipulate markets that's according to the judgment is now the person with the biggest prison sentence to come out of the entire financial crisis sergey alaina call has just gotten a ninety seven month sentence for doing absolutely nothing but copying some goldman code that would never be recreated by anyone in the meantime the bank exacts who should be in jail are currently benefiting from their co-opted fed to allow them to

collect taxpayer funded dividend payments that's right so the high frequency trading code of the algorithmic trading code used by goldman to manipulate markets to engage in high frequency trading to steal money every single day remember they reported last year that two or three quarters of straight profits not a single down day which is statistically impossible unless you're stealing and using rate markets they of course are considered to be adding to the liquidity and market making functionality which are code word for smash and grab and larceny and they are lauded as adding to the economy meanwhile this guy's exposing the real financial terrorists he's a freedom fighter well a similar story. it's found in the next headline british hacker jailed over seven million pounds of virtual gaming chips scam so this is actually mitchell twenty nine he broke into the zynga mainframe stole the identity of two employees and transferred four hundred billion virtual gaming chips said to be worth more than seven million pounds to himself in reality the guy sold thirty percent of the chips

for fifty three thousand six hundred twelve pounds but they prosecuted him on what they could have been worth to him which was seven million pounds another freedom fighter that we've been talking about zinka for a while they counterfeit money they put counterfeit money into the system in the form of electronic. list no collateral based electronic money that is diluting the value of the u.s. dollar diluting the about it they're worse than the federal reserve bank a lot of people point to the fed and they say the federal reserve bank is counterfeiting money they're destroying the value of the dollar and they use all of their banking connections to undermine the authority of the u.s. government all true but much worse is. that is worse than the federal reserve bank now this story is incredible the big print worthless electronic virtual currency this guy hacks into the mainframe as

a freedom fighter to stop the financial terrorism then he resell saw some open market for fifty something cash thousand and he saw them on facebook to other people who want to use this for to raise their virtual farms on farmville or fight in the mafia wars which are in which these currencies are used and this guy's lawyer said the last his ingo was impossible to quantify because the chips were virtual and the company could create as many as it once he also said that actually michel had enjoyed little benefits and spent most of the proceeds on online gambling on other sites that used real money which is an argument you could make for the whole u.s. economy these. anybody who robs a bank to buy to steal dollars is just using it to fund their debt habits and it's no fun anyway so i'm not guilty of anything right and the point is that if the judge finds this guy guilty then he should find ben bernanke guilty what is the difference between zenga and ben bernanke bernanke those and any collateral in

which to float trillions of dollars worth of worthless figure out if you only think backing up the us dollar as has been pointed out on this show by many guests is the us military that is to say there's no intrinsic value to the us dollar the only value is if you recognize this as a medium of exchange if you don't recognize it won't bomb you will kill you happiness about was saying sampling too in iran that if you don't use the dollar to trade oil and other commodities will kill you there's still i think that backs up the us dollar that's the only thing that makes it of any value whatsoever it as a unit of currency is completely worthless is less than worthless isn't even as valuables as zynga because people actually was worthless dollars to raise worthless virtual vegetables on worthless farmville part of worthless space blog which of course goldman sachs is taking public for fifty billion or more based on people voluntarily checking themselves into a casino good legs day known as goldman farmville well judge philip wausau in

making his decision said it is but considerable aggravating feature that someone hacks into systems in this way when so much business and personal finance is done using electronic means and therefore the census has three flecked on public confidence and security systems and online business when someone reaches security in this way but is completely wrong look at the constitution look at what thomas jefferson had to say limits on article seventeen referring to copyrights they should be of limited term unlimited value this is a copyright issue and of course of business millennium copyright act the patriot act all these guys who are destroying an election. property of the united states and the global economy using fake virtual currency but they're copying infinitely are challenging those who actually want to have real copies of real works of art in works of business ideas that are being pushed out of the intellectual property domain by these terrorists but given the freedom pie or takes on

a corrupt judge you know if this were true if this judge were making an accurate decision that the use of these currencies can undermine the system that they couldn't just be reproduced with a touch of a button then we would see in effect say iraq where nine billion dollars went missing like that it just evaporated and yet it didn't seem to undermine anything but actual employ to my point which is that the us dollar is equally worthless and ben bernanke is equally culpable in an equally pernicious scam per this judge's definition lots of selective prosecution which of course it is in favor of the corporations vs the freedom fighters this also takes me on to the next headline are we about to see the first ever bonds back specifically the printing press this is the headline from joe wiesenthal legendary paper about who we just interviewed thanks for the fed's ability to monetize the debt to some extent all u.s. bonds are backed by the printing press but it's never explicitly last night news

broke that japan would issue rebuilding bonds worth ten trillion yen and it sounds as though they'll specifically be backed by the bank of japan but this is exactly what we're talking about the central bank issuing electronic fee up nonsense and claiming it has value it has no value other than the value to impose debt upon people destroy the ability for honest commerce to take place with the sound of money like gold and silver and to further perpetrate the global in slave bent of a population that is now turning against this form of virtual currency and so. and revolting in north africa the middle east in europe in the united states in wisconsin the global insurrection against banking occupation but there is a cost to it there is the cost of printing up more yen and that is to the savings to the pensions to those on fixed incomes to people's wealth it took workers about

anybody who has to work for a living is no one here that people really less and less people want to describe themselves as working class because why would you want to work for it a paycheck which is fixed and yet the value of that fixed income is declining all the time exactly inflation and life has been breaking when he's in front of congress or in these other central bankers and they asked about inflation they say that we don't see any inflation in fact we're scared about deflation that's why we're going to print up another trillion of our field currencies to make our friends wealthy who traded for fees and everyone else totally in debt as a slave thank you stacey so much for being once again the kaiser report thank you oh well i think thank you. don't go away much more coming your way.

through the. years after millions for slate the sleeves of species race original like brand new rockets need a new lawn study private companies now enter the flight to explore the cosmos studios right speech. one technology of. the future coverage. welcome back to the kaiser report time now to go to washington d.c. and talk with ed harrison a former double mine bontrager and now a blogger at credit write downs dot com ed welcome back to the kaiser report thank you let's talk here all right and arson revolutions are sweeping the arab world sending oil higher japan faces nucular meltdown in the u.s.

is about to hit another debt ceiling and uses that momentum to launch another war putting aside the moral and strategic implications is it a good idea fiscally i'm concerned about the fiscal ramifications because obviously it's not going to be. dire in terms of the out was as compared to say afghanistan or iraq more personally i'm more concerned with you know what sort of what it means for instability what it means for oil prices whether or not this is the sort of permanent war status that you know that you expect in the in the near future for the united states right if you remember when the u.s. . will shock and awe the chalabi and the pentagon estimate the cost me fifty billion dollars according to justice take us that's going to come in now at two trillion dollars so yeah of course when they start these things they always figure

out that it's all just a few billion dollars but it has a tendency to escalate quite rapidly now ron paul has called this form of perpetual warfare as you called military keynesianism do you agree i mean explain all of them up what ron ron paul is saying that what i think is actually going on is that you can look at kennedy's fall of empires the reality is that the united states after world war two was a relative basis in a much better position than we are today so the. question has been since then is how to sustain some degree of economic power and military power is a way to sustain over time we've found is that the benefits of military incursions haven't really accrue to the us domestic economy more it's been the military industrial complex so we're at the point now where the benefits of the u.s.

military far outweigh the. the costs in terms of money for instance united states spends as much money on its military as the entire world combined that's a huge drag on the u.s. economy in terms of alternative uses of that money in terms of infrastructure rebuilding education things of that nature but that's been true for decades right has been a cost benefit analysis for america's military for a is going back thirty years and versus the unemployment the infrastructure collapse the educational falloff the health standard collapse the falling of america's competitive nyssa around the world the decrease in america's infant increase in it from our terrill mortality versus the other industrialized nations has been a cost benefit analysis to spending trillions on war for decades right exactly so you know we're a long sort of a hole toward yo. keeping the status quo going without the

benefits accruing from that status quo and you're seeing the same thing with other powers eventually there's some sort of incident which causes a rethink because the decline of that particular country has gone on you know you look at the u.k. and the suez canal and see the next hundred fifty six how that was you know they realized at that point the jig is up we can't really support this level of empire we need to drop our let's talk about quantitative easing for a second does perpetual war mean perpetual quantitative easing i don't know if you saw jim records piece recently on king world is but he talks about how the talk about q.e. three coming up in june is a mess misnomer because the fed's balance sheets roughly three trillion dollars so a maturing of the stuff they've got on their balance sheet already means perpetual q e type night printing improper to any is that the case and as

a perpetual war go along with this can you comment my thinking is that the political constraints for the federal law greater than the hyperinflation us and the people talk about you know things. money money printing on end with you know a lot of people who say you know you're actually three before it's going to continue on and on but the reality is is that the fed is constrained politically at this particular juncture they're not going to be able to go all in. with q.e. i think that we're done after q.e. two the question is what if the economy or when the economy relapses will the fed be able to up the ante and go for more or will we have some sort of systemic crisis and i think that. there are so constrained but i wouldn't bet on

a q e three happening before some sort of systemic crisis happens no matter what scenario you paint it looks like higher interest rates are coming at some point and this is why are so book ok. list as an example the reality is if you look at the the the interest rates generally speaking interest rates for longer term maturities are in expression of the expected short term interest rates there's obviously some risk premium for holding assets there longer deeded but the reality is that if the fed has zero percent rates forever then there's no reason to expect five or six percent rates for ten year bonds so if the fed signals we're not going to raise interest rates anytime soon does there's a huge arbitrage opportunity at that point for someone to go out into the into the

market but once of long dated assets and then you know short term in some way with treasury strips or something of that nature so the reality is that this whole argument that you know interest rates are going up is constrained by the fact that interest rates are zero percent for a short bit it. should be treasuries well you know that sounds all semantic and pretty much hogwash and that's why i call them summers paulding hire people who are buying gold and silver like john paulson is that going to be the richest man in the world very shortly if it is called process five thousand listen to your arguments and they say what are you talking about you're just adding more money you're just injecting trillions of credit with this fact what this arbitrage are you crazy no no no there's a difference between and she depreciation and interest rates just because of my currency depreciates by. fifteen percent or twenty percent doesn't mean that

interest rates go up you have a prime fish evidence with japan just take a look at japan and you see interest rates at seven percent i mean these guys have two hundred percent debt to g.d.p. and people like recruits have been talking for ten years that japan is going to have some sort of you know massive debt spiral it's not so great there you have the evidence it's actually not true well let the market decide how about why why not our thanks how do you know it's like their body how do they know let me get in here . is my question let's say why don't we have the market step up the fed step back and see what is the true demand for us ten year now it's in five year now that's out there in the marketplace now if you take the fed which is the biggest buyer of the town paper you've got bill gross of pimco saying you know what the fed is removed from the equation and japan's no longer buying china's no longer buying it's no longer this artificial market who's going to buy u.s.

treasuries i mean keep interest rates artificially cheap then as i just told you if interest rates are zero percent you will have buyers at a minimum let's just pay a scenario interest research your percent the fed stops buying asset prices stop being elevated you have systemic crisis of some sort yet states g.d.p. swoons a media. people will go to treasuries as you know because of the flight to safety you know bill good treasuries a risk assets you have a perfect scenario right there for a decrease in interest rates as i said if the fed says you know twelve months out the economy's looking bad we're going to have rates at zero percent obviously if you're buying a twelve month a one year treasury why would you pay three percent for the treasury when in fact the fed has already told you that. rachel the zero percent it doesn't make it

a set or you do the math do the math ok when you end up with negative interest rates and that's a loss of purchasing power and that's a reason to buy gold and silver and that's the reason for hyperinflation as people completely lose faith with these currency magicians and scoundrels in your town washington d.c. no wonder you're viewing this in this way you're being corrupted by inside the beltway thinking you know a lot but the reality is hyperinflation is a political it's a political action it has nothing to do with money the reality is hyperinflation occurs in specific circumstances and those circumstances are political but is a loss of faith in the current. tax evasion foreign currency of course it liabilities by the central government. some sort of loss of productive assets those are the preconditions for hyperinflation you don't get it just by printing money you certainly can't get currency to be snit but you don't get

hyperinflation it just it's not true right now japan has announced they're going to issue some reconstruction bonds that for the first time in history that i'm aware of they're going to be backed by the bank of japan now it's just the first bond collateralized entirely by the printing press in your knowledge and harrison gold bonds are collateralized full faith and credit of the governments that issue the currency it's not as if it's backed by gold or silver so obviously you know the reality is for any any particular bun it could be monetized by the by the fiscal or by the monetary authority yeah but they're saying that the bonds have no connection to the underlying economy they're just going to print up a bunch of paper and use it as a medium of exchange even though it's inherently worthless i mean does that sound unsustainable to me but i know that you're a paper bag and. i love paper people but whatsoever actually i think that the

currencies are not the way to go i believe that actually we should go away from currency but i do better understanding of the money system the fact that if the currency system none of the assets are actually are the liabilities of the government are backed by anything other than the faith and credit of the of the nation that's issued the paper the reality is they could always print more money if they wanted to do so that's true in the united states and that's what hyperinflation as i said is a psychological it's a political it's because of the loss of faith in the currency as long as you know the legal tender laws are there as long as you have to pay taxes in a currency basically you have nowhere to go that's the reality ok that's all the time for we have this week with you at harrison and i thank so much for being on

the kaiser report thank you max that's going to do it for this edition of the kaiser report with me max kaiser and stacey herbert i want to thank my guests and harrison and credit write downs dot com if you want to send me an e-mail please do so i kind of report it r t t v dot ru until next time this is max keiser saying bye you know.