the. cheese along the old girls. says fried snow in the palm of your. fierce clashes between pro-government and opposition forces in libya intensify after a fist night coalition air strikes on who should lead the allied intervention after the u.s. the creases its involvement cells to bring results the lead police crackdown on anti austerity protesters in brussels with tear gas and water cannons and critics say western countries should look to the problems at home before imposing cuts all spending millions on build libya campaign. and the first images of the workers struggling to stabilize the situation at your pants fukushima power plant have

emerged reports say three more of the so-called nuclear kamikazes have been exposed to dangerous levels without radiation next is the kaiser report here on r.t. . for the flu we've got. the biggest issues get the human voice face to face with the news makers. and this is the kaiser report covering all the markets financial scandals around

the globe let's bring in stays here it's nice to see herbert max keiser i brought you a present where you go for a beer. what is that well i'm calling it stacy herbert sunshine in a can it's a little bit of a plutonium mix of uranium because according to this first headline max a glowing report on radiation he has apparently radiation is good for you. 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 dosage is not a nuclear meltdown right arsenic in very low doses just just. mild beneficial health benefits as i recall but of course you would want to swallow a gallon of course in a cult or i mean this is how the misinformation on michael and a logical capitalism agne to logic and. noto logic capitalism exactly. the same kind of misinformation gets people to think that radiation is good for you made global warming is good to smoking cigarettes is good it's many facts are a factor in ignorance well she wrote this on her blog a little blog which think it's amplified on fox news if you look at this little video here. lowing radiation very very good but you're not down on radiation poisoning and well it's not me i'm citing a stunning number of physicists and it from the new york times in the times of

london or there's a growing body of evidence that radiation in excess of what the government says is that of a minimum exposure were actually good for you and reduce cases of cancer so that of course this bill o'reilly egging her on to and you can 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 of 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 the wasn't on the payroll of fox and it isn't anyone like murdoch and you know this is a yellow journalism taken to you know radioactive extremists radioactive journalism murdoch fox news and coulter bill o'reilly who package dangerous lies and put that into the public space hoping to protect the industrialists that they represent in

their quest to dismantle the global economy and cause you know we 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 fragile. economic recovery yes the last paragraph then goes on to note that actually you know so 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 they say they can't distinguish what they do from what they goldman sachs or morgan stanley who borrow money from the government is zero percent interest rate speculate keep all the profits and put all the losses in the public domain where the average user of the consumer out there on the street used their credit card to effect the persona of a rich person but their debts never go away see j.p.

morgan and goldman sachs they push their debts on to the government and then push it on the people but for somebody who goes into debt to effect to the heir of someone with a lot of wealth they would 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 we value or wealth is and the confusion often caused by our own governments confusing us through misinformation a lead a cough gets eight years prison sentence as zero hedge puts it the man who single handedly only lost 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 got 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 in two or three quarters of straight profits not a single down day which is just. really impossible unless you're stealing using reg markets they of course are considered to be adding to the liquidity and market making functionality which are a code word for smash and grab and larceny and they are a lot it a silo adding to the economy meanwhile this guy's exposing the real financial terrorists he's a freedom fighter well a similar story is 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 single 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 now we've been talking about zynga for a while they counterfeit money they put counterfeit money into the system in the form of electronic asset list no collateral based electronic money that is diluting the value of the u.s. dollar diluting the vet if 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 ingo is the thing that is worse than the federal reserve bank now the story's incredible the they print worthless electronic

virtual currency this guy hacks into the mainframe as a freedom fighter to stop the financial terrorism then he resell some on some open market for fifty something cash thousand in cash he saw them on facebook to other people who want to use this for to raise their virtual farms on farm bill or fight in the mafia wars which are which these currencies are you. yes now this guy's lawyer said the lost his ingo is impossible to quantify because the tips were virtual and the company could create as many as it wants 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 us economy does 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 what 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 pernetti doesn't have any collateral in which to float trillions of dollars worth of worthless money the only thing backing up the us dollar as has been pointed out on this show by many guests is the u.s. military that is to say there's no intrinsic value to the u.s. dollar the only value is if you recognize this as a mute of exchange if you don't recognize it will bomb you will kill you happiness of i was saying something to it in iran that if you don't use the dollar to trade oil and other commodities will kill you best to weaken the backs of 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 is even as valuable as a zynga because people actually was worthless dollars to raise worthless virtual vegetables on worthless farmville part of worthless baseball which of course goldman sachs is taking public for fifty billion or more based on people voluntarily checking themselves into a casino glegg state known as goldman farmville well judge philip wausau in making

his decision said it is a considerable aggravating feature that someone hacks into systems in this way when so much business and personal finance is done using electronic means therefore the sensors hastert reflect on public confidence and security systems an online business. but someone reaches security in this way and he's completely wrong look at the constitution look at what thomas jefferson had to say i believe it's an article seventeen referring to copy rights they should be of limited term unlimited value this is a copyright issue and of course the digital millennium copyright act the patriot act all these guys who are destroying the intellectual property of the united states and the global economy using fake virtual currency that they're copying infinitely are challenging those who actually want to have real copies of real works of art and works of business ideas that are being pushed out of the

intellectual property domain by these terrorists and given the freedom fighter 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 but missing like that it just evaporated and yet it didn't seem to undermine anything excellent point my point which is that the u.s. dollar is equally worthless and ben bernanke is equally culpable in an equally punish a scam per this judge's definition unless a selective prosecution which of course it is in favor of the corporations versus the freedom fighters this also takes me on to the next headline are we about to see the first ever gone back specifically by the printing press this is a headline from joe wiesenthal legendary paper bud who we just interviewed thanks to the fed's ability to monetize the debt to some extent all u.s.

sponsored backed by the printing press but it's never explicit 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 out nonsense and claiming it has. you 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 slave moment of a population that is now turning against this form of virtual currency enslavement 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 a cost to 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 well anybody who has to work

for a living is no one here that people only less and less people want to describe themselves as working class because why would you want to work for a paycheck which is fixed and yet the value of that fixed income is declining all the time exactly inflation and why does ben bernanke when he's in front of congress or in these other central bankers and they ask about inflation they say that we don't see any inflation and in fact we're scared about deflation that's why we're going to print up another trillion of our five 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 i think thank you. don't go away much more coming your way.

wolf. remind you the latest in science and technology from the ground. we've done the future cover. welcome back to the kaiser a part time now to go to washington d.c. and talk with ed harrison former devilment bontrager and now a blogger at credit write downs dot com and welcome back to the kaiser report thank you max good to talk to you all right and arson revolutions are sweeping the arab

world sending oil higher in japan faces nuclear 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. done in terms of the outlook is as compared to say afghanistan or iraq more personally or 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 right one to 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 a two trillion dollars so yeah of course when they start these things they always

figure out that it's oh 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 and maybe explain live up by what ron ron paul is saying there what i think is actually going on is that you can look at it in terms of kennedy's fall of empires the reality is that 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 do you sustain some degree of 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 u.s. 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. costs in terms of money for instance the 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 there 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 stayner collapsing the falling of america's competitive nesa around the world the decrease in america's infant increase in infant terrill not tally 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 haul 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 eventual 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 incident eight 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. 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 i mean sharing of the stuff they've got on their balance sheet already means perpetual q.e.

type money printing in perpetuity is that the case and as a perpetual war go along with this can you comment well my thinking is that the political constraints for the fare a lot greater than the hyper inflation people talk about you know things. money money printed on end. you know a lot of people say that you know you have q e three q e four is going to continue on and on but the reality 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 she read to the question this is what happens 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 you'll. the cli

there are so constrained that i wouldn't bet on a q e three happening before some sort of systemic crisis happens no matter what scenario you paint looks like higher interest rates are coming at some point and this is what are so but ok so. there you list this example the reality is if you look at the the interest rates generally speaking interest rates for longer term maturities are in expression of the expected short term interest rate because obviously some risk premium for holding assets there are longer dated but the reality is is that if the fed has zero percent rates for ever then there's no reason to have 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 it there's a huge arbitrage opportunity at that point for someone to go out into the into the market by a bunch of long beaded assets and then you know short them in some way with treasury strips or something of that nature so the reality is that this whole argument. you know interest rates are going up is constrained by the fact that interest rates are zero percent for short dated. you know should be treasuries well you know that sounds all semantic and pretty much hogwash and that's why gold and summers balding higher and people are buying gold and silver like john paulson is now going to be the richest man in the world very shortly as soon as gold crosses 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 right with this arbitrage are you crazy no no no there's a difference between actually depreciation and interest rates just because of my currency depreciates but. fifteen percent or twenty percent doesn't mean that

interest rates go up you have a prime facia 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 has 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 what why not mark and i understand it's like their body how do they know let me get in your preferred side of. 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 ten five year notes out there in the marketplace and then if you take the fed which is the biggest buyer of its own paper you've got bill gross of pimco saying you know what's the pay it is remove from the equation and japan is no longer by china's no longer buying it's no

longer this artificial market who's going to be buying u.s. treasuries i don't keep the interest rates artificially cheap then as i just told you if interest rates are zero percent you will have buyers as a minimum let's just kind of scenario this research your percent perfect stuff by pass a crisis stop being elevated you have a systemic crisis of some sort united states g.d.p. swoons immediately people will go to treasuries as you know because of the flight to safety you know bill good treasuries are risky assets you have a perfect scenario right there for it decrease in interest rates as i said if the if the fed says you know twelve months up economies look 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 is already told you that. rich going to zero percent it doesn't make it set

to do so do them 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 all this the reality is piper inflation is a political it's a political action it has nothing to do with the money the reality is hyperinflation occurs in specific circumstances and those circumstances are political that is a loss of faith in the currency tax evasion foreign currency. or of course it liabilities by the central government. some sort of a 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 debasement but

you don't get hyperinflation it just it's not true all 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 the going to be backed by the bank of japan now is just a first bond collateralized entirely by the printing press in your knowledge and harrison well bonds are collateralized full faith and credit of the governments issue the currency is not as if it's done by gold or silver so obviously you know the reality is for any any particular bond it could be monetized by the by the fiscal or by the monetary authority yeah but i'm 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 your paper bike and. paper colored people bug

whatsoever actually i think 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 in a few currency system none of the assets are actually the liabilities of the government or backed by anything other than the. faith and credit of the nation that's. the paper the reality is they can always print more money if it 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 we have this week with you and harrison and i thank so much for being on the

kaiser report thank you max writing us going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i want to thank my guests and harrison of credit write downs dot com i want to send an e-mail please do so at kaiser reporting r t t v are you until next time this is max keiser saying you know . from. them.