at a certain point obama felt that he was politically exposed and although i don't believe obama was keen on intervention at all as long as the us military or secretary of defense gates they felt they had to go along of course the joke is that eastern libya is basically the people who are the rebels they provided in the iraq war young man to commit suicide against us and iraq than any other country and that was alexander editor of counterpunch and that's all the time we have i want to thank you so much for watching and christine will be back in an hour and a half. seems to me for slate the sleeves the speech originals like green do brackets need to do more on site drug companies now we're going to the fight to explore the cosmos to.

speed. up. the future.

if if. if . 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 write your present where you go for we're. what do you say well i'm calling it the c. herbert fun china can it's a little bit of a plutonium weeks of your rhenium 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 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 arsenic in very low doses just dosages. mile of the beneficial health benefits as i recall but of course you would want us all a gallon of it and of course in coulter i mean this is how the misinformation or nickel and so logical capitalism magnet's a logic and ignoto logic capitalism exactly she's got the same kind

of misinformation that gets people to think that radiation is good for you made global warming is good for smoking cigarettes is good it's many fractured benefactor in ignorance well she wrote this on her blog a little blog which. it's amplified on fox news if you look at this little video here. lowing 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 if from going to york times in the times of london there's a growing body of evidence that. radiation in excess of what the government's says is part of the minimum amount there should be exposed to are actually good for you and reduce cases of chaos so that of course was bill o'reilly egging her on and you can even see in our culture space that she's kind of laughing like she knows it's a joke but if that's the way they do it is that a shocking number

a stunning number a physicist believe right and in fact it would be shocking if there were one that believed she were correct to say go on to fukushima it'll be very good for you but that wasn't on the payroll of boxen isn't anyone like murdoch you know this is a yellow journalism taken to you know a radioactive extremist 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 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 a fragile economic recovery yet 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 them rich not poor right and see they can't distinguish what they do from what's. 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 uses their credit card to affect the persona of a rich person but their debts never go away j.p. morgan goldman sachs they push their debts out of the government and then put it on the people but for somebody who goes into debt to effect through 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

eleven cough gets eight years prison sentence as the hedge puts it the man who single handedly only 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 sergei 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 two or three quarters of straight profits not a single down day which is statistically impossible unless you're stealing 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 a lot it a silo adding to the economy well 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 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 valley 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 zynga 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 saw some open market for fifty something cash thousand and ten he sold them on facebook to other people who want to use this for it to raise their virtual farms on farm bill or fight in the mafia wars which are which these currencies are use now this guy's lawyer said the last is ingo is impossible to quantify because the chips 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 these. anybody who robs a bank to buy to steal dollars is just using it to their death 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 he doesn't have any collateral in which to float trillions of dollars worth of worthless fee out of the only thing backing up the u.s. 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 an exchange if you don't recognize it won't bomb you will kill you it happened to saddam hussein so

happening to it in iran that if you don't use the dollar to trade oil and other commodities will kill you best or you think that backs up the u.s. dollar that's the only thing that makes it of any value whatsoever it as a unit of currency is completely worthless it's less than worthless it's some even as valuables as zynga because people actually was worth losing a dollar to raise worthless virtual bust balls on worthless farmville part of worthless pasteboard which of course goldman sachs has taken 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 sentence has three flecked on public confidence and security systems an online business with someone reaches security in this way but he's completely wrong look

at the constitution look at what thomas jefferson had to say of limits on 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 intellectual the. 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 in 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 but 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

actual in point mike's and 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 plus a selective prosecution which of course it is in favor of the corporations vs the freedom fighters this also takes me on spin next headline are we about to see the first ever gongs back to specifically by 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. 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 fiachra 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 over population that is now turning against this form of virtual currency instead. and revolting in north africa the middle east in europe in the united states and wisconsin the global insurrection against begging 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 workers wealth anybody who has to work for a living it's no wonder 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 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 feet of 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 thank thank you. don't go away much more coming your way. a charmer over here broadcasting live from washington d.c. coming up today on the big picture.

today violence is once again flared up. these are the images. from the street. today. but i'm back on the kaiser a part time now to go to washington d.c. and talk with ed harrison former diploma bontrager and now a blogger at credit write downs dot com ed welcome back to the kaiser report thank you lex good to talk to you all right and arson revolutions are sweeping the arab

world sending oil higher japan faces nuclear meltdown in the u.s. is about to hit another debt ceiling uses that momentum to launch another war putting aside the moral and strategic implications is it a good idea fiscally there's concern about the fiscal ramifications because obviously it's not going to be as dire interims of the outlook is as compared to say afghanistan and 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 now 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 a 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 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 kennedys for greed empires the reality is that you know it's after will work too 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 the point now where the benefits of the u.s. military far outweigh the. 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 standard collapsing the falling of america's competitive nesa around the world the decrease in america's infant increase and if i'm one terrell in our tally versus the other industrialized nations that's 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 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 incident makes 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. 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 in maturing of the stuff they've got on their balance sheet already means perpetual

q e type money printing improper to any is that the case and as a perpetual war go along with this can you comment well my thinking is that political constraints for the federal lot greater than the hyperinflation us and the people talk about you know things. money money printed on end would say yeah a lot of people who say that you know you have q e three q 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 and with q.e. i think that would go. after a few into the question 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's. 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 looks like higher interest rates are coming at some point and this is where our so but ok so there you look at japan as an example the reality is if you look at the the interest rates as generally speaking interest rates for longer term maturities are an expression of the expected short term interest rate because there's obviously some risk premium for holding assets that are longer dated but the reality is is that if the fed has a zero percent rate 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 it there's

a huge arbitrage opportunity at that point for someone to go out into the into the market but i up 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 that you know interest which are going up is is constrained by the fact that interest rates are zero percent for short dated. for short due to treasuries well you know that sounds all semantic and pretty much hogwash and that's why gold and silver of paulding higher people are buying gold and silver like john paulson is now going to be the richest man in the world very shortly i think it's called process five thousand listen to your arguments and they say what are you talking about here yes adding more mature doesn't jacking trillions of credit with this right what is arbitrage are you crazy no no no no there's a difference between actually depreciation and interest rates just because of my currency depreciates butt. fifteen percent or twenty percent doesn't mean that

interest rates go up you have a crime to fish evidence with. just take a look at japan do 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 a good sort of you know massive debt spiral it's not so great there you have the evidence it's actually not well let the market decide how hot what why not part. of their body how do they know let me get in your preferred side. 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 years it's out there in the marketplace and that if you take the fed which is the biggest buyer of its own paper you've got bill gross of pimco saying you know it was the fed is removed from the equation and japan's no longer buy china is no longer buying is no longer this artificial market

who's going to be buying u.s. treasuries i have to keep interest rates artificially cheap then well as i just told you if interest rates are zero percent you will have buyers as a minimum let's just say the scenario interest rates are it's your percent the fed stops buying that's 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 will risk assets you have a perfect scenario right there for a decrease in interest rates as i said if if the fed says you know twelve months out the economy's looking back 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. richard the zero percent it doesn't make it

a sex toy to do so dude about 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 feeling 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 the money the reality is hyperinflation occurs in specific circumstances and those circumstances are political that is a loss of faith in the current. tax evasion foreign currency. or 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 it could be 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 collateral. full faith and credit governments 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 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 you're a paper bug and. i love paper people but whatsoever actually i think that fia

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 the fia currency system none of the us it's are actually the liabilities of the government are backed by anything other than of the faith and credit of the of the nation that that's it should be 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 that 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 way with you and aronsen and i thank so much for being on the

kaiser report thank you max or any that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i want to thank my guest and harrison of credit write downs dot com if you want to send me an email please do so at kaiser reporting r t t v dot ru until next time this is max kaiser saying buy out.