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max kaiser and this is the kaiser report covering all the markets finance and scandals around the globe let's bring in stuart stacy herbert max keiser if i write you a present you got for me or. 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 the 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 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 arsenic and very low doses just doesn't just. mild the beneficial health benefits as i recall but of course you would want to swallow

a gallon of it the course in coulter i mean this is how the misinformation article and a logical capitalism agnus a logic noto logic capitalism exactly. 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 fractured manufactured ignorance well she wrote this on her blog a little blog which tank gets amplified on fox news if you look at this little video here. lowing radiation very very good when you are not on on radiation poisoning well it's not me i'm citing a stunning number of physicists and it 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 says is that of a minimum out there should be exposed who are actually good for you and reduce

cases of cancer so that of course this 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 that's the way they do it is that a shocking number a stunning number of physicists. if i'm 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 fox and it 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 here 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 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 them rich not poor right and see they can't distinguish what they do from let's say 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 in the public domain whereas 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 put it on the people but for somebody who goes into debt to affect through the air 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 combined in the next you

had lines 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 cough gets eight years. isn't sentence as the puts it the man who single handedly own 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 cough has just got a ninety seven month sentence for doing absolutely nothing but copying some golden 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 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 scaling 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 will disguise exposing the real financial terrorists is 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 designing the 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 bow 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 paul true but much worse is zynga is worse than the federal reserve bank now this story is incredible the big prints are 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 sold them on facebook to other

people who want to use this for it to raise their virtual farms on farmville or fight in the mafia wars which are which these currencies are use now this guy's lawyer said the lost his 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 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 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 saying 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 the 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 is an exchange if you don't recognize it will bomb you will kill you it happened to saddam was saying something to iran but if you. we'll use the dollar to trade oil and other commodities will kill you that's the only thing 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 this is fun even as valuables as zynga because people actually want worth losing the dollars to raise worthless virtual best balls on worthless farmville part of worthless space blog which of course goldman sachs has taken public for fifty billion or more based on people voluntarily checking themselves into a casino good leg state known as goldman farmville well judge philip wausau in to cook 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

census hastert reflect on public confidence and security systems and online business when 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 copyrights 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 again another 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 the 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 excellent point 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 spin next headline are we about to see the first ever bonds back to specifically by the printing press this is the headline from joeys and the legendary paper bug 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 a central bank issuing electronic fee up nonsense and claiming it has value it has no bell you 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 fruit or perpetrate the global in slave bent over 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 it was constant the global insurrection against banking education but there is a cost to it there is the cost of printing up more again and that is to the savings to pensions to those on fixed incomes to people's wealth it to 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 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 trade it 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. a time arriving here broadcasting live from washington d.c. coming up today on the big picture.

welcome back to the kaiser court's time now to go to washington d.c.

and talk with ed harris in. former dickel mine bontrager and now a blogger at credit write downs dot com ed welcome back to the kaiser report thank you 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 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 as dire in terms 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 to happen in the in the near future for the united states right now if you remember when the

u.s. . was 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 i start these things they are speaker 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 live it up while 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 all of. the reality is that you know it's 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 it. 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 away the. the cost in terms of money for instance the united states spends as much money on its military as the entire world compart 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 no 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 nester around the world the decrease in america's infant

increase in income our terrill in our 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 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 you know a rethink because the decline of that particular country has has caught on you know you look at the u.k. and suez canal incident one nine hundred fifty six how was it 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 this 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 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 the political constraints for the fare a lot greater than the hyperinflation us and the people talk about you know things . money money printing on end would say yeah a lot of people say you know you're actually three fourths 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 q.e. two 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. 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 what are so book ok so here you list as an example the reality is if you look at the the interest rates generally speaking interest rates for longer term maturities are an expression of the expected short term interest rates because there's obviously some risk premium for holding assets there longer deeded but the reality is 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 there's a there's a huge arbitrage opportunity at that point for someone to go out into the into the market but the bunch of long dated 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 rates are going up is constrained by the fact that interest rates are zero percent for short dated. you know for sure to treasuries well you know that sounds all semantic and pretty much hogwash and that's why gold and so forth bolting higher people are buying gold and silver like john paulson is that going to be the richest man in the world very shortly as soon as paul crosses five thousand listen to your argument 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 a 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 the facia 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 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 part. of their bunny how do they know let me get in here. is my question let's say why don't we have the market step up how 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 its own paper you've got bill gross of pimco saying you know what the fed is removed from the equation and japan is no longer buying 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 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 say the scenario is just research your percent the fed stops buying that's a crisis stop being elevated you have systemic crisis of some sort united states g.d.p. swoons the 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 rate there for a decrease in interest rates as i say if 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 is already told you that. rates will be zero percent it doesn't make it sets do them and do the math ok when you end up with negative interest rates and that's a lot 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 it all 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 it is a loss of faith in the currency tax evasion foreign currency.

for 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 beeston it 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 at harrison blowguns or collateral. full faith and credit of the governments issue the currency it's not as if it's backed by gold or silver so obviously you know the reality is for really any particular bar and it could be you know matar's by the by the fiscal or by the monetary forward yeah but are you 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 bike and. i love paper people but whatsoever actually i think a few 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 it's currency system none of the assets are actually one of the liabilities of the government or 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 that it's because of a 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 and 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 kaiserin for with me max kaiser and stacey herbert i want to thank my guest and harrison and credit write downs dot com if you want to send me an e-mail please do so at kaiser report r t t v dot ru until next time this is max keiser saying by all .

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