it would cost them just. one. few seconds. these sealed barrels still. you're ignoring. international news live from our studios here in central moscow this is our t. top stories this. is charged with inciting racial hatred after giving an interview with us in which he slammed the man behind a string of deadly bombings here in russia. nato air strikes have had a rebel take position in libya with up to fifty deaths reported a major gadhafi controlled oil field is also being destroyed by the coalition. of the question. and portugal turns to the e.u.

to drag it out of a financial black hole into rolls ways of anger among european taxpayers will have to foot yet another bill. talking about with more news for you in less than thirty minutes from now a. look at the scandals behind the financial news headlines and explore the murky links between banking and the drug straight report is next. for. him. max kaiser this is the kaiser report you know a lot of people say love makes the world go round but that's false in fact what makes the world go round is cocaine there ever is

a yes we're going to talk some torpedoes of truth today because it turns out that much of what we think is a rated or a listed is actually collateralized by a whole bunch of class a. first we're going to talk about charlie sheen's detroit disaster walk outs where the torpedo of truth or as one gentleman on you to put it charlie sheen and destroy torpedo. but that's quite a review well charlie sheen is the embodiment of the american dream he thinks he's winning he's really losing that's the key isn't it. there's a delusion out there there's a thought process that goes in the mind of the collective unconscious that everybody in the u.s. is winning but in fact if you look at some of the numbers and you look at how they're doing component of the around the world they're actually losing and like charlie sheen many americans have lost their job like charlie sheen many americans

are gone reality t.v. made for themselves and they're not winning no no no they are losers well charlie sheen was the highest paid actor in all of hollywood just as on wall street warren buffett was the highest paid fund manager forget david sokol is the f.c.c. about to tell charlie monger to suck it in and i remember we covered this story charlie munger is warren buffett's right hand man and now david sokol who is supposed to be the heir apparent to warren buffett has resigned after it turned out that he could have been front runner insider trading on lubrizol which he bought shares in this company prior to convincing warren buffett to buy huge chunk of it well david sokol appeared on c.m. p.c. and said i don't believe i did anything wrong charlie monger by my own three percent of b. y. d. before he asked me to look at it for a while and this is that chinese are manufacturing of electric cars that charlie

munger apparently owned before he convinced warren buffett to buy and it's sad because warren buffett was really the last in a finance in america that had any moral authority whatsoever of the oracle of omaha and he was constantly referenced as the quiet a studious graham following a good guy who would come in and see goldman sachs or before that it was solomon brothers its arms out he's just a conniving backstabbing insider trading market manipulating schmock like. or jamie diamond or lloyd blankfein or any of the other crooks on wall street the fact that he's in omaha doesn't make him any less of all street crooks and charlie monger. needs to to excuse himself from the public forum and just disappear for a while because he's told all embarrassment i don't care how old the guy is they

put on your depends and get out of dodge because your back your stinking up the joint charlie munger get out of here david sokol thinks that he would be able to get away with the same crimes that a guy like charlie monger can but i think remember there longly apply selectively to certain people some guys are just totally exempt from them and you see this in this following headline max how a big u.s. bank laundered billions from mexico's murderous drug gangs so this is the guardian news and they've done a deep investigation into the story that we've covered before which is why hovey a bank and they were found to have laundered three hundred seventy eight billion dollars or thirty percent of mexico's g.d.p. in this time of drug money the cocaine of cocaine yes three hundred seventy eight billion dollars three hundred seventy billion dollars laundered through our cobia which of course now is owned by warren buffett's company berkshire hathaway. and of

course you never talk about that either and it's a huge part of the mexican g.d.p. thing and the bank paid a far well it's three hundred seventy billion in money laundering through the cost can be zero and they paid one hundred ten million dollars fine or less than two percent of one year's profits from markovian what cobia is now owned by wells fargo warren buffett and six point five percent of it but from this article there's a very interesting point that i want to note that relates to this whole financial catastrophe first of our well yes started really getting involved in these costs can be zero in two thousand and four just went to the violence really started getting extreme and the mexican drug wars in april and may of two thousand and seven three years later we're cobia as a result of increasing interest and pressure from the u.s. attorney general's office began to close its relationship with some of the costs as

they can be zero and then in july of two thousand and seven all of our cold years remaining ten mexican cosseted cambio clients operating through london suddenly stopped july two thousand and seven what happened to all of us have few thousand and seven the world credit crunch the world credit crunch began so what we see year is that the global banking liquidity is funded from the mexican cocaine drug cartels when somebody decided to go after them they withdrew their liquid cash because remember the global economy it's all credit and paper money there's actually no cash except for the drug money they were they took the drug money off the market and they crashed the global economy there is a bear stearns went bankrupt the reason lehman brothers went bankrupt is because a mexican drug cartel was drew their cash from the market as a protest against the investigation in other words so. well cove you're if i'm

following this correctly they had to pay a fine no further investigation was pursued presumably because if they want to after this story deeper the mexican drug cartel would threaten to withdraw the money again and throw the global economy back into a total standstill well i think they learned their lesson because let's go on to the next headline the bank run we knew so little about this is from the new york times gretchen morgenson and she looked at the federal reserve freedom of information documents that were released only last week this is based on the bloomberg news efforts to force the fed to release information that who they were loaning money to at the fed's discount window and it turns out according to gretchen morgenson and august two thousand and seven as world financial markets were seizing up to mass to conform banks began lining up for cash from the federal reserve bank of new york that aug twentieth commerce bank of germany with three

hundred fifty million at the fed discount window two days later citi group j.p. morgan chase bank of america and rocco via each received five hundred million dollars now banks only go to the discount window when they're in serious crisis and they're facing a liquidity crunch thus began gretchen morgenson says the bank run that set off the financial crisis of two thousand and eight so in retrospect it was mexican drug gangs the ending of the money laundering via the banks without that access to liquid cash they froze up because it turns out it appears that drug money was the only cash in the system americans don't have jobs nobody we only have. ok ask there's no liquidity there's only crime all right so we covered the story at the time and we've said it we've talked about this and we said about expected it yeah and we said that the the crash of two thousand and eight the only way that the

wheels of global banking system started turning again was that the money was released by the drug mexican drug lords but what we're saying today is that the reason why the crisis happened to begin with exactly yeah was that with that with the withholding of the cash and i remember let me tell you something stacey i remember just very vividly when i was working on wall street 1980's every friday we should have cocktails on park avenue and watch this parade of losing and travel down park avenue into the basement of citibank everyone knew this was money that was being loaded by citibank from drug money this was an open secret nobody got out of this so i'm glad to see now twenty at least twenty twenty five years later people are beginning to understand that the global finance community the global banking system runs entirely on cocaine money so when they say well why is the war on drugs failing because they need the cash to run the banks why is the drug problem so rampant around the world because bankers need that money to pay their

bonuses the bankers when we say bankers are terrorists they kill people and they have the moral equivalency of our mexican drug lord lopping the head off a baby to support their crimes and again that's what we mean they're there they're the same those same two faces of the same coin they're terrorists blankfein dinon ows a whomever drug lord they're all terrorists they all revolve around cocaine and money laundering and we now we know. unequivocal we based on the gretchen morgenson report and others like colby of bank of course warren buffet's nonvolatile that who knows what charlie munger is habit is a guy must be a horse after time up until july two thousand and seven when money was. circulating through the banking system from a class a drug dealing those c.d.o. backed by a code via bank j.p. morgan bank of america all these other banks that went polling month to the fed prior to their c.e.o.'s may have been

a rated following that all the downgrades happened now we first reported on this in two thousand and eight when antonia maria coast then head of the united nations office on drugs and crime said he had evidence to suggest the proceeds from drugs and crime were the only liquid investment capital available to banks on the brink of collapse he said quote interbank loans were funded by money that originated from the drugs trade there were signs that some banks were rescued that way but again there's another aspect to why do analysts give these studios a rating of aaa why does moody's s. and p. fitch give what is obviously garbage a aaa rating isn't it clear that they're high on cocaine well it clear the people of movies executives of movies fiction and s. and p. are need to be in reality because they're taking massive quantities of cocaine to support their delusion is a max what it suggests thing now that walker has not been put in trouble nobody is

there's no criminal sentence there's nothing but a tiny tiny tiny tiny minute little fine like. they're saying it's aaa rated now because class a drugs are once again backing up the collateral that were often assets were selling i guess this is again why the federal reserve doesn't want in on it because if you open up the wallets there of the fed whether it's the fed in new york of the one in washington you're going to find pablo escobar sniffing twenty tons of blow yet if you were sniffing around the federal reserve you guys like the. reserve. list you've got you know charlie sheen type nostromo charlie sheen. all right. thanks so much for the journalistic piece on the cocaine trade a lot colder. thank you max well we'll be coming back with a lot more right after this so don't go away.

welcome back to the kaiserin for time now to go to upstate new york and talk with author and blogger james howard kunstler james welcome back to the kaiser report i mean it's nice to be with you and i believe you have a phrase entropy made visible that's not all about you know entropy is that force

is nature that drives us towards disorder and death and destruction it's the second law of thermodynamics and you know what it basically means is that things rather. you know your coffee cup never warms oh more it always just cools off you know people don't go in the direction of being younger they go in the direction of being older and passing away you know things don't get better when you use them they break better and i guess this also of kind of play and say what we're seeing the local the fukushima power plant destruction there's been a collapse and this just in time supply chain inventory methodology which when you take one you take away one piece and entropy ensues and things suddenly get ugly which in the sentence that fit in yes i think you know your pea is really the

reason why things break there in the world but i have a special kit theory about a pair of these days i think they're going to be go before i think they're going to at some point in the year or two ahead. it decide you know we had the industrial adventure and we just can't do it anymore because we have to import over ninety five percent of our hydrocarbon fuels in energy and we really are going to be able to do that so let's go back to the eighteenth century i think that's going to happen over there i know it's kind of an out of the box idea but there you have it both an interesting thought i we've talked about a michele a lot about what we call neal feudalism where you've got modern societies breaking down and you've got the emergence of a cup soccer see who are pulling up the drawbridge you know all the assets are inside the club doctor scene everyone else is left outside of that in the

wilderness so apply to japan as a whole all it's are enough of a vestige of society there to pick up on and i no i don't not an expert on japanese culture but it seems like they have clung to many of their medieval traditions is there just again thinking out the boxes are enough of a vestige narrative to build out of could they conceivably go this in this direction james howard kunstler well i don't think we really know they do have a very deep and fine culture and it was kind of blasted away by there's two hundred year venture less than two hundred euro ditcher industrialism on the really sure that they have any choice anymore you know one of the things speaking your feudalism that i do believe we're going to see is they're going to be a lot of desperate people in the industrial nations who you know really can't feed their families or kate made as much money as they did before or are in some way or other finding themselves in desperate trouble and i think what we will see is that

they will sell their allegiance to some authority or person or group you know in order to have. security for food shelter and the basic necessities for a wife and and that's the essence of feudalism when you're selling. allegiance to somebody for security sure i remember i used to live in a in the south of france a town called bill from sir mare and this town that started something like eight hundred years ago by a low ball a pirate arriving and selling people security saying let me pay a stipend to me every year and i'll protect you from any forces that come about so you see a return to this type of model where broken down locally so instead of let's say the us being the world's global protectorate and extracting stipends from the world you know the world has to pay its annual tribute to america in one form or another to keep them safe as the us collapses the model is broken down and we see more of

a medieval model merged but let me ask this about japan for a second to tomic energy industry the plants and japan they're used to essentially boil water and that's what that's what that all atomic energy configuration is all about to run turbines right now in japan like iceland is sitting on huge geothermal resources i read somewhere recently that the geothermal resources could do very thing supplies much power as the atomic energy industry can is have you heard about this is that true as a practical what are your thoughts on that there's a question that japan is located on the real fire there part of the pacific and there's a lot of volcanic activity a lot of earthquake activity what it will think that a lot of people don't understand about that kind of energy is that you can actually run the local sweet spot and we also don't know what happens when you sink

a lotta pipe into these fractures in. places where the the crest of the earth is disturbed me that you can actually disturb it more by doing it ok imagine sticking pipes into the ground. not having a great idea how that how it all works now to stop radiation from leaking from the fukushima plant into the sea tepco has deployed a few kilos of diaper absorbent now reminds me of the golf balls thrown into the deep water horizon well during i can pass or feel that b.p. catastrophe what are your thoughts on these again returning to medieval as on these primitive methods of responding to these high tech catastrophes people will be able to seem to do with the case and you know the when people are desperate they'll do strange and desperate things so it's sense of privacy you know they they just can't you know sop up that radioactive liquid or keep it from going into the sea you're getting into the ground so you know they're doing with here are the three dip is in

there yeah they're throwing diapers and garbage and whatever they can get their hands on like they did you know that the famous junk shot of the deep water trail so here it's very asymmetric and that's why they come up with these high tech brilliant multi could trillion dollar schemes to do deep water drilling or have a tomic energy plan of the ring of fire but nobody or invade iraq for that matter but there's no contingency plan if anything goes wrong everyone's got their thumb up their strange way and they're saying look we never thought i could possibly go wrong let's go to garbage out it i mean it was a big salary that where were these politicians and engineers and i want to sociate with this kid seem to ever imagine that anything to ever do fails the human race is kind of a comical species you know sometimes things go work out for us we're we like to think magically that everything is going to work it was for did you happen to see mr obama's energy speech this week giving the highlights another example of our

absolute indigo that he can tell the truth to ourselves you know we just are just stuck in credible magical thinking that you know that there are huge undiscovered explored areas of north america that we're going to get huge amounts of oil out of it's complete nonsense. by the way larry kudlow got on t.v. last week and said we have a hundred years worth of shell shale gas and excuse me three hundred years of shale gas and president obama said we have a hundred years of shell gas and both of those statements are completely untrue we have probably about four to six years worth of shale gas energy at the rate that we use it and maybe twelve years if you include all of the natural gas of any kind that we drill in north america you know we have these crazy ideas that we're going to run an electric car fleet well here's an interesting thing let's say by some miracle we ramped up an electric car fleet of one hundred ten million electric cars

in the usa and that's really optimistic we run over two hundred million cars ok so what do you think is going to be the political shot if only ten million people get to drive and all the rest of them are paying through the nose for gasoline or case even afford to own a car do you think they'll be any political repercussions of that because i do. these are the kinds of things we're not even thinking about well barack obama is putting himself to be to charlie sheen of presidents and he's crap he's great on twitter he's got a great twitter following but when it comes to the levering easy task yeah so and you were out recently quoted as saying that you believe that industrial farming will soon and talk about us all a bit by industrial farming i mean what we take could be the normal way of farming in america which is you know a huge acreage is with giant machines a lot of diesel fuel

a lot of hydrocarbon based soil amendments herbicides pesticides fertilizers. you know we're going to get to a point where we're we're going to have trouble carrying that on and you know there's another part of a fuel farming picture that we don't think about at all there's another main. i think that we use and that's capital you know it takes a lot of borrowed money to run a big. operation in the midwest and we're running out of capital and the reason we're running out of capital is because there's a huge amount of borrowed.