world long gone. have to try to. redo the diaries of those of our choice. welcome back you're watching live from moscow these are the top stories the u.n. fails to agree on an e.u. proposed statement to condemn syria's crackdown on protesters with russia saying it could worsen the violence meanwhile the u.s. support of the arab spring could backfire on washington's main ally israel if radical islamists manage to hijack the uprisings. and neighboring india seeing its new middle class grow rapidly and their spending power accelerate business is growing and global brands earth slogging to get it on the day. their national

monetary fund predicts america's reign as the world's largest economy will be over in just five years forecasts say it will be overtaken by china as early as two thousand and sixteen. china's rise towards replacing america as the world's economic top dog is just lot of the world's big money subjects which maxim stacy get to grips was next on our. hazar this is the kaiser report chock full of voodoo cults tenet cults the dolls speaking of dolls stacy her family more and the cult of america is

in the news and many of our headlines here max i am f. bomb shell age of america and the international monetary fund has just dropped a bombshell and nobody noticed that's the important lie in there from gauchos market watch nobody noticed because of course nobody in a cult ever knows if they're deranged it's only outsiders that it's it was obvious to you for years before that's right whether in scientology or whether you're long the dollar you're in an insidious cult a snow globe of denial and your world is crashing the con you well the i.m.f. is set like hell but sort of date they set an actual date for the end of this cult and that is china will surpass that of america in real terms and two thousand and sixteen well it's already happening i think twenty sixteen will be the recognition by the us government in the form of transferring ownership of fannie mae and

freddie mac. the biggest landlord in america to the people's bank of china i made that prediction before on this show i think we'll see it in twenty sixteen but the transfer of power is already underway and you know this is unmistakable but nobody in america wants to talk about it because it might upset the. popular delusion and the madness of crowds driving attendance at the theme park light assembly line of self actualizing can do attitude that has given us such triumphs in popular culture as idiocracy. jackass here's another headline along these lines of. the members inside the cold have no idea just how doraine they're looking america appears to be sleepwalking towards disaster because no one care this is liam how again

a telegraph and he's wondering why the dow closed at three year highs just as the s. and p. downgraded the outlook for u.s. debt well most of the volume on the exchange yes and p. five hundred the dow jones as we've talked about on this show is driven by robots but by high frequency trading thoughts courtesy of folks like goldman sachs we talked about it on the show goldman sachs says servers park next to the exchange they put in millions of trades every single day they steal hundred million dollars on average per day and this is keeping the prices artificially high like while the coyote shortly before he plummets down into the canyon in his quest to capture the road runner in this case the road runner is being eaten by china and america is plummeting to its death into the canyon of a never never land and then here is another headline see headline after headline after headline of people recognizing that america and the american dollar and

people who have faith and it still are members of a cult over the past few years mainstream analysts have shown a tenacious blind faith in the u.s. economy and the dollar that goes far beyond religion to the point of mindless cultism and this is from max kaiser dot com but it's a quote from brandon smith of market and he's looking at the fact that america looks like a cult but he said when even they begin to question the future of american finance as has been occurring more and more every day you know it's time to worry yes it's beyond religious fervor that's the point it's become this echo chamber cult like america can fail which is very. and demick. and you see like suicide cults whether it's or another one jim jones remember him the kool-aid they made the idea of drinking kool-aid popularize that notion everyone committed suicide and beyond them or the hale bopp comet cults here you've got three hundred

million americans who are worshipping this idea of american style free market capitalism it doesn't exist they support market manipulation on wall street and they're going to die as a result now that's less than five percent of the world's population it is twenty five percent of the world's garbage so the rest the world breathe a sigh of relief but as far as those living inside they don't really understand that they're being used thought or the equivalent of drinking the cyanide laced kool-aid would be purchasing a mcmansion with a subprime mortgage this is them committing suicide it's the equivalent of drinking cyanide laced kool-aid but it's financial suicide as we talked about financialization of the economy has turned into this hybrid reality that combines political malfeasance with financial larceny and that's a combination between obama's white house and wall street merging together into something even more insidious than fascism it's a club to suck as though it's

a club that. is the current political financial school of thought in america today and it's not working it's unsustainable to go at this point that this koolaid drinking this subprime mortgage taking population is the headline c m b c video let's go all those the foreclosed home because the fixtures the life i or whatever even the color is not going to be stylish by the time someone buys them so let's take a look at this video from c.m.t. see six point three percent below where we were a year ago so we want to throw out this idea that you know people have talked about over the past few years but maybe it's finally time to realize we need to do it should we tear down and own homes foreclosed homes power or even built homes by the homeowner. is that you know all the fixtures in the wide or whatever even the color are just not going to be stylish by the time people actually want time yes well of course this is what they tried actually in the one nine hundred thirty s.

cultural products milk and other cultural products will destroy their work then no nothing work and they try to get the price to go up by destroying the food even though people are starving here in america you've got millions of people homeless so they're going to destroy houses to try to bump up the price never thinking that maybe if you put the homeless people into the hauser's you would create an economic stimulus that would foster tax revenue and perhaps give you the means to pay down your bed no that would require mathematical skills giving you the ability to add two plus two and coming up with four but that is beyond the current mathematical ability of the obama what is that two plus two equals. a gathering at facebook headquarters in california to get a bunch of stupid people on facebook to vote for me because they're morons yeah so the rest of the world is aware of this cult behavior they see these americans having drunk the sub prime kool aid and hoping to fix that by bulldozing these

homes and here's the headline max gold and silver making new huge moves as china makes fresh noises about dumping the buck so this is from business insider poor joe isn't really upset he's a classic part of a cult joeys opposed to squeaky fromme but a paper book called every time silver goes higher he writes a headline this is gonna be a volatile this is going to be a problem because the dollar the book joe and your fruit psychotic well he's reporting on there are reports of unnamed people's bank of china officials talking about shifting the bank's massive reserves into hard assets outside the dollar and also there was another report over the past week where an important banker in china . it's encouraging the chinese central bank to get rid of two thirds of their dollar reserves a three trillion dollars get rid of two trillion of it and move into hard assets

and other commodities well this is where peter schiff could be right again you know couple years ago he came out this idea of decoupling that china was going to let the yuan the aura be appreciate thus giving chinese increased purchasing power to ride out this huge financial cluster bomb that's affecting economies all over the world and that's certainly in the cards if the r. and b. appreciates and chinese have got that ability to ride out the inflation happening in food and energy so peter schiff i think is going to be on the show coming up soon we can talk about it in more detail but the guy is a freak an oracle ok i don't care what anybody says he knows what's going on and then here's another headline from max kaiser dot com and i pick your head lies because you always take the quote that is so important and relevant and you make it but i think you know i program i have. to say that. eric sprott what the so called silver experts neglect to account for in their models and projections is that the fi out money experiment has failed and in this context we

believe the market has assigned world's reserve currency status to gold not the us dollar well there is a sneaky thing going on in the global economy states herbert gold and silver are becoming that the facto world reserve currency if you've got gold vending machines in airports around the world people watching this show in airports around the world are probably walking by a gold vending machine right now go get yourself some gold the proliferation of gold exchange traded funds on exchanges all over the world the internet this is the first time since the internet came around it became globalized back in the late ninety's early two thousand there you had an attempt to create a hard money global currency standard and it's facilitating this in a number of ways it's spreading information it's spreading the ease with which people can buy in. sure gold easily spot prize puzzle couple percentage points and this is what people are doing it as they do it big crowd out the paper money the

three out money the keynesianism that's been in place since world war two that's been a huge failure there's nothing paul krugman is a huge flopping non-sensical dirtbag over there at the new york times who makes no frickin sense well you know that as i said this quote is from eric sprott he's a big buyer of silver and he's just saying that a lot of people like joe wiesenthal also had a headline talking about silver in a bubble and they're just getting it all wrong you're not looking at it that we're in a new paradigm shift and that brings me to this final headline coming back today i am math banks face three point six trillion dollar wall of maturing debt i.m.f. says so the world banks face a three point six trillion dollar wall of maturing debt in the next two years and they must compete with debt laden governments to secure financing the i.m.f. warrant last week but for thirty years all these governments have been extending the maturity and now like the tide moving out during a tsunami those on the beach. i think that oh my goodness look at all these pretty

shells i'm going to wade out into the areas there and pick up all these pretty shells not knowing that the tsunami wave is about to crush them this is the tsunami of maturity that's about to overwhelm the entire global economy and force in my opinion the introduction of a new global currency based on the special drawing rights introduced by the i.m.f. and the i.m.f. is getting aggressive about downgrading the u.s. because the u.s. is no longer going to be running the global economy anymore it's going to be a central bank somewhere in europe with the i.m.f. and the world bank and a new global reserve bank and people are going to be paying world tax country tax state tax and local tax to pay for this new world bank and it's all coming very very quickly and of course trying to have a huge role in determining the value of these currencies going forward in the new currency grid post bretton woods to post world reality well the i.m.f. gives you some advice on which are the lowest lying lands if you're going to avoid

the tsunami irish and german banks and the most debt to roll over this year and in terms of national sovereign debt japan and the u.s. have the most amount. looks like plenty more coming your way on this show going forward as the global economy collapses well stacy ever thanks again for being on the kaiser report thank you max don't go away much more coming your way i'll be talking to christine martin fascinating guy so stay right there. in the. real you the latest in science technology from. the future. to the. we've got. the biggest issues get the voice ceased to cease with the news

media. no. but i'm back to the kaiser report time now to go to massachusetts talk with chris martenson author of crash course the unsustainable future of our economy energy and environment chris welcome to the kaiser report thank you it's good to be back all right chris lawrence and you write the breakdown draws near your timeline is imminent tell us about it there are so many pressures that are still building in the system that have been washed out of the system we failed to take advantage of a perfectly good crisis and even ridge just shifted a whole lot of them. get from the private side to the public side it happened all over the world and now on top of this we don't generally squeak a rather startling drop off in g.d.p. in the world's third largest economy with unknown after effects that are going to go on room and we're all one of the things i'm predicting it's not just the

products not just the i phones we have to worry about your it's the reversal of decades long avon's of liquidity flows coming out of japan and we're back into japan at this point time couple that with the federal reserve making noises about dropping q.e. to the end of that note going straight to q e three and i think they see a very large liquidity problem coming up to a theater near you soon now and i want to stay on this for a little bit here chris lawrence and because we were describing a situation where normally people would be penalized if their businesses or they borrowed money imprudently an attorney and the system washes those people out now when that occurs there is a segment of the population that benefits wildly and these are the savers in other words if the economy is going through a period of saving of capital. gains those people who are living on retirement income those people who are living on pensions those people who are saving money those corporations who are prudently. saving money though they benefit

in that scenario and what we've seen in the last twenty years is that savers people actually from the backbone of a system the capitalist system are being completely penalized and in fact subsidizing the malinvestment of the system and could you talk a little bit about that i'm a huge believer in incentives you know you get when you incentivize and right now we're incentivizing people to speculate we're incentivizing those who take huge risks we're incentivizing people who want to borrow more and more and more even though i think this whole problem that we're in the predicament we're facing can be summarized in three words to begin with too much debt and you're exactly right on the other side of this when you're subsidizing all of these all of the people maybe you shouldn't be you want to use a judgment term like that i mean these are people you know the speculators people who went too far are being rewarded essentially on the backs of states but let me ask you a question concerning another big part of the economy that we used to rely on and

that these are these so-called bond vigilantes this is the group of folks who if the fed is getting to a profit and injecting too much cash into the system they would sell bonds and treasury bonds to the point where the fed would have to become more prudent in their policies there they seem completely absent currently and the slack seems to be being picked up by what i call the gold and silver vigilantes so the question is what happened to the bond vigilantes and is it true that the gold and silver vigilantes have stepped into the breach and really this is the new sheriff in town what happens with bond vigilantes i wish i knew my speculation is they're actually fully in swing there in action when it comes to portugal want to come so ireland when it comes to greece and we're seeing what i'm going to release in full swing near book united states i think probably the person who could be described as maybe bill largest literally if you the person who's best position holding the war just

a man approaches be. bill gross pimco who goes to it and through its hands up and said listen we're walking away from treasuries we don't like overpriced at this point in time and the market merely blinked a moment because the fed is the largest purchaser and now we're just holder of treasuries in the world i mean don't point the fed is is the original motto but if you can't put the fear on the floor you on the fed's home turf would you do well you go to gold and silver so absolutely no you did gold and silver are signaling something very important here and what they're telling me it's the same thing that i've been worried about for years which is that money and self confidence money itself is now at risk and the fed is playing a very dangerous game you're conducting an experiment on just one count everything works out nantz nice but then we go the path we face destruction of the world's reserve currency let me pick your brain a little bit here for a second ben bernanke when he testifies before congress they ask him about inflation and he says you know what i am more worried about the flash and we later

learned from insiders who work at the fed who are now working in the private sector that what bernanke he looks like and looks at when he said terminating whether you've got inflation or deflation he looked at these tips the treasury inflation protection securities because they are an indicator of future inflation trends and he looks at those and he sees that they're not trading at much of a spread over the ten year treasury and in his mind he doesn't look at prices he doesn't look at food prices he doesn't look at any of the things that people are experiencing every single day in terms of inflation and he only looks at this one indicator and as we've just described with the absence of the body. isn't that indicator faulty and isn't looking at an index that's giving completely false signals and isn't he therefore kind of a boy in the bubble who's just spewing pure garbage that's a very pure characterization so the fed is buying through there so much counted on a daily basis weekly basis we see the troops come across the disk. all the time and

so how can you on that one ian buy these things and you know obviously when you're buying something creating buying pressure you're pushing that the price up and the yield parent in to look at it and say hey look the yield this is kind of low here so i'm not worried about inflation it's self referential garbage as you said of the highest order it's just nonsense but he puts it out there and people out there gets it go well i mean that's what you said it looks like you use code as an eye on the ball but meantime if you look at commodity inflation this isn't like just sort of happening since cheney where you can put a commodity chart up maybe the continuous commodity index one of my faves two thousand and two we've been on now pretty much a ten year bull run in commodities all paints to vote on the low interest free money punish the saber policies of the period it's it's now got to the point where it's just silly for the fed to say we're worried about deflation we're disinflation given all the things that we need all the things that can be exported usually the

prices for all of those are going up very strongly so it's risking the most important thing in the fed's tool box which is their credibility. the guy inhaling it on flatulence and saying oh that's about as pretty good. you were recently interviewed by x. all merck are you in of are you viewed actual market who is very well known in the currency space runs a few funds now the point of this one of the big points of this interview with that why is anyone waiting to sell the dollar so here we've got a situation where the fed's out of control they're delusional they're spilling garbage you've got total rampant market manipulation in the market places it's all tied to the dollar so what are people waiting for now if the dollar is getting close to its all time low but hasn't kept up to its all time low what that's had going to happen now in the near future but eventually you know when we get out five ten years i think everybody knows what happens if the united states doesn't get off of its fiscal prophecy and get its multi-trillion dollar deficits under control for

fed. and stop just pretty money and putting it out into the universe as it were sooner or later we're going to have a giant currency accident us dollar us dollar special it's worth reserve currency for the world interest trillions of them parked all of the places custody encounter but fed various central bank ports all over the place so nobody even a natural says in south america i mean it's everywhere once the dynamic comes where people really lose faith in the dollar i think we're going to see a very rapid evolutionary square change immediately in the dollar's value i think the answer to this right now is that there's a lot of big money out there appear the ones who really control the movement of things and there's they're all pink as long as the music's playing i got a dance right so what do you do if you're holding several billions or maybe even a trillion u.s. dollars what do you do if you're china it's a really tricky business and put somewhere between here and they're convinced that the dollar has a date with a much much lower value and the concern is that it will disappear and so rather disorderly disruptive way on some tuesday in february sometime you know it's just

going to be an event. that will just you know some markets work the pressure is building building building following the release just like a full going giving and so there's there's definitely pressures on this where you know i see the dollar's having a date with disaster at some point in less until a lot of things change and i don't see any evidence that those things are changing now i read recently that people in america who are upset about the rising price of gas pay drive their car around from station to station looking for cheaper gas and so in fact they have run out of gas and they're stuck on the roadside somewhere with no gas now apply this analogy in this thought process to this wall of maturing that you write about and this day of reckoning for the dollar it seems that over the past twenty years the problems have been kicked down the road by extending the charities the defer and forget you know mentality but what we're seeing is that all of these maturities are now clustered around this huge. wall of maturing beth

so how much is too mature what's the timeframe on this and is this in fact that they have reckoning is that tied into what you say you think could be the a dollar thing you know ron davis with destiny so also governments they have two things they have to worry about the new pet issuance that they have to put out there so they float these things and in say the treasury auction in the u.s. this case and the feds have sent in you know ends up buying equipment about seventy five percent of that best just the new issuance then there's what you're talking about too which is this wall of maturing debt meaning you know we saw the one year bond last year and now it's a year later that's what we have to pay that off and we want to roll that as we go forward so right now in japan you fifty percent of their g.d.p. is going to be maturing over this next year that all has to be financed and the united states it's about twenty eight percent of g.d.p. these are enormous numbers all of that has to be rolled over him and has to be able barrie smoothly by the markets and if it's not it will be able better and that's

you know what you're raising is a really serious issue because we have not just the sovereign debt that's old maturing which is about twenty seven percent across all the advanced economies twenty seven percent cheap be we also have a whole bunch of bank debt that's coming due we've got an option arms that are coming due we've got all this debt that's just coming due this is the context for understanding really what the fed is doing and are they do they intend to plunder savers know what they're looking at this whole suite of things coming up we're saying listen if we have to sacrifice one or two of these things i guess it's going to be the savior because if we don't have it will quickly upon all this debt it will not will all will have a gigantic financial accident i understand why they're doing that what they're not looking at is what comes after that so you say the system for another day to get to where you are you know underdog go kate for a while that's great but what about next year and next year the pressures just keep building in this is the problem we're facing the predicament we're facing is we don't have a clear plan for how we're going to get all of this debt funded. paid for the

system once it's explained in my book the system we have the money system needs to keep expanding this is the fight the fed is under to mean i should just pick a member of the e.c.b. this is facing the same issues china's looking at the same issues piers looking at the same issues we're all here but i would say to morrow as a right we're in the middle of it right now right it has to keep expanding just like made off to keep expanding and enron had to keep expanding this is an enormous ponzi scheme and as you point out once the jake is up it can pack it down into a huge catastrophe very very quickly and the fact that our leadership in america is doing nothing to prepare people for that is really quite tragic all right chris martenson we only got through half my question is a lot that eon again soon thanks for being on the kaiser report big. all right not going to do it for this edition of the prize report with me max kaiser and stacy herbert i guess chris martenson if you want to send me an e-mail please do so at

kaiser report at r t t v are you until next time this is my kind of thing.