now past the hour here in the russian capital without c. reminder now the top stories on the u.n. fails to agree on condemning syria's crackdown on and see government protesters russia saying censure could provoke more violence meanwhile the u.s. continues to prop up the arab spring but washington's a main ally israel could feel the brunt if radicals come to power. a new middle class is growing rapidly in india global brands are flocking to get in on the game as spending power in the country accelerates to new levels of society. and the

world's leading financial body for seize and to america's rain on the economic throne the international monetary fund says the top spot will be snatched by china in just five years. while beijing's rise towards replacing washington as the world's economic top dog is just one of the many worlds big subjects which max and stacey and get to grips with next. these. guys are this is the cuz the report chock full of voodoo cults satanic cults the dolls speaking of dolls stacy her tell me more and the cult of america is in the news and many of our headlines here max i am a bombshell 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 that 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 upon you well the i.m.f. has set like hell but thirty 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 twenty 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've made that prediction before on this show i think we'll see it in two thousand and 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 in the madness of crowds driving attendance at the theme park like assembly line of self actualizing can do attitude that has given us such triumphs in popular culture as idiocracy and 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 there's no one care this is liam powell again in a telegraph and he's wondering a lot of doubt close 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 jones as we've talked about on this show is driven by robots but by high frequency trading bots courtesy of folks like goldman sachs we talked about it on the show goldman sachs has servers parked 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 wile e. coyote shortly before he plummets down into the canyon and 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's another headline see headline after headline after headline of people recognizing that america and the american dollar and people who have faith in 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 and that's the point it's become this echo chamber cult like america can fail which is very. and then make. 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 are they held by common cults here you've got three hundred million americans who are worshipping this idea of american style free market capitalism that 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 is twenty five percent of the world's garbage so the rest of the world the british five early but as far as those living inside they don't really understand that they're being used as cold fodder the equivalent of drinking the cyanide laced kool-aid would be purchasing a mcmansion with some prime mortgage this is them committing suicide it's the equivalent of drinking cyanide laced kool-aid it's financial suicide as we talked about financialization of the economy has turned into this hybrid reality with that combines political malfeasance with financial larceny and that's the combination between obama's white house and wall street merging together into something even more insidious than fascism it's a club to suck. it's a club that. is the current political financial school of thought in america today and it's not working it's unsustainable let it go at this point that

this koolaid drinking this subprime mortgage taking population is the headline c m b c video let's bulldoze the foreclosed home because the fixtures the wife buy 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 what 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 so we tear down phantom homes foreclosed homes our or even built homes by the homeowner. is that you know all the the pictures in the life or whatever even the collar are just not going to be stylish by the time people actually want to buy and yes well of course this is what they tried actually the one nine hundred thirty s. cultural products milk and other agricultural products were destroyed did it work then no nothing worked and they tried to get a price to go up by destroying the food even though people were starving in america

you've got millions of people homeless going to destroy houses to try to bump up the price never thinking that maybe if you put the homeless people into the houses you would create an economic stimulus that would cost your tax revenue and perhaps give you the means to pay down your dead 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 white house that two plus two equals. a gathering at facebook site of course 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 and 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 for joey isn't really upset he's a classic part of a cult always opposed to squeaky fromme of the paper but cole every time silver goes higher he writes a headline this is gonna be a bubble this is going to be a bold dollar the no bull joke and your friggin psychotic well he's reporting on there are reports of unnamed people spoke 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 . encouraging the chinese central bank to get rid of two herds of their dollar reserves of three trillion dollars so they 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 is going to let that one the aura be appreciate both giving trainees 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 oracle ok i don't care what anybody says he knows what's going on and then here's another headline from max keiser got on i think your head lies because you always take the quote that is so important and relevant and you make it they think you know i reject program i've ever to say that. eric sprott what the so called silver experts neglect to account for in their models and projections is that the fia 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 but 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 pattern attempt to create a hard money global currency standard and it's facilitating this in a number of ways of spreading information it's spreading the ease with which people can buy in. your goal easily spot price possible 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 does nothing paul krugman is a huge flopping non-sensical dirtbag over there at the new york times makes no

frickin sounds well you know 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 puddle 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 to the i.m.f. bank's face three point six trillion dollar wall of maturing debt i.m.f. says so the world bank's faced a three point six trillion dollar wall of maturing debt in the next two years and they must compete with debt leaving 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 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 china will 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 that their 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 much don't go away much more coming your way of talking to chris martin fascinating guy so stay right there.

welcome back to the kaiser report time now to go to massachusetts talked with chris martenson author of the 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 the leverage just we shifted a whole lot of. debt from the private side to the public side that happened all over the world and now on top of this we have the japanese quake a rather startling drop off in g.d.p. in the world's third largest economy with no one after effects that we're going to go on when 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

patterns of liquidity flows coming out of japan going back into japan at this point in time couple that with the federal reserve making noises about dropping q.e. two at the end of that not going straight to q e three and i think they see a very large liquidity problem coming up to a theater near you soon. i want to stay on this for a little bit here presence and because we're describing a situation where normally people would be penalized if their businesses or they borrowed money imprudently and it turned bust and the system washes those people out now when that occurs there is a sign. one 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 aggregation 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 who actually form the backbone of a system the capital system are being completely penalized and in fact subsidizing the malinvestment of the system and can 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 to watch here and you're exactly right on the other side of this when you're subsidizing all of us all good people maybe you shouldn't be going to use a 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 savers but let me ask you a question concerning another big part of the economy that we've 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 so 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 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 the new sheriff and. what happened upon vigilantes i wish i knew my speculation is that they're actually fully in swing they're in action when it comes to portugal when it comes to ireland when it comes to greece and were seen by going to meetings in full swing gear but in the united states i think probably the person who could be described as medieval largest vigilante the person who's best position holding the war just a man a treasury bill gross pimco him goes to 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 barely blinked at all the mats because the fed is the largest purchaser and now the largest holder of treasuries in the world i mean the whole point the thread used is the original motto but if you can't point the period on the floor you on the fed's home turf would you do well you go to gold and silver so absolutely 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 the concept of money itself is now at risk and the fed is playing it very dangerous came here and there are conducting an experiment and i guess down one path everything works out maps nice but down the other 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 testified before congress they asked him about inflation and he says you know what i am more worried about the flash and inflation

we later learned from insiders who work at the fed we're now working in the private sector that what bernanke he looks like and looks at when he said terminating whether we have got inflation or deflation he looks 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 he he doesn't look at gas prices he doesn't look at the prices he doesn't look at any of the things that people are experiencing every single day in terms of inflation he only looks at this one indicator and as we've just described with. the absence of the bond vigilantes isn't that indicator faulty and it's neat looking at an index that's given 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 fair characterization so the fact is buying through there so macau tips on a daily basis weekly basis we see the treats come across with this all the time and

so how can you on that one you buy these things and you know obviously when you're buying something pretty buying pressure you're pushing both the price up and the yield down and then to look at that and say hey look b. you'll this is kind of load your song not worried about inflation it's self referential garbage as you said the highest order it's just nonsense when he puts it out there and people doubt they're going to go well i mean that's what he said it looks like he's got his eye on the ball with meantime if you look at commodity inflation this isn't like just sort of happening since january you can put a commodity chart up maybe a continuous commodity index one of my favorites two thousand and two we've been on now pretty much a ten year old in commodities oil paints to go bloody low interest free money punish the saber policies with it and 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 exploited usually a crisis 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 miles pretty good. you were recently interviewed by x. all merck are you in or her 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 the center deal 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 spewing garbage you've got total rampant market manipulation in the marketplace. it's all part of the dollar so what are people waiting for now is the dollar is getting close to its all time low but hasn't kept in to its all time low what what's happened happened now in the near future 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 if it doesn't stop just printing money and putting it out into the universe as it were

sooner or later we're going to have a currency accident u.s. dollar you know u.s. dollar special its worst reserve currency of the world and there's trillions of them parked all over the place in the custody account of the fed various central bank vaults all over the place some of it even unnatural 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 and mediately 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 and as long as the music's playing i got to be as free to leave you 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 but somewhere between here and bear i'm convinced that the dollar has a date with a much much lower value and the concern is that it will get there in 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 pressures build big build build and finally release just like a fault line giving and so there's there's definitely pressures on this right you know i see the dollar as having a disaster at some point unless and until lot of things change and i don't see any evidence opposing their changing now i read recently that people in america who are upset about the rising price of gas they drive their car around from station to station looking for cheaper gas and so in fact they run out of gas and they're stuck on the road somewhere with no gas apply this analogy and this thought. so this wall of maturing debts 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 maturities the defer and forget you know mentality but what we're seeing is that all these maturities and are clustered around this huge wall

of maturing pets so how much is due to mature what's the timeframe on this and is this the fact that they have reckoning is it tied in to what use you think could be the a dollar. you know ron davis with destiny so also governments that they have two things they have to worry about the new bed issuance that they have to put out there so they float use things and say the treasury auction in the u.s. this case and the fed steps in and you know ends up buying equipment about seventy five percent of the best just the new issue and then there's what you're talking about too which is this wall of maturing debt meaning you know we saw the war in europe on last year now it's a year later guess what we have to pay it off and we want to wall back as we go forward so right now in japan over fifty percent of their g.d.p. is going to make sure that this next year it all has to be financed and the united states about twenty eight percent of g.d.p. these are enormous numbers all of that has to be roll over in and has to be able barry schooled by the markets and if it's not it will be middle ground. and that's

you know what you're raising is a really serious issue because we have not just the sovereign debt it's all the treasury which is about twenty seven percent across all the advanced economies twenty seven percent cittie pete we also have a whole bunch of bank at this it'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 it are they do they intend to plunder sleepers no but 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 happen with quiddity upon all the steps it will not roll we'll have a drink in a funny actual axe. that i understand why they're doing that without looking at just what comes after that so you save the system for another period you get to where you're going to underdog ok for a while that's great what about next year and next year the pressures just keep building in this is the problem we're facing what predicament we're facing is we don't have a clear plan for how we're going to get all of this debt funded and paid for. our

system once it's explained in my book the system we have the money system needs to keep expanding this is the fight but there's understatement i should just take a minute i think the e.c.b. is his facing the same issues china's looking at the same issues peers looking at the same issues we're all here but i would say tomorrow i was right we're in the middle of it right now right it has to keep expanding just like made up to keep expanding and enron had to keep expanding this is an enormous ponzi scheme and as you point out once the gig 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 of a pair of people for that is really quite tragic all right chris lawrence and it only got through half my questions a lot that eon again soon thanks for being on a passing report big pleasure and mine all right and that's going to do it for this edition of the kaiser report with me max keiser and stacy herbert and i think my guest chris martin sent if you want to send me an e-mail please do so at kaiser report at r t t v are you with a lifetime this is a nice kind of thing.