the pain and suffering will never be forgotten. as well as the joy of liberation. here a spring of nineteen forty five on our. top stories now i have for you here on t.v. international divisions over syria as nations try to end the bloody crackdown on antigovernment protests as the un has condemned the unrest and has called for an investigation but russia wants censure of could lead to more violence. washington support for opposition movements in the middle east and north africa could be backfiring on its biggest ally israel visits actually boosting radical islamists and hamas fighters say instability in those regions as diverted attention allowing

them to target israel. final flight for a russian pilots as a new york court finds him guilty of drug trafficking moscow says the u.s. kidnapped constantine yet to brought him to america with out notifying russian authorities. and also reporting that the millions of drug addicts in russia could soon face legal action for their habits with the government planning to hold them criminally accountable on the part of the plan includes making drug tests compulsory in schools and i'll be back with more news for you this thirty minutes from now here not in the meantime beijing's rise towards replacing washington as the world's economic top dog is one of the money world's big subjects which max and stacy get to grips with next and because reports they're with us for that.

kaiser this is the kaiser report chock full of voodoo cults say tenet cults the dolls speaking of dolls stacy her family more 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 because 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 along the bow or you're in an insidious cult a snow globe of denial and your world is crashing upon you well the i.m.f.'s 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 twenty sixteen well

it's already happening i think twenty sixteen will be the recognition by the u.s. 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 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. 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 in the 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 the s. and p. five hundred out of 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 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 in his quest to capture the road runner in this case the road runner is being eaten by china and america is plummeting through 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 they were dollar and people who have faith and it still are it members of a cult over the past few years mainstream analysts have shown a tenacious blind faith in the us 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 the 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. endemic and. and you see like

suicide cults whether it's 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 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 of the 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 world breathe a sigh of relief but as far as those living inside they don't really understand that they're being used as coal fodder 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 thinks 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 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. 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 sub prime mortgage take population is the headline c m b c video let's bulldoze 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 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 the band in homes foreclosed homes our or even built homes by the homeowner. that you know all of the pictures in the life or whatever even the

color are just not going to be stylish by the time people actually want to buy and this well of course this is what they tried actually in the one nine hundred thirty s. agricultural products to milk and other cultural products were destroyed did it work then you know nothing worked and they tried to get the price to go up by destroying the food even though people were 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 debt 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's 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 pour joeys and paul really upset he's a classic part of a cult film wiesenthal's the squeaky throne the paper book goal every time silver goes higher he writes a headline this is gonna be a chordal it wasn't going to be a. dollar than a book of joe and you're freakin psychotic well he's reporting on there are reports of unnamed people's bank of china officials talking about shifting the banks 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 thirds of their dollar reserves of three trillion dollars so 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 ok now this idea of decoupling that china is going to let the yuan the r. and b. 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 the 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's noticed no one and then here's another headline from x.y.z. guy how many pick your head lies because you always take the quote that is so important and relevant and you make it i think. 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 the 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 a 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 now you've had an 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 and stay. sure gold easily spot price pasta couple percentage points and

this is what people are doing and as they do it they crowd out the paper money the three out money keynesianism that's been in place since world war two that's been a huge failure there's nothing paul krugman is a huge flapping non-sensical dirt bag over there at the new york times makes no for it concerns 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 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 to the i.m.f. thanks faced 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 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. 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 can 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 pose 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 i think most debts are all over this year and in terms of national sovereign debt japan and the u.s. have their most announce it looks like plenty more coming your way on this show going forward as the global economy collapses well space never thanks again for being on the kaiser report thank you max don't go away much more coming your way i've been talking to christine martin fascinating guy so stay right there. we've got. the biggest issues good voice ceased to say so with the news makers.

welcome back to the kaiser. part time now to go to massachusetts talk with chris martenson author of a 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 indeed leverage just shifted a whole lot of the. debt from the private side to the public side that happened all over the world and now on top of this we're going to squeak a rather startling troppo in g.d.p. in the world's third largest economy with no one after effects that are going to go on room and we're 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 and we're back into japan at this point 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 the theater near you soon now 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 and it turned bust 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 capital system are being completely penalized and in fact subsidizing the malinvestment of the system could you talk a little bit about that i'm going to huge leverage 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 we're subsidizing all these old people maybe you shouldn't be if we want to use a judgment term like that i mean these are people who at 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 the so-called bond vigilantes this is the group of folks who if the fed is getting to a problem 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 i 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 the new sheriff in town would have been the pundits i wish i knew when speculation is they're actually fully in swaying their inaction when it comes to portugal want to come so ireland when it comes to greece and we're seeing one to two meetings in full swing near what united states i think probably the person you could be described as maybe bill

largest vigilante the person who's best position holding what we're just going to be bill gross of pimco who goes to and through it's hands up and said listen we're walking away from treasuries we don't wake up appraised at this point in time and the market barrel. link below nantes because the fed is the largest purchaser and now the largest holder of treasuries in the world i mean the whole point defended used is the original motto but if you can't put a period on the floor you on the fed's home turf what do you do well you go to gold and silver so absolutely no you read it 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 concept of money itself is now at risk and the fed is playing a very dangerous kate you're conducting an experiment on just on one count everything works out man it's 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 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 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 the e.o.p. doesn't look at gas 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 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 isn't looking at an index that's having completely false signals and isn't he therefore kind of a boy in the bubble who's just spewing pure garbage because it's a very clear characterization so the fed is buying through there so much counted on

a t.v. basis weekly basis we see that the troops come across this all the time and so how can you on that when you buy these things and you know obviously when you're buying something pretty buying pressure you're pushing the. open in the you'll parent and then to look at that 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 the highest order it's just nonsense when he puts it out there and people laugh their heads and go oh 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 started happening since january you can put a commodity maybe to a 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 thanks to both money low interest free money punish the saver policies with 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 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 yeah the guy is on flatulence and saying us smells pretty good. you were recently interviewed by. merck are you in a view that 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 part of the dollar so what are people waiting for now the dollar is getting close to its all time low but hasn't kept up to its all time low but what's happened happened now in the near future. 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 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. you know it's us dollar special it's reserve currency for the world interest trillions of them work all over the place in custody you count at 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 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 there all pinky as long as the music's playing i got advanced rates what 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 beer i'm convinced that the dollar has a date with a much much lower value in the concern is that it will get here 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 give us some markets work pressures build big build build and finally release just like a fault line getting and so there's there's definitely pressures on this right you know i see the dollars now having a disaster at some point in lessons until 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 they 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 a road somewhere with no gas now apply this analogy in this thought process to 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 the charities the defer and forget you know mentality but

what we're seeing is that all these maturities are not clustered around this huge wall of maturing debt so how much is due to mature what's the timeframe on this and is this in fact that they have reckoning is it tied into. what use you think could be the a dollar thing you know ron dave with destiny so also from 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 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 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 sold a one year problem last year and now it's a year later guess what we have to pay that off and we've got to roll back as we go forward so right now in japan over fifty percent of their g.d.p. is going to be maturing over this next year that all has to be financed by 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 and it has to be

a very smoothly by the markets and if it's not it will be able creditor glee 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 churning which is about twenty seven percent across all the advanced economies twenty seven percent cheap be we also have a whole bunch of bank that that's coming due we've got 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 they do they intend to punish savers no but they're looking at this whole suite of pains coming up we're saying listen if we have to sacrifice one or two of these things i guess it's going to be to savers because if we don't have to look witty to bond or we're best at it will not roll we'll have a gigantic funny actual accident i understand why they're doing that we would put out looking at just what comes after back so you save the system for another day to get to where you're 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 and paid for in the index the ending like our system wants as i explained in my book the system we have the money system needs to keep expanding. this is the fight the fed is under so you know and it should just pick a member of the e.c.b. it is facing the same issues china's looking at the same issues peers looking to see visions we're all here but i would say tomorrow as 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 gig is up it can bank 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 lawrence and we've only got to have my questions about that eon again soon thanks for being on the kaiser report thank you pleasurable moment all right and that's going to do it for this edition of the kaiser report with me max keiser and stacy

herbert are they my guest 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 nice guys are saying.

all.