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the official g.o.p. cation. i pod touch from the. video. feed. dot com. guys are this is the kaiser report chock full of the new cults say tenet cults dolls sprig of dolls they see her probably more than the cult of america is in the news and many of our headlines here max i am a bomb shell age of america and the international monetary fund has just dropped

the bombshell and nobody noticed that's the important lie in there from gauchos market watch no. eddie noticed because of course nobody in a cult ever knows that they're deranged it's only outsiders that it's obvious to you for years before that's right whether in scientology or whether you're along the dollar you're in an insidious cult a snow globe of denial and your world is crashing the part of you well the i.m.f. is set like hell but thirty date they set an actual date for that 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 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 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 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 the dow jones as we've talked about on this show is driven by robots. 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 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 in it still are it 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 all 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 a 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 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 last three and they're going to die as a result now that's less than five percent of the one population is twenty five percent of the world's garbage so the rest of the world will 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 the subprime mortgage this is them committing suicide it's the equivalent of drinking cyanide laced kool-aid it's financial suicide as we talk about financialization of the economy has turned into this hybrid reality with that combines political malfeasance with financial larceny and that's become a nation between obama's white house and wall street merging together into something even more insidious than fascism it's a club to stop. them 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 sub prime mortgage taking population is the headline c m b c video let's go close the foreclosed home because the pictures the life i already have or 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 now 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 bandon homes foreclosed homes or or even built homes by the homeowner. is that you know all the pictures in the wife or whatever even 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 the milk and other cultural products were destroyed that it worked and no 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 howells'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 of what is 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 some 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 board joeys and paul really have said he's a classic part of a cult joeys opposed to squeaky fromme up the paper buckle every time super goes i rewrite the headline this is gonna be a total this is going to be a. dollar to no bull joe and your freakin 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 herds 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 we came out this idea of decoupling that china is

going to let the one the r. and b. appreciate those 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 billet easy 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 and we can talk about it in more detail but the guy is a fricken oracle ok i don't care what anybody says he's knows what's going on and then here's another headline from x.y.z. dot com and i pick your headlines because you always take the quote that is so important and relevant and you make a. program i have two dollars so you 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

u.s. dollar while 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 now you've had an attempt to create a hard money global currency standard and it's facilitating this in a number of ways and spreading information it's spreading the ease with which people can buy in. sure gold easily spot prize puzzle couple percent of points and this is what people are doing it as they do it the crowd out the paper money the three out money the keynesianism that's going to play since world war two that's been a huge failure there's nothing paul krugman is a huge flapping non-sensical. bag over there at the new york times it 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 and not looking at it that we're in a new paradigm shift and that brings me to this crime i have i'm coming back to the i.m.f. thanks 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 laden got 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 them getting 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 some word 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 i think most debts are all over this year and in terms of national sovereign debt japan and the u.s.

have the most amount now it looks like plenty more are 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've been talking to chris martenson fascinating guys and stay right there. stay.

out of the earth. but a back to the kaiser report time now to go to massachusetts talk 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 time line is eminent 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 shifted a whole lot of. debt from the private side to the public side it happened all over

the world and now on top of this we're going to squeak a rather startling drop off in g.d.p. in the world's third largest economy with under one after effects we're going to go on room and we're one of the things i'm predicting it's not just the products not just the items we have to remove 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 me to the end of that note going straight to q e three and i think i see a very large liquidity problem coming up to a theater near you soon now i want to stay on this for a little bit here chris martin because it work ascribing a situation where normally people would be penalized if their businesses or they borrowed money imprudently and it turned passed 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 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 capitalist 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 what 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 are subsidizing more people 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 who want to fork. over warded essentially on the backs of seniors but let me ask you a question concerning another big part of the economy that we used to rely on and that these are the so-called bond vigilantes and 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 question is what happened to the vile vigilantes and is it true that the gold and silver vigilantes have stepped into the breach and really there's a new sheriff in town and what happened with bond vigilantes we show you my

speculation is that they're actually fully in swing or in action when it comes to portugal when it comes to ireland when it comes to greece and we're seeing bondage really is in full swing mirror with the united states i think probably the person who could be described as maybe the largest vigilante the person who's best position holding what we're just a man of. oh and goes to and through its hands up and said listen we're walking away from treasuries we don't really know the crazed at this point in time and the market barely blinked at all the minutes because the fed is the largest purchaser and now the largest holder of treasuries in the world i mean don't point with it is the original motto but if you can't point the period on the floor of the fed's home turf what do you do well you go to gold and silver so absolutely greed and 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 itself the concept of money itself is now at risk and the fed is going to be repaid risqué here and there they're conducting an experiment on just one cap everything works

out now 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 then inflation 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's determining whether you've got inflation or deflation he looks at these tips the treasury inflation protected 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 want to gas prices he doesn't want to food prices he doesn't look at any of the things that people are experiencing every single day in terms of inflation the only at this one indicator and as we've just described with the absence of the body vigilantes 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 bottle who's just spewing pure garbage because of peer peer characterization so that is buying through there so much tips on a daily basis weekly basis we see the troops come across with this all the time. and so how can you on the one hand buy these things and you know obviously when you're buying something creating buying pressure you're pushing the price up and the yield down 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 at the highest order it's just nonsense when he puts it out there and people got their heads and go oh well i mean that's what he said it looks like he's got his eye on the ball but meantime if you look at commodity inflation this isn't like just started happening since january you can put a commodity chart up o.b.b. continuous commodity index one of my faves two thousand and two we've been on now pretty much a ten year old in commodities all things to go buddy low interest free money punish

the saber policies of the period and it's now got to the point where it's just silly for the fed to say we're worried about deflation or disinflation given all the things that we need all the things that can be exploited easily the prices for all of those are going up very strongly so it's they're risking the most important thing in the fed's tool box which is their credibility now the guys in handling of their own flatulence and saying oh that's pretty good. you were recently interviewed by x. all merch are you in of or 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 the center view was 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 clonal rampant market manipulation in the market places it's all tied to the dollar so a lot of people waiting for now is the dollar is getting close to its all time low

but hasn't kept until it's all time low what what's happened happened now in the near future eventually you know when we get out by 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 the fed doesn't stop just. the money in 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 worse reserve currency for 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 in 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 people out there would be able ones who really control the movement of things in their spiro thinking as long as the music's playing i got a dance right so 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 but somewhere between here and there 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. it will just you know some markets work the pressure spill build build and follow the release just like a bolt going giving and so there's thirst definitely pressures on this right you know i see the dollar is 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 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 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 not clustered around this huge wall. maturing that 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 thing you know ron davis with destiny so also governments they have two things they have to worry about the new debt issuance that they have to put out there so they float use things and in 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 that past 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 your later just what we have to pay that off and we want to roll that as we go forward so right now in japan over fifty percent of your

g.d.p. is going to be maturing over this next year that all has to be financed for the united states it's about twenty eight percent of g.d.p. these room norma's numbers all of that has to be rolled over and it has to be able by the markets and if it's not it will be able brother lee and betts you know what you're raising is a really serious issue because we have not just the sovereign debt that's all we're turning which is about twenty seven percent across all the advanced economies twenty seven percent cheapie we also have a whole bunch of paint 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 it are they do they intend to plunder savers no but they're looking at this whole suite of things coming up we're saying listen if we have to sacrifice one of two of these things i guess it's going to be the savior because if we don't have a liquidity to put on all this debt it will not roll we'll have a gigantic funny until 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 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 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. what your sister wants to say explain away put the system we have the money system needs to keep expanding this is the fight the fed is going to get i should just pick on them i think you c.b.s. is facing the same issues china's looking at the same issues here's what you see the issues we're all here but i would say to morrow that's right we're in the middle of it right now right it has to keep expanding just like made up to keep expanding and run at it keep expanding this is an enormous ponzi scheme and as you point out once the gig is up it can get 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 press markets and we

only got through half my questions will have to add a on again soon thanks for being on the kaiser report if you pleasures going on all right not going to do it for this edition of the kaiser report with me max kaiser and stacy herbert all right i guess chris martenson if you want to send me an email place this is the report at r t t v that are you and the next time this is nice guys are saying i fell. ill. marvin here broadcasting live from washington d.c. coming up today on the big picture.

today violence is one sick. and flared up. these are the images the world has been seeing from the streets of canada. for a show the day. the sun.