the headlines heroine take a lead is a picture in brussels on how to fund continuing beta system debts that make now gripping italy and spain further strains and you're on its last legs. the international media mogul and top politician come under huge public scrutiny raising doubts they'll be able to survive the fall out of the phone hacking scandal and the store public trust. of the last remaining u.n. indicted war crimes suspect or is awaiting extradition to the hague being captured

in serbia belgrade hopes the move will bring the country closer to you membership. the next x. kaiser explains the consequences of u.s. debt deadlock as he takes a scandal under the existing natural headlines because a report is out next. kaiser stacy herbert this is the kaiser report you know i did are the currency of any revolution if you're ever max ideas are in our headlines today the first one could the cindy sherman of monkeys accidently revolutionize copyright law for artists so cindy sherman is the famous artist who takes self portraits and if

you look at this image that's not cindy sherman that is a monkey from indonesia and he took a camera from a nature photographer visiting indonesia and took self portraits of himself now this has become a big copyright issue because copyright in for toggery free always belongs to whatever took the photo who actually snapped the button not to the person who owns the camera or whatever so the man who took this photo david slater was working for caters news agency and now caters news agency is sending out cease and desist orders to people like tech dirt dot com who posted the photo and tech thirty saying well you don't own the copyright and the agency wrote back to them as they will neither do you so you can't post it all copyright law even in its current absurd iteration we've talked about it before it's effectively a global me this perpetual copyright as lawrence lessig calls it doesn't

extend to the animal kingdom now the monkey took a photo of himself and if anyone of the copyright it would be the monkey. for this monkey. using his psychic abilities. to contact an attorney immediately and to sue caters perhaps monkey wants people to know about his ideas and his plight in indonesia as the reinforcer being shot down well that's right the the wilds of the ideas are what engender creativity and have driven human creativity and evolution for millennia and the fact that copyright law intellectual property laws are chopping down the end of the landscape for ideas just like there are clear cutting forests where this monkey poor monkeys living their clear cutting ideas using copyright law from ugly monopolists and moguls

like the root of former head of news corps rupert murdoch now this agency caters news agency isn't claiming to own the copyright that idea has infected their mind that we can shut down ideas and we can't keep people from communicating ideas they're trying to keep tech dirt from communicating ideas but let's look at where so far an idea has not been copyrighted and it's allowed to spread and that's from tahrir square hash tag occupy wall street a shift in revolutionary tactic so this is from adbusters in on september seventeenth two thousand and eleven there encouraging at least twenty thousand people to show up on wall street occupy wall street and don't leave just like that the people in tahrir square didn't leave and told their demand that mubarak step down with matt the americans are saying don't leave until obama forms

a presidential commission to investigate whether or not there's been financial fraud right what we've been talking about the global insurrection against banker occupation for months and months on this show and we've been trying to encourage as much of this pushback against banker occupation whether it's in cairo or tunis or madison wisconsin now. it's coming to new york and they're starting to embrace this idea of a tent city and the public to push back against banks but as you're pointing out there their demands are quite vague and obtuse exactly but they're also focusing just on the tactic of terror square was not about these people meeting and demanding that mubarak leave it was more than that was the idea that they no longer needed to live in fear of mubarak's secret police of which were five hundred thousand torturers it was the idea of the fear they got over there's no sense here that this is an idea you know martin luther king jr mort's with

a million people in washington d.c. with a dream not with a demand that people know that congress needs and determine whether or not there was racism in society it was a bigger idea where they had overcome their. acceptance that they were second class citizens now you don't see anything like this here well first of all they have to recognize that there's a war going on but the war of banks turns against the people so they need to start the war they need a new start the war campaign and number two they need to target the right institution the institution the target in new york city would be the new york federal reserve bank and they should seek it also they need objective the objective would be regime change so occupy tent city in front of the new york federal reserve bank in seoul the current administration leaves in you get somebody in there who's not let's say like a great remember tim geithner put it was it eight billion dollars of new york fed

cast american dollars onto a plane airlifted to iraq and it promptly disappeared oh and by the way eric aying of where erik prince of blackwater just happens to be now living the dog the big life there in the middle east i wonder where that money went well you're more likely to get the same exact sort of paradigm that played out in tahrir square which is remember what mubarak said at first first he met the people in a televised address saying well make a few little changes that was basically i'll have a commission to investigate whether or not there's been any fraud or corruption or torture and then he said there will be chaos if i step down this is a classic technique that the new york fed the u.s. fed the base for occupiers always claim there will be chaos if we leave the scene they did in two thousand and eight then mostly with hank paulson in front of congress and they've done it every few months since the debt ceiling another example in the middle of one right now you know there'll be chaos they'll be

careful to give us more of your money and let us run roughshod over the political system and steal everything that's going to be chaos let's look at how an idea can actually genuinely create revolution where you can change the system and not return to business as usual five hundred dollars. silver if you want it now many look at that and they think oh it's about the price it's about making money off of silver making fiacha currency dollars issued by the new york fed and it's more than that it's a revolutionary idea because many people instinctively also say why would max want five hundred dollars silver because he know what the world would look like in five hundred dollars silver world no there's a number of really good points there in other words first of all the five hundred dollars silver can be obtained if people want it because the silver market is so tiny that if millions of people around the world that are getting victimized by banks for corruption they simply bought one or two ounces of silver there's very little of it around the price would go to five hundred dollars your silver would be

worth a lot more but more importantly the bankers would be put out of business that's the point number one point number two what would a world of five hundred dollars over mean it would mean that the peasants in america and around the world were being disenfranchised and haven't seen wage growth in decades and are being treated like by obama would suddenly a lot of money in which to restart the country and seek regime change and start a new republic you know that in france they're on their fifth republic america they need to get on to their second republic they need to rewrite the constitution iron out some of the flaws and loopholes return to some of the ideas that were there originally go back to gold and silver as it says in the constitution yet but the other important ingredient in a sea of other important idea to this five hundred dollars silver is crash j.p. morgan by silver by silver crash j.p. morgan j.p. morgan is the single most powerful element of the u.s.

federal reserve system it is the new york fed and jim rogers has pointed this out several times indirectly over the last few weeks he is asked over and over are you shorting french banks are you shorting german banks are you shorting banks here. says no there is one bank alone one major bank i am shorting while call it buying silver by the way i'm shorting one bank and the reason he's shorting out bank is it alone of all of the major banks in the world is still at its all time high that tells you where the power is still standing j.p. morgan they just recorded their quarterly numbers they came in with their earnings i think they were a little above expectations here we were way above expectation because all of their liabilities on the balance sheet of the federal reserve bank in washington j.p. morgan doesn't any of its own liabilities it runs up liabilities and then it gives them to the people of america the citizens to deal with they keep the profits this

said all of the liabilities oh does this sound like enron with their special purpose and to count seven hundred of them they just part of their lives bill of these off the radar of any regulators and they claim oh earnings are going up every quarter yes it is is j.p. morgan the new enron yes it is will lose one hundred fifty six billion in capitalization yes it will is that a good thing of course it is you don't want financial terrorism the system terrorism is bad so again this idea of to rear square how the arab spring has spread around the world and in each place it spreads and this is the thing about a free culture and free copyright is ideas are allowed to germinate and take their own form wherever it goes tell of eve tent city erected in protest against high house prices so israelis are taking to the streets there kids setting up tent cities and they don't want to back down to hype house prices decrease now of course netanyahu came out with the old paradigm and essentially it's all about war and

land grabs because he's saying health of the problem is not about inflation it's not about money printing white house prices are so high or around the world it's about the fact that there are too many regulations against building houses which is not something you really think of when you think of. israel you know my reading of the old testament is that you become what you fear so here you have netanyahu is running a ghetto and palestine all simultaneously opened the doors for ghettos to appear inside tell of even inside israel it's the supreme form of hubris well aside from religion this is a but the very basic fact is this is an idea that you do not need to be fearful you do not need to fear your government you are your government we are the people and these people in israel despite all that religious do that goes on and you know religious hatred that the warmongers try to spread these people are saying they are inspired by what happened to entire career that you can't we can take back control

ideas are the ultimate weapon of choice for revolutionaries and i guess what you're saying here and take away from the states to herbert is a five hundred dollars so if you want to be whether it's mubarak or murdoch if you take away the facade of their power which is based on fear then the people win and the dictator goes away exactly max well thank you so much stacy herbert for being on the kaiser report thank you and thank you don't go away much more coming your way right there.

what a bag of the kaiser court imax keyser time now to go to london and speak with sandeep jaitley an expert on the austrian school of economics and a fund manager at first international group sandeep welcome back to the kaiser report crimes marks all right sandeep jaitley when we had you on the show a few months ago you described the austrian school of economics as being based on karl mongers idea that quote value does not exist outside of human consciousness

so elaborate on this a little bit with some examples that we see around us today a lot of people think that this means that somehow austrian economics isn't grounded in grounded in reality you know if you say a statement like value doesn't exist outside of your own consciousness and employees that you're sort of making up everything in your mind well this isn't this is a war calming actually meant what he meant was that sort of the utility is up to you and it's subjective you know. don so what he meant by that statement. every human being is put on. their restrictions or their surroundings you know so obviously it was meant in that context ok now when i was putting forth his ideas he was breaking from a dominant school at

a time i guess you could call it a neo classical school so how does the our how did he break from the school also what were the main tenants that said this is in fact a new school and how does it how does it achieve that break you must remember that they were they were near classical at the time i think they were sort of before from economics at the time. classical near classical models just as human that there is something inherent about the object itself rather than rather than the sort of the qualities being ascribed to it by the human in question and the collection of humans in question now. we get about as a principle sort of or you don't you know let me come in for a second so in other words the organizing principle around which economics as a basis you can take two approaches one is to believe that objects have an inherent value and that you're going to constrain the economy around that inherent value or

be you're going to construct a school of economics that says that all value is subjective and that you're going to organize your principles around the rather subjective qualities of the perception of these objects and so therefore of course economics is known for having a hard rules and based somewhat in mathematics as you were just referring to so the rules of the subject simply can then subjectivity be create can they can be codified now i i know. carmaker's there you also have the emergence of freud who tried to codified the oncologist of us of car just are these two things related in any way first of all yeah well you can codify it mike so i mean i i wouldn't want to deny that math is very useful in economics you know but the way that math is used in neoclassical economics it would be like using you know vedic sanskrit to

translate train timetables you know i mean people are more impressed with the math in the classical economics than the actual underlying thing of what it's saying and you can codify a subject of economics but you have to realise the limitations of the math that you can use you know so for example very simply you can't use. continuous methods in mathematics you know the thought process in economics is is is is discrete you know there's only an ordinal make sure the way you can describe things you know there is one use for water and then there is another use there isn't one and a half uses in between so that automatically restricts the kind of math that you can use. but it's still math that can be used nevertheless so so in making those economics you could you'd be using things more like discrete mathematics topology set theory that kind of thing rather than sort of

statistical mathematics which assumes that sort of interaction is in a certain linear way you know which it isn't let me ask about the year nine hundred seventy one and that year of course next time cause the gold went out and the world embarked on an experiment of getting completely away from any relation to a gold standard and one embarked on a path of the out money currencies there were all trading against each other in a way that you could describe is purely subjective and here we are. forty years later and that experiment has clearly failed and people are once again talking about going back to the gold standard presumably because with gold there is some relation agreed upon intrinsic value how do we get all the way back to out of the subject of all the fear of currencies i would have thought that could have worked if everything is subjective rise it felt very back to gold is gold the property

ever live under the austrian school gold is favored as a measure of currency yes yes that is true no it's very true you know i mean what is important sort of with the gold standard is that. you know gold as well doesn't have any intrinsic value per se. so what you have to do is you have to look at how have people organized this substance throughout the millennia you know they've known this substance and they've accumulated so marked go relative to how much is produced annually the people still want it for some reason and normally if you produce a substance you don't keep producing it well in excess of the sort of the use that it can come on you know you don't go around building up huge stockpiles of copper you know copper is only produced on a on an as needed basis but gold is different for some reason observing it from

outer space human beings like gold you know they've accumulated so much of it that you know there's one hundred years plus worth of production just sitting around the ready yet still they want more of it you know so it's like it's almost been de grace in the mind the human mind psychologically you know there is so much of it you know yet still the ones that you know i'm not there to question why that is that something that. humanity has decided obviously i'm a cause of humanity as well. i'm not going to go against it you know so that's the only way you can look at it all right sanjay this of course is on everyone's mind because recently in congress ron paul. rand bernanke you people leave gold is nonie bernanke you responded no gold is not money so this opens up obviously a lot of different points what are your thoughts about that at this point dr

bernanke is just plain wrong you know the people decide to go been so level with money many many thousands of years ago and no government can use that viewpoint ok let me come in for a second because in other words you're saying that the collective consciousness or the collective own consciousness can dictate the perception to the degree of validating what the subjective reality to be becoming the object of reality and ben bernanke he has created a charade for many decades convincing people but fear out money is real and that fear money needs trust and he's in a wall unable to understand that if the market that is the say the people decide that now gold is money and free our paper is worthless but that's going to be the new reality so it's see kids how is he constrict it is he constricted

philosophically is he constructed intellectually is he constricted politically what is ben bernanke these problems. are imagine that there's a lot of them and of sort of politics involved in this mix you know i mean. if you look at the way for example the bank of england was founded you know. they they had to come up with an arrangement to lend money to the government in order to do their bread and butter business of discounting bills of exchange you know. so the notes that the bank of england created was sort of part company laws boy good bills of trade and they were paul's capitalized boy government that. now. sort of fast forward three hundred years you can go around and say the. only goal is money or or something else. something else apart from what you're using for money is money you know because you're sort of going against that principle which

is a wrong principle you know no one should stop it's their business to get into cahoots with the government in order to do something else but you have to look at it from that perspective ok what about greece portugal ireland what are they doing this crisis well sort of i think that everybody is starting to realize that there might be a problem in the euro zone. and this is true but there is no sort of recognition about what the what the what the solution of the form of the solutions will be so you have to look back in history and see what kind of monetary shenanigans going on in europe sort of over the centuries and effectively it comes down to disenfranchising the creditor so every form of monetary in the basement where you sort of see use the amount of precious metal in the corner or you increase the amount of units a piece of metal will get you it's a form of this in front choice means of the creditor so i imagine something along

similar lines will be pursued in europe you know you you haven't how to monetize ations scheme in a similar vein to the british and the the americans so what's likely to happen is you're probably going to have a secondary euro zone fund created which will have three trillion euros worth of unfunded capacity to start buying up that on the open market. we would probably extinguish all of these issues to do with the quiddity insolvency at the same time. and then you know you will achieve two things you. will reduce the purchasing power of the euro dramatically which i think a lot of a lot of countries in the euro zone want. and you eliminate all forms of question marks and solvency you are rolling so that when it comes time to roll

old bones into newborns you know you can come up with some kind of nebby for this phone for all countries that sort of have the bones purchased. i let me let me because there's another words here up bringing in let's say a euro bond which covers all european countries we don't really have that now gives the european central bank the ability to monetize as you say or quantitative easing as we know that for a term in the the u.k. or the u.s. and to destroy purchasing power by creating more fee out money and i guess this is what all the first telling us is that nobody or any of these countries is wanting to impose any kind of strict regulations that would keep the up terrorist bankers at bay they simply want to throw them the keys to the castle and let them print as much money as they possibly can finally on the u.s. dollar it's funny because it seems that you've got a very interesting arbitrage here because they're ninety five percent of the world's population they are not american and seem to understand that the dollar is

on its last legs of about the collapse but that bubble inside america that five percent of the world's population seems like completely impervious to this yes they are and you know before media generally is quite america centric if you think the dollar is going to be bad you ain't seen nothing till you see what the euro is going to do you know. that's where i sort of bounce my my view on the euro and it's going to take a lot that's against the dollar and that's where we have a slight difference of opinion because of course within this there's something called germany which you don't have anything like that in the in the dollar all right well sandeep jaitley thanks so much for being again on the kaiser report thanks max all right that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i will thank my guests sandy jaitley if you want to send me an e-mail please do so at kaiser report r t t v dot ru until next time this is max has a say. in

india all she's afraid of being a movie goer.