larry. that was national polygamy advocate mark hank a lot of course we saw today the most famous we're going to in our time warren jeffs convicted his case of course having to do with the fact that at least one of his wives was twelve years old and so much for watching we're out of time christine for. a charmer of in here broadcasting live from washington d.c. coming up today on the big picture.

the little. used today was once again put up. these are the images go girl has been seeing from the streets of canada. all corporations are. this is the kaiser it for you can see from the scene behind me that i am in new york city not far from me is the legendary madison square garden home of any heavyweight that's in the past and we're here in new york to witness another heavyweight bout the new york dollar versus the rest of the world should say the american dollar and so far that looks like the dollar in round fifteen of its post

world war two epic bout with the rest of the world is of. our own stay server down the newsroom talk to me hello max yes the dollar is in the news in fact it's in my very first headline here i am asked guard says u.s. dollar may lose privilege i mean a debt limit crisis so this is the new international monetary fund management managing director christine lagarde let's cut a clip here where she was interviewed on p.b.s. news hour and global economy is clearly highly dependent on the u.s. economy because the u.s. economy is the first in the world and it's a it's a major it's a major power in many respects so to have the lead economy. uncertain about. that is quite poor some and if you were to take it further clearly that would be it would be consequences in the rest

of the world not just in the united states for example. the dollar has always enjoyed what she's called the former french president many years ago called the exorbitant privilege of the dollar because it was the currency the reserve currency the new central banks hunt well clearly there was a dent in this exorbitant privilege and the confidence that people have towards the gold and it would probably entail a decline of the dollar relative to other currencies and probably don't stay in the mind of those people who reserve currencies us to whether it's a dollars effectively. and prime currency offers or yes they see exorbitant privilege which is a nice way to say rent seeking by the u.s. dollar being the world's reserve currency the united states gets an extraordinary

play on the global economy and this is insulated americans from price hikes in food and energy in a way that ninety nine point nine percent of americans don't understand but they will understand because even though the u.s. is experiencing a recession a slowdown they haven't seen nothing yet because once the dollar truly collapses price of gas will quite drupal price of food will skyrocket and then are really going to see what the american economy is all about a third world pig dressed up with a lot of lipstick and phony accounting tricks well max credit in a way i think it's kind of like the oil curse having this exorbitant privilege of the u.s. dollar and that the government really doesn't need the population because they can just print money they truly can unlike any european country where in europe you

have to work for a living you actually have to produce wealth in order to maintain your standard of living or to increase your wealth you have to actually produce it in america they can just print it and therefore the population itself. it's is not needed yet let me emphasize the point that you're making because it's a point you have made before and it's an excellent point in the oil rich countries they do not need their population so they have band in them and you see that huge wealth and income gap in america because of this exorbitant privilege american policymakers do not need their population they don't need a middle class they just print money for wall street wall street speculates when they make a mistake they go to washington they print more money and of course washington to impose austerity measures which have been invisible to most americans because of this world reserve currency status the u.s. dollar enjoys which it is about to lose the rating on the us treasury bonds is on

the way down from aaa down to triple be down to wherever greece's debt rating is at the current moment and this whole bond. ponzi scheme that's been in force for decades is crumbling and christine legarde is absolutely correct of course it took over from about extras con who's got some troubles here in new york city maybe we'll get an interview with him later but let's go back to this exorbitant privilege because this is what valerie this thing said as she referred to but this was under the charles de gaulle administration recall and this is the first time that america really went bankrupt big time on the global stage because in one nine hundred sixty nine charles de gaulle asked for the three hundred million dollars worth of gold that the u.s. technically owed france due to the trade deficit and france sense the naval ship over here to new york to collect their gold and america had to give it to france

had to give the three hundred million dollars of gold shortly there after great and asked for their gold as well which was similarly about three hundred million dollars america went bankrupt basically they said no we closed the gold window we're not going to pay you what we owe you so this is this whole debt ceiling debacle has already happened before spectacularly america did go bust but charles de gaulle had warned that you know it was the coast bretton woods the bretton woods era when they established the u.s. dollar as a reserve currency he complained that it would be an exorbitant privilege and that america would run deficits to the i could see if they wouldn't really have to pay for any better i don't know i was nixon forced to close the gold window at that time eight hundred seventy one to pay for the vietnam war and why is america bankrupt today to pay for wars of convenience war profiteering in iraq and afghanistan and all of fake wars that the u.s. is engaged with using real american dollars it's interesting because as the new

york fed it is of course where francis gold was kept it's also where a lot of european gold is kept including germany six. percent of germany's gold is held in the new york fed in new york do you think germany will send a warship down two hundred new york harbor and demand its gold back stacey max germany has zero chance of getting back their gold as jim rickards says i think i think it's you could safely include it in the us reserves whatever those might be well another country that is experiencing the heebie jeebies a little bit nervousness there is china tell us what's on china's mind roche says chinese officials appalled by him passed on raising the debt ceiling so this is something that you and i have talked about is the banana republic and ization of america that's the thing that is concerning china it's not that the debt ceiling was always going to be raised that's that's never really going to be an issue because at the end of the day has to be raised because it's or it's just paying for

what congress has already ordered this is spending that congress has already spent they're the ones that were ordered the administration to spend this money and that was the debt ceiling but they're concerned about according to stephen roach who's in non-executive chairman of morgan stanley asia he cited an unnamed chinese policymaker as saying in a july that we understand politics but your government's continued recklessness is astonishing well yeah absolutely what we have in the washington d.c. is a repeating asian of the two thousand and eight election there are a lot of folks at home watching ten that would like to undo all barack obama's election as president and they're doing so by forcing this debt ceiling issue as a referendum on his presidency this is a new piece meant a virtual impeachment and they're going to basically put a gun to the economy said the same way that hank paulson put a gun to congress and said back in two thousand and eight and extract it extorted

three quarters of a trillion dollars per spanking buddies' now boehner and his group of politicians his friends in washington are putting a gun to a bomb. and say either you abandon your president say you give us all the power or we're taking this economy down it's what we've been calling in the show financial terrorism is the most pernicious and ugliest form of terrorism in the world and i'll kind of look like mother teresa in terms of scope damage and the destruction of human life and boehner is kind of like a terrorist with a suntan suntan terrorist financial terrorist from washington but it's also part of every banana republican ization and we've talked about this a number of times as this often happens like in the egyptian economy where how egypt fell apart how will bark left office is because they were turf wars between the berries monopolies over sectors of the economy so when you have these very powerful oligarchies this is always what happens at the end of

a banana republican icon a me is. you know there are powerful interests each for each party they take the red team or blue team yes it's a winner take all mentality by the corrupt ideology of that communist strumpet i know random who's enjoying some popularity again in america and her philosophy of take everything kill everybody and don't have a conscience about it let's move on to the next i buy my so while the boehner and obama are filling while rome burns literally let's look at what how rome is burning recession took bigger bite than estimated so the two thousand and seven to two thousand and nine recession. the world's largest economy more deeply than previously estimated gross domestic product shrank five point one percent from the fourth quarter of two thousand and seven to the second quarter of two thousand and

nine compared with the previously reported four point one percent drop now this is from the commerce department but the most important thing that they say here is that companies fared better and workers worse over the past three years than previously thought before tax corporate profits adjusted for the value of inventories and capital depreciation were revised up by two hundred sixty four point nine billion over the period led by improved earnings at financial institutions not so from two thousand and seven to two thousand and nine the commerce department is saying that their corporate profits at banks actually went up this wrong corporations rely more and more on their dealings with last free and their dealings in derivatives which are extraordinarily profitable and when you get the government to give these corporations trillions now we know that they gave away thirteen trillion dollars to american banks and foreign banks it's not hard to make money money even a recent snooki could make a billion dollars if you give

a billion dollars in free coupons and if they make a mistake you can. a billion dollars just some president make more money meanwhile the jobless rate has continued to go higher and the wages have continued to deteriorate anyone who's actually working for a living would never say that there's been anything like a recovery from the crash of two thousand and eight and now they're saying you know what there really wasn't worse press than we were saying and by the way going forward it's going to be worse than we could ever imagine so again it's up to the people on the social contract is broken to results you know i think people would be surprised at this these statistics that came out from the commerce department they were released of course during the kabuki theater of the debt ceiling. so most people didn't see this but the fact is that everybody every american will know that the crisis is a banking crisis so you would think during a banking crisis that their profits would go down but in fact they went up and they performed better during this crisis than any american who is now being asked to pay

for this but also being asked to pay through the exorbitant privilege that they are about to lose and they just have no idea what is going to happen once they lose the exorbitant privilege of the u.s. dollar is the reserve currency yet and once again barack obama when he came into office because he did throw geithner out larry summers ben bernanke he's paying the price for allowing the financial terrorist to run his campaign and run this country that he's being marginalized the i.m.f. is running the show barack obama has become a non entity all right stay server from the newsroom thanks so much for being on the kaiser report thank you max don't go away much more coming your way stay right there.

the official keep the case of your money so the people touch from the point you. saps to. see life on the go live. video on demand exceeds mine gold costs and r.s.s. feeds now in the palm of your listing on the. lead mission and free liquid intake should be free in-store chargers free arrangement free slippery listeria prelim gold free blog chandler video for your media projects for free media and on the r.t. dot com.

live the leg. lifts lifts lifts . welcome back to the kaiser report i'm max kaiser here i am on the glorious a west side of manhattan here to witness firsthand the collapse of the american dollar the american empire the american belief system the american dream it's all crashing in real time right here on the west side of manhattan let's go down to the newsroom and check in once again stacy herbert and stacey hey max actually we you

were due to speak so i guess i'm saying hi i knew you were going to talk about the red back but perhaps china is not ready to take over the world because apparently their internet system actually isn't up to steam well that's an interesting point about stacy about china's rise to power is that they have done so on the back of a loser a project known as ghost cities so the government has engaged in shovel ready projects as barack obama might call them building skyscrapers in villages and towns and cities but nobody lives in the cities but it looks like they're generating g.d.p. growth meanwhile they're beholden to america through the relationship with the u.s. dollar and now the u.s. dollar is crashing this is setting the stage for a global conflict i heard somebody make the following comment not interesting interested in your thoughts about it they said that the posturing going on in

washington reminds them of what happened before world war one countries were intransigent they're taking their positions or digging their heels in and then suddenly a popped off it seems to me that this is what's happening right now stacey countries and politicians are taking these positions where they're not going to back down seeing how this thing is going to blow up at first and this is leading to potentially a global conflict in. financial war that would be a really defining moment for the twenty first century well at the time of the world free world war one of course that was the beginning of the collapse and that was that in the process of the u.k. collapsing and losing their empire so yes similarly were there and it's a collapse of the us empire and there's. really america lacks the imagination to stop it from happening so this is all the kabuki theater you're seeing going on is

one thing but on the other side of. aisle and the equation is whether or not china actually wants to step up and be a superpower. now this is one of the things we're going to talk to our guest daniel collins about he's written an article about the red back and how china is actually more and more trade is happening in china in asia in the u.s. so they're there they're all sorts of currency swaps happening so china is actually expanding the pool of central bank reserves of the u.s. that's right so the chinese are doing bilateral currency swaps with russia. and other countries so they've been moving out of the u.s. dollar as the world reserve currency status for a while it's like the old joke about the husband knowing the last one to know that his wife's been cheating on him the american people are the last months of the world to know that the rest of the world has been cheating on the us dollar they've abandoned the u.s. dollar years ago and only now is it becoming an issue in the us but it's been an

issue around the world ever since china became part of the world trade organization and you have this massive transfer of labor from the u.s. to china taking advantage of the so-called wage arbitrage thanks to bill clinton which gutted manufacturing in america and when they talk about this debt ceiling and the need to stimulate and the need to print more money as rick. having u.s. economy that would imply that there is some manufacturing base that is there to be revived but there is a manufacturing base there's only weapons of mass financial destruction created by banks on wall street and they keep going to matter what the economic conditions are because it's an economy brown not by the discipline of bold or the rule of law but by the willing the only means of a bunch of corrupt hedge fund managers who live not far from here and i will long island or soon by the their ocean front property concocting new ways to destroy

countries whether it's greece or dublin or america itself it's the noose that was used to hang these other countries it's now being used to hang the american economy and the american people are the last sin no the joke is on them speaking of this relationship with china many of our goods in america are made over there and therefore the actual american workers don't make much money because they have no jobs and i want to point out an interesting headline in the last few days here in america apple now holds more cash than us government so apple is now war cash rich then united states government figures from the u.s. treasury department show it figures released by the u.s. treasury department show the country of the united states currently has a total operating cash balance of seventy three point seven billion dollars this compares with apples seventy six point four billion of cash reserves which has

built up during a phenomenal half decade of strong sales of course most of their goods are well they're designed and innovated in in the united states but they're all manufactured in china just brings up a number of interesting point stacey first of all fifty percent of all that was manufacturing capacity could be in the united states so instead of having seventy or eighty billion in cash they might only have ten or twenty billion in. by law under the f.c.c. the company's not even allowed to have that much cash without paying a dividend so they're actually breaking the law on that front second of all this is actual cash apple's balance sheet it's not their money so call that's on the american government's balance sheet which is actually not hard cold cash it's a low grade debt which is still debt based which is not actual cash and the funny thing is that if apple were to transform itself to a bank like j.p. morgan they could leverage that eighty billion ten times over quite easily and be

an eight hundred billion dollars balanchine it would be almost a trillion dollar balance sheet on top of the company that's generating many hundreds of billions of dollars in sales but they keep the cash on their balance sheet not sure exactly what steve jobs strategy is there other than to weather some downturn but the hard cold bottom line fact is that if he brought those jobs back to america less cash you have more jobs in america and presumably more people in america able to buy apple products you know most of apple sells it outside of america because people in america can afford to buy apple products because steve jobs moved all the jobs overseas and speaking of apple having more money than the u.s. government on their books i think a good idea for america how they can get out of our debt situation and i keep their liquidity flowing to keep the government operating is has emerged from spain spanish banks fields we're not all go ask collateral so cristiana we're not told

are the most expensive footballer in history has joined the european central bank on a free transfer sources say the authorities want this help on the sovereign debt crisis by kicking the can further down the road so he's joking of course but what is it actually we're not although could feasibly become the e.c.b. property after he was pledged as collateral for emergency liquidity support by spain struggling savings bank. thank you because in two thousand and nine one of the spanish banks that has since become bankia language re all madrid seventy six point five million euros to pay the transfer fees for one although now because of the liquidity crisis it is worse the bank has put up a loan as collateral with the e.c.b. in return for a vital funding this football players the new god and economy worship's collateral is ation of human flesh in much the same way as we saw one

hundred fifty years ago in the slave trade you know the collateral of slaves drove the triangular trade hundred fifty years ago between the sugar producing states the plantations in america and other points on the map of the globe during the british empire as you mentioned previously the slavery is coming back as a viable business model for things that happen these people america when there are many jobs to be picking cotton and a new slave market white white white cotton pickin slaves down there in tennessee in the south of america we're naldo is rated triple a by moody's moody's at the moment is seeking to downgrade america we're talking about big time like forget about the slaves max they don't matter i'm talking about the big time game here and so moody's is rated or not although triple a which would judge the eighteen million pound rail madrid paid manchester united for ronaldo as safe as u.s. government debt so right now we're naldo is low on him is as safe as the us government debt which it could actually be safer very soon. says something about

how the economy has now gotten to the point where rating agencies are passing judgments on soccer players or football players are saying or but they're in able or unable to give a structural her teeth in any meaningful way for an entire country like spain it without actually glom ing onto a degrading situation piling on. and actually making situations much worse is this let me ask you this by giving on although it's a play rating and i offer him as collateral to buttress the spanish economy is this in fact a net positive for the bond markets around the world or is it just basically the rating agencies laughing at the banks and the people once again and giddy with their imperial power here is the the consolidation of wealth and power in the hands of a few we're emerging into a global role of darkie and

a global elite if apple has more money than the u.s. government we're not although could soon have a higher credit rating in the us government this is what we have and we have concentration of wealth and power these people are mightier than any government on her. i gotta start working on my football game obviously i mean i used to play ice hockey i used to come to the rangers game right here at madison square garden back in the seventy's i saw the boston bruins won the stanley cup in the seventy's i was right there in the bird and that was bob you're good for no those were the aaa credit bob your must be worth his weight in platinum golden crusted precious beyond belief and on one positive note because if the u.s. is downgraded and they have to pay more in stressed there is for to savers for the retiree they will be earning more on their treasury bills than they currently are because right now their retirees in america we've spoken to some spend here has

been decimated their incomes have collapsed by own most one hundred percent that's right the grandmothers and grandfathers in america are rooting for a collapse because they want the interest rates to go back to five or six percent before before this she hoddy bankers took over so they can once again have some kind of standard of living that's absolutely right the grandmas are out there rooting. for a collapse of the u.s. government market say server i think we've run out of time so thanks for being on this extended version thank you max i was a good stand in for chinese economists. actually and that's going to do it for this edition of the kaiser report with me max kaiser oh thank stacie herbert if you want to send me an email please do so as a report in r d t v are you until next time the next guys are saying buy our.

food.