didn't force him to resign and to cut his image as a four star general and to downsize he's figure on their way to his new job if the official story is to believe general petraeus and bend over back warrants to appease the intelligence community and to make sure that he could blend easily their language cafeteria we have his new peers and associates i find it hard to believe that the former commander of u.s. forces in afghanistan voluntarily decided to resign from the military i'm sure if he had an option he would never resign from active duty. take a look now at some other stories making headlines across the globe libya's rebels say they're close to capturing the town of bani walid one of the four remaining gadhafi strongholds his loyalists have been given till saturday to lay down their arms the fierce fighting keeping up near the city of syria three khadafi loyalists

have been killed one rebel fighter reported dead colonel gadhafi audio messages claim he hasn't fled libya despite reports his supporters have crossed the border in tunisia where meanwhile interpol has issued a red notice is for the colonel's arrest and that of his son saif al islam. syrian protesters say eleven people were killed in the latest anti-government rallies across the country friday thousands of demonstrators appealed for international help in the face of all bloody crackdown by armed forces more than twenty two hundred people are thought to have been killed since march in the uprising that's called for president bashar assad to step down. and a state of emergency has been declared in the u.s. states of new york and pennsylvania after torrential rains from tropical storm lead caused flooding some towns were submerged does the river berth their banks with water that's feared to be toxic flooded and at least seven people have been killed more than one hundred thousand had to be evacuated. finally in this news block in

the decade that followed the nine eleven attacks washington's campaigns in iraq and afghanistan were aimed at ridding the world of terror ten years later do people feel any safer a resident worry harshness as people on the streets of new york what they think. at the gate after the horrible nine eleven terrorist attacks in the us how is the world change this week let's talk about that there were. i won't say more dangerous but it's more like our tick so all things are predictable you know what what's going to happen next life is much intense i think so no. every day can can be the last and you think people around the world feel this way. i think in europe in america i think so i don't know you kind of more aware of the threat just more on the lookout do you think there are people around the

world still keep that vigilance ten years later probably not as much as we did five years ago do you think that the amount of lives lost in the name of the war on terror has been worth feeling safer i think it's a difficult thing that comment on to be honest i have a lot of friends that have fought over there and i would say it's hard every time they leave the nuts for the war so no i don't think war is to make us feel safer if everyone lives its own business i think everything would be better if we had been here in new york. places. like the places we find this a lot of security so we understand all that is sad because he wasn't before but something we have to understand. that we might be safer but we have to give up some things for that well i don't think it will be safe we try to make you safer we

pretend to be safe return to be safe that's right i mean sure it's a spirit if you somebody who wants to solve it it was good so is there anything that anyone can do or is it just what's going to happen it's going to happen i don't know people should be. trying to change her way of thinking way of proving not her people like accepting that people can be different i'm not just all it's me my way is the right way i'm but screw everybody this is not right no matter what you think it's changed the bottom line is we can only hope the world continues to strive to be it be fair play. it back and add lines in a few moments stay with us. it

will. all. be. well for british science. that's what i'd like to. market why not. find out what's really happening to the global economy with meit's cause or for a no holds barred look at the global financial headlines tune in to kaiser report on. the term wrist attack that became synonymous with pure evil.

the sun slow slaughter of almost three thousand people all stunned the world. and it all seemed like a nightmare. john years on. r.g.p. remembers the attacks on a softer mouth. a look back at nine eleven an arche. for. russia would be soon

much brighter if you knew about sun from finest impressionists. who threw stones on team don't succumb. to the worldwide manhunt for him. that's the griffins g. o one million new world was promised for his county. political murder for the west. general of the serbian. great.

nine thirty am in moscow these iraqi headlines russia's city of jaroslav paying its last respects to the victims of wednesday's plane crash tragedy claimed the lives of nearly the entire local ice hockey. the u.s. prepares to remember september eleventh a security beefed up to protect against a possible new attack the war on terror unleashed that day now feared by some to be possibly a bigger threat to global security. hundreds of gyptian storm israel's embassy in cairo enraged by the killing of five addiction border guards last month israeli ambassador and his family have been flown out of the country. up next to kaiser

report stay with us. guys are this is the kaiser report reporting of the global financial war that's raging in country after country let's bring in stuart max i think you're referring to the currency war that we've been warning about for years now first headline global currency war takes a dramatic twist now this is of course the currency war relating to the swiss franc when they've now are abandoned the floating exchange rate but in this article is an important quote from david bloom of h.s.b.c. that i want to refer to max gold is the only safe haven asset that will not do q e

putting capital controls or complain well stay you've got this global game of musical chairs or as i like to think of it pastor graham aid money is seeking safe harbor and they're moving to currencies that have a perception of being safe harbors like the swiss franc but now that's no longer a safe harbor so money is being driven into the no engine chrono and to some extent the australian dollar and maybe a little into the canadian dollar but those currencies too will collapse all three of currencies will collapse now all this is going on the various bodies that regulate oversee the trading of gold and silver keep raising the marginal cormorants they are in effect creating a de facto gold standard by trying to stop the creation of a defacto global gold standard but the reason why we were able to predict this is

because history always rhymes and. as we said this is the biggest financial catastrophe since the great depression and we know exactly what happened in the great depression is after a few years the market collapse there was of course global currency war that's right but during the currency war era of course the world still had a gold standard and then we're not on a gold standard so the currency war takes on a dimension of lunacy speaking of three ring circus and i want to bring your attention to nigeria deals the dollar another blow so this is happened the same day actually that the swiss. introduce this currency pegged to the euro so this didn't get much attention but on september sixth nigeria's central bank transferred a tenth of its thirty three billion dollars of foreign exchange holding into you want that's right all of the bilateral deals between russia iran china

gerry who nigeria oh yeah they're doing a deal on bilateral outside of the dollar and the dude responsible like this big banker he says we don't need no stinking dollars well let's turn to a clip here with reuters and where he explains why they've done strategically we think it's inevitable that the world to recognize r. and b. a series of currency it's you know how long beach will take the chinese the second largest economy in the world it's court. for a huge amount of reserves it's in very strong financial position. it's the large economies and it's more in this in the same situation the united states was in after the second world war when the large economies swear. by fiscal deficit position so we do think. it is

a rice move at this point in time will be the reserve currency but we've known this now for a few years and china is just playing a cat and mouse game with the dollar they are secretly hoarding gold we know this from wiki leaks cable recently that just came out they have been secretly hoarding all they have their minions all over the world sucking gold out of every little orifice of the global economy that possibly can they need another three or four or five thousand tons of gold yeah and again this is part of that trend which we've talked about it's just the currency volatility the financial volatility is we're seeing the collapse of the american empire but let's turn to this other. because this is very important. to. do this. time to research this isn't one of the movements all sales invoicing told the sun we get paid into all of this and that's how it goes to reserves so for example you feel the ministry of finance has no objections we could request it also goes to china

paid for in r. and b. now that the chinese government has allowed r. and b. for settlement for such transactions so max what do you think of this if it because this is always the this is the thing backing the us dollar the only thing back in the u.s. dollar at this point is the oil so what do you think will happen if if nigeria starts trading in yuan well this is that while we've talked to economists like michael hudson or catherine austin fitts they say we're back to the dollars war and war and oil are para pursue so to speak so yes as the warfare state of america collapses then that puts additional pressure downward pressure on the dollar it's holding up relatively well and my theory there is that ninety percent of the dollar buying is done through high frequency trading algorithmic trading computer trading in this is all done really through the shadow banking system and this is why the u.s. death keeps pulling off balance sheet to the hundreds of trillions of dollars

because they're out there supporting the dollar it's also time as they can support a dollar anymore and then you have an enron implosion like situation and hyperinflation overnight and people wall. up and paul krugman of the new york times will be like lou. well tom foley of reuters says that despite nigeria's bold move china's currency still has few of the qualities of a credible reserve currency and here are two of the qualities he says are necessary for a reserve currency one low inflation is usually a prerequisite yet china's runs at above six percent. i want to turn our attention to shadowstats inflation numbers and as you can see the red line is the official number so it's always well below six percent of course but the blue number out there is based on how the u.s. used to calculate consumer price inflation before in one nine hundred ninety when

then president clinton came in and manipulated it but as you see right before the financial collapse inflation in the u.s. was almost fifteen percent right so inflation in the u.s. is well above six percent so that argument doesn't hold water that's exactly correct and then he says stable monetary policy is another typical condition yet china lacks an independent central bank so you know again referring to that chart on the left hand side of the inflation in the u.s. you saw that inflation was fifteen percent in one nine hundred eighty until paul volcker raised interest rates to twenty percent crashing inflation back down to closer to two zero percent now this is what paul volcker says about what central banks add to stability of a monetary system it is a sobering fact that the prominence of central banks in this century has coincided with a general tendency towards mournfully ssion not less if the overriding objective is price stability we did better with in one thousand nine hundred gold standard and

passive central banks with currency boards or even with free banking the federal reserve bank and and the us is not independent by any stretch of the imagination and no independent body would independently suck up two point five trillion of toxic debts from wall street that's what an independent thinking fed would do there in the control of wall street so again the arguments against the chinese when being the world reserve currency don't hold water the u.s. dollar using those very metrics looks like a pig dressed up with a bunch of lipstick and pig wearing lipstick you know the dollar is really the. the leper with the most fingers it's the prettiest horses the glue factory you know is just being held up with sticks and scotch tape and lots of blows its load the souvenirs gold scott are all kids while gold is already skyrocketing but again

this is the global currency war we're moving on to another headline about another currency u.b.s. declares the euro should not exist and a monster report on the odds of an e.u. breakup this is u.b.s. is still fangio paul donovan and larry hathaway and they've released a report which they examined what would happen if the euro broke up so the consequences of a weak country left the euro zone so like italy or greece or portugal or spain they would it would result in their khana me of a up to fifty percent g.d.p. collapse in the first year but then they go on to say if germany left it would result in a twenty to twenty five percent collapse in their g.d.p. it would also cause the global trade to collapse u.b.s. is in the business of churning people's accounts on mercifully and make u.b.s. brokers and bankers money every day they come out with a news story and it's usually a contradiction of the previous day's story if you listen to u.b.s. turning these other bankers you're going to lose everything because there are there

are fraud they're completely other fraud and they've been shown to be fraudulent nineteen different ways to sunday and that's not going to change their business model is fraud all these banks same thing so speaking of varying costs for bailing out systems or bailing out people let's turn to the u.k. max because i have these two headlines here interesting contrast england riots to cost taxpayers at least one hundred thirty three million and policing in compensation so this is in the u.k. and the the rioting cost one hundred thirty three million pounds people are out in arms about this but if you contrast that to the head. blind u.k. financial bailout reaches one point four trillion pounds this is from april of two thousand and nine and the cost of the banking balances one point four trillion but contrast the response from the population in the u.k. to the one hundred thirty three million cost of the rioters compared to the banking

rioters well in the u.k. the problem is and you see this all over the world victims are very reticent of talking about their experience in a ponzi scheme this is what police find often a bell approach the victim of a ponzi scheme to tell them that they are a victim of a ponzi scheme and they always deny it they deny it so this u.k. person the subject of the crown i was going to say citizen for a second. you know they would be upset that a stick of gum was stolen and they'll call the police hopefully the stickum. but if they have their entire mortgage defrauded their house lost due to george osborne's friends in the city they're quite embarrassed and ashamed about it and they won't want to tell anyone or lose face with their neighbors and people the banks know this this is why they they know that they're not going to be prosecuted or caught by committing and u.b.s. and the others defrauding millions out of trillions and the other thing is that remember when all these rights were going on in the u.k.

the media was certain that they were all gang members well actual analysis of the people arrested in jail is less than twenty percent of them were gang members and yet contrast that again with the banking riots one hundred percent of them are proven to be part of a racket a global fraudulent debt racket that's why i say give these riders brokers licenses and grow your economy by leveraging genuinely talented people who know how to rape and plunder u k. we can do a good show on channel four rape and plunder in the city by rioting looters what could be better all right stacy ever thanks so much thank you max don't go away much more coming your way stay right there.

the worldwide manhunt for him lasted for fifteen years. one million euro award was promised for his country. political murder for the west. in. general of the serbian army. or. an arch. i am asked as are a welcome back to the kaiser report this is the book you've got to get it's called . the first five thousand years all right let's talk to the author david graber welcome to the kaiser report thanks great to be here all right david graber which

came first debt or money and how do you define the two well if you define money really broadly i suppose in a certain sense it's always been around as one of those things that you know wasn't really invented at all any more than say music or clothing is you know money is just a way of saying twelve of these are worth two of those it's a way of measuring proportional values i guess you could say get on the other hand is when you take a promise and turn it into money when you take a promise secondly precisely quantified and because it can be turned into money turned into mathematics you can transfer it from one person to another normally if i make a promise to someone else i can't actually you know you can't sell my promise to a third party that's what makes stepped so special it's impersonal it's detached from any actual human relations so in that sense money had to come first but the odd thing is that we're using the money as coins and that can come first of all in fact cash isn't really

a late comer money actually originally took the form of credit and debt ok. you're saying money you used the term proportional value or i guess you could say barter there is a bit of a barter element there versus that which is the beginning of what we now call derivatives it's a representation of something that you can buy and sell independent of any underlying value it has it's own separate kind of parallel universe if you will in the a in the scheme of economics correct in the sense although you've got to be careful with the term border because we're all taught that you know first once upon a time there was border and then you get money and after that we get credit but actually that story is if anything got courts there's no example of an economy where people sat around and say well tell you what i'll give you twenty chickens for that cow actually you know people do each other favorites you know we're in a real society about money the way anthropologist such as me is observed what

people do is they say you know wow that's a really nice pig and then you say oh no i'll give you the pig don't worry it's on me it's a present and then of course you owe somebody some. you know you will not pay for the question is how you go from the communities where everybody knows each other favors which is through the way communities are supposed to work is something we can say oh you know you will need zachary twenty seven of these thirty two of those and that does not seem to happen through borders that seems to happen through legal systems through temple redistribution a million different ways but the story the economist told us is clearly not it so for the past five thousand years we have moved back and forth between this virtual money or debt based system as we have today and or as we had at the beginning and hard money it counties like gold and silver so what's the difference between these two periods and how do they ebb and flow through history how do we make the transition from back and forth couple that's a really interesting thing and i didn't really anticipate it when i started my

research what i found out as least if you look at the history of everywhere from europe in asia. there is a kind of a shape to history an ebb and flow of credit money is the original form of money you already had expense accounts bar tabs fluctuating interest rates. compounded interest rates you know long before the invention of coins then around seven hundred six fifty a.d. you skep simultaneous invention of coinage in india in china and first of all in the train now the maison thing is that this isn't really an economic innovation the phoenicians for example or the great creators of antiquity didn't even use coins and told very late it was mostly to pay soldiers and actual cash makes sense if you think about it because if you have a bunch of marauding people stealing gold and silver of what's a person we're going to carry off you know you kind of move to cash that's i'm a soldier the last person you're going to want to extend credit to if you're selling things and periods of war empire and slavery you move to cash money.

for about a thousand years that was the case for maybe five hundred b.c. to five hundred eighty. two period try an empire that empires use cash to pay their soldiers when the empires go away in the middle ages so does the cash it all gets locked up in couples and people go back to credit systems again we're used to thinking oh they reverted to border no it's not true at all across from europe to china people are using complex credit systems which are denominated in money that no longer actually existed physically most of the time. so you have paper money you have checks tally sticks are using in england then of course fourteen ninety two you get all the gold and silver coming in the americas people move back to cash you actually have the reappearance of huge empires slavery that's the period we're moving out of now since one thousand nine hundred seventy one who just want to choose an arbitrary cut off date that's when nixon went off the gold standard the dollar was definitively detached from gold so this is not

a new thing virtual money it's actually in a way reverting to the original form of money so how does the current. here and now so take us through it walk us through what's happening now we are where we're at it rich right now correct exactly and one of the things that i found most disturbing when research researching the book is that what we've been doing is going about things backwards if you look at the history of credit money starting in mesopotamia there was always some system in place to protect debtors and it makes sense because if you have virtual money if money is just an iou it's a promise an arrangement between people not intrinsically different than in any other promise you might make well the problem is first of all how do you go completely out of hand in people to start making crazy promises they can't keep and to how do you make sure that essentially most people don't end up becoming literally or figuratively slaves to the people with the money. that was the great

social crisis of antiquity it was always the fear of a debt trap poor people would fall into hopeless debt to those people actually had the money they would end up having to sell off their lands or flocks eventual ie their wives and children themselves into slavery or debt peonage so that the response was normally to put in some kind of mechanism a failsafe om in taney of kings would simply declare a clean slate all debts are cancelled biblical to believe course every seven to forty nine years there is cancellations now. so usually silver debt which was commercial debt was left alone but consumer debt was by car on everybody to start over again and the middle ages had a different tactic they mostly had usury laws so lending money at interest was illegal also candidate self so there's always some kind of mechanism to protect others now what happens this time. the first thing they do they get rid of the usury laws.