military uniform and to present himself in a new incarnation as a total civilian according to their official story general petraeus has an option to come to the cia as of a military or as a civilian and allegedly the white house did not force him to resign and took out his image as a four star general and to downsize his figure on their way to his new job if the official story is to believe general patrols bend over back wards to appease the intelligence community and to make sure that he could blend easily have their language cafeteria we have his new peers and associates i find it hard to believe that former commander of u.s. forces in afghanistan well i'm cheerily decided to resign from the military i'm sure if he had an option he would never resign from active duty.

taking a look now at some other stories making headlines across the globe a ship carrying some six hundred people has sunk off mainland tanzania with more than half the passengers thought to be missing survivors say the ferry capsized in an area with strong currents near the coast of zanzibar people express anger of his ship had been allowed to leave port so heavily overloaded rescue efforts continue in the area. in libya one of four remaining colonel gadhafi strongholds bani walid is close to being captured by rebel forces despite fierce resistance from khadafi supporters was also continued fighting near the city of sirte three could off the loyalists reported killed one rebel fighter reported dead colonel gadhafi is latest all your messages claim he's still in libya despite reports of his family and some associates crossing the border into tunisia air meanwhile interpol has issued a red notices for the colonel's arrest and the rest of his son saif al islam.

syrian protesters say eleven people were killed in the latest round of anti-government rallies across the country friday thousands of demonstrators appealed for international help in the face of a bloody crackdown by security forces more than twenty two hundred people thought to have been killed since march in the uprising that's called for president bashar assad to step down. and its state of emergency has been declared in the u.s. states pennsylvania and new york after tarantula rains from tropical storm lee caused catastrophic floods some towns were submerged as a river burst its banks with water that's also feared to be toxic at least seven people have been killed and more than one hundred thousand had to be evacuated. 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 president gloria our finest asked people on the streets of new york what they think.

but there kate after the horrible man eleven terrorist attacks in the u.s. how is the world change this week let's talk about that there were this i won't say more dangerous but it's more like our tick saw things are predictable you don't know what what's going to happen next july fifth much influence i think so no. every day can can be the last and you think people around the world feel this way. but i think in europe. in america i think so i don't know you kind of more aware of a of a threat just more on the lookout do you think the people around the world still keep that until and 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 go nuts for war so no i don't think war is to make us feel safer if everyone lives his own business i think everything would be better if we had been here in new york. several places. the places we find this a lot of security so we understand all that. because he wasn't before but something we have to understand. with ego so we might be safer but we have to give up some things for that well i don't think it will be safe. because safer we pretend to be safe return to be safe that's right i mean during the spirit if you're somebody who wants to solve it was good so is there anything that anyone can do or is that just what's going to happen is going to happen i don't know people should. you know so they're trying to change her way of thinking way of prison not are people like

accepting that people can be different i'm not just sold some of my ways the right way i'm leadscrew over but this is not rights no matter what you think it's changed the bottom line is we can only hope the world continues to strive to be a safer place. and back with a recap of our top stories in a few moments stay with us. in

. the atlantic. just simply. missed some. sleep.

wealthy british scientists. sometimes the. market why not. find out what's really happening to the global economy with my stronger for a no holds barred look at the global financial headlines tune in to cause report on our. worldwide manhunt for him lasted for fifteen years. and one million euros war was promised for his counter. political move this murder for the west. also many members of the. general of the serbian army. hard limit.

on archie. one thirty pm in moscow he's here r.t. headlines russia city of jaroslav paying an emotional farewell to the victims of wednesday's plane crash tragedy claimed the lives of almost all of the local ice hockey team. the u.s. prepares to commemorate the september eleventh attacks with security beefed up against the possibility of a new attack the war on terror unleashed that they now fear by some to be a bigger threat to global security. hundreds of egyptians storm israel's embassy in cairo enraged by the deaths of five addiction border guards last month israel's ambassador on his family have been flown out of the country. kaiser report coming

up next stay with us here on our. max kaiser this is the kaiser report reporting of the global financial war raging in country after country let's bring in steve syrup or 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 out abandon 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 past the grand aid money is seeking safe harbor and they're moving to currencies that have the 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 norwegian krone and to some extent the australian dollar and maybe a little into the canadian dollar but those currency is too well 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 de facto 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 of 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 also temper six 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

nigeria nigeria oh yeah they're doing a deal also i lateral 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 that strategically we think it's inevitable that the world to recognize our m.p.'s to reserve currency . to know how long beach will take but china is the second largest economy in the world it's got. for a huge amount of reserves it's in a very strong financial position. it's a large economies and it's more in this in the same situation the united states was enough to the second world war when the large economies swear. by fiscal deficit position so we do think. it is

a wise 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 gold they have their minions all over the world sucking gold out of every little orifice of the global economy that they possibly can and 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 that 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. me and these are decisions one of the movements at all sales invoicing told us so we get paid into all this reserves so for example if the ministry of finance has no

objections we could request it also has to china paid for in r. and b. now that the chinese government has allowed r. and b. for such a moment 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 this point is while so what do you think will happen if the if nigeria starts trading in yuan well this is that while we've talked to economists like michael hudson or catherine austin fits they say what backs of dollars war and war of an 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 all going up relatively well and my theory there is that ninety percent of the dollar buying is done through high frequency trading algorithmic trading computer training and this is all done really through the shadow banking system and this is

why the u.s. death keeps pulling off balance sheets of the hundreds of trillions of dollars because they're out there supporting the dollar into all sorts timers they can support the dollar anymore and then you have an enron implosion like situation and hyperinflation overnight and people as paul. paul krugman of the new york times will be like who. well john 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 out 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 up there is that 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 and this is sobering fact that the prominence of central banks in this century has coincided with a general tendency towards more inflation 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 in 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 what an independent thinking fed would do there in the control of wall street and 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 a pig wearing lipstick you know the dollar is really the. there's a leper with the most fingers it's the prettiest horse at the glue factory and you know it is just being held up with sticks and scotch tape and lots of blows it's the suv is full score all kid 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 fan d.-o. paul donovan and larry hathaway and they 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 economy 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 a global trade to collapse u.b.s. is in the business of churning people's accounts on mercifully to make u.b.s. brokers and bankers and 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 the u.b.s.

or in these other bankers you're going to lose everything because they're there fraud they're complete nutter fraud and they've been shown to be fraudulent one thousand different ways to sunday and that's like going to change their business model is fraud all these banks same thing so speaking of varying cost 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 across 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. line 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 balance was 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 wealth in the u.k. the problem is then you see this all over the world victims are very reticent about talking about their experience in a ponzi scheme this is what police find often that they'll 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 oh police the stickum. but if they have their entire mortgage their fraud and 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 in 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 you but grow your economy by leveraging genuinely talented people who know how to rape and plunder u.k. . you can make a show on channel four rape and plunder in the city by rioting looters what could be better all right stay sober thanks so much thank you max don't go away much more coming your way stay right there. when you look for. in human

vision barrels. brains mushed. the term used to tack that became synonymous with pure evil. the senseless slaughter of almost three thousand people stunned the world. and it all seemed like a nightmare. ten years on. r.g.p. remembers the attacks and is not from our. look back at nine eleven on our key. i am ask asriel welcome back to the kaiser report this is the book you've got to get

it's called debt 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 that says 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. dead on the other hand is when you take a promise and turn it into money we take a promise i can be precisely quantified and because it can be turned into money turned into mathematics you can transfer it from one person to another and normally if i make a promise to someone else i can't act you know you can't sell my promise to a third party that's what makes debt 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 didn't come first at all in fact cash is really a late comer money actually originally took the form of credit and out ok. it's a money you use the term proportional value or i guess you could say barter there is a bit of a barter element there versus debt 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 in the scheme of economics correct in a sense although you can be careful of the term border because we're all taught that you know first once upon a time there was barber and then you get money and after that we get credit but actually that story is if anything backwards there's no example of an economy where people sat around and saying well tell you what i'll give you twenty chickens for

that cow actually you know people do each other favors you know we're in a real society about money the way anthropologists of his knees 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 somebody someone you know you own a favor the question is how do you go from the communities where everybody knows each other favors which is true of the weight communities are supposed to work is something where you say you know you will need twenty seven of these or thirty two of those and that does not seem. happen to border that seems to happen through legal systems through temple redistribution a million different ways but the story the economists tell 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 a beginning and hard money it commies 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 well 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 to asia. there's 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. fluctuating interest rates. compounded interest rates you know long before the invention of coins then around seven hundred sixty eighty you skep simultaneous invention of coinage in india in china and personal training now the maysan thing is that this isn't really an economic innovation the phoenicians for example or the free traders of antiquity didn't even use coins i'm 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 personally going to

carry off you know you kind of move to cash that some soldiers the last person you're going to want to extend credit to if you're selling things any theories of war empire and slavery you move cash money. for about a thousand years that was the case from the five hundred b.c. to five hundred eighty. was a period of giant empires and empires used cash to pay their soldiers when the empires go away in the middle ages so does the cash flow gets locked up in temples 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 you tally sticks are using in england then of course working 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 pew just wanted to use an arbitrary cut off date that's when nixon went off the gold standard in the dollar was definitively detached from gold so this is not a new thing for a tool money it's actually in a way reverting to the original form of money so how does the current era now so take us through walk us through what's happening now we are we're on it rich right now correct exactly and one of the things that i found most disturbing in research researching the book is that what we've been doing is going about things backwards if you look at the history of credit markets starting in mesopotamia there was always some system in place to protect others 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. the big problem is first of all how do you go completely out of hand and 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 who actually had the money they would end up having to sell off their lands or flocks eventually 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 in taney of kings was simply to. all debts are cancelled. believe course every seven to forty nine years there is cancellations now. usually silver debt which was commercial debt was left alone but consumer debt was wiped out on everybody to start over again in the middle ages they had a different tack they mostly had usury laws so lending money at interest was illegal also candidates help.