he was just trying to convey the seriousness of the situation what he called the now desolate area around the fukushima nuclear power plant a quote out of jail his departure is a major embarrassment for prime minister yoshihiko noda who took office and installed a new cabinet just last week. fidel castro has appeared in an interview shot on various rail on state television to dispel rumors of his death the former cuban president joked that this was not the first time such reports that spread well baby five year old has been seen in public since the communist party summit in april he stepped down in july two thousand and six sounding power to his brother raul castro ruled cuba for nearly half a century becoming a revolutionary icon. well returning now to our coverage of the first of that eleven the vassals the worst act of terrorism on american soil and the spark that ignited the war against al qaeda but that's why the killing of osama bin laden the scores on the big apple remain as long as found as she spoke to people in new york

. a decade after the horrible nine eleven terrorist attacks on the u.s. how is the world change this week let's talk about that there were i would say more dangerous but it's more like power to solve things are predictable you don't know what what's going to happen next because life is much intense i think so no. every day 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 a threat just more on the lookout do you think that people are around the world still keep that insurance 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 common 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 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. we find this a lot of security we understand all that. because it wasn't before but it's something we have to. live with. that we might be but we have to give up some things for that well i don't think it will be safe we can. we can say for we pretend to be written to be safe that's right i mean spirit if somebody wants to it will do it 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. think that way

of treating people like accepting that people can be different and not just my way is the right way and leadscrew 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 a base for a play. america's former military commander in afghanistan has been sworn in as the new head of the cia david petraeus shared his four star general uniform to become a civil official but artie's military contributor thinks the move was forced upon him it may seem in consequential but. the first decision they general petraeus has made on his way from the pentagon to langley was stationed his military uniform and to present himself in a new incarnation as

a total civilian according to their official story general materials has an option to come to the cia as of a military or as a civilian and allegedly white house didn't 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 petraeus bend over back wards 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 mullen kiraly decided to resign from the military i'm sure if he had an option he would never resign from active duty and just

ahead we've got the kaiser report that's right after reminder of our top stories this saturday. we'll. bring you the latest in science and technology from the ground floor. we've done the future covered.

of the. welcome back and here's a quick look at the main stories today on our team russia city of eunice novel is paying its last respects to the victims of brunn's days plane crash that killed almost all of the top local i was talking to. security is being stepped up across the u.s. on the eve of the adverse real nine eleven as a new threat a barge some now fear that america's war on terror has created more enemies than it's destroyed. plus some of even a cairo strike a new sour note in relations as an angry mob egyptian capital storms israeli embassy forcing its staff to leave the country. and that's when our cheer for

national guru max kaiser talks about a dramatic shift in the global currency war because report is up next. keyser this is the kaiser report reporting of the global financial war that's raging in country after country let's bring in steve 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. you've got this global game of musical chairs or as i like to think of it past a grenade money is seeking safe harbor and they're moving to currencies that have the perception of being safe harbors like this was frank 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 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 carmen's 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 of market collapse there was of course global currency war that's right but during the currency war of that era of course the world still had a gold standard and 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. who nigeria oh yes they're doing a deal on bilateral outside of the dollar and the dude responsible like this big banker did 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 reserve currency. to know how long beach will take but china is the second largest economy in the world it's got. a very huge amounts of reserves it's in very strong financial position because if we it's the large economies and it's more in this in the same situation the united states was in up to 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 gold they have their minions all over the world sucking gold out of every little orifice of the global economy that possibly can and they need another three or four or five thousand tons of gold and again this is part of a 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 movement's all sales invoicing told the so

get paid until the sun does so goes to reserves so for example he feeds ministry of finance. we could request that whole system china before and be now that the chinese government has allowed r. and d. 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 us dollar at this point is while so what do you think will happen if if nigeria starts trading in yuan well this is why we've talked to economists like michael hudson or catherine austin fitts 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 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 us death

keeps pulling off balance sheets of the hundreds of trillions of dollars because they're out there supporting the dollar into all such time as they can support a dollar anymore and then you have an enron implosion like situation and hyperinflation overnight and people will swallow. up and paul krugman of the new york times will be like who. could. 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 a 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 a nineteenth century gold standard and passive central banks with currency boards or even with free banking the federal reserve bank in the us as independent by any stretch of the imagination and no independent body would independently suck up two point five trillion and 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 a look stick a pig wearing lipstick you know the dollar is really the. the leper with the most fingers it's the prettiest horse at the glue factory you know it's just being held up with sticks and scotch tape and lots of blows it's like most of the souvenirs

gold 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. grey cup this is u b s's stefana deo paul donovan and larry half the way and they released a report which they examined what would happen if the euro grows 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 there are economists 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 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. or in these other bankers you're going to lose everything because they're there fraud they're complete motor fraud and they've been shown to be fraudulent nineteen 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 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 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 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 about talking about their experience in a ponzi scheme this is what police find often the tell 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 had their entire mortgage defrauded in their house and 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 know but grow your economy by leveraging genuinely talented people who know how to rape and plunder u.k. . because because show on channel four rape and plunder in the city by rioting looters want to be better all right stay sober thanks so much thank you max don't go away much more coming your way so stay right there.

we'll. you do latest in science technology from around the world. we've got the future covered. when you look for new. rules. and new ideas. i am asked as your 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 virtue 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 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 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 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 isn't really a late comer money get actually originally took

a form of credit and debt ok. it's a money you used the term proportional value zero 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 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 backwards there's no example of an economy where people sat around and saying well tell you what i'll give you twenty chickens but that cow actually you know people do each other favors you know what 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 someone you know you on the face of the question is how do you go from the communities where everybody knows each other favors which is true the way communities are supposed to work is something we can say you know you will need twenty seven of these or thirty two of those and that does not seem to happen to border that seems to happen through legal systems through temple redistribution a million different ways with 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 order. debt based system as we have today and or as we have been getting 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 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 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. 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 on the train now the maison thing is that this isn't really an economic innovation the phoenicians for example or the 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 personally macquarie off you know you kind of move to cash of some soldiers the last person you're going to want to extend credit to if you're selling things any periods of war empire and

slavery you move to 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 that empires used cash to pay their soldiers when the empires go away in the middle ages so does the passion all 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 for denominated in money that no longer actually existed physically most of the time. so you have paper money you have checks tally stick. they're using in england then of course four thousand nine hundred two you get all the gold and silver coming from the americas can move back to cash the actually have the reappearance of huge empires slavery that's the period we're moving out of now since one thousand nine hundred eighty one if you 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 for the money it's actually in

a way reverting to the original form so how does the current era now so take us through what's happening now we are where we're at it we're a transition period 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 money starting in mesopotamia there was always some system in place to protect others that 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 think don't go completely out of hand of 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 was always a fear of

a debt trap poor people would fall into helpless debt to those people who actually had the money they would end up having to sell off their lands or flocks of them truly your 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 retaining a king's would simply declare a clean slate old debts are cancelled of biblical jew believe course every seven to forty nine years there is cancellations now. so usually silverjet which was commercial debt was left alone. consumer debt was way down 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 get peonage itself so there's always some kind of mechanism to protect others now what happens. the first thing they do they get rid of the usury laws they create institutions like the i.m.f. or the documents.