it seems as if it was almost after the phone call that the police intervened in the situation was eventually brought under control the incident was actually sparked by israel's refusal to apologize for killing five egyptian soldiers last month and that was in a cross border raid that is old says was a mistake but it hasn't gone the step of actually apologizing for those gifts all of this comes just months after the former egyptian president hosni mubarak was ousted he of course was a long time friend of israel and this is my many here also suspecting that israel because of its traditional behavior is likely to react much strongly in the coming hours if not in the coming days but of course this one is in a delicate position because it needs all the friends that he can have particularly in light of the fact that it is just one week since the israeli ambassador was expelled from turkey all of this coming at a critical juncture for israel just days ahead of palestinians going to the united nations security council to call for a palestinian state clashes have broken into a store if you rally in the greek city of course

a lot mickey roots riot police firing tear gas to disperse protesters record number of police are on standby is probably as to george peppard dreyer's expected to deliver his annual speech on the state of the economy as opposed to economic analysts expect to see thinks that big of the eurozone does more harm than good for greece right now. now i would agree with me but i have criticized the saying that we are in the euro it really hasn't been a sort of those all that much and if one looks at the numbers i mean the euro has appreciated another sixty percent since we actually joined which is done nothing to do it greece isn't ready to leave the euro and the eurozone would not be able to throw us out such a we there is actually not legal exact mechanism you look treaties from the eurozone you could also practically by telling us we could begin with but it would not be something that would suit anybody's need done in such a chaotic and and manner i think this soakers especially over this weekend on

greece is a little bit of need i think the biggest problem that the eurozone faces if science really actually organized an essentially realize that a lot of the underlying problems in the sector it was a little stretch of trouble even first. elsewhere around the world in libya hundreds of people in the rebel town of benghazi of walked out of the streets in protest against the actions of the country's new government meanwhile libyan rebels are pulling back from bani walid one of four remaining colonel gadhafi strongholds as nato airstrikes reportedly start in the area towns held by loyalists had been given until saturday to surrender to the new libyan leadership as the rebels continue to search for the fugitive leader can we get our fees latest audiard messages claim he's still in libya despite reports of his family and some associates crossing the border into the chair. the arab league's reached an agreement with syrian president bashar al assad about a series of measures to end a long lasting violent crackdown on protesters a big percentage are in

a meeting of arab foreign ministers in cairo the syrian president was also urged to speed up the phone plans about two thousand reported have been killed in syria since the start of the uprising in march. at least one hundred eighty seven people have died after a ship sank off the mainland tanzania authorities say the ferry carrying at least eight hundred passengers capsized after leaving port heavily overloaded authorities say six hundred twenty survivors have been recovered from the water rescue the struggling to search for them though in tough conditions and requested foreign help from kenya and south africa. coverage of the tenth anniversary of nine eleven that event was the worst act of terrorism on american soil and the spark that ignited the war against al qaeda but despite the killing of osama bin laden the scars on the bigger will remain as norrie hafen is found that she spoke to people in new york. at the gate after the horrible man eleven terrorist attacks in the u.s.

how is the world. this week let's talk about where the. dangers. things are predictable you don't know what what's going to happen next much i think . 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 the 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 the commandants to be honest i have a lot of friends that are over there and i would say it's hard every time they leave i'm not for war so no i don't think war is to make us feel safe if everyone

lives his own business i think everything would be better if we had been hearing you yourself last week. several places where. we find this a lot of security so we understand all that is because he wasn't before but something we have to. live with. so we might be paper but we have to give up some things for that well i don't think it will be safe we trust we can say for the pretense at least they appear to be safe and that's right i mean during the spirit if somebody wants to. it will do it but 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. will think of a way of treating people like accepting that people can be different and not just my way is the right way but. 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 fair play. this is our t. just a minute or two our financial guru max discusses a dramatic shift in the global. and see what the colleges report coming your way shorter than my name is kevin i'll be back with the headlines just before that.

we'll. bring you the latest in science and technology some of. the few jerks covered. great.

subject. moscow. because report on air in just a few moments but these are all top stories before the russian city of heroes paying its last respects to the victims of wednesday's plane crash that killed almost all of the top local isocrates. security is being stepped up across the u.s. on the eve of the anniversary of nine eleven as new threats emerge and some no fear that america's war on terrorism created more enemies than it's destroyed. us tell of even cairo strike a new sour note in relations an angry mob in your gyptian capital storms the israeli embassy forcing its staff to flee the country. you're watching r.t.

. mag's kaiser 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 past a grand 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 norwegian krone and to some extent the australian dollar and maybe a little into the canadian dollar but those john sees two world collapse all three of currencies will collapse now all this is going on the various bodies that regulate overseeing the trading of gold and silver keep raising the marginal parm and 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 of that 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 yuan that's right all of the bilateral deals between russia iran china

nigeria who nigeria oh yeah 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 will recognize our and be a series of currency. do no harm long between take but china is the second largest economy in the world it's got. for huge amounts of reserves it's in very strong financial position. it's the p.c. of the 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 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 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 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 wholesale invoicing told the sun we get paid into all this and so 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 now

that the chinese government has allowed r. and b. for such 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 backing the us dollar this point is boiled 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 of an oil or para pursuit 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 sheets of the hundreds of trillions of dollars

because they're out there supporting the dollar into also timers they can support a dollar any more and then you have an enron implosion like situation and hyperinflation overnight and people will ask wall. up and paul krugman of the new york times will be like who would do. 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 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 glue number up there is based on how the u.s. used to calculate consumer price inflation before one thousand 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 before him 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 nine hundred centuries gold standard and passive central banks with currency boards or even with free banking the federal

reserve bank and the u.s. 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. there's a leper with the most fingers it's the prettiest horse of the glue factory you know is just being held up with sticks. and once it blows its load most of the suv is bulls skull overall kid while gold is already skyrocketing but again this is the global currency war we're moving onto 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 that 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 there are there

are fraud there are complete and utter 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. 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 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 both in the u.k. the problem is then you see this all over the world victims are very reticent talking about their experience in a ponzi scheme this is what police find often that will 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 had 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 to fraud in 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 big a show in china for rape and plunder in the city by rioting looters what could be better all right thanks ever thanks so much thank you max don't go away much more coming your way stay right there. when you look for nuclear weapons against. barrels. brains must.

have new ideas. for terrorist attacks it became synonymous with. the senseless slaughter of almost seems to stop. the vision of a. news on the team members. to. look back at nine eleven the city. i am ask eyes or welcome back to the kaiser report this is the book you've got to get it's called death 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 graver 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. dead on the other hand is when you take a promise and turn it into money when you take a promise second be precisely quantified and because it can be turned into money turned into mathematics you can transfer from one person to another normally if i make a promise to someone else i can't act you know you can't sell me a promise to a third party that's what makes debt so special it's impersonal it's a catch 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 queens and that didn't come

first at all in fact cash isn't really a late comer money fully 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 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 a in the scheme of economics correct in a 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 for that cow actually you know people give each other favors you know we're in

a real society about money the way of apologist such as me is observed what people do is they say you know 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 own a favor the question is how do you go from the communities where everybody knows each other favors which is through the weight 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. happens to border that seems to happen to 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 at the 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 is a kind of a shape to history an ebb and flow of credit money is the original form of money you already have expense accounts are town obs fluctuating interest rates. compounded interest rates you know long before the invention of coins and then around seven hundred six fifty eight he kept a simultaneous invention of pointed 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 great traders 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 going to carry off you know you kind of move to cash to some soldiers the last person are

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 for maybe five hundred b.c. to five hundred eighty. was a period giant empires that empires used cash to pay their soldiers when the empires go away in the middle ages so does the national 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 are for denominated in money that no longer actually existed physically most of the time. so you have paper money you have checks you have tally sticks are using in england then of course one thousand nine hundred two you get all the gold and silver coming in the americas people move back to cash you actually have the reappearance of huge empire slavery that's the period we're moving out of now since one thousand nine hundred seventy 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 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 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 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 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 big problem is first of all how do you make sure things don't 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 of n. truly their wives and children and themselves into slavery or debt peonage so that the response was normally to put in some kind of mechanism a failsafe in taney and kings were simply to. clean slate. all debts are cancelled . believe course every seven to forty nine years there is cancellations now. usually silverjet which was commercial debt was left alone but consumer debt was way down on everybody to start over again and the middle ages had a different tack they mostly had usury laws so lending money at interest was illegal also in itself so there's always some kind of mechanism to protect others now what happens this time.