it's made from poppies the opium here will be put to good use but thousands of miles away nato troops are wiping out existing afghan poppies with bombing burning and spraying the main question is why we destroying crops and then having to grow poppies in the fields in the teacher has been used by the american and british governments repeatedly one of the so-called soft arguments of the liberal arguments is that their party war on drugs is completely pop was they it's not true it's not what a war is about and we should own up to it's easy to understand why afghan farmers grow then sell opium to the taliban there's an effective distribution network and they can make around seventeen times more profit per hectare than they could on wheat despite the obvious economics farmers are still being encouraged to grow their crops british m.p. frank field thinks that policy has failed but the americans would park america and

we following this behind them. makes a nonsense of what this relationship should be approach and you'll probably wish it lives at stake not to be able to use it as a bargaining position with the americans to rethink a strategy which i think most people think over the years has failed if we look historically has. had we try a new chairman frank fields and his group poppy relief think afghan opium should be legalized instead it would benefit afghan farmers raise much needed revenue for the governments nation rebuild and stop the opium falling into the hands of the drug cartels field says it should be military strategy to in afghanistan we have chosen problems rather than brains and anybody to be thinking about how do we get ordinary people ordinary farmers to see poppies as a cash crop. to protect the backs of our troops we will be thinking about how do we

harness this core how do we pay them for it. to transfer it into medicines to. burnt in afghanistan and kept a secret here in britain no one wants to talk about the u.k.'s opium growing program we asked the farmer and the company they grow for smith if they would give us an interview but fallen smith said they wouldn't allow the farmers to talk to us because it's part of their contract with the home office that they keep the poppy growing. the home office also declined to comment while poppies are increasingly harvested in britain the so-called war on drugs is being decisively lost the u.n. says opium production in afghanistan has been on the rise since the us occupation began in two thousand and one nor end it oxfordshire. to

our top story coverage of the tenth anniversary of nine eleven and the event was the worst act of terrorism on american soil and the spark that ignited the war against al qaida but despite the killing of osama bin ladin the scars of the bigger will remain to this day is already half of us found out who she spoke to the people of new york. i take it after the horrible nine eleven terrorist attacks on the us how is the world change this week let's talk about that there were i would say more dangerous but it's more like our tick saw things are predictable you know what what's going to happen next to 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

a threat just more on the lookout do you think that people around the world still keep that a chill 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 the common answer 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 safe if everyone lines on business i think everything would be better if we had been here in new york. the places we find this a lot of security so we understand all that. because he wasn't before but something we have to. live with. that we might be safer but we have to give up something score that well i don't think it will be safe try to keep you safe or we pretend to

be a safe person to be safe that's right i mean during the spirit if somebody wants to themselves 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. change their. i think it will prove a lot of people like accepting that people can be different and not just my way is the right way and let's kill everybody this is not right no matter what you think it's changed the bottom line is you can only hope the world continues just strive to be a play. and i will show business throughout this and for the fourth time in its history the top prize at the venice film festival finding its way here to russia themselves the alexandersson chorus movie faust creedal father rivals political life gurus united in its decisions will head off scheming praising this picture saying it will change

views forever. with two years of shooting the overall price tag of nine million dollars first is of course most ambitious project inspired by both tragedy the dialogue in germany has yet to be translated to other language using clued in russian if you want to more about the direction as we're going to a website are. coming up very soon on this channel financial guru most cars are discusses a dramatic shift in the global currency war stateroom for the kaiser report and if you can before that i'm kevin owen i'll be back in a minute or two with a recap of the top stories.

luke.

twenty four seven live from central moscow this is our t.v. these are our top stories this morning russia city view ourselves pay their last respects to the forty three victims of wednesday's fatal plane crash sportsman from the top local ice hockey team who perished in that incident have been buried with military. and you a nation on guard new security threats emerge on the eve of the tenth anniversary of nine eleven as some fear us foreign terrorists created more enemies and it's destroying. us television in cairo striking new solid noted relations as an angry

mob in egyptian capital storm the israeli embassy forcing its staff to flee the country. could have been a moment time for the bankers in fact cats to take cover because reports on the air . the story. plainly. dynamic. but. my. max 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 out of 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 the global game of musical chairs or as i like to think of it past a girl made money is seeking safe harbor and they're moving to currencies that have a 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 incident an eating dollar but those two world collapse all three of currencies. collapse now all this is going on the various bodies that regulate oversee the trading of gold and silver keep raising the marginal corman'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 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 a foreign exchange holding into yuan that's right all of the bilateral deals between russia iran china nigeria who idea 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 will recognize our and be

a series of currency. you know how long between take but china is the second largest economy in the world its courts. for huge amounts of reserves it's in very strong financial position. it's the large economies and it's more or less 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 the weiss 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 yeah and again this is part of a trend which we've talked about it's just that the currency volatility of 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 that all cells invoicing told us and we get paid to call this on the reserves so for example you feed the ministry of finance objection so we could require it also has to try to pay for in you know 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 you on all this is that while you talk 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 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 also time as they can support a dollar anymore and then you have an enron implosion like situation and hyperinflation overnight and people will wall. up and paul krugman of the new york times will be like a balloon boy. 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 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 thousand nine hundred eighty and topol 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 more inflation not less if the overriding objective is price stability we did better with a 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 any no independent body would independently suck up two point five trillion a toxic debt 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 pig wearing lipstick you know the dollar is really the. the looker with the most fingers it's the prettiest horse at the glue factory you know it is just being held up with sticks and scotch tape and once it blows its load most of the souvenirs gold skull overall 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 fangio paul donovan and larry half the way 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 and 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 to 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 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 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 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 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 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 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 riots 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. because they could show a channel for rape and plunder in the city by rioting looters well could be better all right stacy ever thanks so much thank you max don't go away much more coming your way so stay right there. we'll. bring you the latest in science and technology from the realms. we've got the future covered. great. unique. but the. most go.

i am asking as you're 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 place 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 the music or clothing is you know money is just the 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 that 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 obvious 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 actually originally took the form of credit and debt ok. you say money you use 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 in the scheme of economics correct in the sense although you've got to be careful of the term border because we're all taught that in. 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 afterwards 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 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 all my favor the question is how do you go from the communities where everybody knows each other favors which is the weight communities are supposed to work is something where you say you know you will need to actually twenty seven a d.s. or thirty two of those and that does not seem to happen to border that seems to happen to legal systems through chemical 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 means like all and so or 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 who really interesting things 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. here's 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 bar tabs fluctuating interest rates. compounded interest rates you know long before the invention of coins then around seven hundred six fifty eighty you skip the simultaneous invention of coinage in india in china and first of all in the train now the missing thing is that this isn't really an economic innovation the phoenicians for example or the. 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 personally rick perry off you know you kind of move to cash that some soldiers the last person are going to want to extend credit to if you're selling things and in 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 of giant empires the 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 were using complex credit systems which were 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 empires 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 in 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 it walk us through what's happening now we are we're on it we're a transition free 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. you might make the big 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 in to. get to those people actually had the money they would end up having to sell off their lands their flocks so then surely 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 of kings would simply declare a clean slate. all debts are cancelled. believe course every seven the forty nine years there is cancellations now. to.