you know these asperity cuts are really really much much deeper than than people realize these are cuts that are reaching into people's homes and lives and people when faced with the uncertainty of where they're going to get their next meal or where they're going to get a job or when jobs only exist in a future that's just plain bleak and they see a. group of people who have no cultural identity in line with themselves calling the shots as to how they're going to live their futures and the policies are going to live underneath of they oftentimes turn to turn turn to violence and this is not something that's human history i think the politicians it's kind of like the central bankers who people turn to the try to solve the very problems that created these guys are the ones who are responsible at the end of the day people of greece are not going to be any better off under the a steady measures being levied against them today i would argue it has more to do with a consolidation of consolidation that puts more power in the hands of the euro kratz and takes away even more of the national identity that belongs to whatever's left

of greece as we refer to it and the austerity will not work it's up to the greek people themselves to determine what hysteria measures will be implemented they certainly don't want to be taking orders i wouldn't think from people sitting in brussels and the i.m.f. who are trying more or less to consolidate the power to drive what i consider to be towards one world government so we're dealing with a euro zone which is based upon the false premise that central planning works and that more central planning can fix the misguided central planning on a national level that has failed miserably obviously in the case of greece and in the case of other countries in europe and american suit for that matter. also around the world in libya hundreds of people in the rebel town of bengazi are walked through the streets to protest against the actions of the country's new government meanwhile libyan rebels are killing bank and bani walid one of the remaining colonel gadhafi strongholds of nato as strikes reportedly start in the area towns held by loyal it's been given until saturday to surrender to the new

libyan leadership as the rebels continue the search for the fugitive leader. messages claim his still and be there just times reports of his family and some associates crossing crossing the border into tunisia are. around two hundred people have died after a ship signed off mainland tuns the new year authorities say the ferry carrying over eight hundred passengers capsized after leaving heavily overloaded officials say that so far six hundred and twenty survivors have been recovered from the sea search and rescue operations are being hunted by a lack of equipment and how it has been requested from kenya and south africa. parsifal lodging in southern pakistan has claimed more than one hundred thirty lives this weekly monsoon rains a small thing in the country for nearly a month now nine died in karachi after being electrocuted in incidents related to the heavy rain the weather also calls huge traffic jams in the city with many motorcycles motorcyclists injured and skidding it's time to start recovering from

the voice loads in the country's history a year ago but over one thousand seven hundred people died and twenty million were wrecked it. back now to the tenth anniversary of the nine eleven attacks and our resident reporter in new york dory often it's been out on the city's streets asking people how the world has changed in the decade since then. 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 the world is i would say more dangerous more like saw 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 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 video 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 to 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 i'm not 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 last week. several places. 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. so we might be paper but we have to give up some things for

that well i don't see you will be safe we trust we can say for we pretend to be as they pretend to be safe that's right i mean there are just very difficult somebody who wants to solve 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 and well of prison or people like accepting that people can be different and not just my way is the right way and that's to everybody this is not right no matter what you think it's changed the bottom line is be can only hope the world continues to strive to be a safer place. for the fourth time in its history big top prize at the venice film festival will be finding its way to russia xander at the curves movie found other rivals to win the golden lion the jury was united in its decision to head down and i don't know if

skeets praising the pictures saying it would change viewers for ever with two days of shooting and the overall price tag of over nine million dollars found a spade fit curves and most ambitious project is applied by gatiss tragedy they've done over in germany because he had to be translated into other languages including russian scientists from nor bob the director had his wild crowd our website that's our calls. coming up see oh he's going to short period max keiser discusses a traumatic shift in the global currency war a change for the kaiser report i've been told that i'm back with every top of the top story.

you know watching us he's going to hollywood as the headline. russia says he had gas out and has aided last respects to the forces. three victims when it's a fatal plane crash small smoke will be told to focus on the hockey team who perished in that incident of the fire it was a military sense of. a nation gone through security threats and knowledge of the evil they turned from about zero nine eleven that some fear that he was born to run has created more enemies than a destroyed. us television cairo strike a new sign out in relations on every one of them to egypt and the capitol hill days radium to see forcing it stopped to please the country. as the headlines coming up

in about time for the fox cats to take cover if the kaiser report next. because or this is the kaiser report reporting of the global financial war that's raging in country after country let's bring in steve syrup for 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 wild 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 a 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 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 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 temperament thirty three billion dollars of foreign exchange holding into yuan. all

of the bilateral deals between russia iran china jerry who nigeria they're doing a deal 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 r. and b. a series of currency it's you know how long beach will take china is the second largest economy in the world it's court. for a huge amount of reserves it's in very strong financial position. it's p.c. of the large economies and it's more or less in the same situation the united states was enough to the second world war when the large economy swear.

it badly 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 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 well let's turn to this other. because this is very important. to. me and you have these are decisions one of the moments all sales invoicing told the sun we get

paid and told the sun the reserves so for example you feed the ministry of finance has no objections we could request spit all sales to china paid for in the chinese government has allowed r. and b. for settlement for such transactions so max what do you think of this if it because this is always the this is the thing backing the us dollar the only thing back in the u.s. dollar at this point is the oil so what do you think will happen if if nigeria starts trading in yuan well this is that while we talk to economists like michael hudson or catherine austin fitts they say we're back to the dollars war and war and oil are para pursue so to speak so yes as the warfare state of america collapses then that puts additional pressure downward pressure on the dollar it's holding up relatively well and my theory there is that ninety percent of the dollar buying is done through high frequency trading algorithmic trading computer trading in this is all done really through the shadow banking system and this is why the

u.s. death keeps pulling off balance sheets of the hundreds of trillions of dollars because they're out there supporting the dollar into all sorts timers they can't support a dollar anymore and then you have an enron implosion like situation and hyperinflation overnight and people wall. up and paul krugman of the new york times will be like 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 at above six percent. i want to turn our attention to shadowstats inflation numbers and as you can see the red line is the official number so it's always well below six percent of course but the blue number out there is that 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 referring to that chart on the left hand side of the inflation in the u.s. you saw that inflation was fifteen percent in one nine hundred eighty until paul volcker raised interest rates to twenty percent crashing inflation back down to closer to two zero percent now this is what paul volcker says about what central banks add to stability of a monetary system it is a sobering fact that the prominence of central banks in this century has coincided with a general tendency towards more inflation not less if the overriding objective is

price stability we did better with the nineteenth century 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 any 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 networks looks like a pig dressed up with a bunch of lipstick and 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 is just being held up with sticks and scotch tape and lots of blows it slowed down the suv pulled over

all kids while gold is already skyrocketing but again this is the global currency war we're moving on to another headline about another currency u.b.s. declares the euro should not exist and a monster report on the odds of an e.u. breakup this is u.b.s. is still fangio paul donovan and larry hathaway and they 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 of 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 the u.b.s. or in these other bankers you're going to lose everything because there are there are fraud they're completely other fraud and they've been shown to be fraudulent nineteen different ways to sunday and 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 in 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 riders both in the u.k. the problem is and you see this all over the world victims are very reticent of talking about their experience in a ponzi scheme this is what police find often 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 hopefully the stick of wood but if they have their entire mortgage 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 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 grow your economy by leveraging genuinely talented people who know how to rake and plunder u k. you can take a show on channel four rape and plunder in the city by rioting looters what could be better all right stacy ever thanks so much thank you max don't go away much more coming your way stay right there. for terrorist attacks that became synonymous with. the senseless slaughter of

almost three people stunned. the vision of a. ten years old. look back at nine eleven to see. the worldwide manhunt for him lasted for fifteen years. one million euro war was promised for his country. political murder for the west. in. general the serbian army. chief.

i am ask asriel welcome back to the kaiser report this is the book you've got to get it's called. the first five thousand years all right let's talk to the author david graber welcome to the kaiser report thanks great to be here all right david graver which came first debt or money and how do you define that well if you define money really broadly i suppose in a certain sense it's always been around this one of those things that you know wasn't really invented at all anymore than say music or clothing is you know money is just. way of saying twelve of these are worth two of those it's a way of measuring proportional values i guess you can say dead 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 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 has 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 can really originally took the form of credit and debt 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 well in they 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 equal side 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 out apologise 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 something wrong you know you will my fate. the question is how do you go from the communities where everybody knows each other favors which is true the weight communities are supposed to work something. it's a you know you'll need twenty seven of these 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 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 the beginning and the

hard money economy is 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 have expense accounts. fluctuating interest rates. compounded interest rates you know long before the invention of coins then around seven hundred six fifty eight he kept the 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 free traders of antiquity didn't even use coins and told very late it was mostly to pay soldiers and actual

cash it makes sense if you think about it because if you have a bunch of marauding people stealing gold and silver with the person they're going to carry off you know you kind of move to cash that's them 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 from a b five hundred b c two 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 the. casual 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 checks you know 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 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 the money it's actually in a way reverting to the original form of money so how does the current era now take us through walk us through what's happening now we are where we're at it returns 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 the big problem is first of all how do you 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 it was always a 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 flock so then surely their wives and children themselves into slavery or debt peonage so that there is. normally to put in some kind of mechanism a failsafe om in simply declare a clean slate. 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.