time to let. market. is going to find out what's really happening to the global economy with months concert for a no holds barred look at the global financial headlines kaiser reports. more news today violence is once again flared up the film these are the images the world has been seeing from the streets of canada. challenge corporation today. to cool.

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skies are this is the kaiser report let's talk about sony blair well mark adapt and assorted other psychopaths states. herbert to you max first headline banksy presents new artwork to occupy london movement now of course as with every single banksy art nobody knows whether it's his or not and this controversy already on a banksy form there suggesting that this could be from the kaiser report itself that created this artwork and presented it to occupy london because as you see in this little image keiser war dot com everybody's taking s. as the max kaiser but what's that's asked is that now that we're on three times the

way those other two hundred fifty million people around the world everyone kind of looks over their shoulder thinking about cars report all day long max and stacey that's all anyone thinks about because that's all really that matters in this new post occupy wall street world post global insurrection against banker occupation world this is all there is we are here we are talking we're no longer playing stay in the lobby watch the show so your kids to go play to the vending machines just watch the show well that's the clever thing about this everybody takes this kaiser report dot com but if you look at it it's this kaiser report and one of the original meanings of the word wart comes from london slang meaning fine splendid jolly or boisterous nobody can accuse you of being too boisterous max oh so it's a took a long time and well i'll tell you the other two meanings yeah i read some stuff because of my laser like pint well the other option is in new zealand and australia

refers to a financial impropriety particularly relating to a government program defrauding the government program while defrauding the public has become the de facto modus operandi of all the g. twenty nations as they perpetuate their massive ponzi scheme europe is going to be ok with leveraging the european finance all fun thing that they've created that just means more. currency fraud gold and silver to the moon gold and silver to the moon ok but you know talking about banksy one of his clever pieces of art and that was when in response to a salary the auction where his artwork was selling for seventy thousand pounds a pop he created this piece of art called i can't believe you morons buy that. again we have to bleep that word out of course i'm sorry but i thought this would be a great piece of artwork to be prast heard across every single prospectus every single

collateralized debt obligations or mortgage backed security that goldman sachs and j.p. morgan tried to sell to a pension fund is it has to say in bold images right up front i can't believe you morons are buying this toxic waste well in postmodernist are seen the value of art is determined exclusively by art unable propaganda you know as the transition from representational art to abstract art to post abstract to post data isn't to post post modernism we only have art now that it's value is determined entirely by the ebb and flow of mass hysteria as it relates to fetishism as it pertains to something of perceived value post any warhols campbell soup cans where he turned something common a soup can into a fetishistic object that had to be bought at any price answer banksy who rightly

calls on the kaiser report as being completely in tune with the current design of post post post information age were art value is determined by the collective unconscious winching and the central bank policies are similarly affected pure propaganda ben bernanke he says he's trying to promote inflation but in fact he's scared to death of deflation it's deflation that are put. bernanke in the soup line and we can only hope that his fate is the same as moammar gadhafi remember it's either banksy or it's kaiser report that created that art let's move on to why i think we need to have i can't believe you morons buy this toxic waste plastered across even the foreheads media of any central banker or too big to fail banker guess who's even more leverage than the european banks this is one zero hedge dot com in a constant phoenix capital research and they're saying that while the world is

awash in liquidity no one seems to notice that it's actually in the form of leverage or cheap debt not real capital or equity so this is important to know as these g. twenty nations meet in the south of france this week and the u.s. banking system as a whole is leveraged at thirteen to one which means that an eight percent drop in asset values mean they're totally wiped out the european banking system is leveraged twenty six to one which means that a four percent drop in asset values mean they lose all equity but max guess who is the leveraged the most the federal reserve bank of washington d.c. what is the exact number there levers if they're at fifty three to one right so it has a value collapse of less than two percent means that the entire federal reserve is bankrupt now here's the thing about a safe here but is that if we listen to the propagandists on c. and b. c. or c.n.n. in the united states like erin burnett for example she had a video out there castigating some for occupy wall street protester by saying that the g.m. and bank bailouts are profitable now that's not true because they just took the

debt and put on the fed's balance sheet and now when the fed goes bankrupt all you need is a less than two percent swing in asset values and the entire dollar collapses into a pile of horse spenders and their ship of course will still get her salary for telling lies and propaganda everyone and c. and b. c. will still get their salary james cramer who's killed more people in the equity markets then even bernie madoff will still get his salary bonus because the. it's all about perception not about actual value speaking of perception and not actual value look how smart the american population is they sense this the hill poll voters say u.s. is in decline or resound and sixty nine percent of respondents said the country is in decline the survey found while fifty seven percent predict today's kids won't live better lives than their parents absolutely true and sooner or later you're going to see this reflected in the stock market so people who are concerned about

the value of their net worth should start to make negative bets on the united states economy in particular companies that are exposed to the global descents like i'm thinking maybe coca-cola for example our friend adam curry has got an occupy coke campaign running on top of the campaign we had a few years ago these are the kinds of companies that once the say in the dollar in america collapses that stock could go to zero and if you're making negative bets you've got a hedge against collapse and all these are preserving your own wealth well the theme of the show is i can't believe you morons buy this but weep now we're saying here that only the g. twenty guys only to circle isn't berlusconi's and obama's and geitner is of the world meeting down there in the south of france this week by this they push on us the population itself knows it's a hoax they know it's a joke they know there is no hope in their ponzi scheme economy

yeah that's right the awareness is building and on the margins were economically speaking all prices covering price action begins that's why we're seeing a fundamental change in other words like barack obama talked about change but his was a top down change all talk no action you know as they say in texas all hat no cattle this is a fundamental grassroots change incremental on the. margins which of course will could change the center change the dynamic that's why all these occupy movements are extremely important every new individual that sits down and says no bus stop i don't nuff it triggers gets closer toward a global collapse of the dollar which is the world's prison currency well the other important ingredient in this financial collapse is the price of oil not a myth the skyrocketing cost of new oil supply and this is from the each

a annual energy review and it shows that the capital required to add an additional barrel of oil to reserves experienced a step change starting last decade and you see from two thousand and three to two thousand and four max straight up what of course happened in two thousand and three the i reckon beijing iraq invasion and invasion a war without any intent to pay for it via taxes that's the first war to be financed by a just inflation i.e. stealing from the population the iraq war has caused rampant inflation and we see this down the cost of getting that barrel of oil out of the ground and processing it the absolute absolute price of brant crude pricing cetera has moved in it's quoted often and you get the sense of where the oil market is but the people don't understand is the cost of actually pulling barrel of oil out of the ground and what you're talking about here is that the prices skyrocketed because all the inputs that go into getting a barrel of oil out of the ground those prices are skyrocketing due to all the

money that was flooding in the system to pay for america's genocide of a million iraqis for tony blair's retirement fund speaking of tony blair i have in this headline max tony blair's team have set up an office in kazakhstan says presidential adviser so believe it or not any body who calls tony blair in to advise them they usually end up buried at sea or in a unmarked grave in the dead. lo and behold apparently cause that president nursultan nazarbayev has hired tony blair associates to advise him now the article points out that with his vast energy supplies the central asian state is increasingly confident and prepared to spend millions to promote itself tony blair himself says he is not personally making a profit directly or indirectly through tony blair associates or any company on this well i buy and put on all the leadership in this country but tony blair just

entered because nobody is safe now that tony blair is there they're all in the crosshairs if you're if your leadership there you value your life you should leave immediately because tony blair is in the house and tony blair is in the house the big house of the vatican house of course and this brings me to blair's buddy pope benedict that a king calls for essential world bank to be set up pontifical council for justice and peace and a document called towards reforming the international financial and monetary systems in the context of a global public authority yes the calling for a new global economic authority and a central world bank to be run by the un under which tony blair now in riches himself around the world i mean to think that the pope is coming out and saying the vatican will this be a world bank because everything that's caused millions to die is a centralization of financial thorny and too big to fail institutions so here you

have the back and saying let's create an even bigger too big to fail situation to create more murder more stress nations more war this guy is completely inconsistent with anything that philosophically or theologically speaking that he says he represents this is no connection and c.m.t. c.-max here says it should be new sic to the ears of occupy wall street demonstrators and similar movements around the world who have protested against the economic downturn. first of all we are not protesting against the economic downturn we are protesting fraud against banking fraud occupy that it can occupy god again it's a global insurrection against banker occupation we're not saying who cares if the economic downturn this is economic collapse caused by financial fraud unchecked plus the vatican bank is one of the most corrupt banks in the world it's as corrupt as goldman sachs and j.p. morgan if. it's across any big bank well i think he was concerned about stephen

schwarzman and lloyd blankfein getting you know this guy game trying to grab goldman sachs and and all these press right like i said he's doing god's work yeah like oh wait a minute i got the big. thanks so much for being on the kaiser report thank you max ok much more coming away so stay right there. you know sometimes you see a story and it seems so you think you understand it and then something else you hear or see some other part of it and realize everything you thought you knew you don't i'm sorry is a big. reason you believe in the science to take. from. the future

coverage. you. can only go. by my stars or welcome back to the kaiser report time out below to atlanta georgia speak with gal for berg gallons of actuary who writes our finite world dot com and you can also follow her on twitter at twitter dot com forward slash yell of the actuary get all the actuary welcome to the kaiser report ok q all right carol according to wikipedia an actuary is a business professional who deals with the financial impact of risk and uncertainty so the question is with risk and uncertainty in mind and tell us about your latest article on the united states as debt bubble and rest pose for the america and the whole world at this time well i think probably contributes to g.d.p.

growth as it goes up but as you start reaching liber in oil supply or whatever kind of broader finite resources that we bring into limits in your debt bubble starts the freighting and it acts the reverse direction it causes d.d. g.d.p. to decrease rather than increase i mentioned oil there to what extent has or has oil supported the that bottle in america well i think it helped us have economic growth that was especially true prior to nine hundred seventy when it was our own oil supply that we were pumping out. and our growth rate was higher back to nine hundred seventy then we started importing more oil using oil from around the world and while that we got from elsewhere we're sorta but not quite as well as they were we had ourselves and our road growth rate slowed down.

after the one nine hundred seventy nine hundred eighty period and so we then any lower she e.p. growth rate but the fact that we had while in there helping us keep the growth rate up and helped us to maintain our debt erodes which it has resulted in a combined high growth rate right now at all certainly the g.d.p. has been bouncing around over the past twenty or thirty years and had a nice pop there during the reagan years but oil was certainly contingent on the growth of the debt bubble g.d.p. there is a relationship there so now that america occupies iraq libya they sent troops to uganda with these oil reserves secured by the american empire with this enable this debt bubble perhaps to resume growing and maybe is this the way the u.s. will see its way back to growth where i don't see in the urban want to terry

approach really has worked very well in the paris three he had all kinds of military interventions in your prayers and even production in iraq is just barely growing how to oil exports aren't going up at all because they don't have the export capacity are even if they do have increased or oil production there's no direct translation of our military efforts to higher oil production and i suspect we'll have the same situation elsewhere i guess what you're describing here in terms of a debt bubble collapse is the flesh and something we saw in the one nine hundred thirty s. after the run up of the stock market and other assets in the one nine hundred twenty s. you had a big pop a big crash then you had a deflationary depression and what you're describing here is a de flesh unary depression of debt implosion and inability of policymakers

to restart the inflationary boggle the reserve. it is however trying to. restart inflation by putting as much money into circulation as a possibly can over there at the fed is the deflationary debt implosion going to continue at this pace in your view and so we end up out in one nine hundred thirty s. style depression worse than we are now or will there be any intervening force to counteract that well i think we probably will had heard something that looks like a nine hundred thirty style depression on i'm not quite sure exactly how it works out but i think what happens is the the prices of goods that people use on a day to day basis you know are going to clothing are going to continue to rise what's going to happen has it's going to be increasingly difficult to sell

assets that normally and yet. associated with your sale and so there's going to be inflation in home prices or just the inability to sell them in commercial businesses or even stocks and things of this sort are going to be affected more by the then be the crisis of the year again commodities that everyone needs right so this is it's a bit of a mixed bag isn't it because although you have you have what's called cost paul inflation with energy and food at the retail level that people point to and say oh look at inflation when you compare that against a backdrop of the housing collapse and the bond market collapse the net effect is still deflation isn't it yeah i think there's the rate you are describing it but from a quite a view of the ordinary person who made us who making radical. minimum

wage i think they may see it is in play sharing right now let's talk about china for a second because one of the primary reason really why you haven't seen inflation in the u.s. despite all the money printing is because of the offset that comes from chinese labor force that has knocked the u.s. worker out of the box and has contributed to this massive wave of the flesh and and china of course sucks up all the cash and they're hoarding it more or less into the trillions of dollars of the reserves they're not research relating it not sense they keep the u.s. dollar you went paid in place so china is really i would say the biggest obstacle to the u.s. being able to grow its economy again. how is that going to play out your view gail going forward oh i think there's another aspect to the chinese economy too andat is

that at least their internal growth has been propped up with a lot of debt of their own building all kinds of apartment buildings everywhere i was just over there in a song for myself how much building had gone on but there are all kinds of government projects and there's a lot of debt that undermines all of this and so china needs growth to support all of its debt as well but what's happening is that its customer base is slowing down in a good price of its call it's by rising the price of well of course that prices rising this well so it's starting to feel some effects so there are some definite issues with china actually being able to keep up the pattern that it's heading in the past and it may start hitting recessionary impacts as well and not

to ok well what used what you're describing. areas in the past if one country's economy is slowing down another one might pick up and this has gone on for many decades and is part of the global scenario economics for quite some time but now if china starts to slow down in a meaningful way we're talking about a global depression so post collapse what happens to the dollar and does this affect the currency markets in any way like we saw after world war two when they came together and they created a grand woods agreement having to reconfigure the global currency market you see anything like that developing yeah i think there's going to be some major upsets in the currency market i think and then the euro the way you know all of the activity receiving over there i'm afraid we're going to see isn't really a break up of the euro or some of the. countries leaving the euro or the euro just

falling apart yeah there you know there's kind of a race towards the bottom everybody wants to have their currency to lower their better able to sell exports broke a whole situation just as a work i think there's going to have to be some sort of like you say a reconfiguring but i know it should be able to reach an agreement i know you mentioned a coal there a moment ago and i want to pick up on not a little bit you know the history of energy usage over the years you know you had whale oil which gave way to coal which gave way to only all petrochemical oil now is there another energy source in our future that's going to be able to pick up the slack in your view i don't see that there is i think i hope back in the seventy's rise that it was going to be nuclear energy but now we've seen so many bad results from nuclear that i don't think there's really hope at bats the one that's going to really take us to the future maybe if we had tried story in back forty years ago

and. had all her wrinkles worked out in use than stolen uranium maybe that would have worked but at this point it's really getting too late in the game to find a new energy source and get it growing can you give us a one minute breakdown on story and i just was reading about this recently we had a point going back at the dawn of the nick of the range of choosing. nucular substances and can you just give us one minute summary of that story well third is in some sense similar to your a.t.m. but it doesn't leave you with all of the radioactive residue it's a problem after the fact so it would be a much better source from their point of view it also is available on rush larger quantities so it wouldn't be as much of our problem for extraction from around the world and also when it's right it doesn't cause all the problems that

the uranium there right so i'm assuming that the lobbyists for the iranian industry had their way and that's why we have uranium today. but let's wrap it up of you've got about a minute left your final thoughts on what happens when the debt bubble or peak debt meets peak oil which is the norm and we seem to be at right now these two developed simultaneously over the past thirty years the debt bubble grew as the oil market grew now that we've had peak oil we've also had peak credit or peak debt so what's the go forward from here again i think we end up with a situation that looks a lot like the limits to growth what was forecast back in one nine hundred seventy two when the book was originally written are where you have a downward spiral in all areas of the current to me and instrument by limited resources all right well that's all the time we have thanks so much gallant

berber be for being on the kaiser report thank you. all right that's going to do it for this edition of the kaiser report with me max keiser and stacy herbert i thank my guests. can follow her and her website at gallery actuary now if you want to follow me on twitter i'm at twitter dot com forward slash max kaiser stacy her body going to follow or using her name or you can also go to facebook dot com. the report that you called on all the updates and we asked you for questions on our show so we rely on you to help us and if you want to send me an e-mail you can do so it is a reported r t t v dot are you well next time this is a match guys are saying. you know sometimes you see a story and it seems so you think you understand it and then you glimpse something

else and hear or see some other part of it and realize that everything you thought you knew you don't i'm tom harkin welcome to the big picture.