here with r.t. the headlines for you american anti corporate protest now have to prattle the upcoming winter without any power supplies authorities confiscated their generators and feel they remain on a positive as their banks are by no means the national guard. germany's nationalist party sees support for its anti immigrant starts growing in the country critics say the trend is giving rise to crime because deep social divisions. and the man who robbed millions of people of their life savings nine hundred ninety s. is back is once again promising the earth there's still plenty of people into restless quest the enterprise. x n r t the kaiser report with down the top financial stories of the day.

because the report let's talk about sony blair market 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 forum there suggesting that this could be from the keiser report itself that created this our work and presented it to occupy london because as you see in this little image keiser warts dot com everybody's taking us as the max kaiser spent testing is that now that we're on three times the weight goes out to 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 go go go go play in the lobby watch the show so your kids to go play to the voting 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 says kaiser warts 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 triple entendre well i'll tell you the other two meanings yeah i already saw 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 financial fun thing that they've created that just means more. the currency fraud gold and silver to the moon gold and silver to the moon i think you know talking about banksy one of his clever pieces of art and that was when in response to a style that he's 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 plastered 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 enabled 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 it any price answer banksy who rightly call on the cause a report as being completely in tune with the current design of post post close to

information age were art value is determined by the collective unconscious winching and the central bank policies are similarly affected pure propaganda he says he's trying to promote inflation but in fact he's scared to death of deflation it's deflation to put back. on 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 is even more leverage than the european banks this is on zero headshot common occurrence in 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 cheat 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 it stays here but is that if we listen to the propagandists see n.b.c. or c.n.n. in the united states like erin burnett for example she had a video out there castigating some poor occupy wall street protesters 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 horsefeathers and their ship of course will still get her salary for telling lies and propaganda everyone it seems to see 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 the sense of 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 safe in a dollar in america collapses that stock could go to zero and if you're making negative bets you've got to hedge against collapse and lose your preserving your own wealth well the theme of the show is i can't believe you morons buy this bleep now we're saying here about only the g twenty guys only the 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 the 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 price discovery and 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 i say in texas all hat no cattle this is a fundamental grassroots change incremental on them. arjun's 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 proud enough 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 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 but the iraq war has caused rapid 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 prices cetera has moved and 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 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 this 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 why by and put on all the leadership in this country that tony blair just entered because nobody is safe now that tony blair is there they're all in the

crosshairs if you if your leadership there you go your 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 vatican 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 they are calling for a new global economic authority and essential 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 vatican saying let's create an even bigger too big to fail institution to create more murder more cessna 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're not protesting against the economic downturn we're protesting fraud against banking fraud occupy batek in occupy vatican it's a global insurrection against banker occupation and we're not saying who cares if they can on a 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 it is crap is a just me saying it's a corrupt as any big bank but i think he he was concerned about stephen schwarzman and lloyd blankfein getting you know this guy game trying to wrap goldman sachs and

and all these press right like like i said he's doing god's work yeah well it's like well wait a minute i think that. all right thanks so much for being on the kaiser report thank you max go much more coming away so stay right there. three. three. three. three. three. three. three vote. for your immediate trial against the c.e.o. don carty.

nice guys you're welcome back to the kaiser report time now to go to atlanta georgia speak with gal for berg gallons of actuary who writes our finite world. com and you can also follow her on twitter at twitter dot com forward slash the actuary gal the actuary welcome to the kaiser afford ok q all right gal 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 a 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. then as you start reaching limits in oil supply or whatever kind of other finite resources that we grow to the limits in your debt bubbles various deflating and it acts the reverse direction it causes the g.d.p. to decrease rather than increase i mentioned oil there to what extent is or has oil supported the that bubble 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 on and our growth rate was higher back prior to nine hundred seventy then we started importing more oil using oil from around the world the while that we had from elsewhere were sort of not quite as well as they were we had ourselves and our road growth rate slowed down

and after the one nine hundred seventy nine hundred eighty period and so we'd been any lower tce growth rate but the fact that we had well in there helping us keep the growth rate up and helped us to maintain our debt. which has resulted in a combined high growth rate right now also only the g.d.p. of them bouncing around over the past twenty or thirty years they 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've sent troops to uganda with these oil reserves secured by the american empire will 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 the new or terry gross surely has

worked very well in the paris three he had all kinds of military interventions in your prayer an event or a production in iraq is just barely growing up we were all exports aren't going up at all because they don't have the export impassively 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 don't care what you're describing here in terms of a debt bubble collapse is deflation something we saw in the one nine hundred thirty s. after the run up on the stock market and other assets in the one nine hundred twenty s. you had a big pop the big crash and you had a deflationary depression and what you're describing here is a deflationary depression of debt implosion and inability of policymakers

to restart the inflationary possible the reserve bank 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 six style depression. worse than we are now or will there be any intervening force to counteract that well i think we probably will head to word something that looks like a one nine hundred thirty style the pressure and. i'm not crazy 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 food and 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 debt. associated with their sale and so there's going to be the inflation in home prices or just inability to sell them in commercial businesses are even stocks and things of this sort are going to be a factor more brightly than the good prices here 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 way you would describe it but from the point of view of the ordinary person who maybe has raking in not

a whole lot of minimum wage i think they may see it is important sherry right now let's talk about china for a second because one of the primary reason really by having 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 playstation and china of course sucks up all the cash and they're hoarding it more last year got trillions of dollars of the reserves they're not research elating it not sense they keep that u.s. dollar you went paid in place so china is really i would say the biggest obstacle to be less of being able to grow its economy again. how is that going to play out in your view gail going forward but i think there's another aspect to the chinese

economy too andat is at least their internal rose 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 may and song for myself all right shah building had gone on but there are all kinds of government projects and there's a lot of that underlies all of this and so china needs growth to support all of its stats as well but what's happening is that its customer base is slowing down in the price of its coal it's by rising their prices well they're good prices rising as 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 its head in the past and it may stare and getting ready for

a recessionary impacts since well i'm not too ok well what used what you describe in areas in the past of one country's economy is slowing down another one might pick up and this has gone on for many decades it 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 close to 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 the bretton 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 then the euro the way you know all of the activity we're seeing now compare i'm afraid what we're going to see is not really a break up or the euro which 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 low and so repairmen better able to sell exports but the moral situation just doesn't work i think there's going to have to be some sort of like you say a reconfiguring but i'm not sure that they'll be able to reach an agreement right now you mentioned a coal there and all to go and i want to pick up on not a little bent you know the history of energy usage over the years you know you had well oil which gave way to coal which gave way to. 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 the areas i think i hope back in the seventy's was 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 that bats the one that's going to really take us to the future maybe

a three inch writes or am back forty years ago and got all wrinkles worked out it used and instead of uranium maybe that would have worked but it destroyed it it's really getting to late in the game to find a new energy source and get it going can you give us a one minute breakdown on story and i just was reading about this recently. we had a point going back to the dawn of and you can the range of choosing. nucular substances and can you just give us a 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 doesn't pale by much larger quantities so it wouldn't be as much about problem for extraction from around the world and also when it's mine it doesn't cross on problems that the

uranium right so i'm assuming that the lobbyists for the iranian industry have their way and that's why we have uranium today. but let's wrap it up with you've got about a minute left your final thoughts on what happens when the debt bubble or and peak debt meets peak oil which is the moment 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 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 where you have downward spiral in all areas of the current to me it is driven by member to resources all right well

that's all the time we have thanks so much gallant for birds for being on the kaiser report thank you all right not going to do it for this edition of the kaiser report with me max kaiser and stacey herbert our thank my guest you can follow her on her website galley actuary now if you want to follow me on twitter i'm at twitter dot com forward slash max keiser stacy herbert you can follow her to. you using her name or you can also go to facebook dot com slash kaiser report to keep up on all the updates and we ask 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 at kaiser reported r t t v dot are you so next time this is nice guys are saying.

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