welcome back this is our live from moscow here's a recap of all our top stories police grab giles announce a call for protesters across america fail to stop their spread as authorities leave demonstrators in the heart of the occupy movement out in the cold police have confiscated power generators and gas heaters from protesters camped out in new york as temperatures hit subzero. stern a warning from the arab league that's calling on syria to stop the bloodshed as dozens of civilian deaths are reported in fresh government crackdowns league syria committee is due for another round of crisis talks with different sides. and history repeating itself the man who built the biggest financial pyramid in russian history maybe practice all tricks after serving time for robbing millions of their savings all this time his sights are set on investors in ukraine. and next on our

t.v. cars a report with the lowdown on the week's big money stories even . this is the kaiser report let's talk about joni blair. and his sort of other psychopaths. 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 warts come everybody's taking this as the max keiser

what's that's asked is that now that we're on three times the way it 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 bad reputation world this is all there is we are here we are told where to go go go on the plane stay the lobby watch the show tell your kids to go play another thing 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 kaiser wart and one of the original meanings of the word warts 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. 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 funny thing that they've created 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 thought of these 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 securities that goldman sachs and j.p. morgan tried to sell to a pension fund is it has a say in bold images right up front i can't believe you morons are buying this toxic waste well in postmodernist are seeing the value of art is determined exclusively by art enabled propaganda and you know as the transition from representational art to abstract art to post abstract to pose that it 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 and he warhols campbell soup cans where he turned something common a soup can into a fetishistic object that had to be bought at any price enter banksy who rightly

call on the kaiser report as being completely in tune with the current design of khowst post post information age where art value is determined by the collective unconscious wingeing 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. bernanke in the soup line and we can only hope that his fate is the same as well market offerings remember it's either banksy or its 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 maybe of any central banker or too big to fail banker guess who's 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 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 us 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 they're leveraged if they're at fifty three to one right so an asset value collapse of less than two percent means that the entire federal reserve is bankrupt now here's the thing about a safety record is that if we listen to the propagandists see n.b.c. or c.n.n. in the united states or erin burnett for example she had a video out there castigating some poor 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 it seems 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 and bonus because the. it's all about perception not about actual value speaking of perception and not actual value look at smart the american population is they sense this the hill poll voters say us is in decline or resound ing 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 out of 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 faith 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 leisure preserving your own wealth well the theme of the show is i can't believe you morons buy this a leap now we're saying here is the only the g twenty guys only to start closing 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 price discovery in 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 the my. 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 e 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 iraqi invasion iraq invasion and invasion a war without any intent to pay for it via taxes the first war to be financed by a just inflation i.e. stealing from the population the iraq war has caused rapid inflation and we see this down the cost of getting that barrel of oil out of the ground processing it the absolute absolute price of 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 flown 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 an unmarked grave in the dead. and 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 essential 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 socialists or any company on

this why we're going to put on all the leadership in this country tony blair just entered because nobody is safe now 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 body 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 a calling for a new global economic authority an essential world bank to be run by the un under which tony blair now enrich is himself around the world i mean to think that the pope is coming out and saying the vatican or the real world bank because everything that's caused millions to die is centralization of financial authority in too big

to fail institutions so here you have the vatican saying let's create an even bigger too big to fail situation to create more murder more cessna nations more war the sky is completely inconsistent with anything that philosophically or theologically speaking that he says he represents if this is no connection and see a b. c. max here says it should be music 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 vatican occupied vatican it's a global insurrection against banker occupation we're not saying who cares if they cannot make downturn this is economic collapse caused by financial fraud on checked 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 its growth is a just b. c it's a corrupt very big bank and i think he he was concerned about stephen schwarzman like blankfein getting in on this god game trying to grab goldman sachs and and all these present look like i said he's doing god's work yeah like oh wait a minute i got the big hat. all right thanks so much for being on the kaiser report thank you max we'll go away much more coming away so stay right there.

you go. faster welcome back to the kaiser report time now go to atlanta georgia speak with yell. gallo's an actuary who writes our finite world dot com and you can also follow her on twitter at. twitter dot com forward slash gal the actuary get all the actuary welcome to the kaiser report ok q all right tell our card to look at pedia an actuary is a core business professional who deals with the financial impact of risk and uncertainty so the question is was risking uncertainty in mind and tell us about your latest article on the united states as debt bubble and risk pose for the america and the whole world at this time well i think the debt problem contributes

to g.d.p. growth as it goes up but then as you start reaching limits in wild supply or whatever kind of either finite resources that we run into limits then your debt bubble starts be flayed ing 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 is or has oil supported the pet bottle in america well i think. 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 to nine hundred seventy then we started importing more oil using oil from around the world and he oil that we got from elsewhere we're sorta but not

quite as well as the oil we had ourselves and our road growth rate slowed down and after the one nine hundred seventy nine hundred eighty period and so we've been any lower cheapie growth rate but the fact that we had royal in there helping us keep the growth rate up has helped us to maintain our debt growth which has resulted in a combined high. three right now also only the g.d.p. has been 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 with this enable this

debt bubble perhaps to resume growing and maybe it's just the way the u.s. will see its way back to growth where i don't see the terrier croce really has worked very well on the paris three he had all kinds of military interventions in your prayer and even now oil production in iraq is just barely growing how to oil exports aren't going up at all because they don't have the export cassady even if they do have increased oil production there is no direct translation of our military efforts to hire or 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 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 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 possible the reserve bank is however trying to. restart inflation by putting as much money into circulation as the possibly can over there of the fed is the deflationary debt implosion going to continue at this pace in your view. still we end up adding one nine hundred thirty six stop. depression. worse than we are now or will there be any intervening force to counteract it well i think we probably will head to word something that looks like a one nine hundred thirty style depression are 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 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. are associated with their sale and so there's going to be 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 affected more by the time the prices you have are gay 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 pulled 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 are describing it but from the point of view of the ordinary person who may be making not a whole lot about 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 to why you haven't seen inflation in the u.s. despite all the money printing is because of the asset 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 deflation and china of course sucks up all the cash and they're hoarding it more or less in the got trillions of dollars of the reserves they're not research elating 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 us being able to grow its economy again. how is that going to play out your

view gail going forward but i think there's another aspect to the chinese economy too and daddy is there 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 sure building here grow on arms 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 debt as well but what's happening is that its customer base is slowing down in the price of its coal it's by rising the price of well the 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

it's head in the past and it may stare hitting a recessionary impacts and swelling not to ok well what used what you're describing here is if in the past if one country's economy is slowing down another one might pick up and this is gone on for many decades as part of the global scenario economics for quite some time but now if china starts to slow down in a meaningful way it we're talking about a global depression so a 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 the brant woods agreement having to reconfigure the global currency markets you see anything like that developing yeah i think that there's going to be some major upsets in the currency market i think that the euro the way you know all of the activity we're seeing over bear i'm afraid we're going to see isn't really

a break here are some of the. countries leaving the euro or the euro just falling apart all together you know there's kind of a race towards the problem everybody wants to have their currency the lowest some good parent better able to sell exports but the horror situation just doesn't work i think there's going to have to be some sort of like you say reconfiguring but i know i 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 well oil which gave way to coal which gave way to the oil 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 that bats the run that's going to really take us to the future maybe if we had tried story in back forty years ago and got all the wrinkles worked out and used an unsteady radium maybe that would have worked but at this point 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 thore and i just was reading about this recently we had a point going back at the dawn of the nuclear age of choosing. nucular substances and can you just give us that one minute summary of that story well story of is in some sense similar to your anian 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 in russian larger. so it wouldn't be as much about problem for extraction

from around the world and also when it's right it doesn't cause all the problems that the uranium is right so i'm assuming that the lobbyists for the iranian industry had their way and that's why we had to rein him today. but let's wrap it up if you've got about a minute left your final thoughts on what happens when the debt bubble or peak debt meets teac 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 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 where you have a downward spiral in all areas of the current any instrument by member

to resources all right well that's all the time we have thanks so much gallant herbert 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 stacy herbert i will thank my guests gelt for virgie can follow her at her website the 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 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 they can do so kaiser report it r t t v dot are you go next time this is nice guys are saying by our. enemy.

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