arrangement free. three stooges free. and free broadcast quality video for your media projects and free media to our t.v. dot com. live from moscow this is r.t. with the top stories now egypt's military rulers say they're sorry for the deaths there was forty demonstrators killed in the worst clashes since for bree's revolt we'll bring you live pictures the moment from tahrir square there in the center of cairo but people say they won't be dissuaded by a mere apology. arab foreign ministers are also in egypt but is syria that's on their agenda as they threaten further sanctions france proposes what he calls a humanitarian intervention. plus moscow stresses it's not going to stop the reset

of ties with the u.s. but will hold nuclear disarmament and deploy rockets on his borders if washington establishes its missile shield in europe. that's it for me today the news continues unless and noughties financial analyst max kaiser and his co-host as you heard it discussed the plight of taxpayers in the west being forced to stomach toxic debts in contrast to china where forces are given the death penalty stay with us for that report. this is the kaiser report in existence of pepper spray it should go like the way things are going on just spray some of the people's face say see her tell us more max of course you're referring to the police pepper spraying students at u.c. davis the occupiers there universe of california davis and the headlines on the

newspaper police suspended over pepper spray attacks that shocked us i thought it was a good parallel to what's going on in the global economy that we have these unelected officials imposed upon us and pepper spraying us with equally as they describe it here pepper spray is a toxic red liquid and said we have a toxic debts sprayed upon us and yet nobody is being fired or suspended over this yeah you're supposed to stay out of the red if you're running an economy you not supposed to spray redness or debt into the economy as we see happening down the eurozone with these elected bankers who go by the code name technocrat but that's just code for banks turner and they go in there with their aerosol of debt and they sprayed into these economies and of course it destabilizes these economies even more and it requires more austerity measures and it requires

a confiscation not only of wealth but of civil rights let's see how this pepper spray of debt works you might want to pepper spray me now while i'm reading it just to see if i'm able to tolerate the peanut. taxpayer to carry their risks for private mortgages. if you could see through the haze the perspiration the taxpayers to become the ultimate guarantor for hundreds of millions of pounds of mortgages as part of a radical strategy to boost britain's ailing housing industry so by taking some of the risk of lending the government hopes to green down deposits of up to twenty percent for first time buyers it was little spy percent and to kickstart demand for homes look if a tax prayer is the backstop of the guarantor maybe the taxpayer should elect

somebody to run the country that has their interests at heart and not the interest of the people who are putting together these false agglomerations of illegal debt and i'm saying if they're going to be the backstop of their guaranteeing the debt then should they have somebody in office who's who's there for their interest how can they allow for so in be parachuted in from a banker to serve the bankers interest to set it up so that when the bankers fail then the taxpayer the citizen has to be the backstop he's also helping developers out so housing developments the article says will also be able to bid for up to four hundred million pounds of government subsidies to spur work building on land which the developers already own but consider currently economical to develop isn't this what a market is maximum price discovery mechanism all that stuff right well the way to cure the housing problem in the u.k. is to let the market determine where the price should be that would stimulate demand so by cameron coming in and gifting developers with huge cash gifts to go

out there and manipulate the market is only going to a make the developers rich in an unhealthy way that we saw in ireland look at all the developers in ireland who walked away with billions of euros because they were crooked and corrupt same thing with the house developers in the u.k. they are pretty much across the board. the corrupt so the camera is going to give them a free gift just like the banks they won't actually use it to build housing and a sustainable way they'll use it to pay themselves huge bonuses and walk away and then five years from now cameron will be in the exact same position he was if you look at look what they have done with the rail system every five years the transportation system needs a bailout they give it to private contractors who steal the money five years later nothing's better and they give them another gift so now they're there using the same ridiculous methodology that bankrupt the country and it will apply it from the

transportation industry and then to try to down the housing industry because it will work so well in transportation and are going to try to housing and completely and systemically and institutionally totally corrupt the five that part of the economy corrupted by is that corrupt the sly and well but it also you know how democracy can work as a tyranny against everybody else because in the u.k. especially now you only need something like twenty three percent of the vote the popular vote and you come prime minister here he's helping out a select group of people who could even come up with a five percent because the average house prices in the u.k. are still two hundred thirty two thousand pounds which is like you could buy beverly hills for that absolutely they think the problem is not with the prices themselves as it would relate to a free market capitalist system they perceive the problem to be that the additional layers of an enormous ponzi scheme is missing that the government will supply because the private sector is too broke to provide that next layer of apologies

game this will result in further market this location to house prices will never find a point of equilibrium that would be equivalent to a free market system and cameron clearly is pandering to his constituency just try to stay in office because everything else he touches turns to complete the job he's got the reverse midas touch well listen to what another article on this. same story first time buyers could get government backed ninety five percent mortgages so listen to his arguments out goes free market capitalism the market should determine what the price is and listen to the airy fairy middle class or lovie class sort of targeted language it's not just about the economy it's also about people's hopes and dreams you always remember that moment if you've done it when you get that key and you walk into your first flat it's a magic moment it's

a moment i want everyone in this country to have not just better off people the dream of home ownership is something that should be achievable for everyone if you click that speech and you put it word for word and match it up against what jim jones told the folks and shortly before they drank the kool-aid it reads no for no exactly the same we're talking about cult leaders leading a homeownership colt's over the abyss into financial suicide let me explain something to you for a second capitalism without bankruptcy is like christianity without help i mean you've got to accept the total package if you're going to be a free marketeer you've got to accept the people go bankrupt that's the way you weed out the weaklings or go to call yourself copper list and go on the perpetual david cameron merry go round of free giveaways for the cook the crabs while stary measure for everybody else but we're supposed to feel good because somebody has got a speech that they stole from jim jones down there in the ok he announces this plan

just as this headline breaks property asking prices cut by most in four years how sellers have cut their asking prices by the largest amount for four years as the relentless flow of bad economic news damages confidence according to the latest figures from right move that's the way you clear an inventory you drop the price and then people can afford it because. just up the new market price of the new reality camera now about that for a turn of phrase down there at the dispatch box in the house of commons reality i know it's a freaky term that they didn't teach you at eton but maybe you should read up on it it's called reality and you obviously don't live anywhere near that neighborhood you live in cuckoo land where you can stimulate the economy it's pretty good for housing developers who are known just aston's no financial cooks. are out of your mind well average asking prices have dropped by seven thousand five hundred twenty

eight pounds or three point one percent from the previous month so that's a better way to help people get on the so-called housing ladder rather than take from from body else he's having to take from somebody else in the economy and as we cover it when we're in london he cut it from the poor and disabled so some paraplegic right now is being thrown out in the street so somebody who might vote who can vote is going to vote for david cameron instead right your point is well taken he's moving assets from one part of the economy to subsidize the housing industry which he has identified as key to growth in britain why because of that stupid cockamamie speech you just read me that is like playing the violins in the background about every fricken middle class idiotic british person wants to have a home is their castle and on the government i'm going to make it happen it's like george bush retread remember his speech the ownership society your ten years too

late that ship has sailed you can't just replay old george w. bush beaches and expect people to applaud as if you're saying something a original be truthful see sane and then remaining minutes we have here max i want to turn to this little bit of audio to show the nature of the people we're bailing out who are all suffering for and this is eric townsend he's an american investor. living in hong kong and he's talking to financial sense news hour about it counts that he had a commodities account where they started liquidating his account even though he was perfectly head and they sort of liquidating is account due to an obscure rule they say that was in this contract and it really makes me wonder you know is this designed to protect them in some way because every action they took increased risk to me and an increased risk to them or is it intended so that customers account can go out according to a complex set of rules because people can't possibly inform themselves about you

know what is the point of all this why does it work this way yeah like i've been saying i mean the the way the industry is not regulated is a lot of dead bodies are floating to the surface whether it's the n.f.l. of all scandal or other related scandals now this scandal the fact is that these brokerage and bankers they're simply taking money directly out of people's accounts as the global economy continues to suffer from the deal leveraging that's happening as a result of all the fraud to begin with and i think anyone who has money in any of these institutions be prepared to lose or well he's lost two hundred thousand dollars and he says he's never going back into a commodities brokerage again and he did ask why hasn't your junk or sign been arrested what is he doing walking around a free man so i want to turn to this final headline here max we keep on turning to where all the power is going and it's heading east china applies five finger death touch to another business fraudster so former president chen chang food of china

mobile telecom was sentenced to death on charges of taking bribes of over thirty six million remember which is around six million dollars and then max on november seventeenth his son was sentenced to ten years in prison for taking bribes of two million dollars now this is the killer sentence here in this case the son was sentenced for using his father's connections to support getting. new contracts for companies he was then paid dividends by the companies so just by using his own calder's connections now you think of david cameron's entire cabinet and all that they have behind him they have no work experience no credibility no intelligence or know how all they have is that they were part of the lucky sperm club if they were complying with china's standard of moral rectitude they would also all be five fingered to death. so you have to ask yourself why would you rather have your money and david cameron's jews shack vaporizing out the window because he's

a mink or china where people actually kill the malcontents sister or thanks so much for being on the kaiser report thank you now go away much more coming away stay right there. will be. more mouths to feed but where will the food come from consigns provide the answers to the future of food under the microscope. we've got the future covered.

in. the morning and like a bag of the guys report imax guys are time now to go to portland oregon it speak with gregory macdonald of gregor but you asked gregor is now also running for chris martin's as his letter gregor mcdonald welcome back to the kaiser report thanks so much for having me much good to see you all right gregg or what the warrant bank runs on political crazies in the many have missed that oil was back up over one hundred dollars how is oil at one hundred dollars a barrel and we are in the midst of a great global deflation in the near term i think that we may have just seen oil prices make their last heroic for the great relationship area that started in two thousand and knowing and clearly is probably finishing up now in two thousand and eleven even though i think that won't prices will probably we can from here i do think that whatever level they go down to will probably be much higher than what we

saw in the two thousand and nine financial crisis you know we've had no growth in crude oil supply for the sixth year now and really the way the world has has coped with that is by taking more and more to me and out of the developed nations of europe and the united states so that asia with its growth in demand could actually have some so you know we were flat max for the last six years all right so couple of points first of all i guess that is the definition of peak oil and number two what i mean it's moved over to asia it. and what in what capacity how does that work exactly all supplies no zero sum game. one hundred percent of the growth in asian to me has been composed of simply freeing up oil consumption from here in the west i mean for example if we look at petroleum consumption in the united states or

around peaks of two thousand and five two thousand and six at the top of the housing bubble when we were building lots of houses and people were buying pickup trucks and light vehicles oil demand here in the united states is down almost thirteen percent in that period and we're not recovering hard to man we remove a lot of discretionary demand obviously we have a lot of wasteful discretionary manta to move out and of course as our economy feels to recover maybe we're about to remove another trench and here in the united states not bragger i see a lot of activity in the u.s. with this fracking this you know they go into the geological crossed in may and they're attracted open and they release natural gas and it is this a meaningful amount of this supply to the energy mix overall it is a meaningful contribution to new supply and many of us have watched the growth of new title oil from places like the falken formation in north dakota for

a couple of years now once then a little bit comical however is to see the press in both london and new york talk about this new supply not in net terms however because the united states has seen an uptick in overall production of about eight to ten percent from its recent lows in two thousand and eight but that hasn't changed hello bill supply or aggregate global supply of oil so you know i think it's wonderful for the smaller independent oil and gas companies of the united states that production has come back to on. shore will certainly see higher production and higher profits but that doesn't mean that the united states on a net basis is going to go through a significant supply growth period over the next decade say out to two thousand and twenty now here's a a straight up of that economics question for you what's to occur for the us to

develop alternative energy oh aren't they continue inventing other countries like somalia yemen libya iraq sudan are supporting these kinds rays to get oil let's taper the current fall foreign policy or develop the technological alternative sources it's a fairly easy question i mean just to put that in context america built out its highway system after world war two one fourteen dollars oil we're now trying to run that system and repair that system and maintain that system on one hundred dollars oil is very an economical and from an energy standpoint it might even be an energy sink in other words the amount of resources first putting into that system maybe more than the amount of economic benefit to rationally getting back out of it and the problem is liquid energy max that's that's the real problem racing around the world trying to secure more new liquid energy resources as because an economic loser for the united states we would be much better off investing in the power grid

and plugging various sources not just solar and wind into that new power grid but also natural gas we do have a decent natural gas resources here and here in north america so you know your question's pretty easy to answer we're also considering the fact we don't even price in the cost of security you know the costs that we incurred to maintain our global military presence which if you look at a map of global military presence were dispersed throughout the world but the main concentration isn't of middle eastern europe or the resources so that's not a mistake right now or let's talk about. pan for a second chance and now is this training that warren buffett in the wake of the fukushima disaster and the more a bond markets over there is going to take a little field trip from omaha to tokyo looking for bargains is this a good idea of warren buffet's to go look for bargains in this area or is this economy because it's dependency on oil and the changes and macroeconomic really not

such a bargain of the fukushima disaster revealed. in is really running on what's known as a very tightly coupled energy system and tightly coupled systems tend to collapse when you break off just one little part of them and when the fukushima and other nuclear complexes went down you had tremendous strains on the rest of the japanese energy system and of course japan's manufacturing a lot of its goods through the electrical grid and through the importation of liquefied natural gas so japan i think has been a bit of a value trap or value oriented investors for two decades yes they do have productive capacity and a very high world class productive capacity but hand is not bringing any other advantage to the table in terms of energy inputs they're having to pay the

highest prices in the world for well equipped five natural gas in fact i was just looking at liquefied natural gas prices for japan they're between fifteen and seventeen dollars per million people see you and of course what how do we price the cost to the quality of life in japan of the fukushima disaster which is a offense that is going to have ripple damage over several decades so i think that warren buffett a very nice guy how does golden age and in particular you know distinct. era of global growth i think that warren has perhaps run out of ideas at this point it's not really warren's fault the world has changed we're in a phase transition with energy and i just don't think that warren's perspective is as valid as it seems right now are gregory mentioned this phrase tightly coupled

well i guess another analogy to this would be that just in time the supply chain management that's part of globalization everyone that's all hooked up and moving around in the transportation system and all the parts and assembly is all happening and linked together very tightly coupled i guess you could say about it what's your plan obviously being an island and whatnot you can see how they would be exposed to this tightly coupled economic backdrop what are some of the other countries that are similarly let's call risk you know let's call tightly coupled risk as as the world the leverage is as the world as globalization i think we have globalization as we have hit peak oil and and peak water so what are some of the couple the other countries that are rest of tightly coupled disintegration risk i think the other system that of course remains to cope with this of course the financial system

within the you know we see it actions and this principle united states europe while it's true that the united states has a fairly decent energy resources if you don't count oil i mean we were pretty well stocked with coal and with natural gas but europe looks particularly vulnerable and record and it's somewhat tragic or ironic and some sense because europe perhaps has done one of the better jobs over the last few decades of becoming energy efficient i know the words they have continue we. seen from the demand side their consumption of oil and it continually move towards natural gas and solar and wind but as you saw post two thousand and eight even europe took another leg down in its petroleum consumption losing another million barrels per day so one of the boehner

abilities that i see with europe is there isn't as much discretionary energy consumption to shed at this point and so anyway lower energy consumption is going to be correlated basically one with economic growth and of course this is a really tough spot but the developed world is in right now it needs to find some way to grow to service the debt and the barriers to growth are twofold one in the private sector remains way too high and too there just isn't an easy cheap energy resource coming along to rescue us and so you're in a very vulnerable type of threshold situation with what's occurred with teche in the developed world right so although europe has been cutting back on their consumption of oil the fact is that the oil industry out of the past twenty five years has had a reciprocal growth a raise been with the credit markets and those banks in europe are exposed to those

credit markets in a big way so even now they're cut back on oil the collapse in the credit markets is pressuring the banks anyway so they went through the exercise of cutting back really they finding out they're finding out that they're just as exposed to the global credit oil cycle regardless of whether they cut back that's correct we're sort of trapped alone as seen when you know that the image of the ceiling is very very useful here every time these western economies try to get their head of a ceiling and try to hook into some sort of industrial growth to get the. it cycle we started again and you get that service going and you know all the oil rises back up again because it's on current any sort of growth whether it's production growth for consumption growth as i said i think we've just seen the turning point and that site coal west texas intermediate crude oil came up very quickly in the last four

weeks because it finely was released from its landlocked status in the interior of the united states and it's making its way down to the gulf of mexico and so west texas intermediate crude is rejoining with brant which is the global grade of oil that the world has paying the price for brant in the last year so i think you know yes well prices have just briefly come up above one hundred dollars a barrel but i just don't think you know when the levels at which we're operating at our economies are going to be able to sustain that so i think it's probably time to see a weakening face of oil prices all right greg mcdonald right a time thanks again for being on the kaiser report thank you max all right that's going to do it for this edition of the kaiser report with me max kaiser and stacey herbert and with a my guest gregory macdonald if you want to send me an e-mail please do so at kaiser reported r t t v dot are you also follow me on twitter at kaiser report or

on facebook kaiser report as well and so next time just max guys are saying. in the interim. i'm.