you're looking at live pictures of thousands defiantly remaining on talkers square in egypt for a seventh day of protests egypt's military rulers say they are sorry for the deaths of almost forty demonstrators killed in the worst clashes since february is revolts public anger shows no sign of decreasing. arab foreign ministers are also in egypt but it's syria that's on their agenda as they threaten damascus with further sanctions and france proposes what it calls a humanitarian intervention. plus russia stresses it's not going to stop the reset of ties with the u.s. but real paltz nuclear disarmament and the flow rockets on its borders if

washington establishes its missile shield in europe i was seeking written legal guarantees that the shield will be directed against it but washington refuses to put its verbal assurances in writing. thank you for joining us top of the hour right now coming up next artie's kaiser report this time max cancer and his co-host stacy herbert discuss taxpayers and the last improper sprayed with toxic debts don't go away. max kaiser this is the kaiser report is this you know it's a pepper spray because you don't like the way things are going on just spray some of the people space station harbor tell us more max of course you're referring to the police pepper spraying students at u.c. davis the occupiers there university of california davis and the headlines on this

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 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're not supposed to spray redness or debt into the economy as we see happening now in the euro zone with these elected bankers who go by the code name type of pratt 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 if you stamp allies as 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 and you might want to pepper spray me now while i'm reading it just to see if i'm able to tolerate the pain that. taxpayer to carry their risks for private mortgages. if you could see through they haze of pepper spray 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 bring down deposits of up to twenty percent for first time buyers to his little spy percent and to kickstart demand for homes look if the tax prayer is the backstop and the guarantor maybe the taxpayer should elect somebody to run the country that has their interests at heart and not

the interests of the people who are putting together these false agglomerations of illegal debt i don't think 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 many parachuted in from a banker to serve the bankers interest to set it up so that when the bankers fail then the taxpayer the system 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 start work building on land which the developers already own but consider currently economical to develop isn't this what a market is not some 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 a developer's 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 being developed in the u.k. they are pretty much across the board. the corrupt so the camera is just 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 another they're using the same ridiculous methodology that's bankrupt the country and are going to apply it from the transportation industry and they going to try to ground the housing industry

because it all works so well in transportation they are going to try to housing and completely and systemically and institutionally totally corrupt the five that part of the economy corrupt if i use that corrupt to fly. well but it's also you know how democracy can work as a tyranny against everybody else because in the u.k. especially if 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 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 them subs 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

a ponzi scheme this will result in further market those location and 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 to try to stay in office because everything else he touches turns to a complete joke he's got the reverse midas touch well listen to well another article on this. story first time buyers could get government backed ninety five percent mortgages so listen to his arguments out goes free market capitalism that 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 when 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 he surely before they drank the kool-aid it reads note for note exactly the same we're talking about cult leaders leading a homeownership cult over the of business 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 who best the way you weed out the weaklings or don't call yourself copper list and go on the perpetual david cameron merry go round of free giveaways for the club to kratz all stary measure for everybody else but we're supposed to feel good because somebody has got a speech supposed all from jim jones down there in vienna ok he announces this plan just as this headline breaks property asking prices cut by most in

four years house 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't afford it because. is that the new market price the new reality hammered out about that for a turn of phrase down there at that this past box of the house of commons reality i know it's a freaky a term that they didn't teach you at eton but maybe you should read up on it gets cold reality and you obviously don't live anywhere near that neighborhood you live in it took the land where you can stimulate the economy it's free gift housing developers who are you know just awesome no financial crooks look bad are you out of your mind well average asking prices had 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 is that right your point is well taken he's moving assets from one part of the economy 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 are going to make it happen it's like george bush retread remember his speech the ownership society cameron ten years too late that ship has sailed you can't just replace old george w.

bush peaches and expect people to applaud as if you're saying something a original be truthful c. sing 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 who are bailing out who are all suffering for and this is eric townes and he's an american investor in. 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 hedged and they started liquidating is account due to an obscure rule they say that was in his contract it really makes me wonder you know who signed to protect them in some way because every actually took increased risk to meet an increased risk to them or is it intended so that their customers account can blow up according to a complex set of rules that the customer 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 way the industry is not regulated is a lot of dead bodies are floating to the surface whether it's the n.f.l. will scandal or other related scandals now this scandal the fact is that these brokerage and bankers there are 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 it 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 john core 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 a 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 and 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 pay dividends by the companies so just by using his own father's connections and you think of david cameron's entire cabinet and all that they have behind him they have no work experience no credibility you know intelligence or you 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 finger death. so you have to ask yourself why would you rather have your money and david cameron's shack vaporizing out the window because he's

a nincompoop or china where people actually kill the malcontents say sir thanks so much for being on the kaiser report thank you max i'll go away much more coming away so stay right there. in the. mission. critical three storage three. three. three stooges three. three broken video for your media project a free media john darche dot com. world . or in more mouths to feed but where will the food come from can science provide the answers to the future of food under the microscope. we've got the future covered.

like the back of the guy's report on max kaiser decide now to go to portland oregon and speak with gregory macdonald of gregor you asked gregor is now also running for chris martin says his letter gregor macdonald welcome back to the kaiser report but thanks so much for having me max good to see you all right dr laura with the war our bank runs on political crazies in the new many have missed that oil was back up over one hundred dollars how is all well and one hundred dollars a barrel when 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 that started in two

thousand and nine and clearly is probably finishing up you know in two thousand and eleven even though i think that low 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 a two thousand and nine financial crisis you know we've had no growth in crude oil supply four of the sixty or no and really the way the world has has coped with that is playing taking more and more demand out of the took that worked nations of europe and the united states so that asia with its growth in demand could actually have some oil 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 do you mean it's moved over to asia and what it what capacity how does that work exactly what the supply is no zero sum game. one hundred percent. the

growth in asia into may and has been composed of simply frame oil consumption from here in the west i mean for example if we look at petroleum consumption in the united states around peak so two thousand thought of 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 our demand we've removed a lot of discretionary demand obviously we have a lot of wasteful discretionary manta to move out and of course as are a lot of the fields to recover maybe we're about to remove another tranche of them and here in the united states now gregor i see a lot of activity in the u.s. with this fracking that this they go into the infrared geological crust and they and their i crack it open and they release natural gas and it's this is

a meaningful amount of new 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 iraq information in north dakota for a couple of years now once 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 one of those in two thousand and eight but that hasn't changed global supply 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 they'll certainly see higher production and higher profits but that doesn't.

i 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 about economics question for you what stripper for the us to develop alternative energy to continue inventing other countries like somalia yemen libya iraq sudan are supporting these kinds of ways to get oil what's tip or the current fall foreign policy or develop technological alternative sources and that'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 dollar oil we're now trying to run that system and repair that system and maintain that system on a hundred dollar oil it's 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 there we're actually getting back out of it and the problem is liquid energy and x.

that's that's the real problem racing around the world trying to secure a new liquid energy resources has become an economic loser for the united states we would be much better off investing in the power grid and plugging in 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 a lease nearby resources so that's not a mistake right now well let's talk about japan for a second chance and out with this training that warren buffett has in the wake of

the fukushima disaster. and the more bond markets over there is going to take a little field trip from omaha tokyo looking for bargains is a good idea of warren buffet's to go look for bargains in this area or is this the 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 for 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 liquefied natural gas in fact i was just looking at liquefied natural gas prices for japan they're between fifteen and seventeen dollars per million d.t. 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 ripple to image over several decades so i think that warren buffett very nice guy how does golden age in a 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 right now are gregory mentioned this phrase tightly coupled with i guess another analogy to this would be that just in time the supply chain management that's part of globalization everyone's all hooked up and moving around the transportation system and all the parts and assembly is all happening linked together very tightly coupled i guess you could say now with japan 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 it a risk you know of let's call it tightly coupled risk as as the world the leverage is as the world as globalization i think we have peak 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 rest i think the other system that of course remains. is of course the financial system within the o.e.c.d. ations and that's principal united states europe while it's true that the united states has fairly decent energy resources if you don't count oil i mean we were pretty well. stocked with coal and with with natural gas but europe looks securely vulnerable and regard and it's somewhat tragic or ironic and some sense because europe perhaps has done one of the better jobs over the last two decades of becoming energy efficient and other words they have continually weaned from the demand side their consumption of oil and of 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 and 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 any who lead lower in energy consumption is going to be correlated basically one with the economic growth and of course this is the really tough spot at the developed world is in right now it is to find some way to grow to service the debt and the barriers to growth are two thought one debt 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 debt in the

developed world right now 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 or raise it with their credit markets and those banks in europe are exposed to those credit markets in a big way so even now that 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 there. 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 below its ceiling you know that the image of a ceiling is very very useful here every time these western economies try to get their head of a ceiling and try to walk into some sort of industrial growth to get the credit cycle we started again and to get that service going to fuel oil rises back up

again because it's kind of current with any sort of growth whether it's production growth for consumption growth as i said next i think we've just seen the turning point and that cycle west texas intermediate crude came up very quickly in the last four weeks because it finely he 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 is paying the price for brant in the last year or so but i think you know yes well prices have just briefly come up above one hundred dollars a barrel but i just don't think given the levels at which we're operating that our economies are going to be able to sustain that so i think it's probably time to see a weakening phase and prices all right greg mcdonald are out of 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 our thank my guests 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 it's a nice time to smack sather saying high up. in rome.

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