so you're watching our t.v. headlines now redefining the boundaries of journalism whistleblower extraordinary song starts cracking new show on missing to shine a light on the light touched by the. syrian opposition shows its multiple faces as anti regime rallies see every new vigor of the gunfire not necessarily for finding mission slogans for change. you're supporting stressed positions i'm thinking of gratian a secret memo shows the u.s. was born against teams in cruel interrogation techniques branding and war crimes.

but next max and stacey discuss how wall street is trying to float even more debt but it's revealed in the cause reports. the report so. even on the lights are out because it will be glowing. stacie max we're going to go to japan for the show to talk kamikaze finance fukushima to burn highly radioactive debris fukushima will start burning radioactive debris containing up to one hundred

thousand becher rolls of radioactive c.c.m. per kilogram burning radioactive debris does not destroy the radioactivity it merely spreads it arnie gundersen a well known man in the nuclear technology sector says that radioactivity from the burnt degree will end up not only in neighboring prefectures but in hawaii british columbia oregon washington and california gunderson said that burning radioactive debris is basically recreating the fukushima disaster all over again as it is releasing a huge amount of radioactivity which had settled on the ground back in spain air but it's exactly like repackaging a security that obligation you're not actually creating a new security you're just adding risk to the existing pool securities that's what wall street does now japan who can shima tepco they've taken that obvious lesson from wall street they're going to burn the already radioactive debris and to create another trauma of radioactive aerosol degree they can blow around the world across

the pacific into los angeles yeah i think of it as kind of their monetary policy because all of this crazy zero interest rate policy the so-called quantitative easing actually started in japan twenty something years ago in the beginning of their last decade which is now decades so look at this next thing they're also doing with this radioactive debris in addition to burning the radioactive debris japan intends to build tents over the leaking fukushima reactors well this sounds like a way to contain the radiation it would actually funnel it straight up and spread it globally so how is this not like the funnel the holes that they use at the central bank well they're going to. energy you know goes back to quantum theory and the high isn't berg uncertainty principle and albert einstein and this is the same methodology that people use of finances as well they believe that risk and reward

can occupy the same place at the same time perpetually and you can keep selling securities based on the same collateral indefinitely the same way that nuclear energy reactors have this idea that all the energy has to meter to too cheap to meter that the regular fallout can simply be funneled up the chimney into the stratosphere blown around to countries around the world and somehow that's not going to affect that distribution of nuclear fallout it's the same thing with going into risk if you're going to risk has an extra knowledge of the way wall street and city of london in these banks do gross us and they spread the risk around which ends up with austerity measures in greece spain italy around the world around america u.k. there's japan with a similar theory that you can take particle physics and create energy that is too cheap to meter and then when it blows up you spread the risk around the entire world and people are born with five heads but of course in wall street in america

they be considered oh those are five x. for consumers that's good for the economy well you mentioned the risk and this is kind of what they appear to be doing is applying lloyd blankfein how he applies risk to a collateralized debt obligation for example if he takes all the toxic bits and spreads it into everybody's everybody's previously high quality chicle a product so this seems to be the way that they're viewing this is like let's just spread the radiation all over the world and that will mitigate the risk of this toxic life in danger and sort of radiation well any attempt to reform the system is classified as socialism and redistribution of wealth but this is completely false that we understand the relation. between nuclear energy and nuclear financed it's not about redistributing wealth it's about redistributing risk because the risk quotient of both the nuclear energy policies and the wall street practices are such

that it own reasonably current and very the highest levels of risk in two pockets of society that are least capable to deal with it and the result is huge social dislocation whether it's people being murdered florida or people being starving in athens it's because of this theory that you can take all the risk and give it to the least able to do with it keep all the reward and you call yourself a job creator well i did compare it to the n. carry trade so let's look at bank of japan policy regarding the yen yang carry trade makes comeback so this is an article from the end of march that got overlooked but spiking us bond yields and super loose japanese monetary policy reviving the yen carry trade which could spell more weakness in the currency after its biggest two months jump in three years the n was last in vogue as a cheap global funding vehicle for buying higher yielding assets in two thousand

and five and two thousand and eight before the global financial crisis sent investors fleeing to the exits or max did it actually help precipitate since the global financial crisis it precipitated the global financial crisis it's a suicide called the bank of japan i mean here's a story a mount fuji beauty spot where one hundred bodies are found every year from people committing suicide they think that by and ruin their currency by self inflicting wounds into their own currency. who who who who. somehow this is a noble momentary calls the result this is throwing the entire global economy under the bus somebody needs to stage an intervention and. policymakers they are suicidal whole works it's a suicide monetary policy for sure but it encourages wild speculation and the problem in our economy is not that there's a lack of speculation is

a lack of work and creating wealth this is from which to use as collateral genuine collateral for that speculation fluidly right spot on well you talk about these kamikaze economics in japan i want to turn to another story because your story there reminded me of this this is a headline from two thousand and nine and it's a set up for a more recent one blowfish testicles poison seven japanese restaurant police questioned shelf after own licensed restaurant serves of deadly delicacy shortly after the customers ate this they developed limb paralysis from breathing trouble and started to lose consciousness typical signs of blowfish poisoning and were rushed to hospital for treatment. similar to typical sign of a customer of goldman sachs or to be morgan we now know from testimony yeah we've seen what jefferson county alabama they had sewage paralysis the whole town started

to choke and breathe and suffer a heart attack well blowfish poison called tetrode go toxin is nearly one hundred times more poisonous than potassium cyanide according to the ishikawa health service association eating it can cause death within an hour and a half so why do i vary up the story the problem is that tokyo chefs swell with anger over new blowfish laws so previously max you had to go to school for two years to know just how to carve up this blowfish to remove the toxins because there aren't many of the organs of this fish. without killing your customer you're a ms not to kill the customer but now the government has unlicensed it so anybody can serve it and heroin nobody. the official at the city's food control department said the reason for his regulating it outside of tokyo the regulations for blowfish are even more relaxed and yet there are hardly any poison related accidents there is the hope that the number of restaurants with unlicensed chefs serving blowfish

will rise and that blowfish as an ingredient will be used not only for traditional japanese foods but also others such as chinese and western food well this is the story of countrywide credit isn't angelo mozilla was given the right to do so prime mortgages even though i think before that he was a plumber some non star hotel shuffling you know all day long and they give him the right to do countrywide credit backs the prime mortgage collateralized not something or nothing bonds that of course a result again or again on wall street to create this enormous global ponzi scheme that requires many trillions of i guess you could call it the japanese think i'm here to all book on the from ben bernanke and the other side of bankers well i like this that you could apply it to western food so you might also just drop dead in an hour and a half rather than what lifetime it takes to die from pink slime and the bankers have a paper of on your life insurance so that when you kill yourself ultimately like

this but if people do they'll get the death penalty death benefit so a lot of this kamikaze economics and monetary policy that the japanese started and is now all across the world. jamie dimon and lloyd blankfein as we've said to sell credit derivatives that are much like the fukushima policy of spreading radiation around the world we saw that the glow fish are the same thing that is in a lot of the food products of americans but it just is a more slow death it's like a drip drip drip of death and a lot of it comes back to that massive savings pool of the japanese pensioner japan's giant pension fund unlikely to see j g b yield surge japan's one for. three trillion government pension investment fund the world's biggest public pension said yields on japanese government bonds are unlikely to surge for a while as there is plenty of demand from cash rich domestic banks the g.p.i. f.

invests reserves of national and corporate pension plans if allocates about two thirds of its assets to japanese government bonds where the yield on benchmark ten year bonds is languishing below one percent geriatrics are risk averse because all the relative have done for me to think of blowfish burgers but don't know they're the ones they're the famous mrs watson alvi you know women live a lot longer than men they have a lot of this cash that the two thirds of it sitting out one percent less than one percent in japanese government bonds where they're basically forced to finance their government bonds now their savings is running a very dangerously low it's less than two percent it's lower than american savings rates and x. so they're going to have to go outside of japan soon and all they have is fukushima blowfish stuff like that that they're saying buy or pot. wife serves are generally done in a. home or you can have a life mouse or. slicing up all those fraudulent manipulated trades and loan them

sort of the more collateral more of are you know belly button lint so however talk a hero tani the chairman of the government pension investment fund says everything is going to be fine yields are going up even though by the way he should want yields to go up for his clients but he's like oh he's pushing the government side that is going to be great where we're never going to have a problem interest rates are going to surge unless high oil prices and tensions between iran and israel could be a risk for j g b s their whole energy policy their all their energy is off line on one nuclear power plant operating they could have blackouts they said this summer when during peak demand so their industrial production is going down so these are all the unless like it might all be it's all going to be fine he's saying it's all going to be fine unless all these things happen i must oil goes up unless iran problems get worse unless we have blackouts in the summer unless unless. it's

happening somewhere out there as a blowfish that will be the trigger to set off the avalanche of the global financial catastrophe points while space ever thanks so much for being on the kaiser report thank you don't go away with or coming away stay right there are. secret lovers sure. to believe the most sophisticated robot which goes into the doing anything mission to teach creation why you should care about humans. this is why you should care only on the orgy dot com.

welcome back to the kaiser report imax guys are time now to go to connecticut to talk with peter schiff radio dot com peter is the author of crash proof and c.e.o. of your capital peter schiff welcome back to the kaiser report thanks max for how beyond yes ok so a couple points peter schiff number one ben bernanke the fed chairman recently released a lecture series about why gold was not a good choice for a reserve currency it never has been never will be and he's been very stridently pushing this out there gold is never going to be used as a reserve currency second of all swift which is the global exchange for money that people use to move money around globally as unilaterally decided to cut iran out of their. business which effectively cuts the red out of the global access

to international money transfers and some are arguing that this in fact would put more pressure on gold to be considered a reserve currency your thoughts were first of all on ben bernanke as usual the fed chairman is completely wrong he doesn't understand money he doesn't understand gold he doesn't understand history of money you know the thing about bird akki is he doesn't even understand recent history he doesn't understand the history that he just lived through ben bernanke he basically said that the fed's monetary policy played no role in the creation of the housing bubble according to ben bernanke interest rates and home prices are completely unrelated he thinks that it was a pure coincidence that we had this cheap money under his predecessor and a housing bubble that they just happened to happen at the same time and there was no causal relationship between the one percent interest rates the artificially low

rates and that housing bubble in fact ben bernanke even went further to absolve freddie and fannie of all responsibility ben bernanke he thinks the financial crisis the real estate bubble was simply the result of malfeasance on wall street and the only fault he has in the fed was that they didn't regulate wall street into banks enough so ben bernanke he is completely clueless and i believe that ben bernanke he is putting a dollar on a collision course with disaster he is going to put print the currency into oblivion you know which is why people need to be on a gold standard people need to save gold you can't trust the central bankers they will keep on printing money they will keep interest rates down they are clueless about what would drive really konami growth and so they're going to continue to destroy the currency so if you know of your look at a gas prices or food prices if you're planning on buying these things with paper you're going to need a lot of it because the price is going to go way up but if you want to preserve your purchasing power if you actually want to. see

a reduction in your cost of living the way to achieve that is to save gold and not feel a currency and on the subject of thrift and the fact that iran was thrown off. brings up this idea that gold is used that will be used as a reserve currency a lot of the gold is a reserve currency gold is a reserve gold as an asset currencies need to be backed by something so you can just back one currency with another currency currency needs to be backed by something real to give it value so goal is better than a currency is actual money it has intrinsic value and it works much better as a reserve asset than some other piece of paper that intrinsically is just as worthless as what it supposedly backing up but i think as we continue on this you know collision course as kamikaze monetary policy countries around the world that are holding dollars as reserves are going to be under a lot of pressure to replace those rapidly depreciating dollars with something real

like gold and i think the foreign central banks are going to be moving towards a gold reserve system and they need something when this the dollar falls apart a lot of foreign countries are going to need to have something behind their currency can try to show that it's different because with the dollar collapses you know what prevents the yen from collapsing or the euro or any of the other currencies and so what the central banks are going to have to point to is their gold reserves as something that would differentiate their currencies maybe from the dollar some way to convince their citizens that their currency is sound and that they don't have to get rid of it that they can hold onto it because its value is going to be maintained and is going to be backed up by something real ok so peter said and i thought about this japan situation they are suffering catastrophic losses in the energy sector they're down to zero nuclear reactors are one not working so well and of course this is. forcing him to import energy which is

creating a trade deficit and you know this is then leading to the policy makers thinking that currency devaluation is an order as much as forty percent well that devaluation is only going to make the trade deficit worse was driving the trade deficit now is not that their exports are way down but the cost of imports is way up and in a week in the end it's only going to make imports more expensive and in fact after that earthquake happened and the japanese interfered and they had massive printing and intervention to stop the end from rising i said that was the stupidest thing that they could do i pointed to the fact that japan was going to need to import a lot of raw materials and a strong yen would reduce the cost of those imports and would help the japanese economy what i said back then was by deliberately weakening the yen they were going to make it more expensive to rebuild and that is exactly what happened and the i

read it is now that they're there trade balances turn negative they think of dissolution it is to debase their currency even more the more they print in yen the higher the cost of their imports are going to be the real solution for japan is to let the dollar sink to let the yen rise and that will bring down the cost of all the raw materials that they need to import and that would help the japanese economy and japanese consumers to pant has as people understand i think it's debt problem and this is been funded with their savings but now the savings rate is running out the savings is almost it's less than america it's getting very low and this is causing. the japanese to go on foreign markets to look for funding to rollover their debts but if the foreign markets believe that the economy is as bad as it looks of course they're going to it's going to be virtually impossible to fund well

the problem that you're. when japanese government bonds is because they are creating so much yen to try to keep the yen from rising against the dollar pretty soon there's going to be a real inflation problem in japan as far as the cost of living and you're going to start to see inflation in a significant way rearing its ugly head in japan and now it's going to be different so now they're not going to have the benefit of deflation and the ability to keep interest rates so low rates are going to have to rise in the face of inflation let's see if it what if the japanese see three or four or five percent or six percent inflation the central bank has to raise interest rates and that's when you see this big collapse in the japanese government bond market and then what is the japanese government going to do because the cost of servicing its enormous debt is going to rise of course the recipients of those payments also live in japan so they don't have the national income problem that we're going to have when our rates rise

but still it's going to have some structural problems within japan as far as where is the government going to get the revenue to meet those higher payments is it going to raise taxes or is it going to cut spending and how and how is that going to impact japan but i think if the japanese central bank this sides that well you know we're not going to do that we're going to try to keep interest rates artificially low the way the fed is even though inflation is rising then yes they would risk a big drop in the value of the yen and runaway inflation in japan right but central planners the bank of japan or anywhere in the world of course. they're not going to buy into this idea of raising rates even though it might need to make the most sense they're going to want to lower rates with the idea that it's going to boost exports but it's not going to boost their exports it's going to make their imports a lot more expensive at a time where they need those imports and if they start to really. crease the cost

of capital in japan and that's not going to make it better for japanese exporters and of course a lot of japanese companies now they import components too from other places they have factories all around the world and at the end declines in value is going to dramatically increase the cost of bringing in those are for aliyev foreign produced the components so it is not a panacea in fact i think the biggest problem in japan the reason they have they have these debts in the first place is because japan has been committed to a policy of propping up the u.s. dollar and the irony is china has basically been following in japan's example without understanding how much japan suffers because they decided to do that you have a lot all these countries that are trying to get their economies around selling stuff to americans without any regard to the fact that we're too broke to afford any of it and so you have this giant global vendor financing scheme that's about to blow

up all right so let's talk about the dollar spent pumped up. and economies are showing some relative strength euro dollar there so walk us through the dollar story well i think the dollar has shown remarkably little strength in the face of all the european problems had we had this euro crisis four five six years ago you would have seen real strength of the dollar i mean you would see the euro well below parity with the dollar instead the euro right now is around one thirty three it's a relatively strong gain in comparison to where it's been historically it's not at a record high but i think the failure of the dollar to gain any real traction even given the crisis in europe shows just how weak the dollar really is i think what the dollar has found some support from the false narrative that the u.s. economy is actually improving that's the you know that the stimulus is working.

being that we're finally getting growth that we're creating jobs that we've turned a corner you know that we've seen the light at the end of the tunnel you know pretty soon people are going to realize that that's not a light it's the proverbial on coming train the u.s. economy is not getting better at all in fact it's sicker than ever before and all the fed can do is keep interest rates at zero indefinitely pretend there's no inflation even as it's about your rage out of control and trying to justify keeping the economy on life support which is what it's doing but it's supporting a monster the biggest problem in the u.s. economy is that rates are too low interest rates are too low we're never going to have a real recovery intil interest rates rise but of course when interest rates rise we're going to have some short term problems that result from the enormity of our debts our banks are going to suffer the federal government's going to suffer because it can't pay its bills the housing market is going to suffer we're going to have a short term contraction a lot of pain as we try to move from

a bubble economy to a real economy but for political reasons the fed doesn't want that so the fed is resisting the curer by making the disease worse and eventually we're going to have to suffer that much more when interest rates eventually spike because they will and the longer the fed keeps interest rates artificially low the more damage we do to the economy and higher in the higher than interest rates are ultimately going to have to rise and if the fed decides that it's never going to let rates rise well then we're going to wipe out the dollar completely the dollar will have no value at all and we will have hyperinflation that is the worst case scenario i hope we avoid that but the only way to avoid that means we're going to have to slam on the grapes and sock it to be you know a soft landing it's going to be a very substantial impact ok pierce if are out of time thanks so much for being on the kaiser report ok not going to do it for this edition of the kaiser report with me max keiser and stacy herbert on with i guess peter schiff of euro pacific capital and i mean email please do so and kaiser report on r t t. are you well i

thought my father brought up the book. the world the. science technology and innovation of all the elements from around russia we've got the future covered.