marty question more. wealthy british soil done. time to write. down. market why not. find out what's really happening to the global economy with mike stronger for a no holds barred look at the global financial headlines tune into cars a report on.

max kaiser this is the kaiser report you know more and more of the global economy relies on magical thinking all of the models of failed all the policies of failed and now we've got magical thinking stacey tell us more about this max it's magic eight ball economics ruling the world and i thought this first headline here would very much interest to you an investment fund that makes trades based on superstitious beliefs the superstitious fund project is an investment fund that is run by a superstitious autonomous algorithm as a one year experiment at operates and trades purely on superstitious beliefs buying

or selling on numerology and in accordance. two lunar phases for example it has the fear of the number thirteen and a full moon and also develops its own lucky and unlucky values just as we do all the time we are hard wired to imagine patterns that give us the illusion of control right so this is a computer program to artificial intelligence basically to go in there make trades based on superstition now what's significant about this is that you've got of course artificial intelligence but this is now the example of artificial superstition. this is part of going backwards to medieval days under medieval ism superstition ruled pre-enlightenment also pre-enlightenment medieval justice system ruled and also the lord and serve relationship rule and as disclosure economy goes back to medieval days back to lord and serve back to create enlightenment it would

make sense that you'd have artificial superstition running a portfolio of stocks to take advantage of going backwards into medieval days as the prevailing model ruling global political and economic forces yet i mean this is an experiment it's only five thousand pounds investing in the footsie bread betting so however i think it will be interesting result to see how our magical thinking our beliefs are superstitions do impact the economy in the financial system whether it's we have magical faith and belief in the power of the central banks to save us that we have magical beliefs that banks know what they're talking about when they give you an analysis of a various companies or sectors magical belief pre-enlightenment was the established common wisdom the accepted wisdom and then guys like dennis de to row showed up and created something called the encyclopedia and it put all that knowledge into the hands of the common person and this was the first chink in the armor that was the

establishment church in europe that that monopolized all of the information monopolized all the wealth and put forward this model of lord and serve now they want to go back to that using artificial superstition intelligence bots to go in there and train based on this emergence of a new search clouseau global peasant class that they can then again more money into their own pockets because they want to get rid of all common intelligence sources but they don't even need to set up this experiment they could just look at the main headlines at the big banks and that the mainstream economists. yes because check out this headline max city see is ninety percent chance of greece leaving the euro the chances of greece leaving the euro next twelve to eighteen months have risen to about ninety percent u.s. bank city said in a report on thursday city economists had previously put the chances of a greek exit at fifty to seventy five percent but they use a magic eight ball anyone who works on wall street know that any of the analysis

that comes out of these banks is flawed it's corrupt or it's rigged ninety percent of all the institutional research published and free single year is dead wrong as is this completely and utterly dead wrong they use this research as a way to circulate broad money because people buy the research in exchange for trading that's done for cash that's a research for cash scandal which as yet to fully surface of all the scandals that even though we've seen many there are many more yet to fully surface there is either a zero percent or a one hundred percent chance that greece is going to leave the euro there's no seventy five and now it's fifty percent and now it's ninety percent they're just making up numbers telling some clients and the clients they buy cell by cell based on these numbers that they just pull out magically from thin air what they want but those numbers they pull magically into thin air are the collateral that backs

derivatives the derivatives that we know definitively are backed by magical thinking they themselves are algorithmic bots that are referencing each other and now it's going to be informed by magical thinking magical thinking informs a lot more rate magical thinking informs the nielsen rating system we now know is completely rigged so the rig market is part of the trifecta of fraud media wall street and washington they're all rigged they're rigged together and now another magical headline this time from a chief economist a dose of inflation could start to look like a cure for our current ills this is an editorial from roger boot. of capital economics and he says a serious policy of trying to reduce the debt burden through inflation lies as an option in the future interestingly a list of the economists who have supported it reads like a roll call of the top names and global macro economics what the protagonists have in mind is that the government would raise this inflation target say to four percent to five percent and the bank would then be obliged to launch

a massive program of quantitative easing to increase inflation they've been trying to increase inflation for five years six they could increase the inflation target to one hundred percent the g.d.p. of the globe could go from fifty trillion to one hundred trillion but it would still be deflation as opposed to the seven hundred trillion in debt and derivatives that are off balance sheet or partially on balance sheet they can increase inflation by three hundred percent by four hundred percent it's still not going to overcome the deflationary forces of this on winding derivatives mess that was hit the iceberg back in two thousand and seven they would love inflation they would love to try to create inflation but they're incapable of doing so because no amount of money predict they would literally have to print four hundred to five hundred trillion dollars in new fee out money to inflate the debt away now that's

probably not going to happen and as a result the fee out currency system continues to unwind and we're still on the suicide watch for b.n.p. society general h.s.b.c. barclays citibank wells fargo bank of america they're all on suicide watch it's only a matter of days or weeks before another major catastrophe hits major catastrophe there's always the man behind the curtain and it's important for all these magical beliefs and magic thinking that you don't understand who the powers that be are. our headline reads four percent of americans think jamie diamond is prepping his bike to jump the five hundred twenty six feet between the top of j.p. morgan headquarters and the roof of the old bear stearns building in spite of j.p. morgan chase's well publicized loss of more than five billion dollars just fourteen percent of americans polled correctly identified c.e.o. jamie dimon as a new york banker sixty six percent said they don't know who he is while four

percent believe he's a daredevil motorcycle. for those likes us i mean a lot of people ask me gino you attack jamie diamond so. aren't you afraid that his goons are going to attack you and the answer is no because sixty six percent of americans have never heard of jamie diamond and ninety percent only have a vague idea of who jamie dimon is if in fact sixty six percent of americans do explicitly who jamie diamond was in the crimes that he committed a daily basis to disenfranchise ninety eight percent of all americans then yeah you could say well having made that happen i might be a risk of being beat up by jamie's good but as long as america engages in cognitive dissonance and as long as it pertains is a magical thinking is going to somehow save them from the ravages of the deflationary global derivative unwind that is pulling unmercifully daily then we're safe you know during the previous great depression people knew who al capone was

and here nobody even knows who jamie diamond is the difference of course between al capone and jamie diamond is that jamie diamond sells the american dream with one hand and the other hand he's just paying you off so you see this sort of misdirection and this headline h.s.b.c. to set aside six hundred million pounds to cover misselling and money laundering scandals h.s.b.c. is set to make a new provision for payment protection insurance misselling of as much as three hundred million pounds as well as putting aside about two hundred million pounds to compensate small business customers missile complex interest rate derivatives. and they're also likely to make an initial two hundred million dollars provision against costs related to failings and its u.s. business in relation to money laundering you know just it's just it was a little failing it wasn't a crime but misselling you know another euphemism for theft you know if i'm trying to sell a guy who runs a liquor store on the idea of giving me all of his money and i use a bottle cracked over

a skull and i crack open his skull and then i steal all of his money my defense will i go from the judge will be i mis sold the concept of him giving me his money it's of misselling problem i mis sold him on the idea and this is exactly what i just been saying they're involved in money laundering for terrorists nine eleven terrorists got their money directly from h.s.b.c. we now know it their defenses well we missed all of them on the idea that they shouldn't take the money get planes and kill a bunch of people in twin towers it's a misselling problem you know they are involved in a lot of money for drug cartels mexican drug cartels who live in the soul of them on the idea that the taking for five hundred billion dollars a drug cartel money and watching it through our bank it was actually misselling problem where we just got to be a little bit of a fine sorry mess you know we will look that up again except of course we will but these magic tricks can only happen with the participation of the audience and as you see here these small businesses were sold credit default swaps and credit you know interest rate swaps on the belief that bankers have this magical ability to

remove all risk from capitalism for you but you know people want something for nothing and when so much from h.s.b.c. shows up and promises them something for nothing they buy hook line and sinker it's been there for you know says to beginning a wall street and miss it happening now in the until there's a new f.d.r. who comes in with a new book or a commission and brings in glass steagall and f.d.i.c and other things then these people continue to have their money stolen look at facebook i mean we talked to you before the facebook went public we said it's a bomb it's a stinker don't. with a ten foot pole it's going to be down fifty percent within six months i virtually guarantee it but people bought it anyway because they're on facebook it's virtual it's a digital narcissism because they're on facebook and they like wow i can buy into myself playing with myself with my other solves who are exactly like me and myself and my digital narcissistic magic mirror and i can own part of this well i want to

own it at thirty eight dollars a share down fifty percent in six months. i guess i mean also exposed since then is that facebook is just littered with bots people actually are friends with max kaiser on facebook who is a fake max keiser and the guy talks to the viewers of this program as if he's you so this is like the whole world we're living in this superstitious magical freak world this artificial superstition on facebook the people who buy advertising on facebook are buying into the artificially superstitious notion that people are clicking on your ads or have intention to buy your stuff when it's actually just bots clicking on themselves eighty percent so the valuation is not even fifty or fifty two billion dollars for facebook this company should be valued at more than maybe one or two billion dollars ultimately it will be bought by a unilever or a coca-cola will use it for a marketing machine to sell more junk say spirit thanks so much for being on the kaiser report thank you does away much more coming away stay right there.

former soviet soldier. husband. father. a son. a brother. an alien in ukraine. craving for my only if.

if . could you take three. charges. range from three. three. three. three blunt videos for your media project free media oh don carty dot com. welcome back to the kaiser report imax kaiser time now to go to new york and talk with james howard kunstler of consular dot com james welcome back to the kaiser report it's always fun to be with you max all right james howard kunstler you're

out with a new book it's called too much magic wishful thinking technology the fate of the nation tell us about the book well the book is really about how we in america are sitting around waiting for santa claus to deliver a goody sack of technological rescue remedies so we can keep on running wal-mart suburbia walt disney world the u.s. army the interstate highway system and the rest of our stuff by other means which isn't going to happen well james the myth of america is that fake it til you make it and there's an idea that the keep hoping for the best and that american can do attitude and that the self-help books remember back in the fifty's or sixty's you had how to win friends and influence people you have this self-help movement you have tony robbins who walks on coal even though recently the people been getting their feet seared but there's a whole there's an american self-help industry that goes back decades goes back to

ben franklin so what you're saying is you're spitting in ben franklin's face oh gosh no first of all i do think that it is important to be a hopeful person but the way to accomplish that is to respond to reality intelligently and we're just not. doing that you know there's a long list of things we have a very big to do list of things we have to attend to and we're just not doing any of it you know we have to really rebuild reform remake and reconstitute the major systems that we depend on for everyday life and these can be stated with some precision you know the way we do farming is going to have to change because industrial farming is just not going to keep going on we're going to have to change the way we do commerce because you know global big box retailer doesn't have a future we're going to have to do dreams partition differently because the happy motoring experience is coming to an end so you know we have

a tremendous to do list of things we have to tend to but instead we're just sort of waiting for santa claus to find a way so that we can run all the cars differently well if i read paul krugman of the new york times he will say as a keynesian economist that the list of projects you just mentioned is what is needed for the american economy to revive and that the federal government should borrow maybe five to ten trillion dollars to get all that done is that what you're saying well i think the catch is that none of that is going to get done at the scale that people like crewman imagine and in fact it is the whole issue of scale that has to be reimagined redone and reinvented and downscaled and made a local and changed you know guys like crewmen tom friedman simply want to find other ways to keep running all the stuff we're now running at the scale and in the manner that we're running it they want to keep wal-mart running they want to

keep the interstate highway system running and it's understandable because it's our stuff and it's already run it and we're used to it and it makes us comfortable but i think the mandates of reality are different and they they are giving us a different signal that we have to make change. we are now compelled to make changes in the everyday life of. an advanced society or at least let's say a ceasar id that wishes to continue being civilized now james howard kunstler i was reading a piece block piece by a billionaire who lives out in the hamptons in new york and he was expressing genuine fear that a vet he could see where the populist uprising could result in people finding him and his buddies out there and seeking retribution for having destroyed the economy so these these top one percent or top one percent of the one percent are expressing openly their fear of a populist uprising so my question is i guess. it what

you're describing in terms of what needs to be done clearly it's a possibility because there's no money for it and there is no there's no tolerance to allow the system to crash like in iceland for example that had to go through the crash first before it came through so that leaves popular on rust right well you know i put a little differently i do think that we're going to we are facing tremendous problems with capital formation and there for available money and available wealth to do the stuff we've got to do but i also think that reality will drag us are less kicking and screaming into this new way of living and i also believe that societies are essentially emergent in nature and stuff organize and in the sense that you know when all is said and done they really are compelled to respond to the

circumstances that history present to them and then they'll you know they'll do what they have to do and the problem is that you know if we do it that way it's liable to be messy and a lot of the last will be huge losses entailed and there will be probably more hardship then if we get it in a kind of a systematic and intelligent way and you know this whole business about you know the hamptons and the elite and you know what may be the destiny of them i think that in history what you get is river lucian or a times that are simply you know not evident in till they happen you know until the moment that these tipping points are reached and these these moments of inflection are reached reached no one believes that it's you know unsafe to be behind a privet hedge in east hampton you mention capital formation that there's a requirement for capital formation but today we've got central

banks the. you are keeping interest rates near zero percent and of course of interest rates are near zero percent. the currencies that represent those interest rates don't offer any return on investment so they don't attract any investors and if you don't have people invested in currencies that are generating some kind of return of some savings scheme then you don't have any capital that capital is based on a savings and you can't have capitalism without capital and yet the central bankers feel that you don't need capital to create a system of capitalism there's no there's no interest rates attractive to anyone out there so you end up with all of all of the activity all the primary can i take anomic activity in the g twenty countries is is almost entirely speculative it's just gaming the system playing game theory trying to figure out what one has funds

doing versus another hedge fund there's no productive capacity being expanding their wages have been stagnant for decades now the consumer in america has been stagnant for the last five years so there's no capital formation at all it would end these interest rates as long as they're near zero there will never be any capital formation so what about the policies of ben bernanke he and the e.c.b. and bank of japan and bank of england how how culpable are they in this crisis putting aside for a second their involvement in the live war rate rigging scandal just their over overall policies of deserved zero interest rate policy howard counselling well i go even further than you know the picture that you're taking. our financial system has come to be based on nothing more complicated than a chronic accounting fraud and what we're now engaged in the very dangerous bill.

this constantly really incessantly trafficking in lives and dishonesty and telling ourselves things that are not true and reality has a very close relationship with the truth they are best friends and when reality and truth become divorced from each other you're putting your culture and your society in tremendous jeopardy because what happens is automatically people will stop people will lose faith in all institutions that are important for us to keep on being civilized you know they're going to lose faith in banking which they're already have pretty much they're going to lose faith in what our currencies represent they're going to lose face faith in government and governance per se and you know you're going to end up in a situation of cultural disorder probably enormous cultural disorder so as we

traffic in on truth and we base our banking system on accounting fraud we are courting catastrophe yeah well there's no doubt about it anybody who is not directly benefiting from the pillage going on in the economy to benefit the top sixty five thousand people in the world with net worth of one hundred million dollars or more is being subjected to enormous pilfering and larceny and not only directly out of their accounts let's say jamie diamond taking m.f. global money out of segregated accounts directly to cover his bets but you also have an advance in computer algorithmic trading that will do the stealing for you there's a new fund out james it's a it's a it's an algorithmically driven fund that mimics superstition so it avoids the number thirteen it avoids popular superstitions in order to. create

a fund that capitalizes on magical thinking so you're saying there's a problem of magical thinking and what wall street is saying is let's create a fund that have algorithmic trading bots that go into the market and trade based on the majority's view that magical thinking will solve the problem so you see my question is is that every single social catastrophe is viewed by wall street as a new way to package a securing security product and trading vehicle to enrich the top one percent of the top one percent so how do you stop that kind of predatory behavior by wall street you know they also have funds to capitalize on divorce i would assume that if this were nineteen you know forty two goldman sachs if they had an opportunity would take auschwitz public on the new york stock exchange that's the kind of level of psychopath ology we're talking about so how do you stop that yeah that's very

interesting that yes i think goldman sachs would be probably trafficking in auschwitz gas chamber futures or i look at you know we're in a situation now where between just immense amounts of intervention and high frequency trading and outright a fraud the functions of markets are completely compromised especially in terms of you know the very important function of price discovery which means what is stuff worth and if you can't tell what stuff is worth you really don't have markets and if you don't have markets where you're not going to have capital formation and you know that's where we're at this you know i think part of the problem is that these . operations appear to be so abstruse and in comprehensible that even a lot of intelligent citizens you know people who vote people who actually read the news or follow it you know they really can't come to any. coherent conclusion

about what is happening in our society. and you know that the outstanding feature of our times is this inability to form a coherent story a coherent consensus about what's happening to us and what we're going to do about james howard kunstler we're out of time thanks for being on the concert report you're welcome a lot lovely to be here as usual. all right and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert overthink my guest james howard kunstler who's got a book out too much magic wishful thinking technology and the fate of a nation is going to send me an email please do so at kaiser reported r d t v are you until next time x. guys are saying bye oh. i moved former soviet soldier more prisoner. brain her.

husband. a father. an alien in the beginning stage. a son. a brother. an alien in ukraine. i'm craving for my home. download the official publication to self choose your language stream quality and enjoy your favorite film on t.v. now a t.v. is not required to watch on t.v. all you need is your mobile device to watch on.