welcome to our team. with your top stories paymasters are to decide whether greece should get more time to sort out its bailout reforms while in germany chancellor merkel's allies say athens leaving the euro would be no big deal. u.s. special troops are on standby to head into cereal following president obama's warning for izing intervention if there are signs damascus is moving its chemical arms. despite america's countdown to a pullout from afghanistan there is a warning washington's fueling insurgency following a deadly wave of insider attacks against western troops all right that'll be it from me my colleague kevin nolan will join you next hour and next up on r t the world's financial front cats get the kaiser treatment.

max kaiser this is the kaiser report if you noticed a cows in your neighborhood seem a little jumpy little hyperkinetic. max we're all cows eating candy during the drought that's my metaphor for today's episode ranchers have struggled with skyrocketing corn prices because the drought has made feeding their livestock very expensive but one rancher joseph watson has turned to a very sweet solution his fourteen hundred cattle are no longer feeding off corn earlier this year he began buying second hand candy to feed them he says quote it has a higher ratio of fat than actually feeding straight corn it's hard to believe it will work but we've already seen the results of it now so if somebody shows up at your door the selling dressed up like a it might actually be a cow exactly but i was thinking it's also like

a very very good metaphor for the global economy here there's a drought in liquidity and the central banks in response are feeding us candy of quantitative easing well they're feeding the banks candy of quantitative easing you know the brokers are strapped so it must be working right i suppose the cows are favorite candy would be candy corn and this this rancher says that the cows have not shown any health problems from eating the candy and they are gaining weight as they should be so exactly like i'm saying for the metaphor for central banks to banks is the banks they're saying don't look on healthy because they're getting fat their balance sheets are getting fatter so it must be working the bonuses from wall street are getting bigger and bigger so the quantitative easing is working the fat cats the fat cows on wall street they're getting fatter so the quantitative easing saying it's working is a bend around if you look so they're getting there's wording the fact that the total economy itself is being driven into the calpine as it were that doesn't

matter. so let's look at the banks that have been overfed on quantitative easing candy banks who use one point seven seven trillion to double treasury purchases so in this case the central banking rancher looks at this and say hey my banking cows are doing so well because the gap between u.s. bank deposits and loans is growing at the fastest pace in two years providing lenders with more funds to buy bonds and temper the biggest selloff in treasuries since two thousand and ten right right rise so imagine the. tube detached from its utter into its mouth that's the ben bernanke is economic strategy is the sell feeding cal the government is printing its own paper which it consumes its own paper creating a fake g.d.p. growth in terms of uttering utter lactation which ends up going right

back into the front end of the cap. now you know part of the theory is that they give these banks so much money and that one day it will trickle down to all the little people out there here's another headline that shows that that might not be working and in fact all that candy you're feeding them might be destroying the economy started the day americans at or below one hundred twenty five percent of the poverty level the number of americans with incomes add or below one hundred twenty five percent of the federal poverty level the income limit for qualifying for legal aid you know government assistance is expected to rescind all time high of sixty six million people this year a family of four earning one hundred twenty five percent of the federal poverty level makes about twenty eight thousand eight hundred dollars a year so that would be the. detritus. raining down on the people who are getting the storm effect from all the quantitative easing making the cow fat that's eating its own lactation in the form of quantitative easing of course the fat cow

generates more to try to through the posterior of the cow which this case is not fertilizing the economy it is burying that down to me in layer after layer after layer of waste. well that rancher there was pumping candy and ethan all and lord knows what into his cows they're getting bigger and he's saying well they don't look like it's there isn't any ill effect from pumping all this candy into it and this is the ill effect in the poverty levels increasing in america despite pumping all that candy into the financial system exactly right this is extra nowadays that are completely not included in the classic economic model they don't look at the fact that their policies are increasing the poverty rates exponentially because they don't put those people on their official balance sheet it's like mitt romney's dog that has dropped to the roof of his car that had

another detritus problem all over his fellow drivers on the highway was like well that was it wasn't in my car therefore i'm not responsible for that well the head of all of this you know banking banks are class being fed this cotton candy and. junk food in order to try to boost the economy is jamie dimon at j.p. morgan chase the biggest bank in america and here's an image from william bond saying this is jamie our ponzi he's the head of the global terrorist group al ponzi and i want to say you know remind you again that we've invited him on to the kaiser report he has refused to come on but i have these little images here these are visits to max keiser dot com from j.p. morgan ok first you see on seventeenth of august a three fourteen pm somebody from j.p. morgan in new york visited max keiser dot com in specific they visited a story on our site called our the day trading high frequency trading algos literally the only ones left in the silver market after that visit from new york

j.p. morgan we see a visit from london j.p. morgan bret to that same story so max why are they interested in a story called are the day trading algos literally the only ones left in the silver market well first of all. c.z. to track what j.p. morgan is doing so to front run what they're doing of course is our primary source of enjoyment and so they're think they're front running the dumb money on the floor we're front of them by tracking their email so you know it all works out in the wash but yeah i mean there are of course that got a global scam going and the london life masters is the headquarters for their entire evil empire of high frequency trading fraud and silver manipulation but their day is coming and as just as i've said enron and worldcom and j.p. morgan going to zero as night follows day there's no doubt about it so this piece on our site was written by silver dr and he was saying in the first three days that this week which is the week august sixteenth. if these are any indication the day

trading bots are literally the only traders left in the silver futures market monday's price action is the light blue line that's august thirteenth tuesday since the red line august fifteenth that wednesday is the green line august sixteenth notice how despite ranging intraday from twenty eight twenty to twenty seven forty eight and big moves in between precisely on the comix open each day prices converge to exactly twenty seven point eight three at the global x. close every single day this week so doctors are saying either this is a sign of manipulation or it's just high frequency traders in the market so the confirms exactly what i've been saying is the nature of this ridiculous is you pick the price first and then fill in the trades to to get to that price in a normal market the trades happen first and based on price discovery results or price but under this manipulation this illustrates just one of elation quite clearly is that the bank j.p. morgan they have a price that they want to get to and they program the computers to fill in the

trades to get to that price because and so if they know what the price is going to be in the future then they can do all kinds of side bets of manipulation of profit from their insider trading and that's how they can report three months four months five months straight every single day making profitable trades on their prompt asks wink wink very legal but they still continue because they know where the prices are going to end at the end of the day they manipulate around that they use high frequency trading and i go to training to fill in the trades to get to the prices they've already pre-determined that's why this isn't a free market capitalist system anymore it's a complete price rigging manipulated scandal to the profit of these big fat cows that are got the two from their order into their cheeks. well another thing it here is that j.p. morgan was interested in that story so either they're like they're exposing us or they're saying who we need to compete with that i'll go there is that's their price target somebody has done the investigative work for us and we want that and the other thing is that high frequency trading taking you know. seventy and eighty five

percent of all trading in the market that's the equivalent of feeding candy to the cow is there is no real liquidity or market action or investment action going on in the markets so it's all fake it's just this is the candy being fed to the market and one country that's growing increasingly impatient does johnno and here's my prediction for twenty twelve that china will announce that they have doubled their social gold reserves to two thousand tons so this is completely off the radar nobody's talking about this additionally they're going to announce a strategic allocation of. the reserve currency by the end of this year that will takes over two hundred dollars right there in twenty four hours and so this high frequency trading algo that silver doctors sees in these charts happened comix the c.m.e. group owned co max now here's the headline max c.m.e. group seek a permit to create an exchange in u.k. so the derivatives market place c.m.e.

group confirmed monday it is in the process of applying to the u.k. financial services authority or f.s.a. to create a london based derivatives exchange it will initially begin trading foreign exchange futures products and is expected to launch mid two thousand and thirteen most of the c.m.a. is stepping up to the majors london is really the major leagues broad this is where the biggest commodity abusers are manipulators and counting frauds a coordinated government intervention manipulation takes place c.m.e. wants a piece of that action they think they're ready for that kind of action remember g. lehman brothers and have global j.p. morgan's london whale made off all want to london it's the big leagues of fraud so sue me good luck with your move to the majors well we'll see how you do well the good thing about moving to london is that you know the british people are self abusers they'll take all the abuse that banks through poor upon them tackle lazy britain fellow tories tell david cameron david cameron was today challenged by rising star tory m.p.'s to tackle league. britain and bring in tough new work

reforms the m.p. said that the u.k. had to resist the work ethic towards that of south korea singapore and hong kong rather than the office of factory culture in struggling european nations or risk slipping into grim decline with falling living standards oh you want to bring back workout says basically what he wants to do so yeah i mean i'm sure they'll have a revival of all over twist the west-end who served looks who are you know and i mean the tories of course don't want to address the elephant in the room the fact that their primary donors the bank stars have financially raped merce of merce's mercilessly the vast majority of british people for all their worth you know they don't want to talk about that they want to is the victims fault these people had their money stolen so let's put it in the workhouse to get this economy growing again if the productivity are they go higher productivity in the prison you know

people who like those of bill marsh look here's a way to incentivize people to work harder give them interest rate where they can make money on their savings. how about that how about if you get the quantitative easing in the bank of england out of the picture let the market set interest rates people will then get four or five or six percent on their savings and they'd be incentivized to work because they're making money on their savings that's called capitalism stories you know without a shadow of a doubt before the end of the year they'll be involved in another major sex scandal cameron and his wife sarah will be caught in some fifty shades of scandal and it'll be an abuse of mass and then they'll bring back labor and all they're going to recycle to go back to the story however the economic crisis they say should be a wake up call of the need to quote rediscover the lost virtue of hard graft now they're probably meaning it hard work graft if you look at wikipedia is

a form of political corruption that could be defined as an unscrupulous use of a political a titian's authority for personal gain so you know that even these politicians are sick a fee autographed they don't want any of your kickbacks in dollars and pounds and euro's they want the hard stuff they want the silver they want the gold start giving them some hard graft yeah above the work required to say a sentence without committing massive foot in mouth disease you tory punk all right so you never think so much bigger guys are a bank you don't go away much more coming your way so stay right there. download. the creation so choose your life stream quality and enjoy your favorite. t.v. is not required to watch on t.v. all you need is your mobile device watch our t.v. any time.

welcome back to the cause a report on max hauser time out of boston to talk with dmitri orloff of club dot com dimitri is the author of collapse gap and reinventing collapse dimitri welcome back to the kaiser report great to be with you once again max all right to me through a call i was you've recently issued a travel advisory for twenty thirteen tell us more well it's kind of a travel advisory for planet earth in line with douglas adams hitchhiker's guide to the galaxy you know who douglas adams basically said that they they had hiker's

guide had only one thing to say about planet earth which is mostly harmless so i don't think it's going to be old out harmless moving forward because they food price spikes that are in the pipeline that are pretty much you know baked in already because of the disastrous harvests around the world and price spikes cause revolutions revolutions make travel and say so along those lines i decided to issue a warning ok let's talk about revolution for a second because it's talked about kind of a conceptually in the united states but nobody really takes the concept seriously certainly not the mainstream media but what are the ingredients for a revolution and do you see actual uprisings happening in america are would have the possibility of being cut off from the food stamp grid act as a successful deterrent to any potential revolutionary so there's this tension going on right now a lot of people see that the powers that are in play already anticipate the

revolution and set up a system. in such a way as to simply turn it on basically they that they're there food stamps money runs out every month. you can you can go to wal mart and observe people pretty much hanging around waiting for the new money to to show up on their card so that they can buy some food. and if it food prices go up then these people will be malnourished they're already malnourished because they buy the cheapest stuff and they eat it and it hurts their health i think in the united states it'll be less less of a riot type scene but more of just steady degradation and a lot of misery. but i think in other parts of the world there will be a bit of an explosion having to do with the fact that a lot of people will simply be priced out of the food market. and if you look at how food price spikes correlate with revolt and revolution around the world it's

right it's really quite significant every time there's a massive food spike there's a lot of upheaval in various places in the world and the places that are closest to the edge of the places where people spend most of their income on food. you know the place that's and constant upheaval is has congo where people spend eighty percent of their income on food but places like india and bangladesh are not very far behind or right and of course right before the revolution in egypt that percentage got up to forty percent and that's typically been a point where people start thinking about revolution of course you mention the food stamps in the wal-mart and who stands rolling over every month in lines outside wal-mart now according to the associated press the number of americans with incomes added below one hundred twenty five percent of the federal poverty level is expected to reach an all time high of sixty six million this year dimitri your thoughts well i think that you know everybody is getting poorer except you know the

upper crust. that is running away with on the old allude for the time being. and so that's been happening for quite a while and i see it continuing to happen. there's a constant flow of people dropping off on employment rolls but not finding work these people eventually become destitute and that's the effect we're seeing and i think that that's going to continue for as long as the economy fails to create enough jobs it's been doing that for for many years now and it's continuing price well there doesn't seem to be any real initiative in washington to create jobs the the federal reserve of course is only interested in taking care of banks there's the white house is only concerned with taking care of banks first there's nobody around to the who's who's who thinks about creating jobs it's not on anyone's agenda so i don't expect you would expect any jobs to be created i think as long as

people are consuming on credit then they're happy you don't need a job per se now you wrote collapse gap in two thousand and six dimitri are you surprised how long the u.s. has managed to not collapse or has it been collapsing all along just more slowly than you expected well it's been a gradual gradual process of off postponing i think i expected certain things to be done. what what what surprised me was the fact that the nation state the united states and and the european union. has basically failed to exist it's all of these political entities or are two hollowed out and their only hope now is to keep the global finance game going and the global economy going because they don't really have any way of operating the global economy by other means by say nationalizing all the banks and and and you know making

sure that the country can sustain itself without imports and things like that the. isn't really any any isolationist plan that is workable so the only thing these governments can do is try to appear as the financial elites in order to keep the system going of course the system is going to implode at some at some point no matter what anyone does so we'll just have to wait for that here's the big question on everyone's lips will this collapse be the result in or be part of a default on debt that is to say a deflationary default or will it be met with a wave of money printing and inflationary spike that this is really really the big question what are your thoughts to me three well i think i think both really into from places at different times governments will decide to print. basically as

a strategy for putting down incipient revolt and then shortly thereafter of course it'll turn out that their paper currency is we're worth its weight in paper. but so that's kind of the inevitable thing that you know once they once they turn to that strategy it's pretty much game over but i don't on the other hand i don't think that there's any possibility that without economic growth which we don't we're not seeing that that these levels and increasing levels of debt can be sustained and and there's a limit to how many. how you how far you can chop away at it before you know it's turning out that you know nobody really wants to extend any more credit on that basis so i think that you know right now we're in this in this game where the financial markets are not really able to operate in the in the style to which they're going to customs because there's so much political meddling i think that there is going to be even more political meddling you know the political economy is

going to come roaring back and all the places where it can where government still have enough sovereignty to actually have an independent policy but i think it's all going to end the same way whether you're talking about the west or or russia it's like everybody jumping off you know top story of a skyscraper together holding hands high rise those kind of like the america is a dog and you're trying to train the dog not to you know be housebroken so you allow the unemployment to end higher causing a stereo but then you can usually you throw in a bone you turn on the printing process you give him a free bag of donuts at wal-mart to keep from revolting and then and then you let the austerity trickle in again and so it goes back and forth like this a eventually america i suppose will be paper trained purely on paper they won't be on silver and gold i can assure you or let's talk about the the grid itself the infrastructure because a lot of your work focus. the infrastructure and grid in the way it falls apart in

a collapse in the u.k. and parts of ireland recently there have been computer glitches or alleged computer glitches with the banking system whereby people were unable to withdraw or transfer of cash so this is got a lot of people's attention what happens when this happens to everyone in america or europe all at once could this happen do you think this could happen it could happen people have looked at it in quite a lot of detail and it's a very fragile system that can't really sustain itself without growth if it can't meet its own maintenance requirements without growth if. it starts to manifest negative economies of scale basically it's met its maintenance swallows more and more of the budget and more more and more of maintenance this is foregone or abandoned and less and less of it becomes functional but when breakdowns happen the disruption to the global supply chains and to the flow of credit can be such that

there's a momentum that that this process takes on and then restoration of the status quo becomes impossible the system just starts to break down and the longer the longer the outage lasts the greater the damage it's disproportionate doesn't scale linearly that's what these researchers have found but basically we're dealing with one gigantic enter of open global supply chain that runs on international credit and once that goes away it all starts to unravel very quickly right you mentioned there that the supply chain doesn't scale it linearly in other words when you have a systems in place complicated systems as they grow they're complex city it grows exponentially and this is the problem we saw this in two thousand and eight but instead of dismantling the complexity of the system to stop this from happening. again what we see is an increase in the complexity therefore guaranteeing another

a collapse but a collapse much more severe due to the nature of systems analysis and complexity analysis correct yes that's exactly right there is absolutely no aptitude anywhere to fix problems by simplifying what we have every single solution is graft onto the existing system a new system a new piece of legislation new piece of complexity so if the problem is that the system we have is too complex and the solution is to make it even more complicated than it's pretty easy to predict what the final outcome is going to be ok i want to make one last question i have personally i've made it known that i i am in the same camp that there is wide scale systemic collapse coming i have put it outside date of april twenty third team as being the last day of which you would see this mega two thousand and eight style collapse where do you fall in this prediction scale

are you aware of the over or under on this bet you think it could happen sooner or later than april of twenty thirteen i think it could easily drag on for another few years ok well very good that's all the time we have to make your all of thanks from so much for being on the console report thank you max all right that's going to do it for this edition of the cause report with me max kaiser and stacey herbert honestly my guess dimitri or a lot of club or live dot com if you understand me email please do so i have kaiser reported r t t v dot are you into like sandbags geysers and bio.