maryland. stacey yes max this is come to light recently as there's been all sorts of alleged you know wrangling over the budget in the united states this whole deficit ceiling in how much we need to cut why is the pentagon off the table well if you look at this chart this is department of defense spending and real inflation adjusted dollars as you can see we spend now more than we did during the cold war vietnam and the reagan build up well the pentagon spending is a function of money printing it's a function of money printing because money printing would ordinarily cause massive inflation but dead soldiers equal deflation that's why you have to look at that arlington national cemetery that's america's answer to inflation it's to deflationary forces of genocide and pentagon budget increases and killing helpless women and children around the world to keep stuff in america cheap enough for the

casino class to keep them serve them amused and distract it well i'm going to get to that in a second because i really think what catherine austin fits in poker roberson said is true is that the pentagon supports the us dollar that is what backs the us dollar and if that is under threat then it's important to increase the budget of that pentagon which backs the us dollar but i want to say we're andrew sullivan says here regarding this chart he says quote history is replete with examples of great powers who undid themselves by spending on war and empire in the end often with the debt won the glutting the core concerns of the domestic economy had to monica america is following imperial spain and imperial britain into the same morass but it is a choice not a fate. right well how better way to support the u.s. dollar than killing a lot of people i agree with this and paul craig roberts and that supporting the

dollar means committing genocide when you print money that's inflationary when you allow money to be destroyed that's deflationary there's nothing faster to destroy money than bombs and dead bodies and that's what that's what it's all about where you actually mentioned the soldiers and a lot of americans will argue we can't cut the budget because we need to support our troops so to combat that argument andrew sullivan does provide this chart which is the real pay of employees as you see that's been going down along with inflation along with the money printing in order to support the debt load that is supporting the pentagon adventures overseas to secure oil resources and support the dollar but their wages have been going down and remember in terms of this empire of debt the likes of david graber has said eventually these soldiers will demand payment in gold and silver. yes the soldiers will demand payment in gold and silver because a brick are increasingly becoming just pure mercenaries as the american moves to

a pure mercenary army and the value of the money that they are printing to go on these adventures is losing its value and the conscripted are not going to script it or pseudo conscripted you know schmucks that end up fighting these stupid wars for deflation are not really soldiers so much as cannon fodder and those cannons are fodder full of money and that's what the death for america is all about so poor the dollar by killing there so it afghanistan or iraq because it well let's talk about the currency that is behind this whole you know friend of the over extended us military sadi at das he asked so how long can the us hold the world ransom with the dollar this he wrote in october two thousand and twelve i've been waiting for the perfect time to talk about it he says that given its magnitude and the lack of political will to deal with the problem of debt and public finances the us is now

deploying its f m d's financial extortion monetization and devaluation to finance its requirements he says is a form of extortion to print so much money to back all these debts and to bail out the banks because it drops the value of your investment by all your bonds china owns trillions of dollars of u.s. bonds so they keep doubling down having to purchase more to dollar cost average all of their purchases of u.s. treasuries that's correct printing all that money to keep the china debt rolling. inflationary we already see inflation in prices keeping those who are manipulating the system quite wealthy thank you but we would see much more inflation if it weren't for the money being spent by the pentagon to kill people and commit massive pogroms. genocides in the name of a strong dollar well currency wars. follow hot wars they go hand in hand so

wherever you see a currency war happening there is likely to follow a real war now japan rebuke to g. twenty nations may signal moves to weaken yen japanese purchases of form bonds to weaken the end may become more likely as the nation rejects trading partners rights to criticize its currency policies so max finance minister taro aso told reporters at a briefing in tokyo on december twenty eighth that quote foreign countries have no right to lecture us about their attempts to weaken the yen. well of this is of course part of a multi-year story called the kerry people borrow in yen to speculate and the new leadership in japan wants to make it even easier for people to borrow in yen to speculate and of course much of that speculation is aimed at destabilizing china so

meric is in bed with japan to destabilize the yet is only agitated in china so the hot war looks like china japan baby tory first century that could be the kickoff yes or no japan argues that the u.s. for example should have a stronger dollar. and that the group of twenty in two thousand and nine had met and agreed not to competitively devalue so he's saying that they broke their promise first that the u.s. is devalued because the u.s. dollar has declined by twenty percent since two thousand and nine and i guess he's suggesting that's intentional and therefore all bets are off and you know this was exactly during the great depression what happened is that everybody started to beggar thy neighbor and then what happened after that the hot war right or even more recently you had the plaza accords of the early one nine hundred eighty s. again involving the japanese yen and this was to set the stage for the twenty five

year bull market that followed but we're at the end of that now owner answered a new phase because of the distortions that were to follow the plaza and corridor have created this behave with of fraud that is now gutting the global economy requiring yet another global conflict which would at this juncture mean devaluation for everybody against gold. now you mention the possible hot war between japan and china and of course that was the sort of alignment that happened during world war two and it does look indeed like it's setting up for that sort of inevitable hot war chinese think tank conflict in the middle between japan and china over. the chinese academy of social sciences report on the development of the asia pacific region points out that china's rapid development is raising anxieties and surrounding nations forcing them into taking precautions and requiring them to accept their readjustment of the power balance and again this is exactly you have

the currency wars preceding world war two and you also had a rise in power of germany and the us and the declining power was the united kingdom and they had to throw their their glory or their empire i guess to one of the two when they chose the u.s. rather than germany or you make an excellent point or currency or work earns the war the us has benefited after world war two from the saran mightily but it looks like in this new global rearrangement of the currencies that the u.s. is holding the weakest hand so the u.s. dollar will probably be devalued the most and the yen and the u.k. pound against the chinese currency and of course that's where the war is it's the china japan or japan it's a proxy for the u.s. and china is wants to revalue up but only if it can take a huge piece of america's and canadian assets as a result of this interaction and that's what they're angling for and they're

already buying huge pieces now of american member just a few years ago the conoco phillips deal was rejected by the china was considered a strategic asset that they would not be allowed to have sense that deal china's bought. and worth of assets than that one single deal this is been talked about in the us press because why alert the citizen about a hot war coming down the pike when they should be just buying lots of stuff and borrowing lots of money and eating themselves to death because that's the model of course as i mentioned the united states a lot of their geopolitics of the past decade or two has precisely been about this is about three warding china's rise to keep it from rising this is what donald rumsfeld and dick cheney said in one thousand nine hundred eighty one thousand nine hundred nine policy for a new american century they wrote this document it wasn't some crazy conspiracy theories they're the ones i wrote it said we need to invade iraq to stop china from accessing those resources from getting control of them so the great final war and

this is again involved back to world war one and world war two u.s. army teams heading to thirty five african countries this again was slipped into the news during the holiday season not very many americans noticed it but u.s. army teams will be deploying to as many as thirty five african nations early next year for training programs and other operations as part of any priest pentagon role in africa the move would see small teams of u.s. troops dispatched to countries with groups allegedly linked to al qaida such as libya sudan algeria and need well i think it was confucius famously donald rumsfeld should be in jail for war crimes and quote who's the biggest player in iraq right now iraq's oil business oh china that's right so. they're just know pretty well this twenty first century but china is tapping their resources but they're paying the ties to the empire to the united states is the u.s.

that controls that so that the u.s. is very happy for china to have the oil as long as they pay their share to rome in dollars yeah which are quickly losing their value which they accumulated by so. in america hundreds of trillions of dollars at a wal-mart so the team sent to africa are a u.s. brigade that has the capability to use drones for military operations in africa if granted permission not from the nation's about to be drone but from their commander at cent com or africa or whatever i want to cause the report that we put the nationals on the show it only was like seventy five bucks to get one seventy five parts we can get a drone we can flying around the city of london see what they're happening at h.s.b.c. now you know one final thing i want to know here is that you know empires come and go and it looks like the u.s. empire is going away but you know the empires at the edge they often reflect the

actual mores and values of the capital itself so rome laid perfect roads all across europe and we still have them don't wait. britain they put railroads across africa india australia new zealand canada their whole empire standard across twenty five percent of the world but if you look at the u.s. we have mogadishu haiti mexico you know what's common among those decapitations bombed out sites dilapidated roads bombed out roads but it looks just like america everywhere looks like detroit that's the u.s. empires detroit writ large. to bring back james brown i mean just a guy could sort this out we need more foam. we need the phone. that's parliament funkadelic. everything went tits up after they left the scene. here with thanks so much for being on the kaiser report thank you max. stay tuned

for the second half obvious speaking to dan collins of the china money report. choose your language. of choice we cover though in a financial planner today still some of the. treatments that the consensus you can . choose the opinions that you think are great to. choose the stories that impact your life choose the access to your office. we're going to take the trip.

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well prepared is a must and if you're lucky. you'll never forget your experience only ice cream that's going to be heaven. see. below the ice on our t.v. . welcome back to the kaiser a part. time now to go to shanghai and speak on. the china money report and collins welcome back to the kaiser report. thanks max going to be bad all right dan collins' economist magazine says the u.s. china relations well defined global politics and twenty thirteen where do you think the relations are going hare well yeah i saw that piece. pretty much agree with that but i think go subplot to the piece that was really about china japan turns over two thousand and thirteen two thousand and twelve we saw massive changes

here in china you know not far from where i live here earlier was a panasonic factory burned down as of thousands of chinese hit the street although not on a second dan hold on a second what he said that a panasonic factory was burnt down i don't see that the news what's going on there . oh i'm actually going to try to marry border ordered. yeah the battery was burned down here in studio a little suburb of shanghai a little so over twelve million people. there's a japanese three year the entire japanese restaurant store with all of the windows broken oh i mean it was really bad and it was a day with reported in the major media about the protests but i don't think outside china will really under good how bad it really was i mean. there were many reports of even local chinese people here be dragged out of their japanese cars and beaten and that's what's led to a seventy percent decline in japanese personal china and they're not coming back

when we have a currency war as some describe it it looks like it's heating up to a ground war a hot war and especially with this china japan conflict which is seems to be ask a lady and japan of course is got a new leader and they have committed themselves to crunching and crashing and destroying their currency the yen as an attempt to export their way back into fiscal and monetary and economic health but a lot of people note that this will lead potentially to japan being the first of the g. seven nations to experience a currency collapse or hyperinflation is china as the world's biggest creditor and what the biggest cash reserves and they're in their sovereign well in their own reserves three trillion in reserves over. going to use that money to help attack japan you know and i'm saying is part of the global currency war i think it is the money going to sponsor war i think it is the money we're going to see

a money war here money weapons of mass financial destruction than. currency wars and i think we're going to see conventional war the conventional side china war just today about japan setting up a fight their jets over the islands the value island with japanese japan first president of ireland china is now sending passenger planes over the islands weekly triggering the defense of the air force defense of japanese to try to see what the defensive like they're trying to put in a fleet around the island the tensions are just getting worse and worse down there the people i talked to are here really is no way around this and nobody knows how you know possibly some of this problem into a thirteen might my major concern on conventional side is that someone's going to get trigger happy someone's going to get a plane shot down or a boat shot down and then then we're off to the races i don't i don't see it as played in beyond that next year but long term nobody's clear how this is going to be solved on the currency side japan is absolutely in it death row is on their

economy they're spending twice what they take in receipts as you mentioned l.d.p. has just come back into power now there are now there are plans of fix the economy after thirty years of keynesian failed policies is going to print more money and they want to pass a new budget despite our spending twice what they take in they want to spend more money want to print more money is going to drive that they will get the currency lower like they want it's not going to help the export of japanese corporates have just got a weaker than we are over the decades and you know our compete they've been losing money at televisions for ten year apple has replace sony koreans have replaced japan in many areas of consumer products taking away a lot of the car markets so japan is in real trouble. really having do better down the hatches and thirteen they may actually enjoy still being tensions with china doesn't twelve people wondered why did you we're still so intense that i only may

need this just to justify just a minute militarization is the ill fated attempt to save their economy yeah their currency policy seems like a death wish it's like a kamikaze policy a relation to their to their to their currency and there's a real war going on with china in the rest of the world the currency war and it's hotting up tell us talk about china specifically over christmas the obama administration quietly let it be known that the u.s. would be sending troops to thirty five african nations so america is not content with being five or six wars a plus ok so only a few months prior to this secretary of state hillary clinton warned of a certain nations colonizing africa of course and i think everyone knows was who she was talking about let's talk about this dan collins. yeah this is the the china ad story is really interesting issue that's not getting too much press that china

has basically replaced the west in africa they have built so many idle power projects a lot of rail if you ask anybody in africa leadership or african themselves africa themselves they are very happy with what's going on with the china african relationship the synergy synergies there are so good you know africa has resources china needs resources africa needs consumer products but they need to pursue more products it chinese price points not western price points so chinese consumer goods are huge you know a hit into africa or the synergies of their china import export bank is now funding african projects to the tune of twice what the world bank is so basically in effect a few weeks ago african leaders warner to the west that you're on the verge of being marginalized completely in africa i think this is what might be triggering these potential troop. deployments in africa is that we have no other

a card to play here our factors are gone we don't make anything anymore nobody in africa wants to buy credit default swaps so they're putting in the factories in ethiopia was also reported that china has just built two industrial zones fully complete with rail lines power plants and chinese shoe manufacturer that relocated an artist hired over ten thousand people in ethiopia to manufacture shoes is the kind of developed veltman that africa needs it's not really troop deployments at this point. in the case of american troop deployments this could be the last card we have to play and based on our historical modus operandi we will probably be sending troops into different countries picking a dictator having them control the country and then they can default on the loans to china and we can. establish control there yeah let's talk about this chinese ethiopian shoe factory for a second because this signals

a new chapter in that instead of looking at china as a source of extremely cheap labor china is now generating finished goods finished products so this is why they emerge now as a global player in the finished goods markets and so this is really cutting into what american europe has as their value added so-called is the ability to maximize that extremely cheap labor by producing goods that china is moving into that market now let's talk a little bit about what china will be doing in addition to taking the prominent and dominant role in african economics they are rumored to be introducing in twenty thirteen some kind of gold back r. and b. gold backed chinese currency as a way to truly put the spike into the dollar as well the reserve currency your thoughts dan collins well absolutely china has been you know i'm not sure how to go

back remember it's highly possible so everybody knows china has been accumulating a lot of massive scale oh well you know six or seven years now they've had their gold reserves their real gold reserves very tight is secret they're also humiliating go through through their natural state on base so it's very probable i've written many times i think remain b. will be the final nail in the coffin of the dollar. and it golden around to be together will be the basis that you know there's also another issue which is the retro yet the russia and china now are doing oil trading in chinese yen china can set up and all it is today is chinese un that's already already in discussions china's are the world's second largest importer with the real new reserves out of the united states they're expected to become more self-sufficient in oil so the big oil trade dollars going to be based around china or china will be the largest oil

importer in the world and a lot of those oil suppliers are not going to sell in dollars are going to sell in chinese here so you've got the issue of the remedy be being utilized to currency slav agreements all over the world. over twenty countries china's trade about twenty percent of it this year when the redmen be from dollar with age as the sea predicts within three years or all the remain be seventy eighty percent of it outside of us in europe so you've got you've got the currency going really be you've got the petro yen and you've got china's gold holdings benchley will spike the dollar it's it's not a question of if but when are lots of ask the the rail interesting question here at year and the chinese official gold reserves are just over a thousand tons. i think understands that they're going to announce a revision to that number and i've heard estimates anywhere from two thousand to

six thousand tonnes the second biggest holder of gold of course is germany with three thousand tons second behind the united states with a stance of lee eight thousand tons but i've also heard it said from jim records that in order for china to truly enact their plans for a global financial economic domination they would need a minimum of four thousand tonnes and they'll make an announcement at four thousand tons danko and shanghai can you fill a cent on what your thoughts are here. yeah. i'm a big fairy jim rickards. three china will to continue to accumulate gold when they really no answer all. you know could have been a it could happen tomorrow could end two three years from now i believe their body knows china is the world's largest oil producer and we're going to look at the country in four or five years. or even more so when those holding their

restated not clear how much will be restated it could easily be for the six thousand ton or war everybody knows a bit of buying binge you know for half a day blows are writing columns in shanghai that's all the time we have thanks so much for being on the kaiser report expects and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i want to thank my guest dan collins of the china money report if you'd like to get in touch with us tweet us at kaiser report or on facebook dot com forward slash kaiser report and so next time nice guys are saying. join me on a journey to the heart of the kremlin to a place is hidden from the tourists you're going to meet some real kremlin from the tourists you're going to meet they may not be the usual newsmakers you see on t.v.

. but it was leaked. to. me. the news today violence is once again flared up. these are the images the world has been seeing from the streets of canada. trying to corporations are old today.

thank. you.