the future covered. welcome to the kaiser reports i'm max kaiser or what is it good for some say absolutely nothing but from what i see it's a good way to support a bunch of books welfare queens in virginia maryland and d.c. 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 and 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 that keep stuff in america cheap enough for they can see no good like klaus to keep himself i'm amused and distracted. 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 u.s. dollar that is what backs the u.s.

dollar and if that is under threat then it's important to increase the budget of that pentagon which backs the u.s. dollar but i want to say when 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 when the glutting the core concerns of the domestic economy had to monaco 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 then killing a lot of people i agree with. 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 oh 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 they were are increasingly becoming just pure mercenaries as the american moves to a pure mercenary army and the value of the fear 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 you're dollar by killing there so it afghanistan or iraq because you're well let's talk about the fee currency that is behind this whole you know friend of the over extended us military said he had 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 u.s. 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 is 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 yeah it is only agitating china so the hot war looks like china japan baby twenty first century that could be the kick off 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 the crime 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 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 entered a new phase because of the distortions that were to follow the plaza and corridor have created this behavior with of fraud that is now gutting the global economy requiring yet another global concept which would 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 hot war currency or work earns the war the us has benefited after world war two from this arrangement 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'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 many many more billions worth of assets than that one single deal this has been talked about in the u.s.

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 through warding china's rise to keep it from rising this is what donald rumsfeld and dick cheney said in one thousand nine hundred eight 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 that 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 creased 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 needs well i think it was confucius famously donald rumsfeld should be in jail for war crimes and quote well who's the biggest player in iraq right now iraq's oil business oh china right so. yeah i know pretty well this twenty first century but china is tapping their resources but they're paying ties to the empire to the united states and 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 selling american hundreds of trillions of dollars worth a chunk of wal-mart so the team sent to africa are us brigade that has the capable

. to use drones for military operations in africa if granted permission not from the nations about to be droned but from their commander at centcom or africa or whatever i want to cause a report. from the show it only was like seventy five bucks to get one seventy five parts we can get a drone and we can fly it around the city london zoo 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 us empire is going away but you know the empires at the edge they often reflect the actual mores and values of the capitol 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 this is a guy who can sort this out we need more phone. we need the phone. that's parliament funkadelic. everything went tits up after they left. j.c. ever 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.

me believe he is. he. believes.

welcome back to the kaiser report i'm max keyser time now to go to shanghai and speak with dan collins publisher of the china money report dan 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 hair well yeah so there he's. pretty much agree

with that but i think subplots of the piece it was really about trying to do it in terms of for to 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 history a lot on a second day and 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 max you haven't checked out of china motor report or are boarded up. yeah there's a battery was burned down here in studio a little suburb of shanghai here little sort of people. there's a japanese three year the entire japanese restaurant store a lot 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 people really under and how bad it really was i mean he had 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 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. place and is china as the world's biggest creditor and what their biggest cash reserves and their and their sovereign wealth in there are reserves three

trillion in reserves over trillion in u.s. dollars are they going to use that money to help attack japan you don't i'm saying as part of the global currency war are they going to use the money we're going to see a money war here money weapons of mass financial destruction van collins yeah she doesn't thirteen max i think we're going to see currency wars and i think we're going to see conventional war their conventional side china war just today about japan said you know fight their jets over the islands the now you island with jeff and japan first said it go out and china is now sending passenger planes over the islands weekly. the air force defense of just japanese to try to see what the defensive like they're trying to i mean 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 there are possibly some of this problem into a thirteen and my my major concern unconventional side is that someone's going to

get trigger happy someone's going to get a place 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 throes on their economy they're spending twice what they take in receipts as you mentioned l.d.p. just come back into power now whether now their plans of fix the economy after thirty years of keynesian failed policies is they're 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 gotten weaker and 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 i see them really having to do

better down the hatches in two thousand and thirteen they may actually enjoy stoking tensions with china two thousand and twelve people wondered why do pan were so intense and on the island they may need this just to justify just the remilitarization and the ill fated attempt to save their economy yeah their concert policy seems like at that way so it's like a kamikaze policy in relation to their to their their currency and there's a real war going on with china in the rest the world the concert. it is 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 they want to be in thirty five wars plus ok so only a few months prior to this secretary of state hillary clinton warned of a certain nations colonizing africa of course i think everyone knows was who she

was talking about let's talk about this day and collins. yeah this is the big 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 hydro power projects a lot of rail if you ask anybody in africa leadership or african themselves africa them so 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 sooner products it change 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 are 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 veldt with 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. is there was a controller 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 role 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 skill 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 would remain be will be the the final nail in the coffin of the dollar. and gold in a ravine together will be the basis that you know there's also a third issue is the retro yet the russian in china now are doing oil trading in chinese yen. can set up angle in sudan and chinese un that's already already in

discussions china is already the world's second largest importer with the new reserves out of the united states they're expected to become more self-sufficient in oil so the big oil trade i was 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 remain to be being utilized to currency slogger it's all over the world. over twenty countries china's trade about twenty percent of it this year when the revenue be from dollar age as the sea predicts within three years or all the remain be seventy eighty percent of it all side 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 holy eventually 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 and everyone i think understands that they're going to announce every visions of that number and fern estimates anywhere from two thousand to six thousand tons 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 tons 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 bear jim rickards. very trying to world to continue to accumulate gold when they re an ounce or all these is not sure in me you know could have been eight it

could happen tomorrow but two three years from now i believe go there but he knows china is the world's largest oil producer and none of it left the country in four or five years they just don't look for it anymore so when when those holding their restated not clear how much will be restated it could easily be for the six thousand ton or war is over everybody knows they've been on a buying binge you know for half a decade plus are acting counter to shanghai that's all the time we have thanks so much for being on the casa 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 on the china money report if you like the end 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.

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the government no longer represents the people the people are going to take the term. we. believe in the traditional look into the revolution along. the way our economic system currently is not a. little bit like. what. i.