r.t. america or check out our website r t dot com slash usa you can also follow me on twitter at aaron aid for now have a great night. wealthy british style. spot on the tirelessly. market why not. going to find out what's really happening to the global economy with mikes concert for a no holds barred look at the global financial headlines tune into cars a report on our. place it was a. very hard to take a. look again along here

a lot of that back with that earthquake there looking. a. little. bit. the first. welcome to the kaiser report imax guys are texas totally fracs. texas is so

fret some towns will soon be running out of water and now the united kingdom wants to create its own fracking mess yes the u.k. blew through its front the north sea oil at all sold it all time lows and now wants to blow through its clean water table just when fresh h two o. is becoming more and more scarce know there's no escaping the sinkholes of stupid opening up around us as governments and the corporations target the dumbest common denominators around us who always vote for more debt more housing bubbles more wars more genetically modified food more tar sands more fracking more more more everything that will sink is all into a bottomless pit of stupid they'll vote for signals of stupid. if they say well max you know a sinkhole suddenly own pains and everything just you know collapses i love those

ideas on you tube you know you are scary because that's my fear going to disappear into a sinkhole apparently in florida in china there's many well you have no option nowadays because propagandists and government and the corporations target the stupid electorate who say ok why not so they'll say ok why not why not get rid of glass steagall so we can have more liquidity in the system and expand the economy and of course until it all collapses as we saw in the two thousand and eight crash you have the same thing everywhere you look whether it's genetically modified food or fukushima that was like some stupid people being sold on this idea that we could have free infinite energy with no cost. being plucked were plucked were completely blocked were being plucked and were being plucked of our senses are being plucked of our network are being plucked out of our food are being plucked of our water pluck pluck pluck to look at this this is your future oh i know.

that. well that looks like a genetically modified factory farmed chicken and that's the same sort of sinkhole of food system that we have because so many stupid people just care about the price they don't care what's in it but we're going to look at the energy system right now in this fracking because fracking is coming here to the u.k. and we're seeing that very little of the negative downside of where it's already been tried it is being covered texas's fact more than thirty towns will soon be out of water more than thirty towns in west texas will soon be out of water as a direct result of diverting their underground water supplies for use and hydraulic fracking largely unregulated fracking it should be said largely unregulated fracking that is definitely putting arsenic into the ground it happens to be drying out before you start acting horrified though consider this this is exactly what texas is mental midget t.

billie's voted for so people were warned of this they still voted for it for this simple upfront fees but now you're seeing entire towns there which they have no water they turn on the tap and there's nothing not even that explosive water coming out of the u.k. is them making a move toward fracking they don't want to talk about a fracking fluid contains carcinogens it will give people in britain cancer the only question is how much cancer are you willing to tolerate one hundred thousand cases a million cases you decide the tremors to the earth's crust yes it does cause earthquakes through the earth's crust it's economically unsound to be to use deco wind to try to frack to get energy are greater than to be to use or energy that comes back at you so it's negative energy also negative capital it takes more money to get into the fracking system than you can make in terms of a g.d.p. boost so it's negative across the score it'll make a few contractors rich it will increase the. in the u.k.

you one of these bridge evangelical in the u.k. some of the queen replaced the queen with the holy fracking god i don't know how do you find out the queen is gone what a friend should i do you do that. well every fracking well requires between three and eight million gallons of water now in barnhart texas where this story where they have no water now it's been sold off to these frack companies ranchers dumped most of their herds cotton farmers lost up to half their crops the extra drawdown coupled with drought made it impossible for local ranchers to feed and water their herds said buck owens and a good year owens used to run five hundred cattle up to eight thousand goats on a seven thousand eight hundred sixty nine least acre farm now he's down to a few hundred goats he's saying that. a contractor i guess got the rights to drill one hundred four water wells on his property in order to extract the water and sell

it to the fracking companies so a buck didn't get plucked it got booked. barbacoa in the normal water you don't need water you can drink like that movie idiocracy didn't they try to one of their lawns with the gator a bit and then america's becoming idiocracy mike judge is a prophet my judge is the prophet of our times well that's what i'm saying is a sinkhole of stupid so these contractors they get to make the decision for all of us but you get sucked down into a sinkhole of stupid whether you want to be a normal sensible human being who has a sustainable lifestyle you get sold short by this guy who is a sinkhole is stupid in this case it's larry baxter if you're going to develop the oil you've got to have the water he says and he's all hurrah and by his own estimates his well could produce enough to fill up to twenty or thirty water trucks for the oil industry each day as sixty dollars a truck that was thirty six thousand dollars a month easily i could sell hundred truckloads a day if it if i was open to it you know what i mean this is the biggest scandal of

the century is that the problem is not peak oil or peak energy it's peak water all especially fracking is water intensive and the amount of water available is a limited resource and people don't understand that but if you try to explain to the sinkhole of stupid population in america or britain that water is a resource that is not just simply created on an alter your universe and pumped in through some magical straw that's gifted to you by some labor party you won't know it's actually a resource in the united states of course you don't know what is pumped into this fracking fluid what goes into your water table due to the how of burton exemption that dick cheney while he was vice president and therefore president of the senate managed to get into pass through the law i think was two thousand and three two thousand and one maybe he so they pump stuff in but due to corporate confidentiality they don't have to tell anybody not even the mayors or any of the locals what's actually in their own water make the point clear is that we know that

the fracking fluid contains carcinogens. but that information can't be published because the corporation will convince the lawmakers in the public that that's proprietary information and it violates their intellectual property law to inform the people that the fracking fluid used to frack contains carcinogens if you put carcinogens in the body it will cause cancer that's like saying two plus two equals four but unfortunately in this reality you have to treat the british people like plucked in the talk. what's the right word stupid stupid just. go with it and it goes of course nothing then you'd good kids to. anyway so that's a benefit. just stupid well this guy baxter he says he rejected that dia that there should be any curbs on selling water during the drought remember

there is an epic drought across texas of course and he said people use their water for food and fiber i choose to use my water to sell to the oil fields who's taking advantage i don't see any difference. i mean some of the metaphors are stupid so buck buck wonder there is one of the stupidest people in texas and that's saying something you know this guy is larry back. he's a friend of buck wonder he's the stupidest man in texas again here's the sinkhole of stupid up in pennsylvania where the marcellus shale gas is being exploited now and this is leading to energy independence a low cost they said and sticking it to the russians and sticking it to their meaning in the middle easterns right this is what americans think well fracking boom could lead to a housing bust the article they talked to bob benjamin who's a local broker and real estate appraiser in pennsylvania and bradford county pennsylvania where sixty two thousand residents live above the marsh marcellus shale gas reserves he said when benjamin fills out an appraisal for a lender he has to know if there's

a fact well or an impoundment lake on or near the property i'm having to explain a lot of things when i give the appraisal to the lender they are asking questions about the well quite often when this is it turns out to be a big problem because ninety three percent of the people in bradford county live above this marcellus shale gas or near a well so lenders national lenders like wells fargo are refusing to lend against this because they're saying that this is going to be a collapse a sinkhole of of mortgage value because these properties are going to be difficult to sell well fracking requires two resources water and credit. and we've hit peak credit we also have peak water and to make up for the loss of credit or the peak credit constraints of course central banks are continuing their quantitative easing which is to flood the money the system with more money which is causing inflation that inflation's unreported by the same statistical so if history and lying this is what they do watch is. there to get that in the board meeting that's what they're thinking and then again you live in

a sinkhole of stupid next to some stupid person who sells the rights to halliburton or some natural gas company over in america and real estate experts say another problematic trend is that when homeowners insurance policies do not cover residential properties with a gas lease or gas well it all mortgage companies require homeowners insurance from their borrowers so here you have this in pennsylvania people being denied homeowners insurance because they live near a well they've had explosions at some of these one of these houses exploded. vanity fair actually talked to some of these people in the same area and they talked to a couple who have a young child and they sold the rights for twenty five hundred dollars to some company to drill on their land well they their daughter fainted in the shower because of all that me thing on the water so now they've lost a sinkhole of value in their home they can't sell their home they still have a mortgage it's worth zero nobody will buy it for any price and this is the simple stupid what you can't can't get insurance now one of the basic tenants of

capitalism and the idea of private property is the ability to have insurance look at warren buffett is entire empire is built on an insurance company called berkshire hathaway without the ability to insure there is no such thing as private property and there is no private property and there's no such thing as anything other than anarchy and failed communist attempts to do socialism and collectivism i don't know why i should. point out the obvious oh that's right we're dealing with . the sink hole stupid i'm sorry i tried to fill in the blanks just you know continue continue continue with the same call stupid well you hear we have it this over and over we had it with the derivatives as i said we have it with these people who shout the loudest who say we want cheap energy and yet ok this family that got twenty five hundred dollars and maybe their natural gas prices went down over the winter but their child was passing out in the shower she was like sprawled out on

the ground they said like passed out said if i was an evangelicals i saw that she was speaking in tongues or she was experiencing ecstasy i don't know it was the natural gas leaking into the water because of the drilling that they sold their child right for twenty five other bucks. good think it is to go all stupid jack. fill in the blank all right stacy i would think she was going to cause report think you were x. six it was like a half whole lot more. welcome

back to the kaiser report i max kaiser time not to go to mass just sits and speak with chris martenson of pig prosperity dot com. chris welcome to the kaiser report thanks max it's good to be back all right chris. in a recent peak prosperity dot com you write of the four signs that we are in a dangerous bubble territory i'm assuming that means dangerous bubble territory in the stock market tell us about it well it's a dangerous bubble there it's also a really dangerous bubble in the bond markets the quantitative easing efforts across the globe all the central banks they've driven up asset prices everywhere of course they haven't gotten the growth that they've been looking for so what do you

have what do you need to have a bubble will you need to have over priced assets that are well beyond the ability of incomes to sustain them whereas our income g.d.p. is not coming back and certainly not in europe not in japan not in the u.s. and so we've got overbought markets dangerously overpriced on both the equity and bond side so if you like rising stock prices and falling by the yields you're going to hate the opposite it feels like that's the shift that we've just gone through here well chris it's interesting because the policy makers in washington as well as here in the u.k. they talk about a recovery but we haven't seen any recovery in jobs or wages or bank reform or any kind of reforms that we would hope to see so it's an interesting kind of talk about this misuse of the word recovery because they are equating recovery with a bubble just like in the u.k. now they equate journalism with terrorism they also now quake bubble with recovery

those two don't go together correct that's absolutely correct we've got the very best a to stickle recovery the trillions of pounds euros in dollars can buy but it's just it's a testicle recovery i mean we're looking at some head nine g.d.p. numbers maybe some corporate earnings but gosh you look at the corporate earnings situation if you peel back the covers just slightly there you find all kinds of non gap reporting is being allowed now when you look at unemployment you. peel back the cover slightly you find out that part time counts the same as full time in that part timer more than three quarters of all jobs that have been created such as they are when you peel back the covers just a little bit on the underlying economy you discover that it's really not all that strong in this is with really really historic levels of quantitative easing in deficit spending so we've got monetary policy fiscal policy they're both pushing and pulling as hard as they can it looks like japan to me circa one nine hundred ninety to two thousand our let's talk about japan for a second because i really am curious about what's going on there the nikkei is up

seventy five percent on this massive money printing from the new leadership there at the same time they've got the fukushima nuclear disaster which has just been upgraded officially by the government three hundred tons of radioactive water being dumped into the pacific ocean people are starting to realize this is a quite interesting scenario imo is the fukushima there going to be is there a connection there because if they've already shut down all their atomic energy plants and they're incredibly dependent on foreign energy they have known internal source of energy isn't there potentially append a prick care i mean they've already had twenty years of a zombie economy now the fukushima is really escalating where are we at in the cycle of japan well you know economists would like to tell you frankly she was a good thing is anything destructive is awesome because you get to spend money fixing it but realistically fukushima is going to be an extraordinary drain on resources partly because they have to import all of this energy to replace the lost

nuclear power but they're going to have to spend a lot more than they have trying to fix that mess that it is fukushima i've read reports that there are now radio isotopes that are being discovered that are only consistent with vision meaning that there's some sort of a reaction still occurring most likely almost certainly in whatever that korea mess that's that's escaped they don't even really know where the reactor cores are at this point time. they just know that they've got lots and lots of very very high radioactive water leaking out all over the place they can't contain it they can't control that in if they do have a continued fission going on there's no way they're going to be able to cool that down it's creating more and more heat it's creating more and more radioactivity it is bar none the biggest industrial disaster we've ever had it's unfolding it's continuing to unfold even though the media's really largely put it to the side it's far from fixed and it's going to take forever i think japan look at them with over two hundred percent debt to g.d.p.

they're going to have to spend a lot more government money go into debt further to try and fix this thing in they're going to get really no benefit economically for that except maybe in the statistics but let's call it what it is it is a complete continuing disaster ok way much and they could go even deeper into debt but at some point somebody one of these sovereigns is going to be on a ball to keep the spondee scheme going because they're all by each other's debt as part of this collusion between central banks that are hiding the fact that none of them are generating any internal growth so they're just buying each other's debt and bailing banks out and praying statistical well being even though the underlying economy and the underlying citizens are the case of the u.k. the underlying subjects' as they're called here they don't have citizens they have subjects' their quality of life is deteriorating and the real inflation on the ground is going up seven eight nine percent a quality of life as is collapsing in the u.k. and around the world now speaking of energy oil prices are triple digits in two

thousand and eight many argued oil would collapse back to twenty dollars a barrel and stay there they were of course wrong are high oil prices going to stay high in your thought chris martenson oh they have to if they dip much below eighty dollars a barrel you're going to see a complete cessation of drilling in the so-called miracle shale plays out of north america which is the only place that show plays are really being prosecuted this. the rest of the world operating on conventional oil for the most part as is the us and i mean to put it in context with the us getting maybe a million and a half barrels per day out of shale plays nothing to sneeze at but it's it's really a drop compared to the more than eighty million barrels a day of oil that's being pumped out consumed worldwide obviously if we did have a dip in prices we would see ultra deepwater drilling stop we would see shale play stop we would all of a sudden run into a supply squeeze so the price of oil is really telling us that yes supply and demand are a kind of balanced out here and this is what the price has to be the world is still

not producing substantially more oil than it did in two thousand and five china's consuming more and more every year so is india that's the nature of the situation so if anything the emergence of the shale plays in all of these heroic drilling efforts tell me that peak oil is a very real phenomenon and it's here to stay and we're just going to have to deal with it down right now chris by a shell it talking of course about fracking and ls talk about fracking for a second because they have they're discovering for example in texas where you've got here it's fracking operations they have to stop fracking because they ran out of water so all of the global warming and climate change that burning fossil fuels has created over the past ten fifteen twenty thirty forty years has now evaporated all the water that you would need to frack to get more energy to burn so you've got the negative feedback loop that looks like what paul watson of the sea shepherd calls the economics of extinction which i really like that phrase but going forward

looking at this a little bit deeper cress insurance companies are now refusing to provide homeowners insurance to those near fracking wells so here you have a complete breakdown of the notion of private property because you can assure your property and more again because of the unsustainable unreliable destructive fracking is capitalism about to go bust chris what do you think well capitalism does rely on endlessly increasing amounts of energy not. just energy but cheap energy and one of the things that fracking was supposed to give us was endless quantities of cheap energy obviously we've already talked about it's not cheap but now we're just starting to see that the p.r. campaigns wearing off a little bit some reality is starting to come back in we're starting to understand there are real externalities real costs associated with fracking there's huge amounts of damage to roads roadways infrastructure something else that needs to be mentioned as texas is reverting a whole lot of formerly paved highway vhs to gravel because they can't afford to continue repaving them as these eighty thousand pound fracking trucks destroyed

them so we're seeing all this infrastructure wear and tear we're seeing obvious huge impacts on the water use because they're pumping it down for the fracking itself we're seeing disposal issues of the blow back frac fluids that come back up where they put all that sometimes it gets dumped on roads and now we're actually starting to get first confirmed reports of yes fracking does sometimes contaminate wells and ruined properties and the water tables under them and so of course you know insurance companies as you mentioned they love to insure stuff unless they think they're going to have to pay out on those. things that they have insured and they've wised up and said you know this is a big risk we've analyzed it and we don't think that we can realistically assess this risk so guess what these are the same insurance companies that will insure you if you live in a flood plain and they've decided they can't take the risk on fracking that tells you something about where we are in the story i have to say the level of journalism in reporting an investigation on this again much better in the blogosphere that in the mainstream press the u.s. department of energy and the e.p.a.

that are supposed to be monitoring these things i think are doing the same thing they've done with the in the collapsing b. colonies they've basically caved in to industry side of this whole thing and they are telling the industry story so i guess the insurance companies are giving us an indication of what other corporations think about fracking at this point yeah i want to stand fracking for a moment because it. it's becoming big here in the u.k. and they left or they greens as they call themselves what argued that they are doing damage to the environment and the environment needs to be protected and then the right wing all say well we need to become more energy independent and we need to make sure that people don't suffer fuel poverty during the winter and they have this debate going on but what's missing from the debate is that the

economics of fracking suck the amount of energy it takes to that goes into fracking in many cases what we found the united states is greater than the energy you get out so you have more b.t.u.'s british terminal units to to frac then you're getting out of the ground so there's a deficit there's an energy deficit which is made up with debt so the debt u.k. is going to go up for the wars capital intensive so for heading into peak credit because all these banks need to be bailed out again there's no money to frack anywhere in the world either it's a very capital intensive industry chris martenson well you've got it exactly right i think both the greens and the rights are missing the most important part of the story is well listen even if we agree we're going to go in we're going to frac we're going to pull out what would be to use we can hopefully within the slight net positive where do we want to be when those run out because one things about the shale plays is they deplete extraordinarily quickly you take a single well within three years it's producing maybe ten maybe twenty percent of what it was producing when you first open the wellhead and so guess what we control

we control like mad the united states plugged in twenty five thousand wells last year in managed to keep everything just about horizontal for the year and so there's this huge effect of just drilling drilling drilling drilling drilling that's fine we still need to have the conversation which is we're pouring capital into this where do we want to be when these things run out and then we'll just like every finite resource and that's the conversation piece that's missing because if we. wanted to drill pull all this stuff out and build ourselves a new configured society that could live quite peacefully and wonderfully well in those remaining fractious items run out i'd be all for it but we're not we're saying we're going to frac so that we can support having more jobs and more s.u.v.s sold next year more cars on the road because we need more economic growth it just it's and idiology it really has no future that's the part that drives me nuts in this story chris lawrence and we are out of time so we're going to say goodbye but thanks so much for being on the kaiser report my pleasure thank you and that's

going to do it for this edition of the kaiser report with me max kaiser and the lovely and talented stacy herbert i'd like to thank our guest chris martenson of peak prosperity dot com they have a fantastic pod casts that i listen to all the time with great guests if you like get touch with us just tweet us a kaiser report and the next time bio. emissions free cretaceous free. butcher free. range month three. three. three. three books clothing videos for your media projects and free media done to our t.v. dot com.

it was a. very hard take. to get there. that are back with rick perry.

coming up on politicking with larry game c.n.n. crossfire co-host ben jones and the blazers amy holmes face off plus a great new book on washington naming the town black it's called this town will be off the mark leibovit it's all next on politicking the larry king. show them to this week's politicking we start with democrat and former white house environmental advisor and co-host by the way of c.n.n.'s new crossfire show van jones who joins us in washington also joining us is the independent and host of blazes hot list amy holmes.