welcome to the kaiser report imax kaiser there's a dangerous new idea the news this week and it's called a need bia which is the ability to live without food the world comes from catholic tradition whereby states are said to have been able to live long periods of time without any sustenance but the eucharist as always modern humans have taken this idea to a whole new level of stupidity by following a practice called breath unary an ism rather than eat or drink followers of the area and go pear feeling hungry just go pear thirsty go more err on the plus side this air gulping diet saves time and energy that would normally be spent on cleaning up or washing the dishes on the downside but they soon die of starvation but anyway i know what you're thinking you're thinking this stupid diet sounds a whole lot like central banking and you'd be right when the economy is starving

followers of the central banking diet don't turn to wealth creation for sustenance they go pear yes credit is created out of thin air need a job here's where ben bernanke he does he go bear markets crashing janet yellen just gulps air and just as with breath unerring ism the upside is that a whole lot of time and energy is saved in not actually having to work for a living on the downside many worlds die of starvation. so you see this sounds like an excellent diet. well let's look at this diet of gulping air as applied to central banking first the government dominated bond market this is an article about j.p. morgan's report looking at supply and demand in the global bond market in twenty fourteen and the black and gray parts are government official demand i government and government and central bank buying accounts for one point six trillion more than half of the bond buying so far this year right well i feel this conversation

and evidently moving toward this idea of the eucharist and transubstantiation which was part of the catholic tradition that the we for in the wine are not virtual facsimiles of jesus but they are actually through the process of transubstantiation actual. what can i say that it's all about you and jesus this is jesus so this is what the central banks have taken on as transubstantiation as applies to monetary theory in quantitative easing when they buy back their own bonds. they are recognizing the fact that their activity is not a virtual facsimile of an economic activity but it is godlike in that it is the activity that is the economy itself it has ben bernanke he has become a god head and instead of walking on water he's walking on paper walk in a paper yeah. own work in a paper yeah yeah but i don't think we're going to have

a lousy like moment you know where they put him in the crypt and then he goes up to heaven i think they're going to put this guy into the crypt and the economy is going to go stinko south though obliterate oh well felix salmon looks deeper into this j.p. morgan article in the report about the bond buying and what they find is meanwhile private banks particularly opposite side of the trade while they were huge buyers of bonds of two thousand and seven and two thousand and eight their net sellers in two thousand and thirteen and twenty fourteen more or less completely negating the buying pressure from pension funds insurance companies bond funds and retail investors and twenty fourteen it seems substantially all that demand for bonds is going to come from the official sect there gulping air this is credit creation out of thin air yes yes there go ping air the banks are not playing the game as they have been so the intensity of the feedback loop of fraud is becoming more

pronounced and this is typically what you find at the tail end of a colt's when the cult leaders whether it's the hale bopp comet cult or the jim jones suicide cult when the. deliverance of their cultish behavior does not manifest then mass suicide ensues and this of course is the american economy in the british economy george osborne is a cultist encouraging the british people to commit financial suicide on mass and this is what you see every single day now the. final quote here from felix salmon is quite entertaining as a stylized fact the bond market is dominated on both sides by the official sector private participants might sit in the middle as market makers or try to borrow money here or there but overall what you're looking at when you look at the bond market is government issuing debt and governments buying at what it's called monetizing debt yes which is

a fraud and they don't call it monetization they call quantitative easing but just yellen will be kind of like a remake of robert de niro taxi driver or she's going to be every month at the federal open market policy committee say you done for me you buy it for me you buy it from me. you know she's going to have that hog face stuck in a mirror somewhere you montreux me you know this will be the policies going forward that should go out on a some kind of murder spree and well the thing about breath air it is them is you know you do need sustenance this is why people die because the gulping air parent doesn't mort you need nutrients minerals water and the same thing for the global economy the bond market is supposed to be part of the sustenance of capitalism of entrepreneurial as i'm of you know making thing is i'm so the fact that it's just the government feeding itself and eating itself of the just the government that's why the rest of the private sector is dying well here's the really ironic thing as

we head into the end of the year the two look bull mania is alive and well in the u.s. treasury market whereas bitcoin is actually by comparison solid gold and there's there's no over buying of bitcoin bitcoin is not even begun it's of bull market yet we're just seeing a prelude because it's actual money whereas the bond market is a tool of ball mania the bond market people are actually being the governments buying as you point out like they're go ping air their birth ariens to buy these tulip bulbs of u.s. treasury bonds what do you know what happens of course when you agree then too much air it comes out of hot air on the other end and that's what the bond market looks like to me this well there is the. law. a circus act in france one hundred years ago who could sing the national anthem from his botox after gulping copious quantities of air is covered in ricky jay's classic cars as weapons or was it the

follow up i can't remember but look that up on line and you'll find that this is really an art form and janet yellen of course gives it a sexy angle when she's stripped naked and fly. she laid in her way to quantitative easing in twenty fourteen i can hardly wait well speaking of gas and oil that's the energy to the global economy that is actually the energy for the bond market and all industry that's in the news there's a lot of gulping air there and the f.t. reports that toil for oil industry songs do not add up so rising costs are being met only by an ever smaller increases in supply this is the w.e.o. the world energy outlook published by the international energy agency max and they say according to the two thousand and thirteen w.e.o. the total world oil supply in two thousand and twelve was eighty seven point one million barrels a day an increase of eleven point nine million barrels over the seventy five point

two million barrels per day produced in two thousand only one third of that max comes from conventional oil two thirds of it comes from unconventional crude which is light oil oil sands and deep ultra deepwater oil and they come with a higher cost. the other is natural gas liquids and gels and they come with lower energy density so you're putting a whole lot more money in and getting a whole lot less energy out right so that is the definition of peak oil so if you look at the economics of oil industry the world hit peak oil in two thousand and five which is to say that the economics of the oil industry started to go in reverse in two thousand and five the incremental benefits from the excess cost of extracting energy from planet earth went into decline we hit peak oil all that is an irrefutable fact but like so many other irrefutable facts these days people tend to just dismiss it out of hand because it doesn't correlate with their ideology

based on looking at the world through the prism of their own narcissism and unfortunately we have a global glut of narcissists where the article points out that this capital expenditure cap ex has increased enormously and it's getting exponential at this point talking about two so they mentioned but the sheer scale of the increase is staggering upstream outlays have risen more than three fold in real terms over the past twelve years reaching nearly seven hundred billion dollars in two thousand and twelve compared with only two hundred fifty billion in two thousand that's in constant two thousand and twelve dollars but most of that increase from two hundred fifty to seven hundred billion came since two thousand and five so all the charts it's very clear that peak oil now looking in hindsight exactly did happen in two thousand and five the peak oil phenomenon has been masked by zero percent interest rates because oil extraction is extremely capital intensive and had interest rates been allowed to trade at their normalized rate of five six percent on the ten year

government bond the peak oil phenomenon would be in stark relief because people would understand that they have no money to drill oil any more oil would be at three or four dollars a barrel today but because there are keeping the floating crap game going with these artificially low interest rates they're dry. willing for fraud you know this with janet yellen is a mark carney does he's got his fraud drill these drilling for fraud that he's going deep into the core of fraud to sustain something that's unsustainable zero percent interest rates and taper talk is nonsense you cannot taper a ponzi scheme mark carney knows it he doesn't know it then he's brain dead janet yellen knows if she doesn't know if she's been go up until much air yeah now just to go over some of the figures that the i.a.e.a. provides right now a traditional conventional barrel of oil cost ten to seventy dollars to produce depending on which country are ten dollars is going to be the region with all the u.s. military bases around the middle east it's going to cost you ten dollars a barrel there maybe russia as well is going to be closer to the ten dollars barrel

now let's look at the unconventional crude oil because there were two thirds of our new oil supply since two thousand has come from unconventional zx fifty to ninety dollars a barrel for oil sands fifty to one hundred dollars for like tight oil and seventy to ninety dollars a barrel for alter deep water meanwhile in terms of energy content the n.g.'s the natural gas liquids one crude oil barrel is worth one point four barrels of those rights are saying since two thousand and ten. the. unconventional not off peak oil is costing let's say ninety dollars a barrel to extract that inclusive of interest as being a zero percent when interest rates refine their normalized rate of five or six percent then that the cost of drilling in the tracting will be joined a dollars a barrel and that means that no member for the oil well let's put this into context about how much more cap ex how much capital expenditure has gone into oil

production versus how much has come out as a result all of which means that twenty thirteen w.e.o. has the oil industry's upswing cap ex rising by nearly one hundred eighty percent since two thousand but the global oil supply adjusted for energy content by only fourteen percent. the most straightforward interpretation of this data is that the economics of oil have become completely dislocated from historic norms since two thousand and especially since two thousand and five with the industry investing at exponentially higher rates for increasingly small incremental yields of energy that's right oil shock parts to just around the corner all right stacy however we must go because we are freaking out it's on. max. stay tuned for the second a whole lot more.

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the world. science technology innovation hall believes developments from around russia we've got the future covered. welcome back to the kaiser report imax kaiser time out of turn to the author of black water black water yes it's a book about defense contractors and all their nefarious goings on around the world he's also the main protagonist and force behind a great new film out there called dirty wars about american military killing folks

and they've got a big kill list and they go kill people please welcome jeremy scahill. max this is jeremy scahill yeah there is there is jeremy jeremy what's up he cancelled at the last minute i was going to get a tub of lard but i thought that was not only already done but it was a little bit too right wing i thought a red pepper was a little bit more progressive oh yeah. oh yeah he doesn't come on shows like this anymore he's mr fancy pants is over there oh my god i made a few billion with a big hero my god who's a mystic and the need totally trashed the indian micropayment market as i recall of bunch of other dirty dealings he should be writing a book called dirty debt but pierre oh my god former e-bay founder dirty micro journey micro debt. can go investigate dirty micro debts in india well by the way you know red peppers are have three times the number of mite vitamin c.

you need for the day and also good for pre-menstrual syndrome so i thought that was also very progressive to be read for so for p.m.s. it's an excellent. miller and in some way most fantastic so that was in it so you know we were going to talk about dirty wars and it's opening here it's already been released in america so i was going to ask you know what how it's been doing in america but because we don't have the stats i've just turned to pirate bay so if you look here it is on pirate bay not that i ever encourage going there never but you see there are two hundred fifty five people trying to download from this one seed here so it seems like the red pepper should have appeared on the show because our audience is the sort that would have gone out to the movie and seen it but there's a dirty words or dirty media horse which room are we talking about here well i do know that he spoke at the london school of economics last night and he's appeared

on the b.b.c. in channel four he's done the mainstream media as you say he did say at the elysee according to those people on twitter who were there we have. humanize the people on the end of u.s. missiles and night raids this is what he's saying is one of the themes of dirty wars which is i think also the thing that bano and geldof have done with africa for example they say just showing how pitiful the starving little children are that humanizes them and makes us feel bad they never put it into context where bob geldof will say here in front of a bag of months santo corner food products will say i'll take this because if it saves one person even though it's destroyed the entire economy and the entire agricultural industry there. you know we just need to feel good about ourselves by humanizing these poor starving children bob geldof i spoke to him on our radio show in paris i asked him a simple question about economics he had absolutely no idea the russian ship between interest rates and bond prices a complete disconnected financially illiterate bond of course is

a tax dodger and apparently jamie jeremy scahill is also financially illiterate to the point where he doesn't see the connections between humanizing people on the other end these bombs and how the economics go into it so he's going to be working for pierre oh my god who is destroying micro finance in india apparently because that's going to contribute to the greater good it's my same criticism of greenpeace remember i was over in greenpeace i met with the head of greenpeace gary leopold and i said you've got a hundred million euros in the bank sitting there and the bank loans it to the corporations that you are protesting against your if you want to weigh and disappear you would have a net better result on the environment than doing what you're doing by giving the money to the very corporations they say are protesting so you really have jeremy you know dirty media whores you know the red pepper mountains going around saying well we should unite the people in the other of these missiles but saying nothing about the economics of the missiles and supporting the very very same sludge

meisters who are out there lending money to create the dehumanization of the people on the other of the missiles so here's duplicitous guy who's what do you want you to do doesn't cancel the last second what kind of schmo is this going to go on channel four with john snow can wear some fancy socks going b.b.c. so somebody can mumble something coherent nonsense why is he doing this show talking to the people the people want to know not these fricken nonsensical phone journalist over there on the south bank. well we saw the film because his people invited us they wanted us to go there they wanted him to appear on the show apparently i guess that was he that didn't want to appear once he showed up here but you know there is a good fellow man it does it does. the humanization of the victims it does show the consequences there on the ground and it's quite well directed but it does not mention ever wants i don't think whale doesn't mention oil and that was one of your questions for him which was queen bono like how hat who in these dirty wars who's

making money like how much money is being made and therefore how do we roll it back when we were in the us committed the dirty wars of latin america in the fifty's sixty's seventy's it was the banana republic that really it was about all the agricultural corporations seizing control of that in there so that was hard to stop but how do you know that i would like to know that which corporations are benefiting obviously the oil giants oil is never mentioned though your thought was like this g.i. jane jeremy scahill is a putz out there not really looking at the cause and effect look at what george galloway is doing with the killing of tony blair ok the crowd from the film with the people not the oligarchs he's going to show the connect between the killing of tony blair and the money the killing tony blair is making and you'll be going to the same places but he's looking at the whole picture not just a slice of the picture trying to ride as high horse pretending that some moral deficiency is causing that the dehumanization of the people on the other of these

missiles as if all we need to do is somehow make people morally more aware of their actions and that there will be a magical reconfiguration of this war on terror which is naive to say the least no no no mention of oil no mention of the banks there's no mention of a just b. c. no mention of barclays no mention of j.p. morgan so it's a it's a wrong through afghanistan where the guy looks like g.i. joe and it's visually quite stunning because the filmmakers are hollywood quality visual artists but at the end of the day leaves you wanting it leaves you asking a question like why didn't you actually cover the real story why is it just a superficial story since that film was made that edward snowden revelation. came out and now we know that it's not about the war on terror if you look at the actual metrics of who they're spying on it's very much seems like corporate espionage brazil and germany are huge targets of this n.s.a. spying for example. why it's not because they're economic powerhouses of the

old world in the new world. and that brings me to this next headline from wolf richter seems the n.s.a. spied on me when i lived in belgium and he's talking about these n.s.a. revelations and that handles black covered and they looked at an n.s.a. management presentation from two thousand and twelve and among other morsels the presentation bragged about computer network exploitation see any perpetrated by the agency special shop the tailored access operations were over one thousand hackers are trying to wiggle up the bureaucratic ladder and get noticed and promoted by hacking more deeply and into more systems than the next guy they must be having a blast by mid twenty twelve the n.s.a. have penetrated fifty thousand networks worldwide including telecom networks the implants they installed active sleeper cells so here we have sleeper cells operating around the internet on behalf of the n.s.a.

on behalf of the corporations whoever the n.s.a. is working for so one of the questions was this is like which are the sleeper cells in the middle east and why is that not even discussed the why are the drones killing so many children in yemen why are the drones killing so many in pakistan and afghanistan what are the strategic reasons there and those aren't ever mentioned dirty wars because the cost of the bomb is subsidized by borrowed money through zero percent interest rates and it doesn't matter what affiliation is just that these particular victims of the bombing are the low cost victims in the global jihadi perpetrated by h.s.b.c. j.p. morgan and goldman sachs and that is becoming. as you wipe out the low cost victims of financial terrorism by h.s.b.c. and barclay's and j.p. morgan you're going to have to start targeting people more in your own country to see what's happening in the u.k. or the u.s. financial terrorism like we saw r.b.s. the world bank of scotland a couple down

a southport were financially terrorized by osborne cameron and royal bank of scotland and that's the point that's the dirty war the dirty wars it's dirty money it's dirty money war so that's why the film at the end of the day lacked a lot of it because it failed to get into the real dirty financial aspect of what these mass extrajudicial murders it's all about the money you know it to think that it's about some kind of a moral deficiency by some group of people is to not understand that sense more ality doesn't trade on the new york stock exchange there is no morality there never will be more reality and so you can't even start from a place of morality you have to start from a place of sublime three hundred sixty degree corruption that has no beginning or end it's a mobius strip of corruption and it all goes back to the terrorist of terrorists the central banks and anything less is to then to sell out joe blow my mind

e bay founder pierre oh my god force on a big fat paycheck and not come on a show and talk to the people is unconscionable in my opinion it shows a lack of professionalism and journalistic integrity well like i said there were dirty wars across latin america and this film is like just looking at the corpses that had been thrown out of the planes by us back to taters there and saying we're trying to humanize the victims here but without understanding why were people being thrown out of planes why were nuns being slaughtered across central america why why was that happening the context of course would have been at the time i suppose conspiracy that you like dirty conspiracy theory that any corporations that they would have any interest. throwing people out of planes so you don't have to dress up like a soldier and play soldier games in afghanistan you know and spend a lot of money on plane tickets and harassing people to death just going to wall street i mean this is why i my number one journalist in america without a shadow of a doubt is matt taibbi because you understand the key problems and he writes about

them in ways that people can understand that's why he's on our show often because he understands that were on the side of exploring absolutely the inner machinations of the true war being perpetrated by the two terrorists did you catch them in a just b. c. barclays bank of scotland lloyds j.p. morgan goldman sachs that were they were they factor into the dirty wars and this is just a big you know to travel video what he should be like that guy does cooking around the world at the port anthony boarding should be germy scale should be doing some couscous and cabin and doing a cooking show for all of for all we care about him digging down into the true causes of what's happening and there's all this true dirty war instead of roadkill like there's that road kill cook chef you have on chef it should be drunk don't you know we had our mistake no there isn't a pretty good have another outfit on it in other words your guy and more mascara

and he could be like oh it's don't kill you know as actually i'm going to give him this red pepper and we're going to send it to him as a first episode of this traveling. right it's cook wars with jeremy scahill ok well stacy we got to go. and that's going to do it for this edition of the kaiser report with me max kaiser and stacy everett i want to thank our guests the red pepper standing in for the journalists known as jerry scale and so much time oh by the way if you want to reach us on twitter you can use kaiser report. but you know . quite often countries rich in natural resources are the poorest africa as a colony it's a colony of the big corporations it's a colony of someone's home leaders who are under the thumbs of the big corporations

so they have to beg from the world bank's development of social programs goes to pay back debts whole country is drowning under the amount of debt that they had and so every year they would borrow money. and they would use that same amount of money to pay back. all that money really. the wages of debts. torch is on its journey to such. one hundred twenty three days. through two thousand nine hundred towns and cities of russia. really by fourteen thousand people or sixty five thousand killings. in a record setting trip by land air sea an outer space. a limp torch relay. on r t r t dot com.