today i'm sure. welcome to the kaiser report imax guys are going to push this back and once again his deadly tentacles are everywhere during the cold war the communist octopus represented the evil moscow vite octopus with its marxist leninist communist red tentacles enveloping and strangling the globe know your communist enemy the propaganda posters war back then the assignment in law has been where merry band of jihad these were called freedom fighters today bin laden's devilish band of giannis are terrorists who hate us for our so-called freedom and the communist octopus is the good guy there to protect us so-called freedoms through the very same tentacles

enveloping them strangling the globe with his all seeing now benevolent but still red eye indeed gummy puss is the new logo for the u.s. spy satellite launched by the national reconnaissance office nothing is beyond our reach warms the propaganda posters stacey stacey stacey this is supposed to be reassuring nothing is beyond our reach look at this poster here this is from the n.r.o. the national reconnaissance office and you know nothing is beyond our reach and the tentacles of the american octopus extends all the way around the persian gulf so we're going to look there at the military operations there and the peak oil there solar would be cheaper us pentagon has spent eight trillion dollars to guard gulf oil it has cost the united states eight trillion dollars to provide military security in the gulf since the one nine hundred seventy six according to roger stern a princeton economist the us has spent as much on golf security as it spent on the

anti or cold war with the soviet. not to post logo figures just to you know kids having a laugh because they hire directly out of mit and these other university stanford and these are twenty year old twenty two year old hackers and they see the fun that's going to. be for example who calls the vampire squid to describe goldman sachs and they thought you know be fun to make the logo a giant octopus and even though it's been used over the decades to be depiction of all encompassing on the present police state or banking as they're known now and you know as far as the second part which is the which is the second part that eight trillion dollars we've spent on securing the gulf oil reserves now the reason is the strait of hormuz we're trying to protect that and the argument is looking at

the fact that we've spent eight trillion dollars which would of course pay down half of our national debt in the united states it's also relying on the fact that iran itself will be totally irrational mad men with without thinking that they themselves don't need the income from oil that they themselves would not suffer from oil. being blocked from exiting the strait of hormuz now finally the department of defense responded to a freedom of information request about actually how much oil where does the oil go that leaves by the strait of hormuz where is that oil going to and why are we spending eight trillion dollars are we getting something back in return well japan receives twenty point one percent of the oil that flows through the strait of hormuz china fourteen point four percent india thirteen point two percent south korea twelve point nine percent and the u.s. nine point eight percent so you see the majority is going to asia it's not even

coming to the u.s. the u.s. is collecting less than ten percent from there we're paying for a hundred percent. of the protection all those military bases i showed you in the map that the tentacles of the map around the persian gulf right but let's keep in mind the circular nature of the oil business and the global bond of business because japan is the has banned from time to time the biggest buyer of u.s. government debts to china so too the other countries on your list and that's the whole petro dollar standard that came in in the one nine hundred seventy one era after nixon closed the gold standard so there is a quid pro quo there's a symbiotic relationship and oil is still an enormously dense substance where you can get enormous bt is burning off oil in this kind of a freak sumps and so if you think about it and now unfortunately the credit cycle has peaked and the peak oil cycle has peaked and so now we're headed back into

a war probably and i see china and japan as i predicted six months ago or starting a hot war as i knew that they would pretty much all were exactly way just talking about the credit markets of peak oil markets of peak so it's a world war three probably japan and china will get at it and it's as as night follows day when you turn off the oil and credit spigot simultaneously going to get a warm there's no there's no doubt about it well they do point this out in this article that they're saying just like with the roman empire it was very difficult to manage the extent all the edges of the empire and here in the u.s. has deployed all of their military resources to one region because they want to protect this oil. as is noted however it china has noticed that because of that they've not only ignored latin america but also asia the asian region major general zinni as you director of china's navy information committee noted that america is bogged down in the gulf and quote it will take the united states

a fairly long period of time to return to asia anti-terrorist wars will. constrain u.s. power china needs to grasp this strategic opportunity firmly plough no generals in june is making a good point. the geo political nature of trying to support a multi hundred trillion dollar bond bubble with bond prices at a multi hundred year high is going to cost the beneficiaries of that bubble principally the united states and the united kingdom dearly and now that we're entering a war let's look let's get something straight here at the end of world war two america had an enormous debt to g.d.p. but they just want a war and they were set up for the one nine hundred fifty s. and the american century america is now double or triple the indebtedness that it was at the end of world war two inclusive of all unfunded liabilities not just their national debt and they're about to enter

a war they're just starting to enter a war completely in feeble and crippled by this debt that's been used to finance this believe a ball well transfer from the bottom ninety nine percent to the top kleptocratic class of. psychopaths the other point noted about this eight trillion dollars spent some military operations defending the straits of hormuz to make sure a net oil flows through there is that seventy percent of oil goes to feeding cars for people to drive to walmart or dunkin donuts and it's an absurd expenditure but will we ever ask the population well why don't we build public infrastructure projects instead and get people off of cars they're like no we don't have the money. but they've spent they don't seem to care or notice that we spend trillions and trillions and trillions of dollars for into a billion dollars

a year just on the gulf region alone right now a military operations purely to secure the oil reserves well this is the magic of the automobile to connote. freedom particularly in american pop culture the automobile has always been the icon of freedom i see that ford motor company is going to market a mustang for the globe so that they can export america's idea of the open road and freedom to places like china where the air pollution is so thick it's wafting into the lobbies of buildings and people are falling dropping like flies because of the mustang because a ford motor company environmental hole cost proponent and propagator well you know we started the show with nothing is beyond our reach this new satellite from the national reconnaissance office except for china i think it's like crouching tiger not so hidden smog from bloomberg news shanghai orders cars off the roads af ter

pollution soars beyond indexable levels shanghai order vehicles off the road in factories to cut production after pollution reach hazardous levels as hong kong announced plans to introduce an air quality index that assesses health risks from smog so the u.s. consulate in shanghai so noted that the air pollution index surged past five hundred to quote beyond index category four this is where guys like paul krugman are homicidal maniacs because they say there's no inflation and yet the trillions of dollars of money printing go to china where the environmental standards are nonexistent and they create the smog has beyond even the index and is now causing kids under ten years old to get cancer so that's you know paul kick paul krugman is responsible for that cancer that child in china because he's the propagandist who's trying to use the new york times to convince people that there's no inflation due to this money printing but the other thing is you know george osborne the chess

with a checker here was recently in china and he from china berated the brits for not being more like the chinese but here is the true. cost of our production model outsourcing our pollution of outsourcing our production and wealth creation over there is that you know all these. stupid environmentalist as they are called on fox news in america introduces environmental regulations and because of them we don't have jobs in america well this is the trade off you have either dropped dead on the street at thirty five years old due to the pollution or you figure out a smarter way of doing things you figure a smarter way of controlling the strait of hormuz rather than spending eight trillion dollars a year there are spending eight trillion dollars of pollution costs in china but the combustion engine became obsolete eighty years ago the fact that it's being

subsidized and kept alive this long as a testament to the lobbying powers of the big oil companies but george osborne if you really want britain to really be like china you should reverse the anti-smoking laws and let people smoke all day and pubs in there all all day long because then you'd have more something closer to china you know he you know back in the one nine hundred fifty s. something like twenty to twenty five percent of household income in britain was spent on cigarettes so people were puffing themselves like gemini's and you know puffing themselves to death if they want to be like chinese and britain yourself to death george osborne you'd be like china give everyone free cigarettes what is this what is on more subsidize an airlift or a drop of a billion marble cigarettes on to the city of london and all over the u.k. so the british people can smoke themselves to death so they could be more like their chinese compatriots well that's an individual choice how about on and something affecting every single person around you the thames is quite clear that they're actually fish and sea horses growing in there again so why not allow us to

just dump our toxic pollution in there because then it would be more cost efficient to make you know various industrial products here steel plants could reemerge along the thames as long as we could just dump parts. oxic waste in there why not let it go this is where the chinese industrialist come to hang out on the thames in the city of london it's nice and clean for them it's good for the chinese living standards in the u.k. are collapsing according to a recent study well according to then numbers now from the office of national statistics yes living standards are dropping at the fastest rate since victorian times when of course we used to have toxic pollution dumped into the thames and it was a no go area but now for the chinese living in jordan and lake there are we got to go i'm going to go dump some sludge into the thames say to us i can have all of your. money.

you are a. very hard to take. once you get on here. long have you ever had sex with her right here. with. the. there's a medium leave us so we leave the baby. by the sea potions to cure and play your

part of the musical. questions that no one is asking with the guests that you deserve answers from it's all on politics only on our t.v. . welcome back to the kaiser report imax keyser time out of turn to businessman investor commentator and journalist lame alegate other telegraph laim welcome to the kaiser report max good to be here could see you now haven't seen it even though our ties clash modern seasons kokanee when we ripped up the children omics economics former member it was fantastic there we were in the in the southeast of

of oil in the sunny south east as the locals call it what an amazing combination on the williams's directorship get together some economists from all over the world and have them chaired by sharp stand up irish comedians surely it's only a matter of time before kokomo mix comes to london was fantastic because they popularize economics in a way that the average punter can understand it so we have you here today to help us get through some of these comments by the chancellor george osborne who gave his autumn statement last week and he says it's boom times but foreign trade and fixed investments are declining household debt fuel consumption is rising and the worst drop in living standards in the u.k. sense the victorian era lim what's going on the first things those about the autumn statement max is that it was late it was an early winter statement rather than all some statement it was also edged forward in the diary because george osborne and

david cameron of course was go to china in order to raise some new inward investment for the u.k. so that just shows you where the balance of power is but this is always going to be a political trial for osborne he's had the biggest upgrading growth for calls between fiscal statements for fourteen years in this country what really worries me is that even though yes the deficit is falling the debt in this country is massively spiraling and we must service all that also it's the wrong kind of growth you know the estimates for consumption were more than doubled between the budget in march and the autumn statement that we've just heard while the estimates for. fixed investment was slashed fixed investment in this country is now going to fall by almost two and a half percent according to the office of budget responsibility so this is kind of a cappuccino recovery there's lots of froth on top it kind of gives you a quick hits but where's the beef this kind of stood out here the the worst drop in living standards sense the victorian era here in the u.k.

now we've been saying on this show for a while and i've been reading your column for the telegraph and i know you have been looking into this as well that you've got this interesting economy here in the u.k. where it's money printing or debt creation is servicing the very top but the vast majority of folks here in the u.k. are experiencing the sharpest drop in living standards sense victorian era talk about that a little bit well of course here in the u.k. the bank of england has almost quadrupled its balance sheet since two thousand and nine the federal reserve's an increased its balance sheet under q.e. almost three fold both the big anglo-saxon economies are of course out japanese ing the japanese now and it seems incredible to me that yes we do have this increase in nominal g.d.p. and we're looking at one and a half percent growth for twenty thirteen according to the office of budget responsibility but max you know the increase in government borrowing is bigger than the increase in overall g.d.p. so in some senses the whole g.d.p. increase is just government borrowing and of course a lot of those guilts almost

a third of all outstanding gilts now but more of course at the margin all bought by the bank of england using. virtually printed money so in some ways you know i'm really glad that the u.k. growth outlooks looking up i'm delighted of course that unemployment isn't nearly as bad as the recessions of the early eighty's and early ninety's that i grew up with but you've got to worry about the sustainability of this recovery now given that we are floating in the u.k. on a wife of prince of money what how would our kilts market look if we weren't doing q.e. if we hadn't done. q.e. to the extent that we are and what happens max you know personal investment just peaked in this country it's now at a record high a lot of the sexual consumption is coming out of distance saving and also extra credit to clean they're up to christmas what happens when interest rates start crawling up wood from their current historic lows and this isn't about the bank of

england moving too early in the end if the market wants to impose higher interest rates the market will impose higher interest rates there's nothing that any central bank can do about that whether it's good ice hockey looks like a rock star it doesn't matter in the end the market will impose higher interest rates my concern and i'm trying not to be a cassandra i'm just pointing out the realities that a lot of mainstream commentators seem to be ignoring my concern is what happens if households stress test their personal finances three four five percent base rates of interest which then of course will kick up in the commercial marketplace where people actually borrow and so they talk about living standards falling sharply you just look at a couple of numbers as you point out debt is growing faster than g.d.p. another interesting number is that wages are way below even the government's stated inflation rate which is considerably less than the actual inflation rate if you

include things like food and energy so we tween those two having declining wages and housing. and that if you put on all together in your living standards start to collapse and so the policy therefore from ask warren crowe you have to ask yourself do they are they tone deaf they don't understand the damage that they're doing are they just service saying a few folks to get reelected i think the answer is self-evident i want to move on or that the russian economy and let's talk about that for a moment that the ministry revised down their economic forecast for twenty thirteen to twenty fifteen now you live you've lived in russia in your bed of an expert on the russian economy. to the extent that anyone it's yeah it's a it's has been ok up until recently you've lived there you've done business there so let's get your insight a little bit on what's what's going on the russian economy because we don't talk about enough on this show sure ok this is this is the largest retail market in europe now this will be the biggest economy in europe by the time my kids hit the

jobs market i'm oldest daughter is thirteen this is structurally a very sound economy if you look at the government balance sheet and household balance sheets russia has total sovereign debt of ten percent of g.d.p. so its total debt is pretty much in the ballpark of our annual deficit we're adding as much each year as they actually have a net terms of course russia is a net credits of the world having defaulted of course back in the late ninety's a tremendous turnaround basic rate of income tax is thirteen percent there is a lot of very interesting business going on in russia and there's a hell of a lot of foreign direct investment not least from u.s. firms and also from german firms the brits have been a lot more reticent i must say in recent months of course russia has slowed down slightly it's now looking at one to two percent g.d.p. growth this year as opposed to the sort of four or five percent that it's averaged over the last ten to fifteen years russia does have an image problem that's partly

externally imposed because a lot of western people have lots of cold war hang ups i wanted to say here start leo. also russia shooting itself in the foot and not really being diligent enough about trying to polish its reputation and look more open to foreign investors you know if you want to stop bank in russia it's a lot easier than saw your bank in china or india or a foreigner if you're a foreigner to the top five banks in russia or a foreign lot of the largest retail chains foreign tend to be french and german again role of the british it's a lot more open than it looks it's going to account i've certainly had really good experiences living the over the years but it does have to work harder to sell it so well my perception of the russian economy is that when oil prices are high everyone's really happy and they're they're not incentivized to change diversify into other areas economically speaking because they are very reliant on gas and oil and then when prices are low then they're feeling as well we can't change now

because we have to be have to deal these low prices so as a result they're caught they stay locked in this petrol driven economy and there are unwilling to diversify or haven't diversified although we have now seen them diversification into more of a technology space and they are doing some some great things in the tech space but talk about the image probably just mention. you know here we are told from let's say the guardian newspaper about folks like harvest coffee and who's held up as a. fellow who's being subjected to all manner of persecution by the russian government there is a in a in a competing view to this can he speak on that show just only will point the russian stock market isn't the economy yes the stock market or the index the main index is done i said bolling the actual stock market isn't there's a lot of middle oh it's the only gas but all in gas now is only sixteen percent of

the economy it was forty percent back in two thousand and three ok that's about the same as. as norway here the the russian model is to have yes lots of minerals and resources and currently you know we go from seven to nine billion people in the world i'd rather have the minerals and resources the not have them on the other i mean. we see more remarkable growth as well which absent about the retail side show well you have the largest retail market in europe as i said by almost a large retail market in europe by dollar value or probably i would take germany this year it's already the biggest market in europe by dollar value for cars white goods juice. beverages of all kinds that's why you have got under the radar so much f.b.i. so much investment model is kind of an australian or nordic model you have the resources but you have lots and lots of smarts as well and you move up the value chain that's clearly what we've been saying but of course most foreign investors

who read their f.t. in the economist all they focus on the equities and a lot of the equities are focused on oil and gas but beyond that there's lots of other investment opportunities what i say about quarter koskie is this the vast majority of russians. are pretty happy that there's been a clampdown on the oligarchs you know in the late ninety's khodorkovsky and some of the tried to to buy the duma and prevent punitive tax regimes all oil and gas going through the tumour in the end those punitive tax regimes are lower gas by foreign companies and domestic companies to go through you do have very high taxation on oil exports in russia that money has been used largely of course over its disappeared this is the real world this is a nascent capitalist society but the bulk of that money has been used to build up the third biggest foreign exchange reserves in the world pay off all the debt in net build a war chest of macroeconomic stability of course russia isn't immune

to image problems from overseas but the reality is that putin was the west. favorite guy in the early two thousand it was only when he started to impose heavy oil and oil and gas taxation that the west just got really upset and he went from being a guy who george bush could look into his soul being public enemy number one let's talk about the deal with iran watch does this have to do with peak oil wiki leaks diplomatic cables show that the u.s. believes that saudi oil reserves maybe forty percent overstated is saudi arabia just not that important any more we've only got about twenty seconds left but it does strike me as crazy that saudi could be pumping twenty two million barrels a day from the car and by twenty twenty five yet that's what all the energy information agency in i guess to show clearly that's not going to happen so they are of a study says leave elegant we're out of time we got to go thanks for being on the kaiser report a pleasure and a privilege and that's going to do it for this edition of the kaiser report with me

max kaiser and stacy herbert i'd like to thank our guest lame allegan of the telegraph code u.k. if you like to get in touch please tweet us a kaiser report and so next time i got the same bio. but would like to do. did you know the price is the only industry specifically mentioned in the constitution and. that's because a free and open press is critical to our democracy allmers. in fact the single biggest threat facing our nation today is the corporate takeover of our government and our civic we've been hijacked right handful of transnational corporations that will profit by destroying what our founding fathers once i'm tom are in on this show we reveal the big picture of what's actually going on in the

world we go beyond identifying. rational. real discussion critical issues facing and if i ever go ready to join the movement then welcome to. the media leave us so we leave the baby. bush and secure. all your party visible. wear shoes that no one is asking with the guests that you deserve answers from it's all on politics only on our t.v. . they look like bounty islands where the locals can enjoy the sun and the ocean. but what was buried here years ago. means these people are suffering the consequences.

how much more poison lies on the this ground. behind this zone there is what we call the callet bank on which there is a deposit of plutonium left by security test which caused the dispersion already and you clyde's despite previous cleaning efforts there remains a deposit of a little less than two kilos of plutonium stuck in the rock and the coral reef about ten meters down yuki attests a never ending legacy on alt. bought

up i'm not a martin and this is breaking the sat so qatar is roughly the size of connecticut but the small persian gulf state is emerging as a major player on the world stage in fact it's set to host the twenty twenty two world cup of course an event this size requires an unimaginable amount of building and labor and that's where nepal comes in is in a country of two million people there are currently three hundred forty thousand nepalese migrant workers many of which have been assigned to world cup construction but according to several reports from these by the guardian the workers face a brutal working conditions long hours lack of pay and wretched living quarters.