bit of a hand as to the why in the video he says i lived in america i know how it is to figure out the get out abbey you never happy another syrian god tourist from britain spoke with c.n.n. and said life was easy back home i had a life i had a car but we see all the around us evil we see pedophiles we see cry we see wait you get the picture is just hard taurus to go over to syria where our war is actually raging where they can actually express the outrage they feel from a life of fake happiness and superficial concerns the syrian conflict is not their war but it's a war going on right now that speaks to their inner rage somehow as the row famously wrote the mass of men lead lives of quiet desperation maybe these tourists found god as a way out of that desperation that we all feel to some degree i don't believe in killing innocent people ever but i do understand the want to fight the worship of

money and materialism that drives our golden calf society if our society could focus a little more on the internal rather than the acts. maybe we'd all feel a little less desperate and there'd be fewer people desperate enough to commit the heinous act of jihad as tourists or as residents tonight let's talk about that by following me on twitter at the resident. and this site. i think corporation kind. because. i'm right. all about money and i was actually sick for a politician placed the balls to sleep at night. just

two. days. welcome to the kaiser report imax kaiser we must stop worrying and learn to love the frac because mr president we must allow neither a mine shaft gap nor a fracking well gap stacey max nobody's minding the gaps out there because this first headline reads how fracking is blowing up balance sheets of oil and gas companies now the u.s. energy department e.i.a. that's the energy information agency looked at the data coming out from the oil and gas companies regarding fracking and this is from their own report you can look it up on the e.i.a.

dot org dot gov actually and it says based on data compiled from quarterly reports for the year ending march thirty first two thousand and fourteen cash from operations for one hundred twenty seven major oil and natural gas companies totaled five hundred sixty eight billion dollars and major uses of cash totaled six hundred seventy seven billion a difference of almost one hundred ten billion dollar yeah well we've been saying this for a couple of years about the fracking hoax essentially fracking is a hoax that's not an economically viable way to explore for energy the upfront costs are so enormous that the possibility of making a net profit from this business is zero it does so ever cause incalculable environmental damage it does in fact add to the indebtedness of the country whether it's the united states or now the united kingdom which is going into fracking

they've opened up half the country to fracking and the people in the u.k. are not being told that their energy prices will not go down their debt will go up and there is no profitable so. aereo. and any and any scenario relating to fracking it is a hoax in terms of business well let's look at the parity of that it is according to the i.a.e.a. the energy information agency of the united states and in fact you can see from this chart this is the major energy companies cash from operations and uses of cash the blue line at the top is the uses of cash i have much they're spending their burn rate the green line at the bottom is the cash from operations as you see they're moving further and further apart even in this is zero percent interest rate world they can't afford this and the article on wall street dot com points out that in two thousand and ten the hole left by in this gap by fracking and what they were earning and what they were spending was only eighteen billion dollars and then for

the following three years it was one hundred billion dollars each year and then last year it was one hundred ten billion dollars. the folks that are involved in the fracking industry do not get paid on the any profits that are derived from this industry they get paid on the amount they spend if they spend a lot they get paid a lot but it doesn't mean that the industry makes profits they're not paid on profits exactly like the hollywood industry where they get paid on the size of the budget if you're a producer and the budget is two hundred million dollars you get paid on the size of the budget you do not get paid based on whether the movie makes money at the box office or not this is why movies rarely make money at the box office because there's no incentive to make money the box office you make money based on the size of the budget going into the project similar thing with fracking you get paid based on the size the budget now unfortunately unlike the movie industry we're talking about an industry that injects carcinogenic into the water supply so people in

britain what you say i see you have your head down now i know but we know about all the pollutants and stuff like that but that's not the important part of the period of cancer how we know there are only british people who cares about them now i know that happens but why. here we're going to talk about just the parity that it is that you cannot it doesn't add up none of it adds up as you said to fill this hundred ten billion dollar hole that they dug in just one year these one hundred twenty seven oil and gas companies went out and increased their net debt by a hundred six billion dollars but that wasn't enough to raise more cash they also sold seventy three billion dollars in assets and left them with more cash borrowed cash that is on the balance sheet them before which pleased analysts and it left them with a pile of additional debt fewer assets to generate revenues with in order to service this debt so what i'm saying is there are many there greenpeace and all these environmentalist have covered very well all of the environmental risks and then the carcinogenic but maybe hipsters like exploding water faucets but here on

this simple mathematics of the wall street angle to this is that the fact that they're adding so much debt is actually driving more money into it driving more wall street hysteria into it and it's becoming more and more of a parity how do they increase the debt so dramatically because these interest rates are near zero percent that's the the debt ponzi scheme or the debt pyramid scheme is increasing exponentially whether it's the fracking industry or banking fraud industry or the economy around the world is being expanded through these narrow zero percent interest rates that encourage mal investment so fragging is a hoax just on a business that makes any economic sense and is being driven by such a bank policies that keep the rate of borrowing money into this hoax at near zero percent imagine jim jones and diana and he wanted to start of death cult and he was borrowing money from marconi the bank of england and mark carney would say well

here jim jones your access to money is at zero percent interest rate so instead of just a couple hundred people drinking the koolaid and killing themselves via cyanide poisoning there would be couple hundred thousand people because jim jones would have been able to build a death cult. considerably bigger then he had this is the same thing with the fracking industry quote driller is the jim jones of the fracking industry there it's a death cult it makes absolutely no economic sense it's pure pure suicide it makes more sense here just because the costs are high they could sell their product for higher in the u.k. in the united states there's a law which forbids them for sending at any of this energy out so what i'm saying in the opening you compare this to dr strangelove so here we have the situation of a parody of a fake war created by these sort of the military industrial complex the energy industrial complex which are one in the same and they're encouraging americans to want to because they can't make money because they're losing money they're losing

fifty cents or losing one hundred cents on every single dollar they spend in order to frack but because of the closed market in the united states because most americans are broken can't afford energy anyway that the price is very low there is like a third of the price that they can get by selling it to europe so this is part of the reason i'm saying in this article the numbers don't add up so the reason they have to convince americans that they must spend three times as much for their natural gas prices they need to triple the price because we need to defeat you know we need we we must close the mine shaft gap i challenge your original arbitrage theory the u.s. versus the u.k. because in a bring it back to what i was saying earlier in terms of the extra elegies the costs in terms of the environment here in the u.k. which is a small area worth densely populated as opposed to the regions in the u.s. where they're doing this like north dakota the actual earthquakes that causes and the groundwater devastation that it causes injecting water with course of the jets

will have actual genuine costs that are not being borne by the fractures and you put that back into the true cost benefit analysis and it's worse than the united states because unless you want to say that britain's getting cancer is not. something to be concerned about only a bit we're talking about david cameron so yes he doesn't care britons get cancer he only cares about that little for a little but you what you can christmas pudding imply david cameron a big fat carcinogenic peddling moron ok so they get cancer they have an ear who cares so let's talk about these numbers again here they link back to a bloomberg article from may twenty seventh two thousand and fourteen shakeout threatened shale patches factors go for broke interest expenses are rising said challenge and oil analyst with energy aspects of london the risk for shell producers is that because of the production decline rates you constantly have elevated capital expenditures so the percentage of their revenue going to just

paying that interest cost on average is now four point one percent this is up from two point three percent just a year ago but they look at some companies are spending forty fifty sixty percent and they highlight a company called zaza. energy which got its start as a joint venture with hess corp bought up oil rights in the eagle ford shale field and then nearby eagle find the south texas near the heart of the u.s. oil boom as first quarter revenue fell short of interest expense the firms accountants and mark voiced substantial doubt about the houston based company's ability to stay afloat so one hundred percent of their revenue is going to paying interest costs. in this low interest rate environment i mean to put this into context how lower interest rates in the united kingdom they're floating a three hundred year lows and across europe spain france and other countries are flirting with two hundred three hundred year lows in america two hundred forty year lows these are the lowest interest rates that we've seen in hundreds hundreds of years and they're still being eaten alive by the interest costs so any uptick in

interest rates whatsoever and these companies are completely wiped out again because it's a hoax and we look around the global geo political situation more and more bankers are committing suicide because they realize they're complicit in this global snuff film that's called the washington consensus and one of think this will spread so you'll have more and more money managers starting to commit financial suicide by discoursing themselves of these toxic sovereign debt essentially bully massaging the global economy and vomiting up these sovereign debts so interest rates then would have a sharp increase to three four five hundred basis points suddenly as the believe of pimco for it suddenly just discord just these bonds because of the shame of contributing to a global economy that seems basically nothing more than a system for mass genocide so again going back to the stories that we're covering here we have a situation where geopolitically they would want

a situation to convince americans that they need to spend three or four times more send there or get natural gas overseas to asia and possibly europe now you also mentioned sovereign debt in this company that i mentioned paul singer came in and paul singer who forced argentina into bankruptcy just this past week or different default well he forced john has out the son of the founder of hess corporation and they mention in the article this is a brilliant sentence about just the absurdity of the parody that is fracking is as i have since entered into a joint venture with resources and houston one of the few shell companies to bring . and more cash than it spends i mean this is one of the few shell companies that actually brings in more cash than it spends here who started it and who's our accountant is a one of the big four accounting firms well there are also the four so that is probably fraudulent because all for us but found a great fraud so yeah sure that there is one that will hold up and say i was the

one that's bringing more cash than is going out but i'm sure that in six months time will find out oh it's completely a fraud will be they cooked the books by one of the big four accounting firms that's also fraud and so finally i'm going to look at the plan our of of the situation here and that is government pushes ahead with fracking planned despite wide opposition overwhelming opposition to the government's plans to expanding fracking across britain was expressed by interest groups during an official consultation whose results were released a day after minister signal go ahead for shale gas drilling around the country so everybody that the government here in the united kingdom asked everybody from the national health service to the environmental protection agency their equivalent they said no this is a bad idea but despite that the government went ahead and they've approved fracking to happen across fifty percent of the country here all right well thanks so much stacey thank you max and they want to go out there what about major kong without major.

this is the british policy to track you. all right well stay tuned for the second half an interview i did with allison mccloud. it was. very hard to take. that sax player that her make her look. like. a.

please. please. please look upon. me. i would rather ask questions to people in positions of power instead of speaking on their behalf and that's why you can find my show larry king now right here on our t.v. question more. welcome

back to the kaiser report imax keyser time now to turn to our survey cloud of gold money dot com al so welcome back to the kaiser report that's my pleasure max all right let's talk about argentina they've defaulted i think it's the third or fourth time what are your thoughts i think you spend most of the time and fault it amazes me that anyone evelyn's them any money because you know you're never going to get repaid. this particular default as i understand it actually started some time ago and the reason that it's happened the way it is is from previous experience the ocean tins had to go and have something under new york law not armed their own argentinean law so that they were boned if you like by international rule and now that's terribly important the reason that happened was because nobody would

otherwise trust argentina when it came to lending money so it goes wrong the new york court then adjudicate on the matter and argentina walks away from it and saying oh the horrid capitalists and the nasty hedge fund i'm sorry they got themselves into this mess it's as simple as that they say why would anyone lend argentina life but we know that banks lend people money knowing they're not going to get paid back because banks are not taking those risks they are hedged and if there is a problem they get the state that bail them out whether it's sub prime mortgages argentina or some unproven dot com stocks back in the ninety's banks don't take rest making loans so therefore why would they lend argentina they got paid the bankers made their money and there they ran away so why why not. but you are absolutely right and there is if you like another dimension to this we ought to think about and that is since i think that they will try and change the rules on sovereign debt as a whole would you lend money to from one percent to ten years would you lend money

to spain for ten years at less than two. percent something these issues i think of coming out into the public it's not just banks i mean you will write banks who take a position in so in debt and hedge it through derivatives and you've got all these to reverse i mean huge huge jumps over the hedge fund of this case paulson are you all saying or made a bet on argentine bonds he's worth not as a vulture capitalist and he's completely heads in a credit default swap market and so he's not taking any risk either so at what point are the needs of the population taken into consideration does the same that there is any point when those needs are taken into consideration but i want to focus on a point just made about these sovereign debt bonds. france spain they're trading at a one hundred year two hundred or three hundred year lows on the yield that would mean a high on the price and yet we know these economies are not you know recovered in

any sense of the word there's still this huge global financial crisis so when max that max we know that these governments never intend to repay the money ok so well who is buying those bonds well basically it's banks that sovereign wealth funds that central banks will have sort of very very big institutional money. some of it on the fringes like pension fund money is buying a home but he says that is the draggy put maybe that the european central bank is going to get out of my of these bonds or lower interest rates or make money available to make it a non again no risk whatever it takes mr druggies woods and you know it's a ridiculous situation so how is this different in a ponzi scheme in other words area of sovereign debt that's used as collateral for derivatives essentially and because the rivers market is growing by leaps and bounds and because that is a proven policies game it seems that those who are financing the ponzi scheme who need even a one percent yield on a european government ten year note are willing to pay up for as

a way to broaden the base of what is essentially a global sovereign bond ponzi scheme yes or no a ponzi scheme is something that happens in the private sector and is illegal the same thing can happen in the government sector and is not illegal that is the only difference. fair enough. i wanted adding to it was that ok so you have a global sovereign bond ponzi scheme driven by central banks or keeping rates artificially low in this country not to think them they talk about a recovery and yet they keep interest rates at half percent so how is that work is there who's lying if somebody is lying well because what they're trying to do is they're trying to manage the currency i mean whether they raise interest rates a quarter percent hopes and actually is not all that material but it is the perceptions in the foreign exchange markets and how that affects the currency that is the thing that matters as far as the central bank is concerned the bank of

england and what they don't want to do so have still been going up and have is priced out of the market i mean this is a new this is keynesian rubbish but that's basically the way they think but there is no recovery if they're not raising interest rates because if there was i would be rising interest it is completely false exactly and after the question who's lying is the answer is george let me fill in the blank well for a second let's talk about a topic we met on the show i think we've mentioned it every single time because it's been a growing topic now for a couple years the shanghai cooperation organization which has russia has china and then they're looking at this area it's a new trade zone it's with these new areas are getting out of the dollar so during this time that we've been talking over the year or two years now it's getting hot ukraine is now a hot issue and there's a lot of tension and now there are sanctions and also what your thoughts are on the sanctions because it's having of course unintended

consequences things are rippling and gurgling and bubbling in ways that people hadn't anticipated and it's causing some interesting tell us about the sanctions it seems to me when you look at them very carefully almost designed for maximum if you like publicized. impact but actually not that. much impact on the russian economy as such now i think that we're getting into a stage where it is probably getting worse and worse and i'm not sure why it is that nato of on themselves up over this because after all there is absolutely no evidence of the stage as to who shot down that malaysian plane but they are using a malaysian airlines situation if you like to a policy and it seems to me that it in the background there is a certain amount of pressure from some of the european countries on the eastern border of the e.u. like yours when you oppose and so on so forth. there is a lot of pressure from america who feels that they don't really have that much to

lose if you like by pursuing hard ball game but then you go to europe and the winter approaches and when europe has got no gas then it is can pick streaming nasty for your a lot about a country like failing they are now in a freefall because of their relationship import export with russia and they and they just lost a huge amount of jobs because microsoft and fired everybody practically so they're now being sacrificed i mean are they could they be back in the orbit of russia you know they've they've they've got out of russia but now they're being forced back into the arms of russia it seems like with russia you know the crimean it was not conquest that crimea was gifted to them because of the incompetence of the e.u. and the us of handling that all situation so they're going to end up just expanding the russian sphere of influence not by having to lift a finger mr putin saying they're just like collecting all these dominoes as they fall into his lap from these idiots in the e.u.

america nato they're the most incompetent bunch that couldn't shoot straight probably in the last hundred years unfortunately i think i rather have to agree with you max i mean the problem you include cameron in that sense there are in britain and europe british we like to slap cameron well i mean we basically go along on the us his coattails in these things it's called the special room. lation ship you know we never never ever jeopardize that. but you know you've got i mean the banking system is actually quite exposed not london directly i mean we've got relatively little direct exposure but when you look at the french banks you look at the italian banks and so on and finland of course has exposure as well. and then we have exposure to those banks over here but it's only actually it exactly that so i think this is actually a very dangerous game that's being played and i'm just worried there's a complete disconnection between various departments in government you know say defense and intelligence services and so on so forth and the financial end why do

you think they are a market in london is already starting to make a move down because all that russian money is leaving the saying now let's move on i want to get to gold because of course gold money dot com is where you hang your hat these days and you are one of the foremost experts on gold in the world. is that a fair statement i'll say that my hope is that. the gold market is going through a radical change so tell us about it is going through a radical change in london if you go back to being big bang which was thirty years ago in the mid eighty's there was a decision taken as to what was regulated investment and what wasn't physical metals were excluded from regulation the result is that the london bullion market has grown up as an over the counter market is developed beyond anyone's wildest dreams but it is a market which if you like is stuck in the one nine hundred eighty s. in terms of the information it provides to people and meanwhile other markets particularly china have evolved they're doing very very big business physical

business and not only that but the level of information they give out to people who want to participate in that market is enormous compared with the very limited smoke and mirrors instead of them arise with the daily fixing that london prices the global price that's a people use as a benchmark. yet they are at risk of losing their ability to price the google bullion market it could go east could go to china i think that's i think the fix in the current form is dead i think that there's no doubt deutsche bank could not sell its seat for the go fix and i think that tells me quite clearly that the lawyers in the other bullion banks will look at this and said well in current circumstances i don't think management we should get involved in this so for whatever reason i think that is dead the point about the go fix is that it draws in business from which other wise occur after the fix and it delays business which would otherwise occur before the business so it is actually

a distortion in the markets i also go and don't ask me what i also stands for it's a sort of major international securities. standard set of the rest of it. have nineteen points whereby a fix should comply with which a fix should comply with it's thought that the london go fix complies with four of them we are nowhere up to standard ok on the so long ago also we are not a lot of gold markets reg just like libraries very well the point to point this is that we don't know what the hell goes on max and that is the thing that is wrong with the market it is time it came out into the open provided proper information to the participants like the facts was actually old school market raking its market rigging from before there was market because i would like to hear the welcome back a hundred every need it affects a hundred years ago i did twenty four hour markets around today why do you have with us daily fix the problem with the secrecy of the operation is i cannot deny all statement and i should be able to write so china of course now with global

geopolitics starting to heat up people are starting to get their gold towards china russia in particular and they're thinking you know maybe we should divorce the pricing from london and they cause their wed to a paper mountain of empire of paper and we want to get into the gold business it's going that way anyway because. if you look at china i mean for a start the indications that i have quite clearly point to china keeping order and production and all her in scrap production as well as that she's come to deals with mines all around the world to see for them to supply china dorie which she refined and those bombs on never seen on the international market in other words radek kept by china so they were added recently is bypassing london ok so it's i rather pick up on this next time. on the kaiser report that's my passion max and that's going to do it for the other guys a report with a mattress they see her i guess alstom a cloud of gold by a dot com if i get report i think. on

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what's going on everyone i'm out in martin and this is breaking this set so i frequently cover the absurd tactics the government uses to fight the war on terror everything from giving via agro to taliban insurgents to trolling nurseries to find radical extremists as it turns out it has surprised absolutely no one the government isn't merely focusing on militant groups according to new classified documents released by the intercept nearly half of the government's official watch list of known or suspected terrorists are not affiliated with any organized group not only is it a highly.