loach mac's stock markets are not crashing that means there is no peace well this is the amazing thing about these markets is that they are really feeding on a war and destruction because that's where the money's coming from to feed all these bombing campaigns around the world principally from the countries whose stock markets are going all time highs like the u.s. stock market that's where the money is coming to continue the occupation of these countries so if there was a crash that would mean tese if peace were to break out then the stock markets would crash so that's why there will be no peace as long as there's a lot of cheap money feeding a lot of cheap wars on the cheap and you see a lot of death and destruction that's what these markets are telegraphing that's their financing that's what it's all about well they're leading politicians here do not want the stock market markets to crash and so we have headlines like this lindsay graham predicts an american city in flames if obama doesn't go to war in iraq senator lindsey graham republican from south carolina warned on sunday that militants in iraq and syria would attack the u.s. mainland if president barack obama did not immediately take military action to stop

them i think of an american city in flames because of the terrorist ability to operate in syria and iraq graham told fox news host chris wallace this is amazing propaganda from fox news that's all it is lindsey graham is a is a propagandist and the idea that if they don't bomb iraq the american cities will be in flames just feeds into the propaganda that we need to keep financing the war machine that has its nexus here on wall street and lindsey graham is really a shameless war provoker and the side did that he puts forward that unless there is a continuation of the status quo of free money for warmongers then suddenly we have to worry about all kinds of consequences that we can't deal with and they keep pulling out the same men you know nine eleven bogeyman or this boogie man and they've killed all the boogie men the only boogie men left are lindsey graham these two boogie men lindsey graham is a terrorist actually i want to look at some of the more manged. i mean sort of

establishment media here and even they are starting to question this never ending war and what is doing to the empire let's look at these two have lines here the first one is from the new republic and they say the u.s. airstrikes in northern iraq are all about oil they mention that when barack obama was saying we're going to stop bombing iraq in order to save some people on a mountain with the one thing he didn't mention they said was oil but let that lies near the center of the american cause for intervention in iraq they say because the united states is conducting air drops to the is edis who have fled the advance of islamic state militants but it is conducting air strikes around herbal which is to the east and erbil is the capital of kurdistan the kurdish area and that is where the oil rich area is so they don't want them to gain control of that wailed member tony blair in the lead up to the iraq war it's not about blood for oil even two million people are on the streets of london with placards saying this is all about blood for oil it clearly is blood for oil until you blair is one of the warmongers

that has made a ton of money trading blood for oil and he's continuing to do so look since it's all about this quantitative easing we've been witnessing around the world for years now it has not worked it did not create the economic growth that we were told it would there was no escape velocity as mark carney chairman of bank of england talked about so now we're in a deflationary spiral where resources are scarce and people are going to war to get control of the remaining resources the word today is everyone against everyone everyone's at each other's throat because all that money printing did not work it was a failure it caused the very deflation they said it was going to eliminate they have failed miserably and as a result everyone's got up to their neck in blood so from the new yorker magazine here in new york they have a headline oil and herbal so again they see that it's all about oil they don't believe any of this so-called humanitarian intervention both articles mention that they also screech to. about humanitarianism and we need to say the people of

benghazi never once did any president mention the oil in there in benghazi but they keep you know most people in the empire they are also on twitter campaigning for hash tag outraging invasions of all these countries in order to save the people and we need to save those people they themselves also never see the oil and here they're actually this is sort of the moment when even the progressive sort of establishment media are starting to see well it is all about oil there's a lot of economic suicide we see right now with this confrontation with russia in attempt to force oil prices down there's a lot of money for nothing going on in a manipulations in the oil futures market but that money printing has the boomerang effect of causing an incredible amount of poverty so cities like detroit and around the u.s. around the empire are collapsing because of the wealth and income disparity from all that quantitative easing to try to force russians in some kind of bargaining table that you know has existed for twenty years so again oil manipulation of oil

lack of oil even gaza and the and the devastation we've seen there is related to energy as well because of the natural gas reserves associated with that territory so once again driven by oil and gas well we're going to get on to the russia stuff in a bit but first i want to continue on this story about iraq and what the mainstream media here is actually saying the u.s. is bombing its own guns perfectly sums up america's total failure in iraq so you know we've been in iraq since two thousand and three we went out we we allegedly got out for a few months now we're back in but one of the things that they're saying is that well the arms sales ok so the kurds the peshmerga have old soviet weapons and these so-called islamic state militants have seized the american weapons from the iraqi military so as a consequence the absurdity runs deep america is using american military equipment to bomb other pieces of american military equipment halfway around the world the reason the american military. got there in the first place was because in two

thousand and three the us had its military to rebuild the iraqi army which it just finished destroying with the american military the american weapons of the us gave the iraqi army totally failed at making iraq secure and have become tools of terror used by an offshoot of al qaeda to terrorize iraqis that the us supposedly liberated to get a decade ago and so now the us has to use american weaponry to destroy the american weaponry it gave iraqis to make iraqis safer in order to make iraqis safer this is the absurdity of end of empire thing when all of your that edge of empire just starting to fray and disintegrate and you can't control it you're bombing yourself but this is the natural end game for a keynesian economics where they believe that by creating a war you create economic growth but that's a map and so they're bombing the very weapons that they sold to create the growth to begin with that didn't work so they're selling another group to weapons to bomb the weapons that they sold the original group to create economic growth and that didn't work so it's a an enormous sinkhole of money it's like those enormous sinkholes are opening up

around siberia now because the earth is essentially melting yeah those are those enormous sinkholes this is kind of the economy around the world where these war mongering has resulted in this just devastating collapse that makes no frickin sense and i might add once again this is not a green screen you'll hear and see some fairies and their horns behind us you might see some helicopters you might see some whales or great white sharks you might see the n.y.p.d. teasing people behind us this is all real real so some tasering on my way to the studio is not existing here this morning by the way about this oil of course oil is priced in dollars that has been below belief for the last few decades since the one nine hundred seventy s. and this is part of how the u.s. maintains its empire and again we're going to look at this fraying of empire here is the headline it's from blue bird news bloomberg news one of the premier financial news or going to. be two. the role of russia sanctions accelerate risk to

dollar dominance u.s. and european sanctions against russia threaten to hasten a move away from the dollar that's been stirring since the global financial crisis the global financial crisis in two thousand and seven and two thousand and eight but they say that the greenback share of global reserves has shrunk to about sixty one percent today from seventy two percent in two thousand and one we were it's from two thousand and one that we embarked on this policy for a new american century which is actually ironically become the policy for not a new american century i expect the decline since two thousand and one and cheney and bush and rumsfeld the invasion of iraq for oil yeah well we had a few minutes and i wanted to dig into this idea that these sanctions are going to be somehow a punishment to russia and what we're seeing now is the exact opposite once again the intended consequence of a policy is boomeranging in the opposite way and what what's happening now is that the world realizes that the u.s. is an ad of control rogue state and they're doing deals with themselves outside of

the u.s. dollar they're doing deals china russia iran other countries are doing these massive currency swaps and economic deals outside of the us dollar and for russia quite frankly this is the greatest thing that could happen to them new sanctions because it's going to force them to diversify their economy which they have been reluctant to do for decades they've been overly reliant on the energy sector in the mill military sector and now if they're going to put these sanctions up with food and having the popularity that he has they can go in they can develop their high tech industries they can develop their manufacturing industries they can develop textiles industries they can devote all kinds of things that they have been reluctant to do but with this mandate of getting around the man of the sanctions they can diversify that economy in ways that they have not done for decades so this is the greatest thing that could possibly happen but it's not just for russia it's for germany it's for europe it's for asia it's for china it's for japan it's for brazil it's for africa anymore multi-currency world member i mention. the fact that

there are now after decades there are humpback whales out there near ellis island and the statue of liberty there are great white sharks here they've been here for decades why because of the model culture and pouring toxic waste like the toxic dollar across the world which has starved out all the fish the wildlife here now that it's been cleaned up in the hudson river so clean no not this river but it was it's now clean would just mention benefit or the toxicity of the u.s. dollar yes has kept a monoculture going around the world yet people didn't bother building their own infrastructure their own factory because mama daddy papa and all that until sam is there to protect them and to do all these deals for them in the dollar everything was priced in dollars at the world war two all commodities all oil and now they're saying you know what we're ready to break out from the tent of mom and dad uncle sam and are ready to build our economies independent of a state that's clearly in the throes of a deflationary depression warmongering state of chaos well here is the quote i'm

going to read to you from this bloomberg article and it's from bank of america bank of america obviously american the crisis created a rethink of the dollar denominated world that we live in said joseph quinlan chief market strategist at bank of america corporation's u.s. trust which oversees about three hundred eighty billion dollars he said quote this nasty turn between russia and the west related to sanctions that can be an accelerator toward a more multi-currency world and they mention that throughout the article that it's actually because of this increasingly using financial sanctions and financial war techniques whether it's against bank parabolic in france or elsewhere so people are very concerned about it they also mention that germany and greece for example are two economies in europe which have suffered greatly because of the sanctions on russia so they're starting to think also like well maybe we do need a more multi-currency world because why would why do we need to get in the middle of this war when all we want is trade we want free trade and incredible globalization. the u.s.

is reluctant to embrace free market capitalism is what's putting the country at great risk and the economy great risk while the rest the world actually adopts fantastically into free market capitalism and the result will be the us being left behind i say strategy i'm thanks so much see you max stay tuned for the second half a lot more. well. technology innovation all the developments from around russia we've got the future covered. suggests golf basics right to. the polling good

news for you might be more interesting to think every minute. of the balado of. my own life but. most of us think. most cases it's. sometimes for nothing. to sneeze at and. it's not just keep up the story you'll be jobst if you see a stage eight look to be pets but speech was. the book. in genesis but eugenics vulgarized darwin science punishment for an uncommitted crying i was there

are things to learn from innately feebleminded still today for the few i don't know why. but for still the i don't know why genetic improvement through forced sterilization the basis for nazi ideology they don't stop at just sterilizing and now go to the point of death. for years rarely discussed. till now really rather not talk about that right. live live live. live

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welcome back to the kaiser report i'm max keiser time now to turn to dr michael hudson is current book is the bubble and beyond dr watson welcome back to the kaiser report of the beer mix thanks for coming to queens i want to talk about a bloomberg headline bloomberg news has a headline warning the sanctions against russia will hasten the decline of the u.s. dollar in world trade now going back to your career back in one thousand nine hundred two you published super imperialism is kind of the textbook of the monetization of the global economy and what this would lead to it seems like everything you talked about that book is down happening the end game so to speak is that a fair statement when you think yes it is in that book i showed that the entire balance of payments deficit stem from foreign military spending and the dollars thrown off by military spending end up being put into some foreign central banks so it's really foreign central banks that have finance the u.s.

military checkpoints and abroad yes that air rejecting it first time there is an alternative right so just really sorry about this statement here the sanctions against russia are going to hasten the decline of the u.s. dollar and world trade that seems to be the opposite of what the if this intended for that's the irony it's the best thing that could have happened to russia finally know russia is going to begin protecting its own agriculture and modernizing it and there's no need for it to import chickens from arkansas when it can grow its own chicken right hasn't been the case with russia they've been overly reliant on russia and i gas and oil for decades and the price is high they get what they see like you know we don't need to diversify because if we get all this money right in the prices low they panic i think we need to drill more but here they're forcing them to do something that the u.s. i would think would not want them to do diversify that's the short termism of the neo cons and what we're seeing is the end of a whole sixty year cycle in the one nine hundred fifty s. do you. it was russia that greeted the euro dollar market because it was afraid

that but it's dollars and u.s. banks but let's get back to second here because it says that this election's against russia will hasten the decline of the us dollar and rule changes the exact opposite of what you would think they were intending you'd think so they're thinking very short term and they don't realize that russia has an alternative and it's as if they drew up this plan to contain russia and move into the crimea and block its base before there was the meeting in brazil last month where the. got together and created a one hundred billion dollar clearing arrangement and a bricks bank so that they don't have to be dependent on the u.s. dollar for the first time in sixty years other countries have an alternative to the dollar in the one nine hundred fifty s. when russia had dollars it could couldn't put them in u.s. banks because it would afraid that the banks to grab its money like it grabbed iran's money so they put them in london banks and that created the euro dollar market strengthening the dollar and in one nine hundred seventy one the u.s.

dollar was forced off gold as you often discussed on this show but what happened was that there still wasn't an alternative to the dollar so central banks only had one thing to carry u.s. treasury bonds so it was central banks that funded the balance of payments deficit that really was the military deficit well for the first time now there is an alternative the u.s. is not the only person country that can create money russia china the brics found they can create electronic money in ious just like us and they're very quickly forcing other countries not to use the dollar and just to help out russia judge greece a here in new york has blocked argentina from up paying its creditors so that foreign sovereign debtors no kennedy issued dollar bombs because if they issue dollar bombs somehow they have to go through us by. thanks and we'll have judge greece's ruling applying to the whole world treating entire countries like

a family restaurant that goes broke and has to distribute all of its assets so the u.s. is shooting itself on its own foot again and again says such talk about the isn't it true that you know you're back and of course you came up to banking originally so you're very familiar with the whole industry a couple of questions if the if the world goes off the u.s. dollars standard it reserve currency and looks like that's what's happening there isn't that going to make for americans anyway the price of stuff like oil and food is it going to cause inflation because they don't have that privilege they have the extraordinary privilege in principle it well the world won't really go off the dollar standard it will have a multi standard world there will now be a brics along with it for the us neo liberals have made sure that the euro cannot create any kind of a euro currency because in order to create a euro the euro is a backing for central banks governments would have to run deficits and the lisbon

treaty blocks them from creating more than three percent of a deficit so the u.s. is crippled europe from ever being part of this and led left only russia china and the brics to create an alternative to the balor so basically the u.s. is treated as absorbed to europe and to the dollar area that's going to continue whether the currency whether the currency will go down is is still up in the air ok so let's talk about the bank of international settlements for a second recently they issued a stark warning about central banks encouraging global bubbles are warning about bubbles now are we in a global bubble what will happen what can be done to restore the case so is this bubble mentioned by the bank of international settlements where do you fall on that we're in the aftermath of the bubble the bubble basically burst in two thousand and eight when the chunk mortgages went down and so. what happened was you have still

banks and negative equity but what we're in is not a bubble but an attempt by the federal reserve and the treasury to reinflate the bubble to try to get it back where we were so the solution to the bet problem is to borrow your way out of debt to create enough more debt that you can somehow keep the whole bubble that was inflating afloat until the whole system crashes right so the idea of the bubble bursting in two thousand and eight you had a deflationary event essentially bonds went bust to reinflate the bubble they print lots of money but that has not created the so-called escape velocity that has not created any real genuine growth in the economy so it's been revealed now that this isn't sack nothing but a global ponzi scheme where they have to keep printing and printing and printing just keep in the same place there's no real organic growth correct this is exactly correct and that's because a ponzi scheme is an exponential growth of bet you have to have new members keep joining in anough to pay off pay off the former first comers the problem is

that the banks are not lending to real estate because real estate so loaned up they're not lending the credit card debt u.s. debt has actually gone down and that's because the economy is having to now pay down all of the debts that it was running up under the bubble so the banks are making a lot of money but money not by lending to the real economy the banks haven't lent a penny for new capital investment for new employment for new research and development they the banks have made their money by arbitrage by foreign strike elation by essentially corporate buyouts one third of the american banks profits and the last quarter came from making extending bio loans for companies to borrow cheap and replace equity with debt so that the debts going way up for the corporate sector which now is built into the balance sheet having to pay off. interests so they're forcing up the cost structure of prices but the market isn't fair so the

result has to put the squeeze on corporations which are usually happens when you have a liberal bias you know this is idea of going private companies take companies private warren buffett takes heinz ketchup private he's a master at this he's taken all these companies private it seems like if there's another crash dr hudson so unlike warren buffett that effectively take america private that's the whole idea when you say take a private that means take a private on dept it's a financial process it means borrow the money to buy up stock holdings so now you're the new owner and rates are near zero percent so the cost of this is a fraction well the cost of creating the money by the banks is there a percent but you can be sure that they charge warren buffett in the corporate raiders a much higher price that's why the bank profits are so high right now they get the money from the federal reserve but one tenth of a percent they lend it out for five or six percent for takeovers that's their

margin so the banks' balance sheets to being recovered at the expense of the economy it's a predatory process when you look at the economy wide effect right now the two thousand and eight crisis you don't talk about warren buffett for a second he famously said with a tie goes out you see who's not wearing a bathing suit down two thousand and eight the tide went out and we saw that bernie made off was not wearing a bathing suit that ponzi scheme was exposed and it went belly up eighty billion dollars loss what have you given this current scenario where looks like are set up for another global crash what country could be the bernie made off like moment reveal in this crisis is it china is it japan they have enormous outstanding debt to g.d.p. the u.s. bank of england where's the weak link that when this when the when the when the you know the stuff hits the fan this time who's going to be revealed as the weak link well this is first of all the strongest link with china because china the central bank is willing to print all the money. to keep its economy afloat so it isn't the

weak link won't be china it'll be it'll be america and it's always been america for the last century because america is the most highly leveraged country of all england is also very severely leveraged which is why the bank of england has taken it begun to take moves to try to stop the leveraging the so the u.s. and england are that weak links but also you have the south you have the sovereign debt the governments of southern europe greece. and the other countries that are especially hurt by the russians retaliatory sanctions they're still not able to run a budget deficit so you're having this fiscal squeeze in addition to the debt squeeze the fiscal squeeze is completely needless greece in the euro zone of course could create money just like the federal reserve has done here but they don't because that's what neo liberalism does they there's a they've imposed a class war in europe to sort of tighten. the fiscal policy to squeeze squeeze down wage rates so the market is in terms of the market and government breaking point

europe southern europe is the leading point in terms of the the debt financial breaking point it will probably be in the united states from all of these leveraged buyouts. without a leveraged buyout a company can always cut back dividends to stockholders if markets turn down but once there is a leveraged buyout you can't cut out payments to creditors without declaring bankruptcy and letting the creditors take over so what we're seeing now is the prospect of a huge property grab by creditors that's what happens when the bubble burst dr johnson thanks much again for being on the kaiser report thank you very much back to all right that's going to do it for this edition of the guys report with me max kaiser and stacey ebert i'd like to thank our guest dr michael it's in his latest book is called the bubble and beyond me like tweet us to discuss reports and i might have some bio.

your friend posts a photo from a vacation you can't afford. different. the boss repeats the same old joke of course you like. the ex-girlfriend still tends to rejection poetry keep. ignoring it. post only what really matters. to your facebook. just so this bet's no soldier rushes into special forces but being tough and good with a gun may not be enough of these extreme tests. only the most capable will be to the end. of. those whose dreams can melt away exhaustion all ranks put themselves through fire smoke and water but not for money promotion.

is the coveted crimson bearer. sweden or fed run to bring deep to join nato that would provoke some sort of free action on the part of russia at the same point as far as the military calculus is concerned none of what faces humanity east the west north and south lawn of it can't be solved by military means or fighter aircraft or satellite so nuclear weapons military is outdated it should go like cannibalism and slavery and child labor it doesn't belong to civilization to kill each other. i restrain. in december of two thousand and ten. more likely to be raped in college than in the real world. i didn't think people did that to each other when they knew

each other i thought rape was a stranger on the bus this. girl complaining about the son of an alumni gives millions of dollars to the school why listen to somebody who's going to lose money at the school if schools that make money based decisions are much more common than they would ever admit publicly. it was very interested that those with dropped out of the school of the or. lower shift across a few degrees. of the circle of other speed but you know just astronomical spoofs. on marriage and in the financial world. series tacoma it's not stopping to

only take you know to be the truth not going to get a new life. eastern ukraine s stuff was more tired from the army that to bring despair and devastation for its people while tons of russian humanitarian aid is still being held up on the border. moscow rebuffs claims one of the ukrainian president but a russian armored vehicles were destroyed after crossing the border citing a blatant lack of evidence. in the us the police officer who shouted an unarmed black teenager sparking riots is named as outrage continues to brew over the heavy handed approach of pleas to peaceful protests. and as the e.u. green light.