here on the west side of manhattan let's go down to the newsroom and check in once again with stacey herbert and stacey hey max actually we you were due to speak to i guess the saying hi i knew you were going to talk about the red back but perhaps china is not ready to take over the world because apparently their internet system actually isn't up to thinking well that's an interesting point about stacy about china's rise to power is that they have done so on the back of a loser a project known as ghost cities so the government has engaged in shovel ready projects as barack obama might call them building skyscrapers in villages and towns and cities but nobody lives in the cities but it looks like they're generating g.d.p. growth meanwhile they're beholden to america through the relationship with the u.s. dollar and now the u.s. dollar is crashing this is setting the stage for a global conflict i heard somebody make the following comment about interesting interested in your thoughts about it they said that the posturing going on in washington reminds them of what happened before world war one

stacey herbert tell us more well max i'll tell you the headline as soon as max kaiser arrives in france to pull a reeded france may be vulnerable to downgrade following cut to the u.s. yeah well there's a tremendous ripple effect of thing with this downgrade because the u.s. dollar is course connected to the u.s. treasury bond market and it's connected to the phone connected to the hip bone connected to the bone connected to the yeah baby it's all connected so to downgrade you start to pull the thread on the u.s. dollar the whole kit and caboodle its own rival here you all might also say however that it's only late it's s. and p. itself and moody's and fitch because the u.s. and france are in such bad shape due to all the so-called aaa rated collateralized debt obligations and other credit derivatives that s. and p. allowed to be rated aaa and then these country's banks bought these toxic debt so this initial part of the history isn't it you know during the period leading up to the financial crisis the selling of collateralized debt obligations c.d.o. zas they're known and other flora a

that's going to do it for this edition of the kaiser report with me max guys are going to thank stacey herbert do you want to send me an e-mail please do so at kaiser reporting r t t v are you until next time this is max keiser saying by. more news today violence is once again flared up. these are the images seen from the street the capital. trying to look for asians to rule the day.

and that's going to do it for this edition of the kaiser report with me max kaiser the effect stacey herbert if you want to send me an e-mail please do so as reported r t t v r us all next on this is max keiser saying.

what is the root cause behind all these riots stacey herbert so it's more the riots in the street i might add and the riots in the markets headline reads quantitative easing is good for the rich bad for the poor quantitative easing the bank of england's recession busting policy of buying up billions of pounds of bonds may have contributed to social unrest by exacerbating inequality according to one city economist because they missed diagnose the problem back in two thousand and eight they felt that there was a liquidity problem in the markets instead of an insolvency problem the big banks max they misdiagnosed it to the public this is what they told the public because the evidence suggests that q.e. cash ends up overwhelmingly in profits thereby exacerbate an already extreme income inequality and the consequent social tensions that arise from it and you also point out that real wages adjusted for inflation have fallen in both the u.s. and u.k. they've risen in germany which has not applied any quantitative easing that is core rect and it's incorrect to talk about this in terms of inflatio

fossil fuel based industrial economy yeah i was talking to stacey herbert in the beginning in the first half of the shout and we were talking about the diminishing resource of fresh water and going forward as freshwater becomes a diminishing resource the talk the happy talk coming out of washington would be well we're just entered this huge industrial strength be sound as ation projects but of course that would require capital so you can have liquidity in the capital in the water market without liquidity in the capital markets and so therefore if you agree with that loan yeah i think a better illustration in the usa these days is the shale gas scam that's going on there's understandably a great wish that america could produce enough energy to keep the things that we run running virtually indefinitely you know we're so invested in the stuff that we've got including our suburban lifestyles and the interstate highway system and all the other things that we do that we want to imagine that we can keep on doing this forever so this story has been going around for about the last year that ther

stacey herbert i remember back in the day a famous quote from maggie thatcher stacy tell us more yes she said there is no such thing as society and the middle classes rejoiced as all that public housing came onto the market and they were on the property ladder today they are actually very surprised that there is no such thing as society and they're outraged and they act as if there is no context to the under arrest in the u.k. so i want to take you to a headline from two thousand and nine in the economist magazine global tinderbox two thousand and ten could be a year that sparks unarrest yeah this is we covered this when it came out and the economist magazine blatantly was handicapping social unrest picking trying to figure out what countries are most prone to it and to do a point people are saying where those come from who could have seen it coming it was it was a whole feature story in the economist told the people tell the people this is separate from their political unrest index this is their social unrest index and if you look at the map you see that britain had a medium risk of

and up next macs cars are at stacey herbert look at how a revolt against bankers in the u.s. is brewing in the heart of america the kaiser report is coming out right now. stacy herbert you know the global insurrection against banker occupation we've been telling you about it for months now it's coming to new york stacey and max kaiser the first headline reads anonymous joins hash tag occupy wall street remember we talked about this a few weeks ago this is an ad busters campaign and they're encouraging up to twenty thousand people to occupy wall street flood into lower manhattan occupy the spaces in front of the banks and now anonymous i'm joined right so they're going to sort of tense like they. square now or in the square in tunis or in cairo or try to occupy wall street now we were just in new york we visited wall street there's a huge police presence there it's a highly commercialised site with a lot of outlets for big brand names now this sounds like it would be counter to those commercial interests how many hours will this tent city be allowed to exist do you think stacy

expenditures going to lead ultimately to nixon closing the gold window in one nine hundred seventy one stacey herbert who i do the show with brilliantly asked me earlier in the show can obama if he was really a leader do a reverse nixon and just say we're going to reopen the goal window at twenty twenty five thousand dollars an ounce to inflate away these debts well that does it inflate away the debts i mean that that is an attempt to remind the thais gold put the u.s. back on the gold standard yes that's what we should do but there's no chance that we're going to do that certainly not under obama you know that was the last time the u.s. government actually did default we default on our promise to pay gold and basically rendered a dollar i fear not i would go real value but i think at a loss that you're going to see in the dollar it decade ahead is going to be far greater than a loss in one nine hundred seventy s. because the dollar mean changes reserve currency status despite the fact that we defaulted on a promise the dollar now is going to lose that status right now the only thing that's standing

cash crisis rages across the united states and europe financial group max kaiser and his co-host stacey herbert give us their take on the situation the kaiser report is next right here on our two. guys or this is the kaiser report. stacy herbert apparently the vampire squid is back to devour us and only an alien invasion force can save us stacy herbert yes max well the global financial deflationary collapse that continues to this day almost three years later apparently only inflation can save us and placement is impossible via the central banks the only thing that could stop it is here is paul krugman if we discovered that space aliens were planning to attack and we needed a massive build up to counter the space alien threat and really the budget deficit took secondary place to that. this slump would be over in eighteen months twilight zone economics so paul krugman over there the new york times all of the stimulus package the work ready shovel ready the solutions all failed and he's calling on an invasion from outer space to rally the economy to overcome what is essentially still bad behavior

max ties or this is because a report on stacy herbert apparently the vampire squid is back to devour us and only an alien invasion force can save us stacey or max well the global financial deflationary collapse that continues to this day almost three years later apparently only inflation can save us and place in is impossible by the central banks the only thing that could stop it is here is paul krugman if we discovered that space aliens were planning to attack and we needed a massive build up to counter the space alien threat and really it's lation the budget deficit took secondary place to that. this slump would be over in eighteen months twilight zone economics so paul krugman over there the new york times all of the stimulus package the work ready shovel ready solutions all failed and he's calling it an invasion from outer space to rally the economy to overcome what is essentially still bad behavior in the banks. yeah and max you know you read the front page of the financial times and there's no more bunkers than an alien invasion as a possible hope paul krugman hopes of an alien invasion are no more daft than people believing that c