tv [untitled] September 23, 2010 7:00pm-7:30pm EDT
from this piece of the finished earth a book called sure can switch search old clothes new hold build to let me go to school golden retriever coaching. the headlines from out see ecology is number one as nations around the unsuccessful move to moscow to disclose that the reigns over the regions of the nobels trying to shoulder the costs road competition doesn't destroy the fun jollity kinds of stuff it's estimated that around the fifth of the world is on top or it was and they are to point out and comes. to us next out of the united nations general assembly of the person disputes nine eleven and one for saddam the western domination president ahmadinejad's speculated that these was simply not true at that time it's a way to control the middle east and hold israel for a coup boma and they hold until iran to come clean about its nuclear program.
the russian ultra nationalist in here state colin psychiatric hospital has turned himself into no we journal sorceries this meeting today allowed to stay in the country but just left the sick has a history of violence and also owned what he showed up at immigration offices he is now in custody being investigated by organized crime pleas and also for his connection to the wanted and wing group involved. there's the headlines up next rocks cars and states a whole bit look at the implications of american banks plans to branch out and iran is just ahead tonight.
max kaiser this is the kaiser report if you're walking through the airport right now stop and watch the show forget the plane going anywhere important watch the show instead send the kids to the arcade watch the show hey did you know that world war three started and is and were you aware that well it's on you left the protestant on your way to the gate world war three started and now it's over let's get the details from political analyst stacy herbert max that's correct world war three has apparently ended before it even started the first headline reads exit harry scholtz pursued by a bear he is a legendary news letter writer harry shelter a legendary bear as well he says end of his newsletter that this war pending war on iran which was the beginning of world war three has actually ended before it
started and how can you tell how do i know this he asked follow the money not the propaganda he says for u.s. banks are to open branches in iran citibank and goldman sachs are among the first applicants since goldman sachs is the alternate or behind the scenes u.s. government as we all know that name news assured me of the good news yes well stacy herbert as you know on this show i said to tehran if you want to avoid getting bond this fall by israel's last goldman sachs allow goldman sachs and citibank to open a bank and. into a room and therefore take out a billion or ten or one hundred billion dollars of loans and you will get bombed well that's correct so listen you know i'm listening somebody has an artistic expression of going after these bankers taking on the bourse abbey how firm and style swedish artist anika longer an attempted to levitate the frankfurt stock
exchange on tuesday using the kinetic energy collected from supporters on the internet the project is called the stock is rising oh we haven't heard abbey hofmann's name in a while for you kids out there he was one of the activists that was around during the one nine hundred sixty s. in the during the previous century when only myself and peter lavelle were alive at the time and we talked a lot about abbie hoffman in those days the civil rights marches and. of course now he's trying to levitate the pentagon this woman is trying to levitate the bourse and frank for using telekinesis you're a gallery style if you want to just raise the bourse you know ben bernanke he should try this with inflation of america because everything is trying right now quantitative easing buying back toxic assets jawboning the market lying cheating stealing it's not working deflation is tearing that economy apart joblessness is skyrocketing and the average living quality of life situation over there in that
that hole between mexico and canada is going worse well you bring up something ben bernanke who is everybody in the whole u.s. economy is looking for to save the day you know whether it's political leaders or central bank leaders they want them to rescue us save us with your magical work and that's something that this artist anika longer brought up she said i don't see the ambition to levitate the building meaning the frankfurt stock exchange as less absurd than what is going on inside the building he's right they both. believe in an outcome missed way of thinking that they can somehow magically create g.d.p. growth without massive amounts of debt creation keep in mind that during the last twenty years stacy herbert the g.d.p. creation in the us was accompanied by massive amounts of debt creation twenty five years ago for every dollar fifty or two dollars in debt that was created one dollar
in g.d.p. growth by two thousand and seven it took seven to eight dollars in debt before he ended up with a dollar of g.d.p. growth now that's not a viable economy that's a corpse that you're pumping in more debt and yours calling that a viable economic entity it's not it's a dead corpse that you're just it's absurd ben bernanke is a bit of a necrophiliac at this point but it's also goldman sachs and citibank are now applying to go into iran unless you accept this magical thinking apparently you're going to be bombed and they are there in the frankfurt stock exchange they're in the new york stock exchange they're now in london stock exchange they're in the shanghai stock exchange creating magical thinking and and turning assets into liabilities wealth into debt and that's what they're doing their own whoever decides to take on america's massive liabilities will escape the bombing of the market can only make money in two ways keep printing bad paper bonds or war were
fair so it's either welfare or bombs or warfare bombs you've got welfare bombs on wall street that are selling phony counterfeit bonds and then you've got warfare bombs in the pentagon who start up ridiculous wars you know a lot of people say hey you know what since nine eleven has been another attack on the u.s. you know what they don't need to attack the u.s. again they did what they set out to do the economy is destroyed they're moving on the do other stuff i mean the u.s. it's done well speaking of done here is the next headline downward mobility report us. ramle income has tumbled steeply in the last decade the inflation adjusted income of the median household smack in the middle of the populace fell four point eight percent between two thousand and two thousand and nine even worse than during the one nine hundred seventy s. when median income rose one point nine percent despite high unemployment and
inflation bears all that debt that they keep pumping into the corpse and saying it's g.d.p. growth it's not g.d.p. growth and then it got saturated there's only so much from aldehyde that you can pump into this corpse before it starts to stink to high heaven and then you've got to say oh it's a dead duck and we can't stuff no more debt there are no more well the remarkable thing about that two thousand to two thousand and nine so incomes of people who work who have a job in america fell by four point eight percent yet that years two thousand to two thousand and nine what does one think one thinks of a massive spending binge the shopping binge to end all shopping binge as americans went on a crazy consumer binge buying houses buying all sorts of things cars vacations i pads ok and that income did not come from wages it came from borrowing against our house that was being pumped up artificially by fannie mae and freddie macin wall street then the party ended the house prices collapse and you're just left
there with the falling wage no west no network and no country. i mean that's that's that's that's one of the spending power came from the borrowing from debt that's what we're talking about the american experience of shopping came all not from wages they haven't worked a day in their life for decades they've been living along just of the chinese for decades they don't go work anymore. they're both america's bums you know welfare bums or war for bombs they've got nobody has worked in a day in their life anymore their incomes are falling but they keep on consuming so look what happens in europe in greece when incomes are falling people stop consuming and look what happens greeks get cheaper ikea shelves us prices drop and recession ikea slashed the price of billy bookshelves whatever those are in greece by twenty two percent france said coach allen a statistician at the o.e.c.d.
explains for greece and ireland it's a question of supply and demand people aren't buying so they cut their prices the u.s. doesn't have any of the market mechanisms anymore they have no freaking mark capitalism they don't have any of these price discovery mechanisms that's right. how many of the homes in america are controlled by fannie mae and freddie mac. the vast majority they are not allowing market prices to exert themselves they're not allowing the market to tree down to reflect the demand there artificially keeping prices high for housing in america it's a it's a zombie economy for this very reason the only thing that anyone creating policy in the u.s. government should do right now is to let housing fall to where supply is equal to demand stop subsidizing housing immediately all you're doing is prolonging the
agony obama you know see this for allowing fannie mae and freddie mac. to continue to support house prices as you as you are doing you are a sadist sir you just you're in the mark you son house of sadism but there is albeit with credit cards and these credit cards are refusing it gives them purchasing power that would not otherwise exist sending false signals to the market so people keep on producing stuff for this economy where the people are zombies. but it also is like a a side five futuristic war movie it's like they have zombies who continue to support wars that they can't even afford to buy their own food let alone supporting a where are they getting the the luxury to invade all these countries. well it's being cut off from them by these other countries again that's what this is the point i'm trying to make stewart is that you don't need to attack the us anymore it's the job is finished the economy is being drained it's bleeding out you know to
use a term from a one of those cop shows where the victim was always bleeding out of the u.s. economy is bleeding you know because it's did ok let's not let's stop talking about in the present it's talk about in the past the u.s. seven hundred seventy six two thousand and eight it's done put a fork in it it's finished here's another headline that proves that it is the end of the beginning of something new innovation shifted to china during the downturn u.n. report so the world intellectual property organization said that patent applications in china jumped by eighteen point two percent in two thousand and eight and eight point five percent in two thousand and nine this contrast to the us where it fell by eleven point seven percent in the same time now why post says china is moving up the value chain and rapidly increasing exports based on domestic you know of ation . andy grove and point former c.e.o. of intel america thought they could ship all the low paying jobs to china and keep
all the intervention but low and behold now china has both the jobs and the innovation well of course the transition from one empire to the next always and ugly as we know world war one world war two was during the end of the british empire and we talked about the ending of world war three which apparently never happened here is world war for chinese japanese relations and chaos amid disputes over currency natural gas and a detained fission captain apparently depan found out that china was secretly buying up government bonds in order to sustain to drive up the price of the yen alue of the there's world war four as you point out between the currency trading that's going to go on china and japan now are openly. battling in the currency pits as we've been talking about on this show for a long time the world war of the current world war will be fought in the currency pits i'm rooting for china i think japan you know what i don't like about japan situation is that they have painted themselves as pacifists for so many years and
yet who's financed america's iraq war afghanistan war and all this other stuff it's japanese money japanese money has financed america's wars so they're not pacifists well some say japan is an extension of the us central bank so they could japan to j.p. morgan and the federal reserve bank they're all joined in one con fab daisy chain of on the whole the currency manipulation and of course you've got tighter sankoh china is a currency manipulator meanwhile they've the japanese yen was openly and obviously manipulated just recently to help america fund their purchases of all these chinese made goods they're obviously manipulating their currency so the geithner talking out of both sides of mouth hypocritical nonsensical neo liberal nincompoop once again taking america's economy down into their god are tim geitner yacc are i think you're with us all the time for we have this week thanks for being on the casa
this is st still keeps its secrets but now it's time to reveal. the soviet fine house on the embankment. to go as you. please dump the future covered. yes welcome back to the kaiser report now first national treat we go to new york city to speak with stock market junkie joe wiesenthal of business insider dot com joe welcome to the kaiser report thanks for having me joe just a quick question what's the best pizza in new york city. i don't know i think you
know the odds are better than me which one is let's move on i'll tell you i'll clearly you know you're not up on what makes new york new york right now joe i'm looking at the sideline bed bugs are the new sexually transmitted disease in new york what is happening in new york sitting there everywhere there are the abercrombie and fitch store the victoria's secret store there and airplanes there in movie theaters there at the nike store everyone's forgot about them i think bedbugs are like tenfold in the last years supposedly based there was all bedbugs were almost eradicated completely. banned. stroke of insight there then ever since then they've been climbing and i guess the. elbow and the curve and now they've just taken off but i heard the main source really they're hiding in donald trump's hair that is under verifier and unprovable but you know it certainly is going to theories and he has but sort of these bedbugs are supposed to be resistant to. the past aside and they are forcing stores like nike
town in midtown to close down this is a huge retailing space i mean that you know in retailing like in the hotel business every day that goes by you not bump in sales you never get that back now this is got to have an economic impact what went to just new york going back to forty seven dollars for the whole island i don't think it will be quite that bad i don't think we're going to get reduce the debt but this could be the shock that puts us into the double dip. this could be it now right now joe why does business insider and you particular hate gold. i don't hate gold i love getting the gold people riled up there's a big difference i own a little bit of gold and so i don't have anything against it but the gold gold believers are so so religious in their beliefs it's impossible to not be tempted to poke at them and see and watch them scream a little but you know you are
a paper bug ok you are paper but you believe in the sanctity of the at currencies and the orthodoxy in the federal reserve bank and you're going down a torch of going up on a cross of gold you know you're going down that's right no that's fair and you totally have the right to attack me as a paper by a good watch me squirm whatever i'm in whether i am or not is beside the point but i just have i enjoy i enjoy the back and forth incidentally by the way who is the only global newscaster in the world over the past several years that's been absolutely hundred percent right about go i've heard that it's you mexico i think it might be. all right very good let's talk about china and the u.s. and what's going on there are they currency manipulators and they are not currency manipulators is the economy a bubble is it going to bust what's happening well there are generally currency manipulators i mean there's no way that anyone's economy stays in any one minute currency they have their price their currency fixed i don't know whether the column
is a bubble what i do know is that the tensions are going to be real and up you know up until a couple weeks ago was all about the u.s. versus china the tensions there and now suddenly in the last several days it's all about china versus japan japan's intervening week and it's yen oh wait a minute wait a minute wait a minute japan japan just intervened to we can assume that sounds like currency manipulation everyone's a currency manipulator. every world bank has a point where they want to see their currency added they figure most beneficial to their exports their consumers if they want to strong currency so it's just as a global game wherever it's a poker game and all the world's center central bankers are sitting around a table trying to push chips to one side or another and it's never going to and there's never going to be a period so long i guess we have currency where central bankers are manipulating their currency and it's not you know it's just going to the cycle will go on forever. right and it's just you know it's about where the tension is right now the tension is japan and china and they're also going to be you know geo political
situations there's a fishing boat captain from china who's being held in detention in japan and that's creating political tension there's a dispute about a natural gas field of both countries or so all the sudden is a lot of tension between the two countries and it's playing out on the currency right and the number one currency manipulator in the world is the u.s. and the u.s. dollar and the number one way they manipulate the currency as my artificially keeping the price of gold down through goldman sachs and these other market manipulators but let's move on i have recently written a quote we'll see there way before we were it but go they were trying to suppress. the price of gold artificially would you say when it is at an all time high i mean what other artificial is a present commodity is at an all time high the gold ball hasn't even started yet this gold move is still in a bear market hadn't been allowed to trade naturally based on supply and demand for the last ten years and already be a twenty five hundred dollars which is the inflation adjusted price it's still
cheaper also if there were inflation has been and is clearly with j.p. morgan shorting tens of thousands of silver futures contracts over the cull max and selling short made its short selling it's so immoral joe it's so unethical joe your own pranks in your own city are committing fraud massive fraud my naked short selling silver futures contracts are you better stop you're making me lose my composure i'm cracking up so let's go let's the next subject all right now well let me go on that one let's talk about you recently wrote quote senior citizens forced america into another deflationary last decade talk about this well this is one of the big ideas about why japan has suffered for so long which is basically an aging population is a been very much in favor of deflation when you're on a fixed income when your investments are usually of a fixed income type you want to see deflation that's good for the cost your cost of living it's good for your investment and so the government basically kowtows to
senior citizens and we could have the same situation here where you see a lot of people there ready own their own they're on a fixed income they're on social security and basically maybe would benefit much of the population see more inflation but because our seniors are so well organized here. and they actually go to vote like other people it could just be that as appalled policy decision would basically maintain that inflation to appease one of the most popular powerful political bloc so he set down for seder our thanksgiving with your parents you say mom dad we're not going to count out of you anymore we're going to cut you off no i'm not going to. say that i'll change the subject. in defense of seniors i mean well that sounds a little bit ridiculous but you know obviously you get blamed for a lot of stuff on fairly i mean you get blamed for all the social security and health care cause people know your mother gave birth to you know you want to stick around an iceberg to float around to the water to be eaten by polar bears in
sharjah that's exactly what you want to do so you want people who raise so now you want to throw them on the scrap heap go let's go to i don't want to do that yet in fairness to them in fairness to them i don't think that they are the cause of all economic problems now i am going to talk them i'm going to talk to mother jo mrs lee's up all about this essay which she has to say about this i don't have the spectrum the under twenty five's you've got unemployment rate above twenty percent in the under twenty five age bracket this is a lost generation this is this is the worst employment environment i think in forty years right and so you've got a whole generation now coming into the workforce when there is no work to be part of the force. how is this how do you see this in new york and around the country i mean what is happening with this new generation i would imagine you're almost a part of that new generation yourself joe isn't all yeah it's kind of a real bummer for this generation i mean obviously the job market is pretty
terrible but you know young people you know i know a lot of people in this generation a lot of them have taken out realistic amounts of money to pay for college to get a degree that never really had great employment prospects even in a good economy. and you know i think there is something to this idea that after year if they're under you know decades of a strong robust economy that eventually the country kind of goes off and i think that criticism is probably warrant some of the thirty or twenty five and others that kind of gone soft and we not really you know maybe need some time to toughen up all right so you. recommending some kind of intergenerational warfare so you in your twenty five and under is going to go to war with grandma grandpa to make sure they don't get any of that retirement money that they worked their lives to secure that's exactly what i'm advocating. all right so you're organizing your year you're under twenty five force of generation as i guess at this point we're at the running
out of letters in the alphabet like those hurricanes at the top and they had back up to double a now back to double a they're going double generation double way all right so consumers in the us there's talk of that they are scaling back the leveraging pulling back is that true i see a lot of these apple products flying off the shelves where's that money coming from well not only spending it on apple products that's actually the funny thing in every regard basically they're leveraging there are still cutting up their credit cards their household wealth is evaporating so that's no longer any kind of source of cash the one so they're you know they're keeping their spending on basic necessities food shelter clothing and but apple products are a huge seller is it there's talk that the folks who are for walking with their mortgages well and they're not paying their mortgage down their debt anymore they've gone negative equity yes suddenly have an increase in that monthly discretionary expense so-called and they're up by i pads and i phones but
i mean it seems superfluous on one hand but them on the other hand these are fairly sophisticated tools and computers that you can use them to be productive in some way i mean well not only that but i mean actually last week i think it was the c.e.o. of best buys that. i pads were actually cannibalizing pretty significantly sells laptops and heaters so actually rather than looking at this is a big expense maybe the proper way we should think about it is further evidence of the leveraging that there's they're saving money by buying an i pad rather than a force. computer so it appears to be in its dragon purchase it's actually a cost saving and therefore perfectly consistent with everything else of course the federal government will have to make an donek adjustment to account for i pad versus laptop and the showcase how a octave the economy has to see how that shows up in the c.p.i. finally your thoughts on these a midterm elections that are coming at
a coming out democrats look like they're losing big if i go to entrain dot com to get the latest on the prediction market i think it indicates indicating democrats are going to lose big what could have bamma have done differently nothing he could've done anything differently they're going to get swamped is going to be ninety four but it may it it probably is going to help obama i mean you could him up next to our christine o'donnell over the next two years that's right his best shot of getting reelected and. sounds bleak all right well. again soon to catch up by that i don't have better news for the best pizza in new york is on macdougal stay at a place called bend someplace still there i've been to new york city in over ten years but it's probably still there it is the best pizza in new york joe wiesenthal thanks again for being on the kaiser report thank you and that's going to do it for this edition of the kaiser report with max kaiser and stacy herbert i'm with my guest joe ways and fall from business insider dot com if you want to send me an
e-mail please do so my ties are reported r t t v dot argue so next time this is matt kaiser so. he's available. super to look at your hotels. a memory watergate hotel. princess hotel marriott cool job hotel. suite hotel bankole the imperial hotel. sure some hotel. golden cliff. but tara discovery beach hotel. one trip your resume. barracuda.