tv [untitled] October 29, 2011 5:30am-6:00am EDT
here with r t the main stories we're covering for you this hour american anti corporate protesters now have to battle the upcoming winter without power supplies after authorities confiscated their generators and clever they remain on a positive note as their ranks are both on the remains of the national guard. germany's nationalist party support for its anti immigrant starts growing in the country critics say the trend is giving rise to brown and pride and could cause deeper social divisions. than the man who robbed millions of people their life savings and i see now it's his back is once again promising the earth are still plenty of people ready to invest it his quest no surprise. black snotty the kaiser report though down on the top financial stories and they stay the same.
because the report let's talk about johnny blair will market in a storied other psychopaths state herbert. herbert to you max first headline banksy presents new artwork to occupy london movement now of course as with every single banksy art nobody knows whether it's his or not and this controversy already on a banksy form there suggesting that this could be from the kaiser report itself that created this work and presented it to occupy london because as you see in this little image keiser wark dot com everybody's taking s. as the max kaiser but what's fantastic is that now that we're on three times the weight goes out to two hundred fifty million people around the world everyone kind
of looks over their shoulder thinking about cars record all day long max and stacey that's all anyone thinks about because that's all really that matters in this new post occupy wall street world post global insurrection against banker education world this is all there is we are here we are talking we're no longer playing stay the log watch the show tell your kids to go play to the voting machines just watch the show well that's the clever thing about this everybody takes this kaiser report dot com but if you look at it it says kaiser warts and one of the original meanings of the word wart comes from london slang meaning fine splendid jolly or boisterous nobody can accuse you of being too boisterous max oh so it's a circle entendre well i'll tell you the other two meanings yeah i already saw stuff because of my laser like oh i'm well the other option is in new zealand and australia refers to a financial impropriety particularly relating to
a government program defrauding the government program while defrauding the public has become the de facto modus operandi of all the g. twenty nations as they perpetuate their massive ponzi scheme europe is going to be ok with leveraging the european finance all thing that they've created that just means more. currency fraud gold and silver to the moon gold and silver to the moon i think but you know talking about banksy one of his clever pieces of art and that was when in response to a salaries option where his artwork was selling for seventy thousand pounds of pot he created this piece of art called i can't believe you morons buy that. again we have to bleep that word out of course i'm sorry but i thought this would be a great piece of artwork to be plastered across every single prospectus every single collateralized debt obligations or mortgage backed security that goldman sachs and j.p. morgan tried to sell to
a pension fund is it has to say in bold images right up front i can't believe you morons are buying this toxic waste well in postmodernist are seen the value of art is determined exclusively by art enabled propaganda you know as the transition from representational art to abstract art to post abstract to post data is to post post modernism we only have art now that's value is determined entirely by the ebb and flow of mass hysteria as it relates to thread a schizm as it pertains to something of perceived value post any warhols campbell soup cans where he turned something common a soup can into a fetishistic object that had to be bought it any price answer banksy who rightly calls on the cars the report as being completely in tune with the current design
post post post information age were art value is determined by the collective unconscious winching and the central bank policies are similarly affected pure propaganda he says he's trying to promote inflation but in fact he's scared to death of deflation it's deflation that put. bernanke in the soup line and we can only hope that his fate is the same as moammar gadhafi remember it's either banksy or it's kaiser report that created that art let's move on to why i think we need to have i can't believe you morons buy this toxic waste plastered across even the foreheads maybe of any central banker or too big to fail banker guess who's even more leverage than the european banks this is on zero hedge dot com and it comes from phoenix capital research and they're saying that while the world is awash in the quiddity no one seems to notice that it's actually in the form of leverage or cheat debt not real capital or equity so this is important to know as these g.
twenty nations meet in the south of france this week and the u.s. banking system as a whole is leveraged at thirteen to one which means that an eight percent drop in asset values mean they're totally wiped out the european banking system is leveraged twenty six to one which means that a four percent drop in asset values mean they lose all equity but max guess who is the leveraged the most the federal reserve bank of washington d.c. what is the exact number there levers if they're at fifty three to one right so it's a value collapse of less than two percent means that the entire federal reserve is bankrupt now here's the thing about a safe here but is that if we listen to the propagandists see n.b.c. or c.n.n. in the united states like erin burnett for example she had a video out there castigating some poor occupy wall street protests are guy saying that the g.m. and bank bailouts are profitable now that's not true because they just took the debt and put on the fed's balance sheet and now when the fed goes bankrupt all you
need is a less than two percent swing in asset values and the entire dollar collapses into a pile of horse predators and their soup of course will still get her salary for telling lies and propaganda everyone it seems to see will still get their salary james cramer who's killed more people in the equity markets then even bernie madoff will still get his salary bonus because the. it's all about perception not about actual value speaking of perception and not actual value look at how smart the american population is they sense this the hill poll voters say u.s. is in decline or resound and sixty nine percent of respondents said the country is in decline the survey found while fifty seven percent predict today's kids won't live better lives than their parents perhaps a little they true and sooner or later you're going to see this reflected in the stock market so people who are concerned about the value of their net worth should start to make negative bets on the united states economy in
particular companies that are exposed to the global the sense of like i'm thinking maybe coca-cola for example our friend adam curry has got an occupy coke campaign running on top of the campaign we had a few years ago these are the kinds of companies that once the say in the dollar in america collapses that stock could go to zero and if you're making negative bets you've got a hedge against collapse and a loser preserving your own wealth well the theme of this show is i can't believe you morons buy this bleep now we're saying here that only the g twenty guys only the circle isn't berlusconi's and obama isn't geithner's of the world meeting down there in the south of france this week by this they push on us the population itself knows it's no hoax they know it's a joke they know there is no hope in their ponzi scheme economy yeah that's right the awareness is building and on the margins were economically
speaking or price discovery and price action begins that's why we're seeing a fundamental change in other words like barack obama talked about change but his was a top down change all talk no action you know as they say in texas all hat no cattle this is a fundamental grassroots change incremental on the my. margins which of course will could change the center change the dynamic that's why all these occupy movements are extremely important every new individual that sits down and says no. that enough it triggers gets closer toward a global collapse of the dollar which is the world's prison currency well the other important ingredient in this financial collapse is the price of oil not a myth the skyrocketing cost of new oil supply and this is from the eat i am you will energy review and it shows that the capital required to add an additional
barrel of oil to reserves experienced a step change starting last decade and you see from two thousand and three to two thousand and four max straight up one of course happened in two thousand and three the i reckon beijing iraq invasion and invasion a war without any intent to pay for via taxes that's the first war to be financed by just inflation stealing from the population so the iraq war has caused rampant inflation and we see this down the cost of getting that barrel of oil out of the ground and processing it the absolute absolute price of brant crude prices cetera has moved and it's quoted often and you get the sense of where the oil market is but the people don't understand is the cost of actually pulling barrel of oil out of the ground and what you're talking about here is that the prices skyrocketed because all the inputs that go into getting a barrel of oil out of the ground those prices are skyrocketing due to all the money that was flooding in the system to pay for america's genocide of
a million iraqis for tony blair's retirement fund speaking of tony blair i have this headline max tony blair is team have set up an office in kazakhstan says presidential adviser so believe it or not any body who calls tony blair in to advise them they usually end up buried at sea or in a unmarked grave in the dead. lo and behold apparently cause i president nursultan nazarbayev has hired tony blair associates to advise him now the article points out that with his vast energy supplies central asian state is increasingly confident and prepared to spend millions to promote itself tony blair himself says he is not personally making a profit directly or indirectly through tony blair associates or any company on this but i buy and put on all the leadership in this country that tony blair just entered because nobody is safe now the tony blair is there they're all in the
crosshairs if you if your leadership there you go you live your life you should leave immediately because tony blair is in the house and tony blair is in the house the big house of the vatican house of course and this brings me to blair's buddy pope benedict that a king calls for essential world bank to be set up pontifical council for justice and peace in a document called torrents reforming the international financial and monetary systems in the context of a global public authority yes they're calling for a new global economic authority and a central world bank to be run by the un under which tony blair now in riches himself around the world i mean to think that the pope is coming out and saying the vatican will this be a world bank because everything that's caused millions to die is centralization of financial authority in too big to fail institutions so here you have the vatican saying let's create an even bigger too big to fail situation to create more murder more cessna nations more war this guy is completely inconsistent with anything that
philosophically or theologically speaking that he says he represents this is the connection and cod c.-max here says it should be news to the ears of occupy wall street demonstrators and similar movements around the world who have protested against the economic downturn. first of all we are not protesting against the economic downturn we are protesting fraud against banking fraud occupy vatican occupy vatican it's a global insurrection against banker occupation and we're not saying who cares if the economic downturn this is economic collapse caused by financial fraud unchecked plus the vatican bank is one of the most corrupt banks in the world it's as corrupt as goldman sachs and j.p. morgan it's as corrupt as they just be saying it's across any big bank but i think he he was concerned about stephen schwarzman and lloyd blankfein getting you know
this guy game trying to grab goldman sachs and and all these look like i said he's doing god's work yeah like oh wait a minute i got the big. thanks so much for being on the kaiser report thank you max i'll go much more coming away to stay right there. those who are fascinated with history. to those who have a sweet tooth. to those who can't live without discovery. and of course to the nature lovers this magnificent land offers its treasures.
bush. between earth and the sky. on our team. i am nice guys are welcome back to the kaiser report time now to go to atlanta georgia speak with gal for berg gal is an actuary who writes at our finite world dot com and you can also follow her on twitter at twitter dot com forward slash gal the actuary get all the actuary welcome to the kaiser afford ok q all right gal according to wikipedia an actuary is a quote business professional who deals with the financial impact of risk and uncertainty so the question is where the risk uncertainty in mind to tell us about your latest article on the united states as debt bubble unrest close for the america and the whole world at this time well i think probably contributes to
g.d.p. growth as it goes up. as you state reaching limits in oil supply or whatever kind of broader finite resources that we grow into limits and then your debt bubble stars a flavoring and it acts the reverse direction it hardens d.d. g.d.p. to decrease rather than increase i mentioned oil there to what extent is a has all supported that bubble in america well i think has helped us have economic . growth that was especially true prior to nine hundred seventy when it was our own oil supply that we were pumping out. and our growth rate was higher back prior to nine hundred seventy then we started importing more oil using oil from around the world the while that we had from elsewhere were. sorta but not
quite as well as they were we had ourselves and our road growth rate slowed down and after we were going one hundred seventy one thousand he period and so we'd been any lower cheapie growth rate but the fact that we had well here helping us keep the growth rate up and helped us to maintain our debt girls who are cheap as can result in a combined high growth rate right now at all certainly the g.d.p. has been bouncing around over the past twenty or thirty years they had a nice pop there during the reagan years but oil was certainly contingent on the growth of the debt bubble g.d.p. there is a relationship there so now that america occupies iraq libya they've sent troops to uganda with these oil reserves secured by the american empire will this enable this debt bubble perhaps to resume growing and maybe it's just the way the us will see
its way back to growth oh i don't see the military approach really has worked very well in the past we had all kinds of military interventions in iraq and even now or oil production in iraq is just barely growing up and while exports aren't going up at all because they don't have the export capacity even if they do have increased while production there is no direct translation of our military efforts to hire or oil production and i suspect we'll have the same situation elsewhere i don't care what you're describing here in terms of a debt bubble collapse is deflation something we saw in the one nine hundred thirty s. after the run up on the stock market and other assets in the one nine hundred twenty s. you had the big pop the big crash and you had the i d flash unary depression and what you're describing here is a deflationary depression of debt. dip implosion and inability of policymakers
to restart the inflationary powerball the reserve bank is however trying to. restart inflation by clearing as much money into circulation as the possibly can over there the fed is the deflationary debt implosion going to continue at this pace in your view in so we end up out in one nine hundred thirty six style depression. worse than we are now or will there be any intervening force to counteract that where i think we probably will head towards something that looks like a nine hundred thirty style impression. i'm not quite sure exactly how it works out but i think what happens is the the prices goods that people use on a day to day basis you know good food and clothing are going to continue to
rise what's going to happen has it's going to be increasingly difficult to sell assets that normally and debt are associated with their sale and so there's going to be here for a nation in home prices or just inability to sell them in commercial businesses her air and even stocks and things of this sort are are going to be affected more by the time the prices are here every day commodities that everyone needs right so this is it's a bit of a mixed bag isn't it because although you have you have what's called cost cult inflation with energy and food at the retail level that people point to and say oh look at inflation when you compare that against a backdrop of the housing collapse and the bond market collapse the net effect is still deflation isn't it yeah i think the bears there were. he would describe it
but from the point of view of the ordinary person who maybe has who maybe not a whole lot about minimum wage and i think they may see it is important sharing right now let's talk about china for a second because one of the primary reason really by having seen inflation in the us despite all the money printing is because of the offset that comes from chinese labor force that has knocked the u.s. worker out of the box and has contributed to this massive wave of deflation and china of course sucks up all the cash and they're hoarding it more last year got trillions of dollars of the reserves they're not research elating it not sense they keep that u.s. dollar un pegged in place so china is really i would say the biggest obstacle to the less being able to grow its economy again. how is that going to play out in your view gail going forward oh i think there's another aspect to the chinese
economy too andat is at least their internal rose has been propped up with a lot of debt of their own building all kinds of apartment buildings everywhere i was just over there in may and some for myself how much building had gone on but there are all kinds of government projects and there's a lot of debt that undermines all this and so china needs growth to support all of its stats as well but it's happening is that its customer base is slowing down in the price of its coal it's by rising the price of well that it prices rising as well so it's starting to feel some effects so there are some definite issues with china actually being able to keep up the pattern that it's had in the. past and it may start hitting recessionary impacts as well i'm not
ok well what used what you describe in areas or in the past of one country's economy is slowing down another one might pick up and this has gone on for many decades it is part of the global scenario economics for quite some time but now if china starts to slow down in a meaningful way it we're talking about a global depression so a coast collapse what happens to the dollar and does this affect the currency markets in any way like we saw after world war two when they came together and they create a bretton woods agreement having to reconfigure the global currency market to see anything like that developing yeah i think there's going to be some major upsets in the currency market i think and then the euro their way you know all of the activity we're seeing no repair i'm afraid we're going to see is not really a break up of the euro or some of the. countries leaving the euro or the euro just
falling apart or yeah there you know there's kind of a race towards the bottom everybody wants to have their currency to low and they're better able to sell exports broker who are situation this doesn't work i think there's going to have to be some sort of like you say a reconfiguring but i know it should be able to reach an agreement right now you mentioned a call there a moment ago and i want to pick up on that a little bit you know the history of energy usage over the years you know you have whale oil which gave way to coal which gave way to oil petrochemical oil now is there another energy source in our future that's going to be able to pick up the slack in your view i don't see that there is i think i hope back in the seventy's when i was there was going to be nuclear energy but now we've seen so many bad results from nuclear but i don't think there's really high. that bats the one
that's going to really take us to the future maybe if we had tried story and back forty years ago and got our were wrinkles worked out and used and stolen uranium maybe that would have worked right at this point it's really getting too late in the game to find a new energy source and get it going can you give us a one minute breakdown on thore and i just was reading about this recently we had a point going back to the dawn of the nuclear age of choosing. nucular substances and can you just give us a one minute summary of that story well third is in some sense similar to your rainy end but it doesn't leave you with all of the radioactive residue it's a problem after fact so it would be a much better source from their point of view it also is available on rush larger were it east so it wouldn't be as much about problem for extraction from
around the world and also when it's mine it doesn't cross on the problems that the uranium writes i'm assuming that the lobbyists for the iranian industry have their way and that's why we have uranium today. but let's wrap it up of you've got about a minute left your final thoughts on what happens when the debt bubble or the peak debt meets peak oil which is the moment we seem to be at right now these two developed simultaneously over the past thirty years the debt bubble grew as the oil market grew now that we've had peak oil we've also had peak credit or peak debt so what's the go forward from here again i think we end up with a situation that looks a lot like the limits to growth what was forecast back in one nine hundred seventy two in the book was originally written are where you have a downward spiral in all areas of the current to me it is driven by.
limited resources all right well that's all the time we have thanks so much gallant for bird for being on the kaiser report thank you all right not going to do it for this edition of the kaiser report with me max kaiser and stacy herbert thank my guests gail tour of argue can follow her at her website gallery actuary now if you want to follow me on twitter i'm at twitter dot com forward slash max keiser stacy herbert you can follow her to using her name or you can also go to facebook dot com slash kaiser report and keep up on all the updates and we ask you questions on our show so we rely on you to help us and if you want to send me an e-mail you can do so in the reported r t t v dot are you so next time this is nice guys are saying. the name of the.