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tv   [untitled]    May 3, 2011 3:30pm-4:00pm EDT

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hello because reports on a shortly snipe at these the top stories before that was the milestone in the war on terror also a pre-election stunt could expose al qaeda will crumble after the death of osama bin laden but do believe the timing was perfect to strengthen the u.s. president's political ambitions. police have reportedly arrested three russian suspected of terrorist activities and allegedly come from russia's volatile north caucasus region and are operating as part of a multinational group. missile interceptors in romania pose
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a threat to russia's nuclear deterrent says moscow of the bucharest announces it will host the us defense system. also the man who blew anna chapman scrubber is charged investigators conclude their work over the disclosure of an eleven russian agents in the us which made for a dramatic real life spy saga last summer. he watching r.t. from moscow. pastor this is the kaiser report talk about your leading economic indicators as you know that according to a recent study the best looking and highest priced hookers are now in washington d.c. and no longer in los angeles california first to give you an idea of how the economy is going and the united states let's take a look at all of the money in washington d.c.
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says you're going to go up next we have a financial war going on and i have all the evidence you need in my headlines today central banks pump three trillion pounds into world economy so the world's central banks have pumped three trillion pounds or five trillion dollars into the global financial system since the crisis the equivalent of eight percent of the world economy according to a new analysis by fathom consulting yes and how do they do that pumping they pump it through the banking system they pump it through the primary dealers on wall street and the banks of the primary dealers hold onto it and pay themselves huge bonuses so it's totally ineffective it's part of the way the entire system is broken but please continue maxwell the e.c.b. was the biggest contributor to this liquidity injection of five chilean dollars the u.k. was the lowest contributor in terms of these big four central banks but the figures according to the article will intensify fears that the extraordinary injection of
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liquidity is responsible for rising stock markets rather than any underlying pickup in corporate health or investor confidence right now as i explained the money that comes from the central banks say they inject credit let's let's be honest money in the sense that it has any value other than an accounting leisure jermain they give it to banks and on behalf of the clients they've been buying state assets and. they've been making their clients the top one percent of the global rich they've been making them money but they won't let it trickle through to the other ninety nine percent of the global population and that's why you find somewhat of a revolt in revolutions around the world is because people are saying wait a minute what are we chopped lowder well it's a financial war as well and essential banks are harming the banks they basically put in a cargo on the bottom ninety nine point nine percent probably ninety nine point nine nine nine nine nine percent actually so this is the way central banks are
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operating on this financial battlefield that's correct is that we've left the era of ground wars and tanks and bombers and things like that i mean the us still used to terrorize pakistan afghanistan and iraq yes of course but the real global war of any consequence the big war is a financial war using financial weapons of destruction and as you point out they're being used to disenfranchise huge populations just as you would with a with a bomb or a tank you know you use the bomb to blow people up i mean that greece is a great example they're using financial weapons to defraud and bankrupt the country and then they're going to scoop up all the assets for pennies on the dollar just as you would hitler tried to do back in world war two america's doing no well but back to this article here eric britton a director at his company compared the development to throw a lighter fuel on a barbecue the question he said is whether the coals are lit so that that bottom ninety nine percent whether or not there is any trickling down to them whether or
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not there's any economy there whether or not there are any jobs there where the bottom ninety nine percent are busy fighting with each other and they don't organize themselves in any meaningful way except for the silver liberation army which is been effective in taking the price of silver from five nine dollars an ounce to close to fifty dollars an ounce that's an effect of silver roots campaign against banking terrorist but other than that very little cooperation in the bottom ninety nine percent well let's look at. there see the prisoners of war of this financial war see how they're responding i have two countries the two most important countries in this financial war we have the u.s. and we have china let's look at the u.s. first image og's era would you like rage with that this is an article talking about the unemployment situation in america is obviously very dire we all know about that the real unemployment rate is around twenty percent great depression sort of paris so what's happening is a lot of americans are going to college university in order to increase their job
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prospects so because of that what are they doing they're taking on. that. which is exactly what those are the roadside bombs those about i d's but the bankers want you to step on of course so we're going to look at the what has happened because of this according to the center for american progress u.s. student loan debt is on track to hit a cool one trillion dollars in two thousand and eleven at the moment it's eight hundred twenty nine billion so that's an increase of one hundred seventy billion this year that's more than all the outstanding credit card debt in the u.s. this is where the whole milton friedman asked transformation of the previous welfare states into pure market states has failed the pendulum has swung too far toward securitization financialization milton friedman escalation and the neoliberal model so if you've got now millions of college students to graduate burdened with more death and they could possibly pay off unless they take
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a job working for a weapons manufacturer or go to work as a soldier or murdering people so this is the end of milton friedman period the end of the stature of reagan period in the revealing of really a brand new period you know the fact is they're taking on loans and they're basically they've locked into the financial battlefield they've become indentured servants because once you have this is debt you cannot escape from and you can't you can never walk away from your student loan debt despite that there's a loan default rate of between twenty five and forty three percent on all these loans just because you default it means you're not paying you're on able to pay but you can't ever escape it so once you ever get a job where you're capable of paying it they will garnish your wages you can never escape from that bridge just like you've got thousands of soldiers returning from iraq who are needing permanent care in a health facility because they got their leg blown off by some improvised road bomb you've got now thousands hundreds of thousands of students graduating with a similar financial blake being blown off in the form of debt and this is all on
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purpose from the same. banks who love crippled indebted slobs as their customers and they hate competition they hate free independent people challenging them with new business models they hate that that's why this is a war there's a war going on as you point out and the bankers are using weapons of mass financial destruction they're they're creating cripples on the battlefield and people in crippled debt coming out of the university system but somebody is making the goods and services for americans not is of course china shanghai fuel protests unnerved beijing and they are nerve beijing but they should i'm nervous americans as well those americans who are graduating with tens of thousands of dollars of student loan debt from which they could never escape they now have to pay chinese workers more and more thanks to the five trillion a weapons handed to these bankers chinese authorities were locked in to go she said last week with striking truckers who have besieged the country's largest port it
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bid to prevent the unrest from spreading to other cities so there is striking over the fact that fuel costs are rising fuel costs are rising of course because well five trillion dollars have been handed just by the central banks to the bankers. so the consumer the citizen the average joe gets slammed two ways they're paying more for stuff like food and energy and they're having to see their net worth crash due to the asset depreciation engineered by these financial terrorists max speaking of those fuel protests we're seeing commodities across the board rising i want to turn to this headline from jeremy grantham who is a well known analyst financial analyst jeremy grantham goes malthus it's time to wake up or the great paradigm shift from declining prices to rise in prices so jeremy grantham is looking at the fact that all these commodity prices are rising and he he looks at it and you see that compound growth in a world of finite resources is not possible we have to give up on that we have to
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start learning how to basically make ourselves more efficient use less energy and adapt to that. but he shows the chart here if you look at this it's a chart for the last hundred ten years and from one thousand nine hundred to two thousand you see those declining prices of commodities and this is commodity index measuring thirty commodities and they were declining at an average of one point two percent annualized over seventy percent real terms up until about two thousand two thousand and two and he says that if you see that rise all that gain of it past hundred years of commodity price falling is now wiped out in eight years right so the trend that we've seen over the past one hundred years the fall in prices due to innovation due to technological innovation due to global ization due to advances in mining techniques oil extraction techniques all trickling down to the bottom i would cheap oil and cheap food has the nadir in terms of delivering cost
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efficiencies if you look at the bigger timeline of a few hundred years what you find is that now we're experiencing a reversion to the mean in terms of costs for the raw materials that go into the economy which means that the hundred year period of law is a fair capitalism just as long as we keep paying less and less for stuff that matter how we do it either through exploitation of the ecology or by dropping bombs on people it no longer is economically viable and this is where america finds itself short because they have no plan b. they've built an empire on these twin exploitations of slave labor in china and ecological whole the cost but we only have a few seconds left but i want to make a point about that chart if you look at it there are four points where prices the commodities rally number one world war one number two world war two number three the seventy's right after vietnam this is an inflationary period you know before
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that is that present day and i say this is the find of a financial war this is the cost of the. wars that we see it's a shadow of the shadow banking system or to find out of the shadow financial war that we see going on right now it's the ultimate on declared war effectively because those on the front line are those who are having their network of end jobs if this aerated by inflation the paper bombs are being dropped on them from central banks and wall street and if you think it's going to get any better here's one final quick headline it's a chart it's a picture to look at this is the lobbying bubble of the washington public you see that the amount of money spent by lobbyists in washington has doubled as well as more than doubled and the red line there the one that's gone up the most fire finance insurance and real estate they more than doubled they spent four hundred thirty seven million dollars last year alone to make sure that war to get in the leverage they've received from that back the ten trillion or more that they've received back i think that's pretty good work by them to do the students on the
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lobby and up to workers have a lobby the consumers have a lobby no the fire insurance or real estate business have a lobby yes oh so they spend a few hundred million how much they get a few hundred billion well actually if the students realized if they recognize their worth if they recognize that they're in a war ghetto they would perhaps consider incurring a hundred and seventy billion more in debt this year alone they would maybe take some of that and go to war on the battlefield of washington d.c. where it's all happening that's where the hookers are all right says never thanks much rea on the kaiser report thank you max say too much more coming right don't go away. twenty years ago our this country is going to see. a. school janitor. who did it take.
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but going back to the kaiser report all the way this is going to be a tree timed out of go to westport connecticut talk with peter schiff c.e.o. of you're a pacific capital author of crash proof and how an economy grows and why crassus peter schiff welcome back to the kaiser report thanks for having me on again max all right you were extremely accurate in your forecast for housing prices in your book crash profe talked about fannie mae and freddie mac. collapsing all that turned out to be true we're at
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a point the cycle for housing now people are questioning how we had a bottom in housing i saw something on business insider today alluding to that but there is some dissenting views on housing housing of course is a key part of this crisis today and going forward what are your thoughts on housing peter schiff well i still think that the prices are being artificially propped up by government supports in the form of very low interest rates from the fed and guarantees from the government both fannie and freddie any f.h.a. i was to well say prices are higher than they would be in the free market but ultimately i think subprime demand will bring the prices down despite the government's efforts to prop them up and i think you're going to have to see i continually decline you've got a lot of property that open really is going to come on the market you have a lot of support closures in the pipeline you've got a lot of people going to living in homes for a year two years i didn't pay any mortgages and they haven't started the foreclosure process all right so you've got housing is still terrible shape as we
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all know. the crisis in two thousand and eight percent tainted by a lot of bad loans that were made faulty securitization false the marketing of securitized portfolios the collateralized debt obligations of cetera now the banks today are saying our balance sheets are in pretty good health however if what you're saying about housing is accurate then and we know that a lot of the loans that they're carrying on their books they value either hundred cents on the dollar that didn't bet any serious mark to market of those loans the banks' balance sheets are they as healthy as the banks are alluding to well no they're only healthy as long as interest rates stay at these artificially low levels and that's one of the reason that the federal reserve is keeping them there you know rather than raising rates like it should be doing it is afraid to do that because it will expose the insolvency of the banks so in order to keep rates low for a project you have still gone in for ten years no inflation because of you knowledge
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is was obvious then he has to raise rates but he can't do that without changing the u.s. economy but of course we need to let this phony economy collapse because in till we do we're never going to be able to build a sustainable economy to replace it and the longer we try to maintain as well though the worse the underlying fundamentals get and the more painful it will be ultimately to correct the question is i guess on everyone's mind relating to the dollar very similar to what we saw in two thousand and eight two thousand and eight had a counter-trend rally in the dollar or a dead cat bounce oh you referred to was a false rally in the dollar as are heading into the two thousand and eleven similar crunch an echo of two thousand and eight the dollar can even muster a dead cat bounce is that an indication of how screwed up the dollar is yeah i think that that rally in zero eight was a massive head fake and i described it as
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a head fake back end and a lot of people started running the direction of the dollar. and i think that people who power the dollar in early two zero eight early zero nine i have lost a lot of money and i don't expect that rally to repeat i think the real move is down the dollar specifically because of what the government did in response to the fanfic crisis of two thousand and eight one of the reasons the dollar rally was because back then there was still an unknown we didn't know if the fed was going to try to prop everything up there was a chance that they would let always banks fail and the dollar would rally in that environment but that's not what happened and the fed is shown its hand and it's it's you know it's of all inflation they're going to print they're not going to lead to banks fail they're not going to let real estate implode they're going to keep pretty money they're not going to force congress to cut spending they're going to monetize whatever congress wants to spend and you know the underdog that
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environment dollar can only go down and i said i think it has a big drop cami and ultimately i think the dollar will fall so much that the fed will be forced to ultimately do the right thing or risk a complete collapse of the dollar hyperinflation where the dollar basically ceases to function as a viable medium of exchange and the only way to avoid that is going to be to administer the medicine that we should have but i did this thirty years ago i noticed your brother in there in the money management space for example you've got bill gross over there pepco mark sobber a famously also joining this chorus of those who are selling u.s. government treasury bonds and even shorting u.s. government treasury bonds you have also pointed to this trade as a something to look at what about that idea because not only is it about let's say positioning a portfolio to avoid the risk of owning this u.s. government bond but these folks and possibly yourself becoming
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a lot more aggressive because when you're sorting those bonds or take. quite an action that as we know with the money flows around the world could actually help precipitate the outcome if you know what i mean what were your thoughts there oh you know the only problem with shorting the bonds is that the government can print money and keep buying them and that will ultimately prevent bond prices from falling but if they do that then the dollar collapses and so you're probably better off if you're bearish on treasuries you know you're probably a safer traders just a short dollar because if the fed tries to keep treasuries from falling by buying them it has to do it by printing money and debasing a dollar so probably that dollar short is a safer bet than did a pure treasury short because the fed could intervene for a while and keep treasuries from falling but you know if they do that you know you might want to look at other bonds too because if they're just buying treasuries and they keep printing money that's going to hurt corporate bonds yes get hurt i mean
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this will bonds all us are going to bonds will start falling in price unless the fed buys those too but then if a tries to buy other bond stick to keep you all all rates low then it has a pretty even more money which is even more negative for the dollar so you know shorting a dollar or buying silver buying gold or buying commodities might be a more effective way of shorting bonds ok now let's change gears here for a second and talk about oil and if this thing barack obama has come out and said recently that he's instructed the justice department to look and super oil market manipulation in response to the reason price spike and oil now given what we've been talking about massive money printing talk a little bit about this please pay shift though i mean the whole thing is a farce i to ignore the real cause and that is a federal reserve rock obama should be said he does have better gators over there and in fact barack obama is a eighty eight you know is
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a coconspirator. because. the reason that the federal reserve is praise so much money because prague obama and congress are spending so much money they're not collecting enough in taxes and so ben bernanke is printing up the difference and the result is rising prices so you know you can think of higher gas prices as simply a tax because the government didn't raise taxes it raise income taxes or strayer all taxes they decided to run a deficit and have the fed monetize it the way we pay for it is higher prices because they're stead of taking our money big government is taking our purchasing power and the result is that gas prices go up food prices go up so all these prices are rising because prague obama is spending so much money and running his huge deficit so rather than i you know commissioning a study he just look in the mirror and find the cause and if he really feels the pain of the average american as he pretends he does because of the pump he cut
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government spending he shut off the spigot right now but this is how we're paying for government we're paying for it i would four dollars gasoline so presumably five dollars six dollars ten dollars there is no end in sight as long as a government keeps spending in a fake keeps printing i have to finance it prices for everything are going is going to go up all right let's talk about china for a second because the r. and b. you're predicting that predicted that they would raise about the r. and b. the something that the u.s. has been encouraging but actually it's not good because this shift purchasing power to china and actually the negative for the dollar they thought a little bit about that yeah you know the chinese have undervalued their currency for years and we constantly accuse china that somehow doing that benefits china at our expense when it's actually the reverse because what happens is the chinese undermine their own personal power so their own citizens see the value of their
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savings and devalue their wages diminish and so they can afford to buy a lot of things that add. that intervention they would be able to afford and the flipside of that is americans are able to buy things that absent that intervention we couldn't afford and so our shelves are full of products i'm made in china yet the chinese shelves don't have those products or they have them they're too expensive for many chinese to buy but if the chinese government were simply to remove those who pediment and allow the rb to rise then everything would go on sale for the chinese everything would get cheaper and everything would get more expensive for americans and not only would prices rise but interest rates would rise because in order to suppress the value of the r. and b. they buy a lot of dollars and they use those dollars to buy you a stranger east and that creates more demand for treasuries and that helps keep the rates down and it's not just china it's with china by keeping its currency down you have all these other countries in southeast asia that are trying to remain competitive i would china and so they're buying dollars and that's why you see all
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these softer wealth funds all around the world better loaded up with dollars because all these countries are trying to keep their currency low but we wait they lose and when they realize that this is not in their interest they will stop doing it because these are political decisions to buy dollars to suppress their currencies and when they start to believe that these decisions are wrong and they start to see the consequences the consequence right now is inflation all these countries that are suppressing their currency have to print a lot of my to do it and that's inflation and prices are rising and people are a lot of these countries are hurt harder by higher food and energy prices because that represents a bigger chunk of their expenditures and so it has countries like china start to appreciate how big the cost is propping up the dollar and they'll realize that letting the dollar collapse is a much better way to go even if it does result in some losses in their you know
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foreign reserves and it does result. fewer say almost to america net net it's a big gain for china and the chinese people and all the other countries that allow their currencies to rocks right so this is the vaunted symbiotic relationship between us and china it is one that china is willing to break because they end up well yeah it's not a symbiotic you just sense that slavery was symbiotic if you think that a slave of the master are symbiotic because it just slave gets to work and the master gets to enjoy the fruits of his labor you know i doesn't seem to sue myrick that seems parasitic to me and i think that's what's been going on with china you know they work really hard and they don't have anything to show for it we have to consume what they produce and you know if they're just working to have to do a proper our economy up to provide us with goods that we can afford i that is not a good deal for the chinese i last question. but
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a big supporter of ron paul of course you represent connecticut during the last election cycle ron paul is i believe he's announced he's going to run for points wahls he's got a lot of support is growing support if he makes it to the white house would there be a role in his administration for peter said well i guess it's a bit presumptuous and i say i was i was with ron paul last night we spoke at an event in new york city it was very well attended a lot of young people were there. yeah i mean first let's see a crime to get elected i certainly will do everything i can to help him in that effort and you know if he if he were to get elected if he were to invite me to washington to do it i'd probably i probably call him but you know there's a lot of ifs and there are so first let's see it if you can get the republican nomination which is no small task well peter said that's all the time for we have this week but thanks so much again for being on the kaiser report sure max all right not going to do it for this edition of the kaiser report with me max kaiser and stacy herbert howard thank my guests peter schiff president of euro pacific
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capital if you want to send me an e-mail please do so it has a reported r t t v dot are you telling us max has a saying.
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