British citizens live in the country those are the headlines well be back with another round up next hour and stay with us for a boom bust next here on our international. Max kaiser this is the kaiser report you know one of the same to talk about on the show if you read the Financial Press about the latest scandal its just a new name for a recurring scale like theres only 3 or 4 ways you could rip people off though as it changes is the name that you call to rip people off more on this now with stacy well were going to talk about the for ever war as we have the forever war that is the global war on terror and the extreme cost from that and we have the forever war against the black hole of debt that is consuming the Global Economy and its been consuming the Global Economy essentially since 2000 but especially 20082009 were throwing more and more and more and more of our wealth in our assets in our future into this hole and its costing us forever more but 1st were going to start with the context the an allergy to provide us with an understanding of this financial work because the finance stuff is harder most people think to understand but they they understand good Old Fashioned war you know you invade a country shoot them and you kill the people and you won and you take their resources and you want well forever war in the last 20 years cost 6. 00 trillion dollars since 911. 00 the cost of forever war total 6. 00 trillion and 801000 killed including 335000 dead billions for what asked miss shedd luck so hes looking at that brown and Boston University joint study from 2 professors at those locations who are looking at the actual costs of war and you know its always been put between somewhere between 2 and 6 trillion and here these 2 professors they really dug down into some of the data and they said why people were confused about what the cost was was that 1. 00 potential barrier for civilians to understanding the total scale and cost of the post 911 wars is the changes in the naming of the war is the u. S. Military. Doesnt gates mean war zones in afghanistan pakistan iraq and syria as named operations the longest war so far in afghanistan and pakistan has had 2 names Operation Enduring freedom designated the 1st phase of war in afghanistan from october 2001 it was designated operation freedoms sentinel on the 1st of january 2015 the war in iraq was designated Operation Iraqi freedom from march 2003 to 31st of august 2010 when it became operation new dawn when the u. S. Began to fight in syria and iraq the war was designated Operation Inherent resolve for ease of understanding the costs are not labeled here by their designation but by major wars and so they keep on changing the name of the war right well we know from sociologists and consumer scientists and marketeer that the most psychoactive word in the human sub conscious and conscious mind to get them interested in buying something is new. New and improved right those 2 words trigger a response like oh i might buy something if its new so the marketers and the profiteers who run americas defense policy. Embrace this idea and so like instead of saying new coke is Something Different and better than coke right theyre saying operation Desert Freedom scam turning desert to glass it says program you know thats new and improved its then it was the member Stormin Norman you know all the branding so its a branding exercise and 70 percent of the American Economy is consumer so we live by branding exercise and we live by branding so this is the Defense Department in the pentagon embracing the to sell the multitrillion dollar death wave death machine that they love to push into really reprinted its a branding exercise well why did they do that branding exercise max because they need the people on their side and to think that were in a constant change of life were always progress ing right the vietnam war why we had an Antiwar Movement it was because they went on and on and on and people are dying and dying and dying at the from the same exact word vietnam here its like it was shocking our memory invaded iraq was shock and awe then enduring freedom the same thing is like if you keep on telling them were still in iraq were still afghans them still fighting were still dying people are still dying soldiers are still dying innocent civilians are still buying people might rise up and stop it the same with the fight against the black hole of debt consumer economies you know what they keep on doing is changing the name of quantitative easing its operation twist its serve its nerve its now we have not q. E. Q e not q. E. With this repo market intervention im sure im missing a dozen words and then dozen names that theyve called it over. The past 10 years but they keep on changing the name of it for our this is what i was alluding to in my introductory statement is that discounts of the same that the names change and its a branding exercise so theres only one thing the Central Banks can do and its the only policy response a fact since paul volcker left and that is to print more and to take Interest Rates down to 0 and then without batting an eyelash banks in europe decided their Central Banks in europe decided that 0 wasnt even a boundary we can go into the bank if Interest Rates but theyre really trying to rebranding the exact same policy is to encourage the transference of wealth to the ever fewer top plutocrats and to disenfranchise billions of people around the world and to then claim that the uprisings the global insurrection against banker occupation that we see in hong kong that we see all over a lot america Central AmericaAmerica Europe france the indignados as you lay joe sobran vet as being something other than just a response to a plutocratic grab of the globes resources with free money well max used the pull to. Run square that sounds best if we use the full tricks magic tricks right and i think it is the prefer you know verb in that case well how do they get away with this over and over how do they get away with forever wars how do they get away with forever printing and the way to get away with tricks you dont want to inform the population right you dont want an informed group of people in front of you performing that trick in times square because then theyre going to be like i see how you did that trick thats not fun right you need to distract them divert there is call mr x. And mr i use the word common amongst magicians circles ok well that mr action is the constant renaming so you can never stay ahead of it and people are busy people working there their pay all their tack. Theyre paying their obamacare day and they cant they think its a different name in a different war must be a different place but theyre also according to this shifting expenses to exceed the budget so a budget is agreed they say ok we have 50000000000. 00 for this war well what they do is in the fiscal year 21000 the trumpet ministration made the practice of shifting emergency appropriations into the base budget over when it introduced new ways of categorizing the department of defense spending relating to the overseas Contingency Operations this is some of the funding that was previously designated for a specific military operations has now moved into a category called o. C. O. For enduring theater requirements and related missions and another o. C. O. For base requirements so they they shuffle the shells around so you distracted from not only the name but the budget like how much its costing him right so mr action in the age of multitrillion dollar Defense Budgets has a new name its called m s n b c who is the sponsor of m s n b c but the Defense IndustryLockheed Martin boeing have ads on Rachel Maddow show you wonder how do they re brand the same. The same genocide they get Rachel Maddow to yes track to use mr action the disparity how do they get away with it theyve got this talking puppet talking nonsense conspiracy nonsense shes the new alex jones except shes now in the employ of n. B. C. Which by the way is owned by comcast which is involved in some nefarious stuff to distract to the to mr wrecked the audience to get away with rebranding the genocide that america perpetrates shes rebranding the cold war the left used to be against. This sort of hysteria and xenophobia but now therefore its so in a convincing by that that when you have to do by guys like Rachel Maddow does like adam schiff you know well actually i dont as a dog i think glenn beck coopted it on fox and yet a brilliant career and then he moved over to some other network on his own accord because you want to bug you know once you go by guy you can start to go back you can slip down the rabbit hole and go insane Alex Jones Glenn Beck and now Rachel Maddow is rapidly losing all connection to sanity it seems like back from the days of Harry Houdini like it seems like the bug guy thing is like i dont know who gets convinced by that like. See all you see telling that you know the people who works for would be the guy who ran the hell bob comic cult yeah gotta be white as they were in the comet and then they are jim jones from the gay on a massacre those types of serial massacre perpetrators out in the jungles around the wilderness or adam schiff got the bug i think right hes trying to have a Democratic Party commit mass suicide right so hes got the bug hes got the bug i think. It seems to be working because the democrats are going down that rabbit all they wont you know when you have a stick stop digging oh my my theory is that if as soon as you see the bug theyre telling you they dont even believe their stuff theyre pushing out there like most likely theyre knowingly put on a life circle lets go back to that comparison to the financial war because the financial war is an ongoing forever war as well and this is never going to end Interest Rates are always going to keep on going down like Michael Hudson says it could go to negative 25 percent because there is a forever pile of debt the banker is the you know whoever runs the world these top one percent who get to issue all these derivatives thanks to bill clinton introducing the commodity futures modernization act in 2000 they get to print more c im doing the debt the bugeye so you understand that this is true. So oh im sorry that was another crazy ok or of these oh im reading the headline the fed slaps down negative Interest Rates the minutes for the f o m c meeting on october 29th the 30th shed some light on the laundry list of discussions arising out of the feds current review of Monetary Policy strategy where it figures out how to line up the tools to be used during the next crisis and which tools line up so basically again they use the gobbling of the military Industrial Complex systems the finance the monetary Industrial Complex well basically theyre saying play terms is that the negative rates in europe are crazy and insane and were never going to go that far but they are because theyll have to because were in a forever war. They do say that in the next financial crisis theyll basically go to 0 thats essentially what theyre going to theyre going to do but they wont go negative they say they dont want people to rush out of the dollar too fast right day jay powell finds the idea of a negative race you know apparent yes repugnant but hell do it do it cause hes a general right youve got to follow orders this is a big issue right now in the United States who set who if your Commanding Officer tells you to do something to commit suicide with your Monetary Policy youve got to do it and thats what hes going to do that whatever is head of the fed at that point theyre going to do what theyre told to do and their bosses in that case are probably while street banks right j. P. Morgan its Goldman Sachs its whatever banks still exist 0 hedge says in a bizarre admission e. C. V. Warns its policies threaten Financial Stability and could lead to a crash so while the low Interest Rate environment supports the overall con we also know an increase in risk taken which could create Financial Stability challenges said e. C. B. Vice president louis to go in because it came to zombie banks alive ok so we were saying now for at least 6 years and we also have been saying categorically that lowering rates does not fight deflation it causes deflation and now the european Central Banks are finally figuring that out but its too late but this is also theyre admitting that its killing the civilians that theres a lot of Collateral Damage just causing those who arent normally risk takers like the Pension Funds to take on bigger and bigger risk without any sort of reward civilians ive got the solution more formaldehyde all right well were going to take a break and when we come back much more coming your way. Much of the powerful constrained. Then you have to recall and what we have done is to try and identify Something Like that happening in the brain where the exertion of the ripples corresponds to that of your consciousness. This is a story about what happens auster a stray bullet kills a young girl in the streets. What happens to her family and daughters in florida another mother daughter is buried in a cemetery it really messes with your head what happens to the community the public was screaming for a scapegoat the Police Needed a scapegoat so why not choose a 19 year old black kid with a criminal record who better to pin this on than him and what happens in court be. Shot after shot as far as side we feel that we dont know shell just screw up on. The end of this trial unfortunately you too will still not know what childress. Welcome back to the report im ask eyes are time now to return to a cloud of gold money dot com as allas i must inform you that im an investor in the company also welcome back nice to be back max yeah erratic all money dot com that in a post titled 150 years of bank credit expansion is near and right in it you write that iran is slated to be at the business the origin of the boom and bust cycle is found in the bank in bank credit. Lets get into the skin into this house or elaborate at the 1st point i really i think is absolutely it desperately important is to understand that a cycle of business boom and bust is actually not a cycle of business boom and bust it is driven by expansion and then a rocket contraction of bank credit what youre looking at with business is going bust periodic actually is rather like the relationship between spots on your face and measles you know the spots of the disease the disease if you like is fog deeper and it really does come back to the expansion and contraction about credit and in that article in the 1st section i go through the cycle of how the cycle develops from a bank from a banking point of view and you know its a mixture of of the initial expansion creates a feeling of well being an economy and bankers see that and they confuse that with things actually improving and so they expand their Balance Sheets even more and they end up as we all know you know sort of at the sort of stage where we got to in 2007 where everybody has. All the banks have expanded their Balance Sheets and that case even expanded. Off. Shes had it with securitizations and all the rest of it and all you need is just something to happen all the slowdown to an end sub only the banks get frightened because. Fractional reserve banking gives you wonderful profits when things are going up by goodness they really kill you what theyve done so the 1st thing you do as a banker is just run for cover all the banks do it at the same time and thats why we have a banking and systemic crisis want separate i dont know anything between 7 and 12 yes and i think would you another one but its not always been the case because you know going back 40 years or so where you had more the economy was Less Consumer driven and more manufacturing driven the boom and bust cycle was driven by inventory and inventory build up say that the factory would get more efficient in producing a certain widget the supply of widgets would go up and the prices would come down and then thered be a slump and that would be the Business Cycle but its during the deregulation period starting in the eightys we left the manufacturing floor and we enter the era financialization so it is a relatively modern phenomenon because it really because its only been recent that the banks of the product of the of the western economies is credit thats thats the product theyre selling us our loans we dont buy stuff anymore the stuff is worthless for from a business perspective its only the interest attached to the loans that drives the bankers revenue you know their salaries right so its a relatively from recent phenomenon isnt there its not it actually started in the wake of state bank shot at 844. 00 we brits were responsible for it when the bench off the rocks and wrote to you it was it was an act it britain basically was the most powerful nation in the world and sterling backed by gold. It was the most powerful currency and so what we did in banking was effectively the model for everybody else before that 844 charter back charter act it was generally acknowledged that if you took a depositors deposits you know someone cash and stored it if you like it was a custody or faction function and it was not something for the bank to take and then to play with at its own discretion but it went worse than that because the point about the bank charter act is it is a large banks to create money to loan money into existence and it did that basically by. Giving someone a credit if you like on their account and as they draw down on that account and they pay other people that money suddenly materializes in other peoples deposit accounts and so that way they have literally you know if violent a 1000000 pounds i am loaning a 1000000 pounds into existence and that whole thing was legitimized and i think it was 848 when case law found very clearly that bad could do what it damn well wanted with your money and has been doing so ever since what youre referring to about manufacturing and all the rest of it i mean obviously over the decades and indeed the one enough centuries the character of borrowing has changed very radically i mean when we would go back to over and go on a which went bust in 866. And drove bank rate up to 10 percent and remember bank rate was was was in gold at that time. You know that basically was a Discount House which started to do what. Investment banks like j. P. Morgan do today they go and invest in other things which they dont necessarily understand. And in that case it was investing in railways you know a bank which is the leading Discount House never buys anything more than 6 months suddenly is investing in Railway Companies come on it doesnt know what its doing and the result was there was that crisis bearings in 8090 same thing what they did was that they got to the point where they were doing so well the domestic economy they thought well you know lets look at broad so they went and invest its not in argentina argentina went wrong and the problem printing invest abroad is that you dont necessarily have. Legal title you dont have control of collateral and all those sort of very basic things. And at that time brazil was also in a bubble all that collapsed and bearings was just about wiped out in fact they had to be saved by a consortium of london banks and nathan ross child who was of the family at the time said that if that rescued parents the whole london Banking System would have collapsed so theres nothing new in what were seeing in this millennium this is been happening ever since 1844. 00 when this process of loaning money into existence was legitimized under the bank. Ok fair enough i mean thats a great synopsis really have 150 years of banking and to your point your time the boom and bust cycle to to bank credit cycle say and youre suggesting that the banks that they make credit easy at very inappropriate times entered extends bubbles and they pull back at the worst possible time and they make contractions worse right so were relying on bankers too much and we are removing actually the forces of the free market which would be much more efficient in rectifying some of these excesses in the marketplace by giving that. To a few bankers and theyve done a terrible job at it for you know hundreds of years i guess you could go back to 1694 i think is when the bank of england was chartered so you know that probably kicked off the whole nightmare right there well yeah it was it was a bit different in those days ok ok well well get into that next next time but lets move on so you also write about the resolving creeping communism it seems that historically the sort of thinking emerges after extremes of plutocracy ok so in other words we have established that theres nothing not natural about this boom and bust cycle it comes from an artificial credit cycle that is driven by horribly inefficient and to some might argue a criminally minded bankers and but now the reaction from the populous is moving toward communism thats the go to grab im going to were going to come socialist that seems to be what they think always go for. It was there a direct link and historically is that a repeat is i will we obviously i mean if you have on sound money by that i mean the ability to buy off anyone who says you know i have got a complaint or ive got an interest in it you know i deserve the money i deserve to be paid i deserve this i deserve this out of society. If you have that culture which is essentially a weak money culture then youre going to go in that direction i mean the only way socialism can be. Direct and funded is basically through inflation through monetary inflation because you know the rest of us actually you know who all socialists have to work for a living and we have to look off our fess we have to make sure that we dont. Live beyond me ok let me just for a 2nd how come its so difficult to communicate to folks. That the problem is with these being in these bankers and what they are doing you know we talk about it on this show for years and years but we dont we dont make any headway because the response from the from the folks that are being victimized by bankers is to go socialist they dont want to punish the bankers right i mean during the reign of terror in france they got rid of a lot of bankers quickly you know and that seemed to work for a while walk and theres no muscular response against the plutocracy why is it always well we quit lets become socialist and grow our own vegetables the problem with baucus is their license by government and not only that but they are integral to the financing of Government Debt so then theyre going to knock over bankers i mean theyre there for a purpose we think that theyre to help us you know produce things in industry no theyre not that is a secondary thing that is the excuse but actually the reason that is to enable governments to borrow money to do the things which they could not afford to do if there was no monetary inflation so theyre not going to stop this cycle this cycle is going to have to stop a bit so and i think that is probably about to happen which is why not all school i reckon that after 150 years of this. Fraud it is really a. Monetary fraud i think the whole cycle is likely to end this time and ok job it is that stroke of money if thats the case and we have about a minute left where you see gold in 2020 well its not a question of gold its what happens to paper money paper money is going down backs and so thats reflected in the high price for gold its the same with that court if you like that would do almost exactly the same thing as far as i can see im not sure how to take that sanity make us but alan and i dont its not the audience figured that out because i dont know that we have a. Its left what about the settlements layer we talked about this a bit in the last episode does the u. S. China u. S. Trade war hasten the arrival of the alternative to the dollar and will this be revealed in 2020 weve got 10 seconds. That polling best maxed out its going to get worse i have no faith in either party coming to some sort of agreement. Quite simply a financial wall generating into something worse well rounded time thank you so much Alison Mclean for being on the kaiser report my pleasure already thats going to do it for this episode of the kaiser report with me max kaiser and stacey i would like to thank our guest also michael out of gold money dot com if youd like to get in touch twitter surprised by oh. Its an understatement to say america is a very divided country many have even spoken openly about the possibility of civil war what is scaring the country apart what is keeping it together it cannot only be about donald trump what will it take to start a sustained social and political dialogue before its to. The u. S. House of representatives has wrapped up its 1st round of impeachment hearings against President Trump but its not done with trying to oust him with new impeachment proceedings ahead is impeachment of viable strategy against the president. Q q q a. Q. Q q q. Q q q. Feel. Lashley laugh