by downgrading american debt first and the benefit of this but for some reason george happened financially illiterate and has no idea how to fight a financial war let's move back to the economic war theater and ron paul speaking of political theater this is a video and it's ron paul asking ben bernanke in congress interrogating him very quickly if you could answer another question because i'm curious about this you know the price of gold today is fifteen hundred eighty dollars the dollar during these last three years was devalued almost fifty percent when you wake up in the morning do you care about the price of gold but i pay attention to the price of gold but i think it reflects a lot of things it reflects global uncertainty east i think people are the reason people hold gold is a protection against what we call tail risk really really bad outcomes and to the extent that the last few years have made people more worried about potential of a major crisis then they have gold as a protection do you think gold is money. no well this is

a fantastic video clip because it shows is really now forty years after the closure of the gold window it took forty years for wonks and policymakers and fed chairman to completely this is associate money from gold in their minds and this is the root of the global problem is that they think that their academic theories can solve problems of the global economy and we heard this from christie look lugard recently her response to the european crisis is to simply create more debt this is a typical response of a bernanke you're an academic who their job is to come up with formulas how to increase the debt load and they have lost touch with the reality of gold and what's going to happen is that the market itself will impose the reality by crashing the fee at currencies more than they've already been crashed this is

why we've got our price target of gold now set to ten thousand dollars well the other thing is that. there are many reasons why people and investors and nations around the world have been buying gold and it will tail risk as bernanke is one of the many reasons he is the primary reason i would say people are buying gold but he's distracting you with this one element of tail risk and i want to move on to the next to show you the political theater and how it works with the propaganda that we see going on in this financial war talks inflation change could cut social security you know obama and the republican party are hashing it out you know they've been hashing out how to fight this deficit one of the options includes a new inflation measure for social security that could produce savings close to two hundred billion dollars through a combination of reduced benefits and higher taxes the proposal would mean adopting

a new inflation measure which would allow policymakers to gradually cut benefits increase taxes in a way that might not be readily apparent to most americans it's called the chained consumer price index well this is exactly what i'm talking about another words when the formula doesn't support their misconception about why the economy is failing they change the formula instead of simply looking at the evidence staring them straight in the face not by adjusting the c.p.i. again and they do this every few years bernanke you will look at the revised c.p.i. and say well there's no inflation and so he'll keep interest rates near zero which of course means the speculators can borrow at rates near zero and the thing that they buy with the money that they're borrowing at near zero thanks to bernanke is food and energy the people on the street are seeing their food and energy prices skyrocket and they complain to government that we can't eat anymore and the

government says well we don't include food and energy in our analysis of price consumer prices we took that out. the consumer price index we only look at this new version of the c.p.i. you must be wrong the fact that you're starving and can't afford gas is incorrect because our our revised c.p.i. model tells us that interest rates need to be near zero as a favor to the speculators and it goes on and on and on but this goes back to the importance of why gold and silver are skyrocketing we've had many trolls many trolls out there saying that don't buy gold and silver those are those are in a bubble those are crazy when the crazy guy is this guy ben bernanke and obama and all of the politicians that america is part of the political theater they pretend there's a red team and a blue team they talk about cutting your taxes while at the same time they're noting here that lower middle income families will be hit the worst and why they're hitting you is because they said that it will not be readily apparent to most americans as long as there are guys cutting taxes they think they're not being taxed this well they are aware of the fact that they're becoming bankrupt but they

have no voice they have no vote because only the plutocracy one dollar one vote operates in united states anymore and the plutocracy which is tied into the speculative class they want interest rates to be near zero and ben bernanke is in their pocket he works for them he keeps interest rates near zero saying there's no inflation even though it's greg it's biting him in the face obviously there is inflation but he is a robot programmed to misinterpret the data well let's move on here max shoplifting is it good for the economy this fits in with the whole propaganda this is from c n b c and they're looking at the latest report from the national retail federation that showed that inventory loss due to shoplifting increased by three point six billion dollars nearly eleven percent last year c m b c says some a commie watchers say that that's actually a good sign for the economy that there's an increase in shoplifting because it

shows that people are willing to take a risk that they might be locked up the chosen initiative. but also because again the majority the growth comes from the banking sector and the banking sector is deregulated and they are engaged in wholesale thieving and larceny so if somebody goes into a seven eleven store and steals they say that fat guy can work for j.p. morgan that guy could work for goldman sachs he knows how to steal money he could be useful to us someday but this is how they just reclassify and decide that's not what you think it is your eyes are lying to you so ben bernanke you can say oh all those people buying gold that's just they're free to tail risk stealing also puts more people in prison and there's a huge prison industrial complex and private prison business so that's good for the economy too yes and remember george bush tried to re classify as manufacturing all the hamburger flippers in america so they try to paint their economy as looking

like the biggest economy in the world and it's becoming more and more obvious that that's a big fraud and all it all comes back to you know you can make the comparison to roman coin clipping where they clip the coins which created this massive inflation of the collapse of the roman empire in america the coin clipping comes in these new ways they statistically recalculate the statistics to make it look like there is no inflation or they they reclassify hamburger flippers from a service job to a manufacturing job to make a look like there's growth where there is no growth and just like the roman empire that was over expanded too many military occupations there will collapse of the same reason this is not new it happens throughout history so let's look at how the top trickles down to the bottom here and how great the economy in america is obviously doing as copper soars thieves extract a price when thieves ransacked eight air conditioners in an apartment complex in

the city of mobile alabama the culprits made off with eight hundred dollars worth of scrap metal and left residents with a thirty eight thousand dollars worth. damages so that's exactly how ben bernanke operates and so he bails out the bankers for say they've stolen eight hundred billion or eighty trillion and it cost the economy many times that to replace and repair the damage right and that way justifies it is he goes in for a congress and he sees i don't see inflation so i keep interest rates cheap which makes commodity prices skyrocket and congress will say well we see skyrocketing commodity prices we think we see inflation but because he uses the revised c.p.i. number which excludes food and energy he doesn't see inflation so that therefore that it's just perpetuates itself he is he is blind he's inflation blind on purpose because it helps the speculators there are new laws being introduced all over america because of the rash of thefts so in for example they mentioned south carolina which has

a new law prohibiting recyclers from paying cash for copper so the sheriff said there we wanted to take the incentive to steal out of the equation which could be a great example for the american population at large to close the fed window to enable these banking banks serves these crime lords from swapping their toxic assets for you know treasury paper right but they point to the hedge fund managers of the money managers in the banks are sort of stolen all the money as being their heroes as being the heroic superman of the of the economy based on their super larceny so there's no there's no cultural shift away from praising the crooks on wall street there's no heroes in american society they only praise the crook and so these crime lords look around them and they see the disaster in front of them and then they rename everything to make it look good and this is my final headline here max u.k. needs rich to get richer o.b. are fines o.b.

are is the office for budget responsibility and they say that although growing levels of. income inequality have been identified by economists as one of the causes of the recent crisis their analysis shows that government is more dependent than ever for the rich for tax revenues so therefore they should encourage the rich to get richer at the expense of the poor and the middle class well again statistically they're using numbers to legitimize an argument that promotes serfdom and neo feudalism obviously they're going to be paying more in taxes as a percentage as more of the bottom ninety percent end up in prison. clearly if you have a serf population then the taxes being paid will be concentrated in those people who are operating the prisons so how this headline appeared four hundred years ago in the neo in the feudalism is that of europe somewhere it would make more sense

for to see it here and there twenty eleven seems completely out of place but it also goes very well with what bernanke he is saying about inflation and that there is no inflation is in fact if this will result the rich will get richer the rich do get richer with inflation because they hold all the assets and they're protected whereas the poor working for pennies on the dollar you see across the world they always end up decimated it while the joke's on the rich however because all their wealth is tied into paper currencies in the us dollar less than one percent of all the invested assets in the world are held in precious metals and the joke is on them because those precious metals continue to skyrocket they're the ones wearing the barrels living in the poor houses while we lord over them so they say never thanks so much bring on the kaiser report thank you right there right there don't go away much more coming your way.

from the. video on demand. an omission street with the palm of your. comb. while go back to the kaiser report so i'm now the go to london and speak with a mirror talkie co-founder of bit coin consultancy dot com here welcome to the kaiser report very good to be on the show mike's and i must say that you'll show it

was when the fuss to start reporting on big coins. very very informative. compared to the sensationalist news well oh that's what we're trying to do here is to look at this issue because it is a very interesting issue a year a consultant a bitcoin consultant and as you point out there's been some. quite a spread and now this story is being reported and it invites quite a passionate response people either love it or hate it the idea of bitcoin so walk us through it what is bitcoin why does it ignite such passion big. decentralized currency and that is. the thing is because nobody owns the network there is no concept of control nobody can tell people how big is used and so. there are people that use big coins.

for services which. are legal that seems to generate passion response from people who use it who just look at big point a fuss colognes on automatically assume that because some people are using it for bad things therefore the conses only used totally for bad things let me cut in there first i'm eric and give some background little bit background so another words let's start from the beginning in terms of bitcoin it's a good little car to say it's a decentralized currency in that there is no central authority like a central bank and it's also an encrypted currency which gives a remarkable benefits the ones that you'd expect and want from a currency if you're looking to conduct business outside of the surveillance of let's say corrupt federal employees or governments but on the same token obviously just like cash it can be used for nefarious and as well but let me talk about a word that is used. two words actually one is called disruptive and another d word

this intermediation so in terms of disruptive distance or mediation we've seen p.d.p. software development in the projects like apache software that now runs the bulk of all the major internet applications we've seen p.t.p. music file swapping which is totally transformed the music industry and gave birth to a new a whole new generation of music and technology some argue there's pros and cons there but this is the applied the p.t.p. idea applied to money applied to currency and so this is what's difficult because we just heard ben bernanke being asked by paul ron paul if gold was money. no but he believes in figure out money which many argue is not money so we're big currency fall into that spread is it more like gold or is it more like a dollar a fear of currency if you look around you says a lot of people actually saying

a lot of things about what big coin is a big point is i'm basically she's very she spoke on you know the big consultancy the various lawyers and they she say the they don't know what it's going to be classified us and that's intelligence on some to give it it's kind of looking now that it might be classed as a commodity kind of like what's happening with gold in a gold is that actually we have all the gold businesses in the u.k. they are actually regulated now and then we go back to what you saying before about the pits appear aspects. this is like part of a larger movement has been going on for many years if you look at the software industry they came out with proprietary software which is treating software as a products there's been a movement of people on the internet shall we say building their own economy their own structures in ways of governing and it's one of these products was lynn. which

as far as i'm concerned is a rock star in the computing world you can find it on mobile phones. embedded devices it's everywhere. and ever since then there's been continually more and more things coming out of this movement so for instance wiki leaks is one one thing. as you were saying is a novel. and basically these are very subversive technologies which is taking the power structures and dispersing them or among people in other words you use the word some verse but in a good way i would say in the same way that democracy is subversive in that it distributes power to a maximum number of people in society and let me ask you this about another social networking what they call social networking phenomenon we look at facebook facebook of course is a place that that leverage is on this p.d.p. aspect of the world and yet almost ninety nine point nine percent of all the

profits are going to or all the profits are going to end up in the pockets of a few bankers and the executives at facebook there is no real distribution of that but on and on of social networking to the people who actually built the value or is bitcoin it's the opposite is that the people who build the value actually get to keep the value would you agree with the finger if facebook is is it's not really any kind of you know pairing technology when you go on facebook you know trusting facebook you put your data into facebook which they don't necessarily use you know in a totally good fashion big coin if you think about it is actually you are a willing participant in this network with the current financial system if i don't want to use the banks or i don't want to use for my money into fee up money i have no choice if if i want to do business in the world but something like

a big coin the whole concept is is that now i have my money on my computer and i can choose who i want to trust. that's a really powerful thing and you mentioned facebook wall facebook is a private company big coin is not owned by anybody the infrastructure is owned by the participants in the entire network right ok and they were the actual workings of big cawing there's for those who are not familiar there's two sides to it they're the people who are purchasing the coins to be used in this economy and then there are the people who actually create the coins and the people who purchase the coins they essentially it's like any other currency transaction they put in their currency and they get bitcoins which they can then use for transactions on the creation side of the coin however this is something that is beyond the scope of this program to explain what the point is and many argue that it is purely digital and it could disappear in our beat and we had

a crash recently and one of the exchanges of bitcoin not had nothing to do with bitcoin itself but on one of the recent exchanges how robust is bitcoin this exchange was one private exchange could and to go you have the money which is big coin which is separate from the exchanges so what happened is one exchange is very negligible and they go out. and someone stole a lot of big coins and suddenly flooded the market with them driving the price on that's exchange down to zero or now all group runs the u.k. exchange which is bric coin and during that crash we saw relatively very did some change in the price of big cling to pay the feeling about the exchanges is anybody can stop an exchange you need to open exchange is a bank account you know that's when the really cool advantages of big point is it's

truly international there is no concept of borders in this current see jukes of nature of it being completely disarmed. there's a lot of competition in this network and this competition i she drives the overhead of the carnitine right down to what it is that's a hotshoe powered network of rice is the overhead drops due to the competition from the people so one of the things that we've seen is that this company this power of the network has been exponentially rising it's more powerful than any super super computer in the wild right now so finally we've got about a minute left i just want to return to something you said earlier which i think is very important when i asked you to compare it is a closer to a figure out dollar or gold an era saying that well you know we're swinging toward this idea that it's more like gold and this i think is consumption because it's truly a very difficult for people to wrap their minds around because it sounds like the antithesis of gold however it is like gold in that it's anonymous it's

a limited supply it's highly valued and verses and it's decentralized and it has really gold like properties which can you expand on that just a little bit more before we have to go big coins is basically the analogy is like digital cash once you spend them the transaction is irreversible so yet another argument. why not to use pay pal is the there's a classic scam way you send those and then you're a few the payment off you send it and i scooted charge back and that makes it very expensive for vendors on the internet to use pay pal with big coins there is no concept of charge backs and that's another reason why you don't have to put your prices high oil to cover this face like one of the things is using big coins or means and that is a micro transaction system and it's not practical to use pay pal if you have to charge. slightly higher on your goods to cover these payments if you're selling

goods very little especially like online comes and. which to date everybody can make an actual price of is very large right then this is why digital content producers on the web obviously as we go toward micro payments are looking at bitcoin and this is to further distance the mediation away from the entrenched content providers who are also wed to the outdated copy right model so this is really a two fisted punch in the face to the entrenched old gaap only in the finance and content creation industry i take it then also if you compared to what's or facebook credits the comparison would be that on facebook the number of credits dollars that can be created is infinite whereas on a big point it's finite. so to destroy copyright you know see people on the internet sharing creative woks remakes and moves what creates a new stuff it's

a generator of coach and in that same way they claim. the full tilt as a way that it could be used. as a bottom against the who tend are i well that's all the time for we have we're going to check back with you that's ok a few months time to see how this market is expanding its probably the most explosive growing currency market in the world it's a kissing cousin to gold and it's going to dominate this decade in terms of news stories about currencies and in my opinion a mere talky thanks so much for being on the kaiser report thank you mike all right that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i want to thank my guests a meritocracy if you want i mean email please do so at kaiser reported r t t v dot ru until next time this is nice guys are saying.

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