u.s. imposes tough economic sanctions meanwhile the president received strong backing from the venezuelan leader hugo chavez as he tours south america to shore up support from close allies. and saving the euro the leaders of france and germany pledged to boost growth and give more power to brussels to stem the debt crisis with tough new fiscal rules but critics say when it comes to watching the pennies the e.u. itself so about example. my colleague bill daughter is here in half an hour's time about for now next on the kaiser report max and stacy taking a swing at hollywood and its inability to recognize a good thing when it sees it to stay with our team. max kaiser this is there is a report today we're going to be talking all about copyright. sounds exciting max

first headline why the movie industry can't innovate and the result is so so but is the stop online piracy act but the article mentions that the total two thousand and eleven movie industry revenue was eighty seven billion dollars. thirty billion of that was from box office and only a third from the us the other fifty seven billion came from sources that the studios at one time claimed would put them out of business pay per view t.v. cable and satellite channels video rentals d.v.d. sales online subscriptions and digital downloads well hollywood is run by horrible business people there are two industries in america that attract the worst management talent in america one is the banking industry as we see the incredible collapse of that industry due to peabrain overrated managerial nincompoops the same thing in hollywood as a matter of hollywood is not even

a business it's just a way for rich guys to get dates and they don't mind if they lose incredible amounts of money in this run principly by corrupt bankers but they can't innovate they're not there to innovate them and so they're against something like so called piracy even though everything that they've been against for the last twenty years has turned out to be the huge money winners for that industry in fact eclipsing everything that they do that they think they do in terms of making a movie so this is again a situation where another gift horse is right there staring them in the face so called piracy is a huge revenue booster potentially if it's handled by innovators and entrepreneurs not banking hedge fund rejects well i think it's more than banking i think it's an oligarchic monopolistic neo feudal mindset which you see because bankers have their

own oligarchies their own domain which they control and that is they the bankers are the intermediary between you and the federal reserve here in hollywood you have the same sort of neo feudal system of many tollbooths that you have to pass through to get access to making a film essentially. well it's a monopoly the centers around a lot of people there's a distribution distribution monopoly but i would posit that it's really around the agencies the talent agencies like and the william morris which changed its name to some other agency name now endeavor or something like this because this is why they drive the price of talent to these multi tens of millions of dollars per film because in hollywood the fees are based on size of budget this is again the connection with wall street wall street gets paid on the size of the debts that they create and hollywood gets paid on the size of the budgets for the films that they create so they they both are in the business of creating bloated risk filled

entities that they start off the fees from the top and then let the effects of this bloated debt balmer hollywood copyright cartel which is an effect of collective labatt of me when they allow for copyright to be extended every twenty years as with the case of disney exit or so let's go back over these numbers here let's talk about the economy of hollywood here they're saying that the total revenue was eighty seven billion dollars let's first put that into context in on wall street total review was one hundred fifty six billion dollars so it's half the size of just the income of wall street bankers that's how tiny it is and yet do wall street bankers have immigration and customs enforcement knocking on people's doors taking their property and locking it away for years on end with no recourse are you talking about the m.p.a. are i.a.o.

all these guys they have access the ice immigration and customs enforcement we're going to go over some of the stories but this new sopa law also would put away somebody for five years in federal prison if they stream a film that is illegal to stream online so when wall street read the. they're not actually knocking on people's doors and putting them away for five years if you walk away from your mortgage right you can walk away from your mortgage exactly old jingle mail yes but in the u.s. if you download a film even though it's constitutionally protected under your fair use rights of constitution not that that matters in america anymore but you would get attacked legally and subject to a felony that's correct five years in prison so let's look at how this happens in industry that is a fraction of the size of wall street how they get this power how copyright industries come on congress so we all know about hollywood accounting ok this is where no hollywood in film in history perhaps actually three or four have ever ever

made profit so they never have to pay taxes and they never have to share with the hollywood talent the any income a profit they make well it turns out hollywood is now actually adopting when it's convenient for them wall street accounting industry lobbyist say that piracy cost the u.s. economy fifty eight billion dollars and nineteen million american jobs these are the numbers they're using when they're passing so well cato looked at the numbers and they found that they're applying this wall street accounting so they take for example you know here i have this ten dollar d.v.d. i've sold it now the hollywood studio pay seven dollars to the manufacturer two dollars to the shipper as an example but they're counting that as one thousand dollars of revenue and when you strip away all of the multiplier effect they put on to their income especially six point one billion of which only four hundred forty

six million is in america their actual damages are nonexistent they don't have any damages when you do the actual accounting but yet they are willing to. violate the constitution they're willing to create new laws that are threatening the whole integrity of the internet the whole peer to peer network effect of the internet they have joe lieberman of connecticut want to create an internet kill switch which would have by the way kill google kill facebook kill twitter big to protect a few guys in hollywood who couldn't get laid in new york so he moved to l.a. . ok first a little bit of the stuff that's all they're interested in they like the blonde surfer babes so they're willing to throw america under the bus it's unconscionable so now kato then looks at some information from the general accounting office that actually g.a.o. has looked at the figures from the hollywood industry and what their allegations are about how much wealth they bring to the u.s.

economy and what they found is that actually so they say for him to forty six million is lost in revenue in income in the us from illegal downloading but what they found is that actually eighty percent of illegal downloads wouldn't have paid for it so that's not lost income because they wouldn't have bought it anyway so they happened to just listen to it for free but it didn't cost there was no cost taken from the economy in fact it's marketing expense that they don't have to pay for example instead of paying for marketing instead of spending like tom cruise two hundred million dollars mission impossible for they're going to spend a hundred million dollars on marketing or more than marketing you could not spend any money on marketing and simply to let the network effect of the internet as it is brilliantly shown to be an innovation and business builder for companies like google you can apply that to your own for going to hollywood studio model but you don't because you're at the end of the day in secure about your own sexual prowess

so you end up moving to los angeles during the biggest portal industry in the world and throwing american democracy under the bus let's look at this g.a.o. information they say that because it's disposable income that is being used to purchase a ticket to a movie or purchase a download of a song that the effects of piracy within the united states are mainly redistributions within the economy for other purposes and that they should not be considered as a loss to the overall economy but it's like the internet brings standardization to internet content distribution which would benefit the studios if they had a. brain in their head but instead they want to go back to a time of artes little workshops where everyone has their own standard for things like screwdrivers and screws and wrenches and pre-industrial revolution and then they want to sell that as something that they need to violate the entire constitution and be protected as a protected industry los angeles is protected by the government there without the

government protecting los angeles in the movie industry they have to compete as legitimate corporations which they're unable to do because their product which is highly derivative another connection to wall street wall street creates derivatives hollywood creates derivatives chipmunk part three mission impossible part four going to put harrison ford in another one of these cold boy whip movies where he goes around chasing people like number seven criminal of the menace three d. partnoy this is derivative because there's no brains in all this sunshine is cooked their brains and they're just walking around hoping to get a part as an extra important film. and now a lot of the support in the us from the population comes from the tea party and people who consider themselves conservatives they're against net neutrality they say because they want the government out of it well in fact protect ip act would cost taxpayers forty seven million dollars private sector much more the justice

department anticipates it would need to hire twenty two special agents and twenty six support staff to execute its new investigative responsibilities under the bill that would be ten million dollars per year just for the government doesn't count the forty four thousand dollars a year on average it costs to lock somebody up in prison but here the conservative population wants an expansion they want more federal agents to be enforcing these laws but a bigger concern is that the private i s p's are also having to enforce this so they don't know however the c b o said that it wouldn't be possible for them to estimate those costs because there is uncertainty about how often and against whom the department of justice or copyright holders would use the authority max how often do you think they'll use that authority one hundred percent of the time because they are able to turn a profit in a business of their of the using the government just strong arm and shake down

people for ill gotten gains now in response we've got google with pedia other another major internet franchises enterprises contemplating coming together cooperating to put to go on strike to shut down all their respective sides simultaneously as a war between the these businesses that are actual innovative and entrepreneurial are going against the hollywood m p a you know cartel ok now quick headline here for a last headline here because i want to show you exactly what would happen in this soap and people are not laws now so this is already have. destructive and violent and aggressive that are i.e. that m.p.a. all these guys are breaking news the feds falsely censor popular blog for over a year deny all due process hide all details so at thanksgiving two thousand and ten the feds ice immigration customs enforcement shut down dozens and dozens of

sites many of them were hip hop sites including jazz one dot com but i shut them down it turns out on the word of a v.p. of anti-piracy legal affairs for the r i am carlos lin ari's the word of him didn't show any evidence they took this guy's site down they claimed because there was a song that's copyrighted on there well the song that was copyrighted the record company sent him the song because the site was so popular with the hip hop community they wanted him to promote it so this type of abuse is going to become commonplace and the people who are fighting against the. better side of the angels of our better nature stacey lambert thanks so much for being on the kaiser report thank you much go i we're going to talk about this some more after the break so stay right there.

you. line. which brightened. from silence to the question. starts on t.v. don't come. i'm max keiser welcome back to the kaiser report time now to go to london and speak with ameritech a bit going consultancy amir welcome back to the kaiser report hey mike all right now amir aside from acting as a bit coin consultant you were a computer programmer

a video game developer and a hacker you recently wrote an article the future cannot exist without the past tell us about how the internet and software started out as an essentially a libertarian free movement and how we got to where we are today ok so you mentioned just now about. the one thing to realize is that a lot of people think because the people break into computers this is a time that's been abused and. incorrectly so hucker is someone who has a love of technology and. a playful curiosity a scientific inquisitiveness about technology so a lot of the technology that we have today the we use in this very fundamental to our life was made by hackers was made by individuals on the internet ok so the term hacker then is and accurately of i mean you could call thomas edison and albert einstein or in their own way hackers so you know anyone who has got

a curiosity or an entrepreneurial bent is essentially a hacker now you were right i mean that all data should be free. why because there's been there's been a movement on the internet the her commitment and it has a very deep rich history and cultural background and even has its own set of ethics so like first of all that all individuals should be allowed access to individual personal privacy secondly the all or fora t. is not to be trusted and decentralization is to be promoted and thirdly that all information should be free so it proof is the ultimate master in charge proof holds its own power or because of its potential to transform and shape our world if we live in a democracy where we vote for candidates then there's no way that you can do you

can make adequate political decisions without having the information that ironically think that all of the political ideologies today are bankrupt because all of this information. tells us how governments function is hidden we can take this ideal of this landscape of information. and look at this landscape and you can see the there is tiny pieces of information are glowing and there's economic work that's being put into hiding those information and you have to think why are all those institutions hiding that information well it's probably because if that information is made public then it would be it would somehow damage their power and so if we want to think how can we make things more just. it's by putting the information out there so the you know consumers or people in a free market can make decisions you don't live in a free market unless you have the information you know to make good decisions so

that's why information is very important think ok so let's talk about sopa and pipa right now these are two pieces of legislation making their way around washington so being stop online piracy now as you are spelling out here the situation is that the very small copyright cartel industry the hollywood industry the recording industry would like to impose their draco nian laws reference saying information and access information across the vast spectrum of the economy even though it's going to destroy huge swathes of the economy and undermine the constitution and so i would i would assume that you would be in the camp that considers these pieces of legislation destructive and going against the idea that information should be freely available correct. so this is think the governments want to destroy the fundamental structure of the internet just so people will maybe

buy a few hollywood movies but hollywood movies don't get grassroot kind of selective hollywood movies don't over for a totalitarian regimes on hollywood movies don't even contribute that much to the economy if something really outrageous when you know vince off the architect of t.c.p. ip the fundamental protocol behind the internet when tim berners lee went google facebook twitter all of these or everybody on the internet is saying that this is going to destroy the internet and yet they still push ahead with this legislation it's really disgraceful that here in the u.k. version last year right before the elections christmas they pushed through the just digital economy acts. without any public debate at all and only yesterday now we see. the u.s. the wiki leaks repeat released a report which was saying that the u.s.

was friending spain with a trade embargo unless they brought in their own sort of puzzles the i want let me touch on that it's pretty clear that the u.s. will be again shutting down web sites around the world so tell us about as you just pointed out a situation where the u.s. is trying to strong arm another country's brain to shut down their electoral property service hollywood industry so tell us about dot bit name calling and other dark man technologies that are emerging in anticipation and this increased digital war ok so. there are number of technologies on the internet which you know. all anti censorship tools and a lot of this legislation is very shortsighted is like ok you know there are there are some people who say there are bad things on the internet and we should block them. the thing is they don't realize the mao if you stop blocking things on the

instant you're creating two classes of people those who are allowed to see what actually happens hell things actually are and those who are only allowed to see a constructed version of reality so i go back to something like china in china what we have is a situation where you know if you do something then your lots of the internet for sun amount of time let's say a day and what people start doing is instead of instead of like. speaking out against a government where they start to say is. all i'm going to make this post on the internet because i will lose my internet access for a day and so what happens is they start self censoring themselves and most are not people in the society are self censoring themselves. you start to assimilate our point of view if you imagine the of the people are talking among each other and you start your own every day listening to other people's points of view and taking them

on well it's all peoples points of view are moderated well then that started change how you think through and that is basically just a form of large scale social engineering. i really can't understand like you know it's like people are almost scared to be off out on the fringe nowadays but it's good to be out there from the fringe because that's where good ideas come from it's like people almost begging the corporations and governments to come and take over their life. ok let's let's talk about twenty twelve because clearly the forces of those who support size and. other initiatives like the dark bit name calling really the next generation after way kapadia people think that we could p.t.o.'s the end of the war between the information copyright cartel and the people they're going to be severely shocked when they see things coming in two thousand and twelve so tell us a little bit about bitcoin your bitcoin consultant because back on the map in

a big way tell us about your where you see for a bit coin in two thousand and twelve. the industrial age took two hundred years and we've only been two or three decades into this technology. we're in an information age and it's only been three or three decades we are really just at the beginning of the amount of things we can see we can already see that you know there's be like we can leaks which has been opening governments we can see we could pedia our which is giving everyone in their back pocket access to the world's information we can see limericks which is given by people the politics on their own devices you know we can see bits torn which. made copyright. you know you can see what e-mail did connecting everybody around the world the web but these are very basic technologies. really if we seen how disruptive these very

basic technologies have been things like bits aren't we really just at the beginning of like how much destructiveness we're going to see because a lot of the things that are possible just haven't been foretold. like one of the things yes is big point which is you know it is the first time the we have a digital money there are things like pay power you know. there was flus in the eighty's but these aren't really digital money they all the current monetary system with some layer in digital they i'm actually talking about digital money and all of the things that come with having something be digital come with big court and there are things like the rap rap rap rap is a machine that anybody can build in a house very cheaply and they have to manufacture items so you see all these plastic items like a color or you know these grinders and they cost like fifteen twenty pounds the whole idea is that you could build this freely printer and anybody in the house can

manufacture a wide range of items. it's what it is all of these technologies are cutting out middlemen from the industry and i really am waiting to see what happens once you know things like big coin the middle of the finance industry or things like the rap property be cutting middlemen out of the manufacturing industry or and he also says even open source a quality ok i mean we've only got about thirty seconds i just want to cover the basic selling points if you will on bitcoin. basically so people understand why this is important number one it's completely anonymous which is important because as we move from a cash society to a cashless society dominated by credit card companies transactions are completely recorded by the copyright cartel the pentagon so it's anonymous which is good number two it's completely decentralized unlike the federal reserve system which is a single point of failure and run by a polar bureau number three it's extremely portable so you could have

a thumb drive with unlimited amount of money on that thumb drive drive a hundred thousand a million dollars ten million dollars which is very handy in this day and age what are the a couple of the other selling points before we wrap it up. because in these democratic money that's the most important point it's incorruptible because it's decentralized nobody owns the infrastructure for the network and you can have something outrageous like i stormed the show last month you said to another bailout for ten billion pounds has been given to the banks you know how much it costs not so the not budget for masters per year ten billion pounds and they take us to the moon they put people they put in people malls and we just piss away the money to buy and just give the money to the banks you know a mission to put people almost cost one hundred billion pound that's how much we get into the bank that's that's totally corrupt so absolutely absolutely the the entire digital infrastructure or at goal google microsoft apple would not have

existed had there not been john kennedy's imperative statement let's go to the moon all right so right a time of your techie thanks so much for being on the kaiser report thank you. that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert and was i guess ameritech day you can send me an e-mail at kaiser report at r t t v dot ru until next time x. guys are saying viral.

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