these are the images. from the streets of kenya that. giant corporations are rooted a. book about this take a look at main headlines the head of the u.n. criticizing the syrian regime for pracon down the opposition despite pledges from damascus to cease retroactivity within days. so declared clearly it is in mali agreed to step down and hand proud to civilians my friends pressure from neighboring countries or in two weeks of military. critics lash out at the u.s. for trying and sentencing you and i don't want to un just around ten thousand

miners are held in the jails and prisons throughout the country. now our financial guru much skies it takes on the latest news from the world of business and his unique style. this is because a report there is a new global currency rising stacy kaiser good coin the city traders and market new toy financial traders have a new toy coin a digital currency variously dismissed as a ponzi scheme or allowed it is the greatest invention since the internet unlike invest money and other digital currencies because it runs through peer to peer network independent of central control it's called max but anti bank system because there are no bailouts of banks around bitcoin and we've been covering brad cohen

for a while it's the latest greatest hope for some type of democratic expression on the internet that was first seen in the one nine hundred ninety s. but quickly got snuffed out by the m.p.a. and we are i say coin is another shot another attempt to bring about the will of the people so this article and warriors points out that there are all these city traders from goldman sachs morgan stanley all the banks in the city of london are you can see from the visits to the actual sites that a lot of these bankers and brokers are on line buying is speculating in big coins but remember there are no bailouts available for there and they talk about bitcoin has become the wild west of finance with the proliferation of websites offering loosely regulated replicas of the services familiar to those in the financial industry perhaps the most notorious is because into a platform offering margin trading short selling and stop orders run by a seventeen year old chinese high school student xu tong users can leverage their

bets up to a ratio of ten to one on bitcoin meaning they can lose more than their initial investment so to be just to be wiped out financially and we're going to turn now to a little new hip song a rap song based on being. well that is quiet and speaking of the ninety's it's really are two big hit on the internet back then called amsterdam. put it you know so this is tong to this whole wild west without regulation meaning that in our western system now the regulators have been hijacked by the j.p. morgans the goldman sachs's of the world so would you rather be wrong or would you rather be jamie diamond or the lloyd blankfein well the this is why it's very

encouraging i think because of the zoo kong essentially has in the palm of his hands an entire exchange and an entire currency that's outside of the current regulatory environment now you match that up against let's say the protesters if i could buy wall street and i would make my bet with those who tong because he is able then to go into the market and create let's say a trading pushback against j.p. morgan j.p. morgan fabricates say they sell into the marketplace counterfeit credit default swaps to manipulate prices this is not well documented well understood life masters engineers or jamie diamond ok is it and then when they relate prices there's a seventeen year old chinese kid who's got this incredible computer firepower that he could be a worthy adversary for a jamie diamond or a lloyd blankfein i supported you tone well in this article they quote simon really

veldts he said because it is not going to fly because there is no central bank or power base is doomed to fail well that statement is wrong by saying that the bitcoin is not backed by anything that's false whoever said that is it a big point is backed by krypton. graffiti which gives it legitimacy which gives it sounds of miss the us dollar truly is backed by nothing because any time america needs to pay its bills for foreign creditors it simply prints more dollars that's why the bric nations want to create their own currency that's why china is the celebrating their purchase of dollars that's why the u.s. dollar is losing its status as a world reserve currency because the social bank of the us simply prince more whenever bills come due so it is backed by nothing they severed the connection to gold back and i think seventy one so here's a currency pretty coin that is backed by something of actual value cryptography it

has true anonymity and it has true scarcity value the way it's going to structed to prolong the seventeen year old creator of bitcoin it is obviously going to go to war with jamie dimon we can only hope that he doesn't get bought out along the way ok so as i said if the opposite is the anti-bank it's considered the n.t. bank and i asked also would you go out and raise the tongs or would you rather be damie diamond so let's move on to jamie dimon and j.p. morgan why people hate the banks so this is from joe nocera of the new york times they said a few months ago i was standing in a crowded elevator when jamie dimon the chief executive of j.p. morgan chase that then when he saw me he said in a voice loud enough for everyone to hear why does the new york times hate the banks well joe nocera says i would direct your attention to the bible of your industry the american banker on monday it published the third part and it's depressing and infuriating series on credit card debt collection practices and max this whole

series was about the fact that j.p. morgan just very similar to the foreclosure crisis was selling on so-called bad debts from j.p. morgan chase credit cards but in fact they had none of the paperwork they just sent it on to you know kneecap ors and debt collector. who were very aggressive chasing people who had actually paid in many times their debt because they hate banks they hate you janey they hate you because you just tried to good name of banking because you've turned the idea of a bank into a predatory schlock house that goes about settling his shop derivatives to grannies and orphans and bankrupt them and laughs about it so keep that in mind ok it's not the banks it's you we hate you jamie you you your family everyone who's a friend of yours you know fricken compound of morons over there we hate you yeah that was the equivalent i have to say of jamie diamond it's like a verbal fart in the elevator and everybody was left with his stake in their having

to deal with his self pity so i thought i was there ten k. or ten q it's like the equivalent of regulatory flatulence and then the f.c.c. takes a look at it to hold their nose ious jamie's ten k. again let's hold our nose he sends us a big bag of dog poop again so let's move on to another practice of being cheney diamond j.p. morgan chase says that charged some accounts debit cards twice j.p. morgan chase apparently double charge them debit cards so his actual cash is not credit and they blamed a computer glitch well that's the new repo scam remember lehman brothers recall one of the little pet banks they had on their side from a dick told him that he did the override borrowing from these first three works on his overnight commercial paper repo market so jamie diamond the banker of the individual that people hate he figured out you know what we'll just debit a bunch of credit cards overnight we'll take that as

a repro will roll over some commercial credit or other on the floor i should say and then we'll come back tomorrow morning if there was a glitch or we have these their money over and we rolled over some that are but this is a constant crime that j.p. morgan is committing is customer funds are seized over and over is very similar to the m.f. global story now we're going to look at another. headline well accidentally hoops customer funds get comingled in j.p. morgan's regulators expected to penalize j.p. morgan over lehman collapse the commodity futures trading commission is expected this week to file a civil case against j.p. morgan the bank is expected to settle the matter and pay a fine of approximately twenty million dollars while the penalty is significant for the agency the sum is little more than a rounding error for a bank as large as j.p. morgan the lehman action stems from the questionable treatment of customer money an issue that has been at the forefront of the recent outcry over m.f. global j.p. morgan was also into italy involved in the final days of that brokerage firm but they still money they stole money from m.f.

global customers or so money for their debit card customers there's still money in this scandal they still muddy pretty much the modus operandi of the bank they're thieves they're thieves jamie diamond is a safe the trading commission is expected to accuse j.p. morgan of over extending credit to lehman for two years leading up to his bankruptcy in two thousand and eight using an inaccurate evaluation of lehman's worth improperly counting lehman's customer money as belonging to the firm under federal law firms are now allowed to use customer money to secure or extend credit the arrangement worked well for both parties lehman wanted a larger loan and suggested counting money from the customer account to justify it j.p. morgan complied counting the money as part of lehman's coffers it is unclear whether j.p. morgan knew the money belonged to clients but in the view of regulators it should have the customer funds were kept at j.p. morgan account the funds belong to investors trading and the futures market so max we saw the same situation in m.f. global where m.f.

global's accounts and their customer accounts were held at j.p. morgan the same with lehman brothers the same with bear stearns the same with over and over and over again the same situation happens what do you think of that well up until recently when they used customer money as collateral to arrange loans and to arrange predatory. well confiscation there was enough slack in the system where at the central bank level they could simply release some more funds and to cover the criminality you know paper over there could be criminality business the credit collapse of two thousand and eight. it's hard to do that so you see now the in the foreground when when morgan when diamond and j.p. morgan need to steal customer money now it's no longer in the shadows it's in the forefront of all of the daily operations of the street so you can see the hand of jamie going into people's accounts and stealing the money so you lose your funds

there you are jamie diamond jefferson county was daley diamond casino italy was jamie diamond milan italy was jamie diamond. customers in m.f. global were jamie diamond and yet over and over to see if he see the s.e.c. issue little tiny fines big deal and jamie diamond continues to far in elevators around the globe joe says there's a lot of you hate bankers why you practice there are times that's almost my point you sort of banker he's a he's a social pariah he's a social these easy's a parasite a lot of people don't like having cancer either that doesn't mean you should be in the elevator but you support cancer so let's look at the spinal headline here max i want to say how do we address this issue where never can we ever touch these and why does jamie diamond continue to jamie diamond funds around the world well pupils are not afraid of new methods of punishment schools need new ways of disciplining badly behaved students because they are no longer afraid of current punishments the

association of teachers and lecturers conference was told a.t.l. member julian perfect said this is not a rallying call to start thrashing people left right and center but when corporal punishment was abolished nothing was put in this place that had a quibble and deterrent powers so i want to look at the fact that glass steagall was overturned and nothing was put in its place the same here when corporal punishment was removed in one thousand nine hundred six in the u.k. it was no other deterrent allowed so the students are out of control in the classroom the same here jamie diamond lloyd blankfein every single bank and broker on wall street in the city of. and it is out of control because there is no adequate deterrent since glass steagall itself in china as we've covered yeah the chinese when they find bankers that are stealing they have the state executes them so that's one thing trying to guess our eyes days ever thanks so much for being on the kaiser report thank you max go away much more coming away this thing right there. in.

the world with. its technology innovation all the it's developments around russia we've got the future covered. you're welcome back to the kaiser report time now to go to shag thailand to speak with michelle balance of the p.d.p. foundation michelle also writes for al-jazeera michelle welcome to the kaiser report so it's nice to be here it's actually my favorite show so this is. really

only for me oh fantastic all right well michel you are paying salaries in bit call lane at the p.d.p. foundation we've been talking about bitcoin tell us more well you know there's a few things that we like to. do first thing. you know we call the socialists over an. idea. and he's not created by the by the state he's who really exists because there's a human community you know the hacker community to be calling community wish once this to work and trust the protocol is designed to create some money so this is a kind of historical moments you know for a post was fairly in currency you know that we used to have local currencies then the nation state came in and basically destroyed them and so the factor we now have a working global currency that is created by communities in our mind is usually

significant as a kind of symbolic moment in the history of mankind and there is another aspect we share a sense that this free money and you know as you know a compound interest is a myth method mathematical and physical you know a. nation distributed destroys the planets and so to have a currency with a fixed amount does create debt free is also really really important and i do think it functions as a global reserve currency earner already and then finally more pragmatic lee you know we are we consider ourselves a few a or a far i know which is a community supports this business enterprise and when you work like this with people you call long in barcelona and i'm saddam insuring my and different place in the world you know the ability to change money in different currencies from the

core and it has a core dramatic effect on transaction costs it's a it's truly amazing so this is going on our care bill perry magic. extra now michelle many react with great house gelatine to head to bed point or the mayor i dare say and these are people who normally might be supportive of gold or silver for example of which they point shares many of the same characteristics why do you think people are hostile toward bad going well you know there is a big debate that i guess amongst the monetary people go do you know the money should stand for something right so people who fear money and it's any kind of money which is not linked to something real then it is actually in actual fact you know money has being virtual center cleese the seventy's and the korean is kind of like putting these in front of your face right the only reason this money exists is because a group of people decide to trust that you know i know some people then clave there

you know it's link to the price of electricity because the way it's produced i don't know i mean are not an expert enough to chose their particular aspects but i think the key for me is how it's created it's true protocol which it first started by community this is the key i think everything else is more more detail and the fact that it exists that it's already working within the community it's not expressing our side of it that has a parental use. this is significant because before that we had many many local currencies and they weren't put it on scale i mean you know you have crime gangs of this you know they've been existing for thirty years they will mean there they're being created everywhere you know truthfully position from movement and other you know the movements pretty don't scale and the scoring skills that's what's amazing about right well the idea of it being tied to electricity would be a little bit like saying that a price of a euro or a dollar is tied to price of paper it's not really

a practical argument per se but with men coins it is tied to cryptography and the fact that you have a purely anonymous currency that's outside of state corporate banking fractional reserve all the pieces of the puzzle around the global banking system that people already belling against it into the the onerous quality of it so it is backed by this part of me i wish there is a limited it is a scarcity it is a crisp air city there is a curious scarcity of bad coins and this drives at the end of the day value whereas all the psycho banks of the commercial banks every time they have a bill do they just print more of their fee at currency so there is something backing the big point now you describe our economic system as being one of pseudo abundance and artificial scarcity explain imagine you're a martian and you come to these furniture and you see this race of humans actually destroying their various fear and the reason they do this is because they believe the system is based on the idea that we have infinite material resources and this

is just not true so because of compound interest and other features we have to grow all the time and you know that decreases compounds exponential growth and the planet can can no longer carry it so this is the real crisis of our system then the second crisis is that so we need to still have all these problems but we can't because we know there is a law that says if you share information you go to jail then it's really essential that we have assistance up to those things around so. you know lou really think our economic growth throughout the earth can regenerates. and the other part is make solutions globally available now i used to work in the your industry. well all this other early ninety's and you know in the seventy's whether through rising or renewable energy. industry in california you know what happened you know they

bought they brought the companies up to the basin shelf and we lost thirty years of development we would have needed to have or internal warming and so this is what i mean by artificial scarcity and you know the punitive period paradigm that i'm working on with many other people he's basically about to just create a system where sharing used free and the economy takes kind of externalities he's responsible for what it does to the planet so this is kind of help to model where these sickness you know these these basic. cancer's is kind of my transforming to his office it's so rich ignition. let me share this. mission that sherry you know even resources can be shared a little cool so why should you make the crew didn't hear i said let's talk about the two to playing your your argument here this pseudo abundance this applies to

things like natural resources or energy resources oil for example people are very reluctant to take on board the fact that starting out about a year ago the globe hit peak oil in terms of the cheap oil readily available and they they simply have an orthodoxy that rejects the idea that they the earth could possibly run out of natural resources even though the the the evidence is banging them in the head like a frying pan every single day and then you have the artificial scarcity and this of course is what milton friedman i mentioned when he talked about copyright and copyright law he said it was an artificial scarcity and you couldn't really apply problem private property laws to copyright and what about this topic of copyright the copyright cartel if you see that the united states government is acting on behalf of those who monopolize the artificially scarce copyright intellectual property domain and they're becoming more and more extreme so in other words hollywood has lobbyist in washington and then they don't want people copying their

material even though they have a constitutional right to do so and they're willing to throw the entire american economy under the bus that they're willing to throw the entire internet under the bus to protect a very small slice of the global economy because they have hollywood behind them they get away with this incredible narrowly interested capsizing of the better interests of the society for the benefit of a few pampered and privileged copyright cartel us in hollywood the sickly. her new movie making that much. money industrial production right i mean the real profit is not industrial production it's an intellectual property so from the point of view of united states and its big companies it makes sense you know because they are making shoes for five dollars in china and in chinese you know where

yes their economies are growing but you know they get really small profit rates on the production and then they sell them at four hundred fifty dollars in the west and the surplus is in question probably does the only reason they can sell those shoes at those prices and so if you want to do that you need to or press that ip regime and you need repression i think i want to make another point which is basically you know capitalism is based on economies of scale is something that's going to resource are infinite means that the way to compete is to produce more of a good so you bring down the price to produce if you're all compete well there's an prices going down but you know you understand the logic is making more competitive now as we go forward and. a society which is marked by abundance of energy and resources through under this where is diminishing that's not going to

work anymore so we need to move from economies of scope to economics of skater from scale to scope so the cone cost of producing something needs to go down and this is where peepers action does with the new some software free software to share designs and actually to physical production i don't know if you're familiar with we can speak with the spirit is a card that was for use in treatments by phone two years competing for x. prize. he's still one hundred million birds one of higher per gallon. car coal not security certificates and he can be made a microfracture in your garage so the scales up from one so this is the kind of economy you need in the future right so the image you know part of the shared the designs can be downloaded in the whole world and then you have companies making them on the man printing on them and making of them and then this is what peter

peace time is worth the swedish where the culture does science although the share it's ok and the. the making is done in this if you have factories and then you know that's where because next comes in right you have this huge machinery three d. printing person very charismatic the machines c.n.c. milling machines in these micro factories you have these share design depositories like the new verse and then you can get money is distributed fashions who solution lending and cross funding and then you can pay with this into the currency which is produced in a peer to peer way you know if you have a computer you can produce because. so i were trying to the point i'm trying to make is that these pieces of percival's which are separate are starting to come together we're seeing this if you deprive her. he marry she in every field of human

endeavor and he started. this he was on the distributed manufacturing this if you don't know this creation all these things are the new u.t.a. often use of illustration and you economics and use the ok so it's a pay to play around a science myself balance or out of time i wish i could spend another twenty or thirty minutes with you but we'll have to have you back on if that's ok with you thanks for being on the kaiser report tremendously owner and. yes i do hope that we can talk again and ask you to do it for this edition of the kaiser a quarrel with me max kaiser and stacy herbert are thank my guest michelle balance of the p.d.p. foundation is going to send me an e-mail place to sell at kaiser report r t t v are you in talks on backlash or saying by all.