which brightened if you. are from plans to. start on t.v. don't come. here with r.t. let's take a look at our main headlines now the head of the un criticizes the syrian regime for cracking down on the opposition despite pledges from damascus to cease military activity within days thank you and says president service quality latest u.n. security council statement demands an end to hostilities by thursday. self declared who leaders in mali agreed to step down and hand power to civilians after immense pressure from neighboring countries for two weeks of military rule in

return for fuel and trade battle against body would be lifted. is granted amnesty. and critics lash out at the u.s. for trying and sentencing as adults calling it a cruel and unjust around ten thousand miners are held in adult jails and prisons throughout the country. but next to max and stacey expose the dark secrets of the global financial markets stay dotty. 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 big calling a digital currency variously dismissed as a ponzi scheme or allowed is the greatest invention since the internet unlike

conventional forgot money and other digital currencies because it runs through peer to peer network independent of central control it's called max that anti bank system because there are no bailouts of banks it coined we've been covering but going 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. in the are i say coin is another shot another attempt to bring about the will of the people so this article in the reuters points out that there are all these 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 a platform offering margin trading short selling and stop orders run by a seventeen year old chinese high school student zoot tong users can leverage their bets up to a ratio of ten to one meaning they can lose more than their initial investment so to be wrong just to be wiped out financially and we're going to turn now to a little new hip song a rap song based on. well that is close to speaking of the ninety's it's. big head on the internet back then called amsterdam. but 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 tongs or would you rather be jamie diamond or avoid blankfein well that 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 the south side of the current regulatory environment value match that up against let's say the protesters of occupy wall street and i would make my bed with those who tong because he is able then to go into the market and create love say trading pushback against j.p. morgan j.p. morgan fabricates they they sell into the marketplace counterfeit credit default swaps to manipulate prices this is not well documented well understood life masters engineers of jamie diamond ok is it and then manipulate 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 banker power base is doomed to fail well that statement is wrong by saying that the big coin is not backed by anything that's false whoever said that is it a big point is backed by tom. graffiti which gives it legitimacy which gives it sounds in there. 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 us why the us dollar is losing its status as world reserve currency because the social bank of the us simply prince more

whenever bills come due so it is backed by nothing and they severed the connection to gold back in one hundred seventy one so here's a currency good coin that is backed by something of actual value cryptography it has true and then many and it has to scarcity value the way it's going to structed to call on 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 rather be or would you rather be jamie 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 diamond the chief executive of j.p. morgan chase stepped in 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 if you're reading serious on credit card debt collection practices and max this whole series was about the fact that keeping 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 spent it on to you know kneecap ors and debt collector. who were very aggressive chasing people who had actually paid in many times their debts so they hate banks they hate you jayme they hate you because you just tried to good name of banking because you've turned the idea of a bank into a predatory shock house that goes about settling bucket shop derivatives to grannies and orphans and bankrupt them and laughed about it so keep that in mind ok it's not banks it's you we hate you game me ok you you your family

everyone who's a friend of yours you're all 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 far in the elevator and everybody was left with his stake in their having to deal with his self-pity so i thought that was their ten k. rather 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 oh it is jamie's ten k. again let's hold our nose he said just a big bag of dog poop again so let's move on to another practice of being diamonds j.p. morgan chase says that charged some my talents debit cards twice j.p. morgan chase apparently double charge them debit cards so its actual cash is not credit and they blamed a computer glitch well that's the new repo scam remember lehman brothers recall one of five scam their little pet banks they had on their side from a dick told him that he did the override borrowing from and these are three works

on this overnight commercial paper repo market so jamie diamond in the banker of the individual that people hate he figured out you know what just debit a bunch of credit cards overnight we'll take that as a repro will roll over some commercial credit of the on the floor actually today and then we'll come back tomorrow morning and say it was a glitch but we have these their money over to be rolled over and 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 enough. the headline went accidentally hoops customer funds get comingled in j.p. morgan's regulator is expected to penalize j.p. morgan over a lehman collapse the commodity futures trading commission is expected this week to file a civil case against b.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

and issue that has been at the forefront of the recent outcry over m.f. global j.p. morgan was also intuitively involved in the final days. but they still money they stole money from m.f. global customers are still money for their debit card customers there's still money in this scandal they still muddy pretty much is the modus operandi of the bank they're thieves they're thieves jamie diamond is a thief 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 not 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 a 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 their store and 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 of 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 a credit collapse of two thousand and eight. it's hard to do that so we 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 diamond casino italy was jamie diamond midland italy was jamie diamond. customers in m.f. global were jamie diamond and yet over and over the see if he see the s.e.c. issue little kind of finds big deal and jamie diamond continues to far in elevators around the globe to josephus's why do you hate bankers why do you preggers new york times that's why must i put you for the banker he's a he's a social pariah he's a social he's a parasite a lot of people don't like having cancer either that doesn't mean you should be in the elevator telling new york times that you support cancer so let's look at this final headline here max because i want to say how do we address this issue where you know never can we ever touch these why does jamie dimon 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 its place that had equivalent deterrent powers so i want to look at the fact that class. stiegel 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. there 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 all wall street in the city of london is out of control because there is no adequate deterrent since glass steagall itself and as we've covered yeah the chinese when they find bankers that are stealing they have the state actually kids them so that's one thing so i guess there were talks about spring because

a report making rags go away much more coming away this thing right. field. and. the. directors because it was a real life. on mars. you're

welcome back to the kaiser report time now to go to shang maine thailand to speak with michelle ballons of the p.d.p. foundation a shell also writes for al-jazeera michelle welcome to the kaiser report so it's really nice to be here first with my favorite show so this is a very big. honor for me oh fantastic all right well michel you are paying salaries in bit coy and 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. the first thing is you know we call the socialists over in currency so it's a currency which is not created by. and he's not created by the state he's really exists because there is a human community you know the hacker community to be calling community wish one has to work and trust protocol design to create some money so this

is a kind of historical moment you know for both 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 should set this free money and you know as you know a compound interest is in a mess mathematical and physical you know a. nation that just really destroys the planet and so to have a big currency with a fixed announce this created debt free is also really really important and i do think it functions as a global reserve currency already and then finally more pragmatic lee you know we

are we consider ourselves a few a or a fire you know which is a community support to this business enterprise and when you work like us with people you call on the inverse alone i mean i'm certainly showing mine and different place in the world you know the ability to change money in different currencies to be cory it has a core dramatic effect on transaction costs it's a it's truly amazing so this is car care a bit of a paramedic. thanks now michelle many react with great house deloraine to head to bed point or the mere idea and these are people who normally might be supportive of dollars over for example which made point shares many of the same characteristics why do you think people are hostile toward bed point well you know there is a big debate i guess among some monetary people go to you know the money should stand for something right so people hate money and. any kind of money which is not

linked to something real then it is actually in actual fact your money has being virtual senior police the seventy's then be korean is kind of like putting these in front of your face strike the only reason this money exists is because a group of people decide to trust no i know some people them collator you know it's think of the price of electricity because the way it's produced i don't know i'm you know i'm not an expert enough to just their particular aspects but i think the key for me is how it's created it's through a protocol which is first and 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 or snide sparing outside of it that has a practical use. this is significant because before that we had many many local currencies and they weren't but they don't scale i mean you know you know find bearings of this you know they've been existing for thirty years they're booming

they're they're being created everywhere you know who's going to positions on movement in and over you know the movements believe don't scale then be scoring skills that's what's amazing a book for a while the idea of it being tied to electricity would be a little bit like saying that the price of a euro or a dollar is tied to the price of paper it's not really a practical argument per se but with bitcoin it is tied to cryptography and the fact that you know you have a purely anonymous i currency that's outside of state corporate banking fractional reserve all the pieces of the puzzle around the global banking system that people are rebelling against me again or the the onerous quality of it it is backed by this cryptography of which there is a limited it is a scarcity it is a cursed care city there is a curious scarcity of bad coins and this drives at the end of the day value whereas all the central 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 artificial scarcity explain imagine you're a martian and you come to this planet and you see this race of humans actually destroying the barrios fear and the reason they do this is because they believe the system is based on the idea that we're infinite material resources and this is just not true so because of compound interest and i know there are features we have to grow all the time and you know the increase is coming from so exponential growth then the planet can can no longer carry it so this is the real crisis of our system then the second crisis is is there so we need to solve all these problems or we can't. you know there is a law that says if you share information you're good that you and this really essential that we have a system doctors those things around so. and you know lou limiting our economic

growth and what the the earth can regenerate. and the other part is make solutions globally available you know i used to work in the oil industry. well these are 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 the they got the companies up to the base of the shelves and we lost thirty years of development we would have needed to have more internal global warming and so this is what i mean by artificial scarcity and you know the peer to peer paradigm that i'm working on with many other people is basically a party has created a system where sharing used free and the economy takes count of externalities he's free sponsible for what he does to the planets so this is kind of turned him on where these sickness you know these these sort of basic. cancer is kind of like

transforming into his office sue recognition. and recognition cheri you know if it's your resources give the shares a new course so why should you make this criminal here i said let's talk about the two the two playing your your argument here this pseudo abundance this applies to things like natural resources or energy resources or oil if 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 to 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 freidman i mentioned we talked about copyright and copyright law he said it was an artificial scarcity and you can really apply profit private

property laws to copyright and what about this topic of copyright the copyright cartel to see that the united states government is acting on behalf of the submit up lies 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 and 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 ists in hollywood basically we are new movie making much. money industrial production right i mean the real

profit is not industrial production he'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 well yes their economy is growing but you know they get really small profit rates on the production and then they sell them four hundred fifty dollars in the west and the surplus is intellectual property does the only reason they can sell those shoes are those prices and so if you want to do that you need your present ip regime and you need a regression i think i want to make another point which is basically you know capitalism is based on economies of scale it's this assumption that the resources are infinite means step two way to compete he's to produce more of a good so you bring down the price of produce if you're out compete well there's

prices going down but you know you understand the logic is making more competitive no as we go and. a society which is marred by abundance of energy and resources to one that is where is the mission that's not going to work anymore so we need to move from economies of scope to economics of skill. from scale to scope so the cone cost of producing something needs to go down and this is where people of russian birds will move from software free software to share designs and actually to physical production i don't know if you're familiar with we can speed we speed is a car that was for use in tree months by phone tears competing for x. price. he's still one hundred million. a one hundred mpg. car. no not security certificates and it can be made in

a microfracture e in your garage so the scale of that 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 the designs can be downloaded in the whole world and then you have companies making their bonder man printing on demand making of the maps and this is what appears to be his tense voice this week where new culture into science although he shares an be. the making he's done in this if you have factories and then you know that's where because it's comes in right you have this huge machinery three d. printing personal fabricators multi machines c.n.c. milling machines in these micro factories you have these share design depositories like painting a verse and then you can get money is distributed fashion through social lending

and across funding and then you can be with this included currency which is produced in appeared to be a way you know if you have a computer you can produce because. so i know there are trying to the point i'm trying to make is that these pieces of the puzzles which are separate are starting to come together we're seeing this into the patterns. emerging is resealed a human endeavor and the start of the disputed money this was founding this review the manufacturing this if you don't know is creation all these things are the way all the new civilization and you economics and use the sorry ok so it's ok to pay around a thumb's well balanced or out of time i wish i could spend another twenty or thirty minutes with you but i have patty back on a bet with you thanks for being on the kaiser report i'm tremendously owner then and yes i do hope that we can talk again and ask you to do it for this edition of

the kaiser report 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 and what i'm after saying by all.