market why not. find out what's really happening to the global economy with much stronger or a no holds barred look at the global financial headlines cons report. regards the line from moscow or it's five thirty pm our top stories thousands rally behind president also live in the syrian capital where the regime blaming terrorist groups for escalating violence ahead of the cease fire dead by this hour the u.n. denounces damascus for recent attacks. mali's new military leaders agree to hand power to civilians to end the sanctions imposed by the embattled african countries neighbors nations parliamentary speaker is to be sworn in as interim president and

will organize elections within forty days. regardless concert record on one point lead investors cagey over whether the euro zone's fourth largest economy can really escape a valid you know thirty has drawn hundreds of thousands of people out in protest they say the government's leaving now on the present time. max max and stacy expose the dark secrets of the global financial markets in the kaiser. little. chilly. chilly. to report there is a new global currency rising stacy kaiser bitcoin the city

traders in arctic new toy financial traders have a new toy in a digital currency variously dismissed as a ponzi scheme or allowed it is the greatest invention since the internet unlike conventional figure out money and other digital currency is becoming run through a peer to peer network independent of central control it's called max the empty bank system because there are no bailouts of banks coins 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. and the r i am a coin is another shot another attempt to bring about the will of the people so this article and warriors point 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 and big corning but remember there are no bailouts available for there and they talk about bitcoin is 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 big quinta a platform offering margin trading short selling and stop orders run by a seventeen year old chinese high school student xu tong users can lever. their bets up to a ratio of ten to one on bitcoin meaning they can lose more than their initial investment so to be easy to tong 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 quiet and speaking of the ninety's a fresh million big hit on the answer that back then called hamsterdam. 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 a zoo tong or would you rather be jamie diamond or the lloyd blankfein well the this is was very encouraging i think because of the suit tong essentially has in the palm of his hands an entire exchange and an entire currency that's outside of the current regulatory environment value matched up against let's say the protesters of occupy wall street and i would make my bed with those who call because he's 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 of jamie diamond ok is it and then when it relates 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 kong well in this article they quote simon really veldts he said is not going to pry because there is. no central bank or power base is doomed to fail call that statement is wrong by saying that the big coin is not backed by anything that's false whoever said that is idiot big coin is backed by cryptography which gives it legitimacy which gives it sounds and this the us dollar is 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 decelerating their purchase of dollars us why the us dollar is losing its status as a world reserve currency because the central 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 but coin that is backed by something of actual value cryptography it has true anonymity and it has true scarcity value the way is constructed a huge toll 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

and he 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 published the third part it's depressing and if you're reading series on credit card debt collection practices and access healthier . it 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 no need cowper's and debt collectors who were very aggressive chasing people who had actually paid it many times their debts because of the hate crimes they hate you jamie you because you've destroyed the good name of banking because you've turned the idea of a bank it's a predatory schlock house that goes about settling bucket shop derivatives to

grannies and orphans and bankrupt and laughed about it so keep that in mind ok it's not the banks it's you we hate you jamie ok you you your family everyone who's a friend of yours you're all for it can compound of morons over that 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 a stake in their having to deal with his self pity but i thought i was there 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 use jamie's ten k. again let's hold our nose he said there's a big bag of dog poop again so let's move on to another practice of being the genie 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 was not

credit and they blamed a computer glitch well that's the new repos scam remember lehman brothers recalled one of the little pet banks they had on their side from a dick fuld neddy the override borrowing from the forestry 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 just debit a glance of credit cards over and i will take that as a repro will roll over some commercial credit on the on the floor. and then i'll come back tomorrow morning and say it was a glitch but we have these your money over to be rolled over. 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 where accidentally 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 lehman 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 intimately involved in the final days of that brokerage firm 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 mighty pretty much is 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 a j.p. morgan account that 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. . org and 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 oh oke until recently when they use customer money as collateral to arrange loans and to arrange predatory wealth 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 their good to criminality just as 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're jamie diamond jefferson county was daley diamond casino italy was jamie diamond and the land italy was jamie diamond. customers in m.f. global were jamie diamond and yet over and over to see if he see that s.t.c. issue little tiny finds big deal and jamie diamond continues to far in elevators around the world joe says there's a lot of you hate bankers why do you hate bankers there are times that's almost my point it's not a prank or he's a he's a social pariah he's a social easy's

a parasite a lot of people don't like having cancer either those remains should be in the elevator its own maritimes 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 never can we ever touch these writers 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. number 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 happened quickly 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. there was no other deterrent allowed so 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 except in china as we've covered yeah the chinese when they find bankers that are stealing they have the state actually case them so that's one thing trying to get our eyes days there were thank so much being on the report thank you max go away much more coming away to stay right there. to your social ante up location to your body for the long cold touch from the. life on the go. video on demand. among the old girls an omniscient speech now in the palm of your.

machine on the key george called. nice guys are welcome back to the kaiser report time now to go to thailand to speak with michelle ballons of the p.d.p. foundation i shall also write for al-jazeera michelle welcome to the kaiser report so it's certainly nice to be here it's actually my favorite show so this is going. on for me oh fantastic all right well michel you are paying salaries and big call aimed 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 in currencies which is north korea. and it's not created by god by the state he's who really exists because there is

a human community you know the hacker community to be going community wish once this to work and trust the poor coal 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 sort of 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 the sense that this free money and you know as you know compound interest is a myth myth mathematical and physical you know a. nation this really destroys the planets and so to have a big currency with a fixed amount that's create debt free is also really really important and i do

think it functions as a global reserve currency or already and then finally more pragmatic lee you know we are we consider ourselves a few a or a fire oh we should say community supports its business enterprise and when you work like us with people you call long in barcelona and i'm stuck there i'm showing my eye and different place in the world you know the ability to change money in different currencies to be core and it has a core dramatic effect on transaction costs and so it's really amazing so this is kind of our care to be the primary. extra now michel many react with great has elevated head to bed quiet or the mere idea of it and these are people who normally might be supportive of dollars over par exemple of which because shares many of the same characteristics why do you think people are hostile toward bad going well you know there is

a big debate i guess amongst the monetary people about you know the money should stand for something right so people hate fear of money and it's any kind of money which is not linked to something real then it is actually in actual fact to money has being virtual seen the police the seventy's and be korean is kind of like putting these in front of your face like the only reason this money exists is because a group of people decide to trust no i know some people then claim they're you know it's think of 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 affected it exists that it's already working within the community of snorri sparing outside of it that has a practical use. this is significant because before that we had many many local currencies

and they were pretty good on scale i mean you know you have time bearings of this you know they've been existing for thirty years they're all mean they're they're being created everywhere you know who through position strong movement in another another woman's who don't scale and these korean 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 the price of a euro or a dollar is tied in the price of paper it's not really a practical argument per se but with ben coin it is tied to cryptography and the fact that you know 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 are rebelling against me to know 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 cure scarcity of bed poinsettias drives at the end of the day value whereas all the cycle banks and a 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 the 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 and the second crisis is that so we need to solve all these problems or we can speak ours you know there's

a law that says if you share information you go to jail and it's really essential that we have assistance up to those things around so. you know lou we think our economic growth throughout the earth can regenerates. and the other part is make solutions globally available you know i used to work in the your industry. well those are the early ninety's and you know in the seventy's we're through rising renewable energy. industry in california you know what happened you know they bought their bought the companies up to the bait and shell firm 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 peer to peer paradigm i'm working on with many other people he's basically about it has created a system where sharing used free and the economy takes count of externalities

he's responsible for what he does to the planet so this is kind of help to him or where does sickness you know these these sort of basic. cancer is kind of like transforming into his office it's so rich ignition oh. and recognition sherry you know if you resources can be shared local so large that you make the crew here i said let's talk about the two to two planks of 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 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 cartels you see that the united states government is acting on behalf of those to 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 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 privileged copyright cartel it's in hollywood these sickly. earn new movie making damaged. money industrial production right i mean the real profit is not in doesn't production he said 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 the 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 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 replace that ip regime unit you need repression i think i want to make another point which is basically you know capitalism is based on economies of scale is basis something that's going

to resource or at least it means that the way to compete he's to produce more of a good so you bring down the price to produce it your whole 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 marred 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 scale or from scale to scope so the cone cost of using something needs to go down and this is where peepers action does when he moves from software free software to share designs and actually to physical production i don't know if you're familiar with the case he we he's be it is a card that was for use in treatments by phone here's a competing for x.

prize. he's still one hundred million girl excuse me one hundred mpg. car total 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 good designs can be done move it in the whole world and then you have companies making them on the men printing on the land making of the maps and this is what peter piece tends towards the swedish where it goes for the science although the share it's. the. you know making he's done 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 fairy kara's multi machines c.n.c. milling machines in these micro factories you have these share design because

that's the reason i think you first and then you can get money is distributed fashion through solution lending it across funding and then you can play 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 personals which are separate are starting to come together are we seeing this if you have patterns. emerging is resealed a human endeavor and he started. this he was funding distributed manufacturing this if you didn't always creation all these things are that they often use utilization and you economics and uses ok so it's a pay to pay renaissance mcclellan balance or out of time i wish i could spend another twenty or thirty minutes with you but i have to have you back on

a path with you thanks for being on the kaiser report princely owner then yes i do hope that we can talk again and they're going to do it for this edition of the kaiser report with me max kaiser and stacy herbert our thank my guest michelle balance of the katie foundation is going to send me an e-mail place to kaiser report r t t v are you until i sign back matters like bio.