it's how past eleven here in moscow kevin i wouldn't want shouty international top stories and thousands rallied behind president assad the syrian conflict with the regime blaming terrorist groups for escalating violence ahead of the ceasefire deadline this is the u.n. denounces damascus for recent attacks. it emerged the tear gas and water cannon we used on crowds in bahrain on friday as thousands marched in support of the jailed anti government activist the man's been under strike for two months now and is being treated in a military hospital. and relentless cuts the recall that employed leave investors

cagey over whether spain can really escape of the service for hundreds of thousands of people having to protest they say the government's leaving them on the breadline . just fifteen seconds away much in stacy expose ignore the dark side on the global financial headlines in the late submission of the kaiser report for you. little. chilly. in the. film. of this is because a report there is a new global currency rising stacie the x. prize there bitcoin the city traders anarchic new toy financial traders have

a new toy calling a digital currency variously dismissed as a ponzi scheme or allowed it is the greatest invention since the internet unlike conventional fi out 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 bitcoin and 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 he are i am a bit coin is another shot another attempt to bring about the will of the people so this article on reuters 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 corn

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 big corner a platform offering margin trading short selling and stop orders run by a seventeen year old chinese high school student zune tongue users can lever. their bets up to a ratio of ten to one 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. that is. speaking of the ninety's a. big kid that 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 tong or would you rather be jamie diamond or lloyd blankfein well this is why it's very encouraging i think because of the zoo 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 match that up against let's say the protesters of occupy wall street and i would make my bed with those two tong 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 well documented well understood by masters

engineers and 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 while that statement is wrong by saying that the big coin is not backed by anything that's false whoever said that is an idiot big point is backed by cryptography which gives it legitimacy which gives it sounds and this the us dollar truly is backed by nothing because any time america needs to pay its bills for foreign creditors it simply prince 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 a 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 and i think seventy one so here's a currency good coin that is backed by something of actual value told graphy it has true and in the nitty and it has true scarcity value the way it's destructive to tone 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 published the third part and it's depressing and if you're reading serious on credit card debt collection practices and max this whole theory. 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 know kneecap others and debt collectors who were very aggressive chasing people who had actually paid in many times their debts because they hate banks they hate you jamie they hate 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 bankruptcy and laughed about it so keep that in mind ok

it's not the banks it's you we hate you game me you you your family everyone is a friend of yours you're all frickin 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 four in the elevator and everybody was left with his stink in there having to deal with his self-pity but 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 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 with jamie diamond j.p. morgan chase says it 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 recall

one of the little pet banks they had on their side from a cold netty through the over i borrowing from the entire street working on this 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 bunch of credit cards over and i will take that as a repro will roll over some commercial credit all 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 in bed. 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 what accidentally hoops customer funds get comingled in j.p. morgan's regulators 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 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 and 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. 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 the funds belong to investors trading and the futures markets 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 go up 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 the central bank level they could simply release some more funds and the cover of the criminality you know paper over there could be criminality because the credit collapse of two thousand and eight. is hard to do that so we see

now the in the foreground when when more again 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 a diamond casino italy was jamie diamond mine and italy was jamie diamond. customers in m.f. global were jamie diamond and yet over and over to see if he see the i.c.c. issue little tiny fines big deal and jamie diamond continues to far in elevators around the login josephus's why do you hate bankers why do you hate bankers there are times that's almost my point you call a banker he's a he's a social pariah he's a social easy he's a parasite a lot of people don't like having cancer are there those i 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 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 conferences. colt 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 equivalent deterrence 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 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 in trying to recover yeah to 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 there were six of us being on the kaiser report thank you max go away much more coming away to stay right there. in. the. director's calls was a real. prison on march. oh.

my fries are welcome back to the kaiser report time now to go to shanghai thailand to speak with michelle balance of the p.d.p. foundation michelle also writes for al-jazeera michelle bachmann the kaiser report so it's really nice to be here starts with my favorite show so this is going. only for me oh fantastic. the guy right well michel you are paying salaries and bitcoin 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 about the score in the first thing is you know we call the socialists over in currency so it's a currency which is not created by the banks. and he's not created by the by the state is he really exists because there is a human community you know the hacker community to be calling community wish once this to work and trust the protocol that is designed to create some money so this

is a kind of historical moment so 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 is that this free money and you know as you know a compound interest is a mixed message mathematical and physical you know. nation that this really destroys the planets and so to have a big currency with a fixed amount does create that 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 you know which is sake you need these to warrant this business enterprise and where you work like us which people even call long in barcelona and i'm saddam ensuring my 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 his truly amazing so this is karen i care to be who are married him. extra now michelle many react with great house elevator to head to bed point or the mayor i dare say and these are people who normally might be supportive of dollars overpriced apple which they call in shares many of the same characteristics why do you think people are hostile toward bad point well you know there is a big debate that i guess amongst the monetary people vote you know the money should stand for something right so people hate fear of money and the it's any kind

of money which is not linked to something real and is actually in actual fact your money has being virtual senior police the seventy's and be korean is kind of like putting it in front of your face like the only reason this money exists is because a group of people decided first you know 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'm i'm you know are not an expert enough to purchase their particular aspects but i think the key for me is how it's created it's through a protocol which is first to the right 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 of snorri sparing outside of it to these has a presently 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 know as time bearings of this you know they've been existing for thirty years they're moving

there they're being created everywhere you know truthfully position from movement and in order to know the movements really don't scale and beef corn scales that's what's amazing a book 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 bent coin it is tied to cryptography and the fact that 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 due to the the onerous quality of it so it is backed by this part of me i wish there is a limit it is a scarcity it is a cruise care city there is a true scarcity of bed 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 car 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 planets and you see this race of humans actually destroying the barriers 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 other features we have to grow all the time and you know the 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 is a law that says if you share information you go thank you and it's really essential that we have a system doctors those things around so. you know lou limiting our economic growth

to what the the earth can regenerates. and the other part is make solutions globally available and i used to work in the your industry. well what was the 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 that they want the companies up to debate and shelve them and we lost thirty years of development we would have needed to avoid term 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 isn't basically about this create a system where sharing history and the economy takes count of externalities he's responsible for what he does to the planet so this is kind of help to model where these sickness you know these these sort of basic. cancer's is kind of like

transforming into his office sue recognition. and recognition cheri you know if you resources can be shared nucor so why should you make a screw here i say let's talk about the two the two playing your the argument here this pseudo abundance this applies to things like natural resources or energy resources or 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 great site about copyright and copyright law he said it was an artificial scarcity and you can really apply private 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 those to monopolize the artificially scarce copyright intellectual property domain and they're becoming more and more extreme so in other words hollywood has a lobbyist in washington and 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 us in hollywood basically we. knew making that much. money industrial production right i mean the real profit

is not in goes to 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 well yes their economies 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 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 an ip regime you need repression 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 it's going to resource or anything it means that the way to compete he's to produce more of a good so you bring down the price of produce if you're all compete well there's an

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

a microfracture e 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 the designs can be downloaded into whole worlds and then you have companies making them on demand printing on them and making up the maps and this is what appears to be his tense voice this week where the culture of the science all there is shared and the. 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 person very charismatic the machines c.n.c. milling machines in these micro factories you have these share design depositories like paying your verse and then you can your money is distributed fashion through social ending and across funding and then you can play with a p.c.

with 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 use of patterns. emerging in every field of human endeavor and he started. this universe from doing this through the manufacturing this if you didn't always creation all these things are. they all the new civilization and you can only use this ok so it's ok to play around our sons' myself 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 if that's ok with you thanks for being on the kaiser report tremendously owner then yes i do hope that we consulted here 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 there are t t v are you in talks i maxed out or think by all.