markets trying to. find out what's really happening to the global economy with much stronger for a no holds barred look at the global financial headlines to cause a report. says r.t. moscow all top stories thousands rally behind president the sat in the syrian capital with the regime claiming terrorist groups press collating lives ahead of the ceasefire deadline this is the u.n. to babson's damascus for recent attacks. it's emerged tear gas and water cannons and used crowds in bahrain on friday as thousands marched in support of the jailed anti-government activists don't under strike for two months now and is being treated at a military hospital. but sanctions too much to bear malise self declared military

leaders step down in the face of international pressure only two weeks after the seizing power and agree to return the country to constitutional rule in return to the nation's west african neighbors a promise from different way back from comes to the middle. of next march and stacy exposed more of the dark side on the global financial headlines in our latest kaiser report for you enjoy. this is a cause a report there is a new global currency rising. next keyser good calling the city traders and market a new toy financial traders have a new toy bitcoin a digital currency variously dismissed as a ponzi scheme or allowed it is the greatest invention since the internet unlike conventional money and other digital currencies because he 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 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 on 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 it 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 bitcoin a meeting they can lose more than their initial investment so to be tong is 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 it's a fresh million to big hit 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 do tongs or would you rather be jamie diamond or the lloyd blankfein well the this is why it's very encouraging i think because 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 matched up against let's say the protesters of occupy wall street and i would make my bed with those two tongue because he's able then to go into the market and create let's say trading pushback against j.p. morgan and 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 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 that quote simon really veldts he said because it is not going to fly because there is no central bank or power base it's doomed to fail all that statement is wrong by saying that the big coin is not backed by anything that's false whoever said that is it big coin is backed by krypton. graffiti which gives it legitimacy which gives it sound miss 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 decelerating 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 to nine

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 clone the seventeen year old creator of bitcoin a car 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 i few months ago i was standing in a crowded elevator when jamie dimon 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 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 spent it on to you know need cappers and debt collector. years who were very aggressive chasing people who had actually paid in many times their debts so they hate banks they hate you jamie they hate you because you destroy the good name of banking because you've turned the idea of a bank into a predatory schlock house that goes about settling bucket 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 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 dimon is like a verbal fart in the elevator and everybody was left with his stake in there you know having to deal with his. self pity so i thought i was there ten k. were there ten kids 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 just a big bag of dog poop again so let's move on to another practice of being dreamy diamonds j.p. morgan chase says that charged some accounts debit cards twice j.p. morgan chase apparently double charged 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. those little pet banks they had on their side from a pick called neddy to the override borrowing from these first three works almost overnight commercial paper repo market so jamie dornan 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 or other on the floor i should say and then we'll come back tomorrow morning and say it was a glitch but we have these your money over to me roll over and all up 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 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 and issue that has been at the forefront of the recent outcry over m.f.

global g.d.p. morgan was also intuitively 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. they still money in this scandal they still money 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 now allowed to use customer money to secure or extend credit the arrangement worked well for both parties and 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 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 oh up until recently when they used customer money as collateral to arrange loans and to arrange predatory wealth confiscation there was enough slack of a system where at the central bank level they could bleed release some more funds and to cover the criminality you know paper over there could be criminality just as the credit collapse of two thousand and eight. is 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. he was jamie diamond casino italy was jamie diamond melanne 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 login josephus's why do you hate bankers why do you hate preggers new york times but that's almost my point you saw 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 that you support chances are 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 why does jamie dimon continue to jamie diamond phones 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 equivalent 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 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 london is out of control because there is no adequate deterrent since glass steagall itself in trying to recover the chinese when they find bankers that are stealing they have the state executes them so that's one thing trying to guess as a result of our spring as a report thank you max i don't know much more coming away to stay right there.

you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else and you hear or see some other part of it and realized everything you thought you knew you don't know i'm tom harpur welcome to the big picture. you're welcome back to the kaiser report time now to go to shag thailand to speak

with michelle ballons of the p.d.p. foundation i shall also writes for al-jazeera michele bachmann the kaiser report so it's really nice to be here first with my favorite show so this is very early only for me oh fantastic all right well michel you are paying salaries in a bit coy and apathy to peace foundation we've been talking about it going tell us more well you know there's a few things that we like to go but. the first thing is. you know we called the socialists over in currencies which is no created. and it's not created by the by the state it's who really exists because there's a human community you know the hacker community to the korean 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 you know for both was fairly in currency you know the we

used to have local currencies then the nation state came in and basically destroyed them and so the fact that 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 which is it's that this free money and you know as you know a compound interest is a mathematical mathematical and physical you know a. nation that just really destroys the planet 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 already and then finally more pragmatic lee you know we are we consider ourselves a feel a or a fire know which the sake community support to its business and to price

and when you work like this with people you call on the inverse alone i mean i'm so down on me trying my and different place in the world you know the ability to change money in different currencies to be current it has a core dramatic effect on transaction costs he said it's really amazing so this is car care a bit of a paramedic. thanks now i'm michele many react with great house deloraine to head to bed coin or the mere idea and these are people who normally might be supportive of dollars over for example which shares many of the same characteristics why do you think people are hostile toward a point well you know there is a big debate that i guess amongst the monetary people go do you know their money should stand for something right so people hate money and it's any kind of money which is not linked to something real then there's actually in actual fact your

money has being virtual scene the police the seventy's and the 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 decided first 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 mean are not an expression of food to just their particular aspect but i think the key for me is how it's created it's through a protocol which is first of the 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 snow is spreading out service that has a parental use. this is significant because before that we had many many local currencies and they were with it on scale i mean you know you have time bearings of this you know they've been existing for thirty years they're moving there they're being created everywhere you know who's trying to transition from movement or another to another woman's believe don't scale then be scoring skills that's what's

amazing a book right well the idea of it being tied to electricity would be able to be 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 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 repellent against mccain or the the onerous quality of it so it is backed by this cryptography of which there is a limited it is a scarcity it is a cruise care city there is a case scarcity of bed points and this drives at the end of the day value whereas all the central banks have a commercial banks every time they have a bill do they just pay 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 their burrows 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 the increase is compound 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 that we can't because you know there's a law that says if you share information you're good that year then it's really essential that we have a system doctors those two things their own so. you know lou limiting our economic growth somebody the earth can regenerate. and the other part is make solutions globally available you know i used to work in the oil industry. what

with 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 both of them brought the companies up to the basin shelf there and now we lost thirty years of development so we needed to have already turned global warming and so this is what i mean by artificial scarcity and you know the punitive here paradigm that i'm working on with many other people is basically about this create a system where sharing used free and the economy takes kind of externalities see it's responsible for what it does to the planet so this is kind of an alternative model where these sickness you know these these sort of basic. cancer is kind of like transforming into his office it's so rich ignition.

and recognition sherry you know even resources can be shared a look at so why should you make of 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 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 it 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 we talked about copyright and copyright law he said it was an artificial scarcity and you couldn't really apply private 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 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 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 it's in hollywood basically we earn new movie making damaged. money industrial production right i mean there are real profits of his not industrial production and intellectual property so from the

point of view united states and its me 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 at those prices and so if you want to do that you need to arrest 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 it's this assumption that the resources are infinite means test two way to compete is to produce more of a good so you bring down the price of good use if you're out compete oh there's an prices going down but you know he understand a lot of it is making more competitive now as we go and.

the society which is marred by abundance of energy and resources to one that is where is the missing that's not going to work anymore so we need to move from you can always of school to economics of scale. from scale to scope so the cone cost of producing something needs to go down and this is where peepers action does really 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 can speed is a car that was for use in tree months by its own tears competing for x. prize. 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 scales are from one so this is the kind of economy you need

in the future right so the image you know parties shared the the designs can be done moving in the whole world and then you have companies making them both on the man printing on demand making of the maps and this is what appears to be a stance towards the swedish where the culture of the science already shared and the. the making is done in this if you have factories and then interest where because it's comes in right you have this huge machinery three d. printing person fabricators multi machines c.n.c. milling machines in these micro factories you have these share design depositories like paying your verse and then you can get money here distributed fashion for social lending and cross funding and then you can pay with this included 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 piece pieces of puzzles which are separate are starting to come together we're seeing this if you have patterns. emerging is resealed a human endeavor and part of the this is you don't know me this she was funding this review manufacturing this if you don't know it's creation all these things are . also in you civilization and you economics and you society ok so it's a pay to play around a stance and well balanced 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 a path so k. with you thanks for being on the kaiser report tremendously owner then yes i do hope that we can talk again and that's going to do it for this edition of the kaiser report with me max kaiser and stacey herbert our thank my guest michelle balance of the p.t.p. foundation is going to send me an e-mail place to sell at kaiser report r t t v are

you and i like like my father saying by all.