you're watching on c's great how do you look at the headlines. the massacres blames almost terrorist groups or has caused some violence ahead of the seaside deadline while the ground condensed here and also which is the purpose of the tides process thousands of president assad suppose his rally in the cotswolds mocking the routing policies six tickets sent us. said bahrain six and she falls upon down on protests is firing tear gas and water cannons at the crowds in washington will announce a government assets to mind his phrasing of life sentence has been

a hunger strike the two months not just being treated in the true cost of. the last elections to march the bad knowledges out declared military leaders step down in the face of international pressure only two weeks after seizing power on the greeks who attended country to institutional won't return the nations of west african neighbors promise to leave trade guns and browns honesty to them by the tree trunks . up next moxon stace expose the dark side behind the global financial headlines in the kaiser report. there's a cause a report there is a new global currency rising stacy kaiser bitcoin the city traders and market new toy financials raiders have a new toy because in 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 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 brad cohen for awhile 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 say been coined in 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 is speculating and big point but remember there are no bailouts available for there and they talk about because it is becomes a wild west of finance with the proliferation of websites offering loosely

regulated replicas of the service is familiar to those in the financial industry perhaps the most notorious is. a platform offering margin trading short selling in stock borders run by a seventeen year old chinese high school student zoo tongue users can leverage their bets 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 quieted to speaking of the ninety's it's very familiar to big kid 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 and 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 now you match that up against let's say the protesters of occupy wall street and i would make my bed with those who tongue 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 they they sell into the marketplace counterfeit credit default swaps to manipulate prices this is 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 jamie diamond or 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 point is not backed by anything that's false whoever said that is an idiot big point is backed by krypton. graffiti which gives it a legitimate saying which gives it sound. the us dollar. truly is backed by nothing because any time america needs to pay its bills for foreign creditors it's 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 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 in one hundred seventy one so here's a currency of 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 try to do toll on the seventeen year old creator of good coinage 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.c. 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 max this whole series was about the fact that j.p. morgan just very similar to the foreclosure crisis was selling on so-called bad debts from j.p. morgan chase credit cards but in fact they had none of the paperwork they just sent it on to you know kneecapped hours and debt collector. who were very aggressive chasing people who had actually paid in many times their deaths because of the hate crimes they hate you jayme they hate you because you've destroyed 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 bankruptcy and laughed about it so keep that in mind ok it's not banks if you we hate you jamie you you your family

everyone who's 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 dimon it's like a verbal far in the elevator and everybody was left with his stake in there you know having to deal with his. self pity but 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 the 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 jamie diamond j.p. morgan chase says it's charged some accounts debit cards twice j.p. morgan chase apparently double charge them debit cards so it's actual cash it's not credit and they blamed a computer glitch well that's the new repos scam remember lehman brothers a repub one of the little pet banks they had on their side from

a cold nettie to the over i borrowing from and these are three words on this overnight commercial paper repo market so jamie diamond the banker of the individual that people hate he's figured out you know what let's just debit a bunch of credit cards over and i will take that as a repro will roll over some commercial credit 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 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 end of 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 a.p. morgan the bank is expected to settle the lehman matter 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 issues that has been a forefront of the recent outcry over m.f. global kiki moore who 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. they still money in this scandal they still mighty pretty much is the modus operandi of the bank there are thieves there are thieves jamie diamond is a thief the trading commission is expected to accuse jacob morgan of over extending credit to lehman for two years leading up to his bankruptcy in two thousand and eight using an inaccurate evaluation of lehman's worth improperly counting lehman's customer money as belonging to the firm under federal law firms are now allowed to use customer money to secure or extend credit the arrangement worked well for both parties lehman wanted a larger loan and suggested counting money from the customer account to justify it j.p. morgan complied counting the money as part of lehman's coffers it is unclear whether

j.p. morgan knew the money belonged to clients but in the view of regulators it should have the customer funds were kept at j.p. morgan account the funds belong to investors trading and the futures market so max we saw the same situation in m.f. global where m.f. global's accounts and their customer accounts were held at j.p. morgan the same with lehman brothers the same with their story and 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 a central bank level they could simply release more funds and to cover the criminality you know paper over there could be criminality besides the credit collapse of two thousand and eight. it's hard to do that so we see now the in the foreground when when morgan diamond or 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 history so you can see the hand of gaming going into people's accounts and stealing the money so you lose your funds there you are jamie diamond jefferson county. the was a 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 the s.t.c. issue little kind of finds big deal and jamie diamond continues to far in elevators around the legend joe says there's a lot of you hate bankers why you have bankers new york times 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 there's a man you should be in the elevator at the new york times that you support cancer so let's look at the spinal headline here max because i want to say how do we address this issue where never can we ever touch these and 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 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 on wall street in the city of london is that of control because there is no adequate deterrent since glass steagall itself in china as we've heard the chinese when they find bankers that are stealing they have the state executes them so

that's one thing china gets our eyes glaze over those of us being a reporter thank you max going away much more coming away to stay right there. the. director's culture of real life in prison on charges. that i am my fries are welcome back to the kaiser

a part time now to go to shanghai thailand to speak with michelle ballons of the p.d.p. foundation but he also writes for al-jazeera michelle welcome to the kaiser report so it's really nice to be here it's actually my favorite show so this is. really only for me oh fantastic all right well michel you are paying salaries and bit coin at the p.d.p. foundation we've been talking about that call and tell us more well you know there's a few things that we like to go to. the first thing is you know we call this so sleep over in currency so it's a currency which is not created by the banks. and he's not created by by the state he's really exists because there's a human community you know the hacker community to be calling community wish once this to work and trust the protocol is designed to create some money so this is a kind of historical moment 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 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 we should this is that this free money and you know as you know a compound interest is a myth and a mathematical and physical you know a. nation distributed the price of planets and so to have a currency with a fixed amount does create debt free is also really really important and i do think it functions as a global reserve currency 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 so important it's business enterprise and when you work like us with

people even call on the inverse alone i mean i'm still trying 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 is to is truly amazing so this is car market to be the very magic. extra now michel many react with great house tell of a kid to bed coins or the mere idea and these are people who normally might be supportive of gold or silver provera board which points shares many of the same characteristics why do you think people are hostile toward good point well you know there is a big debate i guess amongst the monetary people you know the money should stand for something right so people hate fear money and it's any kind of money which is not linked to to something real then there's actually in actual fact you know money

has being virtual since at least the seventy's and the korean is kind of like putting these in front of you for a strike and the only reason this money exists is because a group of people decided to trust no i know some people them collator you know it's legal 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 chose their particular aspects but i think the key for me is how it's created it's through protocol which it first are very community this is the key i think everything else is more more detail in the fact that it exists that it's already working within the community it's not expecting outside of it that has a practical use. this is significant because before that we had many many local currencies and they were they don't scare me you know you know find bearings unless you know they're been existing for thirty years they're moving there they're being created everywhere you know who's going to positions on movement in another you

know who wins really don't scale and the scoring scales that's what's amazing a book about it right well the idea of it being tied to electricity would be a little bit like saying that a price of a euro or a dollar is tied in a price of paper it's not really a practical argument per se but with big 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 into the the onerous quality of it so it is backed by this cryptography i wish there is a limited it is a scarcity it is a crisp air city there is a curious scarcity of bad coins and this drives at the end of the day value whereas all the central banks that are commercial banks every time they have a bill do they just print more of their 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 this furnace and you see this race of humans actually destroying your car is 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 you know the features we have to grow all the time and you know the increases come from so 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't because you know there is a law that says if you share information you go sincere then it's really essential that we have a systems of two of those two things around so. you know lou let me think how our economic growth throughout the earth can regenerate. and the other part is

make solutions globally available you know i used to work in the your industry. well with other early ninety's and you know in the seventy's where the three rising renewable energy. industry in california you know what happened you know they bought that they bought the companies up to the basin shelf and we lost thirty years of development we would have needed to have or 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 about this created a system where sharing history and the economy takes count of externalities he's responsible for what he does to the planets so this is kind of 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 that sherry you know even if you resources can be shared a little cool so why should you make this proven 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 put earth could possibly run out of natural resources even though the the the evidence is banging them in the head like a frying pan every single day and then you have the artificial scarcity and this of course is what milton friedman i mentioned when talked 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 if you see that the united states government is acting on

behalf of those who wind 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 today 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 the sickly. her new movie making that much. money industrial production right i mean the real profit is not industrial production it's an intellectual property so from the point

of view 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 at four hundred fifty dollars in the west and 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 repress an 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's meant to resource our ethan it means that the way to compete is to produce more of a good so you bring down the price of what you said you're all compete well there's an prices going down but you know you understand the logic is making more

competitive now as we go and. a society which is marred by abundance of energy and resources to one that is where is diminishing the rest of the work anymore so we need to move from economies of scope to economical skater from scale to scope so that 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 speak with the spirit is a car that was for use in treatments by volunteers competing for x. prize. is so one hundred million early one hundred mpg. car. call not security certificates and he can be made in a microphone three in europe or out so the skaters are 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 own the man premium demand making of the maps and this is what people can piece ten stories this week where the culture into science already shares and the. the making he's done in this if you have factories and then you know that's where because next comes in right you have this huge machinery three d. printing personal furry caterers multi machines c.n.c. milling machines in these micro factories you have these share design depositories like the new verse and then you can get money is distributed fashions who are social and they can cross something and then you can be within this intuitive currency which is produced in a peer to peer way you know if you have

a computer you can produce because. so i wasn't trying to the point i'm trying to make is that these pieces of personals which are separate are starting to come together we're seeing this intuitive patterns. emerging in if we feel human endeavor and the scars on me this abuse from doing this review the manufacturing this idiot and all its creation all these things are to use the way all the new civilization and you economics and you society ok so it's ok to play around a psalms and sell 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 i'm tremendously honored. 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 our 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 at all like i'm back patting by all.

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