and as has collapsed the banks have got the runs currencies gone fricken crazy equity markets are high as a kite. that talent for doing a bad side while capital markets. killed over policymakers are so stuck on stupid they need to be injected. they need to walk the plank not to not to quit as far as i'm concerned by barbara phones in baxter's now how about we just hit reset or let's talk to the smartest woman in london today stacy herbert. max everybody is denying that they are like cyprus malta's denying they're like cyprus luxembourg is denying they're like cyprus italy is spain portugal is france's everybody saying we're not like cyprus so of course those are all european nations i want to turn to america where they merican dream is always held some sort of hope for europeans when their system is collapsing they often flee to america.

so the first headline i have on the state of the american dream today s a c s cohen biased one hundred fifty five million dollar picasa after settling trading probe steven a cohen whose s a c capital just settled two insider trading lawsuits with the government for six hundred sixteen million dollars has bought himself a gift picasso's low rev for one hundred fifty five million dollars the most ever spent by an american yet well this is great because you have a money ponzi scheme this guy steve cohen breaks the law just going to the bathroom everyone in the industry knows it is he's a huge percentage of volume of the new york stock exchange he feeds a lot of those hungry brokers a j.p. morgan goldman who they feed and fish every day of the legal trading but he's got a lot of money in his pocket and he has to convert it into something that won't crash when the bubble he's inflating crashes so he buys

a picasso some people buy gold silver bitcoin things that have intrinsic value real value and he's smart in that he's parking the money he steals and let me say i'm using this word literally steals as an eric holder would prosecute him if eric holder wasn't in stevie cohen's pocket looking as one talks he puts that money into something that's going to maintain its value i salute you stevie cohen of all the terrorists out there you are the primo de la donna primo terrorist you're doing a fantastic job ok but i want to compare this to the american dream why it is like the dream it's called the dream read. picasso's now he was that he bought it from steve wynn the vegas casino magnate and he was due to buy a few years ago in two thousand and six for one hundred thirty nine million dollars which is sixteen million less than one hundred fifty five million isn't well what happened to that sale with steve wynn accidently elbowed the painting ruining it

so he couldn't conclude that sale when received a forty five million dollars insurance payout to fix it and now he has sold it for more now that is damaged it's not perfect he sold it for more so in america we have a broken american dream we have a broken elbow the markets have been elbowed they've been elbowed they've been elbowed and yet just like this painting in the dream the dream keeps on selling for a higher higher price nominal price that's a ponzi scheme of it like this that's the definition of a ponzi scheme that's how it works it doesn't there is no value it's just more suckers in this case the people of cyprus the way the global banking system is connected these days the people of cyprus who had their money stolen a part of that money not all that but a part of that money ends up going into the the inflated price of this because so because you've got guys like stevie cohen who are the trolls or the bridge of the global banking system i've got co-opted the entire legal system and the banking system who are able to access money from the central banks at less than zero

percent while the central banks to the commercial banks affiliates are charging people twenty percent thirty percent forty percent it's interest rate apartheid so get used to it let's look at what another hedge fund manager was on reddit dot com he's a hedge fund manager and provides economic analysis to bloomberg t.v. and huffington post his name is neil grossman and he did this read it and i've found it interesting about this american dream that i said like. the picasso is elbowed elbowed elbowed is smashed it's ruined it's theirs maybe somebody repaired it but it's not really the real thing so first of all the title of his piece was called about how your grandparents are stealing your money. by paying for benefits you won't be getting so here's a hedge from energy or saying it's your little granny who's stealing your money from social security and government deficits it's not the hedge fund managers it's

not the stevie cohen's of the world it's not the lloyd blankfein to the world it's not the jamie diamonds of the world it's your little granny and no wonder so many american children killed their great grandparents hi neal mackie one six zero four asked i assume social security won't be around for me in the current form when i retire in thirty years what should i be doing now to replace that income no grossman responds it means you need to provide more for yourself i.e. more saving and less consumption although the federal reserve once you to do the opposite and probably that you will have to work past sixty seven so he wants you to save more in the same banks where they're now confiscating funds right you're saving money in banks or confiscating funds or you're saving to go against what paul krugman and the keynesians would talk about including david mcwilliams up there in dublin the paradox of savings that my income is your spending your spending is my income and there's

a beautiful curve cartesian relationship between these two things according to our theories however they never incorporate into their theories of fact that banks are just stealing money out of people's bank accounts they're victimizing their scapegoating little old ladies so little old ladies are the scapegoats for this poll grown to feed the stevie cohen's of the world and then get all puffed up saying look i own eric holder i don't barack obama i commit crime with impunity i don't have the bankers and it's those grannies fault that soylent green watch is put grannies in your urine findus burgers and your friend just goes on to replace granny with the horsemeat have a granny burger plus we've also covered the fact that these for one case which americans have been forced to save into their taking care of yourself don't let them don't rely on the government to take care of you we put those into. two for one case which are managed by. oh banks yes thanks for years and no wonder seventy five percent of people now about to retire these are people within a year or two of retirement have less than thirty thousand dollars in their account

so this is what he wants you to put your money into one of these sort of savings account don't rely on social security. rely on these sort of savings account that you can get from a banker right and i don't think it's a coincidence that in this mess of banker fraud banker terrorism has come really the bitcoins solution which is offering people a way to resist the occupation by the baxter's and this is why you're going to see it becoming continue to be adopted and this is part of the whole plan by the likes of the peterson institute which have been going across america telling people to get rid of social security give us your money and it's a controlled demolition of your savings account we know peterson. is not that guy again oh my god there's a nigga every ten years this guy pops up i remember him from the eighty's he's a charlatan he's a shark he's a he's my god i think these out of jail so let's go back to this read it in which

society group asks neil grossman i'm thirty got out of college and can't find a job anywhere what's the deal neil grossman says you might consider a career change so here we have all these students with debt and now as we max said at the opening of the show it's time to hit reset because you're begging people like a hedge fund manager neil grossman neil what do i do how do i get a job and he's just telling you sucker go go do something else shine my shoes because that's all that's available to you so however if we hit the egypt but and get rid of those banks toure's forced our governments either out of office or force them to arrest the likes of stevie cohen not let him get away with paying a six hundred sixteen million dollar fine for insider trading so that he can then go on and buy a destroyed dream and then make that like he celebrate tory for him let's get rid of the financial life system and start over well you know well i mean i my the

cute for me that all was lost was when eric holder a few turning general crawled under his desk and said i'm going powerless to. secu crime but there are ways around this we have bitcoin you can create our own currency systems outside of the central banks we can use gold and silver for our savings outside of the banks but they confiscate our savings we can create our own economies you know part of the problem is that the likes of months santo and these mega corporations a wal-mart do have a lot of power to force you out of business but we have to come up with alternative ways where we can escape these oligarchs and monopolies because a less we get a teddy roosevelt who bust up these cartels bust up the banks bust up all these things keeping us from flourishing then where you know we either have say ok we'll grossman stevie cohen what do i do for a job can i shine your shoes or there was stockholm syndrome you know they fall in love with their captor and they enjoy being in prison and having lost all their

liberty all that the but the but don't cling to their guns as if that's meaningful in some way and then finally even if he gets the job because this is where that if we don't do all these things i suggested to hit reset hitty jack to get rid of the politicians and the banks toure's and the monopolist that control our economies income growth for bottom ninety percent in america since one thousand nine hundred sixty six is dot dot dot fifty nine dollars. so michael krieger starts out remember we got off the gold standard in one nine hundred seventy one after which the federal reserve could print as much as they wanted and distribute it wherever they wanted and they have david cay johnston points out that between one thousand nine hundred eighty and two thousand and five more than eighty percent of the total increase in income went to the top one percent of american households the vast majority averaged a mere fifty nine dollars more in two thousand and eleven than in one thousand sixty six so that's the point as well as that unless you're engaged in insider trading and can pay the small fines of six hundred sixteen million dollars you're

in a no win situation where you're the only jobs available are every declining because you're working more and more and more and more of your wage and productivity growth is going to the likes of these hedge fund managers who are insider trading paying to pay off their fines and buy their broken dream artwork and one percent of financial assets including the stock market is own by the bottom eighty percent in america less than five percent less than five percent so when they pump up the bubble in the stock market these other bubbles there's not just a patient by the vast majority eighty percent or more of the american public and once again i guess it's egypt they take more drugs i guess and help more pass falls on a lot of what you do over there whatever it is do more of it all right so you never thanks for being on the kaiser report thank you max it being checked. all right well sounds good stay tuned for the second half much much more.

you know sometimes you see a story and it's sick so you think you understand it and then you glimpse something else you sure see some other part of it and realize that everything you thought you knew you don't know i'm sorry look at pacific ocean. i mean so the no use city in europe i'm a host of the twenty fourteen winter olympics. see. thank you. so much. thank you. doctor. days it. makes common. to see it's so

true.

internationally and in the very heart of moscow. imax kaiser welcome back thanks time now to go to new zealand and talk to william lucas an entrepreneur alternative energy expert the inventor of computer based cash registers and today a real live bitcoin miner william uhc welcome to the kaiser report to be here max i want to get right into something you mentioned that buying bitcoin now supporting bitcoin now is similar to the campaign to crash j.p. morgan by silver talk a talk us through this bit coy story about you and it can be used as a medium of exchange but with the appropriate patient of software it can be used to make promises that if you could you could have a promise of a bit point in the future and not require any banking system at all it just be

totally distributed ok well let's talk about the crash j.p. morgan buy silver campaign because the idea there was that j.p. morgan was short billions of ounces of silver if you took physical delivery of silver you would force them to cover their shorts and impair their balance sheet and blow them to smithereens now the issue there is that j.p. morgan because of the corruption between them and the u.s. government and their ninety trillion derivatives off balance sheet pile of debts and other flora and fauna of financial chicane. they're able to simply sell silver short sell silver naked short in the silver market in the silver futures market and put a lid or a ceiling on silver so reading trouble breaking through that civil ceiling however with bitcoin sense j.p. morgan zavala says the government's not involved everything we see in the world is going wrong is now being reflected in big going going higher your thoughts. yes well as soon as. the two after set of the man deposits on the back of the big

calling the big boys last played in value to about seven point two trillion dollars which is equal to all the currency in existence and that's why because of the ease of mobility of those currencies of this coin currency it'll be preferred over the others right so the current market cap if you will a bit go and they number because in circulation times the current price is roughly a billion dollars but there is a case to be made and rick fox vignette in stockholm of course founder of the sweetest pirate party the first pirate party in the world has made the suggestion that bitcoin could capture between one and ten percent of global forex exchange business which would imply a price a bit going between one hundred thousand to a million per bit going from the current price in the eighty to ninety level is that when you concur with that oh i think it's around seven hundred thousand and that that equals the amount of money in circulation and that's basically where the

it'll only take two and a half percent of the man deposits in the world and so i think people will looking at cyprus and looking at other things that are happening around the world well look at this is an insurance policy to put two and a half percentage point and basically the currency can go away they don't over ok now william ok as i introduce you are in fact one of those people out there that are mining bitcoin and this is a topic that's rarely talked about because it's complicated it's highly technical and i was wondering if you can tell us and a simple about or possible what that means when you're mining bitcoin. well over doing is we're doing a proof of work and by doing the proof of work we're actually helping keep the table the block i disabled up to speed but you're primarily looking through our special kinds of numbers that have the kind of properties the supposed to not the

motors that you need to have in order to make they have the same property currency so it's it uses cryptography to secure to make things counterfeit proof so at the moment every ten minutes twenty five new bitcoins come into existence that number has halved recently used to be fifty bitcoins every ten minutes and then that number will have again and will continue to have going forward until the maximum number have been created twenty one million and then that's it for the total circulation of bitcoin and so there therefore by that notion alone it is completely against anyone's definition of a ponzi scheme because there is a definite number there's a finite number therefore it's not a ponzi scheme your thoughts not a five to scheme at all because it's creating value by stripping the total volume of it one of the other things that people don't really realize is that the smallest unit the base going to have it one is actually

a group of numbers and they can be subdivided into one hundred million pieces so even the seven hundred thousand dollars associate which is the smallest unit is going to be less than one percent right so for ease of use going forward this is what economists would call or what aristotle referred to as fungibility you can divide a dollar in two hundred pennies you can divide a big going into one hundred thousand sub bitcoins orissa toshi and therefore you can still use it to make purchases of a nickel or ten cents or twenty five cents so it fulfills all of our saw dl's for characteristics of sound money is fungible it's durable it's as intrinsic value i would our. argue and it's sustainable so going forward. when does the tipping point race for bitcoin where she's a certain amount of public acceptance and we're in a new world where bitcoin is suddenly realised that it is in fact

the potentially world reserve currency the only thing keeping people out of it client well are two things i guess complexity that software is going to handle that and the other is perceived risk and as the banking system gets more risky people will really be willing to take that risk what they need to know is that no matter what the price if you're if the price is under about a million dollars they should at least to have percent of their liquid holdings and bitcoin as an insurance contract and if they did that it would coincide with display all other currency now william. they have the implications for big going to politically are quite astounding because for example we have countries in the world today that are being subjected to economic blockades but going forward using bitcoin to bypass geopolitical blockades doesn't this completely change the

map gail politically going forward. yes just. puts the power back in the hands of individuals and removes you from us and so i control i believe that there's been a capital so i among the highest year of capital and that's why we have seen progress the way we should have the only thing that we've seen progress and are areas that control large or larger groups of people like the internet that has been sort of hijacked by pirates to liberate people and so does the will happen with bitcoin as well let's talk about i want to stop in to talk about this i think the internet itself fifteen years ago ten years ago it was a wide open completely for a corporations had figured it out yet the government didn't know what the heck was going on here we are in their twenty's thirteen governments clearly have influence on the internet governments are using the internet they're using facebook they're

using these other outlets for spying on people so the internet as it was now fifteen years ago has been compromised my question is is there still another of the internet alive and free today to get us through this harsh penalty of government occupation by financial terrorist to get us through to the other side is there enough of this internet still available on the free bandwidth to support this bitcoin going forward are we going to make it william move to the promised land of a free society with a free currency your thoughts i realized a bit of a philosophical question was if you have any thoughts the developments are in any technology and the technocrats or the technologists sort of for status. they are is. internet protocol but then it evolves down into what's known as mesh net where you don't need simple switches you have enough capacity in each handset for each laptop just like with nearest neighbors and enough bandwidth between.

neighbors and up computing capacity to pass messages back and forth without any simple control at all so that met so the internet is still under technical development and continue to be on the technical go for the next ten years and it will make sense of control no matter what they try to do so to lay off the lead on the other side we have financed bitcoin is the is the opening shot but it's not the final word by by a long shot and you know there are technologies i've been working on a few of those and over the next twelve eighteen months once this quarter reaches critical mass you will see banks will no longer be needed for anything and then the third level is self replicating machine systems or three d. printers that will continue to grow and over the next twenty four to thirty six months it will make all major simple life factories softly and so people will be able to share information and build things and data points will be able to break

through a lot of jam you know with the energy of the and the scarcity the artificial scarcity that's built into the system yeah i wanted to touch on that because this is something that you do a lot of work on in the energy related field and i wanted to get your thoughts on the idea of peak oil or you know people have mentioned that all the keep the cheapest oil has been already exploited and now the cost of getting energy resources oil resources as now becoming extraordinarily expensive whether it's the tar sands or offshore drilling etc so the return on dollars spent getting that oil is dropping pretty sharply tell us where we are in the peak oil scenario we're past the p. eight which is why the wiseguys of the tot have stopped investing in industrial economies started to dingoes industrial economies like there were thirty countries

when you invest in a growth in an. tommy that had no fuel supply to the support that broke and they've known this and this has been back since two thousand a you know they tried to have this flame downward line before people never had enough money in the system in the first place to make a difference and then spend stories about that but the but the bottom line is one of oil that greases a certain price and that in certain bill ability end up in an industrial economy doesn't make sense you have to start killing people and reducing population if you want to maintain your artificial scarcity and i think it is leo strauss who is the director of the atomic energy commission when he was asked about hubbard's curve after he gave a thought he said by nine hundred seventy energy would be too cheap to meter they fired him almost immediately but they never really wanted to live that and there's also been discredited he's been sort of discredited in the year said if you look at it he has some very simple analysis there's

a thing called stephens bolt on which thoughts about the cost of something versus temperature and we had temperature high temperature reactors that were safer than anything we ever built but it's all been hidden by the military industrial complex but we we could have built a massive quantum ounce of energy into many rosy scenarios in the eighty's not only postulated better computers but very low cost free energy. a supply of energy the dynamics of energy the connection between energy and the government stablish rent as broken down to a large degree a and so again going forward with things like three d. printing bitcoin and other solutions if forms what i think of as like the resistance during it in france during their ing the occupation you know there was still enough there to survive and make it to the other side post occupation we can see a throw steve keen and one of your fellow australians and we appreciate that a great deal i assume going forward are going to continue doing

a lot of work on bitcoin. rect yes the minute the software packages wonderful and we had a few only an accurate econometric model of the world and with our supercomputer we're also going to balance you know be able to model the world and make it up publicly available and so when the people you all do have more on with also have more knowledge all right william look thanks so much for being on the kaiser report we'll check in with you again soon. and that's going to do it for this edition of the kaiser report with me max kaiser and the wonderful stacy herbert my guest william look if you want to send me an e-mail please do so at kaiser reported r t t v are you until next time x. guys are saying bye hell.

this is trash to get rid of. it's also a treasure. worth fighting for. and the trap was no way. to do.

name. the international airport.