that doesn't for mail for more of the stories we've covered go to youtube dot com slash r t america had a great night. well with. technology innovation all the developments around russia. the future are covered. wealthy british style. is no time. for.

markets why not this scandal. find out what's really happening to the global economy with max kaiser for a no holds barred look at the global financial headlines tune into kinds a report on our.

good afternoon and welcome to prime interest i'm perry and boring here in washington d.c. and here's the story that i'm keeping up with today. bubbles bubbles everywhere financial markets are becoming too buoyant according to some members of the federal open market committee as expressed in today's f.o. m c minutes it seems junk bonds are on the rise as investors are chasing yields beyond the zero point two percent offered by their local banks but wasn't that the point mr chairman careful what you wish for and speaking of chairman bernanke you spoke today in front of congress it didn't take much to move the market when he softball the possibility of so-called tapering later in the year this would be the

much anticipated wind down of quantitative easing and the final act of coogee for the day was a john hilton raspiness the fed spokesman wall street journal reporter it did a one hundred eighty from his prior views just a couple weeks ago previously he said the fed had mapped out a strategy for the mystical tapering process well today you simply stated the process will not be predictable great job after twelve speech is one major f o m c really used and at the w.s.j. planted story the markets are thoroughly confused and finally after temko is testimony on the hill yesterday much talk has been made about the viability of apple's tax strategy and investors in apple's recent seventeen billion dollar bond offering are fueling a bit of pain these bonds were part of the apple strategy to pay existing stocks investors dividends without tapping into apple's substantial cash holdings offshore which is a taxable event the bonds have lost two hundred eighty one million dollars in being

issued by us money for the maker of the i phone or mains com but it confident it will keep its ability to maneuver along international borders as it sees fit let's get to was in your prime interest. as we've been talking a lot about bitcoins recently i wanted to take a step back and break it down big for those who aren't familiar now cryptography has a long storied history although accounts of the first use are varied the ancient greeks and spartans were said to use a simple scroll like cipher to send and receive messages during military campaigns

more than a thousand years later an arab mathematician made considerable advances which would not be fundamentally surpass until world war two twelve hundred years later now with the rise of the internet cryptography made its way into everything from bank account transactions to security e-mail but it wasn't until recently that cryptography would make its way into what we know as money now enter into the world of declines in two thousand and eight the tashi nakamoto an anonymous person or possibly persons first described a peer to peer electronic cash system and this became the basis of big coins which are a decentralized digital currency that enables payments without the need for central authorities and issuers beautiful right most currencies and the modern air are based meaning that they are not backed by a commodity but they are declared to be legal tender by a government that means that you can use them to settle debts pay for goods and services and pay your taxes are not backed by any central authority or even

a commodity their value assembling determined by mutual exchange and you may wonder how you get coins for people willing to use their computers and pay to run the electricity even. you can earn a newly minted coins this is done according to a complex algorithm that verifies bitcoin transactions called. how can attempt to overrun the resulting transaction but as long as there are enough honest users in the system the big currency remains sound now the computation becomes more and more difficult over time so the rate of which the number of big coins are issued slows down eventually they'll be twenty one million that computed into existence today there's only about eleven point five that have already been mined. but you don't have to mine koreans to get them you can convert dollars euros and even gold into big coins via the exchanges now this is been a source of recent controversy as the largest exchange mt gox one of its major bank

accounts frozen by department of homeland security it was alleged that the exchange are not properly registered as a money transfer agent however there are other exchanges that are biting by federal rules and guidelines this is just a really costly process now the remaining risk of big coins is price volatility here we see a char a big coins a price to any u.s. dollars as you can see the price steadily rose from just over twenty dollars at the beginning of the year to two hundred forty dollars and april and then just before it crashing down to sixty five dollars a week later since then prices pretty much stabled out from price volatility it's regulatory burdens bitcoins are facing a lot of headwinds but it looks like they're here to stay even the feds are starting to get in on the action and. we as we can no longer say that big koans are being ignored and that's the breakdown.

as i'm sure you're aware at this point prime mentions producer bob inglis and i traveled to the big conference in san jose california over the weekend and we got a chance to speak to many of the movers and shakers in the upcoming cryptocurrency round now bob and are viewed chris larson who is the c.e.o. and co-founder of open coin which is developing repl bob asked chris to describe what exactly rival is and here are his comments. point is the a for profit company it's a typical silicon valley structured company and it is responsible for building the software that that is the ripple network so way to look at it sort of the ripple

network is analogous to the bitcoin network to the big point protocol in that it's it's an open protocol it's a distributed system and that system is really what determines both the currency that we've created as well as the payment network so where we're excited about it we think this math we call the math based currency movement we think it's it could be the biggest game game changer in finance since the internet was was created and what we're really trying to create is a second generation. korea seeing the incredible success of it and then maybe trying to iterate some additional improvements to some things that we think could be made better in this and what might be some of those improvements so a couple of things first we want to desist and to be viewed as a payment system first so we kind of view the currency is supporting a new global free irreversible payment system that's open to everybody rather than

the other way around sometimes we serve you because it is a payment system that supports a currency and now they're actually. tied together tremendously but when we look at building a new currency we think you need three things you need trust you till the end liquidity the trust part i think it is really the math based notion of a currency and that there is no central authority and it's not a company it's not a country nobody can debase it that's true of big corn and ripple these are fixed amount currencies they're deflationary currencies that people can trust the amount that exists that's the trust part but on the utility part that's where we think we we could add a lot because utility really comes to having a payment system that everybody can use so for example the payment system needs to be multi-currency so. the structure that we've built to solve the double spend problem which all math based currencies have to solve that point does it with binding ripple does it with something called consensus it's basically a global ledger. everybody shares the ledger and then there's

a process of consensus which is what solves that i will spend problem that structure allows us to have any currency in our payment system including get coin dollars euro yeah and roubles anything can be in what is a latency of the consensus system and that's another key aspect we we thought that the confirmation times that you have in a mining system like bitcoins in decline we thought that you know e-commerce and payment systems. need to have a shorter period so in the in the consensus process of rip off the consensus happens in a matter of seconds so more analogous to what you'd see in traditional online payment systems but with the exception that interest in paper systems you still haven't settled so the beauty of going to coin a ripple is that you are irreversible so it's irreversible permanent light cash in a matter of seconds so that multi-currency the speed and then one final thing is just since we don't have mining all of the ripples are already created right there

and that's another important distinction between some of the other cryptocurrency is in yours and what do you see the advantages of that being you know it's a great great point so by doing away with mining as the solution to the double spend issue we can create all of the ripples in the global ledger from the beginning when we did that six months ago and now what we can do is basically give away. more than half of that would be giving about half of the ripples that we've created will go about fifty billion and why that's important is that they are getting going to utility they're going to trust you to allow you to put a date if you can get this new currency and therefore new payment system in the hands of tens of millions of people by giving it away you therefore create more utility because more people the network. and that is good for everybody so we think that again helps with the success of the overall network and then the final part is the liquidity part and when you talk about giving away fifty percent of what happens to the other fifty percent you know the other percent is what we're using

some of that for the company some of that for the original founders that will take the risk of being the creators of the currency so we want to search all the the open coin from sort of the being the creators of the currency that company really should be the software creator and should be promoting the network to constructive uses but pretty much that other percentage of the currency goes to higher you know the best engineering team of cryptographers and security experts and developers as well as promoting the network to make sure we have gateways globally which you know help put out those sounds like a regular business like you have cost and you have to be able to track money you have to pay your bills and that's really what this is going to do you know and i think that's the way we do look at we think an effort like this that we're really going to be changing in the world it is it's such a big endeavor and the consequences are so huge and so positive that it does need to have a well financed traditional you know kind of silicon valley structure we can have

options in the company the engineers can be incented that you can get new venture capital to invest we think that's critical and we've we've now been successful in getting google ventures id china entries and horowitz lightspeed ventures pick one opportunity fund. founders fund we think that's really necessary if we're really going to take this now from you know the the beautiful purist idea behind this to now how do you get the whole world thinking about this integration and that's kind of one of the criticisms over against it is that i guess big cohens is a grassroots movement people are really attached to it and maybe they see that as being too corporatist now or not necessary corporatists but the interest that it. generating in the business sector is really maybe crowding out some of the private enthusiasm for it it's a really interesting thing i think you see this type of a lot of technologies where you know you start out with an incredibly devoted

absolute true believers would do anything to see the movement succeed and there is absolutely necessary to get the you know the ideas flowing you get the best and brightest but how do you now make that jump to a global audience and i think that's where the math based currency movement is big and reports are right at that juncture right now you could see it in this conference it's kind of a teenager waiting to grow into men but you know six months ago you probably would have expected to come here and we've been a completely different track and what do you see today you see as many received as you do you know crypto experts it's fascinating so we are right in that moment and now where does it go from here and it's i mean the potential system trouble right now. and that was chris larsen co-founder and c.e.o. of open coin and prime interest producer. i've next i have interviewed with anthony for a politically incorrect artist then bob and i will talk about representative darrell i says the meeting with chairman bernanke.

calling the revolutionizing banking and finance for a nice political protest movement take your pick there is no doubt this virtual currency is being given a careful look on the back of the global financial crisis and the stranglehold big finance has over the economy having an alternative currency appears to face what is called the new economy. the worst year for the little. white house for the. radio guy. because you never seen anything like i'm cold. let me let me we're going to let me ask you a question. here on this network this one right on the plane we have our night

show. me the cites about staying there to get married at the rate we're going to talk about surveillance. evony frida is our next guest he is a very successful and award winning artist whose work has appeared in some of the most popular publications including rolling stone business week time playboy and the trends journal what drew me to him are his politically incorrect messages

behind his art he has a passion for anti-war issues and too big to fail corporations and he has a way of showing us what no one else wants to say so let's talk to the man himself and took a look at some of the things is. just using the dinosaurs a metaphor as they were they ruled the earth for millions of years and just like these bankers who are too big to fail ruling the earth right now. might not be around forever and it's the idea that i mean this i'm just an artist but if you're too big to fail maybe you should be made smaller and just a general idea behind it. as i'm saying have you followed any of the coming legislation better introduced a bill to big to jail and we've talked about a lot on the show have you had a chance to look at. a little bit but i'll believe real reform when i see it there's a lot of smoke and mirrors and a lot of rhetoric but these guys are still running the show are they still ruling

the world we're still at the mercy of all of them and we'll see. our next piece it's titled ben it was originally painted for the new yorker and it's the image of benjamin franklin from the hundred dollar bill with his mouth cut out so i'm assuming yours silencing who has silenced ben franklin. it's the idea the. idea of financial terrorism where. banks can hold us hostage right they did. you know they're in the credit crisis and. it's also alluding to the idea that we devaluation of the dollar and the. destruction of commies at large and. and a little to the destruction of freedom speech and the war on that and free markets as they all kind of. work together and are being worked against.

on your blog under this picture you stated that everybody knows that we've lost our way and america's future is bleak unless we reverse the damage that's been done by the interest that promote war and finance the war machine and according to a harvard university report iraq and afghanistan are going to cost us between four and six trillion dollars and there's certainly a lot of business around war and commerce around going to war you know who do you think are the injuries that are promoting what you've called the war machine. well i think eisenhower said it best in his farewell speech you know the he predicted the vietnam war which was basically a war for profit and there was no clear moral message there there was no real good guy or big guy there's no reason why we're there and it was a war waged by the military industrial complex as he called it for profit and these

concerns these multinationals have become and so entrenched and so powerful and they control congress they control. the media they control basically the whole narrative and the whole structure of our society and to our detriment and we paying this price and where. our priorities are skewed because we're being manipulated by their ideas of where we should allocate our resources do you think that the data is being incurred from going into these wars is going to enslave us. i do i think i mean you can't just keep kicking the can down the road and we have more pressing concerns than. starting preemptive wars and i think they're counterproductive i think the increased anti-americanism across the world and these are the messages i'm trying to get through in my or i

think they're important and. i think that a lot of people are waking up to these ideas which is a good thing. well the next picture we have is the ten met and i really like this piece because the wizard of oz was a great story behind money and the politics behind it and there was a vase a ten man represented the industrial workers who were thought to be dehumanized who represents the words and. this particular assignment was about our dependence on oil and. how. if we had that's. cut off we're kind of like a junkie addicted to oil and i contend then we will just rust and die and kind of alluding to the fact that we need to be looking for alternatives and the geopolitics of oil i think is obviously driven a lot of our foreign policy and warmongering across the world that can't be denied

and i think it's time for us to look at the bigger picture and look at towards the future and. more interesting and exciting technologies are out there we need to pursue those or we will wind up like this and that is to rust and. well let's hope not thank you so much this is what has anthony frida. to me now is bob inglis prime interest producer great to be here until we get to talk about the fed to absolutely be prime interest and we did and of course well starting off house oversight committee is starting to a grill its have been burning last week representative jim jordan and dare i say i had a meeting with the chairman this is following

a letter that they sent to the fed starting to subpoena documents regarding the fed's exit strategy there has been no word from the committee on what was talked about in the meeting that committee and the fed both declined to comment and maybe there is no exit strategy but i would point out that was one of the guys who was instrumental in getting some of the important documentation that we have from the fed's bailout g. and there was a lot of interesting information in there so i hope he's on the case again and we'll get something interesting for the chairman and his colleagues over at the fed i guess no comment is the comment exactly so also the f o m c minutes were. today and we take a look at some of the quotes and went through the feds and the first one and thank you to zero hedge for making our lives so easy as always they produced a version right after the minutes were released and here's a quote a number of participants expressed willingness to adjust the purchases downward as early as the june meeting this is just in two months but then the minutes also

stated most participants emphasized that it was important to be prepared to adjust the pace of its purchases up or down as needed so we might have the tightening as early as june or we might go up or we might go down with a nothing. that's a flat line. the next one participant cautioned that the emergence of financial balances could prove difficult for regulators to identify and address and that it would be appropriate to adjust monetary policy to help guard against risk to financial stability yeah so my guess is that charles evans may be i don't know or somebody who's closely aligned with and i think what they're getting that there is if we have more debt ceiling drama later in the year the fed is basically threatening that they're going to keep the foot on the gas pedal they're always there to step in and keep the pressure on keep question on that exactly well moving

on we promised yesterday to get to some comments bill dudley made an important speech and he is the new york fed president and if you want to take this you have the first quote it says our view is that asset purchases work primarily through the asset side of the balance sheet by transferring. from the private sector to the central bank balance sheet ok is that ok duration is basically the price sensitivity of say a bond to interest rate movements so if interest rates start going up the value of the bonds that you're holding are going to go down it's how fast we're going to down that go down that we're talking about here and he's basically talking about chasing. people into higher yielding assets when the fed maintains its near reserve that is zero interest rate policy but that's what they that's exactly all that is the goal that's the stated goal but is that going to stabilize the economy and that say well that's the theory i mean are we saying that right now is that we're going to see in the future we're going to wait and see my guess is no continuing on this

he said the fact that such purchases increase the amount of reserves in the banking system and the size of the monetary base is a byproduct not of the goal of these actually see this is the monetary base expansion that we've seen to what three trillion dollars an hour or whatever that's a bug not a feature that's not the purpose but coming down the pike we're going to have to deal with all this a lot of people look at price inflation which according to the official statistics is pretty flat right now and so what but when the banks start when the federal reserve has to start raising interest rates as we've been talking about it has to pay these banks more and more money higher percentage rate to keep all these excess reserves which are one point six trillion dollars in the system and that's where we could see the financial instability from the fed's action coming down the pike not necessarily right now but you don't think the federal reserve can just keep interest rates that's not forever infinity q.e. forever in japan's been two decades ok maybe they can maybe they can't i don't think they can all right now we have one last concrete announcement to make our

official favorite austan congressman is running for mayor i love the use of the word our who is. anthony weiner is running for the mayor of new orleans new york ok right here i would like the ones probably so he's a famous guy who went on twitter and whatnot and now he's running for mayor well i wish him luck good luck mr bringuier. well it's been a slightly been day on prime interest our beloved side chairman testified in congress and talk to risk assets up a wall of worry but it's tough. to frighten the bondholders when he said to

expect the unexpected but the fog was lifted in san jose when we discussed the future of the ripple current cryptocurrency network with lars that seems a mass based currency it's here to stay because we attempted to break down for our sophisticated viewers and artists and free to add me to the grim picture up too big to fail but we were nevertheless of lifted by the aesthetic undertones too bad we can't say the same for the morgans living well and it was an enlightening finish we hope as we explore in the first while the russian oil twitter is a reemergence in the politics good luck mr weener just keep your shirt on this time thanks for watching come back tomorrow and make sure you follow us on facebook at facebook dot com prime interest from all of us at prime interest i'm kerry i'm boring have a good evening. to

live on one hundred thirty three bucks a month for food i should try it because you know how fabulous and lucky. i mean. i know that i'm still really miss. the old really sort. of. the worst for the legal one down to the. minute. one. what we're about to give you never seen anything like that i'm telling . the tough guys and i mean martin running the brady bill sets i've got a packed show for you guys today but first love.