the headlines on our t.v. a long awaited reunion. meets his family in berlin after president putin pardons him on humanitarian grounds. plus the pentagon fails to account for an eight point five trillion dollar black hole in its budget as washington seems unable to rein in defense spending. egypt's ousted president mohamed morsi faces new charges this time over a twenty eleven jailbreak all the supporters of all ages are being thrown behind bars. you can get more on those stories r.t. dot com but for now it's max and stacy kaiser on the kaiser report to stay with us who watching our t.v. international.

welcome to the kaiser report i am max kaiser in a surprise move to many brazil has awarded a four point five billion dollar fighter jet contractors of sweet in it was expected to bed boeing would receive the contract but and i quote the n.s.a. problem ruined it for the americans a brazilian government source told reuters on condition of anonymity. anonymity those brazilians sure have a wacky sense of humor anyway the reason this is a problem is that new research suggests that humans descended from jellyfish more specifically the related warty see walnut a lot in this blog of blogs and blog and blog and there's warty seawall not lives

inside all of us but especially inside americans floating through the credit space seeking to soak up more debt to feed the pool of the ribs and fraud in which it floats and survives and whilst awarding america debt not can survive on very little real wealth creation it does need some real income to keep its pyramid of debt due from imploding especially these days of the fed trying to taper its ponzi and as weapons and hollywood are the only two sources of export income it appears this population of war you see walnuts may soon be going hungry stacey max yes saw the shares soared by over thirty percent on this news meaning that the markets had not yet priced in this collapsing us empire as a result of the n.s.a. spying scandal even though we have reported here for example that i.b.m. sales were collapsing and the likes of i.b.m. so this is part of that story and i think the reason why they hadn't priced didn't was because hollywood is still exporting this myth of. the american dream and the

american superpower there to protect you all i have said on marvel story and i understand what you're saying there that the there was a delay in terms of pricing in the fact that boeing and american corporations are being shunned around the world because of the n.s.a. infiltration of products with spying technology that renders these products worthless as far as being competitive you don't want your products competing with somebody who isn't affected your products with their spying technology it also speaks to how broken these markets are around the world so much of the price of stocks and bonds and currencies around the world is set by fraudsters using their algorithmic trading computer trading so it took a couple of days for stock to really discount the fact the american empire is crumbling that these spies software is a classic case of diminishing returns that there won't be the same kind of profits made by these corporations that have been made by these corporations and the only thing left the only game left in town really is predatory lending in

a war what you speak of diminishing returns and that's what we're going back to here because you mentioned at the opening that boeing one of the major export units of america is has lost its huge deal with brazil so let's look at this chart which is debt to g.d.p. this chart compares the level of gross domestic product g.d.p. with total credit market debt as reported in the federal reserve flow of funds report it took roughly one dollar and thirty cents in new debt to create one dollar of g.d.p. growth in one thousand nine hundred fifty two today it takes over three dollars and fifty cents in debt to generate a single dollar of additional g.d.p. so it's those diminishing returns and this is why it's so important that we're losing the last few remaining things and once we lose boeing and we can export the weapons you know how much longer will people even believe in these hollywood stories we've reported on this ratio before debt to g.d.p. growth the. going back to the one nine hundred fifty s.

it was almost one to one so merit there would issue some debt and they'd get some some kind of g.d.p. kick as a result of it but it requires more and more debt to quibble cape equivalent same g.d.p. dollar of growth and what we now have is clearly a case of zombie banks and zombie corporations that would not survive if they weren't being transfused with more debt continuously which means that good businesses are being crowded out by zombies and it also means that you've got a. total loss of competitiveness so this is the worst thing really that quantitative easing has done to america it's just reuters competitiveness now have the n.s.a. spying on top of it and again the only thing left are these blitter and quantitative easing moderating fear mongering really trolls whether it's john kerry going around the world threatening people or it's barack obama or it's jamie diamond they have nothing of to offer other than violence well we're all swimming in this

sea of debt goo right now let's look at how this debt do emerge and how it's diminishing returns you can see from generation to generation because we're seeing this in the news across the world right now they're reporting on how each generation thing is getting progressively worse last week reported about millennial is living in their parents' basement well that the baby boomers are also living in their parents' basement and the greatest generation i.e. the ones from you know world war two era of world war one world war two they're the ones that have the most wealth according to all these headlines i'm going to look at and let's look at the first one at sixty one she lives in basement while eighty seven year old dad travels eighty seven year old lou manchester has just returned from a three week trip touring buddhist temples and laos increasing the mekong delta vietnam his sixty one year old daughter lee lives year round in the basement of her friend's cape cod cottage venturing into the winter cold to get to the bathroom so they talk about the baby boomers from one. forty six thousand nine hundred sixty

four they were born and that there they have in median wealth eight percent less than their parents' generation had at the same time and now many are asking the question why well america doesn't have a sovereign wealth fund like norway or cutter or some other responsibly man as a country like that they simply blew their post world war two victory wealth on jockeys trinkets real estate speculation and drugs. well i think also if you look at it the gold standard domestically around the world was ended during the great depression the greatest generation and the wealthiest that was ended so we started our global debt ponzi scheme then that was the beginning of the ponzi scheme the first entrants into the ponzi scheme lo and behold they're the wealthiest the next generation then the baby boom generation was up until

the next severing the final final severing of the gold standard on international trade and do you notice that the further we get away from the gold standard the poor import you are and yet the media the hollywood myth that is exported around the world it mocks this sort of barbarous relic and this notion that we can have deflationary currencies are not controlled by a command and control central banker is that we keep this ponzi going and if you if you were to wind this ponzi if you were to end this debt based system if you were to return to a gold standard then poverty would ensue and yet the actual data shows otherwise you know that that's absolutely true gold is vilified and unfortunately because gold has been financial because there are one hundred times more paper gold contracts floating around the system than there are bars of gold it's easy for bankers to can made it manipulate the price of gold to whatever price they wanted

to be to support their pyramid scheme and the ponzi scheme and we see more evidence of this today the only real outlet people have for their savings that will retain value are the crypto currency is there a day are becoming the new global reserve currency the new global gold standard and that's why a year from now two years from now we'll be still talking about krypto currencies but a much higher prices because they're the vast majority of people around the world who don't have access. free money from jamie diamond and are get bailed out every time one of their bets goes bad are going to end up going into crypto currency because they want their purchasing power preserved they don't want to be abused like this by these bankers so we showed that the baby boomers have less wealth than their parents and the baby boomers children however have even less well according to the latest data here out of the u.k. anthony hilton says sacrifice is needed to stop the slide into poor times the institute of fiscal studies published

a forecast yesterday which suggests that people born in the one nine hundred sixty s. and seventy's will be less well off in retirement than those born twenty years before them i.e. the baby boomers they will be in trouble according to the i.f.'s because fewer will own their own homes fewer will have good company pensions if you will have accumulated significant amounts of private savings throughout their working lives so he asked the same question of how where did all the money go because these are the people under the thatcher revolution who should've received all the benefits of not only north sea oil but also this deregulation that was supposedly supposed to help us out and make us all wealthy and get rid of these crack crack any old you know national owned enterprises and yet we're the poorest generation how did that happen when there's another angle to this go back to the reagan thatcher era deregulation the financialization the commodification of all markets around the

world simultaneously you also have something going on in the environment around the world we hit peak oil we hit peak. timber we hit all kinds of peak resources and natural resources are the ultimate source of wealth for the planet earth so during the last twenty or twenty five years you see scarcity of natural resources concurrently with plough proliferation of skyrocketing. debt so the debt creation as enabled these corporations and bankers to extract the what's remaining and you end up with what we've talked about before the economics of extinction so you'll up fish the seas so there's no more fish but you've got a few tuna in the freezer and the price per turn is a five hundred thousand per turn to i mean if a tuna fish can be five hundred thousand for a tuna fish in japan then big going to be five hundred thousand dollars per bitcoin because it's the extinction of money the extinction of all the world's economy is

going to drive big going to and tuna fish and diamonds and things of real wealth to all time highs well we're talking about debt and we're also seeing under thatcher what happened is this neo liberal notion that more complexity more financialization more contractual ization will all set us free but it's actually bog us down it's sinking us we're all sinking under this net of a financial fraud and you know you could see that in what he asked the simple question of the myth that is pushed by hollywood by thatcher and by reagan the myth that was pushed is that you know we don't want those those old state run socialist sort of systems that we had in the forty's and fifty's when everybody was rich and everybody was getting wealth and everybody was saving wealth and he says that was when taxation was much higher with the top rate of income tax at eighty three p. in the pound the debt to gross domestic product ratio was much higher inflation ran at up to twenty six percent and the nation was saddled with all those lame duck industries which according to the thatcher mantra could no longer pay their way in

the world and yet those that generation of people has more wealth then the generation that followed once freed of allegedly the shackles so what have we done what new shackles have been put on us in this allegedly free world. you make a good point that the supposes freedom that would come with deregulation has resulted in the bankruptcy of this current generation and the immediate generation they're living in the best. and while their eighty year old grandparents are roaming the world having a grand old time because they grew up during a time of being spent or after. having values of valuing their society their neighbor and their reaping the benefit of having values once saturating came along and ripped up the social contract you know the result now twenty five years later is that people are mired in debt and they have no values and there's a base and there you know in america you get a gun and kill your neighbor and say well i don't like the way you look so i shot

him and i'm standing my ground so why give me some more free money from the government we got to go states ever thanks so much. stay tuned for the second half a whole lot more. understand you correctly that you don't believe that adequate snowden performed a public service may be in the best interest of the united states but at least in be best interest of humanity countries don't want to turn over their play book to the other side and that's essentially what's happened here it is true that it is spurred a big debate about the role of our intelligence services in the united states i think that debate was coming anyway after nine eleven but i don't think we've had sort of anything in the interest of humanity. by the steps of.

the consumer. choose to use the degree to. choose the stories that you. choose. to. welcome back to the kaiser report imax keyser time now to go to chicago to talk with andrea's and tonic pull us he's a coder hacker and author of the bitcoin book andrus welcome to the kaiser report. you so much for having me all right andreas many ask if bitcoin can survive the

government crackdown but you ask will central banks and nation states survive bitcoin your thoughts. yeah well i mean we've already seen a bounce back from the latest regulatory slow. you know bitcoin is this is a shallow pool of volatility and every time someone sneezes all of the volatile the sloshes around a bit but at the end of the day you know this is a technology it's an invention and you can't an inventor this incredible in french and that allows consensus some of the stupid network that allows people to move around on the internet all right let's stay on this theme of central banks because it seems like the central banks are under attack by a bit coin because bitcoin is an algorithm that is in charge of distribution of the supply of bitcoin whereas the central banks operate subjective it's a moment monetary policy committee or it's the federal open market policy committee

in the united states and it they are to highly politicized whereas the function that is the central bank function of bitcoin is an algorithm it's not politicized it's just pure it's more pure in that sense your thoughts. well i wouldn't say that the central banks are under attack from bitcoin frankly we're tiny at the moment but at the same time central banks are under attack from themselves and if all it takes is for people to suddenly have a choice between a national currency or an international currency that is not affected by politics but only based on an algorithm if that's all it takes to really cause problems for central banks then they're on pretty shaky ground to start with let me ask you this people make the comparison between bitcoin can do to banking what peer to peer file swapping did to music and movies is that a fair comparison and if so can you expand on that it's absolutely a fair comparison and the same thing that the internet did to news and media the

same things that skype did to phone companies you know all of these really are the result of decentralization the fact that things that we could only achieve with hierarchical and centralized organizations and institutions in the past and by giving up a lot of power to those institutions those things can now be achieved at scale on that the centralized system a distributed way like with the internet so decentralizing power has this disruptive effect on the hierarchical systems because they're basically solutions to a problem that no longer exists if we can do it at scale we don't really need the hierarchical organization that as we know will eventually gets captured by the people who rise to the highest ranks of each organization so these are simpler solutions and people understand that intuitively they've seen it with the internet and bitcoin is nothing more than that the centralization of money let's talk about the protocol for a second it i'm going to try to explain it. a few quick sound bites if that's possible

but essential a beauty of it is that transactions are verified and to verify these transactions people lend their computer and power to into the network. and the verification process requires ever greater computational power to verify those transactions but if you're part of a network you get compensated by enjoying a bit of a bit coin every time a transaction is verified and that in a nutshell is kind of what's going on in the difficulty of verification gets more difficult and the supply of big going gets ever smaller so that's the basic protocol and that if i summarize it in that shell would you expand on that your thoughts yeah that's certainly the basic protocol but so what we're already seeing and i think we're going to see more in twenty fourteen is the development of overlay protocols above and beyond that point big question is a way for achieving consensus on a distributed ledger of assets so that means we can figure out the network as

a whole can figure out who owns watts across the world without anyone being able to cheat but at the moment we're using it to show who will inspect point but you can also do the same thing for stocks for bonds for other currencies cryptocurrency is running on top of the same network so there's a lot more behind the scenes so what big question is this not just the currency it's really a platform and a network and currency is just the first up the bitcoin currency is just the first up running on this network so imagine the surprise of people if they do actually manage to slow down bitcoin when we when we start booting other currencies and other applications like for example stock exchanges and peer to peer lending and things like that at home but there's a lot more than meets the eye all right let's talk about stocks for a second so in other words the broker genda stray is one that's filled with a lot of bloat and fees i know having worked in the industry myself the typical

initial public offering or i.p.o. there are millions and millions of dollars that go into the pockets of bankers and brokers to get the i.p.o. or the shares off the books of the bank and into the into the accounts of shareholders in this process so what you're saying. thing is that using the block chain using this distributed ledger and by identifying individual bitcoins to be let's say associated with the stock offering you eliminate all that overhead direct basically you could do kickstarter but instead of it being based on a company kickstarter it could be a completely decentralized protocol that is global and instance so a company could actually crowd funds from across the world with individual investors investing bitcoins and not only investing but also being able to vote in board elections as well as receive dividends as a result of their investments so you can implement the entire basis for a distributed stock ownership with fully transferable stocks right on the block ok

let's talk about some industries or companies that are really in the crosshairs right now for this new disruptive technology obviously firms like western union or others that are in the business of sending money through the wire services are could go the way of blockbuster entertainment because the cost of doing it via bitcoin is ninety nine point nine percent cheaper it's instantaneous instant verification is that correct in saying that these money transfer and remittance businesses are could be the first wave of businesses that. distance are mediated out of existence your thoughts. and they couldn't happen to a more deserving bunch i mean these are companies that charge a higher percentage of fees the poorer the country that us the nation country so just as we're sending foreign aid all around the world from the developed nations at the highest levels and it's a way we hope a trickle does that sound at the same time in the remittances market the

remittances companies are extracting seventy four billion dollars a year from the poorest people on this planet and the ability to take that out of the equation remove those fees and in some cases return twenty percent or thirty percent fees that are charged on these remittances and have that money reach its destination some of the poorest people in this world i think that's not only an industry that will be this intermediated toward disrupted but i but i think it's one both deserves to be and it will be a huge bonus for the world and will have a huge impact globally let's talk about the other crypto currencies that have appeared yet bitcoin of course made a huge splash everybody understands it is one of the most rapidly adopted technologies in the history of the world but in right behind bitcoin or other alternative coins or crypto currency is going to talk a little bit about these other cryptocurrency is how you see them fitting into the crypto ecosystem what your thought i think

a world with no crypto currencies is is now in possibility but i also think that a world with only one crypto currency is extremely unlikely the most likely scenario in my mind is one in which we have one major crypto currency and perhaps four or five currencies that address other nish demands or needs and live alongside probably with a much smaller share what's interesting however is that all of the cryptocurrency as we've seen so far are based on alternative block chains so they have to bootstrap their own network with their own hashing. our what we going to see in twenty fourteen is really some of those currencies moving to work on top of the bitcoin block chain network and taking advantage of all of the hashing power the thing is that bitcoin has a very powerful network effect it has an enormous security infrastructure that's already being deployed and it's very difficult to unseat that or to bootstrap

something comparable to that so i expect we'll see a lot of these things really exist as currencies on top of bitcoin and that will really start showing it has a platform and a protocol rob them just as a currency ok i want to repeat that because i think it's a very interesting point so you're saying that these alternative currency. adventure will a many will essentially glom onto the block chain of bitcoin because the hashtag power which is another term is to describe this this verification process of transactions is it requires enormous computer power i think the last number i saw was something in the order of the current hashing power is that a fifty thousand petal flops or something like that about five peda hashes at the moment so yes ok five petta hashes so this is this is equivalent to five hundred cray supercomputers all working in tandem correct i'm not exactly sure what it

would be equivalent to but it is the largest supercomputing infrastructure on the planet right now so i think else in the individual or institutional environments competes with it so that that speaks to the intrinsic value of big going people say well it's in terms of value well part of the intrinsic value story if you've created the largest distributed computer network ever in history the world and the barrier to entry is enormous at this point and no country would really have the wherewithal to do it no group of countries would have the wherewithal to do it at this point and so to get back to your point the alternative currency. they could do better by simply attaching themselves to the block chain and existing as specialty currencies accordingly i want to talk about another criticism but people talk and mention the volatility issue just to be clear in the case of somebody buying a hundred thousand dollar car with bitcoin the seller of that car can instantaneously convert back into any currency they want so there is no volatility

currency risk for these transactions if the buyer and seller don't want any volatility rest correct yes exactly there are two ways to address this you need the hold for a very short period of time in which case you use that as a payment mechanism and convert it back to the currency in which you priced so you price in u.s. dollars and then convert back to u.s. dollars and expose yourself the exchange rate risk for on a short period of time or you hold for the long term and you look at the underlying fundamentals of this revolutionary technology a technology that is changing the way we look at money it's changing the culture of money and it's enabling global collaboration on press the scale and in that case you recognize that this technology and being able to participate in this essential i.p.o. of this technology is something worth holding on to it's only the medium term where you get exposed the maxim volatility and of course speculators are learning the lesson the hard way right but it's the merchants choice whether they want the veil of volatility or not i write under

a sort of time thanks so much for being on the kaiser report thanks so much for having me max. ok and that's going to do it for this edition of the kaiser a poor with me max kaiser and stacy herbert i'd like to thank our guest. if you'd like to get in touch tweet us at kaiser report until next time ask either saying by . some of the sixteen percent imports came from illegal fishing. the european union is ironically taking fish from some of the poorest nations on earth so this is a very serious and very urgent problem that needs immediate international action. to enter our territorial waters they fish they load the fish into the ships and leave for.

illegal fishing just taking the bread out of our mouths. deliberate torch is on its epic journey. one hundred twenty three days. through two hundred cities of russia. really fourteen thousand people or sixty five those who kill him. in a record setting trip. there. are numbers face. a living torch relay. on r t r two dot com.

hello and welcome to worlds apart ordering and major overhaul of intelligence operations. once every ten years is seemingly becoming a new american tradition last decade was brought about by nine eleven this time around by public opera or over the expanse of anastase surveillance but are these reforms really after whipping as they're presented in the media well to discuss that i'm now joined by michael allen who worked on national security policy for both the bush and obama administrations mr allen thank you very much for being on the show if your book blinking red you describe what you called the most momentous overhaul of america's national security infrastructure since the second world war spurred by a nine eleven and the iraqi misadventure but i wonder if that sweeping reform really brought a new substantial change because previously the intelligence community was criticized for inadequate communication among various agencies.