is yet meanwhile bitcoin two point zero is no ready to go ready to launch and set another stage another chapter others incredible encroach and technology tsunami that is just blasting away all these high priced middlemen and scoundrels banks to say goodbye hello to good all of what. so then he goes in to look at some of the applications already being applied using bitcoin the technology on the block chain colored coins for example the main idea behind the colored coins project is that you'll be able to apply secondary values to certain big coins on the bitcoin block chain those secondary values can be used to create completely new digital currencies that are backed by real world assets for example let's say you always some gold at your house you could hypothetically take five and say that each one of those the toshi is equal to one gram of the gold that you hold in your home you could then exchange those five toshi is backed by one gram of gold each on the

decentralized exchange in the chroma wallet which is what color coins use this means that you can instantly exchange gold to bitcoins dollars euros or any other currency that is created in the chroma wallet and you can create stocks in your company in the same exact way doesn't have to be gold does not to be silver can be whatever you want but you can take a company like google or facebook or that's. that flex and take it public on the watching and for a fraction of the cost nearly zero cost to get rid of all the wall street people in the middle and it's totally transparent and of course people who own these currencies can participate in these offerings in ways that they couldn't before because maybe they didn't get in on the i.p.o. because the i.p.o. was given to buddies and solve very. it's all very you know crony capitalist the distribution of these things but with this in place you have egalitarianism ism and you have the ability for a distributed opportunity to take place in ways that the current capitalist model has failed because it got overtaken by kleptocrats the. this is also capitalism two

point zero i should point out just as the as it's going to point out because bitcoin one point zero is monetary is a two point zero and bitcoin two point zero is capitalism two point zero and now you remember that t c c the depositary trust corporation down and water street in in manhattan member who was flooded during the recent floods and it cost millions and millions billions of dollars to replace those stock certificates or let me just jump in if i can because you know you won't be able to do any illegal short selling you won't be able to engage in naked short selling you know patrick byrne who's now taking big point over at overstock dot com his company had to fight off an attack by naked short sellers he went to battle with the f.c.c. and what's called reg show and we've been following this for years while i'm on the show soon but you wouldn't have that ability because the way that you can do illegal naked short selling is by saying that somebody sold stock and we don't have the accounting ability to reconcile that trade with our accounting ledger and they do that on purpose because they're crooks but if you use colored coins you cannot

do naked short selling so goldman sachs goes out of business j.p. morgan has got a three billion ounces short of solar that would be blown to smithereens they will be able to gauge the wholesale fraud anymore they actually there's another function being deployed right now a company called open transactions and they started working with gold and gold digital gold but here they now turn to bitcoin and open transactions will no company whether it's pay pal or j.p. morgan to goldman sachs for example will be able to go in and change the the number of shares and the amount of money they have on deposit so we'll get rid of the accounting and they count in fraud as well because it won't you won't be able to cook the books using open transactions on the block chain won't take another example basil three accord which is supposed to be the master agreement from capitol minimum capital requirements for banks that just came out and said that we're going to make it easier you don't keep so much capital on your books because that's the collateral you use all your books that go in through this fractional reserve banking mile and create these cats. nations of multi lever pyramid pirated

pyramid ponzi schemes all that get blown but having true transparent counting totally accountable and distributed the total accounting is distributed to everybody on the network so. everyone will know exactly what the banks own as collateral collateral values will be all aaa because bitcoin is a aaa credit big point is aaa credit there's only two or three countries in the world now the aaa credit americans not aaa anymore most of the eurozone is for junk aaa credit to think about that with open transparent security creation and the ability to wipe out wall street with actual securities distributed. to give capitalism two point zero this is fantastic so while all the shriekers out there are concentrating only on this the price the exchange rate with the dollar the euro there yander of the u.n. so here are people deploying services that are needed and disinter radiating out

of existence the entire over compensated banking sector so one other issue that always arises people say well if you send your bitcoin to somebody on the other side of the world in exchange for goods and services you can't there's no charge back so somebody has come up with a solution for that and that's with master coins which they're very similar to color coin a little bit different some of the other exciting features being developed by massive coin include as decentralized betting exchange and using contracts for differences to create currencies that don't need to rely on a third party for physical backing one thing that needs to be pointed out about the master coin protocol is the master coins on that layer also have their own value separate from big queens this means that master coin is also an old coin there are some interesting features that are being added to the master coin protocol such as the ability to mark certain master queens in a savings account where payments can be reversed if they are made. without the

address holder's permission let me jump in here for a second because people will say oh you know those sounds like derivatives and it sounds like you don't like the rabbitohs but now you're saying well but going to ribbons are ok let me make a very important point here the derivatives that exist today the ones that say j.p. morgan are involved ninety trillion dollars worth of off balance sheet derivatives they're collateralized by derivatives collateralized by mark to fantasy accounting they're collateralized by whatever some big four accounting firm says the collateral is worth that we know that they're all corrupt and commit massive fraud they're all engaged in a daisy chain of fraud there is no collateral what you just described are derivatives and the derivatives are derived from b. triple a credit that is big coin that is a solid as gold that is digital gold and therefore is a aaa credit and therefore these derivatives are permissible in the sense that they derive their value from something that has a stated known unequivocal value not like any of the derivatives today they have no

value because they're not tied to anything that's not already been read i profit kate it a thousand times going back to nine hundred seventy one when the world went off gold and went into this fantastical experiment of having no currency collateralized by anything that anyone had any basis for and now one of the other bitcoin two point zero things they're coming up with they are decentralized autonomous corporations so you can see in the name what is out there this is just the twenty fourteen between two point zero there's also becoming three point four point zero to emerge after that now another thing that is using the block chain as a completely sort of innovative new way not even financial related this is information related out in the open and that's a proof twitter built with code from big korean and bit torrent so following the mass protests in brazil this guy miguel freights us went to twitter to find free information because he knew that the brazilian press was you know in the pockets of the politicians. and they were all friends and they were only report what they

wanted to report so he went to twitter and he found his news there but then the n.s.a. revelations came out and he got it afraid that well this is going to be compromised by the n.s.a. in the u.s. security state so he's come up with his alternative is called twister it's a decentralized social network that in theory can't be shut down by any one entity what's more twister is designed to prevent other users from knowing whether your online what your ip address is or who you follow you can still post public messages on twitter but when you send direct and private messages to others they're protected with the same encryption scheme used by lava bit the email provider used by edward snowden so of course he's using a bit coin block chain and he's also using bit torrent technology he's in brazil so he doesn't have this problem of being patriotic to the n.s.a. fear of committing treason he's being patriotic and giving all that information

like lava bit was forced to do they say the study is the mother of invention and we're not talking about frank zappa. clearly their pursuit of happiness which is codified in the founding documents of the united states of america has been sworn to by the n.s.a. and their corporate handlers who are looking to bankrupt anyone they can and bring slavery back after was outlawed many years ago. invention using brick coin is that bringing happiness back what is happiness is to freedom from feeling or being afraid is the freedom from fear that's what happiness is all about that's a big point is giving us a aaa credit that you can do derivatives knowing that you're driving value from something that we know what it's worth that's freedom from fear that's the pursuit of happiness that's do you believe that kick the n.s.a. that is to get out of my life you scumbag. got to go next stay right there are plenty more coming your.

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from the will talks about six of the yard p. interviews intriguing story. has been trying. to. visit. welcome back to the kaiser report by max kaiser time now to go to new york speak with reggie middleton of the boom bust blog dot com reggie welcome back to the kaiser report thank you as usual very good to be bad if you show all right reggie middleton you are building what you call a virtual goldman sachs on top of big coin tell us about it well a virtual goldman sachs on top of the big quine and protocol and network and the extreme conflicts of interest and the excess of bonus compensation sort of

so basically building a more efficient financial system. right so in other words you represent what some are calling bitcoin two point zero first we had bitcoin introduced to the world a few years ago it is now become a mechanism for payment on the internet with overstock dot com for example accepting it as a payment method and as a currency now you're is taking it to the next level which is to say that individual bitcoins themselves can be used to launch what are effectively derivatives correct right derivatives in the purest sense you know about derivative is simply an instrument that derives its value for something else not necessarily. you know some frankenstein monster but it can be if conflicts of interest causes two parties to spread away from each other in terms of actual interest what i'm doing with big client initially is creating mechanisms to smooth out the volatility and allow people to take positions on it for it's over start. the c.e.o.

made a very interesting and apparently very good decision to accept because he got one hundred thirty thousand dollars worth of orders for the orders almost all new orders new customers and this is in the first day as actually very good business decision but when he gets that in excess pick corn because it is still very volatile so either he has to try and exchange all that for u.s. dollars or he has the right volatility. even if it ends up going higher volatility is very. very dangerous you know makes you know as big as the c.e.o. so what my products do is allows him to take that exposure and hedge it so he can lock into a u.s. dollar value which is big corns or euro value japanese yen chinese renminbi any of over a dozen currencies you know that's one of the things you can also make virtual letters of credit and can actually exchange real estate through the bitcoin network the

sky's the limit and the reason you could do all of this is by. because the currency like corn or intelligent crises are programmable i can tell it to do something i can make a contract. off the currencies that basically enforce in agreement between two or three more parties and once i do once i give you my big corn you can spend it and so we mutually agree on something and that means you agreement is executed unlike the or the don't feel currency where if i take a dollar bill i give it to you that's it you know and want to get it back up to ask for it back off the fight over it right some have referred to bitcoin as distributed trust and what that means is when you apply it to the banking model of the broker the stock broker model is that people go to banks and brokers to be the intermediary to be the fiduciary to be the trust to do things like take

a company public through an i.p.o. or to create a letter of credit or to create a derivative as you speak about because they have a reputation they have some trust in this equation but what we've seen over the years is that they've abused that trust and in into this abusive vacuum big coin is emerged and by having distributed trust you don't need these bankers anymore because all of the transactions all of the records of the transaction are in the ledger that is part and parcel with every single transaction and it becomes what you call a smart currency but i want to just talk a little bit about something you just said you mentioned that these are derivatives but they are real derivatives real derivatives that are derived their value from something of true value and we talked about this in the first half of the show in other words in the case of the current derivative market the value it derives from other derivatives so you have an enormous ponzi scheme there is no more gold in the

equation anymore derivatives are. furring to other derivatives but this generation of the rid of that you're talking about with what you're introducing would be deriving their value from big coin and big point as an impeachable intrinsic value correct correct you know. there's a lot of discussion because i know whether it has any value a lot of people say it's just bits and bytes you know there's a lot of misunderstanding i approached pick or not she went to the game but i did it as a true student no preconceived notions biases prejudices i simply look at it and i really like what i saw what we call in does number one is primary value is the fact that it allows you to me is that it allows you to totally circumvent the money center banks and the central banks you know that's very valuable. a lot of people look at the actual bitcoins as a currency and ignore the transmission network an analogy that often uses a car you have the dollar which is say a chevrolet and it's you know thirty thousand dollars then you have the big corn

which was too since the last year and now it's one hundred thousand dollars now and people look at the big corn and say but it's a bubble it's overpriced it's a pilot scheme etc etc but that car that big corn car comes with his own roads and those roads have no tolls no bridges so you don't have to pay any fees to travel the roads and the roads could go anywhere in the world over seas and over countries to reverse anywhere there's an internet connection and that car could go faster than all the other cause in the world and there's no in a way that was supposed to be impeded by any government whatsoever or any military or any corporation so taking that a consideration which is more valuable chevrolet or that car going from two cents to one hundred thousand dollars so you have to look at it because as it is and not as it's pro-trade and the mediocre as detractors of proponents etc yeah i mean people must do their own homework and check it out more thoroughly but i think the

point is when people talk about big. coin being the equivalent of gold i think they are making a great point and here in london we now have lloyds of london offering cold storage of bitcoin and short cold storage gold money dot com is now offering a cold storage service for bitcoin making the equivalency to gold as something with inherent intrinsic value but i want to talk a little bit more about the tech space in general because the last time you were you were on the show reggie you were very excited about google glass now says you came on the show when we asked you about at the time the n.s.a. revelations through the snowden reveals have been quite damning for products like google glass and others people are saying i don't want to wear google glass because i'm effectively spying for the n.s.a. so i'm wondering what your current position is on that technology it seems as though you've pivoted into bitcoin from google glass is that a correct characterization or am i missing something your thoughts just on why

don't you i'm writing a technology way vetted as it develops those two variables your google glass anybody who feels that they're spying for the n.s.a. by wearing google glass a probably never will gas and b should take this so phone and destroy what you down the toilet and should never walk by a bank or liquor store or department stores did a macy's don't go into corners in the city you know the n.s.a. is a spy agency for the most powerful nation in the world they spy that's what they do any devices connected to the network is potentially vulnerable to mount a fake any device of not connected to the network that has to be physically taken to local you know keep that in mind well google grass does it enables you to actually spy back you know and if you read grass you realize you have significantly enhanced observational powers and recording powers in transmission towers now whether those powers could be intercepted by spy agency possibly but no more than anybody with the i phone so if you had said google glass is understandable but you

know be aware you also answer i phone and size them so. see for anti flip phone etc so you know of google has is that is connected to a network security in the open and they say his job is to have security that's what they do all right let's let's stick on this idea for a second because the the n.s.a. revelations pertaining to i'm sorry the snowden revelations pertaining to the end n.s.a. have then led to companies like i.b.m. and cisco sales in around the world have crashed in china they've tumbled boeing lost out on a fighter jet deal with brazil a multi-billion dollar deal so in other words the economics of spying and i'm talking to you as a businessman here not as somebody who might have an insight into the politics but just as a businessman the politics of spying is biting america in the because these big tech companies are now losing huge deals as

a result of this invasive spying how can the companies justify the fall of market share in america with technology that nobody wants it's proven to be completely ineffective and it's killing sales overseas as a businessman reggie what are your thoughts well if it's completely ineffective and nobody wants it because the post and for that you finance and economics that's the natural course of things. the n.s.a. spying has been a constant i think since the birth of jennifer genesis and i say the only difference only delta is that it's been made public you know snow and stones revelations and you know his revelations weren't much of a revelation you know the specific things that he would be you know were educational to me but it's not as if i was surprised again the n.s.a. is a spy agency they spy you know and they don't spy you know if you like them or if you like you you know they strong organizations so i doubt very seriously and i don't

have inside a trap i'm using is common sense here not you i doubt very seriously. just push him on google or just put you on microsoft and the large corporate entity that has access to a large amount of data and they say has compromised either voluntarily with the company's permission or by force let's let me let me kind of circle back to the big point for a second because as you pointed out with google glass the n.s.a. spying on you but in turn your spying on them so you're hinting at this idea of a pushback and big point certainly gives people who are not happy with the current way the banking system is being organized gives them a way to push back and they are doing so was initiatives like your initiative do you think it's some point there's going to be more of a pointed response from let's say the central bankers there janet yellen is now the federal reserve bank not only does big going into this intermediate goldman sachs

but it also does it to mediate the federal reserve bank of america are these bankers these big bankers are they going to push back against bitcoin do you see that happening we've got about thirty seconds they have allegedly j.p. morgan has created their own delivered of a big calling for calling but it's a centralized system as opposed to a decent system which because it's peer to peer so j.p. morgan has a server that tries to do everything a pic or it does of course they own the server the problem is the attempt at the patent and it's up to depend to one hundred seventy five times one hundred fifty five of those times it was rejected. with prejudice in other words they couldn't come back from not mistaken the last twenty times it was rejected without prejudice which meant i think they can file but the problem is it should never be issued and i would be given a patent because it would appear running for these four years all right fair enough reggie thanks so much for being back on the kaiser report very welcome and that's going to do it for this edition of the kaiser report with me max kaiser stacy

herbert i'd like to thank my guests reggie middleton of boom. blog dot com if you'd like to get in touch tweet us the kaiser report and the like. tanya. well tell me how you are my little grandson. i know. i don't like. being cut off. except as an ecovillage but the spiritual side is destructive. i try to convince her and try to preach that it was a sect but it's dangerous that she had to leave it was a story she had lost her mind. you know you she will

come back i know it was and i will wait but even if it means i must wait until my dying day. dramas the truth be ignored. stories others refuse to notice. the faces change the world lights no. full picture of today's. eyes. from around the globe. dropped. we have corruption like we've never had in this country you can say that this is a great economy right now it's

a great economy if you're rich or we're trying to get the wall to wall street cranked up again if you've got all your money in stocks it's beginning to show a little life it's not if you're an average person in this country i would i have to tend to agree with doug i mean i see a lot of public relations here i don't see a lot of really good policy for the average person i'd just like to pick up on an earlier point that doug made though which i also thought was quite important and significant especially in so far as historians can provide value by looking for trends and putting things in context which was the assassination of a u.s. citizen overseas really you might say the power of a king to have life or death over their citizens without without an open trial.

fact that. we're going to go digital the price is the only industry specifically mentioned in the constitution and. that's because a free and open press is critical to our democracy albus. role. in fact the single biggest threat facing our nation today is the corporate takeover of our government and our craft semi-colons we've been hijacked like handful of transnational corporations that will profit by destroying what our founding fathers one still just my job market and on this show we reveal the big picture of what's actually going on in the world if we go beyond identifying the problem trucks and rational debate and a real discussion of critical issues facing america to find ready to join the movement then walk a little bit of. luck

. there's a medium leave though so we leave that maybe. i will see motion security play your part of the musical. for shoes that no one is asking with the guests that you deserve answers from it's all on politicking only on our t.v. .

syria's opposition coalition says yes to attending next week's peace talks in switzerland but can't confirm which delegates will attend this comes amid further doubt over a chemical attack near damascus last year. these rockets could have never been fired from government controlled territory experts from m.i.t. call into question u.s. claims that assad forces were behind the assault. from moscow visited wanted to move a detention center to meet a russian man incarcerated there without charge for nearly a dozen years. president obama says his much anticipated plans to reform the n.s.a. are a step in the right direction but some critics dismiss proposals as a p.r. stunt that leaves too many unanswered questions and much of the agency's operations untouched.