max well you know is speaking laughing and screaming your way for more debt on the way to the glue factory we might want to look here where there's been a lot of horse riding going on real wages have been falling for a longest period for at least fifty years oh and us says real wages have been falling by two point two percent a year in the longest sustained period of falling real wages in the u.k. on record well look at this chart that accompanies this is from one thousand sixty four to present and its average earnings growth with r.p.i. inflation stripped out and this is from the office of national statistics and you can see that we real wages have been falling consistently since two thousand and ten this is the longest period back since the past fifty years because wages are not needed they think about it the nation pays its bills by collecting taxes. but so does the central banks in particular the bank of england simply prints money and hands it over to speculators who jack up prices of assets like real estate and

then they extract wealth to go spend on consumer stuff you don't need wages you don't need the taxes. you don't need taxes to pay your bills the government doesn't need taxes therefore there's no focus on increasing wages because they don't need the wages the people who live on wages month to month on wages are slowly being exterminated because they're not needed they're only needed to borrow money you're only as good as the amount you can borrow. if you can't borrow anything it won't get any more you're no use to the station and you might as well just top yourself and just like all those young women who are trafficked into the sex trade here these people are trafficked into the debt trade and they always end up looking the same haggard and you know addicted at the end of it and their whole situation gets worse and worse the longer they participate in the game so in

the u.k. in terms of wages those who basically bought this financialization of the economy we see real wage growth average two point nine percent in the one nine hundred seventy s. and one nine hundred eighty s. one point five percent and the one nine hundred ninety s. one point two percent in the two thousands but it's fallen to minus two point two percent since the first quarter of twenty ten zero and as figures showed yet the rhetoric the whole time whoever the pimp is is telling them they're doing better and better all the time and people seem to really believe that maybe they're addicted so addicted to the debt that they think they're doing better well it's a poisoned chalice the debt because it is finite whereas the interest cost on the debts are in finite and wall never be paid back that's why there will be a global recalibration of the currency markets again something that has value like gold and for those people who are being completely forced off the grid there are

two cryptocurrency is like bitcoin is the only salvation they have to maintain any kind. first of all sovereignty here in britain because so many so few people have individual sovereignty because they have no savings the nation itself cannot claim to have genuine sovereignty above and beyond the debt crack or slingers in the city and around the world therefore it's a vassal state it's an occupied state by debt crack slingers debt course and of course when you think about debt whores i think about christine legarde i don't know why but there she is the i.m.f. and she just says the smarmy looking face of a debt crack whore. but that's also about the crack course yes because the charity work you look about and so like some of those you know royals there is christine legarde she's got that you know aristocratic coarsely look it just so happens that here in the year the horse the b.b.c. equates horses with horse and apparently somebody over there either

a really knows the state of affairs or b. the dr freud as their title you know it's an algorithm that does those titles so the algorithms know more where in an algorithmic world driven by finance based on high frequency trading so the algorithm knows it news the truth it sees the truth and you mentioned gold bullion and this brings us to the other aspect of financialization not only are real wages going down they're convincing you to get on to the roulette wheel of housing and the this is the only way to get rich well i realize that you know all these properties and we've pointed them out many times right behind us they're actually only being sold to chinese investors asian investors for example they only they don't even market them to british people anymore and so the reason why i see this is because they're talking about thirty five million pound houses for example being sold on thirty five million pounds max the storage of thirty five million pounds worth of gold bullion would equate to up

to one hundred seventy five thousand pounds a year here the property tax annual council tax is twenty about twenty five. hundred pounds on that so what are you going to do spend a hundred and seventy five thousand pounds store in gold bullion or buy a property here and never look back and i saw a tweet about this and it's an excellent point one of the reasons why you have a housing bubble here and the telegraph by the way this week just said that the london market real estate is down and saying bubble territory and it's not that they don't have demand for housing it's that the housing market particularly in london is about eighty percent above where the underlying economic funnels one of the fundamentals was jest but you're saying something very key here is that you've got thirty forty fifty one hundred million dollars of your chinese investor who's made a lot of cash by milking and building the china people's bank of china for all the free money that they've created you can still put it into a gold vault and pay one percent or one half percent or two percent a year in storage or you can just buy

a property up here on millionaires row in london and they'd charge you a fraction of a fraction of a fraction in terms of a council tax so it's virtually free storage of an asset that's going to go up with all the money printing so that's why there's less demand for gold because you're you're paying less than two percent storage fee to buy a thirty or forty or fifty million dollars shack on millionaires row in london and there didn't maintain it there's no maintenance these cows are fall apart well going to go into that it's actually not millionaires from x. it's called billionaires row so let's talk about this article you're referring to and it's called inside billionaires row london's rotting derelict mansions worth three hundred fifty million pounds the north london street where billionaires can buy homes never live in them let them rot and still make millions they found the saudi royal family for example owns ten homes side by side not doing a single bit of maintenance they've never lived in them for twenty years the people of the u.k. of course pay for maintenance of the roads outside it around at the police force

that you know make sure nobody breaking into these dilapidated homes but here you have this is this aspect of parking their wealth you bet. this financial system is created have you looking homes so the derelict homes are a way to part cash that is going to increase in value because of the money that's being printed develop the zombie banks it's cheaper than buying gold or silver so why buy gold and silver and it is subsidized by the very people whose wages are crashing relative to the money printing so the people who are getting forced onto the reservation here in the u.k. whether public services will be cut off or heating is no longer affordable you have fuel poverty food poverty and just poverty poverty those people are living a life that is equatable to third world nation while the saudi royal family just puts thirty forty fifty three hundred million dollars into a chunk of real estate billionaires row pays no maintenance at all and benefits from all the money printing of mark carney and a central banker friends and actually the guardian spoke to man who was walking

down the sidewalk the pavement down there and he was an iranian guy he didn't say its name but he did say it was actually a horrible neighborhood to live in he lived there and he said because nobody's here so it's deserted it's dilapidated all these homes i do lapid in there's a hope that the traffic on bishops avenue is really fast so he said it's not even worth living here but yet the property prices are so high because it's like a bully on fault and in fact the mayor boris johnson has defied downing street to call for taxes to be cranked up on the vacant properties he told city investors this month quote london homes aren't just blocks of bully on in the sky. right well that's exactly the point is that this is an asset that's not being used in a way that would be germ a into a functioning economy that's benefiting those who are contributing into the economy either through by paying for the roads paying for the services those people are

being penalized by substandard wages while their foreign investors are basically turning huge swathes of the. apple into a feral nightmare of rat infested billionaire mansions they use purely for speculation that in the end wall calls even more economic dislocation so i think london is probably the only place like this like if you bought a place in manhattan they're paying you know up to two percent of that the value of the home per annum on property taxes here it's not even a fraction of a it's like a set toshi they're charging them well i mean the property in the u.k. is what cheese is to the french it's a national obsession people believe that it's only one way to get rich and that's through property speculation it's through their total identity is based on their homes they watch down abbey they all want to live in downton abbey and this is their identity finally on this sort of episode about the year of the horse and are

dilapidated financial system looking very hagi why this harvard economist is pulling all his money from bank of america this is terry burnham and he's a former harvard economics professor and author of mean genes and mean markets and lizard brains and he says that he's pulling his one million dollars out of bank of america why why do i risk starting a run the bank of america by withdrawing my money and presuming that many fellow depositors will read this and withdraw too because they pay me zero interest thus even an infinitesimal chance that bank of america will not repay me in full whenever i asks which is the cost benefit conclusion from state to fully so he said for example my one million dollars if there was even a one percent chance that they would collapse and not be able to give him money immediately that he should be paid ten thousand dollars per year for that risk but he makes the very same conclusion that bank of america with his million dollars in deposits they've loaned it out they loaned one hundred million dollars out through the fractional reserve banks banking system and therefore. the chances of him not seeing his money are powerful ball he should be paid at least some rate of return

for that risk he's getting no rate of return it makes no economic sense to have your money in a money center banks in the us. or the u.k. and get zero rate of return on that money you're just asking for trouble you know we told them want to follow the money out of these banks seventy years ago and buy gold and silver when gold was at four hundred sub or was it seven we told them but bitcoin what it was five and for the very reason these banks are going under does a have to me i mean we've got to say see if the euro the horse down the banks buy because gold and silver well said all right safe in the second half a lot more. of the playing. field

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welcome back to the kaiser report imax keyser time now to turn to. the go to man for all things bitcoin and crypto he's now working for block chain dot info and water that has a report thank you so much for having me max all right andreas i want to start off actually was something. that we heard recently you know these are the big. processor of credit cards on an investor conference call last week the very first question the c.e.o. received was about bitcoin so that's very interesting because we've seen bitcoin is now on the radar of some folks that would naturally be in the crosshairs of potentially being disinter mediated by bitcoins talk about a little bit what was interesting also because the person who asked the question was an executive at wells fargo so it was and i saw the combination there i think the response was was pretty much spot on for an investor caller when they couldn't say anything other than you know we look at it it's interesting we think you have

some scaling issues and things like that but they said we're paying attention and that's as it should be and they finished off the conversation by saying they're comfortable i think that's probably a bit much to say and i wouldn't be as comfortable in their position because they are likely to be disrupted and this intermediate of course all of the minutes talking about bitcoin the business because clearly you've got retailers like overstock realizes that it's a great way to pass on savings to consumers because the cost of transactions are fractional what they would be if you use credit cards etc folks like western union they have an internal memo that i've seen where they're trying to get their minds around bitcoin because clearly to send money point a to point b. using bitcoin again is it is ninety eight percent cheaper you know then it would be through traditional means and as a as a business i mean that's that's one of the. ameri points about bitcoin as the

business case forget about the interesting aspect of the software and is it a currency or not a currency just as a straight up or down business this is a fantastic new business correct well it's secure it's fast it's cheap and it's going to be attractive for merchants it's massively reduces the risk because the transactions themselves don't need to be encrypted to the network doesn't need to be protected from fraud because computation ensures trust not lack of access so everyone can access the network which makes it a lot easier for merchants to use bitcoin for retail operations there's no charge backs there's no fraud issues as before it's much harder to steal consumers identity so it's easier for consumers and you don't need all of the identity information like at the moment if you want to do a credit card transaction you have to provide your address your name the credit cards and all of this information was big big queen it's a single click so when you make your frictionless when you make it riskless and you make it secure and fast and cheap for consumers is definitely appealing to merchants it's

a really good efficient form of money for the internet and over the holidays there are reports target neiman marcus big retailers in the us that had breaches on their credit cards millions of customers tens of millions of customers huge breach of data of course that would never happen with bitcoin right i mean the big difference is that the traditional payment systems are pull systems which means that when you use a credit card what you're doing is you're also rise in the future pull from your accounts and potentially many more future pulls from your account that's why you have to give so much identity information words between is a push system you're just you create the single little chunk of money that you're sending and you send that and it can be compromised so at the business case a big client is solid you know if you look at the history of technology we've had some technological breakthroughs we had the e-mail we had the internet of self we've had and this is been the thrust of business growth in america and around the world so let's talk about the regulatory front for a second because the regulation side there seems to be some give and take there

that the new york hearings on bitcoin they just concluded what's your take away on the hearings you know there seems to be some pushback on their side talk about. i was rather disappointed to see a lot of fear uncertainty and doubts being introduced into the waste and fraud but it was mostly because of lack of understanding of the underlying dynamics of the system and i think a lot of it was due to misinformation and kind of knee jerk reaction over time as people get to understand the bitcoin business case and the technology a bit better i think that fear is going to go away you know bitcoin is not hostile to regulators it's not hostile to law enforcement in fact it's very easy to do law enforcement on bitcoin and regulators will find that over time the fact that point is regulated by algorithm provides a lot of certainty and reduces risk i think eventually banks are going to adopt bitcoin and use it very happy to use it as a very powerful medium this is not at all different from what we saw in the early

days of the internet when there was a lot of fog and people couldn't quite see how this technology would provide benefits what they saw was the dark side of them what they saw was that the structure and it could cause to their business models but eventually they began to see how this could generate its own economy and its own progress and jobs and innovation and growth and for politicians also votes and as a result they started seeing the good side of it we've already made the transition where the vast majority of the uses for bitcoin are mainstream they're positive they're business oriented and as more people see that i think all of these discussions are going to be part of the past now within the bitcoin community there seems to be a little bit of a split if you will there's one camp that's going down the path of the white coin or coin validation that coins need to be. identified as clean or they need to be friendly to the regulators me when i started to see that it seemed to me to go completely against the eat those of bitcoin and also opened up

some problems in terms of you know not to get too technical but the fungibility debate or issue. but what are your thoughts on this idea because they herring certainly played into the hands of the coin validation cry. there were you know sent an e-mail around saying look you see this is what's needed but what do you think about this i think there's a lot of misunderstanding as to whether bitcoin is anonymous or untraceable of course but when it's not anonymous and it is very much traceable however what it does is it enables people to achieve some basic privacy which then takes some effort to undo but if you have a targeted reason for law enforcement to track something they can track it quite easily now tracking every single individual coin is something that we don't do in the banking system and we don't do in cash and we certainly don't do through credit cards and trying to do that would damage the fungibility of the coin and would create a more let's say to tell a turning point which is really unnecessary because law enforcement certainly house the tools as they've demonstrated to stop bad actors using bitcoin and in fact it's very convenient for of course for example if you want to trace

a payment through the traditional banking system you have to go and do subpoenas to every single intermediary who's touch that money when you have a centralized ledger that can be used to track bad uses of the currency so i think this is a lot of misunderstanding about the value of the currency in eventually we're going to see these discussions fade away you think they'll just fade away yes absolutely because the utility will override these instincts to control which are really driven by fear and that fear is driven by a lack of understanding of how the system works on the finance side of things the need for fungibility is clear when you're making markets and any kind of security or currency the market maker needs an inventory of that particular security or currency and they need to be able to transact things like short sales which are tend to be that's where the fungibility comes in you know people don't understand they open a brokerage account for example their stock is owned by the firm and then the firm can lend that out and it's fungible in a sense that there there is a cusip number attached to those securities but they're not considered part of the

equation when they're making markets in those securities so by den of fine coins in the way that some are suggesting it a limit the ability to create a. robust active market making function which is necessary which opens up the question about the rivet of now there is plenty of room for derivatives on big coin that the name derivatives suggest the prices are derived from something the problem with the current derivatives market is that the prices are derived from prices based on other derivatives where is if the prices are derived from calling because is like gold in this sense and you have a solid valuation for bit coin so you shouldn't be afraid of derivatives in the same way that they are being spun these days your thoughts the underlying assets itself is deterministically issues and that creates uncertainty so you can expect that to the certain point of time a certain number of pick wins will exist and you can base that and understand what

the monetary supply will be at any point in time in the future and that gives you a level of certainty that allows you to evaluate the value of derivatives built on top of that so it creates a solid sound money supply underneath i think we will see to rivet of some i think the evidence will allow the kind of contrarian speculation of shorts that are probably necessary to stop these lurches and to create less volatility now we've seen volatility in the currency decrease every single here as the pool of liquidity gets bigger as you get less sloshing around of liquidity every time someone sneezes in the media but you know the introduction of shorts would probably make that better right now when there is really good news there is nothing to constrain the growth of the price so shoots off very rapidly and if you have an issue actually the same with an i.p.o. you could use an over the counter stock or they're only releasing five percent of the stock there's nothing to short yeah these two three five percent pops in a going back to the dot com boom and then they reset to

a more rational values after and these are not really bubbles being inflated and popped they're really just over reactions and over corrections to the market pricing underneath i think shorts will give us. but more stability so i don't see any problem with these derivatives especially because it is sound i mean people make the comparison to gold and even james turk who is one of biggest names in gold just came out and said you know the debate is over going to here to stay and i have to i know james for a long time and we've talked about he says yes you can make the case that bitcoin is gold in the sense that it has unimpeachable value there's a limited supply and it can be has all the attributes of gold so be teleported and that's the brilliant part of it that's gold without the physical burden of carrying it around or trying to slice into the smaller pieces it can be teleported across the world for very little cost or no cost at all and they could be sliced into infinitesimal little pieces which takes away two of the biggest problems with gold

it's an improvement on gold in many ways and i think the gold community now seems to be understanding this anyway some of the leading lights are now figuring out that in fact this is a technological improvement let's talk about charlie from for a second because here is one of the co-founders of the bitcoin foundation seems to be just this is a two tier justice because what he's allegedly involved with. the numbers are quite minuscule when you compare to some of these bigger banks that are caught by the alleged infractions of charlie shrem involve money laundering with amounts in the million dollar range. compared with h.s.b.c. that got busted for a multi-billion dollar money laundering one hundred fifty billion walkover four hundred billion or so but there they just paid the fine arts deferred prosecution they did say well we will get around the prosecution some day so here are regulators in seems awfully aggressive in this space and we're going to see more of

this type of thing where they've clearly they've day there is a two tier system and they're attacking charlie from here well i think the enticement is also weak because from what i. fred what they're alleging is that charlie shrem provided bitcoins to someone else who was a money markets maker on so crowed who was providing bitcoins the users of silk road who were using some of them to buy drugs so it's like kind of three degrees and really the main accusation is that he didn't follow the correct suspicious activity reports on the other party who was doing the suspicious activity not himself so without a doubt there's some heavy handed prosecution you know it's funny because this is the first time someone was led away in handcuffs in new york since two thousand and eight that for anyone else you know those people who are truly a friend of solomon brothers was frogmarched out of the the office you know going back to the liar's poker is days but embrace we're out of time well have to have you back again soon thanks so much for being on the kaiser report thank you so much

for having me all right that's going to do it for this edition of the kaiser report with me max kaiser stacy or i think our guest. if you'd like to get in touch tweet us a kaiser report intellects on bio. the united states has significant technological over the rest awhile that it is now using that spy on the rest of the wall then there was the deal between the u.s. and england where u.s. spy agencies could spy on people in the u.s. but british a spy agencies could spy on people in the u.s. so the two governments said alright each of us will spy on the other's citizens and then we'll trade and that we will be surveilling our own people so this is what i think of as the scandal.

you know the playing. field in big spirit travels with the flame from its birthplace in greece. joining james brown for an elemental and epic journey around russia and beyond.

where am i supposed to go. on. earth new york london. the whole world is on the go. and see trujillo of the original one a father one down the end there a father to hang up the core of that building at the end of the street another one a more transparent society gets the money or the puppet tears become we see military and state unfairly falses mobilized against people who blend into the city doing the hobbit the city the more people trust electronic devices the more

defenseless they are the fear that has a thousand on is on our t.v. . officials raise the alarm over corruption underworld sucking one hundred twenty billion euros a year from the european economy roughly the size of the e used total budget and what's worse the report warns it could just be the tip of the iceberg. as the u.s. reportedly plans to back up syrian diplomacy with more weapons for the rebels and our t.v. crew travels to a damascus school where the children refused to be victims of the conflict. with the winter games just days away and the gay propaganda boycott battle still in the minds of many we talk to members of the city's community to find out if the law really has affected their life in sochi.