opinion the law is no protection governments make laws but whether they are carried out and how the police behave depends on the general temper in the country if large number of people are interested in freedom of speech there will be freedom of speech even if the law forbids it he could have also added if the public didn't each and every one of them long to be one day of banks or defrauding grannies with impunity the department of justice would go after banking crime if public opinion was informed by corporate w w f style political and economic propaganda consumed twenty four seven via cable t.v. it wouldn't be so risky to bet on the middle class. place max yes it's become very risky to bet on the middle class in america according to some of our headlines now george orwell was talking about freedom of speech and this is back in one thousand nine hundred five and talking about the fact that many of the people in the political space were against certain sorts of freedom of speech of the pins they

didn't like so we're going to look at the economic side of that is that people just don't like a certain economic class or a way of being and therefore we the population allow this sort of wealth and income gaps that are emerging for example so first we're going to look at a tweet from mark andresen who is a silicon valley sort of investor and he says are there any potential alternative explanations for a quote surprisingly tepid retail environment he was responding to the container store which is a big shop in america kind of like ikea but it's just selling containers and they've had a tepid retail environment this is something that many retailers that cater towards the middle class they're having a tepid retail environment despite all the headlines of the dow hitting all time highs and you know house prices hitting all time highs right well marc andreessen i'm not surprised you wouldn't be aware of the tepid retail environment like to present a united states who doesn't know the price of a cup of coffee or of what

a pint of milk costs he's not interacting with the general population he's a part of the overall economy marc andreessen been involved in the economy as a regular person and not somebody who's in the v.c. community who subsidized their billions of dollars to get away from the federal reserve bank and through market manipulation he would now that wages are stagnant befalling and prices are moving up so that middle class is being squeezed out of existence but don't expect a v.c. to know anything about what's happening in the economy in america it's from the top but it's also from the bottom because they very little percentage of the population of america. or in the u.k. is against banks or bankers bonuses for example based on the bailouts they're not against the bailouts as moche as their for example against. their fellow middle class or previously middle class now i'm going to look at another tweet from nick

hanauer regarding nican hour and he is that plutocrats who was worried about pitchforks coming for him and he was here on channel four news in the u.k. and they tweeted nick hanauer tells c four news problem with capitalism is that ordinary workers don't earn enough to sustain business cycle now again this is public opinion agrees with the likes of tony blair who once said that he doesn't have a problem with the wealth and income gap growing and here we're seeing what the problem is in a society that we do have an economy based on mass consumption you know again nick hanauer is again a guy who's subsidised completely by free money from the market manipulation so he's saying well the problem with the middle classes they don't make enough money i think you need to rephrase that and say the problem with the middle class is that it breaks the law as egregious leah's of the plutocrats do and if they did then

they wouldn't be so ornery as to suggest that they are somehow getting the short end of the stick well i believe my opinion is that the middle class would break the law if they could because that's the system in america as george always said it's the public opinion public opinion allows themselves to be slaves allows themselves to be victims of a totalitarian government the public opinion was ninety percent for war is against iraq that has dipped bankrupted the nation they're the ones that wanted these wars because they're fed maybe perhaps by the propaganda that they have to hate other people and that will make somehow them feel better about their own misery but i think it's public opinion also why. things now i want to look at another headline about another big middle class sort of aspirational industry which is suffering and that is how inequality is hurting whole foods and you know their share price has fallen by thirty percent this year due to bad earnings and betting on the middle

class is risky as the country continues to split into rich and poor middle of the road retailers like j.c. penny company and sears have suffered of course the likes of sirius have also been turned into a hedge fund that could be part of the reason why they have suffered but again that's a remarkable statement coming out of the united states betting on the middle class is risky but it is very risky to bet on the middle class and retailers to cater to the middle class are going bankrupt every single day change shops are going under the malls of america are valid meanwhile in the luxury goods area there's never been a better market people are selling lamborghinis and carty a watch is like it's going out of style the market for the extremely impoverished for lottery tickets and dope that's also thriving but if you're in the middle you're being squeezed out of existence because the middle class to get back to your

earlier point about them allowing for this to take place in the middle class they're not asking to commit fraud and big enough demand in a big enough way in other words i was at a loss for it there was a common notion that the difference between a big producer and a medium size producer asked for bigger orders the problem the middle class in america is that they're not asking to commit big enough frauds they're not asking that to commit big enough crimes if you're in the middle class in america and you might be cheating by doing little pickpocketing or you go down to the seven eleven a store and steal a you know a chewing gum or something that you're you're thinking small time you've got to think like mick hauser or these martin our neck out in our american dream isn't it think about. dealing the entire market high frequency trading as a fifth perpetrated by goldman sachs lloyd blankfein and the entire market think big or go home american middle class well again the economy the economic situation everything we know right now today anybody watching out there is

a mass consumer society so we're adding an inflection point because the mass consuming society has not fought they haven't they they allow for this situation to happen but the fact is it's over as amy in this article she's a senior policy analyst at demos she says if you want mass consumption you need a middle class but the middle class doesn't want to be middle class anymore they only want to be plutocrats as well. or nobody want to work for a living they even want to be a speculator or down in the dregs well there's another side of the story i think and by opinion that the middle class in america is remarkably naive because when they find themselves having their lifestyles curtailed they blame themselves and they think well maybe i need to work harder and they believe those horatio alger stories about hard work and pluck will get you to the top of the heap and be have

a middle class lifestyle at least and so when they find themselves being squeezed out of existence they don't want to blame the system they don't want to blame the government they want to blame the banks at a loss or because then they would have to actually do something the american constitution makes it clear that if charity is suddenly the rule of the land it's up to the population to interact it was the same with orwell basically what he's saying in your opening thing the best of the second amendments therefore it's the right to own guns as to interact if they tyrants take over the government clearly tyrants have taken over the government the threshold for charity america was passed twelve fifteen years ago the fact that there hasn't been an armed insurrection yet is a violation of your constitutional duty as americans so if they get wiped out it's their own fault i don't and i'm not going to miss about things oh my god oh encounter should merge gallup polls they looked at the situation in the economy in america and these numbers of the disappointing sales for all the middle class sort of jobs and they looked and saw you know what's actually going on they don't deeper

into the economy the headline is gallup slams lid on hopes for us economy and the reason why they slammed the lids on the u.s. economy is because of what well we have a federal reserve bank americans never stop the formation of it from one nine hundred thirteen they kind of resists the beginning and they've allowed the system that is the dollar tyranny around the world and that is the results of what gallup found was that the problem has happened is that the costs of necessities have skyrocketed so groceries gasoline utilities health care toilet paper and rent more . americans are spending more than they were the previous year and fewer of them are spending less and the things they're spending less on the you know the wants the desires of a mass consuming society so retirement savings leisure activities clothing consumer products travel and dining out they're all spending less on that rather than more well that's exactly right the cost of things that are quantified assessed of

teas are skyrocketing if the federal reserve bank that you just mentioned puts out a report saying they're worried about d flake in an environment where the cost of necessities are inflating or is skyrocketing and the federal reserve bank isn't good at these bankers that's tyranny that's the definition of tyranny that triggers a second amendment right there why are you being such shy wallflowers what happened to the america of my youth i was willing to stand up and be counted well you know it's just simple public opinion that's all george well or else says is just simple public opinion the police the government doesn't matter as long as the people change their mind i don't always referring to british or english people who had hundreds and hundreds of years of being subjugated by the crown so you are sadly used to spend a few moments of sunshine of independence and freedom ok well finally that you know

he ga our orwell talks about the reason why minorities can be persecuted for examples because the public gets sluggish they just stop thinking they don't care and i want to look at a final headline here about lethargic people how this economy can be destroyed based on their left well american. test finds only nine point four percent perform a top level of financial literacy so few of the thirty percent of us teens understand their paycheck according to the financial literacy portion of a test administered by the organization for economic cooperation and development that's o.e.c.d. and more importantly one in six fifteen year olds is on able to make even simple decisions about every day spending and only one in ten can solve complex financial catastrophe cording to the test the number one performers around the world where it kids in shanghai china yeah plus those kids you get the little fingers they can stick it in and help manufacture those i pads and i phones and thing i did later that i don't think is like that i think you know who's buying up who's buying up

california where mark andresen lives twenty two billion dollars spent in the past year it's china we can laugh all we want to say their slave labor well who's the slave here i think it's the americans who can't even for can count on their you know open and figure out what their checking account reads you know enough already days you've got to go thanks so much see him all right stay tuned for the second half a whole lot more. i .

cross talk rules in effect that you can jump in anytime you want. it was a. very hard to take a. long. have you ever had sex with that big here's.

the thing. i know c.n.n. the m s n b c news have taken some not slightly but the fact is i admire their commitment to cover all sides of the story just in case one of them happens to be accurate. such that was funny but it's closer to the truth from the might take. goods because one whole attention and the mainstream media work side by side the joke is actually on the we're going to be coming back. at our teen years we have a different approach to the good because the news of the world just is not this

funny i'm not laughing dammit i'm not ok. i've. got a set of jokes that will handle the stuff that i got to. well go back to the kaiser report imax keyser time now to turn to bitcoin jesus otherwise known as roger vera he's an angel investor in many many bitcoin companies including block chain dot info bit pay crack and more roger welcome finally to the kaiser report thanks for having me all right so good going jesus i mean this is an idea that you were one of the very first to get into bitcoin years ago now and of course when people get into bed caught as you have and as others have others have it becomes almost

a spiritual awakening and but it centers on this idea of freedom in many ways monetary freedom political freedom could you just speak on that for a second roger sure i fell in love with bitcoin about three and a half years ago because once i understood the what the coin was and how it worked i realized that it's the first time in the entire history of the world in which no anyone can sin and receive any amount of money with anyone else anywhere in the world without having to ask for permission from a bank or a corporation or a government let me just jump in for a second because people are wondering that sounds interesting what does it mean and let's just examine africa for a second suddenly that entire continent is being transformed because the room mittens market money from workers going overseas they can be sent back and not be charged ten dollars for a hundred dollar transfer they can be charged virtually nothing for a transfer that's a huge step change estimate and they don't have to ask for permission and provide all sorts of id requirements in their first born child and everything else that all these companies ask for it just works it's just as easy as an e-mail but now you

can send money anywhere in the world just like that basically for free and there's nothing anybody can do to stop it and to me i can't think of something that could be more exciting than that in the world right now rajiv taken a some would argue a bit of a radical step even every now and your us citizenship along with thousands of others i mean this is a huge trend in america right now so first of all. renouncing us there's a ship that's a huge trend why are people doing that the u.s. government's one of the most oppressive countries on the planet and they want to control us citizens no matter where they live in the us i've been living outside of the us for over eight years now yet the u.s. government wants to watch and control everything i do it anywhere on the globe so that's why u.s. citizens are announcing it in droves that higher numbers than ever before so i'm just one of many but i look forward to the day in which all people all over the planet were now it's also the very concept of citizenship to me just seems crazy we're all human beings we all have the same the same characteristics why should it make a difference if you happen to be born in one piece of land than another and if you

have one color passport you're only allowed to go to certain areas but if you have a different color passport you're allowed to go to other areas the whole concept to me is just crazy and i look forward to the day in which nobody has any sort of citizenship you are evangelizing for bitcoin you know this idea of bitcoin jesus you travel the world you recognise all over the world and you have a message it's a very positive message at the same time it's also tied to financial product this attracts a lot especially now a lot of finance years of bankers are getting into bed going is pretty cool and in a period right now where it's a bit of a transition because i want to point summit in london just a couple has got is a lot of bankers are suits and ties it's very different than it was three years ago three and half years ago where it was all hackers and coders and people like yourself with you know had a message of kind of almost spiritual freedom message is bitcoin going through a change right now so that's one of the most exciting things about bitcoin is that

by the queen's very nature nobody can control it it's simply a collection of computers across the internet operating on this protocol and nobody can change that or control it or manipulate it so even if all the bankers come into bitcoin. they're not going to be able to undermine the fundamental nature of bitcoin so as long as you're using a big coin wallet in which you control the private keys nobody in the entire planet can control your because under stop you from so. receiving money with anybody else so the more bankers they want to get involved in because come on and it doesn't bother me at all i can still use my because however i want and i don't need their permission to do so i notice these bankers that are coming in this year sound an awful lot like roger vera you've developed an army of folks if you don't have this vision of things so you really have quite a following around the world and as an enormously changed life changing for many many people let's talk about bitcoin as money itself. you know is it the best money does it drive out of currencies you know as as

a money substitute what talk about but quite as money so bitcoin i think is the best form of money the world has ever seen if you or i go and get together and print you know colored piece green pieces of paper or a different colored piece of paper that governments are issuing as currency you and i would go to jail for counterfeiting when the u.s. government or the european union or whoever does the exact same thing they call it special things like quantitative easing or economic stimulus but it's the exact same thing at stealing well from the people who are holding the other pieces of paper and with bitcoin the supply of the coins is mathematically limited to twenty one million because there will never be more than that so big coin is based on the laws of mathematics rather than the laws of men and i think it's pretty clear that we can trust math a lot more than we can trust a bunch of politicians so big point because the supply is limited nobody can control it and you can send or receive it anywhere in the world instantly basically for free and there's nothing anybody can do to stop that people are realizing really really really quickly the big points are a heck of a lot more convenient than dollars euros or yen and millions of people around the

world are starting to use bitcoin because of that and we're going to see tens of millions and then hundreds of millions and then eventually billions of people around the world starting to use because because it's the best alternative that these people have right now roger the learning curve a big calling is has to be pretty steep for a lot of people because it is it mathematically based currency there is a lot of mathematical concepts but people are so drawn to it that they suddenly fire. themselves jumping in with both feet really getting up to speed on these things for all those in the audience that are just hearing about bitcoin root you know just for the first time or recently some of the terms are new to them a key term that everyone seems to be focusing on because it'll end up to a number of different applications is the block chain itself so just for the folks who might not be familiar with it kind of a short summary what is it when people hear block chain what is the block chain and how is that spawning new businesses which are so pretty much everybody is already familiar with wooden accounting ledger is so all the traditional finance companies like pay pal or vs or bank of whatever they all have an account ledger and it keeps

track of who has how much money in each account bitcoin has an account ledger as well they keep track of who has how many because of what pick one address but instead of that account ledger being on one specific computer and one server somewhere like all the traditional companies are that ledger is distributed on tens of thousands of computers across the entire planet so there's no single place that any corporation or government or law enforcement agency could go to to try and control or modify or update that server and all these computers all around the world are updating that ledger called the block chain in steps and on average that ledgers updated about every ten minutes so my corrective saying that with every transaction and every ten minutes that block gets bigger the block chain is getting bigger so requires more computing power requires more computing storage so more storage and this brings in more people into the block chain into the big calling ecosystem who are now plugged into the protocol and as those transactions are

verified essentially that's what releases the credits or the coins or the currency correct right so right now there's around thirteen million because it's in existence and that will top out at just under twenty one million because it's about one hundred twenty years in the future what is a pet a hash and what is the current size of the processing hash that it's an enormous not. amber explain a little bit about that and just to give that people the idea of that computer because you need in other words. this is the largest distributed computing network ever in the history the world so it's not like anyone can say oh you know you can just create one of these things overnight you can create alternative currencies but the bitcoin protocol itself the bitcoin network is the largest distributed network ever in history and it's got the huge barrier to entry to get this far into the distribution of it in the acceptance of it but talk a little bit about that hastert and they just just a mass of computer power required every ten minutes cycle sure so all these computers around the world are working to verify the transactions the big coin

network as you said it's the largest to syria could be the network ever in the history of the world's second only maybe to the internet itself if you consider that to be one giant thing so the big point network is actually more powerful thousands of times more powerful than the world's top five hundred super computers combined it's just on a whole nother level and all these computers are actively working hard to verify these big quinn transactions and record them into the big chain so that nobody else can go there and update or change or modify the bitcoin transactions after they've been recorded into that launching so the only way to stop bitcoin or shut down because it would be to turn off the entire internet and the entire planet and keep it turned off and the instant the internet turns back on bitcoin starts right back up where it left off again so bitcoin is unstoppable or let's talk a little bit about another term people hare about the fifty one percent attack so briefly explain explain what that is there seems to be some talk about it becoming you know it's on people's tongue right now they're talking about it what's the

relevance of it is there a risk talk a little bit about that what is it and where are we is it real. all the incentives are aligned so that it's not going to be a problem so what the fifty one percent tax is if someone controls more than fifty one percent of the total bitcoin network processing power that they hash and power how do we just talked about in other words you've got all these computers out there they're all distributed but there's a potential for collude. essentially right but the incentives aren't aligned to where that actually incentives are up there but if somebody wanted to do it and commit kind of like big coin suicide there is a possibility of some collusion on the other side of the of this debate there is this the distribution of the network is always trying to push out to present prevent that from happening but so the words if you get a fifty one percent they control that hashing and then what happens from there so and then what happens from there is that future because transactions could be blocked potentially but all the press transactions that already happened though

those are safe those are locked and those are going to be changed so the worst case scenario they could they could make it hard for people to new transactions or they could select which transactions but there's a bit over eight billion dollars worth of bitcoins currently that are online and all those people that own those portion because i want to make sure that that sort of thing doesn't happen people are spending hundreds of millions maybe even over a billion dollars on bequia mining hardware each year to make sure that sort of thing doesn't happen so i think in a hypothetical situation maybe that's technically possible to be an issue but in the real world we live in that it's not even an issue so you are relying somewhat on the side there that assad in the sun the sense of there's no incentive or stone to do that because it would immediately corrupt the value proposition of the bitcoin and so it would be like committing you know bitcoin suicide and you're relying to some degree that people wouldn't do that against their own interest right. ok well what about the idea of there i mean this is now going into i don't know and we haven't talked and really had a serious that

a couple of years or so since we've last talked there's been this growth of the all calling market the crypto market there's now three hundred of these coins out there competing they have one they have maybe less than two or three percent of the total market if you look at bitcoin is the big gorilla in the room what are your thoughts on all the points does it really hits you when you talk about this fifty one percent attack does it make any sense to think of in terms of diversified. other words if you had a light coin or some other coin would it make sense to diversify as a as a way to to give yourself a big group greater risk management your thoughts so in regards to the fifty one percent attack the bigger and more computers that are hashing on the network the safer it is so all these other all coins have far less computing resources being devoted to it which means they're far more susceptible to attack and we've already seen a bunch of attacks on these all coins we saw a recurring got attacked and it was done it's happened to a number of other our clients and i think we'll see that happening more and more so myself personally i only have bitcoins bitcoins are accepted at more merchants anywhere else there's more online shops there's more wallets there's more

everything happening in the big space but experimentation is great that's how people invent new things and find better way to do to do things if someone comes along with something even better than because that's class you're going to cut off there but i'm wondering if you can stay on for another segment because i want to get in to some of the interesting aspect of the mt gox and other things if you can if you can stay can you say you got it next all right super well that's going to do it for this episode of the kaiser report with a max kaiser stacy i like to thank our guest bitcoin investor roger very aka big going jesus if you like to get in touch tweet us a kaiser report until next time. this is about making the business survive.

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a darn about anything turns mission to teach music creation why it should care about humans and. this is why you should care only. this is all too international tonight tragedy on the moscow metro at least twenty one people are dead and more than a hundred. after a train derailed during the morning rush hour the latest. images from inside the tunnel showed chaos and destruction two bodies a yet to be recovered in other news israel doesn't care too much about palestinian lives. or honors in gaza volunteers as human shields hoping their presence will prevent israeli airstrikes on civilian buildings such as hospitals cease fire talks failed to bring rest by. britain's top diplomat william hague surprisingly quits the foreign office.