that outcome was killing hundreds of thousands of kurds in the eighty's the u.s. city even bother to impose sanctions half a million killed in rwanda in the ninety's the us didn't even blink so let's get one thing straight stopping genocide is not a core interest of the us nor has it ever been so if we should stop trying to sell everyone that line of crap all of our stupid kids third is crying save our girls or saved our fur or embracing what the us needs to do in syria it's cetera et cetera they all just need to stop especially because all it does is give persecuted people a false hope that something can didn't hero is going to charge out of the us to save them the reality is that's not going to happen unless those persecuted people happen to be sitting on a pile of money or oil or an area of political interest tonight let's talk about that by following me on twitter at the resident.

watch and you will submit. to speak to the scheduler not using the media and our perceived going to issues around please doesn't do too much for our revenue line tech culture giant song seventy six year old american part of the studio fallout do you think this is going to create for the cia do you think this is what's going to bring this along to the world it's also the largest debtor nation. pretty much that is mostly all the stuff that's going to give you a lot of points to work for the american dream the next that we're just trying to

survive it's time for americans and lawmakers are going to wake up and start talking about the real causes. i'm abby martin the stories we cover here we're not going to hear any other big story. and talk news a reason they don't want to know more. now let's break the set. welcome to the kaiser report i'm max kaiser let me introduce you to the portrait uncle sam decimally handsome man back in one nine hundred seventy s. back in one nine hundred seventy one when uncle sam was that handsome young man one

wage earner could support an entire family in the u.s. economy incomes were growing for all that america was an export powerhouse were dreams could indeed come true it was then that nixon decided to close the gold window and turn the monetary system into a painting on a dollar bill in exchange for this deal with the fianna fáil the us economy would never age we were told we could lead lives to balance currency without cost. i've got news for you the portrait of uncle sam has been hidden in the basement of fort knox behind the barbarous relic old gold and that portrait of uncle sam my dear people shows a tired haggard and ugly old dude from monetary de boucherie fiscal murder empires of dead and banking immorality oh what a fantastic story stacey has a terrifying story and in fact our headlines are the proof of this horrid

looking old man and these portrait of opal sound the first is a tweet from the wall street journal and it says more companies in the u.s. are closing than opening that tweet also includes this chart which shows the blue line is the entry rate and the red line is the exit rate and it goes back from one hundred seventy eight to present so you see that blue line of the entry rate is you know a new company formation and there's less and less and less than one hundred seventy eight. i love this idea of compare it to portrait of dorian gray obviously a famous story of a guy who makes a deal to devil and his portrait ages but he remains young and nine hundred seventy one the u.s. actually made a deal with the devil by going off gold and embracing fee after r.c. but the statistics they charge the reality on the ground the economy is collapsing wages are down manufacturing is down the chart you just showed shows horrid economic decay so that portrait of uncle sam in the basement or in the basement of

fort knox behind the goal is looking a horrid ugly and balanced and so it's only a matter of time now as i as i understand the story before these two things are reconcile in a most unpleasant way yeah did it and doesn't want the dollar stab itself to death and it will be found on the ground and the floor of the new york fed or there fort knox you know in the warehouse next to all the gold and gold will be there the chinese are going to show up looking for their money that the u.s. . owes them and they will get upset and or it could be germany you know germany has a tons and tons of gold it's held in the new york fed they could show up and be so angry that there's nothing there but a bunch of money that they start to stab uncle sam's portrait and lo and behold on the floor is the reversal old uncle sam having spent all that gold many years before in the world recognizes that this has been

a horrible ugly travesty of course in the original story not your uncle sam version but in dorian gray what he did is he sold his soul to stay young looking and that no matter how much debauchery murder or anything he would do in morality it wouldn't show up on his face but it would show up on his portrait and it was turning into an uglier and uglier thing well here in the u.s. they also do the same deal once they've switched over to feel currency all fee at back by nothing then all the bankers and private equity firms the hedge fund everybody started committing fraud in thinking it's not going to show up in the portrait of the u.s. economy because g.d.p. would always rise would always look fresh and healthy and wonderful but behind the scenes of course gold and all of the cities like detroit falling apart though if you peek into those cities that's like looking at the portrait of dorian gray it's like. exactly the dow jones is making new highs but at the expense of sacrificing

detroit sacrificing michigan sacrificing baltimore sacrificing industrial cut areas of the united states sacrificing the entire state of california which is dow having its worst drought in history thanks to the sour on the sustainable immoral economic model that is the us resulting in this bifurcation of reality and portraiture resulting in this reconciliation of some point where the old hag uncle sam reveals himself to looking like some monster for. well now i want to look at some of the debauchery that has been going on in private equity and hedge funds the headline reads hedge fund and private equity fund rent seeking high fees crappy performance so this is for me smith naked capitalism and she looks back at there was actually a paper in the one nine hundred eighty s. a short paper published in the early one nine hundred eighty s. by robert visionary joseph locke in shock and life are discussed with some

puzzlement that the asset management industry delivered negative value meaning it was extractive they seemed perversely optimistic that investors would over time realize that fact and industry would shrink so they thought people would look at it and say well why am i giving my money to a private equity fund or hedge fund because i just lose money but instead because of this portrait of uncle sam this confusion that people think uncle sam is getting away with all these crimes he looks great he looks gorgeous this is the way to make money but in fact people kept on piling in fact more money was piled in into private equity and hedge fund fraud and debauchery in america and around the world really investors are synonymous with amnesia this is a story you could write every six months or every year that people are waking up to the fact that hedge funds underperform the market have done so for decades but that story is written every single every single year that story is written meanwhile

over there berkshire hathaway warren buffet's company he's been quietly compound in money a twenty percent for thirty years is the best performance ever in the history of the world by doing absolutely nothing but buying large stakes and predictably predictable earning companies like coca-cola i think maybe only george soros beat beat beat them over a certain period of time but hedge funds are ninety nine point nine percent of the time underperforming those two guys and because they simply cannot match the. predict. bill of the that is the heart of these markets there's only really one way to beat the market you have to go like it like warren buffett does which is the take he takes control of the market he owns the market he has the market he's not really betting against the market warren buffet is the market so like i said their departure e and crime of the hedge funds and their low returns nothing adds up two thirds of hedge funds fail but no more and just came out with a report and they also look at it and they find shockingly pension funds are piling

into it if you look at this chart this is from no mara and on the left are the percentage of assets held by pension funds in various assets at the bottom on both sides of equities and then the greatest bond light blue is property and the dark live atop is private equity and hedge funds where you see is that the assets under management by pension funds they put ten percent and private equity and hedge funds but that represents forty percent of the fees they're paying but they're losing money on that i'm paying more and more in fees so they're still piling into that and what number concludes is that say in our view alternative assets as a group show consistently poor performance beta is high output is near zero if not negative correlation with standard asset class is high return and diversification benefits are negligible pension funds and again it's where money goes to die it has been. twenty five thirty forty years since the modern pension fund industry came around it's always been a large pool of money run by somebody of low intelligence it's very easy to get

a pension fund manager to buy a really bad investment they're not particularly smart people they get paid really poorly they just are sold toxic investments by sharpies on wall street and not only do workers get ripped off by their wages being destroyed by inflation the strong the purchasing power but then their pensions are stolen by the same people who are engineering his own policies so that's why people in america are living such horrible standard of living in the average net worth of americans been cut in half in the last six years again but go on with this story and. a theme is you know you don't collect your pension for thirty forty fifty years once you start it so this is the door dorian gray the portrait is in the pension funds people don't know it yet but when they get their own will sound has not been so kind to them it's they they retire and find out oh my god this portrait of my future i had back then is haggard and old and deprived and decadent and decayed and an old ugly man on the

ground well i mean a good example is social security social security pays out money at the same time it takes in money and those two things are supposed to balance balance themselves out in what's called a good ponzi scheme well that good ponzi scheme is set to run out of money entirely in about eighteen months so the entire social security scheme in america is going to have to formally be declared bankrupt that's a liability that'll be kicked up to the federal government of a hundred or so trillion dollars to add to the seventeen trillion dollars on top of the other unfunded liabilities of another hundred or so trillion dollars that's why america technically is bankrupt so going back to this report about hedge funds or private equity one study concluded that investing in hedge funds produced from one thousand nine hundred eighty to two thousand and eight produced only the same returns as investing in treasuries meaning investing in stocks would clearly have been that handily so here they were while the speculating criminal fraud all sorts of crazy activity monitoring your pension fund and the haggard ness is in

is is hidden behind this sound looks great but in fact you should just invested in treasury if you would we have the same return oh yes hedge fund managers tend to be corrupt they collude with each other they manipulate markets they work hand in glove with corrupt bankers like goldman sachs or j.p. morgan they would buy the same stock while selling the same stock simultaneously wald putting on a hedge to totally insulate themselves against any risk whatsoever and charges enormous fees for doing. probably balance nothing they walk away with the eighty million dollar home of the hamptons for especially running a ponzi scheme and no it's great recently is that part of the scheme or pyramid scheme that is herbalife was the subject of two hedge funds trying to take it over there you have to essentially ponzi schemes financed by the federal government hedge funds trying to take control of a pyramid scheme herbalife so this is really the tail wagging the dog multiplied to

an extreme level for so finally in this headline about this portrait of uncle sam what we have is s. and p. wealth gap a slowing u.s. economic growth economic disparities appear to be reaching extremes that quote need to be watched because they're damaging to growth said beth and both you know chief u.s. economist at s. and p. so what they found is that because of the increase in wealth and income gap it's actually is causing slower growth it is harming the economy is causing not the young looking hot dorian gray but the old haggard uncle sam because it turns into boom and bust boom bust because the poor need to increasingly rely on more and more debt and also less and less consumption one once everything goes wrong and they're cut off from the debt so again this dorian gray isn't really a gloomy economy or is it the haggard old painting and that's in the attic so that moment reconciliation is fast approaching in the story at the end of the story when the really the reveal of the american economy local sam as being an old hag is

shown and that'll take manifest itself essentially and i believe in a sudden burst of inflation so food and energy something simple in price and america goes down the tubes as we all knew what prices are going to go back to yes and everybody will be toothless toothless old hags well all right well stay tuned for the second half i'll be continuing my interview with nick lambert and david urban made safe. the plate was terrible they come up very hard to make outlets again a little longer here a plug hat never had sex with that make their lives let's play.

lists lists lists list. of. players the world. science technology innovation all the list of the women's from around russia we've gone to the future are numbered. welcome back to the kaiser report i'm max kaiser timeout

a return to nick lambert and david ervine from made safe and acronym for massive rave internal disk secure access for everyone gentlemen welcome back thanks much on our discussion about made safe this new phenomenon sweeping scotland so just to review recap a little bit for those who missed part one and give us the little twenty second version of made safe what is it made safe as intimate as it was supposed to be intimate with intermediary companies no one else will enjoy a veto so if i'm going to speak to your inmates if i speak to your note and i was speaking to you know to keep the corporate speaking to you and there's no ability to steal the information and sell it back to you if you're. to own to the meat safe network of the safe network. then it's the in front of them it can be deleted it can't be corrupted you do tobacco so the storage is on people's hard drives in this distributed network and to just sort of to be a part of the network you get

a token yeah actually you get to talk and you don't actually need it we're actually been able to do the work of an algorithm where everybody in the world will be able to join this network for free right use of for free care is one of my early things was some pearson in africa is given the ability to contribute and consume the information the knowledge and leaps from him to bush and his cure cancer the issues that we're talking about it's the important thing information the ability to be sprayed for and prayed to means that we've killed much would innovation spread what would but now you're cutting into the whole patent business so patents become intellectual property that is highly protected and the example of various plants actually in places like africa and are and it being distilled by for. i'm a set of goals and patented and then sold back to the very africa where they got it to begin with so in this kind of system that information goes into the network and

goes around all the current patent laws become accessible for free and because it enjoys all these levels of encryption they can't get at it the same way they can't get out bitcoin because encrypted they can't get at proton mail which is a new encrypted m.l. service so encryption israeli the twenty first century. rallying cry for freedom and scholars is a place people rally for freedom yeah you're all about the freedom they conscience really important the most the vote important thing but the safe network is based on not total disdain it's based on the does a call in the issues or things that can be found in nature so yes very very high levels of encryption but there are only two for a computer to connect to a network of computers be taken as the computer be run and then given data through which often to make sure to sleep enough to the key to the network becomes almost like a why you've. and it's own body no one so if you're going to network and speak tonight . we don't know you've been on the network we don't know next on the network we do

ignore customers we don't know any information about our customers and that's really important and it's never been done before because all of these even brought on any any system out there just know that says i'll give you security put your main you know secure or i'll give you security at logon to the several i control you know secure or pick a date on this it's really encrypted you're not secure because i could delete it so in a safe network you decide to join we don't know you've done it the network knows you've done a perfect fool of thinking it's a network you'd be a data i want to interact with you you want to interact with no one can look at you and i guess it's scrubbed or in the very first whole pizza takes so you're you can actually go through completely compromise retorts that doesn't that the network just doesn't care that it's encrypted all the way through so this is the implementation of exactly where the internet should have been the freedom for

everyone it's the ability for us to communicate and put information on and consume information. from logic or pretty sions and we i believe that it is the age where we have news that's given to everyone it's free of propaganda we are all controlled by his propaganda system and i would like to see something where you get a piece of news that says. three people were killed today in journalism one of them is a bomb one just as a soldier it doesn't matter that's a lot more than this but i say once again it's using distributed networking to disenfranchise all the gatekeepers of the middleman so that it creates sovereignty and freedom for everybody on the network and you guys are from scotland this is all happening in scotland of course i want to talk about royal bank of scotland for a second but before i do. we've got a lot of interest in that auction that when that happened as the auction of the coin that there was some controversy about the auction. perhaps nick you can walk

us through the auction and what was the concern and what would you say to folks now that are looking for some guidance on this yes i think i think what we're doing is where as a significant previous episode we were actually over pre-sale in the ability for users to buy these tokens which would give them access to services in the network i was in a cell that was intended to take their t.v.'s. and we spent three of six million dollars in five or so really can a wall up close and we were taking. participation in two currencies one was a master calling and the was calling and we anticipated getting i would see at least seventy five percent and the rest amassed according we feel that we wanted to support the mass according guys with what they were doing because we were using their. they are smart properties which is a way of them issuing our talk and before our networks launch so that the kurds

will never worked like that it went so fast that we ended up with a fifty fifty split and as is obvious to anyone looking at the market cap master card is not to hugely liquid so what we've come away with is probably fifty percent of an ace liquid currency coin which is fantastic and we've got fifty percent of a less liquid code. massaquoi which we're kind of holding for the time being and see what happens there but we've got reason to believe those guys are you know going to do some but because of the next next few months so right so so master cohen is yes people call this big calling to point out. it's more of a well how would you describe it i would describe it as a way of integrating all those things into the block chain so you can just basically you know a lot of the things in the book that isn't similar to a colored coin concepts are probably a smart property a color coin so you take an individual coin and because big coin is being created

on the hop for another million you know ten million coins or so over the next hundred years yeah this is an idea idea to pull one aside and say it has a limited supply right now and you can do a stock offering you can do a deal offering you know you can trade as a contract offering yours of course a save point it's proof of it's proof of resource versus proof of work so how does that work dave basically the resources as proof overtreat ability of data as what you're doing and we need so the network is the see can you computer can it's the network and it's like us on call when it was and and it proves that it worked was it starts off as a small computer with an infant and then it grows in rank it's given data and people ask for it and the network can tell the computer give that date and if it does give the date a lot of it you want to see fill in and that's really the proof of the chief

ability of the it and that takes into account the machine itself tame itself they buy and put the c.p.u. capability in the. then interestingly lou the network is intelligent as has no ability to decrypt it into. the network with all its power to the to the house to be a human that those. sorts of people hunt with a client so proof of resource photos is. a more natural way because you're rewarding people for doing something that is good no to walking people for doing something which is normally electricity and know that balmy electricity was wrong for going because there was little of totemist network fellow data into logan to for any purpose and i secured a private monitor from but going to marry that is now. it's a bit coy i didn't have a choice really how to use or can i. make it as i'm and. of these things like

blokes i take the ten minutes and sips some well i'm not. against that we i think i've always tried to think about not success tim's work can remove much of numbers and magic numbers of a tangible find and security and particularly corruption that's one of the issues with so many easy curves ok so you mentioned a couple times. ants and colonies and the type of thing and we we seems like as economics and finance goes forward there's more observation of the way things happen in nature in terms of the economic some like the economics of photosynthesis for example it's a perfect almost frictionless market isn't it happens on the level of photosynthesis how do you mimic that had we capture that with frictionless trading and these and colonies are now are known to be extraordinarily efficient and accent or so do you draw on. oh i don't i'm trying to segue into royal bank of scotland

somehow in every way it is yeah and mary natural system there are rats and predators and lice and this type of thing and the royal bank of scotland h.s.b.c. barclays lloyds here in the u.k. you know i mean you know like your lower intestine has as has you know parasites but they're needed to some degree but when they take over the body you know you die so here you have like a just b.c. a parasite clearly a parasite the chairman is out in the newspaper. saying that enough of this banker bashing. you know we paid our fine this and let's move on now when you read something like that. does that make you feel like well you know the banks are going to start behaving better now so maybe we should just give up what we're doing go for the natural system perspective nature and the excess and greed leads to the demise of the species. so something with the. old food supply

the by its order food supply of money and should have died but we we kept alive eighty on natural system it was not shit all on the walsall capitalist and on to every other system you can imagine so what adam smith a one of the famous residents of scotland lol he better think will be looking at this car banking system right now would he be appalled pull ups that they think about money and safe going as i'm very. focused on this that to meet money as oil that drives an engine and if you have someone that keeps taken our oil i would not know the reservoir that engine goes dry. so money finishers does a trans fair all product and service what would wait which was adam smith's real goal was i can see where you might provoke the lever for whoever much your previous before that it wasn't and somebody in the middle is going to double would profit on it so the idea of money and if i think if we consider money only just on oil for an

engine it's got to flow is goat and if people are taking oil then we have to stop them and making money for all money is a ridiculous thing it was it was illegal it was. a bill i think you may want to use are a centrist you used to use it it was was legal up to the seventh. the bill was just to make money money is a terrible thing you know we're going to stop it there but one quick question one is a lunch test one so i'm going to get another six weeks each so that's you know we're getting them done so guys are because a report like you got spicy about all right doesn't do it for this edition of the times report with me nice guys are staying over and i thank our guest nick lambert and david arrived from a safe haven like untouched so let's not go. on

marinate in the financial world. to go that's not stopping only taking no demand for credit not going to get it in life there are. talks rules in effect that he can jump in anytime you want.

what's really good folks simon all rob lowe filling in for abby martin and this is breaking the set so for the last five nights the st louis suburb of ferguson missouri has seen large protests over the killing of african-american teen michael brown by a yet to be named police officer and it's no surprise that the response to these mostly peaceful demonstrations has been a full on military operation by the ferguson police force in fact no one has been spared from the tear gas rubber bullets and mass arrests even journalists check out how some of the news outlets have been covering the story seems no one was exempt in the chaos around.