of course you. still. keep. to your facebook news feed.

i'm ecstatic you're welcome to the kaiser report yet what happens when as you saw after world war one a bunch of european countries just show up in the middle east and draw lines all over the map and say oh he's in the new countries we don't care about the history culture well less for twenty four days and you end up with islamic state or isis they say exactly and max it looks like fox news and do it republicans are right it looks like we might have an islamic state in the world islamic state now resembles the taliban with oil fields the islamic state which now controls an area of irak in syria larger than the u.k. maybe raising more than two million dollars a day in revenue from oil sales extortion taxes and smuggling according to u.s. intelligence officials and anti-terrorism finance experts so it sounds to me like it's running its operations a lot like the u.s. operations. islamic state is a bold new startup i mean think about all the startups they have there called the structure something they take advantage of social media they've got ready access to

currency they're able in this case to do two million dollars name revenue but some are asking when is goldman sachs going to take islamic state public i'm sure that america would buy into it c n b c would report on it and they could be a huge i.p.o. well the danger to well i think you know fox news and republican party was right a few years ago. i said during the obama administration that we would become an islamic state here in the united states well the danger of that coming true is in this next fact to wait here max about them with this control of seven oil fields into refineries in northern iraq and six out of ten fields in eastern syria the terror group is selling crude between twenty five dollars and sixty dollars a barrel that's up to seventy five percent discount americans of course their number one concern always is the price at the gas station pump right there disrupting the cartel oil is but a cartel pricing like a cartel now islamic states coming in and they're under pricing the current cartel

price and as a result they are set to become a huge player in this global geo political arena of oil and weapons and the other thing i thought when reading this reminded me of how the american markets the how any state really but the america is the empire now is you know the islamic state ice isis whatever you want to call them. whatever they started out as they keep on changing and adopting a new flag a new logo a new brand and one of the things that they do is they shake down the local population they take a cut of all bank robberies for example so for us in the us they've taken a cut of the massive wealth with the robbery that happened during the two thousand and six seven eight period remember during the somali pirate crisis just a few years ago the somalis were you know pirating off the shore of somalia and then they created a stock exchange where you could buy stock in future hiring excursions the real estate in kenya skyrocketed in value because all the cash coming in from the somali

pirates and so islamic state i think looking said you know what there's a lot of money to be made out there we just carve out a state called islamic state or whatever or rakim syria and you know these ones in the middle east as i said before are just randomly drawn to begin with there's no real reason for them it's just all been based. political politics driven so as a result makes perfect sense that could be them building the fifty story tower behind us by the way this view will no longer be available pretty soon as the new they're building a fifty story tower so if you hear noise out there it's just the islamic state or whoever i don't know one of these groups maybe it's a somali pirates who learn from the dutch east india company of course but you know running these. you know these sort of operations as the u.s. has found as every empire before the u.s. is found and now it's islamic state is finding according to the bloomberg article they say that still while ice may now be the wealthiest terrorist group on the planet warfighting and mr doing territory is expensive the official said and

although the islamic state is flush with cash now a key question is how sustainable is self financing will be because to see the flipside of the self-sufficiency is that there's a lot of territory that they control now that has no wild wild and these are the ones that are sucking the state this law mixtape dry by all these people you know they want to be paid to sweep the streets so you say in the article so they're costing money but not giving it to any money to islamic state complaining and signing up for the welfare rolls and all that sort of stuff that the islamic state now is to take care of sort of put this in a context comparing it to america for example on fox news talks about the liberals you know you hear the stop them from bill o'reilly or sean hannity talking about the parasitical liberals over there an islamic state this would be we want to be a prostate really a prostate you know they're not they're not totally driven by the ideology of the

red state that is yes well but in a way if you're really anti-state you would be for these parasites because they suck the spirit dry important to collapse so already in this islamic state is the genesis the birth the seeds of its destruction because it has to take care of these people who have no idea well and that. also i think does it show you a lot about what the world the facts of the world the oil rich areas are rich that america the empire the empires always want to control the rich areas the oil that in this case they used to be gold during the spanish empire well islamic states are a classic example of libertarianism so i'm sure that all the libertarians in america like. we are from the folks over there various universities would be completely in support of the islamic state because are you saying libertarianism to its fullest extent i am. a person libertarianism means don't take care of the said don't take care of elderly don't don't give women any

kind of rights exactly what you see in america exactly we see in the red states exactly we see in america birth of libertarianism is just suck all the castro it would also been done the other thing i thought when i was looking at this to compare it to the us and things that we understand and know and see in our own backyard is that the islamic state is self financing family through oil and but through the shakedowns and harassing the local population this also makes it more difficult for the us to apply sanctions like they could for al qaida and bin ladin operation for example they say it's all their donations came from outside and it gets cut off that source of funding well here i'm looking at the harassment and what we see economic morass and economic harassment and the ferguson crisis so they look at ferguson missouri and what they found was economic harassment basically it's one of the highest in all of the united states where these people are shaken down constantly by the police because that's the second highest source of revenue

for the ferguson missouri into the policy and these are like parking fines going through red lights or turning red it right on red when you shouldn't and things like that right parking over a yellow line so the municipality collect some two point six million dollars a year in fine and quirky typically from small. scale infractions like traffic violations this is the second largest source of income for that small physically scrappiness the polity and in fact they reflect three hundred twelve dollars in fines per household and progress in missouri i have heard this story this is incredible to me fergus of missouri the shake down from the police of the citizens and from the courts on minor infractions are what keeping that government alive and as a result there is huge unrest from people who are tired of being shaken down in this matter well again this is what happens when the government spends all of its money supporting these foreign excursions and foreign wars there's no money to pay for basic services the cops are told go shake people on the highway steal their cash

and they're going to end up with an uprising right there in the us is it's a classic and a vampire story and one of the guys that they talked to in this article says that you don't get three hundred twenty one dollars in fines and fees and three warrants per household from an above average crime rate you get numbers like this from b.s. arrest for jaywalking and what the report calls a low level of harassment involving traffic stops court appearances high find some threat of jail for failure to pay without a meaningful inquiry into whether an individual has the means to pay well i'm also saying this is compare this to the roman empire and they collapsed why did the romans welcome in the visigoths the boss the vandals all those people from outside why did they accept them and well because they are being shaken down constantly by the roman emperor for financing all his wars and here these people are just like forget it i'm being shaken down by these guys at home might as well go be shaken

down by those other guys who want to come in it's exactly analogous. than areas of rome that was clipped the famous point clipping that went on peoples of the soldiers to defend the empire were saying that they were getting paid less and less and less and the bank. vandals came in the barbarian came in here in the us. version of point flipping it's called quantitative easing for the better reserve bank they also have rapid inflation that's hidden by shrinking the size of packaged goods so you get a third or a half the size for the same price so called shrink place in all the other examples where the economy is being carved out is being drained of its vitality because america can't really pay for these wars anymore and you've got companies as we've said before burger king going to canada to avoid taxes they don't want to pay for the wars these want the cash so as a result ferguson missouri i think is just one of a thousand such uprisings in america probably in next eighteen months well actually

if you mention the burger king story that's going to be an issue that you face more and more across the u.s. missed the calories. not only because they have to lower corporate tax revenue because of all these you know the tax and versions but you also have more people requiring subsidies and you also are going to see you know the retirees from these municipalities also demanding more and more of the shakedown so it becomes a point where all of these people in this town. incurring a criminal record because of these debts that are for small time jay walking by the way you know i must tell the international audience because this is that that hasn't really hit the rest of the world this that you get fined for jaywalking blocking your cross the street it's only a concept in america that was bought in by brought in by the car lobbyist anyway decades ago because somebody after into being run over by cars and it gave bad

headlines to what they said is let's make it their j. stupid jaybird. jaywalking was crossing the street while smoking and j. . not sure what that means but now we're starting the second map a whole lot more. crosstalk

rules in effect that means you can jump in anytime you want. on marriage and the financial world. to cease to goldman cannot stop exams only take you know the basics credit is not going to get it in life there are good and there are but.

welcome back to the kaiser report on max keyser time to turn once again to trace mayer he is a leading monetary expert on coins and gold you know so i said that you were the leading monetary expert you could quite possibly be in the world today given your writing on the subject you're involved in a bit coy i want to turn again to where we left off last time trace this bit license in new york what are they trying to do and what should we do as big coin advocates yes so benjamin lawsky the superintendent he passed for pros regulations for bit coin related companies actually virtual currency companies so it's very broad it's very big and it's very discretionary and so it's in a fact it's going to stifle a lot of innovation which i don't necessarily think is a very good idea for the us geopolitically and i don't think it's good for new york

city particularly it's going to hurt their economy we're not going to companies won't come here one of the largest companies that testified at their hearing circle said we're not going to do any business with new york residents or businesses and so you know they're going to isolate themselves if they come in community the big players are saying we're just not going to be work in new york and but of course they're protecting their turf right because here's the biggest when you say about this intermediating force is a big point the new york banks are the ones are going to be this intermediated right so they're just protecting their own yeah or at least that's the way they look at it it's like oh we're not going to allow blogs because it could hurt our newspapers the technology is coming like why don't you get ahead of the curve you know if more companies that had an internet strategy in one thousand nine hundred five and those companies that did have an internet strategy we see where they're at now and those that didn't well there are newspapers earnings are down ninety seven percent i mean it's a completely demolished industry and i think it's a very analogous to banking you know we've seen. internet just attack shipping

we've seen it attack mail we've seen it is shit attack radio newspapers press attacks taxi drivers actually drivers who were in protests in berlin like at the end of the day this is new technology it's going to creatively destroy old obsolete systems it's going to raise standards of living if you go out of the innovation and if you don't you're going to live in north korea. well you mentioned. people dot com many of the ninety six center people focused on the crash of the dot com crash they forget that from the crash gave us amazon google the biggest market capitalized companies in america and in the world are at right the top of the list came out of that press you're suggesting that new york instead of being one of the winners in this new technological front they looks like they've opted to become the one of the losers yet at the end of the day been lost is really gotten above the pay grade with these regulations where would the u.s. be if they didn't have facebook and google and all of these helpful things for the u.s. intelligence services you know i guess we're going to talk about do we really want

to drive all the innovation to singapore and to beijing and to moscow because i'm sure they'd welcome it with open arms you know if they could take away all that knowledge the u.s. intelligence services have from visa and mastercard and what's actually going on in the russian economy they can take that away that knowledge i think it be a very powerful tool for them russia for a second because they're making some moves here they are bringing in that chinese credit card yeah i think it's you know card to get or get out of the union to get out of mass according visa they are have been buying gold very aggressively for for decades for years now so they're one of the biggest gold holders in the world they are doing selective sanctioning they are coming out as pretty smart in all this one one thing that surprises me that they haven't yet the penny hasn't dropped yet in the kremlin in terms of bitcoin in other words. from where we sit. you know after having lobbied them for years to buy gold i take full credit for the

crime of buying gold by the way that they actually went to a data conference in two thousand and five and this is the guy that was number two in the economics department attended in the day after gold started from the four twenty five to seven twenty five and right and putin was holding a gold bar and some of the propaganda so i think the data guys actually had a lot to do in addition to you. this this idea that you know the really killie's heel of the u.s. empire is cool and that economic calculation ability so the gold antitrust action committee bill murphy chris powell they had a conference there saying right after that oh yeah the guy from russia tended right after it started that up and there was a squeeze on this physical you know because the russians were taking physical delivery and now the chinese are gone into and taken out four thousand tons probably straight to beijing right now china and russia and iran have this cozy little shanghai cooperation organization they've got the new brics bank they just

get now the dollar i mean what i believe to hold my dollars i think right oh yeah. it's hard to kind of bad idea i mean goodness short term because the world reserve currency we're in a great credit contraction it's the place unary but long term like everything stacking up against the dollar but i don't i mean i what i love gold but in a lot of ways it's obsolete because we've got this new technology with big point you can't email gold around like how do you solve the payments problem with gold i mean you can't really do that so like i see big coin and gold is just very symbiotic germany is a great example they want their gold back from i guess new york they see you laughing well not nice to laugh at the germans like that you know about your burger likes to see trace mayor laughing on the kaiser report are you strong to suggest that they'll never see their gold well i was actually laughing right in the face of one of the ventus me guys i was at a conference and a guy from the bank was there and there was another person from a large another one. european bank and it was during one of the breaks in the

business and i was actually very big points is talking to me because i was presenting about it and i said i was like you know how to get your gold by going and you start stance and you know and the other guys like well we both know what why. and i said yeah because you're occupied. so i mean they're not going to get their gold back there are you buy they got how many tens of thousands of american troops in germany i think whatever the u.s. says and so does japan and so ok angela merkel you get spied on what are you going to do about it you're going to not renew the military to tell the u.s. to leave that's the only real option that they have otherwise it just gets to do whatever the u.s. tells them to do now according to jim rickards we've had on the show a few times he's author of currency wars death of the dollar i was talking to him about this recently he's like well germany doesn't really want their gold back because as long as and in new york it can be manipulated the u.s. can like confiscate it they can i pop they get it they can really get it right what he's saying they want to be manipulated as

a way to support the current system because they want a role special drawing rights from the i.m.f. and they don't really want to go back to a hard currency of gold backed currency but it seems to me that if we're really entering into a vicious currency wars like i think we are then you would want your physical gold in your country number one and number two i'm like records i think this whole idea of geopolitics and big coin has to be explored i think looking at his books they fall short of taking it to the twenty first century is very much a twentieth century currency warrior is not part of the twenty first century in this big coin development is it fair to say that you could wage global currency war and i'm talking about one hundred billion dollars transactions major currencies in bitcoin on the block chain is that possible is the security there is the liquidity there is that possible trace yeah that will quit it is. not there yet the security

is getting there and armory were really built out the tools are built out cold storage maltese signature we're building out the security there they coins extensible so you can keep building it building out features to it you know jim rickards currency wars great. i think. strong analysis but at the end of the day it's the chessboard that existed you know in the past we've got a new chessboard now and unfortunately jim rickards doesn't really understand the technological innovation with big point and so he can't provide a real saint analysis because he just doesn't understand it not that he can't understand it but he hasn't really you know points created by a bunch of ph d.'s in math and computer science and distributed systems is highly complex you don't just get it and you can't just gloss over it otherwise you have a very superficial analysis of it let's take a look at this geo political chess board and put it on the spot here but i mean think of it i remember the old game we had as a kid risk you know as

a geopolitical game and you're moving pieces around but how would this potentially obviously russia is the one that comes to mind right off the all right off the bat because they're being targeted by the i.m.f. has got this ridiculous this going on in the ukraine on behalf of the i.m.f. to secure agricultural production in the ukraine let's be honest it's got nothing to do with with russia it's about the i.m.f. and the and the west wanting that agricultural product and they want the military bases there so it isn't what let's why don't they start to get more and maybe they are what are you hearing. we're building the tools for life here is a great example with bit we have jeff cars make a big point for developer that we fired he built out a lot of the payment protocol how could the payment protocol be applied in the ukrainian situation what with the with the payment protocol you can authorize a transaction up to a certain amount of decorum and then you make watson micro transactions and it

draws down against it and then you saddle up on one big transaction but you've all but you know that you're going to get paid at least for whatever you shipped through the oil pipeline for example and so there are no big coins to authorize a shipment of oil like russia just one set. as as each barrel of oil goes through the pipeline you're getting paid your big points in a in a nonreversible non fordable non sanctionable way and then. ok so you've got your you've got why you've got the private keys yourself you're not like letting somebody else hold your gold and not when somebody else hold your big point you're doing it all in this just intermediate of this leverage is the open the ledger of big oil which is the open accounting ledger there's private keys associated with it so you can you can parse out a deal over a year or eighteen months for oil through a pipeline through that territory and you can do it in a way that is completely above board and trustworthy on the open ledger it's

irreversible using private keys you don't need the u.s. dollar oh yeah you don't need the u.s. dollar but one you don't need any centralised so you don't use where you don't need all of these done in the lawyers you don't need only the contract well while the contract you can actually build the contract into the transaction into using the big point protocol so it's all in the math like you see it all in the computer language so that russia china brazil iran they haven't got the new brics bank even if they don't use bitcoin as the let's say reserve currency they would still want to use the block chain as a way to make it cheaper for them to do various currency swaps and everything else they need to do oh yeah and you can you can and i think when big point starts becoming a settlement currency because you can use it to enforce leverage ratios like insurance contracts there's a lot of ways that we can apply this this watching technology and all of that is done and settled in the watching you know so there's no counterparty risk it's

a huge deal no fannie mae freddie mac. lehman brothers bailouts like none notices settlement settlements are done on the block chain that what does this mean that means that we're not necessarily doing a deal of bitcoin if i've got a two billion dollar cultural deal to get through. we can settle that all up on the block chain and subtle and it's all backed up essentially in a way that takes away all possibility of there being any fraud in the transaction right both parties and if you really wanted to you could abstract dollars or rubles onto the box chain and then they're represented by smaller really small tiny amounts a big coins in the nose trade atomically in a box and so you're trading the what's representing the oil with what's representing the rubles on the box and you have got to thirty seconds left and i just want to get your final comments on are we heading to world war three are we in world war three your thoughts i think we've been in it probably at least for ten

years you know along we've been doing this gold price suppression scheme with alan greenspan we've got the us empire that's occupying everybody pledging everybody as collateral to consume people and take all their money in their identities and not let you grow or you what you want to grow and all these problems across the world it all root cause in the us empire and i think a lot of people are fighting back against that whether it's in our weather center vigils and because it is that is the way to fight back because definitely a very powerful tool that individuals and states can use to fight this empire thanks trace ring once again on the kaiser report thanks max all right that's going to do it for this edition of the kaiser report with me max keiser and stacy herbert and i thank our guests face mayor trying to reach us on twitter use kaiser report and i stand by go.

through and get the water treatment piece for. you to. put it. is this some produce where the school grossly obese to two billion . dollars from still is almost all. being thrown. celebs. placed serious effects of global basis try to claim the same people are going to make your name your lifestyle or destroy the teaching every minute of.

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palms gently swaying in the ocean breeze. and frank. white has a deep dark little secret a secret the u.s. government would like you can all go. through our labor. well i didn't really search you to get all we know there's a new. roof . right. search string. and i think the trick. on our reporters.

coming up on our team new information after isis claims to have killed another american journalist a new video appears to show the beheading of stephen soften just weeks after the death of james foley. and protests in east jerusalem continue sparked by the july murder of a palestinian teen and the aftermath many in that same family have been be in or arrested so is this family being targeted the discussion with them coming up. and tensions between nato and russia as delayed as fighting in the east of ukraine continues thousands of civilians are i'm.