actually tweeted this and i saw this right before we came in to record this and so i kind of skipped over the present the gift i was giving to the audience of the other headlines so what do you have to say about that or somewhere in everyone's collective minds are all the passwords to all the crypto everywhere it will rain down on humanity billions and billions of dollars as we collectively reach the password needed to unlock mark to post over there about dogs he's going to be a billionaire this year thanks to being the magic of pseudo should not go to people who have lost their passwords need to go to hypnotherapy immediately and unlock those passwords using the magic of hypnotherapy says think about the password where you were at the time you were engaging in that word that unlock your wallet and you too can be an instant billionaire i've lost so many passwords over the years somebody bitcoin giving away so many but i don't care anymore because the world is changing profoundly due to blogs and crypto bit coy in a way that will mean the end of jamie diamond and his tapeworm vent to see is i

don't need money love. i actually there's you know if you go to read it or various bit top forms you'll see a whole series of people linking to their big queen on the block chain saying help i got these hundred big queen there and like twenty ten and they were only worth twenty dollars and i lost the password can somebody help me get these that's amazing it's so biblical in some way you know there's a pilgrimage people go on through their minds trying to find the touchstones of their own selves to unlock the password for the big coin. you know this is going to go on for another guy very like one hundred million dollars in a landfill because it was strapped on his hard drive well actually i was going to mention that he is actually offering now a ten percent to anybody who could help him get his hard drive was in there it'll soon be worth a billion dollars and. you know just like i go on treasure hunt and they go down

into the deep blue sea looking for hidden treasure and wrecks with lotsa gold on there you know they're going to be digging through the landfill to get that hard drive well you know there was another gift and that is the tax reform but we're going to get into that the next episode because you talk to michael penta when we were in new york and i'm going to save that for the next episode but because we're talking about in the second half you have a very fascinating interview with this guy with about handbags and michelle locks going to really love that interview because i want to talk about stores a value because this is been a big debate and spend rejoining obviously this big cash because mine. versus bitcoin cash all these sort of is it a store of value is it a means of exchange what is because well investors are dumping gold to buy bitcoin say strategist a key trend of the gold market has just been broken and big going could be to blame

the gold miners e.t.f. d.d.x. is falling nearly fifteen percent from its september highs while gold has plunged to lows on scene since the end of july this is curious says larry mcdonald head of u.s. macro strategy at a.c.g. analytics as the move lower in gold has also been followed by a move down in bond yields which according to the strategists is very rare of course after this article it did kind of swap a little bit starting to rise and start to rise as well but yes well we've been saying this for quite some time there is a move out of everything into bitcoin and this is part of the big black hole is pulling gold right now gold and silver is being pulled into the big black hole because it's a superior store of value centrally and nobody wants to carry around pounds and pounds of silver in kilos of goals and really i mean when you can put all this on a thumb drive or memory wallet and then lose the memory wall it. and then end up in

a landfill picking through diapers looking for an old hard drive so he says that there was an eighty two point zero percent correlation between bond yields and gold and that spend broken at the moment because of bitcoin is what he blames he also sees that there's more downside risk to gold because he says if you add up all the cryptocurrency and the liquid gold that is in the market right now the cryptocurrency is a market cap are now twenty three percent of the liquid tradeable gold that is up from two or three percent a year ago so crypto currencies are definitely eating in to the gold play well you know gold is not a finite supply you know they're adding to the tons of gold mine every year hundreds of tons of gold that it's a supplies supply is expanding in twenty eighteen what will see our central banks adding big oil into their strategic reserves alongside gold so big gold buyers like china and russia will be adding bitcoin to their strategic reserves some banks

possibly in venezuela they could completely change their fortunes in the global economy by switching over to crypto switching over to bitcoin and then that will set a precedent for other countries to follow suit in fact both garia has like three billion dollars worth of big coin that they seized from some scam so that's actually the benefit you know in the early days of bitcoin one of the things that was often said by governments you said threat and they were going to shut it down or attempt to shut it down was that it was you know a haven for you know no good do gooders like drug runners and drug cartels and hitman and all that sort of thing but a heart of those people a lot of the scam artists on line scam artists and shakedown artists are based in places like ball garia romania so the fact that they get to seize the assets of these bad guys you know you become a safe haven for bad guys and you can seize all their assets that's right it's not a bug it's a feature look i'm talking about bad guys and money a lot. yours and evil doers and crypto currency is let's not forget that it's

estimated twenty to thirty trillion dollars held offshore unaccounted for by any tax authority that money is always looking for a safe haven is that money is always buying fine art and yachts and that money is inching its way into bitcoin that's another you know ten thousand percent gain right there from current prices then you've got the hedge funds nibbling at it then you've got more apps like the one from. the cash you know that people over there where square you know they've got a cash you know that's going to compete with coin base and it'll be millions more people getting into it you mentioned hedge funds hedge funds are pulling out of gold and seeking thrills elsewhere hedge funds are pulling out of gold bets as more exciting equities and crypto currencies make safe haven investments boring money managers cut their bets on a bully on rally at the five months as prices headed for the worst quarter five months as prices headed for the worst quarter loss and

a year speculators are throwing in the towel as the metal failed to sustain the gains that took futures to a one year high in september of course throwing in the towel is a good time to start investing right there's a concept in investing called capitulation when all the sellers have sold there's no more sellers left you know and then any buying on the margins will start to rally and you start the whole process over again on the bull side so i think twenty eighteen actually in a contrarian point of view will see gold it all time highs which would be roughly a sixty percent move from here let's say which is not very interesting if you're a crypto is enthusiastic but nevertheless it would hit a new all time high yes some of the old coins especially because they're lower market cap. will rise like up to seventy five percent in a day so it's pretty crazy but speaking of bitcoin and hedge funds bill miller's hedge fund has half of his money and big corning bill miller is giant in the investing. space he was at legg mason for thirty five years he founded their s.

and p. five hundred investment fund at legg mason and remarkably he says that there are fifty percent right now partly because of the price rise he got in i guess and before six thousand dollars. between a thousand and six thousand dollars he got in and it's because of the price rises now makes up as a percentage of his fund it's fifty percent bill miller was beating the market for decades and then he had it down here for a couple down years he kind of retired and now he's reborn rising like a phoenix in the crypto space and as his performance numbers come in pentair capital i think is the name of the group they report of twenty four thousand percent return on their crypto portfolio versus let's say quantum fund which is george soros and jim rogers they were considered to be one of the best minds in

finance they generated something like a forty six hundred return percent return over the life of that fund approximately ten years they're considered geniuses here pentair a return twenty four thousand percent in less than three years or maybe just for one year so this obviously is going to attract that multi-trillion dollar hedge fund market plus money managers like bin miller plus sovereign wealth funds remember that some more trillions of dollars waiting to be invested in crypto plus the central banks so the amount of buying pressure ready to come into the space is in the multi hundred trillion people are piling in and now they're piling in against the likes of bill miller and all the early holders and the the people who have been around in the space who have survived at least five or six down markets of fifty sixty seventy up to ninety percent so people are piling in and i do notice something that's happening is that they're just looking at the price of whatever small whatever one of the. i was and all coins are tokens is and they're thinking

all of it will go as high as big corn and they missed the big queen ride so they're going to invest and anything that's under like one hundred dollars and hope rises and there it has of course as they all pile in it's their tiny markets and the pile in and drive the price up so there is a bit of a. speculative bubble going on there in terms of some of the coins well you know people compare let's say like coin charlie at least going with silver and bitcoin being the gold of the space and then interesting comparison there because if you follow gold and silver you know that when gold moves so over will react more aggressively on a percentage basis and i think going forward anyone who's interested in this point is a core position and you nibble away at these other coins but you need to own as a core position because and then learn as much as you possibly can about bitcoin then you can learn about why these other coins are different than bitcoin but

because it is the gateway into this whole universe and you must begin there well you as when you were a banker you saw that a lot of people would say oh warren buffett's shares in berkshire hathaway are way too expensive it's like three hundred thousand dollars that's too expensive to buy all the nineteen early one nine hundred eighty s. they were at two thousand dollars and they were considered you know a lot of brokers i was working on wall street would say are you kidding it's too high you know now they're pushing you know three hundred thousand dollars prices really have meaningless metric in many ways. but that unit bias some call it they soon because of the multi tens of thousands and this one's an eight hundred therefore it's cheaper that's that's not correct there's no correlation between price and value and you say cheaper i like that and i want to say the correlation between price and value that will offset the bias towards lower prices our friend michelle locke over at miss talk dot com thinks that buying a coach can bag or something like that for. sixty five dollars there was

a famous bit where he's like look why are women spending twenty five thousand dollars on this jerk birkin handbag guess when you can get this one looks perfectly fine to me for sixty five dollars yes and you do talk about this in the second half but before we go tell us what is that password stacy is my goddess stacy is my goddess i friend slash five seven four hyphen dot net stay singing well stay tuned for the second half are going to be talking about him bags don't go away. was writing insisting that rachel not in keeping him i am. i was to twenty list. because they. must i.

mean you when you could talk or knew what it would be it's new but when you don't need you to brush it off thought it was. oh yes. yes yes. yes suck. don't. you do some jewish when you write. you think you're the purest misting discussed but the custos through me just turn over your.

in two thousand and sixteen the panama papers show the world with a tax haven the secrets two trillion united states dollars pass through most. in the amount of time that we've been in panama papers exposure that's what it shows a lot of money it really is. journalism it's an act of journalism looking at things that people want to keep secret and asking why would they want to keep these things secret. millions of. don't you months were examined. me all the people which basically have tried to get an advantage out of this sort of newspaper. and probably other politician which was attacking other politicians the media would point to find their targets such as the kings of morocco and saudi arabia the president of argentina several prime ministers. and

russian president vladimir putin of course. oh my god i've had so i have sued so many newspapers for defamation some things don't just happen by chance it was very striking there were no more americans to go especially a lot of people from the brics countries specially brazil russia and china their special project reveals what was missed in the media coverage. of the panama chronicles. welcome back to the kaiser report imax guys are the day after christmas show where santa claus gets you did sad to bring you one of these oh this looks nice let's learn more about it from jeff burke jeff welcome imax could be in new york current jeff burk also talk about handbags and the birkin bag what is the broken back

phenomenon from a business point in a fashion standpoint this this bag was conceived by arm as far back as. this is sure is named after the famous celebrity actress jane birkin allegedly made by irma's on her behalf but what this bag has done it is rained world champion of luxury and sophistication to women around the world if you are a guy who deals in bags the types about high end bags if you've got i guess an instagram presence yes we do and a quarter you say you do fifty five million dollars in revenue since two thousand and one two thousand and twelve to two thousand and twelve excuse me in bags yes and this bag would go for what in your market in our marketplace. if someone walked in irma's and bought that at the store which is otherwise impossible to do it's twelve thousand dollars bag the customers around the world

that want us to get that on their behalf depending on how hot the color was that's a hot color they're paying us between eighteen and twenty five thousand for a twelve thousand or so and this is a limited edition obviously back right that mean they there's all broken bags they sure are these are variations on that theme that's right so and his own broken get a kickback on all this jane birkin jane burke oh jane burke and i. don't apologize she sold the rights to the company years ago really yeah ok and so this is the reason we're talking about this today is because. you know this goes back to one of our. mike said locke oh who we had on and he said he couldn't believe that women pay these prices and collectors pay prices for handbags these extraordinary levels but why not i mean these are these are socially collectibles right yes they're and they're in high demand super high so why wouldn't people pay up for them i mean it's really as far as erm is concerned it's not just

a question of ability to pay it's how they select the customers that they give the opportunity to pay for the bag you no matter what your celebrity status is or florence you can just roll in urban and say hey i'm wealthy what i hear about this broken back is i want to buy one today why not there's a very limited supply the one in your hand i'm going to have to guess takes between forty five to forty eight hours to make those handles literally takes six hours to make of rolling on a craftsman only so what that is a very limited supply and what her mrs has is an articulated system that they're saving that twelve thousand dollar bag for the v.i.p. customer this coming in to buy fifteen to twenty five thousand dollars of other stuff tabletop bedding apparel things like that oh right ok and what is the pay to pay to pay system the pay to play system is something we've coined about what i just articulated to another example is this bag right here is what is called industry was an exotic being crocodile alligator ostrich it has a us retail of about sixty five thousand dollars and in order to be able to get the

opportunity to buy something like this the customer is going to have to be spending in the store sixty five to one hundred thousand dollars and other stuff in that calendar year in order to be offered the opportunity to buy one so now again no idea how this all works and this is another variation on it what did tell us about this fabulous bag this this fabulous bag is actually a fabulous bag if you're a birkin geek it's a color called the goon and they only made it for a few years and they stopped i think in two thousand and nine and when i gave you that estimate before it is someone pays us between eighteen and twenty five even though this is a used bag in our. which is an unused bag even though this is a used bag the color isn't super high demand because they simply don't make the color anymore and women are willing to pay it for used bag because there's no woman who got this crazy color who didn't use it so the opportunity to get something in the news condition is almost impossible is it is the market primarily women oh yeah

and men buying on the back for their work for women ok and so this is do people actually go around the street carrying a sixty five thousand dollars bag hopefully not in the rain. this is alligator so it should do well as. you know a lot of people talk about the birkin is an investment and i think i don't know if it's technically an investment but you do have to treat it well if you want to retain its. right and this is is there are like you know collectible cars or ferrari's and what not there are certain years that are better than others vintage years yeah design applied to this market i would say that the irma's birken customer is a parallel universe to the guys that you're talking about that they could sustain something how does a nine hundred sixty seven mustang still worth ninety thousand dollars guys who support the marketplace i would say there isn't so much of into year for this stuff as much as there are vintage editions you know this for example to google and i told you about it was a very short run that this particular color was made so it's more the collection in

the color than the year itself so how did you get into this i've been a luxury in finance my whole life provided a.b.l. financing to some of the biggest retailers know she goes companies in the world and we took a lot of merchandise in possession back reselling it and my wife started taking around on e bay and with watches and jewelry and we sold a couple of these for girlfriends or is it needed money at the time and she was just blown apart by the feedback and she took a quick analysis like who are all the second place people out here doing that they seem to be like women with a not so great website and maybe on e bay and that was likely to thirteen and she said you know no one's doing this on instagram yet i could figure out the hash tag of house tag berkin hash tag thirty five centimeter perkin on and so forth and she started buying and selling them and she had a theory on how to execute and that's where we've stayed ever since i miss summerson my situation you wife is the brains of the operation. absolutely. lets me

stay up front while she's moving back all right so how do people know that you're going to deliver such an extravagant product you know what's the trust factor you have like a rating system or how do you how does that work you know that's an awesome question it was hard in the beginning because. we were always forty percent of our business is international thirty five percent it was just the middle east alone so yeah even today is because we are we have a superior reputation in this genre you know what makes a woman in buenos artists take that leap of faith to wire a seventy thousand dollars without using her credit card and it's every single woman it's as opposed to kate a customer generally they're a highly educated customer and they do their diligence and what we do is real and our service is exemplary do you buy bags that's our difference if i if i say so one of the things we're known about is our superior collection there's tons of people around the world who do what we do and

a lot of them we're have friendly relationships with do you have a black mat so black yes we do a trade a back and forth to do you have the biggest market maker in the world in these bags we by accident set up an international trading platform on our instagram account providers and traders could move products in and out it's amazing to me that you create such a big market on one style of bank i mean there are many ways do they do other styles of bags or is this their signature back sure no there's a few other bags that we still still sell if people come out because for it's called the kelly and it constance and there's less down the food chain in those other. least expensive bags you can go buy that was the dermis so there isn't the inaccessibility for this or the mystique that this bag is they're amazed they think the big bag in the big name and bags and for the forseeable future really won't change the way that they're doing business they won't change this pay to pay system that they had because their wall street stock darling you must be aware of this i mean the cast has a huge shadow over prada you know the amazing caring and it's

a lot because of this mystique that they have this is james product jane birkin the wife of sarah's games borke that james burke and the jane birkin the is that the right jane burke actress musician cultural icon the english woman french she's right of french guy james burke and she's american she was right to the series games borked. i don't know if we'll find out more details about this and do you have any personal favorites yourself do you follow this market or are you just basically. were you expand into anything else are you going to stay pretty much in this in this area would it be an expansion into something something else more and more a guy centric for example is clearly very female centric is there anything else that you would look at it's an awesome question it's a debate that we have almost every week you know what do we do you know we have a community but by my metrics and i do a lot of research irma's is very cagey they don't give out. production data they don't talk about what they do when they do how they do it but by my long research

even though i'm proud of what we did i believe we have less than five percent of the bags that are being bought and sold all over the world i think we have a lot to do by just getting off instagram but as a man i appreciate his commitment to quality i appreciate them as a company i've got enormous briefcase that i'll never sell. so many cases don't have the same cachet you'd be surprised you know my wife put my briefcase a couple times that we had some pretty aggressive people. asking for what what what is the future of this whole market do you see it is a totally reliant on the luxury goods market in other words if the luxury to be seen during twenty twenty two thousand recession for example how did that impact your business although you came in a little later than the genesis of this is two thousand and twelve i was up to my eyeballs in the luxury has business in two thousand and eight i have a lot of comments around ok dancer question about this point going forward i think the real future for luxury isn't so much as the fashion consumer i think still we

and someone like a philips auctions who's done dynamite with the collectible watches they just adopt whole new monroe looks like seventeen million i don't want to say we're recession proof but i would suggest that our customer and the watch auction customer is almost impervious to this and what these people are spending big for now we set the world record for three hundred. back last year in the wall street journal broken with the super f one a willing to do and excited to do is get something that nobody else has it's not so much a symbol of getting this bag carrying it isn't so much a symbol of hey i'm wealthy i could do this i have a competency i know how to get it right and they hold their value pretty well super well so then an idea like on an annualized basis what the appreciations band any numbers on there is if you went and googled. birken is an investment fund thousands of articles on how it's outpace the s. and p. presence in the last thirty years outpace gold up post oil. it's all true the bag

right there is a used bag also that white one and that was probably a five thousand dollar back when it was made in two thousand and three and we're going to sell it for nineteen so take that for discount people find a way to do it it's all an instagram muscling the interface starts off instagram but there's a whole community like these car geeks were talking about this whole community of blogs and forums where women are going on twenty four seven all over the world can you trust this reseller have you had experience with this reseller fair enough jeff thanks for being on the show thank you also and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert like to thank our guest jeff burke he's the man with the bags if you want to reach us on twitter it's kaiser report until next time.

snow good bridge to come in the studio to eighty. thousand. into. this so the poor. join me every thursday on the alec simon sure and i'll be speaking to guest of the world of politics sports business i'm show business i'll see you then.

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