probably going to wipe out a whole generation or two crypto currencies are the only thing is going to save these people and us from being fired so we're going to middle of the group the currency market because even if we get a little bit of those gains we've had a last ten years of big going it will save us from having to report big red negative year on year returns on every single piece of money management business we touch so they're like oh yeah we want to save our job well you know too late the millennial is are going over to the cash up to jack over jack dorsey thanks jack they're going over two point they're going yes square that is the square cash up the square not to add up i got a lot of big big in wales. shown. me song the most trusted name in crypto this. what are you going. les we don't want to tie into anything but let's one goes the recognition yes he does like

you say his name and but you know it wasn't in modern or ok j.p. morgan is now kind of on our you got to get into it j.p. morgan had deny deny deny deny the power and existence of a big way now they're they've capitulated and they're accepting it now they're right in between bibles the other argument by no corners as they're called has been that until you pay taxes in your with bitcoin then it's not a real currency and arizona senate passes a bill to allow tax payments in big coin there isn't a senate passed a bill on february eighth to allow residents in the state to pay their taxes with cryptocurrency as public records indicate the senate bill one zero nine one which intends to enable cryptocurrency ease not just because for tax payment was introduced january tenth twenty eighteen passed by the senate finance committee by a forty three vote january twenty fourth on february eighth the senate passed a bill by sixteen to thirteen margin with one novell j. records it's got to be felt like a i'm a ted right is still has to pass they're going to ask here shift there like man we

were so wrong about this big going thing we could have been more wrong. so oh so before i forget we said we mention that guy michael and josh. for saving to anything but we promised we'd mention them a hi michael and job or thanks for a great evening by the way those fun in cancun. by those guys are great with their you know sort of super they have a lot of inside dope on who is really should toshi it but nobody in the global audience watching this knows what we're talking about there but regarding you this be any different but we guarding this ok so i saw suppress the arizona house of representatives and what in particular the guy who sponsored this bill arizona state republican representative jeff wedding or who co-sponsored a bill said the tax measure intends to turn the state into a center of blocked chain and digital currency technology in the future so that yes i know whole whole whole full. price you pay for

manning the barricades well this is obviously great news and everyone who said was the use case of a coin like you care projections are that they're being proven wrong by state by state they will adopt these policies and all but pick up to the federal level especially as the price goes on or thousand for a federal level we could just forget about is the states that matter in the united states and so the united states isn't it so united states yes you know it's just a certain united they're saying follow us punk you know that's what they say to jeff sessions or whatever in a hollow follow what we're doing and he this guy by the way this representative from arizona says that this is just the first of several bills that he's introducing are co-sponsoring in arizona to make it a block chain friendly generally say of course you know all those senators and congressmen who are against gay marriage and they find him in some hotel room with a rent boy is jeff sessions by extrapolation a pothead we'll be discussing that in the second half don't go away much more coming your way.

join me every thursday on the alex salmond show and i'll be speaking to guest on the world of politics sports business i'm showbusiness i'll see of that. so i have all the seasons as i need it back to says they are precious oppressive measures being deployed against the palestinian people everywhere and the set of colonialism the theft of all of the land and the many many can hold on to the stating things then there are many ways of doing of course the gun calls and the intifada or uprising. welcome back to the kaiser report imax keyser time now to turn to mark hughes is

the founder and chief investment officer of mortgage create capital management mark welcome to the show thanks for having me all right we're going to get to the big stuff in a minute absolutely put this in context so first of all how much do you guys manage over there roughly about a billion and a half ok so you've got to do asset allocation and look transitor trying to put money to work where it's going to get the biggest rate of return you've got some themes demographics and health care number two energy and natural resources number three growth of emerging market consumers for wealth transfer to developing markets so this just touch on the demographics and health care market used to go what do you see there pretty simple the west is getting old and the east is very young we think that they'll be too big trends one in the west where you need a lot of biotechnology and a lot of medical devices we're spending more on looking better living longer and in the east where they have young populations they need health care services pharma so

she's a great opportunity for health care broadly energy and natural resources market look energy is is ubiquitous we all need it we all are running out of different forms you get the alternative energy process or processes come and there are very interesting solar now in florida the fact that solar prices are so you know dropping down like the same way we saw microchip prices drop down in the curve that they support a curve down of their zero and how is that really having a big effect huge effect and you know it used to be grid parity was a pipe dream but now grid parity for solar power is real grid parity solar is on a parity with the current energy grid getting close not as good as hydro or nuclear but it's getting right there with you know natural gas the buckminster fuller said the earth gets a thousand times more energy than aids every day from the sun exactly we're just catching the. right now fantastic growth of emerging market consumers what is happening we are about to enter the largest consumptive boom in the history of

mankind and i'm a hyperbolic person but that's not a hyperbolic statement there are three billion people that are about to age into the prime consumption years forty five to sixty five around the world they've seen our life and they want it so whether it's in asia whether it's in india china malaysia indonesia you most people have no idea that indonesia is two hundred forty million people a huge huge place and they're starting to consume just like we are china is about to go from a manufacturing economy to a consumer economy and they've brought into the middle class a huge number of people and they're going to consume a lot of stuff india not this year the next year but over the next thirty or forty years is going to have the most well educated wealthiest workforce on the planet and high working age population growth which means high g.d.p. growth now this is happening at an era when technology has brought consumerism a different spin on the game with sites like amazon and elsewhere so when you think

about consumerism and emerging markets like first thing maybe a procter and gamble right they shampoo and health care products and deodorants and stuff the p. and g. does and these people are getting the design or you know side of the law but does these technology platforms like amazon are going to grow their own amazon or is amazon just going to move into these places great question and it's really they're going to leapfrog just like they did in wireless and they skipped wireline with straight to wireless so they take advantage of technology e-commerce in china is one of the biggest trends really going out there and get all the baba you know not much ten years ago today one of most dominant players on the planet ten cent and we chat huge huge platforms for commerce think about this every day last year somebody boss stuff on a mobile phone and two hundred forty. million people in the united states bought something with their mobile phone seven hundred fifty million people in china did

the same thing e-commerce over the next decade cordin mckinsey will grow twenty six percent compounded for ten years the mobile component of e-commerce grow fifty one plug in one point five one to the tenth power in your h.p. twelve c. you and i from that era yet sixty five not sixty five percent sixty five x. so the market for mobile e-commerce in china is going to be sixty five times larger a decade from now well transferred to developing markets where the wealth transferring from and to where creditors always win so think about when europe had all the money and we were an emerging market back in the eight hundred sixty one nine hundred twenty s. and then they got very indebted and we took all the wealth same things happen now we now are fat dumb and happy we've got too much debt whereas all owned by emerging markets so the wealth always flows to the creditors so there's a symbiotic relationship between china and they were us where china is reinvesting all the dollars they get and take all the cheap goods. and they kept the dollar

support as support of the dollar use to be that way right is that breaking apart oh yeah bad badly my wife kimmie is an english major so you know here's the thing if you think about our money and it is as if. michelle your wife's not here it's exactly right i was here but she's busy outside so i can just rip the grow your grammar all we want are just bad yeah not bad or bad all right so if you think about a friend of mine had a has a daughter and four years ago she came to daddy i thought you said santa claus brings the presents so when he does wives why do they all say made in china four years ago up to today used to be about made in china and we were buying their cheap goods now as they become the largest consumer market in the world is about made for china so all this rhetoric from the trunk ins about how we're going to start a trade war no chance the big. market in the world is china to send our goods to they now buy more oil from us than anybody else it's not changing in time and

that's bad for the dollar the dollar is in a secular bear market and people don't want to acknowledge it they don't want to believe it but it just is look we're reserve currency status you don't keep it forever you keep it usually sixty seventy years and then it goes to the next and it used to be all about powerful navy now it's about the power of information data and consumptive brown and the navy reserve cars and portugal before that friend was on their list exactly now we're moving away from the u.s. as world so you look at it so the old on the dollar index i think the lower seventy currently around ninety yes they are going to break below seven they get if we do these ten surprises every year so my surprise last year is that would go down everybody thought it was ridiculous this year said we're going from ninety to eighty and i think the next year after that we probably go eighty to seventy so seventy is a little aggressive right now but i think we're there long term and near bullish on gold kind of bullish on gold i mean i like gold the problem with gold is it can be

and has been i think manipulated so that's a challenge there are too many short sellers in the world of gold but long term relatively bush thinking about gold it is a store of value has been for five thousand years i mean for four thousand of those five thousand years an ounce bought a fine man suit so now it's going to become a first of all you have a lovely time ras it's a gold equivalence. but this little scales got big coin on one side and gold on the other and that was sent to you by the fine folks at vanek ben ecu and i guess they have an a.t.f. product they're working on their own working on they're working on you know they they're very bullish on because i know they are and so as you are and you run a billion plus dollar fund how aggressive can you get into big going how do you plan bitcoin is really for because tell us yeah you know look we have played picks and shovels primarily so far we invest enough. of the venture funds that have been investing in things like coin base and corbett know things. over there we're not

with barry but we're with dan morehead upin terra we're looking at life and capital and stephen's brothers so like those guys i think barry's what he's doing is really great and we're looking forward to his next offering we've done a little bit in the actual cryptocurrency is the challenge for institutional investors most of our clients still institutions is custody and until somebody solves that custody you know it's funny they won't custody because because they can't take physical custody but what are they doing with patents and what are stocks and bonds are not really physical bare bones anymore they're ones and zeroes so i'm not sure they're just not hiding behind they we don't understand it so we don't want to do it yet well a couple of swiss banks are now offering custodians services i need to talk to you again so i just read about this is pretty this is new our friends over a gold mine where i said bag are cool now off. to study the services i'm going to be on a soon as we leave yeah i get a. like a free hat or something because before that roy roy you promised me a t.

shirt i got so far i got nothing i want some of them in a jewelry you know they owe us that would be nice no i mean it's one i've been i say. let's talk about the regulars out there so the see you have to see chairman. he came out here practically gave to call it a wet kiss you know so this is the currency of the millennial and we're going to be a little lapdog over here we love you kids we love krypto my kids play with crypt oh how sincere is that look at think it's sincere and i think it's real in the sense that a couple things about the f.c.c. and see if you see it all these regulatory bodies don't have enough people they can barely cover what they have to cover now the idea of trying to go out after the new hundred forty funds that are now you know trading krypto and and all these new big exchanges that are popping up they don't have the money you mentioned just a moment ago a mark that gold price was maybe. it from performance to manipulation and then manipulation the same simply. blatantly in front of the face of regulators like

silver was a car children before this guy was brought to clean it was given air fuel evidence and he same didn't seem to see what was right in front of his face so you know there's seems to be a conflict where am i wrong look incentives matter did i just lose half your clients are going to not i mean look i talk about this stuff too and the reality is it centers matter and people do with their incentive to do and you know j.p. morgan had a lot of short gold and silver positions and they need someone to take the other side so boom we get an e.t.f. long goal but that is seemingly going to happen here in big coin and block related crypto related assets and it's a process we're still very young if you want to but which inning were it when you started the game well i can pre-game warm ups all right as you see chairman clayton there taking a more group i think aggressive and sterling has i.c.'s you know they should i've been in business for thirty years i started a wall street you know they all the i.c.l.

survey looked like the offerings and offerings are regulated and so if there are going to see some action there anything i think we are to think we haven't they've gone after two that were really egregious. look if you look at any organized exchange over the years there's always been abuses at the lowest level right penny stocks were run by boiler rooms they called boiler rooms for a reason not because they were nice people so when i would write the tory body has to look into something new they have a choice where they're going to go they're going to go after what seems like a legitimate transaction like that a big coin earthier him or they want to go down to this level of pump and dump ponzi schemes in and i see oh that doesn't mean all i see those are bad doesn't mean all tokenization is bad look i'm a huge believer that everything in the world this building we're sitting in somebody's going to tokenize fractional ownership twenty four seven global liquidity. that's far superior to locking up ten years in a partnership and have two to your extensions and pay two hundred twenty so. let me

just ask you and then it came because they for the segment before we go though so you put out a four hundred thousand dollars price target on a bit calling. to get there all about the tie gold equivocates right about that oh i'm going to quit your entire hours of a pony or something like i just told equivalence and it's pretty simple and how can you make such a simple argument like because that's what i think we're going to me in it's current form and current technology is a store of value digital gold goals an eight point four trillion dollar market twenty one million are really twenty one million there's going to run they're going to go all right don't go away we'll pick up right there on that exact point thank you thank you and that's going to do it for this edition of the kaiser report was made max kaiser and stacy ever like to thank our guest mark he used go of morgan to create capital feel to reach us on twitter is kaiser report and select time.

i. used to meet spokesmen. just music was the in the booth of which is in the local new creations a. little bit the local jessel must try. to get.

this. welcome to worlds apart when you look at value surveys russians are not that much different from the european neighbors when it comes to individual rights and freedoms except for one thing they have

a very alone tolerance of uncertainty politically that translates into a strong electro benefit to the incumbent making power transitions in russia rare a precarious will the russians ever stop playing safe politically all to discuss that analogy i made michel good call for russian opposition politician the former member of parliament mr it's good to talk to thank you very much for your time now you're not running. in the russian presidential elections but i think you may have contributed more to voters in gauging and then some of the candidates are really appreciated the program that you created in the listing citizens or voters as monitors which i think really helps to energize the base but why do you think projects like this capacity building projects democratic projects like this so rare in russia you don't. think that there is a good threat is it to produce a bid in the election and if we don't thing that it's a real elections because you know one of the. critiques at least in the army

just was bound to produce a billion there's a lections there is a serious police in the position so. listen i want to launch an electoral campaign to break all those elections i soon that we need to support those cordons critics who will be in the belak list so or try to unite the people from different strategies into the one project we would like to organize over is in moscow in order to provide every polling stations with at least two or worse in most schools there are three thousand five hundred polling stations and we would like to recruit seven thousand people to more new tour elections in order to create a big political force for the future elections in most school in the way relations and i are going leave those people yeah you know the way you phrase it you pursue obviously a personal goal but what i find actually far more important is the citizens and

gauge of it because in russia politics is still about getting votaries we should i think is a rather primitive very limited form of political persistent patient being monetarists requires a much bigger commitment it's just fourteen hours of monitoring on the election day a plus all day education the training that goes into that. in my view that's much more important for democracy than whether or not you win actually yes of course because all these people will be involved in the politics it will be very important for the future elections for all democrats who are positioned looters and or comforted so we will need to work of the grassroots level this will help us to win sometimes maybe in two thousand going to our big because the main goal of the opposition to be represented in the parliament after two thousand point two one the we're creating and we're trying to create a big political force in order to go to unite all people who want political force

and political parties now it's very well known statistically people in urban areas well differently from people in the countryside or in the national republics and it is believed that the number of voter fraud is much higher in the countryside in moscow now you said that you have a very clear political interest in moscow that's why you're doing that from a democratic point of view when it has made my job better sounds to go to the regions and ages the base there rather than saying in moscow where already people are quiet engaged politically very is another strategy are we should to normalize people and be serious we need to. to convince them to come to the polling station to go with we need to raise a turnout in big cities where we have more chances to win and that's why we decided to work in moscow and ten percent of voters of russia. so we

come to the municipal complaint in moscow we have two hundred sixty seven independent deputies we have majority and seventeen districts in moscow. in two thousand and ninety and we will have a municipal campaign in some pictures of her so we will try to repeal this. serious i think that campaign actually was. groundbreaking in many to give the credit to you whether or not they support your idea logically but i read in one of the interviews that you while you were helping in selecting those people who were running for the minister knowledge if you ask them questions about what they think russia's policy in ukraine and what they what is their stance on crimea why on earth do you need something like that why do you need to bring big politics into that rather than focusing on that capacity building and the gys in the base isn't it more important to work with the grassroots but why why then he asked them about their views on foreign policy because you know what i was sometimes a member of or just russia. or what happened to this part to. this part has been

destroyed. there will there was a sewer split between people who supported putin and who wanted to oppose supporter that's why we decided to support all of those candidates single minded people people who share the same values we support of those people who want to restore relations with the west with support of those people who. want to have a democracy you know or cannot be a people in the municipality need to take care of the yard or if the local corruption or is all of that they don't deal with ukrainian issues etc why don't you need to why don't you support and educate people off any political persuasion because we we want to unite people with the same values with the same ideas and it's very important because the today they have all like lego for florida's but

they want changes not only in the district not only in more school they want changes for russia. to more room there will be united in the political party that you share into saying well yes and it's very important for us but people who support cushion and people who support you may actually have the same values in having the rule for him having local in gage meant in having. you know corruption compay in both why do you people have been it's impossible. because. i kept most of them that people supporting who put two will be members of our political party well here i am with the example just as i told you before the beginning of this program i recorded it into your monitoring program but i'm more or less proportion but i do believe and i think i've been to some of the training that your party has organized a lot of those you're exceptional no no not at all there are

a lot of people many ages of many political persuasions what actually are interested in making sure that those elections are conducted in a free and fair manner in accordance with the law if you think this is really really high during gain some so super in the media absolutely yes but who is for that how can you support pushing. that in this case you should share my will you somewhere ideas and support with a good call for my supporter and to meet with your ideas we want to get a preview of the some super media but it's not about devaluation when you deal with the country to deal with their current problems and i agree that the t.v. environment the media environment in russia is constrained but i don't think it was i think that you were for the independent court system the right absolutely of course i am for the independent course and i'm sure i'm glad you put in a independent learners is only the newco so you supported these scones with usually legislation the gives him the authority to appoint judges for example so it's not

a vote independent core system. of changes for russia well i don't think he appoints those judges and gives them that permission to be pliable to outside pressure and i think on a number of occasions he also talked about the need to reform that system and in fact from what i know he has actually just initiated the ad in the other justice reform that was long advocated by alexei kudrin the well known liberal and i'm sure the person who you'll share some values with so there is all. always and work all hour of their lives to cauldron is going even the member of the government appears still very influential or what do you think it will do me and very influential well if the person in his program was accepted as a blueprint for reform there and if was are you going to remember what you manage to carry out if you if you look at the polls and the latest other polls show that there is a strong demand for change in russia i think we're with agree on that and even put

it would agree on that but i think the way this demand for change manifests itself in this country is people saying we wait for the changes we want the authorities to make the changes to remember that famous song by a victorian soit we are waiting for the changes rather than saying we are to change and there is a fundamental difference between these two positions where you place the authority but they replace it with the they the government or with yourself that thing be changed about russia people's expectations of who will be there are running the country whether it is the government or whether it is. i think that people don't like to take risks they want changes but they want to take risks and i don't believe them the figures of the polls because i can give you some interesting facts about russian polls for example according to the polls putin has said it is six or eight to one percent of support things that i'm so lonely there are seventy i don't

believe all those figures because according to the same polls or at least one third of people never tell the truth to pollsters because you can imagine if somebody comes through a door or coal you and ask if you supported greens to put them is better to say yes putting of course it's the most popular politician in our country that are some doubts he has maybe fifty six fifty eight percent of support which would still be enough for him to curing the illusion of fear of the police to get a bunch of. eighty eight who can read the book or who are good. the other day in the room par you will find the same figures so all about your have fifteen percent of support in the eight to eight in to eight to nine you have fifty two percent of support just one year before that and the one part of mr because i don't believe your story and historical parallels i think i don't think they ever of work and this is perhaps simplifying. the matters a little bit but can ask i.