oh what a fantastic time so much crypto happening here that i feel like gone krypto paradise krypto per the zero. zero maxim fact we are in the condo area of puerto rico just outside old town one you will hear the waves crashing on to the shore right behind us there are a lot of people here still pitching i.c.a.o. this initial point offerings and you would think that they would be a little bit worried about after all this subpoena all the warnings from the f.c.c. from the c f.t.c. finn said which is the most worrying of all because of course that's part of the u.s. treasury and they can throw you away for a live but i want to look at a headline about a start up in the old fashion world and that's part of why combinator went to silicon valley startup incubators and this is illegal apparently a startup is pitching a mind uploading service that is one hundred percent fatal so this is

a company called next tome and it's founded by some guy robert mcintyre and basically you'll be able to load your brain. on the cad jazz and you have to basically have physician assisted suicide right well it solves two problems with one great start up you relieve yourself of the burden of this mortal coil and you achieve immortality is a v. the psychological imprint of new consciousness to the close so it's very have been life is so good we're going to the cloud of the pearly gates of this but you know this is what happens during the whole process member l. greenspan news running the federal reserve bank that the economy is getting lighter by that he meant that we are moving away from an economy based on stuff ships and trains and trucks soon to be based on electrons and the little actual property.

financialization and the trend is only exacerbated to become more prevalent and more significant to the point where very little of our consciousness is now part of the physical world we're entering therefore reality we're entering a now phase where people uploading their minds to it and they're willing to trade their physical body in exchange for the promise of immortality because remember as we've shifted from the physical to the pure spiritual i guess you could call we've also lost all values associated with the physical plane the whole respect for gravity the whole respect for morality and ethics have now been reinterpreted in the gravitational liss ethical listen valueless vacuum of moral turpitude which is now the new reality or heaven as some may call it this is again a silicon valley company it's y. combinator the guy who's the co-founder says the user experience with identical to physician assisted suicide there are twenty five people on the waiting list

including one silicon valley billionaire who is in is early thirties and has already put down the ten thousand dollar deposit to have his brain look to stand shouldn't have to be part of the physical world especially with the ecology collapsing the way it is right i mean we find out that bottled water ninety percent of it plastic has plastic anywhere imbibing plastic we swim in plastic we live in plastic we live in a garbage dump and the bible says the meek shall inherit the earth these are the people that are too timid not to have themselves transformed into this new product available in the cloud assisted euthanasia in exchange for all of your virtual dollars now i want to turn to another big story that's happened while we've been down here we have the power grid here perhaps you talked a little bit too i guess john might about but before i get to that i want to show you what can be done if you look at the national security and what sort of deals could be blocked and that was chump blocks broadcom one hundred seventeen billy.

dollar bid for qualcomm out of national security concerns highly unusual move according to washington post donald trump ordered singapore based broadcom to bend its one hundred seventeen billion dollar hostile bid for qualcomm blocking what could have been one of the biggest technology deals in history and his presidential order trump cited credible evidence of the takeover threatens to impair the national security of the united states the merger would have put one of america's largest mobile chip makers in the hands of a company based in asia a region that's been receiving against american companies to develop the next generation of mobile technologies so of course that kind of goes with the first story is that if every effort all these silicon valley billionaires freeze their minds to be reanimated in the future and i'll put it to a cloud in the future whoever controls the cloud is part of this story here all of those bankers will do so in the name of living in a world of seventy two virgins bankers living in the suicide cloud there'll be

jamie diamond lloyd blankfein completely naked and waiting for you all you need to do is pull the plug and go into the euthanasia clinic enjoying the seventy two other banking virgins in the cloud it's a fantastic pitch i'm not sure i see oh should be worth billions more than the telegram i say you know he did this presidential order so it cannot be overturned by legally he had done this before the treasury came out with their report the treasury has the committee on foreign investment in the united states our city it's an interagency panel led by the treasury department bringing me back to what the initial point offerings and now that fin san is also weighing in on on these tokens and basically what they're saying about these token offer all these i see oh isn't this what like a thousand of them that they are money transmitters so there's a government agency called syphilis. syfy s o r i'm down for now. at the way they

might have their own way of pronouncing well that's up to subtle isn't so one of the reasons why. as i call c f i us was perhaps moved so fast they say is that broadcom was going to relocate to the us. in order to circumvent in order to perhaps get around any national security issue so they're going to pretend they were american but so basically what the president and the administration are saying is that they were worried that china's huawei for example who is their biggest competitor the next biggest producer of microchips the ones that are uses your phone so that and it will be used in the future basically electric cars to communicate with the grid and so they want to make sure that we we are still in the game so there can be national security interests that are still apply certain industries this is close to an industrial policy we talked recently

to michael hudson about that was to say michael douglas i had said about. you know an industrial policy for america right i guess is the key point here is that chump is willing to impose order to in the name of national interest even of my my not be welcomed on wall street in this way so this is of course strategic in the sense that you've got the president standing up for interests that are more akin to a national interest you know well the trend continue we said when he was elected at least i did that he could be a roosevelt type character and be a trust buster to start to break up these days of monopolies i still think that's a possibility unless you want some soft uploaded to the cloud it will be kind of of the cloud based people and he'll make having great again now i want to turn to another headline about national security and that is rebuilding puerto rico's power

grid the inside story it's a fantastic piece of machinery it is very long and but it explains the whole situation here it is you know about ten to fifteen percent of the island still does not have any power and this ties in with national security because. the economy of puerto rico why it is so bad it has to do partly with the national the state owned you know electric grid but back in the sixty's and seventy's the u.s. introduced tax incentives to get manufacturers to move here and in the south of the island the other side of the island all these big manufacturers came a lot of pharmaceutical companies still to this day ten percent of all pharmaceuticals consumed in the united states are actually produced here in puerto rico but as a consequence all of the electric power plants and most of them all the big ones the ten biggest ones are all oil run they're all in the south of the island which

is the way it that's the direction we are on the top of the north of the island so all of the cables and you know how the u.s. does unlike much of europe which is the cables are underground here they're over ground so all of the cables were knocked down in the hurricane maria and because it's also a jungle it's going over the hills all those cables are going over through jungles the vines although you know you think of a jungle it's all sort of a canopy of green it's all growing over all of the cables that a fall and so they have to extricate those cut their way through those to in order to get the cable to put them back up. just move the girl and move. a little remember that of course it was side story. stevenson wrote the book letter bernstein directed the music brilliant show a lot of people total knowledge about puerto rico is based on the stage about action of west side story and the subsequent movie. there's more going on here than

for a good one side story there's just miss utah. you have to learn how to speak spanish ok by the way we did pass that area of old san juan that was really quite beautiful i forget the name of it right over where pearl up her yes so seventy percent of all energy production on this island happens in the south seventy percent of the demand is here and holds on one area or other areas of the north so you have an a very very old electric grid the new governor is now trying to privatizing or or parts of it many people on the island are worried that there's no incentive for a privatized company to put all of the money that is needed to develop it and i want to say in the last minute here that we also have seen the emergence of a lot of micro entrepreneurs who are coming up with little sigh like micro solar panels on your rooftop in order to power your own little electric items needed in

your house because many people are still without power and there there is a new movement to use the national utility grid now as a backup and for the future because there will be bigger and bigger hurricanes and this was the biggest hurricane to hit since the one thousand nine hundred twenty s. early one nine hundred thirty s. that that you should take care of yourself essentially they should have your own energy sovereignty we need some micro grids we need a mesh sort of network so that you are never reliant on a centralized grid again yes a quick question that will go to the brick the energy needs that you're talking about there the way that they're geographically spread out it sounds like a her kilian task to bridge that gap there's tremendous entrepreneurial energy now on the island in new movie. you stacey is the wave of outsiders coming in and now are they maybe thinking a little bit with rose colored glasses in terms of what's possible given the immense infrastructure needs on the island or what you think well there are some

outsiders coming in and yes they have fantasies so many of them have a lot of money but there are indigenous local people born here eased here who are also there in the end the article points out they are the ones that humanly walk down the road went to these locations went to homes and introduced the solar panels so that so these are puerto rican local puerto ricans there entrepreneurs as well and they're introducing options it's up to whether or not. you know that that the fiscal control board will allow these sort of things to happen right now by the way the oversight board has actually taken the energy grid off the creditor list they're not allowed to seize it they're not allowed to take these assets at them at the moment all right well something will get very close attention to that it's going to be time for a little bit of a break so don't go away stay right there. well

you know that they were kind of adopted because we were called pirates for so long . of being there in this small ball of sticks in a hard pool of chips and it's. up to. the little self to make already ninety percent of it are caught in a ball and that connor. concept fifteen scoops seventy five tons and they do it several times a day with a clean oh you get an idea right ocean. we have to

understand we cannot stay still and just. be within this the deal for you is ours. i'm doing this because i want the future world to the future can generations to have and enjoy the ocean we have. how does it feel to be a share of the greatest job in the world it's as close to being a king as any job there is one business model helps to run a prison now we do this do or don't like is there nobody you know visitation i don't no one comes anymore we don't have to sarge them anymore is cost effective

that's what they want to do that at the moment they don't give a damn if you do the chores or not they're actually paying us to put it back into the louisiana incarceration rate is twice as high as the u.s.n. breach what she could is behind such success. welcome back to the kaiser report imax keyser time now to turn to entrepreneur michael turpin michael welcome to the kaiser report glad to be here it's great to have you on we actually we've known each other for more than twenty years right and you've been in the hot spots in technology one finds michael turban and that goes back to the dot com era and now we're in the crypto era and you've really carved out an interesting space and place yourself here in quite a rico you were i guess kind of the first guy to come down here and stake your

claim and you could say and so tell us a little bit before we get into the crypt space what drew you to puerto rico and why what's happening with that michael so i've always been someone who looks at fairness and about you know how to you know do something that will will will help myself my family and so i move from california to nevada right before i sold mark where my last company because it was crazy to be spending forty percent more taxes if i was living there for a global company rather than the data and when i started getting very deeply involved in the currency starting transform groups of the top p.r. firm in that area and advisory all the sudden i'm working with companies and i guess some as get paid in coin or in some of the other tokens like we launched the theory i'm and i'm seeing at the end of two thousand and fifteen the start of the trade and the prices just skyrocketing and so obvious that i'm not worried now

about the vat of tax i'm worried about long term and short term particular short term capital gains just thirty nine percent and puerto rico i heard from a friend of mine who is the investment banker who is selling i.p.o.'s in china and he's barely in the u.s. i'm still paying fifty three percent taxes because he had a home in california and so i look the puerto rico i told my. if about it she had only seen west side story and not the threat of a while on and she said i guess i can maybe do a little time in tax prison and they can feel it away from her she that's right and you know a lot of hedge funds guys have moved down here before you and you have john paul saying it. let me just introduce this idea because the way you describe it it sounds very dry that you know there's a tax benefit to moving down here and that's part of the entrepreneurial mix is you've got to look at your entire picture and maximize wherever you can but there's a cute ancillary impact for the crypto community coming to puerto rico it's twofold

right there's one is the local community is now getting to five and you can talk about that a little bit and then you're bringing in a lot of expertise and a lot of young talent a lot of fresh talent and that's adding to the mix so can you talk a little bit about the the vision thing it's become a positive petri dish so when i first came down here in early twenty sixty and people were barely understanding how this could become a technology town much less the first time i spoke at a conference here which is the port of the puerto rico investment summit i asked people in the government about how you treat watching the ants was what is a block when i held my first point in gen the caribbean conference last year the same person i asked what is a block chain actually spoke and talked about the benefits of block chain which they do treat here as being services rather than software and they're both foreperson will get into that a little bit tax and nothing to the iraq's if you provide the product down here but

with watching it's open source so you don't own the ip and that's one of the definitions of software were says software is a service you know michael says a crypto space got going different countries and territories that advertise themselves or try to position themselves as the quote switzerland of crypto and they want to be the have the greatest regulation they want to have the greatest of the. minix cetera and i'm you know here for the first time myself and i've been to isle of man i've been to switzerland i've been to various european countries i've been to these places that say hey we want to be the crypt of switzerland you know this place really could be the crypt of switzerland it's got everything across the board what are your thoughts on that i'm a big proponent of that and i'm very encouraged with what wyoming did wyoming just had a unanimous legislature approval and the government signed an act to say that utility tokens which is most of what this i.c.a.o. phenomena comprises is a new asset class that is exempt from securities and money transmission and the

courts will decide whether wyoming legislation trumps regulation but they're pretty adam about that they want to go into other territories and i've got nothing but you know open arms from the people i've talked to in puerto rico as will help the island we bring jobs here very open attitude about how can we go in first and foremost how do we keep our kids from like graduating and having to go to the mainline because they can't find a job here that's going to pay good wages generations coming out actually says that they could be part of building this new generation and it could be. as you say a petri dish and a really growth story now you mentioned ice yos and regulators for a second you know it's interesting is that this if d.c. thinks calls crypto commodity the f.c.c. thinks it's a security you've got fence and i think it's saying it's money right so every regulator thinks they see themselves and right and that they need to be

a part of the regulatory mix how do you see that unfolding because it's having a real impact that's undeniable yes a house and in fact the i.c.l. market and how will it impact more broadly it's impact in the i.c.a.o. market particularly the last couple weeks in sort of a feeding frenzy of fear. because basically a lot of the lawyers have been saying do this do this another. maybe you can't do this and that and at the moment i'm hearing people advise just do a public offering which means you become a penny stock and that doesn't seem like the innovation or they just say block all americans i don't think that's going to be something that lasts forever i think i'm very encouraged by what wyoming is doing and if a judge just backs them like you know the f.c.c. had been saying all this stuff looks like securities the us a judge actually said the cripple currency is a commodity it's not the same well mean it's a security am a commodity and you know another judge in florida and some of the bitcoin is not money so the courts are going to have to decide in the meantime people are afraid

and so they're either blocking the u.s. or they're coming up with you know hacks of the rules talking about you know how a lot of times you have to go and find a positive activity hacking is a good thing in many cases and i think one of the hacks is you simply go and you invest in a funder in a sense because that's offshore and that's how it's an american citizen you still get to you know take your rights as a credit investor to be able to go invest in what you've researched. game theory for a second marriage for your seasoned entrepreneur this game of cat and mouse with regulators is part and parcel with the entrepreneurial world steve jobs got to start with the phone phreak you're breaking the law you know most entrepreneurs are skating the edge of the law that's how they kind of introduce a category and they hope that that their product will redefine the category and that the law will be changed you know they see this on wall street all the time so in the area of tripped out i can understand the regulators are you know they have

they have a vested interest don't think they represent a long standing financial services business and they really are in their service you could argue but will a territory or a country break ranks and say you know what we are going to be that crypto location and we're going to attract those jobs and are you playing a little game like that michel you know you're kind of a deal. almost the dean in this in this space too far off where you think i've been called the i.c. oh godfather one network but now you're not far off and i sort of learned a lesson way early in my career in the ninety's when one of the things that i did as a side project before be for mark a wire was i co-founded something called direct i.p.o. and it was myself and a stockbroker and we decided to like start going and disrupting wall street by letting people do direct public offerings of internet companies and we started the same day as with capital and with capital and the client was a securities lawyer we employed securities lawyers our entire funding went to

a big law firm who told us no no no it's too risky he did the exact same things yes c.c. called them in and they gave the exemptions he sold the company for several hundred million dollars we basically went on to do something else after we spent all the money side aside i was not going to make that mistake in this field so i talked to a lot of lawyers and i look at a lot of different jurisdictions but when i started been angels in two thousand and thirteen one of our charters was fined friendly jurisdictions malta is a great jurisdiction aristos these amount of second places that ever was going to move to but in asia when korea and china clamp down were just guess where really is singapore and here people are going to bahamas they're going to be the guy they're going to cayman but they would much rather come to puerto rico and pay four percent just like they go to switzerland instead of you know as zero tax jurisdiction that maybe is not the place they want to live or operator or such clarity like they pay

six percent in switzerland and i think that they will pay four percent and you could get a billion dollars of i.c.'s coming into puerto rico if there's a little bit more clarity and they kind of follow the wyoming lead all right let's dig into some technicalities here and i want to spend a long time on this but i think it is interesting to act twenty x. twenty two these are some of the minutia you encounter when you make decide to make a move like this in economy. caps played in a minute the difference between the two just i just find this interesting michel in this kind of brush on the tour so i'm not a lawyer or an account and i used to fighting in desmond's of video there's a lot of great folks down here who know their stuff so act twenty two is the one that is for individuals for investors every year they made a little bit tougher. and that's been sort of as the numbers have grown that's sort of the way of making the bar and for a little bit higher in the beginning i believe it was fifty dollars to apply and five hundred dollars to get it once and they saw that investors were also bringing

their secretaries their mistresses and that's not who they wanted to get the grants so the year that i got in it was seven hundred fifty to apply and then five thousand dollar one time now it's also a five thousand dollars contribution to charity which we give way more than that to charity in puerto rico every year anyway and perhaps the talk is maybe it's going to be an annual contribution but you want to have people involved in the island you want to have people you can't live here without wanting to help the people may go in first thing because i was out of end here a lot twenty three and it's a crypto incubator beat up and people were talking about the x. x. twenty this that i talk to a lawyer i talk to account i get totally different answers from different people in the information it's tough to come by like a real definitive answer what is what can people do you say in an account and not a lawyer but is there there must be a resource to guide folks on solid footing as they as they contemplate that kind of

a move down here right you know you have to talk to people and get referrals and quite engender we do have a panel on at twenty and twenty two we've got actually. who was the secretary who wrote the law who passed the law and i've got. that i've got the head of didio and so folks like that are going to be able to answer the questions there was just something this morning here but really come on down to. if you like the island right are you going to go and i seriously thirty seconds what is it some quite in john that's our fifth year it's the it's the goldman sachs conference for corrupt all because goldman sachs won't do it's springing investors from around the world to look at opportunities in the space and to talk about the legal and regulatory and the trends and this is our second year doing in puerto rico right michael sarver thanks man kaiser report thank you alright well that's going to do it for this edition of the kaiser report with me max foster thanks ever like they are going to michael turf and if you don't catch us on twitter it's kaiser report that i'm.

desperate for a single purpose. of a super. training very young. eight months of intensive school. reps. and they save lives. kristen trumps learning in funding practices are still surprising the recent deployed months of my complaint and john bolton have left an impression on friends and foes alike impetuously on american politics.

fundamentally the united states and russia are have been for decades to scorpions in a bottle each capable of destroying the other but only at the price of being destroyed itself. said well these weapons were overcome u.s. missile defenses u.s. missile defenses were totally ineffective against russian forces already. so they'll be more effective against russian forces. i. thought.

you. a gunman in the front car and takes hostages in the supermarket killing three people the terrorist was later killed in a shootout with police. also ahead on the program the u.k.'s law enforcement agencies searches the offices of all political consulting giant to donald trump brags that a facebook comes under fire for a major data breach. the rule of national security adviser we take a closer look at the new paul white house. on the calendar for the u.s. senate calls for homeless people to be given weapons.