the french and american presidents make a show of their friendship as they meet in the oval office although key disagreements remain. the saudi coalition air strike hits a wedding party in yemen killing at least twenty people and injuring dozens more. a human rights group releases a video from the west bank showing an israeli soldier cheering after shooting a palestinian protester with a rubber bullet. now for the latest on all the stories you can head to our t. dot com stay with us now though for the financial news in the kaiser report.

oh imax guys are home. cars are. this is the car is a report kaiser report kaiser you know sometimes i hear the doppler effect i don't know what that's all about we won't go there but we're going to talk about some good news first but that good news is actually leading alternately to bad news is a bad news on the back of the good news but we're going to start with the good news first and here's some good news for our gold bugs out there because i know they have been kind of sadder you know morose these last few years as gold is like traded within a tight range for four or five years doing nothing while bitcoins stolen all its glory well it could be back to bitcoin like days soon bond king jeff gold lock says gold could rally a thousand dollars of course bill gross is the bond king but this guy also now goes by the boss. but the c.e.o. of double line also known as the bond king is once again attracting the attention

of gold investors as he sees a yellow metal at a critical juncture quote we see a massive base building in gold massive as a four year five year base in gold if we break above this resistance line one can expect gold to go up by like thousand dollars he said during the twenty eighteen modeling economic strategic investment conference according to a recent recap from steve blumenthal chief investment officer at c.m.g. that would take it up to twenty four or twenty five hundred dollars an ounce and i saw that he jeff was reading up with peter peter schiff just a few months ago they had lunch jeff house in los angeles dogging big old things there yes peter schiff he likes is a gold cufflinks he wears those a lot oh as men may go i you know i order somebody say that they saw peter schiff on. cruise recently trying to sell his twenty four carat gold come flanks to

people on the cruise so he were really is a personification of always be closing peter never stop selling he never stops closing that's what makes him great where i promise you some bad news i like i know max like some bad news in there and every single headline said the bad news behind why this so-called new bond king jeff sees gold rising by thousand the most prominent factor behind gunless bullish gold outlook is a weaker u.s. dollar in his presentation he said he sees the us dollar continuing to push lower in twenty eighteen there are other economists out there also seeing the dollar is going to weaken you know it's broken out of a trend is going down again and it looks like it will go continue to go down well there are three trades that have been wrong for five years one is that the dollar is going to crash to the goal is going to twenty five hundred in the very short term and that three the bond market's going to crash all those three trades have

been absolutely wrong for five years and they've taken many people out on a stretcher john paulson by the way a big hedge fund manager he just closed his gold position he had a gold fund he was a big old investor he bought a ton of gold tons and tons of gold didn't go anywhere he calls it out so is jeff going to be the guy who calls it right well let's see that is a classic contrarian position and you know when somebody like paulson says gold he capitulates that's a good oh yeah we found a few contrary and moments like that over the past three four five years so here's a headline from michelle locke and it's rosenberg says buy gold buy oil buy commodities economist david rosenberg expects the u.s. dollar to fall his recommendation is to buy commodities miche agrees but he says just gold forget oil and all that stuff but he points to his u.s. dollar chart that he uses and this goes back to tooth. thousand and one this is the five years that you said that everybody's been saying the dollar will fall well in fact you clearly see it's broken the trend of the trend is now down mischa's look

at this is that it's going to hit eighty on the dollar index at the moment it's about ninety the all time lows around seventy but as far as hyperinflation goes or return of inflation one interesting side note would be how the money velocities really bend down to zero that means all the money that's been printed is building up on the balance sheets of these banks have to keep themselves from declaring insolvency once that dam breaks and that money starts to come back into the economy the central bank says that they can just raise interest rates gradually and that they can manager the whole quantitative easing nightmare by reverse quantitative easing historically that's never ever happened once inflation genie is out of the bottle it becomes a rampant high inflation hyper inflation so yeah gold and oil could do very very well in that environment and we're overdue for that type of a psych cyclical turn the other crazy thing that's been going on in the u.s. here's some good news which could lead to more bad news on the downside on the

other side of this and that is the i.m.f. forecast i.m.f. spots trouble ahead for the global economy after twenty twenty so up until twenty twenty they're saying things are going to be great and especially in the u.s. they've revised up their forecast for the u.s. up until twenty twenty you know what happens then an election. whether or not donald trump is in jail by then we don't know but if he's not in jail then it looks like he could be reelected based on the i.m.f. forecast who knows what will happen to m s n b c rachel maddow i did some of their minds and more as i've been saying the sense day one of the trump administration that a twenty twenty election victory is high probability and these numbers just underscore that. as being the probable event that we can look forward to in two thousand and twenty when we might have to have a coup the second successful coup in america we've only had one that was in

wilmington north carolina the second one might happen because of this the international monetary fund predicted the world's economy strongest upswing says twenty eleven will continue for the next two years but warned the seeds of his demise may have already been planted the fun on tuesday left its forecast for global growth this year and next to the three point nine percent estimated in january and raise this outlook for the u.s. as republican tax cuts take effect so all the seeds of disaster that they see coming in two thousand and twenty are mostly us based as the tax cuts and the debts in the deficit that will emerge because of that but also the trade war going on with china north and stop the korea are declaring a truce and then a war that's been going on for decades coming to a close if they open up north korea it's like opening up china during the world trade organization under clinton it assured in an enormous boom if you're going to

open up north korea to development and all kinds of interesting american corporations going in there and building infrastructure projects and trump can take credit for that happening he takes full credit and dennis rodman of course are the orch or the architects of the peace between north and south korea are going to have a huge boom and that's good news on the headline right that finally the two koreas are you actually declaring peace i don't think a peace was ever really declared back in the fifty's so now they're actually going to have a peace that however could cause rachel maddow sorts on m.s.n. b.c. imagine donald trump winning the nobel peace prize they would have a total total breakdown and demand we nuke somebody like they would go over the top they would truly just like what would happen he he watches cable news all day long so he's likely to respond to that as well who knows. dancing chicken you you know. a quarter in the machine and she'll do her little dance around the hot plate screaming about trump all for nothing the sound and fury signifying nothing is

something that i wrote a few years ago and that shakespeare stole it of course so going back to the story about the i.m.f. and what they see as possibly going horribly wrong after these two years of great growth the i.m.f. or the expansion could be directed if countries resort to tit for tat trade sanctions obviously they're talking about the u.s. the first shots in a potential trade war have now been fired i.m.f. chief economist maurice feld said in a forward to the funds outlook reiterating the i.m.f. warning earlier this month that the global trading order is in danger of being torn apart conflict could intensify if isco policies in the united states drive its trade deficit higher without action in europe and asia to reduce surpluses which is quite interesting that he actually mentions that you know europe has germany namely has huge trade surpluses and they've got to do something about it too not just

china this was what bretton woods was supposed to solve that they didn't want these trade imbalances not just the huge trade deficit like america has but it was equally as corrupt and inclusive to the global trading system to have massive surpluses like germany and china have safety. wrote this book the bitcoin standard which is now hugely popular in economic circles around the world big coin is proving to be the new gold standard the last year in a global period of trade harmony the globe combs into the crypto spear and when i come back after the break i'll be talking to some very important crypto people but in the last minute i want to turn to this final headline about what further warning about what could possibly go wrong with the outlook beyond twenty twenty and the. that is of course debt the guardians of the global economy face challenges beyond trade including the end of years of easy central bank money and

a world the debt pile that has climbed to a record one hundred sixty four trillion dollars financial markets have been choppy this year with u.s. stocks down slightly after a strong performance in twenty seventeen now you had pointed out when you were talking to mitch firesign just so that so to go that central bank balance sheets how it's just he points out the u.s. fed and you saw the little tapering at the end is just a little tiny blip down and the fact is that we've hardly tapered. rates are hardly up but in a relative on a global basis or money's been flooding into it and that's a completely creation of this whole idea you can't taper upon to use game and big point is ready to take over the world and i talked to arthur hay in the second half again max the debt is one hundred fifty four trillion dollars now that has doubled since the financial crisis so we have this huge debt load these but this the day of reckoning whether or not trump whether or not the masters of the universe whether

or not the trump administration whether or not jerome pal whether or not these sort of guys the central bank you talk about the bitcoin stand are right now we're still in the u.s. dollar standard whether or not they could keep it going for another two years for trying to win another four year term is up for whatever but. yes i will. for years to hands down certainly got to take a break on the razor's coming up talking about cheap trick famous band from the seventies matchpoint and bit mixed go it. never goes around the corner never know what's in the pub. and excitement is that now and that's where the adrenalin rush comes from.

is a move by definition an extreme through all forms of. violence is a part and it's an almost a schizophrenia gun culture where you can do all these things and behave like. they're born people of course colorful all over the point of course awful for the last. honest man infirmed then one knocked out of war and the downfall is in the thought. of a broader where the fire broke out early did a cold out there with. a million reason is that brief if you don't let me involves it's constantly evolving and. about your sudden passing i've only just learnt you were a south and taken your last wrong turn. your attitude up to you as we all knew it

would i tell you i'm sorry but only i could so i write these last words in hopes to put to rest these things that i never got off my chest. i remember when we first met my life turned on each breath. but then my feelings started to change you talked about war like it was a cave still some are fond of you those that didn't like to question our ark and i secretly promised to never be like it said one does not leave a funeral the same as one enters in mind it's consumed with death this one quite different i speak to you now because there are no other takers. to claim that mainstream media has met its maker.

welcome back to the kaiser report imax keyser time now to turn to arthur hayes c.e.o. of bit mix arthur welcome thanks for having me great to see a longtime friend and associate and we've been talking to you for a long time one of the early folks in bitcoin in the big coin exchange you are the c.e.o. of bit max first tell us about bit max what's going on there so we're now the number one exchange in the world in terms of average daily trading volume we trade financial products so leverage financial products are i guess the key product is a one hundred times leveraged big quivers as u.s. dollar swap that is the most liquid instrument traded threw away right and it's a knock on and so you've been navigating through this space now for a few years what have been the some of the biggest challenges so far for you is getting liquidity going but for any exchange owner about the hardest challenge and thankfully we've been no place right time with the derivatives space and caught the two thousand and sixteen to seventeen wave and it's been very good for us so far

wow so now you've got a project one hundred times leverage so you know it's one hundred times lever to. me that's a pretty dicey product what's that what is the daily volume so that product is between two to four billion us dollars of trading volume every day wow and so you are exchange like all the exchanges out there must be feeling pretty good there are two businesses in crypto that are seemingly very well positioned mining and exchanges and you've got the most likely exchange out there and we're seeing a lot of mainstream interest in these exchanges that goldman sachs i believe is buying into polonia x. which is one of the exchanges so we're going to see more mainstream push into these crypto markets and as a follow up you know they seem to be both a bit trying to. the bad mouthing the space and encouraging a lot of regulation but at the same time trying to get into the space so what's

going on there i think at the end of the day it's a revenue accretion to the bottom line so if you have a industry where in certain donna styles there are more registered accounts on a crypto exchange and on the domestic stock market and the fees are multiples higher than what traditional. broker change charges and the demand is insatiable then as a financial institution you have to get involved regardless of what your personal view about the long term viability of big coin is i mean banks sold x.i.v. you know short volatility ts they don't really care what you know one product is that you make money right the markets they're going to sell they're going to accommodate the market if the demand is there that's what they'll do and so the demand for big going is there their mantra crypto is there they have to respect it they can't pretend it's not going to be here for now it's changed the landscape and they've got to participate and so were you before what's give us a little your background so i used to be a e.t.f.

market maker which a bank and citibank on the hong kong and singapore stock exchange so i made markets and a variety of number of e.t.s. around the world and i did that for about five years and then no thankfully i got let go from my job at citibank and started trading because full time and then parlay that into opening up next in two thousand and fourteen with my other two co-founders well so what was it about the big coin technology that struck you really got you hooked i think there was a possibility of completely changing the financial services industry and you really only get a chance like this once every two or three hundred years for a shift in how people perceive and use money and obviously vast fortunes have been made and lost during these transitional periods and i obviously want to try my hand at it what do you think is the thing that the academics are missing you know you're a big academics like paul krugman and others and they're very critical of that claim and yet the industry is growing by leaps and bounds you've established that

there's a huge business for those what are they missing in your view i think that they don't really understand any of the financial products that are out there let alone . so there's so many economists that barely understand how you know fresh and reserve banking works or how central banks were you know they think that printing money will solve economic problems that obviously not the case. so if they believe in these fallacies why would she we think that they have any idea what's going on in the cryptographic earth space right various states of course are getting nervous because it does cut out the middleman it cuts out the state you could say cut south central banks you've got peer to peer value exchange without any intermediary and so this is a threat to as you say the system that's been around for two or three hundred years what are were we in that cycle are they getting close are they are they going to win this battle i think you know what the answer is probably going to be no but how do you see that battle shaping up what's the next big battle to that we will see

we've seen states come out and try to ban it and we've seen regulatory initiatives you say in the f.c.c. we've seen the a c f t c so what do you think is the next six to twelve months what do you see coming down the pike well i think that trip to currencies will exist in ten with traditional fee at currencies and at the end of the day humans are lazy and so if you make the traditional system work and it's convenient and people can use it they have no desire to try something new look in china right they have which i pay anywhere in china from a taxi cab to a person selling you a piece of fruit on the street everyone uses this mobile app and this mobile money and it's so convenient it's way better than anything i've else in any other country i've ever been to so if i have which i pay why do i need to go out and try to figure out what a big quite well it is or bonaire or any of the these currencies i have a system that actually works for my daily needs and so i think that's where we're going to go if you're going to see financial services actually start responding to what people in this day and age actually want which is convenience mobile money and

that means that it will be co-existing with quite another cryptocurrency i don't think either one is going to replace the other let's talk geopolitics for a second so you recently made by the way let me point this out to folks that bit max publishes excellent research so this is sorely lacking in the. space age you're taking high level banking institutional style research that the industry is accustomed to and you are applying it to crypto and you coming out with some of the best research really anywhere out there and you wrote a report recently that said that about and plus and how sanctions on russia might actually end up making them a crypto currency mining powerhouse explained so our research analyst. has been researching how captive electricity sources can be put to good use so imagine you have a massive an aluminum smelting facility in the middle of nowhere and they needed to

put some power next to this facility to you know power the smelting of aluminum which is one of the most energy intensive you know dust or commodities that's produced and so usually these you know electricity production facilities are in remote areas not close to any population centers so if now say the you know press room collapses you have this captured electricity is not being used well big money can actually put in an economic productive use to this electricity generation and that's what we're seeing in china and in mongolia and you know possibly russian other places where you have a lot of it with electricity and low use from traditional industrial players well so that sanctions applied to it wasn't russell they as a low minimum powerhouse in russia and south if the sanctions got into them they can convert over to pick on mining exactly and they could become apparent exactly so that could be huge but i mean so by dint of necessity the mother of invention russia could be pushed into becoming a tripped up our house at

a time in the world history when crypto dominates and replaces feel possibly more could just be another way to transact globally in the financial system and depending on whether or not they think that is worth their while ok let's change gears you did some great research on the ripple your thoughts i think the ripple is misunderstood. in terms of what it is people think that it's a crypto currency akin to big quine but from you know first blush it appears that it looks as if the centralized system for moving value around and that's not inherently a good or bad thing is just that i think a lot of people don't really understand what ripple this trying to achieve and then secondarily a lot of people look at you know ripple partnering with x.y.z. financial situation and think that the actual token is going to be use and that particular application but usually it's the ripple corporation actually doing outside contractor work building some sort of swift replacement system and the token x r p has no bearing in that that people commonly make that mistake by

confusing the consulting services of ripple the corporation and the token absolutely and so would you say the token gets. placed on the spectrum of valuation is it can you make a call to say it's overvalued or undervalued or i don't care. so at some point it's undervalued at some points it's overvalued really depends on how the market's going to react to a particular piece of news i think no one can come in here and tell you that the.