that currency nightmare that was given us and nothing but misery for fifty years there plowing into fee at currencies is a go at a hundred thousand you're darn right it's going hundred thousand because there is trillions of dollars sloshing around in a cesspool called the global financial markets there's absolutely no rhyme or reason to valuation on any of these assets whatsoever and i saw a headline coming up here today which immediately got my attention so the exchange crack and right crack crack and jesse jesse powell at the crack and exchange they have told me to new york to pound sand basically you know they're trying to dig into all the market making that goes on these exchanges and they wonder how price discovery works on these very sick strangers and so all these exchanges are saying look we're opposed regulatory framework or opposed to be our currency framework we're entering a new year and we don't need the f.c.c. that c.f.d.

see any of these regulators goes were taken this thing to another level is based on a whole different valuation model and just to give you some context of you know my history in all this and how i got into it was back in one nine hundred ninety five one thousand nine hundred six i started a company in los angeles called the hollywood stock exchange and we were trading virtual assets with a virtual currency on a virtual exchange and to build that technology which was pretty new at the time i had to invent a technology so i invented a technology called a virtual specialist technology is the has a u.s. patent i think it's five nine five zero one seven six is the patent number and so we were having to do prices covering own virtual assets this benchley was sold to cantor fitzgerald in two thousand and one and they moved the entire thing to their office in new york the top floor of the world trade center. of a few months before nine eleven. there was. an inability for them to really

capitalize on that going forward they wanted to introduce box office futures contracts and i told them at the time that this would never happen and you would never launch box office futures contracts because the m.p.a. motion picture association of america is a very guarded monopoly in the united states without any competition and they don't like the idea of price discovery on box office they like to control that mark did with an iron fist the six studios in los angeles and sure enough they didn't listen they know they spent twenty million dollars trying to develop a box office futures contract and at the last minute for the diagram bill or the ground on the ground they introduced a rider into that law saying how long box office features contracts so hollywood is the only industry in america that has this kind of protection from financialization you can trade a box office futures contract which you can trade futures contracts on almost every other industry in america because they don't want the competition they don't want

the prices coverage they don't want to interrupt the flow of their model to market their way into a box office event and. i find this a bit disturbing because it says that free market economics and crisis coverage is selective in america we like it in certain markets but not other markets and being in the news business that i as i am we're constantly has are the regulators who are trying to tell us which news is approved by the regulators so this idea of free market capitalism being selectively applied to some industry and not others is that also applied to the news business so some outlets their news is considered to be more truthful than other news and they don't allow the public to decide what they want to say and for the public to make up their own mind about what is

informative and what is relevant to their lives another word for this to be propaganda so we live not only to price propaganda and if currency propaganda but we live in the news propaganda the major outlets in america are in the most insidious vicious propaganda and war mongering and we've seen in decades the idea of free markets which i'm totally in favor of right it goes back to the enlightenment it goes back to adam smith it goes back to the transition of power from the fricken catholic church to the enlightenment to the individual sovereignty the rights of man to be preserved and markets are a way to get there free trade is the way to get there anything that interrupts free trade interrupts freedom and anything in or of freedom is a reversion back to neo feudalism and we see that happening right now in the united states and presumably here in canada as wealth is concentrated in a few or fewer hands we're having a river but the risk of neo feudalism on the horizon crypt out is is the answer in

my view and it is an asset class and it is gobbling up market share and the us dollar is doomed all free up money is doomed and any money they keep in money only keep money and only have money keep money in fee at that you're willing to lose. anything this on trip out is going to vanish. the biggest bubble in the world is the us dollar the stock markets in about the bond markets at a three hundred year bubble we haven't seen bond prices sovereign bond markets aside in three hundred years in britain and in over two hundred forty years in america think about that it's a multi hundred year bubble when those bubbles burst and they well because interest rates can't remain near zero for a perpetuity to help keep insolvent banks looking like they're solvent every single bank of bust your bank is leverage that five thousand to one that there's nothing

collateralized and towards your bank with some answers in the end and in a vault somewhere munich is absolutely nothing it's a mirage. it. goes banks all right what else we got here oh yes a list at best it best agenesis block a system of laws already this is a beginning i see it through all started notice that the headline is times in london chancellor on the brink of a second bailout of banks is that random did they just put that in there is a time stamp or is a toshiba making a comment well it could be both but i heard it as a comment the banking system is in jeopardy and it's a reaction if you will is a very political elements a big coin that is not talked about that often and i think that probably to put in context of where we are historically should be mentioned so there's

a jamie diamond a suicide banker and people say why do you call jamie diamond you know a terrorist a suicide banker when you think about it the banks and wall street they are cut from the same cloth as the hotties. they misinterpret their basic text right so in the case of analysis fanatical was the hottest seok theocratic li driven psychopaths a kind of misinterpret the qur'an here jamie dime until they misinterpret saddam's red i mean he selectively reads books on economics to support his maniacal psychosis they go to. terrorists i go to my dresses. jamie diamond and his crew who go to the ivy league schools which of them addresses of our hero who teach them economic models that are dangerous and fanatical he's going to kill himself and others for is beliefs. he has no compunction about putting isn't our society or from self at risk by pushing weapons of mass financial destruction as

warren buffett calls them derivatives so in a blow himself up killing something anyone around him so he says a terrorist with my suit. initially was very anti big going. then he came around a little bit and now is still a bit more probate going to the markets moving against him and he says he has no morals or ethics or any kind of soul is just going to go with the market he's just like a dead fish will go with the current right he's not going to swim against the current because he's inside he's dead he's a parasite he's a tapeworm on society. this is. very by jamie diamond it's a warm impression because it's too vulgar but does it give you night blown you know it's pretty sick. you know we've been doing our show. thirteen hundred

episodes and this is kind of the reaction we get people are understanding that the enemy our bankers and it's not the concocted skirmishes you know the world with the war the scapegoating that goes on all right now you know when when the replay the reagan democrats were in charge that you member the muslims were the the enemy and now that the republicans are charge the the the russians are the enemy. so it's all . the enemy of the bank's toure's that's our common enemy so we got to get above the the parochial regional nonsense and scapegoating and bigotry. three hundred eighty billion dollars in drug money for mexican of course they were bought by walls fargo wells fargo big position by warren buffet wells fargo caught recently going into millions of customer counts and stealing money and they get a slap on the rest of the price of fraud and terrorism in america is roughly you get penalized ten cents on every dollar you steal that's the pound. that's the

business bottom. line. three hundred eighty billion dollars how does that compare to road which was used as an excuse that he had lines like this all the time that. big clean easy money laundering or buying drugs or things like bread and so bras all it was with the silk road these are now serving life in jail anybody from marco in prison most far away from h.s.b.c. h.s.b.c. built this was in that readily they never went to court so i was going to say the court case but there was never a court case so this was in discovery what happened with h.s.b.c. is that they actually physically designed like the equivalent of a. trace to our ledger they created a physical box uniquely for the mexican drug cartels to deliver money to each s.b.c. branches in mexico city and here they didn't go to prison they they never were

charged with anything they are given use bonuses and the bonuses are driven by stock options that go up in value based on the stock price based on stock repurchases buybacks funded by zero percent interest rates from the central banks so the central bank is or is it is a this is an accomplice so again because it is fighting this fight that's what bitcoin is putting these guys hopefully six feet under big coin is the revolution but coins is the means by which there will be a lot of as we saw in the one nine hundred thirty s. bankers jumping out of windows that perhaps that's part of the goal. that was really problematic oh i enjoyed it immensely well don't go away for much more after the break stay there.

in the heart of the swiss alps this is a place probably more secretive than the pentagon more mysterious than the cia and better guarded than for knox swiss customs are here permanently all the science is controlled by them and they impose the opening times. opposite it was it is from is all plus the procedures in place of the strictest in all europe masterpieces by artists like pecan so and modigliani i can't boards unsold inside this warehouse that's where the report comes in it covers up deals which are naturally discreet commercially discreet felt but also discreet because they concern fraud. some of those paintings are linked to dark secrets nobody knows how many of these secrets

a kept inside the geneva freeport says reflection that you'll never obtain an inventory of all the works in the freeport who knows how many there are three hundred three thousand three hundred thousand is it a matter of confidentiality only is it the world's black box of the art business. i've been saying the numbers mean something they matter the u.s. has over one trillion dollars in debt more than ten white collar crimes happen each day. eighty five percent of global wealth you longs to be ultra rich eight point six percent of the market saw a thirty percent rise last year some with four hundred to five hundred trades per second per second and bitcoin rose to twenty thousand dollars. china is building a two point one billion dollar a i industrial park but don't let the numbers overwhelm. the only number you need

to remember is one in one business shows you can't afford to miss the one and only boom bust. and welcome back to the cause report imax has her special guests. sunny welcome to the kaiser report days ahead of me it's great to have you on in a bit following your career really for a long time and you're one of the earliest guys in typical and of course in india it's a great place for pitt going to flourish because this is the next generation of financial technology in a country that's looking for next generation financial technologies and of course

it took off like gangbusters it's hugely successful and then i was just reading that the indian government they're not being friendly right what's going on with the r.b.i. the reserve bank of india has recently announced that it's i mean in short they don't want banks in payment companies to be working with companies like google and was it a surprise or was it a surprising that read the big white paper like six years ago so not a complete surprise but yeah i mean a little bit i mean a surprise so here's how much contact you have with the government now at this time with unocal oil which is one of the largest crypto exchanges in india how much interface you have with the government quite a bit quite a bit we know almost every regulator there's like maybe seven or different departments that are looking very closely at because we have relationships and many of them. but you know all of the different government bodies don't always work together they're like you know a multi headed monster where one head you know kind of does things without knowing

what the other one does to some extent and so yeah so this was a little bit out of left field with the r.b.s. announcement but like you said you know in december you know it's not just you know going we started the show in india but there's like twenty twenty five exchanges all by really really smart people backed by smart investors but the r.b.i. decided that you know they didn't. now one thing important know is they did not banned it coined even as politicians on you tube say hey if you want to buy a big one with cash want to trade between yourselves go ahead we just don't want the banking system interacting with it is this a period of may be a bit of a transition from a big coin naïveté to a bit coy real politic to what i mean by that is that when we all start in the business when it got started there was this feeling that it would solve problems and it was a fantastic paradigm shift in technology that would banksy and banks particularly in countries where in india for example were you know this would be such

a. step up for the huge portion of the population that didn't have access to bank accounts and so in is it in the case of now a slightly different mental attitude toward bitcoin if my question makes sense in other words. the promise of bitcoin is so fantastic in his being and my view also this in my opinion is being stifled by a bureaucratic machine that maybe is not really going to take on all the warm and fuzzy aspects of this technology and why it's so great we think about that what i just said. first they ignore you in the laugh it's you in the fight you knew when they were at that in the for you as it was in the in the said that gandhi. and i think yeah i think we're kind of at that stage i mean look at the last three months since december i mean bryson because i was took

a big hit but you had like some of the biggest companies in the world like google facebook twitters and they're going to ban and you had banks you know coming down on the queen globally and so i think it's you know way it's hard but i think at the same time it's kind of good why because you talk to a baby and being to a point up until they do and even now we only deal with people who have bank account. because we're forced to but if we now cannot work with people in banks we're only going to be working in the ending sector so in a weird way you can accelerate our progress towards towards or our goal. is to have it i said you know in big point nothing ever surprises you like i had a desk job for ten years i could go back to that but i chose this because it's difficult it's hard and and there were enough people you know working on these big challenges until you're ready to work around anything any obstacle that comes down or in your crypto to cash we're doing we're looking at could do a quick door we're looking at you know why labeling we're looking at you know

moving order book side of india and maybe they could list twenty different things that we could do we're not going to die we're a cockroach right now similarly in china you know they've they're then going down the path aggressively of decentralized exchanges because the governments like trying to attack the exchanges the exchanges you know as i've said from the beginning i've always been the point of failure because it's the interface with fia and if there's going to be a clamp down that's really going to go that's really going to attack moving along to now some comments made in new york about going after exchanges and just looking at their price discovery mechanism how they how they maintain their order books they want a crack in other exchanges to start answering to regulators crack and. response has been basically we don't care what you reckon answer your letter we're not going to answer your inquiry we're glad we're part of new york and you know we can exist without this regulatory framework and they've taken a very. bad approach of like the damage torpedoes. going straight

ahead you know very grasses. are you guys part of that movement is that is this a global movement it can't really be derailed at this point and it. but i what will happen is entrepreneurs like myself in capital and we have one hundred fifty employees and millions of users we're going to have to poke. her attention towards the centralized exchanges and guess what that's not is a bad thing because when i think back to five six years ago when i was going to be queen all we obsessed about was building a decentralized exchange but i think it was early but i think now it takes come along lee and i think it's going to be easy but we are seriously considering that as well ok going to is breaking news right here considering that model that's right it's in the warehouse it's on the shelf you can pull it off put the engineers to work on it and keep keep keep the lights on and keep rolling right leave it fantastic so tell us talk about the conference if you will blog chain economic

event be it how many years it has been running well i've been doing events for six seven years and starting in india and that's how i met my co-founders that they can be and started a new point and so both a year and a half ago or two years ago i started living in canada again because this is where i'm from and i noticed a disconnect i noticed that there was a lot of big wind event but it was like in coffee shops and bars and basements and i wanted to do an event once every three or four months where people would look forward to it and they would kind of remember back in really hearing room x. said and and so that was the initial goal the kind of the bigger goal was we wanted to be the catalyst for ten unicorns at a trial and like i just said on stage you know there's this like miss notion that we try and make money on these events and the truth is is first and you need money and i'm telling you that because now they do know there's anything wrong with making money but i do literally do these events because i love trauma and love block chain and i want the smartest people in the world like yourself like adam bagley chris i said it i want people like you to come here and you know and share

the gospel of it interesting the way these events are kind of taken on different character so in the miami event this past year was very a lambo or a lot of us and just the busty women you know you know it's very like playboy mansion meets toshi ok then this is. it is more as you say you got some original gangster types adam back this year you know he's one of the solid guys is the reference of the white paper you know you've got other really hope ross profile folks and i met here two fifteen year old kids that came to the event they're in to block chain they're figuring out of plywood watching to genomes an artificial intelligence and this is the this is me hope sunny is that this next generation coming up is completely empowered by block train and they are ready to take this to the next level are you seeing that as well so for this event tickets are four hundred dollars a head if you're a student you got

a free ticket i can see that on camera but that was our kind of secret deal was that we just wanted young people in here yet because they're the future and yes anyways a little emotional but definitely that's a big part of it right so the event itself it kind of operates as a think tank and a gathering place and try to help the ecosystem in whatever way you can where as i get acquainted you know that you're more of your do your day job and you're you know pounding that forward and bringing it through the startup cycle and and how how is the startup vironment now is that the market is that we have a huge i.c.l. market and twenty seventeen regulators came in and they really put on a huge amount of. surveillance but. looking at all the stuff we're in that cycle to our last one december i did another event where we had admin morey the thirty eight director of the u.s. mint who's also

a big point of vandal is. so things that we try and get. like he said and anyway so he came and he you know he shared some of them in say with us and he did say that look the hammer is going to come down i suppose and look i'm a big fan of the free market so from that perspective i love you know everything but personally as a solution time in the financial services sector i worry a little bit about i c o. and what's happening now and and you know it could be argued that a lot of the clamp down now is happening not just because of a quick is because we're over seventy years but it's because of this ice you know phenomenon again i caution people against i do these events as they try and find some of the better projects and put them on stage people can tear gate them and ask them questions but i think it's not a secret i'm personally not super bullish on and i see ows but i do believe there will be a few that will succeed and change the game the word around the street has always been that you know you can by becoming an exchange with you very quickly put off exchange and into cold storage into a paper walled into

a hard wall because these exchanges they tend to be vulnerable going back to the mt gox disaster which everyone still remembers because it was a huge event so at unicon where is the industry on the security front so that people have more confidence that when they go exchanges that they're going to be getting the security that they need so this is done as i know we partnered with block chain dot info dot com and we have a partnership through our a.p.i. a customer in india can buy and sell big queen straight from watching meaning they're holding their own private keys and they just make the purchase and use a big horns of a ticket on the account essentially like the money market account with jack we're partnering with my celia and so yeah we see that as like the next evolution where people hold their own private keys but we act as just the mediator for liquidity right well that makes a lot of sense doesn't it now how is the volume and trending in a single i mean volume is ridiculous right up until december we were on boarding

ten thousand users a day a day we literally couldn't keep up with it. but obviously when it was like in the last few months the market see definitely calmed down a bit personally i kind of like it when things are not like through the roof and everybody in your neighbors talking about they quite like you and everyone's like no this is never going to work and it's failed as and i get most excited what's the next event we can look forward to. three or four months with no one to do something called la chain expo. later this year and much bigger more grander and yet that sounds exciting yet i do have to go back on now and i do say on x. i love you guys. yeah already and that's going to do for this edition of the kaiser report me back kaiser stacy everett like to thank our guests sunny ray of you know going to catch us on twitter sky's report until next time by.

local sell you on the idea that dropping bombs brings police to the chicken hawks forcing you to fight the battle. to do socks for the tell you that the gossip the template. tell you all and. all the horror that we all go on one. the new global economic war is unfolding in the realm of education the right to education is being supplanted by the right to access education loans higher education is becoming just another product that can be born and sold but it's not just about education anymore it's also about running a business and what you're good you know models at bruges could this also kind of fellow they could to me. want is the place of students in this business model

before college i was more now in an extremely more high education the new global economic war. political end used to be in the end it didn't last i believe you started with a few two percent found that balance sheets of that money. when i left that i sat next. to. me. i was doing the world's leave we've got somebody who's like. a. country of those mums and he's the second to none of

them that didn't have a difficult moment. and this years are made up often they don't know. how shameful. is going to run it will be an admission from them. remember part of the book was that. i. wrote.

an r.c. correspondences hit fly to gas during mayday riots in paris police also fought water cannon to mass protest. israel's prime minister tries to convince the world that iran cannot be trusted just days before donald trump intends to scrap the historic nuclear deal from says negotiations on denuclearization will go ahead while his security advisor believes what happened in libya.