is that the markets in this case are the e.c.b. are the governments are the central banks of the world because just like greece just like italy the e.c.b. has been mostly buying their bonds and the italian government and the talian banks so the bond holders are the ones being bailed out once again it's the bond holders not the market you know equity markets or property market people who are getting out participants who are getting a bailout it's the bond holders that you know always in a negotiation there's supposed to be two sides to the story you know everybody has to give and take but like with greece the bondholders didn't give a tiny even fraction of a haircut none the same with italy they don't want to give any haircut nothing because that cannot be. you know ever becoming an established principle we've really negotiated the history of capitalism no longer is the creditor ever part of the equation they get everything one hundred percent you the debtor is

abused so here is a tweet to the response to the oed injure who is saying that the markets are going to punish the voter well this is a different take markets spooked by political coup in hash tag italy default probability has jumped to twenty percent and here's italy's five year default probability you see the chart looks pretty good exactly if i have a credit default swap on those bonds i'm making a lot of money yes that's part of the weapons of mass financial destruction that's the market signal that they point to and say oh you can vote for populism you know who owns america's bonds who owns america's bonzo china how we invite china to do to america what the i.m.f. is do and italy i think i'll be an actual experiment on market terrorism expressed in the geopolitical basis let's say china did have a cold us to merica what they are members doing it only. to see that through your mettle i see i do want to point out that they i'm. it has not yet involved in italy

it's all about the european central bank and the european commission and the euro zone so the i.m.f. in fact had advised those other troika members to basically allow a debt restructuring in greece and they were next because there's good cop bad cop with them next week will be showing the i.m.f. involved almost ninety nine point nine percent guarantee so i want to also point to another tweet here this is from tony's hassle of the f.t. today's rise in two year italian government bond yields in perspective one day move greater than anything seen in financial crisis or greek crisis so again this is the cost to insure the bonds the spike in context going back all the way to two thousand as you see it's a one day move that is pretty shocking how much it's gone up but you know there was somebody who responded to them called crypto macro and it's interesting this response because this is something i've heard in relation to oil markets and that

is markets have changed since the great crisis market makers now hold thin bond inventories due to higher associated capital or climates this amplifies moves i did happen to speak to a former oil analyst for goldman sachs and he was saying this about the oil markets is that you should take billions of dollars to move the oil markets now it takes like one hundred million dollars and you could move the price partly because of the new regulations about how much a basically there's not enough inventory of the market makers no longer are are in this market they need to hold collateral against their positions right so what's the market telling us they'll say the market's telling us that we need to expand the liquidity and the inventory of the market makers in the bond arena which means we have to reduce the banks a law they keep certain amount of minimum liquidity on their balance sheet we need to leverage the banks more because after they destroyed the globe in two thousand and eight and we're back. by twenty dollars and then some very minimal new laws

came in about it keeping inventory and liquidity under balanchine they decided you know what jamie dimon needs another billion dollars lloyd blankfein even though a billion dollars so we need to roll back those regulations so it could be even less own their books in a low energy economy even more and anyone protests with a populist a political uprising the market tells us that there must be cures disabuse of this notion this is market fundamentalism you know how different the saudis is what is going to be fair my personal opinion about those regulations is that we didn't need any new regulations because what the banks did was already illegal to smash and grab assets from individuals and pension funds was against the law i believe and they created these new regulations and in order to pretend to the population that something was being done and that this that what happened was so unique and new and not and had never been known before but it was simple old fashioned crimes of

finance so that was just a distraction but i do believe that those regulations did have an impact particularly on smaller banks the banks of the world are as we see tumbling have been very leveraged and there is no reduction in leverage for them and we see that in their market action but i also do want to say and i did say i would get to the start this chart shows why early vote and italy could would hardly produce different results italian electorate has seen little in way of wealth gain since euro creation while g.d.p. per capita is much higher in germany for italy are means below where it was upon euro creation this is via bank of america merrill lynch this is germany this is italy as you see this is the introduction of the euro they moved in lockstep together after the introduction of the euro but g.d.p. per capita since the financial crisis since these new regulations since the e.c.b. stepped into the markets and started buying certain bonds and and favoring certain participants over other germany has done well italy has done badly and. you know

they're not if they're not for they are search google any old thanks times or germany saw strike and i'll explain exactly what's happening last five years as i predict it well we have to go to break but when we come back we're going to be doing a whole lot more so don't go away. in july twenty second team on an attempt a freelance journalist working with a. militant shelling in syria. to only his sacrifice quality has established

a holiday memorial they will recognize the reporters who often risked their lives to the sake of the truth and through that peace you can submit to your published works in a video form breaking format until june the twelfth go to t.v. dot com. fifty years ago pregnant women to come together as a sleeping pill. because. the scientific sweat terrible but not on the road is shown in dutch one for board. across europe victims astonishing legal battles demanding at least some compensation in something to wait till the physical times itself as well that the concept in mind that the people who actually perpetrate this crime has never been the justice and there's been a couple of. i've been saying the

numbers mean something they matter the us is over twenty trillion dollars in debt more than ten white collar crimes happen each day. eighty five percent of the global wealth you longs to the ultra rich eight point six percent market saw a thirty percent rise last year some with four hundred to five hundred trade 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 one does not show you can afford to miss the one and only.

radially reinforce rammed earth bricks is what they really are. looking to. as more than seventy houses about one hundred forty people with families living here but i think. it's really a way of forming say man. police their sons coming in and hitting the house and being stored in massive walls. sagebrush is the natural environment here but as we're containing the sewage and and using to plant stuff to process the sewage we create our own little waste this other. place.

welcome back to the kaiser report imus keyser time now to go to south africa and speak with abraham cambridge of the sun exchange it's a new block chain company that got its start encrypted a few years ago on start join dot com a site that i founded so i'm very special interesting in this story it's an amazing story abraham welcome to science and spit out a long time coming so it's going to show you thanks for having me all right super you know there's one phrase pops out when talking about this story solar powered money which is something to me from the very beginning and then you guys for many years a few years now so tell us a little bit about the sun exchange. yes i moved to south africa in two thousand. two thousand and fourteen is where the site industry in the u.k. and u.k. is not known for its sun as you well know because i saw her history there was very much supported voiced government subsidy in posi when i moved to south africa where

there is a lot of sunshine there is no solar panels or he's the wasn't when i moved in on his beauty down to lack of access to funding for businesses and communities to go soeda out at the same time i was really getting into court so i. processions where fred is going to set a business up in voce so that sawyer energy currency because the two things i stores so complementary you go to decentralized any system that we're trying to build let's build it using a decent sized financial system because bitcoin is global and universal and one of the woken our own solar panel is located on the roof here in south africa and the site is ideal set up to allow to stop and knowing individuals anywhere in the world and immigrants of less than ten dollars buy in and then lease oem so sells to factories businesses schools whatever whoever needs access to clean it who solar power of which there is no shortage all that's what's on exchanges that are trying

to connect people who want to go silent to people that need to go sort of right and i love this story for so many different reasons first of all reminds me of a quote from buckminster fuller the talked about how earth gets a thousand times more energy every day from the sun than it is this you know there's an amazing amount of energy that comes and and the solar energy market is evolving quite rapidly and the cost of solar panels as dropping like microchips a cost of it dropped over the heiress and some marrying these two industries a crypt. because an installer you have a fantastic marriage that is disrupting a couple of industries simultaneously as to something the energy business and justice rafting you could say the currency beza simultaneously i could talk a little bit about that. yes i mean if you look at that it was called the level life cost of energy star how much a kilo our electricity is worth of. the cars now the cheapest form of power on the planet when you have lots of sunlight in here in south africa so but energy is now

cipa they're used to this heat produced co co how so cheap a cold and how about what great for what amazing threshold we just crossed as a civilization that we can now produce and if you directly from the sun more efficiently than through burning fossil fuels i mean will pray for it's also i don't like currency site i mean i mean totally i mean we've now got this this this system to connect anyone to a soda bottle and he were somewhere else you know this is a universal resources sunlight and now people can access the universe was also using this universal financial let me go. right so again this is truly remarkable in many ways because the sun is a is energy and energy is currency you know we live in a world that runs on energy and that energy right now is dominated by hydrocarbons and the oil industry and as being now replaced by renewables and solar

and sound the sun exchange allows for that currency that already exists it's called the sun the sun is already generating a currency called energy so some exchanges are allowing people to actually develop a passive income of cryptocurrency krypto income that from the sun right away i visualize it with we're converting photons into electrons into digital money and then it gets sent to wherever he's go and then goes about this the money gets converted so what the next stage of the process whatever the recipient that disregards he wants to use with it and interesting one can evolution that we. united since we've since he started this of the energy to mount the pick or network of becoming more and more over the top pick but is actually people forget the solar power once it's once you've built and finance this so sad is producing energy for

free better on the next twenty five years so if you were to finance a solo cell with the big wigs and get destroyed ducky from circulating what we have done is created twenty four home is where the posted energy budgets so what with what we hit do is people who have cribs are converted into solar cells because you'll then create a positive energy balance and that's creating a tiny framework for global economy you've got these post if the public saw it states know you think it's just sunlight solar cells are to garnsey minds those things combine could run into at mantua says the right abraham you know we have been in the crypt of business as twenty eleven covering it quite extensively the first in the world to dis al and we have looked at.