good at doing what they're supposed to do now i'm only going to read a an opinion piece about martin moss opinion piece because the financial times is behind a paywall and i guess they want to make money off of the financial times i don't want to give them the money so i'm going to read this headline here martin wants to swiss should vote for of all gelled switzerland is trying with the idea of removing the ability of banks to increase money supply in a bow on sovereign money or ball gelled the question will be put to a referendum on june tenth and as i said they voted against it max but martin wolf at the f.t. is with out with an endorsement today i'm curious terms saying that finance needs to change and experiments he says banks have lost the right to be arbiters of money quote the advantage of the vogels proposal is that it is a credible experiment in the direction of separating the safety rightly demanded of money from the risk bearing expected of private banks with money and ambiguously safe it would be far easier to let risk taking institutions bear the full

consequences of their failure to write well in america there is the glass steagall act that was came in after the crash of one nine hundred twenty nine and the resulting in the depression and the securities act of thirty three and thirty four were introduced in glass steagall were introduced to separate banks. activity as guardians of people's wealth yes and their cause it's their deposits from their speculative behavior merchant banking and i don't know speculative behaviors so they had to separate these two but then that was all under clinton bill clinton you know got rid of glass steagall and the banks have gone back into this framework of using your deposits as their risk capital and whenever they make a bad loan they get bailed out by the state so we saw in the savings and loan crisis we saw this as some prime crisis is just banks gaming the system banking game and now martin wells he's an establishment player so it's interesting that he would make the suggestion that the swiss banking system should embrace this

a non fractional reserve a wholly backed reserve bank i mean if you apply that to the banks in the u.k. lloyds has b.c. barclays and bank of yes yeah right they would all have to be technically declare insolvency because they have no assets yet i mean you've actually been on stage here in ireland with martin wolf and he wasn't this radical back then but he's also suggesting that citizens should be allowed to put their own deposits at the central bank just like banks can and that's how they're able to spend money because they're able to borrow from the central bank at zero percent and then lend to you like ten said it was why is he making this converging convergence why is he coming to damascus why is he coming to the holy land well if you're a nationally because he's being pressured by a big coin yeah i understand we're going to call it what we're going to get to that in a second but i want to finish up on the smartwatch story because the fact is when when banks are lending money and creating money in the u.k. i know for

a fact that eighty five percent of all their loans are against mortgages and its properties so think about the destabilization in our western economies in america san francisco los angeles new york all the whole this problem portland seattle it's all lend it's on property by. bills backed by these banks lending money against that and of course with the as they generate more more more more profit for themselves because they can they can basically created a ponzi scheme against which they're guaranteed to make money but it's causing destabilization across all the cities in america and europe right the properties used as collateral and they lend against property and what happens prices are artificially pumped up and jacked up and so people can't afford housing the way to fix the housing problem in the u.k. is to take away this fractional reserve banking and property so that prices would

come down to the level that is traditionally affordable by the average person in britain exactly if they were lending and actually creating an economy helping everybody that's what they originally were meant to do is lend to perhaps risky companies new startups or companies or businesses to grow the economy that would be one thing but the fact is they're just lending it all to a completely speculative. venture which is property and yet it's causing the economy to worsen because they're also locking people out from you know being able to move to new cities for new jobs because property is so expensive but they're not lending to companies are not lending to small businesses in fact r.b.s. has done the opposite they smash and grab the assets using their ability to create money issue these loans that's why the u.k. economy is on a wall it's a bit of a model culture it's only property speculation i know from starting companies in

the u.k. my employees were only interested in speculating in the property market the idea of having a start up or the stock price goes up when you create a technology company was completely alien to them well you mentioned decline and was a big topic here at money comp of course we we've been speaking here for. quite a few years and now they're introducing crypto cop all of these events that have talk about money and banking there are having to introduce and being forced by between to recognize them and start talking about it and what is this so many contests of crypto conficker and this is here but this was an interesting story as well in the headlines while we've been here and this is from the c.e.o. of lazard and if you don't know who loves art are. probably the most powerful bank in the world behind the scenes they are not like you're not going to go it's not a high street bank you know i could go deposit your funds there but they are very very powerful in terms of how they can control the total banking system the bank of

international settlements and governments so here is the c.e.o. of mozart bank and he says you can imagine crypto replacing the u.s. dollar quote u.s. isolationism could undermine the dollar status as the world's reserve currency in the desired chief executive officer ken jacob said to the extent that we have unilateral foreign policy and unilateral trade policy we're sort of tempting the world to find an alternative he said in a bloomberg television interview probably the greatest demonstration of soft power is the fact that the us has a reserve currency of the world so he says big going to replace the u.s. dollar more right on track from what we projected on the show five years ago some point the various nation states will have to give up and realize that their fear money currency system central banks don't work even martin was one of the most blue blooded establishment hacks of the financial times is now essentially espousing to coin and so reserve banking over fractional reserve skullduggery and property

market ponzi schemes in the u.k. there's quite a turnaround here but the fact that loans are bank is also saying this and they're the the most establishment bank french bank and you know felix rohatyn which was their c.e.o. back in the seventy's and eighty's orchestrated the municipal systems corp or mack bond turnaround from new york city the. or they go to advisors for the insiders of these various nation states and they have a great reputation and they are see the writing on the law they realize that bitcoin is about to kill off deader than a bag of hammers but you and i have also said here on kai's report you heard this your first we did say on kai's report years ago that when us the us started using you know lateral power the fact that wearing a uniform the world led by the us as an empire they do they do have a lot of power but they don't because as soon as they use their unilateral power alternative spring up when they start imposing restrictions on people access in the global financial system through swift for example we said because it's going to be

used as an alternative or goals or something like that so this is what we're seeing with statements like this coming from those are bank it's not like it's coming from r.b.s. which has no power on the right there's just two mutually exclusive pieces to the puzzle if you make america great again you lose us dollars the world reserve currency those two are mutually exclusive well notice he didn't say that the euro would replace it he says big quite nobody but nobody wants to be may be good to have a neutral platform like. i miss i can be the special drawing rights from the i.m.f. that's what i'm crying jim rickards jim records. you know he's wrong he's going to pick on me we've got to take a break here at kaiser report on coming to you a special report don't go away there's plenty of work on your way i think we're going to talk to town brains that's right stay there.

no.

effort to see i. told you. i think. russia took a real blow to its sense of self during the yeltsin years i remember even six years ago when i first came here people kept apologizing to me for how terrible everything was and this wasn't like america and for people to be ashamed of their country was so different and now i don't really see that i see people are more proud of their country and i think putting his years stalin in particularly the great patriotic war and the victory there as a way to inspire nationalistic pride. and is getting international recognition with the help of israel at least in the world of zoos and. dismissed it like you know. these two my compass

is going up the saudi home maybe. the old john. the only palestinians who gets the most hope from its jerusalem counterparts i don't think there's some of those ruined. vision in the only group. is it. i know it's his office not his jacket is plenty of the most of this to have an identical t.v. in the doesn't seem to do more and almost lost them because often. when a loved one is murder it's natural to seek the death penalty for the murder. carnage meanwhile and the death penalty just because i think that's the fair thing the right thing research shows that for every nine executions one convict is found innocent the idea that we were executing innocent people is terrifying and those

just move the present and that we were even many of the times families want the death penalty to be abolished the reason we have to keep the death penalty here is because that's what murder victims' families what that's going to give them peace it's going to give them justice and we come in saying. not quite enough we've been through this this isn't the way. to fight for many flips over the years so i know the game inside out so. the ball isn't only about what happens on the pitch for the final school it's about the passion from the fans it's the age of the superman to just kill the narrowness and spending two to twenty million fly a. book it's an experience like nothing else going to because i want to share what i think what i know about the beautiful game played great so what more chance for.

the thinks it's going to. welcome back to the kaiser report i'm max as or i'm here with john bates welcome back iraq's thanks only back you know i just want to make one quick comment i am wearing the exact same outfit including this leg that i wore a charlie in courtney's wedding oh wow ok i was in my closet looking for something to bring in money conference money come and then more in a sense since i thought why not wear the sram wedding outfit you know i'm sure you know very good choice all right i want to drop off to just go on stage here at the counter and you look at sure you get the money come off it's let me get a reaction to this it seems a bit corporate if you know i mean so i was fortunate i crept out its money and

it's like there's a lot of corporate vibe here it's different than the usual crypto conferences that we go to that's true and i actually like i feel like half the people i speak to are . i see business right now your customer which is a huge trend now in crypto and especially for i.c.l. is that were launched last year they're now being revisited and they're being asked to provide k y senior customer rules and regulations the regulators are coming into this space in a big way challenge is not a surprise what do you think but not a surprise at all to me i've always saw all of these i see oh it's going box to experience ice you know securities and it was kind of good clayton finally made it somewhat clear in a recent interview when he said if your tolkien was created by him at the price which almost all of these are and if anyone is buying the stock and with an expectation of profit then you are in violation of the how you and you are security

if you are nice you know in a space you should probably be a little bit there just right now click name in an interesting statement or is basically translating. with. he's saying if you're interested in doing and i see you know as a private placement do a private placement but eventually doing it i see or live you know. that's outside of a private placement come see us at the f.c.c. so he's not there's not even a cigarette paper between ip and i see the industry expectations if you talk to the group of people or that we're reinventing ip as the rules don't apply to us. right now i will say however it's a little bit disingenuous in a lot of them try to go to the us you see a while ago and the f.c.c. kind of wanted nothing to do with it so they are late and i unfortunately they are a big arm of the u.s. government and even though they are late they can still get you they're still going

to say it was your fault bernie madoff was an open investigation for more than ten years i think. went before the regulators three times with the truth and you know they just they're they that's all they do all day is because of now you were on stage your money conflicts stacey herbert talking about krypto and securities and investing and the police came about rigged the investment and i think the debate if i can characterize it correctly was that well you know reg d. precludes anyone from having a certain network their income from participating in let's say a reg offering and a lot of people on this side of the debate are saying hey wait a minute that means like most of the market won't be able to participate when your thoughts yeah saw. a really good question that comes up a lot this idea well how come only rich people get to invest in facebook's i.p.o. shares right how come something like that isn't open to the average investor and my argument to that has always been well it's a very speculative investment and even professionals change get it right ninety

percent of all businesses fail especially businesses and brand new technology the failure rates probably even higher but people still feel old out the little guy should have a choice. and it's a tough argument and now i kind of say if you really want a high risk investment just going bust in the stock market at least those companies have already proven their cost of pre i.p.o. stage and they're in there were already publicly traded and most people feel that the stock market is always all priced and always too dangerous and always too risky without realizing that all of those companies are currently in the stock market one hundred times riskier before they made it into the s. and p. five hundred over some reason people think that's not risky but that's and p. five hundred companies are companies where revenue companies that have a very low chance of going bust right this argument that well how come i didn't get a chance my facebook it's a bad argument because along with facebook or

a hundred other companies trying to do something similar in ninety nine you never heard of or they all went austin to say that oh you were able to pick that one that was facebook is fallacious plus even venture capitalists there hit ratios one in ten they're ninety percent losers and they're the experts and they're the complete expert and i set out to the facebook thing i said whoa all of your money would have probably been in my space because that's where my money would have been i always thought my space was better and i was a user of my space i didn't switch into facebook i just had no choice. and you're right on that and my best example of this is the biggest free i.p.o. investor in pets dot com was amazon so even they didn't know. they were going to win this is the regulations are there and look at the pension market for example you know we went to a transition in the eighty's where pensions were being self directed by employees and taken out of the hands of corporations and individuals ran into the ground in two thousand and eight they got wiped out because individuals couldn't handle the

volatility so they were before then just getting a coupon clipping for a five percent return every single year of their retirement something that was you know a nice pot of money but if you give an individual that. they get caught up in the emotions are not professionals get wiped out by making the argument that serves a purpose and so. i went for a second in the space of crypto it is part it is your way to get more public participation in crypto in a way that satisfies both the need to protect people from getting wiped out and still have exposure to these emerging technologies while big question in my opinion is your safest bet but once again just like people don't want to invest in the s. and p. five hundred and they would rather invest in facebook future competitor as a pretty i.p.o. for the same reason people don't want to invest in bitcoin and they want to invest in these competitors to have a very low probability of success they're basically buying up lottery tickets and

we all know that's not a very profitable way to make a living going to buy lottery tickets but that's what you do in a group called if you want to safe investment in crypto go buy that quote don't put all of your money in pick one if you want to do it in a tax deferred way i hate saying it but is your only option you can buy that in your retirement fund and you're right i sell off the rack my old for a one k. i'm responsible for my own retirement money and you can do that if you go by hopefully they'll be better off on the market soon better than she and then you can buy it as a tax deferred retirement account and you know diversify your portfolio a little bit let's talk about big plans for a second so you are you follow technical analysis and you're known as somebody who teaches groups had to do technical analysis and so it's gone now says israeli the other side of the analysis portfolio one on wall street uses the other being

fundamental analysis or you know looking at the actual earnings of a specific company and determining their growth rate technical analysis just looking at the price charts and. and you're making certain assumptions about how prices tend to repeat patterns repeat because they're subject to human emotions and human emotions never change exactly how people are greedy at the time they get bearish on the bottom you know when i was working on wall street you have many many what i call contrarian indicators you know people tend to buy tickets at the bottom so that put call ratio is bullish because it's a contrarian indicator and these are all very useful tools and space is a very young space is tend to be you know technological i was going resisting saying geeks and nerds and what i mean that's what we're talking about this is all very new to them how is that message been interpreted that's actually been great for me because i recognize pretty early when i started writing in the space about

price and technical analysis that i really am dealing with a lot of people that are getting into trading because of this the removal of barriers to entry to become a trader at a speculator and all of these assets without any kind of learning it's almost like a you know what let me go drive in the indy five hundred. before i got my permit in trying a car and i kind of carved out this little niche where i have experience in trading i have watched the markets for fifteen years i've worked out watch it for ten years lots of trading experience and they let me at least educate people on how to be traders it doesn't mean they're going to make money trading but at least they'll have an idea of the other side of trading which is technical analysis and using charts and using those emotions and putting yourself in better probabilistic bets to potentially profit from the market the problem that we have is people can't

separate because they're too young to investors they can't separate the idea of an investor from a trader a trader should never be married to the asset the third trading it's just something so you. if you are in love with the quoit or you're in love with the theory you're not going to be a very good trader of those assets because you're emotionally involved the best traders are never emotionally involved with the assets that they're trading to sign or to tend to this one is making money the other one is risk management so technical analysis can be a tool for speculation but it's also true for risk management as far as where to put in stops and other orders to keep you keep your money from being drawn down i mean this is what the trader once you draw down money you know you have the arithmetics of losing it takes more money to get even than the amount of money that you drew down so if you're down ten percent you have to make more than ten percent to get back to even so this is the cycle that people get into it is for

a destructive i want to talk about something a fifty one percent attack you know and so totally not amount to envisioned because when he talked about the fifty one percent attack and we know that it's been resistant to fifty one percent he did not mention futures in the white paper and or any of the correspondence he had with anyone that i'm aware of did he mention financial futures we do now have been quite a few tricks in the argument against a fifty one percent tax put forward by i suppose she is that according to game theory you wouldn't do it because you'd wipe yourself out but if you took a position in the futures market and then your tactical line say when you want to put on big corn and then you killed it with a fifty one percent tax you know there's some room to manipulate or to make markets or to trade yourself i think that would be very very difficult because their futures have just come alive and don't fall you want those futures is pretty low the leverage on those futures is also pretty low but the big question of house rate

and the ability to get that fifty one percent is very very high and by the time futures could be liquid enough to profit well from this kind of idea. the hash is going to be exponentially higher still making it so hard to do the fifty because i actually have declined as it is running ahead of the devil he hasn't said day one one step ahead of the debt and in addition it will be a very dangerous bet because as the big market rose higher who's going to be the counterparty yeah you're going to take on all of these short plays like about what happened in the financial crisis right everyone thought they were going to make so much money off of the proper position and the cabos except the counter parties also failed no liquidity right now liquidity right so just because you made this giant bed and you were absolutely right what happens when your counter party. was to left and the counter party goes down wasn't saying at all that you have to feed the ducks in there quacking right if there are just one yes and the intermediary the

c.m.e. as insurance to back the sob but they could also not have an elf this is what the c.e.o. of interactive brokers was very very worried about but on the upside but on the downside that there may not be enough backup and liquidity to do it so it's difficult and i always say a lot of people that are gold bugs a lot of people don't want this catastrophe to come but you don't realize if the kind of passion is too big nobody wins today sanctioning the house report thank you that's going to do it for this edition of the kaiser report with me max kaiser and stacy everett like to thank our guests. if you want to catch us on twitter it's kaiser report until next time i know.

congo the kid same compensate oh boy tonight nobody. no proof nothing because. it's not. going to. get. on the list that i didn't get showed up to move this because of a mess and incommunicable going to be a good show just as the last. does not so much of a thing will suffice cause it is a constant you must say i'm a huge see how.

this is harlan kentucky. we both just moved the employees to the bedroom street fanny's. a co money since he was almost no coal mines left. the jobs are gone all the pay was the fed i'd. love to see these people the survivors of a world disappearing before their own eyes. i remember thinking when i was younger that if anything ever happened to the coal mines here that it would become a ghost town but i never thought in a million years i would see that and it's happened it's happened.

tough. luck good. luck. going on in kim's only. does she don't consume don't gel you've been talking to her the whole journey for dealing with the single and on the go soon enough that equal distance isn't into what he calls this tells me about. this whole don't we don't sell him to the movies not to those of putting in as his own this is a downside to us at all to the sitting on.

the. scene is odd because philip coggan things will help hold him until one one full or even more coming up we get the full john breakdown shows ignorance. the mob they are funded up get stuff done so head back into the center of the capital. also to come transfer box kevin could sign up an hour ago becoming the star you see one we haven't even mentioned the other two guys in the cars.