stuff you know look at the very talented on the high school report. kaiser can't. monsters cuz arms is good more of. all about money i've chosen some headlines with money as a topic for this first episode from money cause that's great yes you know while we've been here now i have there been summits in singapore but there was also the g seven meeting in canada where justin trudeau is i have your eyebrows for right off just just like it was the followers of america ron paul ron paul his mark and his eyebrow american style right up yes but over in switzerland as well they had one of their referendums you know how if you get one hundred thousand people to sign a document you can ever referendum on anything when they had a referendum called the volga held so the tweet from wall street journal rees swiss voters rejected the vogue elde initiative which would have put the swiss national

bank in charge of all money creation pending the banking system so it would have ended basically fractional reserve banking it was something like seventy percent voted against this so it did not succeed at all but we're going to talk a little bit more about that so it's interesting that they would even consider this so they understand that the central bank of switzerland is acting malevolent undercut commercial banks that they've they said the commercial banks should not be able to print money by issuing loans they create money so they wanted to take power away from them that said that commercial banks like j.p. morgan deutsche bank goldman sachs that they could not create money they could only lend against their reserves one hundred percent reserves that only the central bank of switzerland was going to be allowed to print money just like in the case of america would be the u.s. federal reserve would be allowed to create money for the treasury to jurors or.

exactly so they voted it down but they're aware of it they're aware of the. effects of fractional reserve and that money is created by loaning it into existence or there's no there's no collateral banks have no reserves against loans they they they loan more than one hundred percent of reserves of three hundred percent of reserves because of deutsche bank they've loaned an infinite amount against nonexistent reserves there's nothing in your bank except maybe some old gum wrappers there's nothing there to collateralize those hundred ninety trillion ponzi scheme of derivatives a doj a bank that's why it's going to go out of business but nevertheless i want to turn to this other article and it's martin one of one of the chief opinion makers at the financial times wrote a piece an opinion piece saying that the swiss should have backed this that they should take the power to create money away from commercial banks because commercial banks have proven themselves to be not 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 lost a 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 was 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 institution. ins 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 introduced to separate banks. activity as guardians of people's wealth yes and their cause it's their deposits from their speculative behavior as some 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 crime crisis is just banks gaming the system banking game and now manuel's he's an establishment player so it's interesting that he would make the suggestion that this was

a banking system should embrace this anon 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 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 us like ten. 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 i was financially 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 that gets

property so think about the destabilization in our western economies in america san francisco los angeles new york all the homeless problem portland seattle it's all lend it's on property. backed by these banks lending money against that and of course with the as it's they generate more more more and 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 you know all the cities in america and in the 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 as 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 of honorable it's a bit of a model culture and 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 that quine and was a big topic here at money com 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 money kompas 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. mazhar 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 or 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 what those 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 corporation or mack bond turnaround from new york city there. they go to risers for the insiders of these various nation states and they have a great reputation and they are see the writing on the lot they realize that bitcoin is about to kill off the currency deader than a bag of hammers but you and i have also said here on kai's report you heard this year first we did say. is report years ago that when u.s. the u.s. started using you know lateral power the fact that we're in a universal world led by the u.s. 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 to 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 world reserve currency those two are mutually exclusive well notice he didn't say that the euro would replace it he says because nobody nobody wants it really may be good to have a neutral platform like. this i mean going to the special drawing rights from the i.m.f. that's him crying jim jim records. you know he's wrong he's going to pick i mean we've got to take a break here because a report on. coming to you a special report don't go away there's plenty more coming your way i think we're going to talk to tom banks that's right stay there.

for twenty eight team coverage we've signed one of the greatest kill people but there was one more question and by the way it's going to be our coach. guys i know you are nervous he's a huge star among us and the huge amount of pressure you have to go i mean eighty percent of the poll with you and the great. you are the rock at the back nobody gets past you we need you to get the ball going let's go. alone. and i'm really happy to join us for the two thousand and three in the world cup in russia. this special one. needs to just say the review. the latest edition to make up a bigger. book. yeah

. baby. welcome back to the kaiser report i'm max kaiser i'm here with jon benet's turned welcome back iraq's thanks only back you know i just want to make one quick comment i'm 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 conference 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 i mean i have to trust off to just go on stage here 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 talent is not a surprise what do you think that's 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 finally made it somewhat clear in a recent interview when he said if your tolkien was created by it 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 and if you are nice you know in a space you should probably be a little bit they're just right click name in an interesting statement or is basically the translating i.p.o. with. he's saying if you're interested in doing in i.c.a.o. as a private placement do a private placement but eventually doing an i.c. or knife 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 crypto 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 and they went before the regulators three times with proof and you know they just didn't they that's all they do all day is because of now you were on stage your money comp with stacy herbert talking about krypto and securities and investing and the point came about reg 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 the 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 most of the market won't be able to participate when your

thoughts yeah so i actually 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 you know professionals can 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 doubt the little guy should have a. it's 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 three i.p.o. stage and they're in there 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 end 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 darted 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 switching to 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 right 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 take it out of the hands of corporations and individuals ran him 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 you. they get caught up in the emotions are not professionals get wiped out by making the argument that serves a purpose and so they are going 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's future competitor as a pretty i.p.o. for the same reason people don't want to invest in bitcoin and don't 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 because they don't put all of your money in decor and 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 one k. i'm responsible for my own retirement money and you can do that if you go by hopefully they'll be a better e.t.f. 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 fred 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 you're just looking at the price charts and. and you're making certain assumptions about how prices tend to repeat and patterns repeat because they're subject to human emotions and human emotions never change 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 puts at the bottom so the put call ratio is bullish because it's a contrarian indicator and these are all very useful tools and space is

a very young spaces tend to be you know technological i was going to i was resisting saying geeks and nerds and what i mean that's what we're talking about this is all very new to them how's that message been interpreted that's actually been great for me because i recognized 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 well shit 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. if you are in love with declawing 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 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 or any of the correspondence he had is 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 attack put forward by 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 you tactical and say went you took you

know want to put on big corn and then you killed it with a fifty one percent attack 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 rate is going to be exponentially higher still making it so hard to do the fifty i guess active because it isn't as it is running ahead of the devil he hasn't day one one step ahead of the debt and in addition it will be a very dangerous bet because as the declining market grows 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 now 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 doesn't it saying that all they have to feed the ducks in their quacking right if they heard this one yes and the intermediary the c.m.e. as insurance to back this up 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 down a 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 there are gold bugs a lot of people don't want this catastrophe to come for you don't realize if the cat too big nobody wins today sanctioning the cows 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. my uncle gets a single boy to night. it's not. going to. get the quick. move on which i did on the gun show about the movies because of almost anything in the going to be a good show first it's the time when the sky who. still

does not so much because i was it is a cause of it because you see a much. less . cut cut. cut. cut. kid a. little. does she don't consume don't gel you've been talking to her the whole joking there on the pacific island on the bus and in that article going to joins us once i moved away closer stance me not going to. cause i don't leave then suddenly

i'm doing it the way that to those off putting as recently as a zillion times out of us it all took the sitting on. i've been facing the numbers mean from this matter us is over one trillion dollars in debt more than ten white collar crimes happen each dish. eighty five percent of the global wealth you want to be culled from rich which. six percent market saw thirty percent minus minus two years some with one hundred to five hundred three per second per second and bitcoin rose to twenty thousand dollars. china's building two point one billion dollars a i industrial park but don't let the numbers overwhelm. the only number you need to remember is one one this will show you can't afford to miss the one and only.

day three of the fifa world cup is drawing to a close and with four games it's the busiest of the tournament with lots to talk about undoing about talking this hour will be munching just united boss juicing marino on the great dane and self interest michael. course from iceland they since they were babies they were eating looked out for me on breakfast immediately my son plays in the team i'm wearing my red called us and i decided that i'm already very good. on the fourth game all four is currently in action around the half time. in auctions with the europeans currently one goal to the good. also.