switzerland was going to be allowed to print money just like in the case of america would be the us federal reserve would be allowed to create money for the treasury. exactly so they voted it down but they're aware of it they're aware of the. effects 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 in the case of deutsche bank they've loaned an infinite amount against nonexistent reserves it's not 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 of deutsche 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 practice 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 we 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 separate. 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 was 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 a step or a bank's. activity as guardians of people's wealth yes and their cause it's their deposits from their speculative behavior and some merchant banking and i don't know speculative behaviors so they have a 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 manuel's 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 h.s.b.c. barclays bank of yes yeah right they would all be 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 wealth 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 a nationally because he's being pressured by bit coin yeah i understand we're going to get are a bit more of 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 on 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 it's they generate more more more and more profit for themselves because they can 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 at the top or collateral and they lend against property and what happens prices are artificially

pumped up and jacked up and so people can 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 so vulnerable 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 comp of course we we've been speaking here for. 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 crypto compeer 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 well 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 of 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 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 the 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 on kai's report years ago that when us the us started using you know lateral power the fact that we're in a universal 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 this 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 to be maybe good to have a neutral platform like bitcoin. i mistyped i mean a special drawing rights from the i.m.f. that's him 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. should you go to one of them because. that's what i mean i want me and i. what i was was a. dumb move to move. them. away

in the spirit of craven instead of instead of what. someone is going to. win to me is that and there have been any move can you hear me. him in national cancer most in the. cut cut. cut cut.

cut. kids up last. time. those who don't consume don't tell you from talking to her the whole circle there in the sand on the first song in that article going into some songs on what he calls a stance move on the managing don't cause i don't believe those who tell him the will move up to us all morning as the song is a downside as it all took the sitting on. a plate for many flips over the years so i know the guy even so i gots. the ball

isn't only about what happens on the pitch put a funnel school it's about the passion from the fans it's the age of the super money just kill you narrowness and spending two hundred twenty million and one player. it's an experience like nothing else going to be true so i want to share what i think what i know about the beautiful guy my great so well paul chimes for. at least. was a life oh. oh . oh oh.

i believe. welcome back to the kaiser report i'm max as or i'm here with john bates turned welcome back x. thanks tony back you know i just want to make one quick comment i am wearing the exact same outfit including this leg that i wore at charlie shrine 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 this instance i thought why not wear the shrimp wedding outfit. you know very good choice i mean i had to drop off to just go on stage. you look at sure you get the money come off it's a bit let me get a reaction to this it seems a bit corporate if you know what 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 regulations the regulators are coming into this space in a big way talent 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 told and 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 don't 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 please 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 think 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 point came about rigby 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 who saw 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 so i'll 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 even professionals can't 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. 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 it'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 experts that i've to the facebook thing i say 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 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 has a corporation 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 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. i went for a second in the space of crypto it is part it is or a 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 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 by because you 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 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 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 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 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 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 space is tend to be you know technological i was going to resisting saying geeks and nerds and tweens but 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 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 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 three trading it's just something so. if you are in love with big quoi 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 he down ten percent you had to make more than ten percent to get back to even so this is the cycle that people get into it is very 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 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 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 took you know what to put on 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 ideal. the hash rate is going to be exponentially higher still making it so hard to do the fifty i guess actually a big client 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 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 proposition and the c.d.o. except the counter parties also failed no liquidity right no liquidity right so just because you made this giant bed and you were absolutely right what happens when your counterparty. was too leveraged and the counter party goes down doesn't saying well they have to feed the ducks from their quacking right if there is just one yes and the intermediary the c.m.e.

as insurance to back this up but they could also not have enough this is what the c.e.o. of interactive brokers was very very worried about but on the upside on a downside that there may not be enough back up 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 but you don't realize if the kind of passion is too big nobody wins today sanctions because report thank you that's going to do it for this edition of the kaiser report with me max kaiser and stacey everett i think our guest. is if you want to catch us on twitter it's kaiser report until next time you know. just getting international recognition with the help of israel at least in the world of zoos. this is. like you know. this is my

complicity is going to sunday on meet. the. the only palestinians it gets the most help from its jerusalem counterparts i don't think this is about those who in the world under the location didn't know only could get it. and know it is unfair advantage to have to display any of the muslims to have an identical t.v. in the doesn't seem to do more commitments also don't piss off. i can imagine well i don't know i wasn't there but i can imagine a russia defending its national interests in a way that doesn't help the hawks in the united states but couldn't has this image of such a hard guy. and i would only blame him for not caring about american public opinion even more because it seems like no matter what he does this an unfair response none

the less what i'm saying is it's gotten very personal. to the kid same compensate oh boy tonight i did. see it but no proof that they think. it's not. going to. move on which i didn't get showed up to move this because of an infant who could only be out in show which does nothing we must. it's not so much of a thing will suffice cause it is a constant because a few rough it's

a money others. day three of the russia world cup wraps up with four action packed games to talk us through the goals and the early signs of the tournaments are peter schmeichel and just a marine. corps from iceland the since they were babies or do you think i'd love to meet them on breakfast immediately it's it's a big day for this right the family. you know for to have a son playing in the world cup. in the pick of the days matches iceland brings their thunderclap to moscow and secure a shock draw against heavyweights argentina. was a celebration of football a british newspaper publishes and then removed a series of pictures apparently show.