oh most guys are this is the report yeah we're in london fabulous london city of the future. i don't know about the city of the future but is certainly a city that demonstrates a massive misallocation of capital as money continues to pour into property speculation if you walk around central london it is a nonstop construction site and this made me think of the smells allocation of capital that we've seen across the west this is all we have since central banks basically became the economy we're seeing just in the past week or two that all these big banks banks are the ones are supposed to allocate capital for us what are they doing they've all announced massive share buybacks tens of billions of dollars

so i think that this new crypto space was really you came up with an interesting thing when you were having this conversation in paris we went to see amir tuckey speak in the second half you interview him but we were sitting outside the event and we were talking to one of his friends called harry help and who is a cryptographer and he works with all the old you know the cypherpunks like david charm and he obviously is sort of like them a bit quaint maximus background but he had something interesting to say about this notion of initial coin offerings of why they're actually a good thing and here's a clip of you on their periscope with him so i want my explanation of. where the bailouts happened particular tarp yes the government is the dumbest and most conservative sector of society tons of money now what's happened i suppose is that weird freaks block chains basically that

a tarp for themselves the people's torah predicted it there. and they've basically built themselves now to stick with it it's more likely to lead to innovation if you have tons of money around crazy people and it is the back so that's why i think i see it as it probably actually a good idea of the global economy when our yeah for the people never tarp was the was the program that they came out with during the two thousand and eight crisis to bail out the banks and it was approximately seven hundred billion dollars i believe and of course i got modified over time became sixteen trillion dollars but this is a nice thing idea that harry comes up with the socially that we know because it is a political action the genesis block is a highly politicized statement referring to the bailout and so that is carried through in this thinking that these types of i.c.a.o. as in crypto coins are the people's bailout effectively the people didn't get any of that money went right to the banks and the banks do not lend it out they did not

lend it out in a productive capacity that's why we have no more wealth creation that has happened we have had wealth concentration these guys have sat on their capital gave it to their friends who have more than than enough wealth and capital they had no ideas no new jobs have been real jobs have been created just service sort of sector weight trysting jobs and stuff like that then we went into the conference this little talk that we were talking gave at the missile did be coing in paris and he had this other interesting concept that reminded me of that really fits with this headline from out of china because i mean you're talking was talking about he showed a clip from lewis mumford's who is an american story and then cultural commentator who was referring about b.f. skinner who is a psychologist who had that idea of conditioned behavior and positive reinforcement and how positive reinforcement is actually

a more terrifying form of tyranny because people think that. you know they're being rewarded and they think that they're actually having some sort of free choice and they have they actually feel like they're creating some sort of better society when in fact it's a totalitarian maybe off their a top authoritarian society because here is a headline about social credit score in china where it's actually spreading across the world china's social credit system could interfere in other nations sovereignty china's social credit system a big data system for monitoring and shaping business and citizens' behavior is reaching beyond china's borders to impact foreign companies according to new research the system which has been compared to an orwellian tool of mass surveillance is an ambitious work in progress a series of big data and ai enabled processes that effectively grant subjects

a social credit score based on their social political and economic behavior now we've covered this story but where this research leads to is that in fact it's starting to impact western corporations western businesses how they behave they have to modify their own behavior in order to access the market and the consumers in china so that this also lends and with the positive reinforcement of that b.f. skinner had pushed much of. an arena he had an amazing insight in it because before is the work you people were beaten into submission and beaten and tortured to do what the state one of them to do and then it was assumed at that time that to get people to act against their own self-interest would be very expensive you'd have to entice people with huge kind of financial compensation but would be a scanner shows that people will act against their own interest for a very small carrot a nickel a penny they'll do acting against their own self-interest because people are silly

in that way as china's. capitalizing on this with their social networking score and they're getting people to give away their sovereignty not that they had any in china to begin with but they're giving away what remains of it for a score on the social networking which gives a maybe an extra piece of candy at the at the drug store if they don't do it the state wants they can't get on public transportation they get you know thrown off the grid and so you know this is now playing out globally because people want to do business with china it's creeping into the global business infrastructure so american corporations that want to do business with china china saying that's great but you've got to buy into our social networking grid social score and american corporations of course being victimized by the same b.f. skinner like. draw into obedience are saying we're whatever bankers will do it for a nickel you know warren buffett's not a penny on the street he won't bend over

a crack at me for i mean we have covered in many many in the media have covered the negative aspects of it that you're punished if you have a bad social credit score you won't be allowed on the plane they they excluded millions of people from flying home this past holiday season but it's the positive reinforcement that you can see acting through our society's already look at london it's a huge construction zone it's a disaster area i would say but nevertheless a lot of people think it's great because they're being the positive reinforcement is if you're a good citizen if you're a good sort of person then we'll give you say this help to buy we'll give you fifteen percent of credit if you go further into debt because that's the sort of citizen we want one that is in debt and speculating on property markets and here is how they how they control people with positive reinforcement and get them to buy into this system is that citizens with high credit scores can access better hotels rental homes and even schools well those with low credit scores can be temporarily

. eminently banned from taking planes or trains as happened to six point one five million people in twenty seventeen on the government's own figures a pilot version of the scheme run this year in hong's you city reportedly saw citizens with high social credit ratings get free access to gym facilities and shorter public hospital waiting times on the business side the brookings institute has reported that business that pay tax on time and abide by government demands will get better loan conditions and easier access to public tenders non-compliant businesses will face more difficult business conditions so look at our system whereby a certain banks get free access to cheap credit zero percent interest rates and the government the treasury will actually take all your bad debts off your books if you behave in a certain way if you provide basically a financial system that favors them and the people who are the elite the fear of

money system is dying and so people are going to take money out of her and see and put it into crypto and they're going to have to broad past which is they can put their cash into obedience going which would be this china social networking score and hope to get more frequent flyer miles and a freeway being down at the jingjing or they can go down the big bad which is individual sovereignty and used opting out of state control and that's the war of the twenty first century and this is how different states are going to react differently to the presence of crypto in some countries all cash is got rid of completely it's completely electronic cash like sweden for example so people now have to make this choice are they going to go down to beauty and go on and give their life away for free down it or are they willing to stand up and be a sovereign individuals obviously b.f. skinner would say that people will never organize themselves in

a productive capacity to be free of tyranny. well and again like here you have these people who are being rewarded handsomely if they are obedient and they probably feel like they are good citizens and their leg good people and they wear certain colored ribbons or responds and you know signaling virtue signaling essential their virtues signaling their their good compliance with the norms you see this all the time on twitter in our own economies and our own cultures and societies whereby people will say i have nothing to hide i don't care if the government takes all my data and spies on me i have nothing to hide because they don't realize that. economic and politically. solver and individual actually does have a lot to hide because you have your own free thought you have your own free assembly and that is something worth treasuring in hiding in protecting from these corporations from these data miners from these authoritarians the prizes you get

for a median salary relatively good free down it in a few years will seem like a king's ransom but as more people opt into a b. and going those prizes are going to shrink don't it to a virtual down and to a virtual don't cram inflation in obedience going this not of regulation. and so you end up with the casino so you have people plugged into their electronic devices playing virtual casinos all day being obedient not questioning authority and then like any casino they'll win and occasional virtual donat crumb and little fill their heart with joy and they'll think about having you know some kind of ritualistic ceremony to celebrate their great fortune in the obedience going world i think you have to obey the time and go to break here we speak of obedience we got to take a break when we come back the legendary amir talking don't go away. camera

. roughly once the show is a move pay you for them. to. shoot your own cool videos doing. this someone with the broccoli staring at. you down more on string i don't rightly don't t.v. aggression is it we are in our house and so i do is to have our group open employment and we see how. we do this you know especially in the land so i would say that our success stories are. it's a story once again because we have issues with the political game the point if you could are going to but we didn't we didn't succeed in achieving a good economy goes.

the democratic party is in big trouble the party has not come to terms with the outcome of the two thousand and sixteen election they have a leadership out of touch with its base millennial our fleet so is their slogan now no party to tighten it. welcome back to the report i'm max keiser time now to go to a mere talking a bit coin legend i may welcome back to the kaiser report thank you for having me you know you were one of the very first people we met that was back in two thousand and eleven and you were already a veteran in bitcoin you started when it was in the pennies just recap briefly at that period you got involved in what year what time and what was happening though is that there was a time. because we just thought. we were in this for the long

day we thought that we saw the big. huge potential inside of it and we're willing to devote ourselves to the op ok you say we were in it for the long game when you say we era for into a pretty small group of folks yeah like a handful of people recruiting you guys including us you're the fust to report on bitcoin yes because of thanks to guys like you who we found to be a newsworthy and then when we talk to you we found that there is tremendous intellectual depth to what's happening there with big going and so one of my questions i want to ask you is that in the beginning back in the two thousand and nine ten eleven period it was very difficult to describe what it client is and here we are twenty eighteen and i think it's safe to say that it's still very difficult to describe what bitcoin is i hear people on c n b c and other mainstream analysts talk about bitcoin they don't really seem to understand it any better than people

are trying to understand it back in two thousand and eleven what do you think of that statement because it is no investment scheme it's not a more convenient way to trade money online because when as he said on the original website is the pits appear for my money cannot be controlled by governments and central banks is really important don't. so that with what big queen can truly a chief humanity which is liberation from this financial system in slave i should becomes realized. what do you think about this lambo crowd i mean i go to north america because in conference for a couple years down the road to thousands of participants in the early meet ups or maybe five or six year you're in the first big conference ever of prague there were a couple you know developers there maybe twenty or thirty people or hundred people in s. and total but now you've got this idea that it's led by everybody and it seems like

that far removed from the original vision they talked about the suppose you white paper there but they also mention it's a get rich quick scheme summerset it's a get rich quick scheme disguised really to get people to accept money that isn't controlled by third parties that is a controlled by governments as kind of like seduce people into accepting something that's highly subversive you don't get me wrong it's great that we have some much capital in this community and in all of the cryptocurrency communities the rich people are really putting into a lot of projects to think about how can we not just construct financial systems but new form of law governance called me all of the social life and thus fantastic because as technologists we've been trying with putting our energies into these things for literally the last two hundred years and for the first time in a period we have access to huge amounts of cup is to realize all visions the same time you have to realize it is not just capital that will automatically create

value that is a core of people not core of people is driven through a vision for an idea of the wild ok that's interesting idea that capital is not necessarily going to create the value yeah that's a very interesting statement so the value is resides somewhere else it's in the network it's in this rabbit hole we call it coin that people can get lost in very quickly and the value proposition is not obvious and so then we come to the idea of why do. measure mcconnell like nouriel roubini or paul krugman at the new york times why they get it so wrong wired and what are they missing they they turn to just totally misunderstand was happening here where you think what we're experiencing now in the west also with the rise of right wing nationalist groups and religious fundamentalists is

a clash of two fundamental worldview is that there is like an older viewpoint of the world just sees the world in terms of like what we can see what we can touch most and it's something fundamentally see the. all of the questions all of the life problems of humanity can be reduced to economic questions but what we're experiencing in the west is something deeper is is is like a loss of humanity is a lot of meaning and purpose that people work their entire lives jobs that they know is completely meaningless and has no value whatsoever for money which is literally printed by a central bank and there is now a growing desire that people want to. they want to have lives not just they don't just want to be. objects of mechanical parts in a giant a process is managed by an elite this is trying to keep the capital flowing to keep

the system stable that the people are seeing more and more that there's a there's not a lack of a spray sharon bishan and this is deadening and what bitcoin represent is is a way for us to break free of this system of financial or economic inscription of a vast labor force of of people it seems that economics evolved over the past hundred years sense or or so the industrial revolution which brought in an era of specialization and specialization to degree where you have people really and. they factories in china you know assembling products like i phones and is mind numbingly repetitious and so the rise of technology is like search engines which for people the ability to cope completely forget what's in their heads they have they don't need a brain essentially because it's being outsourced to a third party this platform called a search engine but it seems like because it is reversing that trend it's bringing

back a consciousness fusion in that all of our thoughts are being timestamp every ten minutes to validate this value proposition and i wanted to ask if you think that the current technology which is processing forty quintillion transactions a second that's forty thousand quadrillion transactions a second is the leading us to something that maybe we haven't even imagined yet some kind of consciousness fusion on the horizon i don't mean to get too esoteric care but we have had many conversations about this technology and i haven't talked to in a while having had any new thoughts along these lines the i think if you intend ology it doesn't go in a straight line you can go in many different directions the danger is is the technology is now who are building these technologies they they do side of light

what is the end goal where are we heading towards and like so many of the technology movements before them why development of the computer is the filament of insulin that development of many different technologies the end up just to. become taken over for example if we don't as technology is now come together to organize to formulate like a sense of direction it could very well be some big bank or big corporation adopt this block chain technology and and really make it something as this. mainstream when we lose the opportunity that we had to really put some think in place that was able to change the society around us is to think there's an attack that there's open from dystopian elements big bags i don't think it's a technical problem is this a social problem because certainly within the community there's so much splintering going on in all these other all kinds of all that focus was attention more just on

bitcoin and for example second layer development with lightning networks how do you think lightning networks. would you see that going just this last week i was in a really big technology conference in berlin and the whole thing the whole thing just fell really fake and it was this is this incredible to see all these people coming and talking about block chain and technology and it was just like a. form of like mass brainwashing really but then i went also that same week to a lightning of that it was a much smaller event like less than a hundred people but it was inspiring years so it was probably one of the best events i went to this year everybody was there was a lot of energy a lot of sense of drive to think ok how can we make this thing and that's the point i'm trying to get is that the technology has the potential inside of it is there waiting for us to take it and to use it on the world to change the world in some

way we have to be conscious of that and it is not something is going to happen automatically and this is what big one is experiencing now is this is this kind of . this is kind of sense of oh we don't need to do anything we just need to tweak the technology we just need to fix a few bucks here and there and it's eventually just going to spread like wildfire and say no it's not going to be like that we need to go to africa we need to go to asia we need to go to latin america we need to underlies different regions geopolitically we need to build the top. we need to organize we need to spread these technologies and that's going to it's going to take a huge radical transformation inside of a community ok so you mentioned politics there year because travels have taken a deep into politics you want to syria to join. what is a. ridge of bridge aba economic advisor and ended up fighting isis

now we've got about a minute i have left can he cut his give us an update on what or how that all happened if there is a group of guerrillas now in the middle east they crossed over into syrian sides organize the local population and this is a force that really has the potential to transform the entire makeup of the middle east and is one biggest opportunities the have had in the last one hundred years and now in rich off they started to technology program and every interesting crypto currencies and also the tools for digital governance and economic resource management so that's a place of huge amount of potential but there's a lot of what needs to be done to buy she built the technologies to enable big coin another crypto currency to scale to a national level right so here you are taking this crypto. new top in the one could call it and introducing it in one of the most politically hot

spots in the world and what how was the reaction locally a lot of the p. in ridge offer have full support of the administration i'm of the people understand crypto currencies and the potential of it is just the big coin and all these technologies we're building they're not ready yet to serve on a national scale a lot of people developing these products are now developing different visual there's a huge amount of work that needs to be done in terms of telecommunications in terms of infrastructure. differ. software technologies hardware is a huge body of development that need to be done now you know around the world governments deal with the legacy of u.s. dollar imperialism the us empire is based on the dollar based on debt and one way to do dollar rise is to move it out of the dollar and into because it but that's a message that most governments are not able to intellectually leap in that

direction how. well you've observed as well in job that they recognize cryptocurrency is a very important thought for their economic political program which is about decentralized ation of the economy if i just quickly explain they used to be a group that was fighting for independence but then as kurds they realized they couldn't become independent because they were split over forty from states so they changed a program to actually organizing the civil society to become so to create their own self course for thomas administrations as a powerful structure outside of the state so things tools like digital tools that allow them to govern. their economy without needing a state on a local level in a decentralized way is something that is in line with their political program and they recognize the potential power there is

a matter of survival as well all right i mean you're jockey thanks so much for being on the kaiser report thank you well that's going to do it for this edition of the kaiser report with me max kaiser and stacey i would like to thank our guest i mirrored tuckey if you want to reach us on twitter it's kaiser report and i stand by oh. you know. that i would add that i had done a. i'm not good at that i'm not out of the i'm not of a monday the day of the night at a gym. this was a good time to. try to move there i'm. not that out loud yet oddly enough why not.

why extending the old people we believe is the obedient. little of my kids i don't want them up with johnny but i already know the moment i thought of motherhood not accusers are there a lot of them i'm a little white community will do a little of the things i don't want to put out the other in my worst party without all the mother floating. across europe municipalities are taking their water supply back from private companies to me to people this is the simple song alone even some company gets full elsewhere though they invite private companies to take over the utilities many

bought a telescope of a lab solicitously got to be a violin the going to go by ben this is. the quote them out. for you member of the left bill brought up locals are ready to stand up for the basic human right of access to water it's about water but it's also over much more than water it's about the hurt and the redistribution of. words and their date down words be won or lost.

favorites brazil two time one in cars to book a place in the world cup semifinals. plus earlier on friday friends knocked out your boy with a two nil victory and mission enough got a. friend on cloud nine following their porter final victory as fans waved flags and climbed on cars in celebration. next hour my colleague joins me with the latest world cup updates and other top news stories coming up here on our to international cross talk looks at why the u.s. democratic party is losing the support of more i mean.