most people say but nevertheless somebody tweeted that you know a link to some of the people you should follow in order to understand crypto they put a. novelist fault being eric for he's roger there and then professor faust who is this fakes a toshi guy and then max kaiser and he wrote about you he said you put me next to keys or chill and ponzi temper of the decade erg bitcoin is cash freedom not some hostile ponzi so what do you have to say that max poppycock. well doesn't it stand really that there is a history of money that came before bitcoin and that there's a need for people to have hard money and that there's a need to exit the government system and there's a need to exit the central bank system and if the object of your project like becoming cash is to spend your way into debt then you are merely replicating

all the worst aspects of the current system so i think this guy was sent here by toshi the anti christ of big calling to keep people focused on what's important that is hotaling and bitcoin if there wasn't a craig or a he would have to be invented because you need the guy in the story who's the who's the nemesis who's the punching bag who's the loser and now we have we have it as dame as dr craig so in your interview in the second half of safety in a moose and you've just interviewed him so i got to see it you do mention that in chapter five of his book it's all about time preference so here is a guy who claims to have like thirty six masters degrees and seventeen ph d.'s and that he said oh she nakamoto and he invented this stuff and he therefore in his tweet displays that he himself does not understand economics that's the toshi not comodo would have they would have understood time preference they would he would

have understood the significance of time preference to developing and building wealth and this guy whoever dr craig wright is he doesn't understand that where he's saying it's all about spending not whole holding not building wealth not saving for the future and if somebody whoever invented. bitcoin they created a deflationary currency so it's very bizarre for somebody to say i have to toe she and in fact even though it's deflationary even though. there's a fixed supply even though it's mimics the way one mines gold even though all that stuff exists i actually meant you to spend it like it's a visa card not accumulate it stack it save it and build on it is the jim jones of the ghana suicide cult when it comes to big oil if it is.

then i'm oprah winfrey. and he doesn't understand the first thing about it or he may have at one point like saying remember was a friend of christ true and then he was cast out of heaven when he became you know he was an angel and then he became satan craig rodger of a air. the whole bitcoin cash are fallen angels they have become c tonic and they are important because they provide the ipso facto the beta to the alpha the nemesis to the hero soto she is the hero craig wright is the villain i'm going to move on to the next headline but i do want to say in the past we have discussed it but we believe that what cash meant to the cypherpunks who developed because it's not just ones that toshi nakamoto it's whoever even if it was an individual they were building upon innovations and creations and ideas of the entire cypherpunk movement of thirty years prior and cash was about anonymity and

basically trust lists internet and permission lists interactions financial and communication so i think that's why this guy is it was never about competing you need forty thousand quadrillion calculations per second which is the current hash rate or thereabouts to buy a cup of coffee i don't think that's really the point the store of value proposition the ability to operate outside of the government with hard money store of value the first time in history is the use case so. oh dr. craig right think toshi in is no different than dr paul newman dr mengele but it's a bit harsh as you say dr paul kruger dr michael will go into dr craig right they are eugenicists as was cain's ok and was the genesis to exactly let's keep that in the past and let's move on to the future which is this headline i have a tweet regarding the trust listen a church of big coin people put more faith in

a guy names to toshi nakamoto that no one has ever met than they do in the u.s. fed now the important thing about this is this quote comes from jeffrey spread sure he's the chairman and c.e.o. of the new york stock exchange and i.c.e. which is another exchange they've just announced this new backed app which is a way to trade crypto currency used in the new york stock exchange but again people put more faith he observes and this anonymous guy named toshi nakamoto who's nobody has ever met and they do in the us fed which is a very powerful observation it's a profound statement i mean do we dole invented fire no but doesn't stop me from using it do we know who invented the wheel though but that doesn't stop me from using it but the thing is you don't need to trust anybody you don't need to trust the toshi nakamoto you don't need to trust the person you're selling something to or it's selling your bitcoin to or trading your between with because the block

chain is is the distributed ledger is what you trust the math or what you trust so that's what you need to trust you don't need to trust that the maker of it itself evidence and self realising they spontaneously self working protocol that is the turn wall street person into a big corner and that's like turning a water into wine that's like turning loaves and fishes to feed the multitude you're taking a hard core. or wall street monetarist loser in your rising them up like. to become cured of their idiocies and fallacies and disabuse them of their wall street ways to embrace bitcoin toshi nakamoto in the way of the blog jane there's another headline regarding this guy because he was just recently interviewed and forbes and several other publications of course because it was a big news at this app called back to is coming out from them big question could be

the first worldwide currency new york stock exchange owner says he believes it could be a new currency he's also by the way the international intercontinental exchange is that i see exchange but. in terms of this becoming a global currency i think it makes so much sense in terms of how we've lost our way we have all these trade wars. that's i think a more violent way to resolve a situation where the likes of germany and china have massive massive trade surpluses and the united states has a massive deficit the united states because it's a nation and yet the globe uses its currency it has to run a deficit so we'll always run a deficit which means that it will bleed wealth creating jobs it will bleed all those the heartland of manufacturing and then we we lead to a situation like today where we have like a mass meltdown in the in the partisanship that hysteria across how

the people don't trust each other nobody everybody hates each other and it's partly to do with this huge trade deficit and the nature of our global financial system which has you know an resolved without resorting to either going back to a gold standard for global trade or because all these wrong about big client possibly being the first global currency because of course gold was the first you know the currency in the nineteenth century particularly in the second half of the nineteenth century the greatest period of innovation in the history of the world if you read the big price standard you'll know that he was. quoting from the book and because you had a global unit of account so people could do business there was no five trillion dollar day forex market which some centrally equate to kind of a partial barter system which is pre kind of use of money so here you have now this new attempt at a global unit of account

a global currency big coin that will be controlled by people not any subtle government so it has the chance to do what gold failed to do. the interest t's of the central bankers and they have ph d. willed in a condom ists the fact that it's censorship resistant and permission last i think could be though the trigger that sets it off into. being a global currency a global unit of account for trade because you see the likes of venezuela the likes of iran being cut off from the financial grid you see swift being used as a weapon and. people like mass of countries like china china rejects us request to cut iran or oil imports so here's a country any country needs oil they need energy to build they need energy for manufacturing for creating wealth and they're being told you can't do that you can't import these because we control the financial grid i think necessity will lead to ultimately a better outcome which is a bit quaint standard or

a gold standard either way but it looks like certainly china is preparing for a gold standard they've been buying up a lot of gold but it could be a unit of account. seeking. where sent transactions cannot be censored and i think that's the future that we have created ourselves because of these buildings behind us it's such a you know censorship of money that we don't like and such a ship of words you know we like our first amendment right dully well speaking of all these fantastic censorship related immutable blah chain because revolutions from the ground up in the second half are talking to safety in a moose the author of the bitcoin standard so don't go away stay right there.

we have no idea what's a fuse doing on her vacation but she will be back on air in september. the way to the united states is dangerous for most of the illegal immigrants. crossing the most. simple they want to. live on the last on this about but many of them look for refuge in the so-called sentries sides of the drug used to share information about undocumented migrants with federal authorities. bank. was you know you know. that at best i'm not going to question that one that. they

have what are their options to stay in the country with donald trump in the white house. with the who could be bad to be. a said fitz many couples won't. kill the chance the put him put in bills and spun both of you up with a deal with multiple. welcome back to the kaiser report imax guys are time now to turn to safety and author of the bit coy standard safety welcome thank you so much for having me again max it's a pleasure to be here yeah it's a really fantastic book that is gaining

a lot of attention all over the crypto community and all over the really economics profession is looking at this because this is the first major change in monetary history we've had in many hundreds of years actually. people say first question the use case for a bit coin is what and one of the things that is very important to understand is that this is money that can be controlled completely outside of government and that's a huge break in the history of money and as vastly important can i just speak on that to begin with yes so i think a common problem is that the problem people have a big quote as somebody put it to me is that bitcoin has been mis evangelized people have marketed bitcoin as a cheaper better pay pal or a cheaper better visa and master card i think that's a complete category error it's completely missing the point of what bitcoin is and why bitcoin is important because it is not meant to be

a consumer payment network because it will have consumer payment networks installed on top of it because it is more like a reserve assets or more like the base money that is used for the settlement of consumer payments so this is the point of my book was really to try and explain that in the title of the bitcoin standard tries to get the point across by drawing analogy with the gold standard and i think this is really the better way of understanding how bitcoin functions as similar to the gold in the financial system and then the consumer payments are layered on top of that the last continue on this idea that's gold outside of the governments because. governments and the. a central banking system in the c.s. money system and even with gold and under the control mostly of governments and gold bullion banks people do not have really the freedom that they would hope to have in a free society because their money is essentially controlled and therefore they are

controlled by putting money outside of the banking system and giving people access to this unimpeachable immutable sound of money or hard money each change the dynamic between people and government that's extraordinary and all the possible it because i mean i'll just talk about it at length in the book expand on a little yeah absolutely i think a very important book to read about this which preceded bitcoin is the sovereign individual by davidson and reese mark it was written one hundred ninety seven but they discussed the creation of something very similar to bitcoin as the final missing jigsaw puzzle piece that will complete this shift away from having more and more government power and control over monetary assets and over individuals towards moving more towards a society in which individuals themselves have the sovereignty and specifically the ideas that this is the telecommunications. and all of this modern technology that

we have is moving individuals towards having more sovereignty and more control because more and more of the economic activity of the world is now informational it's not physical it doesn't require physical capital it's data it's information it's knowledge and information and knowledge is very hard to control with guns it's very hard to course it's very hard to. put in the service of people with guns you mentioned men with guns there parker ignorant of the new york times recently wrote an editorial criticizing because and as he's done several times he said one thing about dollars and money in the history of money is that it has progressed really taken friction out of money. and the use of bunny and ultimately however the u.s. dollar we have to remember it's backed by men with guns yes now. is our by any chance friction exactly it's a so remarkably stupid thing to say i think it's you know the improvements in payment settlements are not things that governments introduced the improvements in

payments technology became because of the telegraph and because of the telephone and because of all the methods of communication and transportation. and government imposed the imposition of monopolies on these infrastructures have not to reduce the friction of this like that any kind of government monopoly does not help the consumers because of the dozens of districts their choices of the consumers and of the providers so by turning this into a monopoly it does not help the advancement of these things on the contrary it does the exact opposite and the idea that you know having men with guns threatening people are throwing them into jail is somehow something to to boast about about how your currency is better i think it's quite astonishing you know the fact that any business or any individual go around saying well you know my business is better because if you don't use mine then we would shoot you or throw you into jail i think tells you everything you need to know about the kind of business that they're running it's not something that would be chosen freely on the markets otherwise it

would need men with guns behind it so you know the history of the evolution of money and the evolution of payments in the evolutions of the evolution of payment networks and banking is the history of human innovation and ingenuity on the one hand and then human violence and then with a gun trying to co-opt that to the benefit of individuals or governments or groups that the benefit from that but you don't we see this in any kind of a market economics system when there's free market when there's competition when people are free to have a choice between different options the best option wins when governments are interest will have a choice of free choice that gets into. historical economic considerations and actually the big quite standard is in my mind really three books there's the bitcoin book there's a brilliant encapsulation of history of austrian economics which for folks who are interested in austria economics they can get a lot by reading this book and thirdly it's a bit of

a self-help book you know chapter five talking about high time and low time preference is a very interesting look at how it can economies work but that idea of choice that you keep bringing up and. people i think would like to choose to get out of a system that we're in now we're banks like wells fargo are serial. you know criminals all the major banks in the u.k. in the u.s. are engaged in strip serial criminality and this concept of too big to sell and their co-option of the system and their ability to simply print money what ever they make a mistake they just print more money to cover up that mistake people if they had the option to choose a different system i think would choose a different system and so because is that path right i mean you can choose to opt out of the serial criminality of wall street and watch the banks by moving from

money to hard money because it right absolutely this is the incredible thing about bitcoin and why it's a truly astonishing innovation because the men with guns country to stop it it's not exactly something that can be stopped because it's not physical there are no locations to it and you know there are no in my book i have a section of the book that discusses how to kill bitcoin and i illustrate how it's just not easy it's not an easy thing to do so effectively anybody in the world with an internet connection and that means a growing percentage of the planet right now is able to have access to a hard form of money that can't be inflated and that's really the key concept we're having you know. we are putting the men with guns on the side because people now have the choice to opt out they have chose to go around the men with guns and the guns can stop the data going through wires so or through satellites or whatever so the we're going to see this through we're seeing the free market competition now and the guns won't help governments money as people just simply can't exit almost

untraceable he and without any without any ability to detect them you know somebody could have their part of their life savings put in that quine and if more and more people doing this it becomes more and more profitable for others to hold bitcoin and the network continues to grow and provides a serious alternative to central banking which is what really is the subtitle of my book and that's really all how i think of the importance of the bitcoin it's an alternative to a system of government monopolies on central banks around the world where you just get to. choose to take part in a system that performs the functions of central banks in terms of payment settlement internationally and monetary policy internationally without having to resort to the central bank is an astonishing idea if you think about it you know for for people like roman you know central banking was the crowning achievement of financial innovation that finally you know after all these centuries we've managed to find this model of a central bank that has

a monopoly that can enforce force people to use its own currency and you know protect the banking system which there are so micro for a second because of course he represents a school of keynesianism yes and this is a school really austrian school hard money school keynesians kind of define the economy as level of spending and they're willing to go into debt to spend they have no recognition of hard money whatsoever you know i say in the show a lot of times you can have capitalism a capital you can have capital without a savings rate that encourages people to say because that's where you get the money it's a build your economy that's kind of an austrian concept in a way. so here you have finally a way you know to kansans out there the krugman is out they have the federal government in the central banks on their side. clearly they're corrupt clearly they are pushing the war clearly they're pushing indebtedness they're the ones behind student debt they're the ones behind medical debt because they don't think that's

a problem they think and never as keynes said you know in the long run we all die and some of them to that effect that they never there's never a reconciliation but hard money of course was dominated by gold thinking that's where we first met was talking about gold eight years ago or so but big oil out of that not only hard money and for saving but to do it completely outside of the government system in a way or. believing that government of its ability to coerce and injured is schemes that are underwriting the health system the education system and in ways that are not healthy let's talk about chapter five first seconds which i've heard you speak recently said is your favorite chapter after it's about time preference high time preference low time preference a kind of plays into the little bit talk about this if you can't yeah this is a very important concept i think possibly the most important concept in economics i make sure to teach in every class that i teach whatever the topic of the class i

have to get this through to my students because i believe it's the most important concept you could learn in economics and of course you know in the modern economic university textbook it's not even mentioned the concept is just relates to how much people discount the future compared to the present so people with a high time preference have a high discount rate on the future they don't think of the future much they prefer to focus on the present people with a low time preference think more of the future than people who are time preference and this i think is an enormously important concept because on an individual level you know your own success in life your own whatever you want to achieve sure outside factors will affect you but. more important than outside factors more important than everything else in the world is your own time preference your own ability to prioritize the future over the present so a person with a high time preference who keeps ignoring the present and focusing on the sort of keeps ignoring the future and focusing on the present will suffer the consequences of that in the long run you know you can think of the example of say professional

athletes who make a lot of money and then you know once they get tired they're broke because no matter how much money they make they're always spending more and more of it on the other hand full time preference think the people who are born in poverty don't have the blessing of say athlete or artistic ability and yet they work hard all their life and they save and they accumulate capital and the livelihood improves over time i think you know this force of just how you orient yourself with to the for the future towards the present is one of the most important economic right this is i want to jump in and say that's a bit of a self-help book if you will because on page seventy seven of the big point standard you write while microeconomics is focused on transactions between individuals and macro economics on the role of government in the economy the reality is that most important economic decisions to any individual's wellbeing are the ones they conduct in their trade offs with to their future self exactly every day and individual conduct a few of these transactions any all has an impact effectively on their future stuff

you're constantly you are an economic machine in this way if you have a government and a system that's encouraging you to go into debt perpetually you are going to find yourself invariably watching junk t.v. eating junk food watching junk art o.b.'s unhappy and. i wouldn't they inevitably but i would say it definitely biases your desire we have to remember that there will come back we'll do some more we've got to say goodbye for now and that's going to do it for this edition can say for a second ok that's going to do it for this edition of the kaiser is for with me max kaiser stay here. but like to thank our guest safety in a most exciting with the bitcoin standard the immediate classic join to catch us on twitter it's kaiser report and select.

it's a very rough furthur and you sort of rough climates and you have to fight to be able to live in a flat. it was gunshots on top them and so many friends they would have been going to have men and you don't know. don't think anything will back up only you know i don't want to see a better body in this world when these rigid two punches read in the good. old two new books wouldn't. you don't think about these movies so good on you got three teams played here and you know those and other patients.

and i finally ended up going also this weekend at langley now hansei but i live on thousand people find about. finding a few of you who would it be that easy to find a friend that i had and me. plus it said going to see much of the city live people whom they didn't. know but i thought it might have been my little bit of a wonderful enough that i little bit that i'd accept that i don't have money coming over as much of the way for tomorrow not to get a job but it. says this is london just slightly lose. some of the borders of the. city. to see if you can be no problem.

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are. unconfirmed they're treating a car crash in westminster with a terrorist incident after a vehicle smashed into curity barriers outside parliament there in the morning rush hour. also this hour a highway bridge collapses in the northern italian city of genoa something vehicles under one hundred meters of twenty six people confirmed dead. and a lot an american news outlet telesur is blocked on facebook for the second time in two thousand and thirteen raising questions over freedom of speech on the social media platform.

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