the security crisis in afghanistan with says a suicide bomb attack in the capital claims the lives of at least forty eight civilians it comes off to a taliban attack on the security based on the same day reportedly killing doesn't. mean while donald trump provokes the security clearance of former cia director john brennan the white house says the president is looking into also revoking security clearances of several of the high profile figures makes with the intelligence community. russian cosmonauts complete american space last thing namely eight hours carrying out for paris to the international space station. is the place to go for more on the latest headlines next. is the cause the reports in

the u.k. and ireland it's. just this is the report. silly johnny cash so many times in my life that was just one of them anyway enough about johnny cash was talk with stacy max you know it was in this white house here in one nine hundred seventy one whereby president nixon before he was impeached did take the united states off the gold standard and thus the entire world off the gold standard and we were on a total fiat's currency standard and we have now reached the you know the basically chaos that he sowed at that point in time forty fifty years later we're now seeing these huge trade imbalances but we're also seeing what

happens when our time preference has shifted and we became an ultra consumer society we don't create that much wealth and a lot of people actually you see are unhappy they would rather create wealth they would rather have meaningful existence and i think that's part of why we have the opioid addiction and all that sort of stuff but that's for another episode so i want to talk about the fear at money this is men with the guns are sent by the people in these buildings as paul krugman would say the men with guns back our feet but here's a cartoon somebody named peyton sterling did and that's max kaiser and the lying because it's not a bubble big corn is a pin it looks like pepe max kaiser elegant is right well done that's your west thing yellow and i only like you that's great for them over christmas as a stocking stuffer you can get one of these dolls and be the envy of your entire family and that's not your neighborhood you know thirty seventy one it's another

legacy of the vietnam war as a talk about morrell the collapse of morality in the nixon had to start paying for that war and got us all to go senate to expand the credit credit expansion to buy more guns to fulfill the what eisenhower warned us about the military industrial complex so since then we've of course had hyper financialization and the cation of all. the assets of america and this is why we've seen rapidly escalating in the past two decades especially the cost for health care the cost for education the cost for many things houses things that used to be within the reach of an ordinary worker and i can remember back in the one nine hundred seventy s. my mom after my dad passed away was a single mother and she was able to buy a house go to university with three kids and still like how imagine a twenty four year old woman being able to do that today no it's not possible because of the high profile until ization and all the credit and debt has driven up

the cost of all these things and yet wages have not risen so i want to turn to a tweet that i i made reference to a wall street journal article and they were saying that the u.s. will soon spend close to twenty percent of g.d.p. on health twenty percent of g.d.p. and health i said you know what we are high deductible health insurance policy masquerading as a country it's a hospital disguised as a cannot even that like a hospital at least like if you're dying they're going to fix soon they're going to like give you resuscitation and put some also some machines in new there might be some use there but this is a high deductible health insurance policy it's just a piece of paper that comes with a lot of other paper every single time you visit the doctor you get thirty forty pieces of paper to explain what happened and whether or not they going to pay and how much it could have cost and blah blah blah but here it's just a piece of paper that financialization as a piece of credit that you might possibly have so it's

a high deductible health insurance policy masquerading as a country as a result of hyper financialization that goes back to nine hundred seventy one and the closing of the gold window in the absence of hard money in our economy and it's only getting worse and twenty percent of g.d.p. for this type of behavior health care is a shame you know it's i'm an embarrassment it's a drain on the vital resources of the country when you have all. all that capacity going into something that's completely unproductive of course it was dick cheney who said that russia was a gas station masquerading as a country and i think it's something like twelve to fifteen percent of russian g.d.p. is ghassan oil so there is a problem when any sector becomes too powerful and what happens especially in an economy like this is lobbyists and how that power begets more power that concentration of wealth begets more power and a worse situation so that why we're going to get to twenty percent if we get to

twenty percent of our g.d.p. to health care the health insurance industry it's going to get to twenty five percent and thirty percent they strangle the rest of the economy health care has become a larger part of the economy creating powerful constituencies resistant to change in the way the system operates the health care industry over took the retail sector as the nation's largest employer in december given local economies and their workers a stake in the industries growth health jobs surpassed manufacturing jobs in two thousand and eight and these are not productive jobs sure they save you from maybe dying but they are not productive jobs are not adding to the wealth of the nation the number of doctors as a going up the number of bureaucrats is going up the bureaucrat numbers for every doctor used to be maybe wanted to bureaucrats product or now it's ten to fifteen bureaucrats production and these bureaucrats just push paper around like they push for x. money around to make fees on for x. exchanges no reason for a four x.

exchange if you have some global money like gold or big going there's a need for this insurance industry to push all this paper around if you had a health policy that was commensurate with the health needs but since you have on set or irresponsible lobbyist accessing unlimited credit from an irresponsible federal reserve bank you have a infinite regress that you saw with money starting in the one nine hundred seventy s. . and now insurance companies selling insurance on insurance contracts on insurance contracts on insurance contracts with another bureaucrat and another bureaucrat is infinite regress taking the country down a slippery slope into a mommy asthma of third world status highest infant death mortality rate of any industrialized nation they have america they have that all that data on this wall street journal article but we're going to talk about the role of the us dollar and the sort of debt based system that enables this sort of system because this is pure decadence this is really a kind of

a gruesome situation where it's not even like it's covering everybody like it's not like europe where they're paying something like eight or nine percent of their economies our health care but everybody gets treated here it's like this weird gruesome thing and now it's you know exactly what they point to they're the jobs so you're never going to get rid of it because in say well you get rid of you lose jobs same with california where you have this powerful prisons and all those thirty three strikes you're out you stole that piece of pizza well that's your third strike and you know what you go to prison for forty five years and no possibility of parole to a twenty year old guy and they have situations like that in california and their populations willing to spend forty five thousand dollars a year the next sixty years to incarcerate as a twenty year old because they stole piece of pizza well this is the tragedy of money versus hard money that people will continue in a job being paid money that loses purchasing power every year the u.s. dollar losing over ninety eight percent of its purchasing power instead of taking

a breath taking a step back and demanding sound money as it's stipulated in the u.s. constitution not to demand hard money or sound money for wages is to be essentially dictating any kind of connection to the constitution the united states you're not even living in america at that point you're living in some backwater i just thing. if we did have a different sort of global financial system and trading system that we probably wouldn't waste our money on these sort of things and i don't think it's very healthy to spend so much of it seems like we're a very unhealthy society of course like we have as you mentioned in for mortality rates and there the mortality rate itself for adults is also increasing so it seems like probably it's a cause and effect there i don't know but i also want to look at this other chart your from wall street the revenues of health care companies represented nearly sixteen percent of the total revenues of firms in the s. and p.

five hundred last year which is up from four percent in one thousand nine hundred four when you were working on wall street so that's up four fold that's what it looks like on a chart form. since one thousand nine hundred four goldman sachs at this point could take cancer public as a plus sign just gave them an eye on i.p.o. they would say were half a billion dollars were taken in a syndicate put it together were taken cancer public and we're going to make sure that everyone gets cancer in america in the next two years and these stupid idiots in america would vote for that they'd buy it they'd support it they lend money or not that it's just people have been confused because they think there's free money and they think they're so that the government demonstrated that when they bailed out banks they looks like a magic act it looks like something magical has happened and these banks are rescued and look this is like paul krugman is right on sorry to say call people stupid but what happens in the money begets food it begets

a lot of junk thinking fake news it is the result of sake money you know price precedes news if you have hard money you have hard prices and hard news but you have fake prices and fake money you have fake news and what that's another consequence of having junk money junk food and that means of people by definition are stupid there i choose are dropping like. iraq i don't know about their i.q. because that's one thing but they're perhaps understanding of the world when you mention hard news of course you think of the vietnam war and all the great journalists of that day who were willing to confront power power with the truth and that doesn't happen anymore that definitely i know of no individual like c.n.n.'s jim acosta who's in the you know press pool at the white house he gets his lipstick smeared one day and starts crying uncontrollably on primetime t.v. and wants a bailout from the government i mean think of all the reporters during the vietnam war who are puking when they see a jim acosta in the white house press and then look we haven like a like

a little you know i learned finally i want to i want to quickly say the stock market is shrinking that's a problem for everyone the american stock market has been shrinking it's been happening in slow motion so slow you may not even have noticed that by now the change is a mistake of all the market is half the size of its mid one nine hundred ninety s. peak and twenty five percent smaller than it was in one thousand nine hundred seventy six we've lost it we're now isn't of company doing reporting on it yet americans being taken private was all that sake money so this is a problem because this is the wealth of the nation what i'm saying is like there are fewer ways to even participate and it's only the top two hundred companies and by the way of the s. and p. five hundred who are of the thousands of companies actually listed that are earning any money every single one outside the two hundred in general they're losing money this is the new road to feudalism speaking of the road to feudalism and big name economists and even bigger name bigger economists like safety and lewis is going to be here in the second half of the two part. don't go away.

you know world of big partisan movies lot and conspiracy it's time to wake up to dig deeper to hit the stories that mainstream media refuses to tell more than ever we need to be smarter we need to stop slamming the door on the bath and shouting past each other it's time for critical thinking it's time to fight for the middle for the truth the time is now for watching closely watching the hawks. join me every thursday on the alex simon show and i'll be speaking to guests of the world of politics small business i'm show

business i'll see you then. welcome back to the report imax keyser time now to continue with a conversation with safety and imus is the author of the instant classic the bitcoin standard welcome back thank you mike so we can end it off our conversation talking about chapter five of the book time preference high time preference versus low time preference you are professor you teach economics all the time you use the example of the that little kid with the marshmallow are they willing to defer consumption now to get to marshmallows in the future and this of course is not stressed in the u.s. people are by definition of keynesian economics to go into debt immediately to consume immediately to get g.d.p. up immediately doesn't matter bombs dropping bombs going to debt it g.d.p.

has got to be higher and there is no sense of individual responsibility or building equity in any sense so how does this relate then typical yeah i think the key thing is that you know your that your time preference is the time and by many many many factors having to do it safe you live in a place that is peaceful you're more like to think of the future if you live in a place with conflict you're more likely to think of the present and have a high time for office because you're not certain that you're going to be surviving but one factor i think is extremely important in determining time preference is money and in fact how the monetary unit is capable of holding its value into the future will essentially act like a control knob for society's time preference you know obviously won't force everybody to it won't be complete the only factor but it is a significant factor that will tend to get people to behave in certain ways so if the monetary unit will lose its value over time people are more likely to want to spend their money so if you look at venezuela today people get paid they run immediately to the grocery store to try and spend their money and buy anything that

they can have because you know buying canned food or anything is much better than holding onto the money which is losing its value quickly on the other hand when money is hard people will think twice about. spending it you know if the money's going to appreciate every year you'll think twice about spending it today because you could save a little bit and have more tomorrow so if you look and the amount of the example that i draw the comparison that i do in my book is the comparing the nineteenth century to the twentieth century nineteenth century was the century of hard money and if you look at savings rates across the european countries and across the u.s. and you find that savings rates were very high back then because money would appreciate the money being hard meant that the only way that you would get people to borrow would be through having other people save and so the interest rate had to be high enough to coax savings out of people's hand and the interest rate would drop incidentally and would continue to drop it would drop as a true market signal as a true market price because people are saving more that would lead to lower interest rates and this is really what austrian economists bomb beric calls you

know the interest rate the best measure of the of the nation's morality that when people are able to be extremely conscious of the of their future they save a lot and that brings the interest rates down in the twentieth century we've seen government money bringing interest rates artificially down so people don't want to say they don't pay for a living exactly it's exactly. that it morality we're going to. buy low interest rates because that's our virtuous signaling by keeping it at first if you're not actually saving resources there then you're just trying thinking that you're going to get a free lunch and that's of course you know a keynesian thinking doesn't understand the concept of opportunity cost that doesn't understand the concept of think the for the long run because it is fixated on getting current spending up right now you know it's just it's the eric cartman high time preference i want to try to now moves way of looking at the world you know we just need to get g.d.p. up now doesn't matter if it means bombing countries or giving money to any any kind

of stupid cause or having government build things just came from self said you know digging holes and filling them up again there's no concept of economics courses in the fact of this man encouraging aliens to. day from outer space absolutely get our g.d.p. yes absolutely this concept of all people what matters is with the right now the right here and so that drives people towards more spending and government policy and low interest rates drive people toward spending more saving less borrowing more so if you look at savings rate today they're almost nonexistent across the western world the one country that still has a relatively high savings rate to switzerland which was the last country to go off the gold standard so this i think is an extremely important fact and that's what got me reading interested in bitcoin in the first place because this is a chance for anybody in the world the matter what your government is doing you can opt out of your central bank by going online and joining the internet's central bank which is almost unstoppable you get a centralized bank it's a decentralized central bank you join it and you have your money and you can start thinking long term and you see this with bitcoin as you know if you if you talk to

big corners you know they'll tell you once they started holding on to between they started understanding the true opportunity cost of holding on to money of spending money and they start becoming more and more conscious about what they spend their money where there's like a way of life that be commensurate with what we hold here in the united states as being american values you know ben franklin said a penny saved is a penny earned yes thrift and frugality are american you know value and this is reserved for us in the eighteenth or nineteenth century was in the twentieth century that this conception of the u.s. as a consumer economy came along and i don't think it's no coincidence that it came along with high and with artificial manipulated low interest rates and people equate money with credit like even last night at our event the subjects' it's a wonderful life the film came up yet as somehow the fact that somebody needed to buy a house and they didn't have the money for it and they went into the credit markets for that is preferable all to the idea of being able to saving and fiat house sell

and the interesting thing about that example is that you know at the movies from one hundred forty seven and the house that they want to buy is five thousand dollars worth so you know it's makes a. emotional appeal to the cab driver who can't afford to buy the house and you know if we give him credit he'll have the house well you know it's sixty years on we says the seventy years on we see that the price of a house that house that was five thousand dollars back then is probably half a million dollars right now so that you know you're not going to create resources by printing up pieces of paper having the people to buy things you're just going to raise the price of earning a camera or all never buy that house because the price keeps escalating does all the credit exactly chasing this credit heroin trail yet into the rabbit hole and not only that it's actually becoming less affordable over time because people instead of actually working on building more houses to make the more affordable they're working on trying to get their hands on low interest rates but it's a sound money hard money it's it's part and parcel of an economy

that rewards savers and also gives an economy where banks screw up they go they must go out of business they can't be bailed out and then hard money is just the natural outcome that would emerge on a market people will choose the hardest money whether they know it or not the majority of wealth will end up in the lot of money because people who choose easy money when on the blues in their wealth you can only get to this sort of situation using crewman's favorite men with guns will force people to have a high time preference to force people to use money that depreciates to force people to think of the present because as keynes said you know in the future we're all dead well you know he's dead but unfortunately for many of us we still have to live in the consequence as henry has the brilliantly you know we are now living in the future he warned us where he told us not to worry about because we would all be dead well he's dead but you know he didn't have children but but we are around we

had suffering from the consequences of that we've suffered from the consequences of decades of having governments have the ability to print money at will financing war financing whatever they want and turning it cannot. well from being something that is produced that that is earned through producing something useful on the markets into effectively government brownie points this is just a loyalty scheme to government the government towards people for being nice citizens would do it was assassinated china with their credit score so you mentioned earlier that people are being messed evangelized about big client and sell and you know this book is brilliant and so educating people i think is going to be part of your you know go forward here my understanding is you're going to have a newsletter so what sort of content will subscribers expect in that after writing the book you know the book was extremely sensible to beautiful process but it took me about it was eleven months from the time that i finished the first draft of the book and until it got published it takes

a lot of time to go through traditional publishing means in order to get it and to try and publish through wiley is the publisher they do the job that is very well edited i don't see any typos and i think that's good job while you get an absolutely thank you bill bennett wiley did a wonderful job with it however you know it's still a brick and mortar institution and you know that going was very very quickly and ray you know i would love to have this book out earlier if we could but also what i think you know what i think moving forward the best way for me to be able to work is to try and. provide my content directly to people who are interested in it and that's why i'm going to you know instead of working with institutions that might set their agenda and instead of trying to go through publication menus that might try to force me to tailor my message in a certain way i'm not saying why you would like that they were absolutely brilliant in how they did it but i'd like to just have the ability to send an email directly to people and this is what i'm going to be working on right now i'd like to and i want to make it a subscription service so that it can finance me to allow me to focus on this full

time so that i could work on bitcoin did a bit of research to people who value it immediately and not have to worry about you know appeasing anybody's agendas or so on so if you're interested in my way. if you like my book i'd urge you to log on to my blog on my website or my twitter and you'll see a link to the patriotic page which would allow you to subscribe to my research but within it's going to be a monthly research report in which i discuss some of the more important topics and bitcoin go over the economics of them and ok so now the technology itself is not really the main topic this is more putting it as an the role of money and the history of money and months area history and economics and this is been sorely lacking in the space for example this idea of a what is big coen what problem does it solve it solves the problem called money and money is requires the problem of paul krugman. yeah thank.

the owner of the new york stock exchange rates they said that bitcoin to be the first global currency i mean i think that admirable sentiment but it wouldn't be the first it would be the second the gold was the first global currency the gold standard was effectively operational across the world bitcoin we didn't need all of this economic all this technological innovation in order to develop a global money because gold emerged as a global currency on its own without any of this technological stuff however what we need bitcoin we needed all this technological innovation for what we needed all this in lab it an extremely complicated big construction for enormous mining and proof of work is to get around government control that's really what bitcoin does it allows you to have money that is much much much much harder for governments to control than all the other previous alternatives and that's really what it's what i think is important about it so the talk about the nineteenth century the gold standard in a period innovation and staying about it reading it there's some very straightforward

logic hair that during that period with the gold standard which was kind of near the industrial revolution you know part of the industrial revolution was that you had standardization screws are the same size wrenches are the. same size and the center line so the gold standard had global trade and everyone traded with the same value per ounce program. forest which had global trade would because money was not like a five trillion dollar a day for x. market absolute where there's always variation is fluctuation in every can't plan on what you value of your output going to be because the currency is constantly in flux when we went post gold standard absolutely i think that the move from one universal global money to this national currencies in one country might just be the greatest technological regression in human history you know we the idea that in one thousand nine hundred you could travel all over the world with gold and you could measure prices of goods and services and products from all over the world using the same unit which was constant in its value is it was an enormous idea is enormously

beautiful and powerful thing that allowed the economies of the world to grow in a lot of global trade to grow in the most innovation you argue that we've ever seen in a concentrated period in the twentieth century would just kind of variations on things that came during this cold yes a that year and another you know we'd like to think of technology is always advancing but i think you know the zero to one kind of innovation the most transformative innovations we've seen where nineteenth century innovations and in the twentieth century improved on it in fact there's also data that shows that the percentage of into the amount of innovations per day per capita in that period was higher than it is today and i think the reason for that is related to time preference led to the ability of people to think long term and also related to the fact that there was this one unit over the world that allowed businesses to plan very well then you know how to cut it up and all that is distinctly a brilliantly encapsulated in this then volume which is a classic as think thanks for being on the kaiser play because so much for having a nice pleasure that's going to do it for this edition of the kaiser par with

a max kaiser stacy i would like to thank our guest safety and author of the pick one standard if you want to reach us on twitter it's kaiser report until next time by all. please play. play. play. for i've been saying the numbers mean something they matter to us is over one trillion dollars in debt more than ten white collar crimes happen each day. eighty five percent of global wealth you longs to be all for rich eight point six percent

market saw thirty percent from last year some with four hundred to five hundred trade per second per second and bitcoin rose to twenty thousand dollars. china is building a two point one billion dollar a i industrial park but don't let the numbers overwhelm. the only numbers you need to remember is one in one business shows you can afford to miss the one and only boom by. such.

welcome to worlds apart sending humans into space has long required a national and even international effort to provide all the necessary financing and technology but space access recent successes in hauling freight into orbit claim to challenge these paradigms against privatized space services make space exploration cheaper and easier well to discuss that amount joined by geoffrey hoffman an american astronaut and currently a professor of aeronautics and astronautics at the massachusetts institute of technology and dr huffman it's so great to talk to you thank you very much for your time pleasure to be here now the world is still mass murder by space x. a recent falcon have a launch it was certainly very spectacular i've heard some people compare it to the launch of sputnik or the landing on the moon i wonder though as an engineer do you

think that was real.