well it's our industrial complex so since then we've of course had hyper financialization and the cation of all of 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 as 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 an embarrassment it's a drave on the vital resources of the country when you have 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 changing

the way the system operates the health care industry over took the retail sector as the nation's largest employer in december giving 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 no reason 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 era sponsor. both

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 miami 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 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 their jobs so

you're never going to get rid of it because in say well you get rid you lose jobs same with california where you have this powerful prisons and all those three 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 a 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 some money for wages is to be centrally 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 think 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 year 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 nine hundred eighty four when you were working on wall street so that's up for 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 bonus i just gave them an i.b.m. i.p.o.

they would say we're going to half a billion dollars taken you know syndicate put it together we're 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 us 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 were 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 when you have fake prices and fake money you have fake news and with that's another consequence of having junk money. junkfood and that means that people by

definition are stupid they're i choose are dropping like a rock 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 we haven like a like a little you know and then 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 in twenty five percent smaller than it was in one thousand nine hundred

seventy six we've lost now isn't of company doing reporting on it yet americans being taken private with all that state 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 part too. no go away.

but politicians do something to. put themselves on the law and they get accepted or rejected. so when you want to be president or injury. or somehow want to preserve. it to be like to be prosperous like in the forest tree in the morning can't be good that i'm interested always in the waters among our. guests. america was never great was founded on the rapes and murders. nothing changed so we said all response to these situations that we're dealing with. people is sad every day she is just people killing each other blood through killing children. there was just no way that people were going to just sit back

and allow children to be shot down by law enforcement. this country doesn't work for us it doesn't function for us. this is can't be happening in america we call from the streets we've got to deal with life this is the reason i have to ride like this is the reason.

welcome back to the kaiser report imax keyser time now to continue with a conversation a safety analyst 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 bomb dropping bombs going to debt it's 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 a term of by many many many factors having to do it's a few few 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 it 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 want to tear 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 want to 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 the money is hard people will think twice about. ending it you know that 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 analogy 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 and 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 a strain 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 the interest rates artificially down so people don't want to say don't ever allotting exactly it's not. that it more ality 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 whoops 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 it just came from self said you

know digging holes and filling them up again there's no concept of economic scar city in the fact of this crime when encouraging aliens to. day from outer space absolutely get our g.d.p. yes absolutely this concept of all those 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 going as you know they'll tell you once they start holding on to because of this started understanding the true opportunity cost of holding on to money spending money and they start becoming more and more conscious about what they spend their money like this like a way of life that would 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 is and this is reserved for us in the eighteenth the nineteenth century was in the twentieth century that this conception of the u.s. as a consumer economy came along and i do think it's no coincidence that it came along with high and with artificial means belated low interest rates and the people in the way money with credit like even last night are a band 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 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. motional appeal to the cab driver who can't afford to buy the house and 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 cab driver will never buy that house because the price he was escalating did 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 who 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 when 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 can on. well from being something that is produced that is earned through producing something useful on the market into effectively government brownie points it's just a loyalty scheme to government the government towards people for being nice citizens would do it was a step in china with their credit score so you mentioned earlier that people are being mr vandalised about decline and sell and you know this book is brilliant and 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 it's it was a 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 a publisher they do their job and that is very well edited i don't see any typos and i think those good job wiley you know an obstacle to 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 what i think you know what i think moving forward the best way for me to be able to work is to try and calm provide my content directly to people 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 to 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 deliver the 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 were. 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 bulletin 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 in mud terry 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 could be the first global currency i mean i think that admirable sentiment but it wouldn't be the first 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 but it's an extremely complicated bitcoin structure for enormous mining and proof 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 air 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 you know 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 for a gram. 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 stand absolutely i think that the move from the one universal global money into 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

enormous the beautiful and powerful thing that allowed the economies of the world to grow it 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 this year and another in a week and 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 low 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 and brilliantly encapsulated in this then volume which is a classic instinct 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 stays here and i think 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. it's. me me me me me me me me me me me that's a very rough surrender so it's rough climates and you have to fight to be able to them if. it was gunshots on top of them and so many friends they would have been going to have men and even not. don't let me go back up for me you know i don't want to see it but a body in this world is ready to participate in the good. old to live good wouldn't . you don't think about this to give this old coat on no you've got three teeth

like a and you know those and other patients. say it's. just so. finally in a tub full nelson if they can get up late now positive but live on thousand people a point about. finding you feel you wouldn't be that easy to find a friend that out in me. plus is that going to see plus the city people. getting. good odds that it might have been

my little bit of a wonderful enough that i little bit that i'd separate that out of money coming no doubt much a little to wait for tomorrow to get it but it. exists learn to apply these lists some borders of the. lists. to see. even to look over. when a loved one is murder it's natural to seek the death penalty for the murder i would prefer and it means to live the death penalty just because i think that's the fair thing the right thing research shows that for every nine executions one convict

despond denizen the idea that we were executing innocent people is terrifying the is just no way that doesn't mean that we're even many of the times families want the death penalty to be abolished the case we have to keep the death penalty here is because that's what murder victims' families what that's going to give them peace that's going to give them justice and we come in and say. not quite enough we've been through this this isn't the way. i. thought it. was the old woman.

sound you use in fact you'll be treated now. a wave of bombings hit sweden just weeks before parliamentary elections prompting intense speculation over two started what would described i think strongly organized attacks. gunmen stormed a military intelligence center in kabul the city still mourning thirty four people killed in wednesday's suicide bombing at a school and a time claimed by islamic state. donald trump say's former cia director john brennan exhibits erratic down behavior and revoked his security clearance questioning a number of other officials with this saying measure. is the economic standoff between on washington escalates turkey.