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 begets a lot of junk thinking fake news it is the result of sake money you know price precedes news hard money you have hard prices and hard news when 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 that people by definition are stupid there i choose are dropping like a rock i don't know about their i.q. because that's one thing but there are 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 and that definitely i know of no 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 all of behaving 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 may not even have noticed that by now the change is a mistake a bull 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 now isn't of company doing reporting on it yet americans being taken private with all that sick 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 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 a feudal ism and big name economists and even bigger name bigger economists like safety. is going to be in the second half. they'll go away. we have no idea what safety is doing on vacation but she will be back on air in

september. that's a very rough terrain of sorts of climate and you have to fight to be able to plan. it was. on top of them and ready for what happened and in the end i may. need a lot of. backup. you know i don't want. to see everybody in this world and it's good to participate in the good. old. you don't think about this this old girl i know you've got a great life and you know another patient.

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 marcel's in the future and this of course is not stressed in the us 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 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 a term of by many many many factors having to do with say 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 are 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 can 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 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 money is hard people will think twice about. spending 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 interest rates artificially down so people don't want to

say they don't pay for a living exactly it's no. 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 just keynes of self said you know digging holes and filling them up again there's no concept of economic scar city in the fact of this man encouraging aliens to. they from outer space absolutely get our g.d.p. yes absolutely this concept of all those people what matters is with the right now

with 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 a huge joint and you have your money and you can start thinking long term and you see this with bitcoin or you know if you if you talk to big corners you know they'll tell you once they start holding on to between 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 where there's 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 and this is what the u.s. in the eighteenth the nineteenth century was in the twentieth century that this conception of the u.s. as a consumer economy it came along and i think it's no coincidence that it came along with high and with artificial manipulated low interest rates and the 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 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 nine 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 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 to people to buy things you're just going to raise the price of earning the cab driver will never buy that house because the price he was 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 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. well from being something that is produced 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 a step in china with their credit score so you mentioned earlier that people are being missed evangelize about big client 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 and 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 the publisher they do the job 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 moves 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 to research the 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. 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 and mud terry history and economics and this is been sorely lacking in the space for example this idea of well what does big cohen what problem does it solve it solves the problem called money and money is required is 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 would be the second the gold was the first global currency the gold standard was effectively zero

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 and 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.