join me every first week on the alex song i'm sure and i'll be speaking to get us from the world of politics sports business i'm sure i'll see that. the way to the united states is dangerous for most of the illegal immigrants.

crossing most of us but the little simple they want to. and i want the last post on this but many of them look for refuge in the so-called sentry sides of the refuse to share information about undocumented migrants with federal authorities. person as bank. policy to point out. that person and get them in a lot less than the one that. they have or watch as they all choose to stay in the country with donald trump in the white house all. both of you the have to be about the deal. i said fitz travel to many couples won't. deal with trump the put simply dimples bumbles both of you up of a few of the most of the. welcome

back to the kaiser 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 might 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 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 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 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 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 that 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 not if they. are 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 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 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 the man encouraging aliens to. day from outer space absolutely get our g.d.p. yes absolutely this concept of all the people what matters is with the right now

with the right here and so that drives people towards more spending i mean 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 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 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 served us in the eighteenth or nineteenth century was in the twentieth century that this conception of the u.s. as a consumer economy it came along and i don't think it's no coincidence that it came along with high and with artificial means get a 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. 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 to 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 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 like the sound of 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 losing 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 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 are 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 the that is earned through producing something useful on the market

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 seven in 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 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 a very well edited i don't see any typos and i think that's good job while you get 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 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 one interested in it and that's why i'm going to you know instead of working with institutions that might set their agenda 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 and 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 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 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 months area history and economics and this is been sorely lacking in the space for example this idea of well what does big coen what problem does it solve it solves a 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 is an 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 or 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 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 there's talk about the nineteenth century the gold standard in a period innovation and say about 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 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 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 allow global trade to grow and 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 yesterday this year and another you know we 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 a par with a max kaiser and say i would like to thank our guest safety and author.