actually dictating any kind of connection to the constitution 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 from 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 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 idea is an 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 lead 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 were rescued and look this is like paul krugman is right i don't 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 if fake prices and fake money you have fake news and with that's another consequence. of

having junk money junk food 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 and that definitely a no no that they feel 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 if i lend 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 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 reporting on it yet america's 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 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. is going to be in the second part too. no go it.

seems wrong. the old just don't call any of the old yet to shake out this day. and. it was a trail. once and many find themselves worlds apart. to look for common ground. 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 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 he 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 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 profits 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 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 wedding effect it's. just 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 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 economic scar city in the fact that this man encouraging aliens to. vay 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 a huge joint 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 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 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 manipulated low interest rates and the people in the way money with credit like even last night at our event the subject 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 go to 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. an 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 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 later 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 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 can i. well from being something that is produced the 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 slap 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 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 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 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. 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 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 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 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 recently said that bitcoin could be the first global currency i think is an 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 need to do all this in the 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 here 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. florist 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 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 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 you know we've been 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 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 report with me max kaiser stays here and i thank our guest safety and author of the big quite standard if you want to reach us on twitter it's kaiser report until next time by all.

if. i. we have no idea what safety is doing on a vacation but she will be back on air in september. you know world's big partisan movie 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 back 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. welcome to worlds apart sending humans into space has long required the national and even international effort to provide all the necessary financing and technology but space x. is recent successes in hauling freight into orbit claim to challenge these paradigms can 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 dr hoffman it's so great to talk to you thank you very much for your time. pleasure to be here now the world is still massmart eyes by space-x. 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 want it all as an engineer do you think that was really such a major technological breakthrough a major milestone in the history of space exploration. no i mean it is evolutionary but what space x. as a whole is trying to accomplish i do think is revolutionary. the idea of strapping together three first stages to make a more powerful rocket is not new the the u.s. has the delta heavy rocket which has been flying for many years now. so that

technology is not revolutionary however what space x. has accomplished is to make it a lot more affordable. the rough cost of the delta heavy. it's hard to know exactly but it's in the order of two hundred fifty million dollars the falcon nine the falcon heavy can carry. twice the payload of the delta heavy for about one hundred million dollars and so it really is changing the paradigm of how much it costs to get into space and and that's the revolutionary aspect i think of what space x. is doing but dr hoffman i wonder if it's perhaps too early to say that because i think the same arguments were made about the shuttle program that it's a reusable that it's going to be so much cheaper than let's say the soviet

comparison but dan i got from your own lecture is that shuttles turned out to be much more expansive because all the ground operations and how they were service perhaps not very efficiently i understand that this is a house basics market it's technology at this point of time but can we really rely on those figures to be proven in time well. you're absolutely correct that people are waiting to see can space x. maintain the very aggressive launch scheduled that they have and reuse a lot of these first stage rockets which they've been recovering because that's what the price reduction depends on in in large part so yeah it's still early days but what i can say though is what happened with the shuttle it was a very complex vehicle

a muse very capable it was the most versatile spacecraft probably that we'll ever see but it took a tremendous amount of care and maintenance there were thousands of people involved in every shuttle launch and that's where the money goes for people salaries and what space x. has tried to do is to simplify everything to make it possible to turn around a launch to reduce the first stages without thousands and thousands of people so far they've been successful but as you say it's early days and we have to see can they maintain the pace and do it. wall they keep. you know hopefully a perfect roy ability record now elin mask is known to be very good at marketing this is how he sells his very expensive car speech i would argue are not very practical a driving but a very good for boosting your self-esteem i wonder if he's also trying to sell not

so much the product by the imagined experience associated with it because when you think about all of the footage and video that god from doc launch a it's more about projecting it certain ideas certain dream rather than marketing the the actual capacity that he wants to bring to the market no i wouldn't agree with that i mean anybody in the space business was concerned about is the rocket going to work. you know if it. was really important to be able to show that they could launch recover the boosters and get the payload into orbit. the fact that instead of just using a bunch of lead weights as because you know you have to hear it wasn't carrying any real payload for money i mean no nobody was launching

a satellite on this but you still have to carry a payload with the equivalent mass of a large satellite and so the fact that he decided to launch his red tesla with a you know a a mannequin astronaut in it that that was obviously marketing and very clever and and the general public got a real thrill out of it and you know the idea of cia one of the things that i hope comes out of of a lot of what's happening in the private space market these days because we have to remember space x. is not the only one it's an extraordinary time that we're living in we we have a generation of billionaires who are space nuts they have a vision if you listen to bigelow to two musk to be zos their vision is that someday many many people human beings are going to be living off the surface of the earth and i think that's really what's what's ultimately motivating him

there there's easier ways to make money than than developing a rocket company but he but he has a vision they're not the only people who have vision and i think. just because they're billionaires i don't see why that a vision has to be given so much attention compared to for example your own vision because you you have been into space five times you completed four spacewalks you you know how to. fix the hubble telescope and yet what people would remember after this launch is an empty tassel a card with a dummy auster not rather than for example you or somebody else who's doing every you work there in space don't you think that people perhaps need to appreciate not how glamorous this space is but talib eris it is you're misinterpreting the purpose of the falcon heavy launch was not to put a tesla into orbit the purpose was to demonstrate that this new

configuration which is the first time that space x. has ever tried this and they want to be able to use this to launch heavy satellites when you're when you have a new rocket you have to demonstrate that it works. that was the critical part of the launch and it was totally successful you know he decided to make it a little sexier by putting his red tesla as the payload but that was not the purpose of the launch now when somebody wants to put a really heavy satellite into orbit they can have certain confidence that the falcon heavy configuration has demonstrated that it it can work successfully and hopefully that means that he'll be able to launch heavy payloads both for private companies and for the government because this is important for nasa and this is a lot of heavy payloads and if you can launch it for

a third of the price of what you would have to pay on the delta heavy you can get a lot more science done now dr hoffman just a few moments ago you mentioned this new. visioned illinois mosque and other space not as you called them have and mr mosque in particular is talking about space faring civilization and and multiply metairie species i suspect this is actually very similar to what year harry didn't imagine when you were growing up as a boy in new york drawing all those rockets and that it was more than sixty years later and yet we ask humanity i still not there do you think mr musk will see his vision very bold vision i have to say realized in his lifetime well when he talks about millions of people living on the surface of mars i think probably not that's that's a very expansive vision whether or not that will occur in the lifetime

of anybody who's alive now i i honestly don't know. but the falcon heavy now has the capability of taking payloads to mars rather significant payloads and. you know one of the exciting things that happened is that nasa as a space agency. originally kind of was reluctant to get involved with the private sector but. that was i think one of the successes of the obama administration's space policy was that they basically directed nasa to work with the private sector for lower earth orbit launches and for taking crew up to the international space station and so this idea of a public private partnership. i really look at as being the.