have are not going to be able to have genuine crypto currency and we centralized as can be command and control nevertheless they've broken the barrier to entry so they've got this concept of a unit of account that is a crypto currency yes but i think it's an important milestone i don't think it's going to be all that successful but it is breaking the crypto ceiling if i may coined that phrase with a sovereign and we have other sovereigns in the wings the marshall islands minor stan are going to go into purely cryptocurrency to govern their territory and once we get the game theory played out on the geo political level that's inherent in the bitcoin protocol the magic of the incentives as iterated in suppose she's white paper are going to put the on the currency nightmare that has plagued humanity for many many centuries part of the global imbalances that we see that are causing the geo political strife that is caused by the currencies that is caused by not having

a trade unit of account it's always been gold and obviously america became very powerful and when they had a huge imbalance whereby they owed a lot of gold to the rest of the world they decided in one nine hundred seventy one forget it we're not going to give you your gold and they defaulted that was one of the probably i would say the biggest the fault in history bigger than any of the currency crises and devaluations we've seen anywhere else boy you know i never really put it on the scale like that but you could be correct they defaulted on real money they owed well at that point when in one thousand seventy one when richard nixon closed the gold window france had received back their three hundred million dollars worth of gold charles de gaulle actually sent a french naval ship to new york harbor right out here to collect the gold then the u.k. britain got worried that well maybe we should ask for ours and they did politely ask do you mind jolly good fellow said. i saw three hundred million dollars with

a go. and it was like slam the window and they were like ok sorry to have that you will. take your paper so they basically we defaulted on the united kingdom they did not get their three hundred million dollars with the gold and said they got three hundred million dollars with the paper and they've been basically our poodles ever since. because if they were going to stand up then they were never going to stand up they were never going to send a naval ship like france did france and the naval ship and it was a crisis situation but now speaking of crisis we have a crisis situation and bad as well it's. you know many of the mainstream media might find it amusing and fun and sharing it on but the fact is according to the i.m.f. they're going to have one million percent inflation that's hyper inflation that's not just inflation that's hyper inflation so some of our gas will say that hyperinflation is actually a political event unlike inflation or deflation which are monetary advances from

it's caused by printing too much money beyond the productivity in the production of the capacity of your economy but hyperinflation is clearly when the population nobody trusts you the leader of the country or the leader of the banking system to control the supply of money and that has clearly happened with the introduction of a dirt road over say chavez when he passed away he had had a lot of inflation and the economy but never hyperinflation you know its currency collapse which is a political event as you point out and you you know talking about hyperinflation in the past it happens with fiat money often and so now venezuela is going to question is will there be a contagion i guess and where will this go what can it be contained and certainly all across the emerging market all the emerging market currencies look like they are poised for continued degradation and collapse i mean we're seeing numbers we haven't seen in a long time in south africa in other countries it just looks like a bloodbath. now remember what happened in zimbabwe when they had hyperinflation

under mugabi and you had this famous trillions and bob way dollar notes and what happened is they couldn't control it anymore and relation use whatever currency they wanted and they would take relation use whatever currency they wanted and they would take euro's dollars gold silver whatever so i think eventually that will happen here nevertheless they're trying a crypto currency which i think is quite radical and it's quite interesting that desperate times whenever you have a desperate situation whether it's cyprus or argentina or china with their capital controls people are that individuals are flooding to. bitcoin as a way to escape these sanctions now maduro is introduced this unit of account which is the petro against which their new currency is pegged but that this is supposed to help people escape some sort of sanctions and circumvent the sanctions but by the way president donald trump in march signed an executive order barring any u.s.

based financial transactions and valving the petro with officials warning that the venezuelan crypto currency was a scam which is quite interesting because if you go to any read it board or twitter twitter everybody's talking about scams and pumps that pump and dump and poop oil well this is an i c o two take the cake in terms of those that are running into trouble this is like mates file calling mates all the all the top big you know them as well as got a lot of oil but there are many refineries and this is peg to oil it on they're trying to leverage their oil position through the machinations of a crypto currency you know my suggestion is you know maybe build a few refineries you know and sell higher end products and put that money back into the economy in this way may take ten or fifteen years but you're not going to be now taken over by some cia operative like we've read about in john perkins book confessions of a financial hit man. you nomic him economic hit men and you know become just

a vassal state of exxon it's called the resource curse they always this always happens when you know the u.s. invaded iraq and then oil prices soared and they stayed up there for a long time and it becomes easy you're just getting free money and it's literally like somebody who has a token and i see oh they get a whole bunch of free money and what do they do they never build their product because exactly they got free money and it becomes like wow why do i work like they import all their food that's what happens in venezuela which is always a danger you never like leave not only do you never take out debts in foreign currency that you can't print but you never leave your economy totally something like a huge percentage of ninety percent of their food is imported which is crazy you shouldn't leave yourself at that because now your population starves but there was an interesting a few interesting quotes in these articles from last week when they were talking about the introduction of the petro into as a unit of account bloomberg said confusion reigns as madero mega devaluation

royal's venezuela because remember they had a ninety six percent devaluation overnight but they did increase minimum wage by three thousand percent the package of measures combines the necessary with the baffling luis vincent de lay own president of the crack a base pollster a data analysis said in a twitter post on friday quote the government has recognized the need to anchor the economy to an external variable outside of its control such as the international price of oil a wise decision but it does so by hiding in a vehicle that suffers from lack of confidence and viability such as the petro this is the classic case of a one side king you know the the man who is in power but is technically blind and but he feels the topography of his power structure and he can sense certain realities but he's blind to the macro picture here and as a result this frick and. things going down but as well is it really because chavez

you know he wanted to be liked so he engaged in this massive wealth redistribution plan but there would have been a lot more benefits to if he built some refineries and took on some of the hard realities of having a capitalist economy that supports entrepreneurial ism and now we're seeing the inevitable result this is what the lesson you would think would be learned in america because you've got these new social democratic socialists in america and you keep saying all well as well as a example of one of those going and they go well they didn't do it right and they didn't do it right you know it's the thing is it's never done right it never works and those northern european countries people keep referring to as being examples of successes and socialism those are not socialist countries those are called mixed economies is capitalism plus socialism mixed together and they exactly that great other of course norway is one they keep on referring to and of course and what has norway done they've saved almost every single penny that came in from all of their

oil wealth they don't spend it they put it in for a rainy day unlike the united kingdom which converted leverage it up into debt so there are different sort of a colony is that is up to the leader and that's what i was saying hyperinflation is when basically the population and then the world loses faith in the leader it is ability to manage it but here we have this notion of a crypto currency being introduced into an economy and i'm saying that the previous hyperinflation that they tried to contain for quite a few years was the way everybody made fun of that and made fun of them but they basically just abandoned their own currency and said use whatever currency here at the same time you have this highly subsidized oil and energy prices there you pay ten cents a gallon he's increased that for some people in the economy you still get it subsidized if you file some paperwork but here you could have just tell the population stop arresting them let them mind bitcoin but them create wealth like the. it's

a way for them to they can outcompete anybody else on earth because they have the cheapest energy prices. that would be a genius move like we're subsidizing energy instead of like a wall street subsidizes american plutocrats by printing money excessive only to them. and say ok we've got the frickin cheapest energy around mind your own crypto currency and start building your own houses talk to your neighbor create go for pumping you know wells and see yourself grow stuff let's get this show on the road but instead he's an ego maniacal zzz you know not job who's going to think that he can raise wages a lot grayer krypto in time so like do you need to go to a shrink because you're out of your mind in the last few seconds here i want to say he quote this is a quote from him they being the americans have dollar rise our prices i am petrol izing salaries and petrol lies and price says he said we are going to convert the pacho into a reference that pegs the entire economy and just replace that with bitcoin that's

how you fight it you you do the big question is ation and set your population free say doods go and mind and and take take you know be wealthy you can fix this five minutes forget the strict and whatever crypto nonsense you're building go on all right well we have to take a break and when we come back they'll be telling vai's. right here don't go away. join me every thursday on the alec simon show and i'll be speaking to guest on the

world of politics small business i'm show business i'll see you then. it was you know provision of my point i wanted to. ask but i. owe. you for your height oh i lost his boss because i just got the. resources you know. any. better but that's honest i don't mean any of them. so i says you know what i was you know. you know just i mean my most important i'm already but it was but. i remember the lord we're going to. give it up as well i must. get off on using the rest but those were the old vilest beatle songs those people are going to respect i'm one of those but i was just this little part of this. my family fussy about my just but that's already yes

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a lot of concern is a little on the white community old enough to want to put out a lift and most. of the flooding. welcome back to the cas report i'm max kaiser time now to go to tone days turn welcome back oh thank you i think the number three for me that's incredible you know three's the charm and they become an official frequent guest at this point southtown days you are master of the charts it's technical analysis of big klein and other markets and you know the chart some time coincide with the vance and only in retrospect is say that hey now that happened at that time and that

price happened at that time and you know what's the relationship so the question is that you know it seemingly bitcoin price peaked when those features were launched and you're a long time wall street guy and you know all about how this all features markets work is there a connection was a relation do you see any underlying connection yes there is a connection but it's a little more subtle than people like to think i don't believe that the future launch themselves is what's causing the price to drop since the day of the future launch the way i see it if people were way too optimistic leading into the launch of the futures that caused the price to go up way further than an otherwise would it's one of those classic buy the rumor sell the news in this case it's more like buy the expect that event but then once the event happened people realize that it wasn't going to have got much of an effect and the volume in those futures is not

very high it's still a pretty in the market and what i always said was these do not have actual bitcoin settlement like gold does like oil does because sentiment looks like that's coming to this new new york stock exchange product called back. what's happening there what's the big news there so that is going to be an interesting product they announced that they're planning to do it i still have not seen a thing from the regulators giving them permission to do that this may not happen for another year i don't know when they're actually going to want it i know the expectation is going to be in the. will see i have a feeling that it's going to take a little bit longer than that november once you have futures are have deliverable of the underlying assets now things become a lot more interesting however a bitcoin can still bitcoin still gets its actual price from the underlying exchanges so it really depends on the dynamic like we know the gold futures and oil

futures on the c.m.e. is the ninety five percent of price discovery of gold in oil but when it comes to the stock market the futures on the s. and p. five hundred are pretty much almost meaningless because the underlying companies that the term and the value of the s. and p. five hundred in the futures is just a way for people to bath and the speculation of what those companies will do i'm very curious in five years from now where is the price discovery of bitcoin is it the future space or is it still d's underlying exchanges and we will see all right so price discovery in this is buyers and sellers coming into the market and depending on who's got the bigger orders the buyers or the sellers you get a uptick or downtick big client has been i'm in from a lot of stuff we seen in the gold market where you have unbacked paper claims or naked short sales have come in and they drive the price of gold lower i was

listening to a pod cast with kate line and chase mayer just recently and this whole backed scenario with the new york stock exchange she billie's it's about the financialization of decline and that we're going to start saying on back paper. bitcoin claims coming into the market and corrupting that price discovery like we've seen in gold and then there's a couple of ways that this could go or could not go any thoughts on it i have not had time to since i pod cast yet but i've talked about it myself as well i actually don't have a big problem i don't believe that there is a conspiracy driving the price of gold down because i am capable of trading those futures i can short gold with my twenty thousand dollar brokerage account i can't buy a thousand contracts but i can buy three or four contracts with that money the thing is in the futures contracts of gold and of course there are more open contracts

than the ability to over the gold but as maturity comes close those contracts cancel each other out like a big buyer could come in and raise the price of gold i just don't see that as a conspiracy and the same thing will probably happen in big quoi but it doesn't mean that is going to drive the price down someone could threaten to deliver that's why i call it it doesn't have to be the delivery of gold or the livery of well the wrath of the delivery of the big size so if someone comes in and buys to reach thousand contracts on bitcoin you don't know if they have the bitcoin to the liver or not d. exchange probably does if the person doesn't have the ability to deliver the bitcoin but they have cash in order to keep the margin on that large position and they will just cancel that position against the guy on the other side doesn't have

the ability to accept all of that bitcoin so i think it's still pretty fair price discovery i always go back to the most manipulated market in the world as diamonds you want to make diamonds a more legitimate price discovery put it on the c.m.e. give it futures markets let the average person speculate as while and then. we'll see real price discovery i think the price is covered on gold is fine people just i couldn't care any more to that point if there's such a huge discrepancy between the naked short sale driven artificial price and the true physical price why wouldn't someone take physical gold delivery of their gold on those markets and force that price discovery and close that gap i mean there's a huge arbitrage and if that exists you know that's like free money so usually if there's that much free money around people would go grab it because no one really wants to take delivery of one hundred tons of gold but if they're making a ton of money lots of money out of them could be worth a few billion yeah and you can collect that billion when you cancel out that

contract it's almost like oil like i can trade oil contracts for my living room in new york just this is only as i can trade gold contracts in short oil like and long or oil i was a day trader and if you chose markets just for my house as an individual and the exchange you know was i can't they one futures contract on the oil is a thousand barrels of oil they know i have no ability to accept delivery of a thousand barrels of oil in my one bedroom apartment in new york city they know that's not going to happen they also know i have no ability to deliver a thousand barrels of oil because i'm living in a manhattan apartment to know my address so they will make sure that if i don't sell my position on my own a week before maturity they will sell it for me and they do it the same way for others that they the are matching people up you know you of just the bane of the lambo buying crowd you know because for many years in the crypt a space the lambo maniacs who are making a lot of money on the trip to space all coins space they claim made

a move from one thousand to twenty thousand almost in one year back in twenty seventeen your technical analysis which you're very rigid about the bang what you see in the charts you don't let that your personal bias get in the way you know you have called this bear market that we've been in. but the lambo people are always complaining. how do you feel about that in a year if bringing a lot of unhappiness to the would be allowable buyer tom yes i actually embrace it it almost tells me that i'm kind of a riot like the more people tell me how bullish we are. the crowd is always wrong you know that mass you've seen enough of the markets and one bitcoin biles to have six thousand and it started making its way back to ten thousand somebody baited me into a big bat saying it would never fall below six and i took that took that big public bath and there was a twitter poll saying what are the chances i was going to win the bat that is going

to go back down below six thousand and seventy percent of the people said i was going to lose the bat and i know the moment i saw that poem like great this means i'm going to win the bat because the majority will always be wrong and the price went down to below six dollars and we hit fifty seven fifty people are still you know over bullish at the moment i'm hoping that the price will only come down to five thousand but it's possible it can go even lower there needs to be some pain i think we overshot to the upside big time in twenty seventeen and we need to overshoot out of the downside of the beast a little bit they know interesting in this market you know you have almost a built in upward bias because every four years or so having so that number of coins that come into the market is have so supply is constantly shrinking and something that safety writes about in the classic now classic bitcoin standard is an amazing book yeah and so you have an upward bias what do you see. you know he talks about it cannibalizing say out money and you know you end up with price

predictions as a reflection of global four x. four exorcised trillion dollars a day if that claim gets one percent of that i remember rick funk lenient in stockholm tell me in two thousand and eleven he said that they claim would get one percent of global four x. which implies a. one hundred thousand dollars for a coin prize as this will be a long term chart look at the long term chart of what your thoughts absolutely i think the next having which my best guess will come in around may of two thousand and twenty i think that's going to do great things for the price a bit quiet but it's still may of two thousand and twenty but how do you trade it because we've had to having people traded into it if you're a trader tell the people what to expect people are going to trade into having the same exact way they traded into the e.t.f. announcement the same exact way they traded into the. futures announcement traders are going to want to up each other at the last having the price of bitcoin doubled

between five and two months prior to having with the days before the having the price had already peaked and it started to come down i'm expecting right the some bird november the summer of two thousand and twenty the november december of twenty nineteen two dots when the having is going to be all the rage and traders that i want to prevent trade and i'm expecting huge things for the price of decor and going into the year two thousand and twenty with the expectation about is seldom or what applies to the have an absolute end you know there's in the markets there's the january effect where people of course there's a january bump because people are tax selling at the end of the year and you can trade that but it moves every year because more people get into it so it happens as a rolling january effect so this having that you speak. had one but in order to maximize your trading profit you need to maybe discount for the fact that a lot of people are going to be playing this game yes and they're replaying it and

i think. they got in early and they got out early and this year they might get in even earlier and get out even earlier that's not so they're all going to want to preview on each other so i can see the price starting to go up in the number of twenty ninth. but already starting to fall in like march with the having come on into may and then there could be and if it sells anough and this is what people have to realize it's hard to predict so far in advance if we start going up too early we can peak in march by the time the having comes in may the price could have already bottomed out and the having itself could then cause the by the like the shirt that i'm wearing on the flip side if the selling of the news comes on the day of the news like what happened with the c.m.e. the you're not going to get that chance to buy the dip on the news it really depends how the price gets to what it is not what the price is going to be but at what time did it peak well as allah's central heating fascinating

alan bennett because i bought my first beer coin in two thousand and thirteen takes a listening to you and i spoke of my very first conference in q one of twenty fourteen and started appearing on you tube shows of other people in twenty fourteen going into twenty fifteen like on the it's got the channels you to clarify follow them learn something for a change you fricken lamba degenerate and that's going to do it for this edition of the kaiser if you are with me max kaiser and stacey everett like to thank our guests on days if you want to reach us on twitter it's kaiser report until next time i'll.

the be. the be. the end. seemed wrong but all the girls just don't know all. the world yet to shape our lives just because the been engaged and because betrayal. once and many find themselves worlds apart we choose to look for common ground.

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i. twenty people are left injured as auntie and probably my going to protesters clashing in germany feeling rest with field by the stopping of a man on sunday. hopes of a fresh lead in the trump russia collusion investigation not down after the attorney of trump's woman lawyer tracks on claims he has evidence of any illicit contact. head of general election sweden isn't govt in gang related crimes taking place in so-called vulnerable areas we visit one such district right now we're driving to the southern part of stop.