she to a she saw chorus who sadly we've got a lot to. set for this hour from a team yourself here at our to join us again in half an hour for the latest global news up to. join me every thursday on the alex simon chill and i'll be speaking to us from the world of politics or. i'm sure i'll see you there.

max kaiser this is the kaiser report the show that goes further just say see we go really far in fact in this episode not only are we in new york but in the second half you're going to be in washington d.c. with none other than tone they own base wow almost and for that because we interviewed him when we were on our way up here stopped in washington d.c. talked to him and then we came here to report the news to you and i want to talk about a story that happened last week and it is about venezuela because they are the first to introduce a crypto currency as a unit of account so this is something actually when we were in washington d.c. and we saw safe dean talk about his book the bitcoin standard he foresees big queen as a unit of trade account around the world and this is i think obviously madeira and venezuela have are not going to be able to have

a genuine crypto currency and we centralized this could 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 purel 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 code on the currency nightmare that has plagued humanity for many many. 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 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 they u.k. britain got worried that well maybe we should ask for ours and they did politely ask to my jolly good fellow sending us off three hundred million dollars with the

go. and it was like slam the window and they were like ok sorry to have ball that you would. take your paper so they were basically we defaulted on the united kingdom they did not get their three hundred million dollars worth of gold and so they got three hundred million dollars with a 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 a crisis situation but now speaking of crisis we have a crisis situation and bad as well a it's. you know a 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. our gas will say that hyperinflation is actually a political event unlike inflation or deflation which our 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 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 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 of bob way dollar notes and what happened is they couldn't control it anymore and he just let the population 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 the 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 in. 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 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. economic hit man 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 us 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 well 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 at 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 pacho into it as a unit if i count bloomberg said confusion reigns and 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 then sent a layoff president of the crocker base post to 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 eyed 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 fricken things going down venezuela is 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 for the going and they go well they didn't do it right 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 as capitalism plus socialism mixed together and they. 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 that 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 icon to me and i'm saying that the previous hyperinflation that they tried to contain for quite a few years was a way everybody made fun of that and made fun of them but they basically just abandon 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 that'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 excess of all 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 zx you know nut job who's going to think that he can raise wages a lot grayer krypto and so like dude 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 eyes and. salaries and petrol lies and price says he said we are going to convert the petro into a reference that pegs the entire economy movement 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 dude go and mine bit and take it to you know be wealthy you can fix this five minutes forget the script and whatever crypto nonsense you're building go. all right well we have to take a break and when we come back they'll be telling vai's. right here they'll go away . for a man or sitting in a car when the fifth gets shot in the head. for have different versions of what. one of them is on the death row there's no way he could have done it there's no possible way because the owners did not shoot around a corner. welcome

back to the cas report i'm max kaiser time now to go to town days town welcome back thank you i think this is them with three for me it's incredible you know three is the charm and they become an official frequent guest at this point so down days you are master of the charts it's a technical analysis of big client in other markets and you know the chart some time coincide with a vance 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 d.c. to 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 anything 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 one should i know the expectation is going to be november we'll see i have a feeling that it's going to take a little bit longer than that november once you have futures are have deliver a ball of the underlying asset 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 right south 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 an up tick or a downtick big question has been i mean from a lot of stuff we've 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 podcast 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 seeing unbacked 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 dos 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 biquad 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 a d. exchange probably does and 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 they will just cancelled out position against the guy on the other side doesn't have the ability to accept all 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 discovery 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 from my living room in new york just this is only as i can trade gold contracts in short oil like in long or oil i was a day trader in

a futures market just from my house as an individual and the exchange 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 they 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 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 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 max 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 the bat took the 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 knew at 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 at least 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 half so supply is constantly shrinking and something that safety writes about in the classic now classic bitcoin standard is an amazing book and so you have an upward bias what do you see. you know he talks about it cannibalizing see out money and you know end up with price predictions as a reflection of global four x. four exercised trillion dollars a day if that claim gets one percent of that i remember rick funk niña up in

stockholm tell me in two thousand and eleven he said that because it would get one percent of global four x. which implies a one. hundred thousand dollars for a coin prize as this would 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 that 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 while at the last having the price of decline 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 the summer of twenty nineteen 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 what happens is such a rolling january effect so this having that you speak we've had one but you say in the order to maximize year trading profits 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 one thousand. but already starting to fall in like march with the having come on into may and then there could be and if it sells i'm not 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 flipside 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 a dollar's scintillating fascinating elling abene because i bought my first pair 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 mid two thousand and 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. lou we. would have enough it would say it's rich. it was alive alls from some of us.

i came back to the community. people we obvious found in on the road lookouts me oh look out is over i will go towards him. but i have i was at. the right. say. she's going to. receive money doesn't that give us all. what it should be but it's good to. know we're going to this. love it doesn't cut cost us up i'm not touching me in my life. i seem on have to die.

what politicians do sometimes people. put themselves on the line to get accepted or rejected. so when you want to be president or injury. or somehow want to be preached. to go on to be for us it's like the before three in the morning can't be good that i'm interested always in the waters in the. first city. beach.

the last rebel one terrorist stronghold in syria is surrounded as all parties involved in conflict prepare for what could be a final showdown and the seven year long war. two days of violence on the streets of germany leave twenty people injured as tensions all over during pro and anti demonstrations over the plight of moderates in the country chancellor merkel says the protests have become a witch hunt. and the prison strike in the united states enters its second week in what could potentially become the largest in american history activists are protesting in solidarity with inmates over poor conditions.