well i have are not going to be able to have a genuine crypto currency and we centralize 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 fia 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 on this point 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 for. hello 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 basically we defaulted on the united kingdom they did not get their three hundred million dollars with a 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 hyperinflation so some of our gas will say that hyperinflation is actually a political event unlike inflation or deflation which are monetary events as from

is 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 the 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 the individuals are flooding to. bitcoin as a way to escape the sanctions now maduro has 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 reddit board or twitter twitter everybody is 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 packed 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. you know become just

a vassal state of x. 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 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 petro into it as a unit of account bloomberg said confusion reigns and devaluation royals 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 crack a 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 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 fricken things going down that. as well 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 of one of us 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 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 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 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 with zimbabwe 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 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 excessive only to them. and say ok we've got the fricken 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 save yourself grow stuff let's get this show on the road but instead he's an ego maniacal so you know not job who's going to think that he can raise wages alone bring your crypto in so like dude you need to go to a shrink because you're out of your mind and 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 eyes and price says he said we are going to convert the pacho 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 mind coin and take it take you know be wealthy yeah you can fix this five minutes forget the fridge 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 told days the tone days right here don't go away. chose seemed wrong. but old rules just don't go all. the way to get to shake out just because the ticket and in detroit equals betrayal.

when so many find themselves worlds apart. just to look for common ground. the moon. tonight enough it's rich. it was alive all from somewhere you know. i came back to the community of. people we are based on you know the road lookouts me all about us all bible going towards him. by.

the way. say. she's going. to save money doesn't that give us all that. if you don't. know we're going to this. is the first cause also i am not happy my life. i sing long have to die. welcome back to the cas report i'm max kaiser time now to go to town day's town welcome back thank you i think this is them with three for me that's incredible you

know three is the charm and they become an official frequent guest at this point southtown days you are master of the charts it's a technical analysis of big client in other markets and you know the chart sometime 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 large 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 is 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 adopt 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 few churches do not have actual bitcoin settlement like gold does like oil does because some of that 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 that i still have not. seen anything from the regulators giving them full 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 november will see i was 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 on 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 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 mare 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 that 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 these 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 quake 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 vice the wreath 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 cancel that 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 is 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 of an artificial price and the true physical price why would someone take physical gold the livery 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 you know was i can't pay 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 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 are 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 it bring in a lot of unhappiness to. would be allowable buyer tom yes i actually embrace it and 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 massive 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 two thousand and seventeen and we need to overshoot that 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 there's

a 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 a maison book and so you have an upward bias what do you see. you know he talks about it cannibalizing say 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 priced at this would be a long term chart look at the long term chart of what your thoughts. i think the next having which my best guess will come in around may of twenty 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 train it

because we've had to having people train it into it that you're a traitor tell the people what to expect and 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 the price of bitcoin doubled between five and two months prior to having with the days before the having the price had already keith and it started to come down i'm expecting right at the sombrero 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 preview on 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 to a rolling january effect so this having that you speak. of had one but east say not 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 nineteen but already starting to fall in like march with the having come on into may and then there could be and if it sells. enough 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. of 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 that it peak well as allah's central heating fascinating alan bennett because i bought my first record 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 two thousand and fourteen going into twenty fifteen like on the from there 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 cause the report until next

time. you know my going to want to. ask but i. know i lost his boss because i just got. resources you know. any of those in prison but that's honest i don't mean this to any of the. choices you know but it was you know. you know just i mean what it i'm already but it was just a lot of. i mean it was. just it up as well i must say i mean just to get it off i'm getting letters but those were the old. people are going to

respect i'm one of the. my family fights if you could a car bomb i just got that already yes if whiskey and he thought of getting up there calling you seem to mean to carry out my thought aloud. how come. out of the mouth of the money that they let us in. this was a good time to. try to move. the. legality not why not. why.

people believe the o.p.m. . model of my kids i don't want them up a son john who they are in the middle of town a mother how do you suppose there's a little on the white community will be looking at the. most the mother bloodletting. the.

last rebel terrorist stronghold in syria is surrounded as all parties involved in conflict what could be a final showdown in the seven year long war. i . i also this hour two days of violence on the streets of germany leave twenty people injured tensions boil over during demonstrations over the plot of the country. says the protests have become a witch hunt. and a prison strike in the u.s. centers its second week in what could potentially become the largest in american history. some clarity with inmates.