woodley 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 a 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 do you mind jolly good fellow sending us off three hundred million dollars with a go that you 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 the gold and so 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 in bed 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 guests 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 the dirt over say chavez when he passed away he had at. a lot of inflation and the

economy but never hyperinflation 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 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 these sanctions now maduro is introduce 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. well this is an i c.e.o. to take the cake in terms of. i see those that are running into trouble this is

like mates file calling mates all the all the top big you know them as well it's 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 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 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 you know 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 in 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 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 said de lay own president of the crack a base poster of data analysis said in a twitter post on friday quote the government has recognized the need to anchor the economy to a. next sternal 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 where 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 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 economy 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 ability to manage it but here we have this notion of a crypt. no 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 excessive only to them. and say ok we've got the frickin cheapest energy around mind your own crypto currency and start building their 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 so you know not job who's going to think that he can raise wages a lot of dough in 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 eyes and prices 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 mind coin and take it take you know be wealthy yeah you can fix this five minutes forget the frickin 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. they. might go away.

join me every thursday on the alex salmond show and i'll be speaking to guest in the world of politics school business i'm show business i'll see you then. you know provision on my back when i wanted to. ask but i. owe. you for your height oh i lost his boss because you know that then you just got to go which was you know. any of those it doesn't but that's honest i don't mean. so not as you know but i was you know. you know just i mean my point is i'm already

but it was. i mean the law. has been up as well i must say i mean i really feel that you can get off on getting worse but those were the old. people are going to respond on one of these but i was just this well is part of this i'm with. my family fussy about my just but that's already yes it will be and he thought of getting up there calling quincy are you seeing him in ticket. 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's the charm and they become an official frequent guest at this point

southtown days you are master of the charts technical analysis of the klein and other markets and you know the chart some time coincide with the vance and only in retrospect is say that he now that happened at that time in 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 is people were way too optimistic leading into the launch of the futures dot cause 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 few churches do not have actual bitcoin settlements white gold does like oil 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 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 want it i know the expectation is going to be. 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 these underlying exchanges and we will see. 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 an up tick or downtick big claim 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 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 that i have not had time to send to our podcast yet but i feel.