we're going to not fox news but see and and here's the headline which is remarkable president donald trump's we mean streak donald trump may have never had a better time being president only a reelection party on the night of november third two thousand and twenty so they're already projecting that he's going to win twenty twenty could possibly offer the same vindication for america's most unconventional commander in chief as this thirty six hours in which to foundational strands of his political career are combining in a sudden burst of history and then this is the sentence they actually say about donald trump c.n.n. which he by the way has called fake news and horror you know he's done he said a lot of horrible things about them both at live events and on his tweets but it says trump became an undeniably consequential president when the senate voted

on saturday to confirm brett kavanaugh supreme court consecrating the conservative majority that has long been the impossible dream of the g.o.p. well you know i've been. from the beginning of the constitution a strong design so that any competent individual can step in the white house and run the country that's the beauty of our system of government here in the united states as c.n.n. is an understanding best donald trump is a consequence president who is doing things that needed to be done and is getting rid of the deep state hillary clinton is opening her trap and saying that the end of civility must come that we can no longer be civil in fighting against a president of states now last i checked got a copy of my constitution this is the constitution of the. i. think that they

supports additional. legal. hillary for jail for prison this is very much alive and well as to the midterms. ok i wish we always just forget about her and it would all go away but we're going to go back to this c.n.n. piece wimber title of the c.n.n. piece is president trump's winning streak on friday trump had celebrated the best jobs for forty nine years as the unemployment rate dipped to three point seven percent offering more proof of a vibrant economy that the president says has been unshackled by his tax reduction program and skiving cuts to business regulations so again they point out that he came in when he was on the campaign trail in twenty sixteen when he offered to do was to rip up these trade deals. trade deals he he did what he said he was going to

do he said he was going to pack the supreme court with conservative. justices and that he's done that he's put two one on there so far and he said that he was going to slash taxes and that would create jobs and it has so far happened whether or not it's you know correlation and causation you know that's yet to be determined direct correlation. remember during the campaign trail the need to revisit all these trade deals bring manufacturing back to united states and bring back jobs to the united states and barack obama at the time were. these are deals reshowing deals we can't redo the deals i'm an effectual into what should be a european mill. in europe you know that was proved wrong everything. he would do he is doing so the only problem as i've identified

mel for a while is that this will cause inflation and you are seeing that pop into the economy now so interest rates are moving higher this would mean that bonds are going to move down and would challenge markets in a huge way so inflation is happening gas prices are moving up as long as wages are moving up faster than prices trump is ok if in fact that doesn't occur and you've got prices spiraling out of control then he's in trouble again like i've got to read their own words because these words are pretty spectacular when we're only a few weeks away from the midterms and just two short years away from the twenty twenty reelection campaign for charm and who will run again so we don't know hillary has suggested that she might run are like her surrogates suggest but here in their own words this is again c.n.n.

he calls them fake news so this could be fake news they could be trying to play him off saying yes we are fake news look at this a president of consequence says the section there is more evidence than the soon to be reshaped court and the roaring economy to make a case that trump is building a substantial presidency that in many ways looks like a historic pivot point despite its extremely controversial nature so in terms of this historical pivot point they addressed a few items including breaking that deal with iran his bullying approach to the trade deals pulling out of the trade deals and they said for this week for instance the white house initiated a potentially momentous shift in the u.s. approach to china recognizing the giants as a global competitor and a threat to american security prosperity. and interests reversing decades of policy

designed to manage the ascent as a meijer power and eventual partner well you know i'm a little backstage entry because on the election twenty six i sat down with my friend alec baldwin who's been on the show many times for thirty years and i explain to him exactly that the economy needed to be pivoted that there would be a need to rate the deep state you needed to really renaissance and give workers a chance to participate in the global economy by addressing all these trade deals and instead you got sucked into the rosie o'donnell you know kind of wing of the democrats to favor communism socialism you know just look at the soviet union it didn't work rosie o'donnell looked at venezuela it doesn't work you need to have a functioning competitive economy having a guy like donald trump reset the table is to exactly what was needed and i would

like to claim victory over my friend alec baldwin at this time as being vindicated in everything i said would happen has happened you know he's forced to do podcasts for public radio in the backwaters of the hippa somewhere so there you go there you have it. i mean the fact is c.n.n. is saying this and they did lead the charge in mocking him and then being afraid of him they say the saying goes something like first they ignore you then they laugh at you then they fear you and we've definitely seen the whole russia gate stuff is definitely that fearing you that you know the so-called deep state whatever that thing is like whatever all these people were that were leaking information they were trying to destroy and they were trying to undermine them all of the news all of the hysteria about them is sheer fear it would look like genuine fear and then of course they join you or you know they stop you when essentially because they join you. trampas going to start looking at some of these monopolies in the us

media monopolies in the tech sector and google and amazon and c.n.n. in this act of self-preservation is now kowtow into the present because. the chopping block with all this. media consolidation monopolization i said from the beginning this could be a new teddy roosevelt in american politics to break up the trusts and bring back competition competition is good jobs that's what makes america great is pretty competition not kowtow into corporate overlords and old dop was like jeff bezos again and i think you talk about some of the manhattan elite i think certainly trumps delivery and his manner of speaking is very in one nine hundred seventy s. new york and very queens the guys from queens and i think that's a lot to do with why so many of the elite why that rachel maddow alec baldwin's why anderson cooper is why they have a visceral hatred for him because if you're

a guy from manhattan if you're one of the manhattan elite you know imagine a bridge and tunnel guy suddenly ruling over you i think it really great telling them and a way that is just there. but here again c.n.n. this is what they conclude because remember the rachel maddow sorts of the world they had a lot of joy they were like he hawing about child being laughed at on the stage at the u.n. and here is how c.n.n. now now that they've joined they've stopped fearing and stop mocking him stop fearing him now they say less than two weeks ago foreign diplomats at the united nations laughed at trump when he boasted about the historic sweep of his presidency and there was no doubt that he was as usual exaggerating but it is also no longer possible to credibly argue despite the distracting blizzard of controversy. busta

decorum and staff chaos constantly lashing washington that there is not something significant taking place that is changing the political and economic character of the nation itself so he is a change agent for him or obama was supposed to be the change agent and what he actually did was. basically prevent the change from changing the status quo a mama could be the worst president of the past one hundred years he's not going to get to mt rushmore donald trump. obama khana five the worst tendencies of wall street institutionalized the kleptocracy turn a blind eye to the excesses of the really the the rats on on on finance in america who are pilfering with impunity and so this is draining the swamp means unfortunately i must say that it does mean that interest rates are going to start going higher and this is for the first time in thirty two years the bond market

bull rally we've had for thirty two years or longer looks like it's coming to an end and that is a fundamental shift a huge change in the economy for the world and for the united states going forward so that will be the big story over the next twenty four months i call it right now so the bond market is like the cooler for winning streak yet bond market as bill clinton said when they tried to reform health care that he wants to die and come back as the bond market because that's the most powerful force in the universe anyway much more coming our way so stay right there.

when else so small seems wrong. but old roles just don't hold. any old belief yet to shape out this day comes to educate and in games from an equal betrayal. when so many find themselves worlds apart we choose to look for common ground. on the news in the world. around the world. total or. a little money we did not know. oh your ego. post gets to move for your.

own. good. i am asking as are welcome back to the kaiser report time editor of trace mayer trace welcome welcome back to be here i call you the howard. is just like your very corporate looking in business looking in you but you're very peroration and you're very ferocious in here approach to because you take the view of a really disciplined hedge fund guy of wall street guy got a look at the context of the numbers that just came out of terra capital down seventy two percent for the year and i know that you were laughing at that. because a lot of these folks of the past few years trista correct me if i'm wrong they got

sucked into the siren song of the old coins in the hard for icsa in the big caches of the world and they suffered as a result of the you have maintained a very strict discipline about big coin and it's really working well can you expand on it a little bit yeah i mean the scoreboard doesn't lie right so you know that this goes back years i mean i've been in this space for a long time and i've had a different approach to it than the andresen horwitz is the pan taro's like very sober where i've been you know i coined the term the hot or of last resort i came up with like why do you hire big point the seven network effect speculation merchants consumers miners developers financialization world those are settling currency like those of us that are serious players and big when we have a plan for where big points going and how we're going to get there now i have read your work going back to when you were writing your thesis on banking and gold and

you were well versed in this hard money concept so in pickling came around in the twenty five cent range you were a ready apostle of potosi you were ready to jump yeah i mean that's when i first started publicly talking about. you know after a mere talk you brought up having wiki leaks a big point it's like well if we're going to have the scrutiny that comes from more eyeballs on this saying well we might as well put in that philosophical foundation i don't want to have people confused about what they're buying or why they're buying it you know it's big cash is a real big coin i mean any type a set or a few journey thing like this like i don't want it why because i want to hot or as a last resort i want people who are willing to hold this thing to zero right that have that philosophical foundation because it's the hardware that really gives something its value and i think we greatly underestimate the risk of this look at how much of the investment funds are passive you know people just investing in

indexes are investing passively so when the liquidity dries up we're going to see we're going to see massive wealth loss and what are we seeing with interest rates and the bond market and all this stuff like who's going to be the hardware of last resort for tesla shares or for apple shares or for whatever the assets are and why would they be those horrors of last resort i mean talk a little bit about something warren buffett said recently which i think applies here he said comparing him with bill gates he said that people overestimate the difficulty of what bill gates and they underestimate the difficulty of what i do warren buffett because he is of course the hadal or. best known hodler his holding period being forever yeah he has said which is similar to mine right and so you've applied this and so just once again to review the seven network effects number one is the hobbling number one if you're holding because it's not being inactive you're participating something extremely poor in the space correct and then the other six

are again i mean it's all built on the hardware you know because that's the speculation to man and then you've got transactional demand but let's look at the scoreboard you've got bill gates and you've got and you've got warren buffett. from when i started publicly talking about bitcoin tell today if you take into account. forks in seven years are a wise higher than warren buffett's return in his fifty years by by a factor of i think to some i mean like warren buffett he's not a very good investor compared to myself based on the scoreboard and the numbers you know and so then you look at gates well you know to really understand and get what's going on with pick when you kind of have to do both you have to have the discipline of someone like a buffett and i read every single one of his letter to shareholders you know i respect him and his and his investment activity but then you've also got to have the creative destruction and the entrepreneurial illness of of a bill gates to really kind of play this thing back that is going to introduce some

new services in this talk a little bit about back then we'll talk about what you would cave along we're discussing but talk a little bit about this about this as you say this is part of the seven network effect i free i don't know what number of this is this would be number six financialization weaving in to number one which would be speculation right now but then when they're bringing in starbucks and microsoft it looks like they're going after network effect two and three which are merchants and consumers so it's three and this is how the network effect exponentially reinforce each other so i mean this is an incredibly exciting announcement ok so what exactly are they today yes so who are doing with as these are the owners of the new york stock exchange it's like i mean these are the eight hundred pound gorilla when it comes to markets and they're going to be introducing next day big point swaps so you know i hope what they intend to do is take price discovery away from the bits and axes and the bit maxes and move it to back to well they've also partnered with and also do

because derivatives this is later on down the road and then they have a warehouse custody solution that they're building into this. that they've also got to deal with starbucks and microsoft so they're going after to cool whole. brands. starbucks is a very easy use case you know we've got tons of people why why not be able to pay with your app it cuts down on processing costs like all this stuff but why microsoft what's the play there and how does that really go mainstream and i was thinking about it and i was like oh imagine if microsoft was able to take some of the revenues from fortnight and be running it through because. i mean fortnight makes them like one hundred million dollars a month or something like this so you know if we get if we get transactional demand flowing through this we get it happening on the derivatives market so people can buy and sell calls and puts they're able to hedge the exchange rate risk we go watch multinationals. involved in this we've got custody solutions for hundreds of

millions of dollars of big coin perhaps billions of dollars so for now you're going to get a huge customer base ten and billion virtual space yet they're doing it with virtual items virtual sell in markets and stuff like that right and why not have an instant like using lightning network you know so yeah i know you have props i got my props it's like oh it's going to move lightning so so if you set up lightning you can go buy stickers from block stream and so this is why proof of lightning you know i got lightning working but all i got was a sticker. no two x. ray no forks you know and that's the thing like if you're going to be selling derivatives when you better be fully collateralized or very well back to because of you know in a hot car last resort with forks or stuff i mean we could really disrupt your your client right about that quickly on the no two x. going back to the stable so it's a good adoption was there a conspiracy amongst certain group in the industry to fill up to them pool and slow

down transactions. just as a side note your view on that yeah i mean i don't know that conspiracy would be the right term but it's definitely within the miners incentive to go up the blocks and test the price elasticity of demand and maximize the. transaction maximize or transaction fees i mean like why wouldn't they do that as rational actors so i mean is it a conspiracy or is it just people acting in a way that the economic incentives. guide people to act ok mitchell blaming lightning obviously is is second layer it's a scaling one of the scaling solutions of big in that's how it would seem to me that now that's really well underway so i could say it was adopted we're well into second stage a lot of these all coins that were treated in the in the period of slow development when things were not coming forward looks like they're going to have their lunch eaten oh yeah and look at poor pen terror or these other people who are highly invested in the all coins they've just been a bullet or

a tit both in dollars and big quien i mean look at big cash it's gone from like point one two to zero point zero seven in terms of its ratio to pick one i mean this is been a billion dollar plus mistake for bit mean. that i did yeah so yeah i mean you have a track record just sticking to the truth to toshiba asia even after four and i was the end of everybody in the space everybody on wall street everybody and you know you are you are one of the you don't publish any numbers why should i sadly get a handle on this but just anecdotally we piece together on this show many times well you know you've stayed true to your philosophy in your discipline the the rate of return there is going to be a lot and with these new like with a larger x. and back to swap execution facility and derivatives squaring organization the hot dollars can now actually start increasing at an exponential rate what i mean by that you know and down markets are sideways markets as

a hot where you can actually maintain your big position but then sell covered calls you can swipe for more premium and then turn around and sell cast secured puts with the premium and so that starts bringing afford a big point so if someone wants to establish it because. position there just going to have to pay very richly for it and what i mean by that having a strike like three weeks out that's up forty percent and so you say you have to pay the option the option premium and then you've got to pay that thirty percent in order to potentially get some small amount of position at a hot wires so to start accumulating even more big using their big point right so wall street's paying not to scale up especially because they have been seeing this option market and the thing about the market is that you can use it as many do just purely speculate but as what we're describing is essentially it's not to use an elegant term but there's like a rent seeking quality about it in terms of the you're selling premiums into the

market and collecting that income in the with luxury tax and correct me if i'm wrong but i think you have to put it one hundred percent a down right there's no margin yeah there hundred percent collateralized so therefore we collateralized to coin swaps and options and then also for we fully collateralized like cash secured put let me jump quickly we got about two minutes because he backed launched in the podcast it came along it's got people talking about well doesn't this open up the possibility of wall street really hypothecated many it over and over in a manipulative the prices we've seen in the gold market etc and you've got instant take on this. yeah i mean i don't think back to be a problem with this or even eris exchange you know because though before we call at our allies but see if d.c. is going to have to keep a real handle on this you know because the big point strictly limited amount i mean

it's the hardest money the world's ever seen no matter where the price goes it doesn't increase supply and there's always enough to call in for people just some function of price so if you're short if you're naked sure big cohen i mean that's a good way to bankrupt yourself right it has actually been a starter on not. not found in any other city any other tradable security at this time you know remember burned over there overstock went to battle with the new york stock exchange the regulators over the show rule which demands that you need to show at the end of the day your inventory of positions maybe on stocks that you've shorted and that because that was not being enforced people were selling more stock then were even printed or available for overstock. at the procter and gamble i mean this is a real problem people don't actually know what they own and so i write people are taking on a lot more risk than they necessarily think they are right and i mean this is a huge problem you've got of in fact. i'm going to pick it up for right that point

i'm guessing by now stick around for the same as can do for this edition of the kaiser. we're going to have some on twitter as kaiser report you can download the app the r t app and watch our show on your phone as every taxi driver last vegas does so much time. on your phone pal dot com at that. time talking point enough. to know more i. am. in some kind and there is a trade in young girls souls into an underground sex in the street sometimes but the people they trust the most. and.

i've been saying the numbers. matter the us is over twenty trillion dollars in debt more than ten white collar crimes have to teach this. eighty five percent of global wealth he longs to the ultra rich the point six percent market saw a thirty percent rise last year some with four hundred to five hundred three per second per second and fifth corn rose to twenty thousand dollars. china's building two point one billion dollars a i industrial park but don't let the numbers overwhelm. the only numbers you need to remember is one the one business show you can't afford to miss the one and only boom but.

i don't have faith in this government official a president i don't have faith in the system i see i've got i'm just a broken system that sets aside for people like me. as well as their. defense the poor here for different reasons the loss of job loss of home. most people in philadelphia ballots two paychecks away from home. cranking gave americans a lot of job opportunities i needed to come up here to make some money i could make twenty five thousand dollars as a teacher or i could make fifty thousand dollars

a year girl in trucks so i chose to drive a truck people rush to a small town in north dakota was an unemployment rate of zero percent like the gold rush is very very similar to a gold rush but this beautiful story ended with pollution and devastation. a lot of people have left here i don't know. the american dream. that's not what it used to be. so. i. was.

taken off the plane to. take you know. passengers on a flight from london to help. the n.b.c. . general . news. i do feel like a. different. from probably was. maybe. going to be.