second warning about you know i came up with an idea actually for all those polar bears is like fifty two polar bears invading some town i came up with an idea of having like a seal sort of pool or park between where the ice used to be before we destroyed it all through global warming and us you know put a bunch of seals in there and let the polar bears go you know seals are nice and chewing like a seal park for the polar bears i love it is better than eating ass but i have a tweet here and this goes with the notion of a global financial crisis and the new normal what is causing this underlying crisis not only in the financial markets in the banking sector in the monetary sector but also in the environmental sector and this is jeffrey good luck fed says it is currently discussing using q.e. as a regular tool not just during emergencies or when the funds rate is at the zero bound so quantitative easing will become the new normal as we've discussed this has

caused that cantillon effect of those closest to the fed i.e. the member banks get the zero percent free money sometimes negative money and they get to live it large at the expense of everybody else further downstream from this free money the federal reserve banks around the world are engaged in a perpetual initial coin offering in those initial coin offerings or come. out turn seems like the dollar you know goes back to the old saying you can't taper a ponzi scheme so the globe's darting thirty five years ago or so actually you know in the seventy's it was the idea was we will never have we'll never have the tax revenues sufficient to pay our debt so we need to supplement we need to create aggregate demand aggregate demand by printing fake money but the fake money has an interest rate attached to it and now oh here we are in twenty nineteen in the realisation that you know what. we will never stop printing fake money because

we'll never be able to pay for this fake money so we're just going to get used to it that's why gold is inching higher that's why bitcoin is now back in a bull market because assets like gold and bitcoin will become the safe haven play with the global central banks gone entirely rogue it also puts into context this notion that the wall streeters who are out there on the news using the platform on the news given to them to condemn c. and the likes of you who want to print five trillion or ten trillion for a green new deal or the m.m.t. years you know this is the equivalent of that but what these the wall streeters these top zero point zero zero zero two five percent of the four hundred families that own more than one hundred fifty million americans while they only want it for themselves they want exclusive rights to this free money printing machine and they don't want anybody else to have you know see in a green new deal they want to compete in federal reserve bank they want to green

federal reserve bank and the foreigners families like the mafia in the u.s. they want the current central bank because they like that they get all that free dosh you know it's an interesting play none of them works and ultimately the market will seize upon hard money this is why russia china are buying so much gold because they realize that the dollar is on his last legs and about to implode so i want to look at a few headlines they didn't to this sort of system whereby free money could be printed exclusively just for four hundred families and that's why they get richer and we get poorer but here's one headline from adam to say that divergence and growth between service and goods producing sector employment in the u.s. since the crisis is truly striking and mind the scales so this is from deutsche bank the blue line is wealth creating jobs so you're in the manufacturing sector turning some raw goods into added value products. this is from by the way two

thousand the red are the service sector jobs i paper shufflers bureaucrats working at a retail sector working in a hospital orderly or that sort of thing but notice of course the real plunge in wealth creation jobs did happen from oh about december eleventh two thousand and one that's when china entered the world trade organization so you know that's that's a result of that you can only sustain you know it becomes more and more difficult this is they go hand in hand the reason why we have zero percent rate the reason we have a near negative percent rates the reason why the fed is now saying that q.e. will be eternal is because we no longer have wealth producing jobs so we have to print more money to keep everybody in these sort of fake jobs that david graber talks about in order to sustain some harmony and peace in the economy that everybody does a riot about food but the fact is these service sector jobs do not create wealth known you know it's a ponzi scheme no no it's

a ponzi scheme i don't know why you're at seattle today that's the theme though from each of the polar bears would be on fortunate although i wonder if they have a t.v. network so what do you have to say about the chart i think it's part and parcel and proof of the ongoing ponzi scheme in other words are never going to be the amount of capital expense required to create real jobs or manufacturing jobs is dull longer available because all that money has to go into feeding the bottom layer of ponzi scheme right they don't they don't have cap ex anymore they have stock buybacks they have a financial ization the commodification they have armies and armies of lawyers they are service jobs and they sue each other and litigate each other and they don't want to create jobs that are part of a middle class that we used to have as middle class is going extinct as extinct as the. polar bears and instead of throwing them seals or throwing them out money the

family seals to keep the rabble rousers from you know and i can't believe that the good teams being mentioned so often these days it's down to being quoted on fox news and c and d c that everyone's afraid to get into further and they know that the elites are afraid that getting we called out a couple years ago the last surviving working be a teen in france went on auction three years ago for one for two thousand euros i mean that's a still you know i was tempted to buy it i would have made a fine centerpiece well of course i'm kaiser report we've been saying for ten years now it'll be ten years in september that gold and big queen are more pleasant options and then a good scene i think that's the equivalent if you look at that first headline that q.e. will be eternal and you look at the fact that your future is just a retail sector job. you know that you should be stacking gold and you should be stacking big queen and this is where other nations are doing we've covered the fact

that you know it's russia's china's kazakhstan is turkey it's hungry and when hungry bought gold when they started stockpiling gold this past year what they said is that the gold has no counterparty risk the counterparty risk at the moment to any of this debt you're accumulating to consume is the wall street that's there that's the counterparty there they're the risk that they're going to just run off with your loot and somewhere up in the north pole with the polar bears that well the global financial crisis is resuming you know it's it's starting up again it's huge it's the part two of the other one cause seventeen trillion dollars is going to cost one hundred seven hundred seventy trillion dollars it's all printed so prices in dollar terms will skyrocket price of gold to go skyrocketing bitcoin and make a new all time i people will be crying but you know there's nothing left but the tears but it goes so of course you know i think that once these. the elites run off

with all this quantitative easing being printed for those four hundred families as has been unveiled in the past week that the four hundred families own more than one hundred fifty million americans i saw this tweet from a buzz feed dude to david mack and he said i went to eastern state penitentiary in philly today and this graphic stopped me in my tracks this is the number of prisons today people in prisons incarcerated in america this is at a museum to prisons in america and this is in the one nine hundred seventy s. before we went off the gold standard and this is today we are able because of quantitative easing because of free money printing to incarcerate very decadent way a huge percentage of the population i tweeted a response to that only possible with an all female system begun in late one nine hundred seventy one if we were still on a gold standard the real cost of incarcerating millions of people would be unsustainable incarcerated become part of a ponzi scheme redistributing wealth up around the verge down the project came blowing up because of the gold now being purchased by the smart countries russia

china the smart countries versus the dumb countries like america and the united kingdom is hitting a tipping point and we have now an emergence of a gold backed bitcoin backed currency that will destroy the fear empire and it's a new century well it won't destroy the. empires destroyed itself what we're saying is that you the individual out there can avoid being the seal for owing to the polar bear in the escape of this in the collapse of the system as that system collapsed as our ice sheet melts the equivalent of the central bank system as that ice sheet melts on them and they have to come looking for people that come eating you and i want to look at this other final headline in terms of gold and central banks and governments salvini proposes seizing control of italy's gold reserves some central bank italy's populist de facto leader matosi seems set a shaky. europe's financial sector upliftment to the core one day after the italian

deputy prime minister and leader of the league party called for the elimination of italy central bank and the country's financial regulator concept saying the two institutions should be quote reduced to zero more than changing one or two people reduced to zero or in other words eliminated and that quote fraudsters who inflicted losses on the telly and savers should end up in prison for a long time salvini prompted fresh shocked gasps in brussels and frankfurt when he raised the possibility of seizing italy's massive gold reserves away from the country's central bank he said gold is the property of the people and shouldn't be the property of the central bank and thus it should be shifted to the government not the central banks because member central banks now have independence for their member banks as a genius. absolutely correct going for example jim grant from grants interest rate observer you know you read about it on barron's magazine on wall street for decades he's been talking about this very thing he said the best thing any central banker

can do is resign right i mean they're all crooks they're all charlatans are perpetuating and destructive ponzi scheme and premature human extinction to make a quick buck at the price of the future italy apparently this man understands it and i'll be axon of course there are so-called populous rising up around the world and this is this is you know what wall street is worried about and i think is his idea of arresting the fraudsters arresting the four hundred families that looted from the other hundred fifty million we could reduce the prison population to people who have created this unstable economic environment which has led to unrest and crime around the world everyone knows in prison should be out and everyone is not currently in prison should be in i mean we've got to take a break when we come back much more.

simply a game. that didn't have been mild for most. of that day with. the council. on up at a sauna meeting they. didn't get me or the now with jamie has a hunk of their own. now at the five they. got money but that never. seem to let him make the forty m. it would be in the middle have been closer gave up because of me as.

united states does that all the time it always tries to influence elections when people who are running who are friendly to the united states are running against people who are unfriendly we certainly did that all through central america and south america for many many years we know that these efforts are made repeatedly there not criminal every intelligence agency in the world she's a smart of its function to make sure that elections turn out favorably to the country. you force me. to do so easy to. get what. you see is. and for the most good moment you know. believe.

you. are and. it would seem that. there was. little. welcome back to the report as timeout to introduce a very special guest brock pair so i've i've actually known brock for twenty errors or of him when he was trading virtual currencies back in the ninety's truly a trendsetter got in the crypto currency on the back of that one of the earliest in the world as managed to build quite

a nest egg farm self covered extensively in various publications you could read up on that broad paris welcome back to the kaiser report good to be back thank you for having me usually in the industry when you mention the words mt gox people tend to have a connection this is this is like screaming at the dirtiest word you could possibly imagine the redefined the industry defined in effect for so many years the collapse of the mt gox exchange you've got a plan called gox rising so bring it back brought this tell us more again mt gox is a dirty word you know more palace is a dirty word. when people bring up these names people have a very strong this role reaction and for good reason you know this is our lehman brothers this is our bear stearns this is already run this is our bernie made off right and so we had a very strong visceral reaction because the events that happened around that

organization and late two thousand and thirteen or early two thousand and fourteen set our industry exact for a year or two it was the primary cause of the bear market in two thousand and fourteen and two thousand and fifteen and you might even argue it's somewhat responsible for the bear market that we're in today so obviously people have a very negative reaction but it didn't know it wasn't always that way mike cox in two thousand and ten two thousand and eleven two thousand and twelve was by far the most important for a company in the world that was largely responsible for the rise of decline so you have the rises. mt gox and then the sort of colossal fall of mt gox but that story is not over. it's been in bankruptcy for nearly five years february twenty fourth is the five year anniversary and the story is still not over one hundred three thousand account holders twenty four thousand people have filed bankruptcy claims at the bankruptcy trustee and you have twenty four thousand victims that were early

batteries on bit coin that have early conviction took that risk and they have not been the beneficiary of the risks that they daken not due to any fault of their own but by trusting in an exchange that was poorly managed and so how do we as an industry want this story to end like game of thrones the last season is out i know i'm looking forward to it can't wait but we have the power as an industry to write the end of this story how do we want it to end do we want it to end like lehman brothers like the old financial system or would we like this story to end differently we like this story to end in a way that demonstrates the power of the open source community and blocked change and the resilience of bitcoin like a phoenix rising from the ashes i think we have the power of do that i've got a crazy stretch goal which is to get creditors one hundred percent of their money back as well as to relaunch the exchange that mt gox is not a to remit causes you to cringe in shame but becomes

a source of pride on behalf of the entire industry because of the power of this space and hopefully the outcome that we can achieve here so it's a target so i assume mt gox has got a hidden jewel on the balance if the man has certainly here today reckon mess and and this apparently can be rehabilitated and turn then to a rivaling some other exchanges out the world i suppose now there's a lot of pushback on this mark a policy that as tweeted that. you don't own the shares of mt gox and you have no say in the outcome of the company that's are referred to the a percentage of the company it at all ties into a letter of intent and there are some questions about the letter of intent so i can add some clarity to that well first of all mark our palace still believes he runs mt gox you know he believes he's still the man behind the curtain pulling all the strings and calling all the shots. considering his track record i don't think the

creditors or anyone else for that matter. benefits from our purpose being in charge of the mt gox story for one market i have a long background i almost bought the business in late two thousand and twelve and again in two thousand and thirteen and when mt gox collapsed that first night i get more call i stood a mark i'm still interested in buying the business he goes are you not watching the news i said that's why i'm calling and he goes you're still interested i said i am because i think the industry needs this to be resolved in the best way possible obviously the terms are going to change i said let me going back later tonight with you know a proposal we agreed to he agreed to sell the business for a dollar i changed it to one bitcoin even though it was obviously worth far less than that typically in these types of deals you'd have to pay someone ten plus million dollars to take over a disaster like this but i felt it was at the time very important that this was

handled in a way that would you know mitigate some of the damage that it was going to cause on the industry it was very clear to me that this was in a satisfactory year or two and be our horrible horrible event for between as an ecosystem not just the exchange this was something that was going to impact all of us negatively which it clearly has our number distinctly actually telling me fears ago you were pulling mt gox and you laid it out you laid out the plan so how is the witness for the in terms of being there when you're going through this. and i understand that there is would be a great effort to rehabilitate this company for the industry speaking of rehabilitation. and the plan for what's called civil rehabilitation of mt gox a forensic expert from wiz sac who is involved with the mt gox case in terms of tracing the bitcoin says that most of your plan is already part of the civil rehab deleterious implant in japan some recording regarding the plan for equity entering

a last exchange years or just wait for the process to finish your response that's kim kim is mark kirk alice's boss marker callouses kim c.t.o. they're partners so that's basically just mark speaking fruit his c.e.o. my job. yeah i mean mark has a billion mark and his partner kim would like to control bank mt gox and they believe that they're in charge they believe they're the ones that are directing the bankruptcy trustee i'm highly skeptical that the bankruptcy trustee is relying on more dollars and kim to decide which should happen here but. yeah. the most important thing that i think is worth noting is it doesn't actually matter who owns mt gox as so long as the creditors receive all of the cash and all of the bitcoins of the bankruptcy trustee said that the shareholder was going to be

entitled to all of the surplus of funds that was billions of dollars at one point today it's about seven hundred million dollars i just want to make sure that creditors receive all of that and more current policy of zero the only reason marker dollars should care about who owns it is because he cares who potentially is the beneficiary of that potential surplus in a civil rehabilitation assuming the plan as everybody for the most part is wanting today at least me and all of the creditors i've spoken to creditors get everything in that scenario. when he gets nothing which is what i'm fighting for i want equity to receive nothing the only reason i care at all is because i want to make sure mark ellis gets zero i don't believe that he should get any of that seven hundred million dollars i think he's caused enough harm here he's the villain that caused victims to resist the situation they're in today i mean you have to take a look at this for two years the bitcoins out of mt gox are being stolen and more

callous didn't bother wants to check this the cold storage or to check on the wallets to ensure things were being stolen it's not like he just woke up one day and someone looted the vaults overnight they were literally stealing out of the mt gox vaults for over two years and marker paul kelis didn't even want to bother to check i mean it's it's criminal negligence criminal mismanagement which is why he's been to jail and probably going back again so this is the game of thrones aspect to it you have a visceral hatred i think it's not just on our air of market palace as they are as most of the n.s.a. if not the entire industry has this guy is a true avella so to break it down to make sure that mark death nothing you want to make sure that the creditors are made whole the some degree and not not the equity get the equity would be completely out of the picture i want to zero which is why i don't care who owns the equity the only reason we're having this conversation is because mark wants to make it very clear that he does own it even though he signed

a binding agreement which he's confirmed is a binding agreement you should look closely at it was very much a binding agreement designed to being a by design to be a binding agreement meaning no matter what happened after the signing of that agreement it was binding because we have media we had to take over we immediately had to start spending exorbitant amounts of money on japanese lawyers us lawyers we settled both class action lawsuits on behalf of the one hundred thousand one hundred three thousand account holders we filed the original civil rehabilitation plan in early she got. in fourteen and we were spending lots of money and we could not start spending that money immediately as we had to do without having a thoroughly binding agreement which was supposed to have a follow up agreement but then mark sent us a rescission letter begging me to sign it saying please i'm confirming that i signed a binding agreement but please rescind the deal i said are you kidding we're already spending a fortune you've already agreed that we're taking over and cleaning up this mess

for you because you're not competent enough to do so but his lawyers that were getting paid two to three million dollars a year wanted to make sure that gravy train kept on paying them and i had no intention of retaining his existing attorneys and so they pushed mark into trying to rescind the agreement he then had no intention whatsoever to sign if subsequent more detailed document as was agree but the reason why that first agreement was so binding was so that we had no risk of mark not following through on the deal that he cut i don't care it's in dispute mark owns it i own it i don't care i don't want any of it i want creditors to receive anything the only reason i can imagine more care is because he'd want something and he's got the benefit of saying no i want what's best for everyone even though he's not in control to bain which would be the entity owns it through is in bankruptcy mark has no say in what happens it's a bain the bankruptcy trustee of to bain is in full control what is a bankruptcy trustees job to get everything they possibly can for the entity they

represent meaning the bankruptcy trustee of to bain's job is to try and make sure the equity gets paid i don't want marketing one cent nor should any other creditor this is going to be a hot season of crypto twenty nine terror i you know this is going to be an awesome showdown looking forward to it since here's first second i've got about fifty seconds left i know you're thinking about every mention a going to raise five billion dollars for a new focus venture capital fund it obviously or implied or a cow big in puerto rico about the term. around there can and got forty seconds can you tell us more about that fund because that's obviously a big growth opportunity there brock we began in puerto rico for about a year and a half and some great things have happened to puerto rican companies end of last year raised over a million dollars each that is the first time you've had poor rican startups raising real money i hope we have many more in the first half of this year and even more in the second half of this year but for the first time ever more reconned that

want to build an entrepreneurial startup now have the tools to do so and the idea of setting up this is just to make more early stage capital available to the you know call it the emergence of this early start up culture you got started to excel or readers co-working facilities incubators you now have a jewel investor showing up lots of mentors lots of people this is not a crypto movement this is a startup movement and we think that a startup society can happen in puerto rico and this is one of the many things we're doing to support that initiative perfect brought there thanks for being on the kaiser report thank you max that's going to do it for this edition of the kaiser report with me max kaiser as they see her would like to thank our guest brock pierce if you want to catch us on twitter at kaiser report and that i stop by up.

to seven and another one in ties to my town swain don't assume. that it could fall through the. plaza this way down to the nothing in the disappeared to see who made them look like they don't and i don't think it's to let them have that. this is the only thing that we do is music because everybody fights his way. it's true are you can talk the fifty pound is worthless woody allen are you gonna call me a bit of oxycodone. q what i think is this is the found that is a compliment. thank you.

job of journalists photojournalists any type of videographers writing journalists is their job it's much more dangerous every year because so many people now see what we do is threats you know threats to whatever their narrative is whatever the propaganda is and you know the like anything in our culture in iraq and afghanistan wars had to be sold to the american people. in twenty four to you know bloody revolution to correct the demonstrations going to be relatively peaceful political protests to be creasing the violent revolution is always spontaneous or is it still loyal to a pretty meaningless book to do with the new blues out of the new school and you go to the former ukrainian president recalls the events of twenty forty and. those who

took. invested over five billion dollars to assist ukraine in these and other goals that will ensure a secure and prosperous and democratic. constitution take out the fourteenth weekend of yet a vast protest as hundreds gather in paris thanking its president mcclung where cross was happening in the french company throughout the day. u.s. vice president mike pence calls on european allies to send brazil things down past now to syria.