whatever of the you know their monetary experimentation and what it entails well the first headline let's look at a chart this chart partly explains the rally if that's so you can see the global money supply and s. and p. five hundred are going up in lockstep so either you can say wow look at this markets it's a booming economy as donald trump would say and this is a sign that i'm doing amazing as the president or it could be the central banks pumping one trillion dollars into the markets all of this is a real crisis this is a central bank crisis there's never been any tightening there's not been any quote financial pollution or a financial tsunami just like those tsunamis that came in during the boxing day tsunami. back there in asia and wiped out those beaches remember the people are like oh my gosh i'm going to twenty sixth two thousand and six was it right this is a tsunami of liquidity or central bank money and it's flooding over the

real economy is being destroyed while that income gap is collapsing life expectancy in the u.s. and the u.k. is shrinking people are living less time on planet earth due primarily due this describes us of money printing that's just drawing the incentive system in the global economy so that you have mal investments and you have bad actors being rewarded and true entrepreneurs and true wealth creators on the grassroots level on the entrepreneurial level are being destroyed this is an enormous enormous crisis the propaganda on the financial news will tell you that you out there watching the news seeking some cider ed c.e.o.'s of these banks is that you're just not working hard enough and that you're just not clever enough and that they're particularly clever. or you could just look at the fact that it's not so clever it

doesn't need great ingenue ity or innovation to just receive free cash and just pour it into the stock market they you know the fed has proven over and over that they will raise the price higher for you so if you have access to that then it's doesn't take a great deal of cleverness and what's being done with that with the tsunami of cash that's pouring in is the companies are engaged in buying back their own stock if they just had all this cash in the balance sheet it wouldn't be so great because they're not investing in expanding their businesses or corporations in any way so they would just have a low yielding cash on the balance sheet and that wouldn't be particularly. attractive as a as an investment as as a balance sheet edition but when you're buying back your own stock and you're there for manipulating earnings because therefore earnings are being reported they gets a base of less stock outstanding on your capitalization table so you're

manipulating your earnings in a way that manipulates option prices that in a way that rewards the top executives that's outright fraud a used to be illegal up until a few years ago for obvious reasons it's an obvious fraud tool and accounting scam and so therefore it's not being discouraged particularly in congress where trading on inside information and trading on the stock market is allowed in congress. this does crisis is getting absolutely out of control now i saw a number and i don't have it at hand right now but in the united states at least we have you know there's interest being paid on deposits overnight that you know the big banks put in the federal reserve in europe it's negative if you so those banks they're the big banks that we can bank bank parable they defy. that the e.c.b. overnight and they're actually paying to have it deposit it so over the past year

it's like an annual fee of like nine billion euros that banks in europe are paying to their central bank verses in the united states the banks are earning about fifty billion on their deposits at the central bank and on top of that the e.c.b. their balance sheet versus the u.s. fed is way bigger as a percentage of their economy and now the e.c.b. has come out with something else countries inside the euro zone must seek e.c.b. approval to manage their gold reserves says mario draggy so the european central bank needs to approve any operation in the foreign reserves of eurozone countries including gold and large foreign currency holdings the e.c.b. as mario draggy said last thursday the e.c.b. shall approve both the operations and for reserve assets remaining with it and c.b.s. which is the national central banks and member states transactions with their foreign exchange work and balances above a certain threshold draggy told to italian members of the european parliament

because remember recently that they talian said that they wanted their their their gold back from their central bank and held in their treasury instead for their people so this is the other side of the of this crisis the the the flood of cash is one side the other side is the continued suppression of gold prices because gold if it were allowed to reflect its market price based on demand for gold and demand for gold as hasn't been higher in fifty or sixty years and the supply of course is shrinking then that would kind of put the kybosh on the sole idea that worthless money has value and that government bonds yielding negative interest rates value so gold must be kept quiet isn't it cannot be allowed to reflect the market price because this would be a catastrophic. in the short term a set of kind of delaying the catastrophe to the medium term and naturally

with no place to go we're starting we're starting to see money flow in typically again after this remarkable drawdown of eighty percent or so we're starting to see some support in the big market because governments really can't shut down bitcoin the way they can shut down gold and as we've been saying on this show in twenty minutes and we predict that a sovereign state will begin to add big point to their strategic reserve as the dollar is ation de globalization same takes a new leap and remember all of that monetary issues there are something that are tied to the real world like deflation and inflation but it's hyper inflation which they want to avoid and hyperinflation is i don't think it's a money it's not a money printing event it's a psychological if the if if the users of your currency lose faith in that currency

as we see in venezuela where there's not much faith in mid-air oh to control the situation that's what's causing the hyperinflation it's not the socialism that people say it is it's the loss of faith because you know the fact is chavez had the same policies if not more generous during his time and you didn't see the same hyperinflation you see hyperinflation when they lose faith in the person in charge which is midair oh the same here is they just want to control the faith in the military to control the situation so that's part of the reason why they want. to be kind of kept in this place they don't you know they want to try to control our psychological feelings about it but speaking of feelings here's another headline this is from buzz feed and it's you know it's based on think tank and a lot of these think tanks so it's a revolving door between the politicians and stuff but it's an interesting one in terms of the money printing going on opinion the crushing cost of rent should be twenty. twenty is big issue since one nine hundred sixty renter's incomes have

increased by only five percent while rants have risen sixty one percent whoever wants to be president should say how they'll solve this crisis because a vast majority of the public according to the research on this from this think tank is that a full eighty five percent of the population says they want some sort of could look at canada if you look at the united kingdom those who have the asset prices that have magically tripled in price over the past ten years and they think it's like them endowed with some natural like wealth creation and unique goodness that they deserve this wealth they don't like it when their house prices go down they don't like it when the central bank stops printing money or help to buy sort of schemes and all the sort of interventions to prop up our spices they don't like that so there's a you know there's a conflict here but it all the solutions this think tank offers is actually more money from the government they should give more money to the low income people to

help them buy houses. keep house prices up that's what how they want to address affordability not stop printing money in stop causing artificial increase in asset prices here's a thought experiment if you have house prices becoming increasingly less affordable and the u.s. government in its monetary policy tells you that year that they are fighting diesel ation. reconcile in other words if there is. why are house prices less affordable ok the answer is. the monetary policies and the deflation that the government says they are fighting does not include the wages that's their calculation of the in basket of inflation the basket of prices does not include wages and wages have been outsourced to

china. so here you have a situation where people in america have no money and yet and house prices are skyrocketing relative to their wages but the government says that's not inflation health care costs are galloping ahead ten or fifteen percent a year inflation. the government says that's not inflation. in other words there's been a concerted and decided excise ation of the worker in the united states who's been classified as expendable and dead meat in fact if you look at that f o m c own tax where they the federal open market committee thinks what the central bank economist think when they they do not care or concern themselves with asset price inflation house prices stock prices that does not

concern them what concerns them is if wages do increase and i think that's part of the reason why they raised rates in december not only for the psychological effect that they are in control and that they could do this if they want but the fact that wages started to increase immediately they keep on doing any time they raise rates as partly it's mostly caused by anytime wages start to increase they like no no and that's why you have a situation where only wages have only gone up five percent since the one nine hundred sixty s. and everything else house prices everything is gone up at least fifty one percent but i want to quickly in the last minute here say that un says ireland applies preferential tax loss vulture funds and it cannot continue a un special rapporteur on housing it sent a letter to the irish government noting that they have facilitated housing financing through preferential tax laws and weak tenant protections among other measures the report is highly critical of ireland and other countries such as the us and spain for allowing vulture funds to buy

a properties resulting in skyrocketing rents report states that landlords have become faceless corporations wreaking havoc with tenants so this is also part of the issue that these think tank of the revolving door of lobbyists and politicians in washington did not ever notice that black rock blackstone is one of the biggest owners of the biggest private landlord in the world including ireland and they were able to access the free pass. also the zero percent tax laws they get taxed nothing on their properties in ireland and that this was engineered and the solution that offered by buzz feed was more money to lend to poor people to rent they never mentioned the private equity guys buying up all the properties all right at a time thanks so much for got to stay tuned for the second half don't go away.

young elephants have come to us off the. best basically brutal budging incidents because sadly the baby elephants often do see their mother as need be killed but also be cut off and boy chipped. in and. i do believe and laugh and smile and i see it in the salons they all say should express and changes in the. name. i've been saying the numbers mean something they've met of us with over one trillion dollars in debt more than ten white collar crime families each day. eighty five percent of global wealth you longs to be ultra rich eight point six percent of

the world markets post your percentage some with four hundred to five hundred three first record per second and that one 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 number you need to remember one one business showed you know board the mid one and only boom box. welcome back to the kaiser report i'm ask oz or time out of turn to steve beauregard block d l o o q steve welcome back thank you very much great to have you

back on steve beauregard long time calling a good friend of mine here in california keep it real and silicon beach is that still call silicon beach actually to get the block to a beach now ok same page we'll get into that a moment now you're working with master rosin and other good friend of ours on a company called block b l o q tell us about block what does company do what specifically do you do there what you. found at the company and of course they probably number three programmer in bitcoin so back in two thousand and ten he got interested the project work directly with the toshi as a volunteer just putting code into the into the good and so forth and contributed to the open source so he's been a long time you know develop is not good but. the idea behind block is that we are going to bring it you know right now where when is just doing a d.i.y.

do it yourself putting their own infrastructure in place so we're going to have an infrastructure as a service business called block cloud so to give people the ability to now just use ours you know either to run their own nodes so they can just spin those nodes up with us we have a whole process now by which we can snapshot them so one of the problems that they have is if you run a node you have to catch up. from the beginning and that takes sometimes weeks so we're going to make that down to a matter of an hour or so or sometimes even less just bring a snapshot up make it so. your competitors in the space yes there's a couple of other people that are doing this block cipher has their a.p.i. so we'll also have a service we're going to do a little bit different or it will be a metered service pays just for what you use as opposed to you know. a big chunk will make it more predictable for them and then on the other side on the road side you have damon is one of the companies that also offers that service right service club a service area and then we'll go across the most popular books in our launch we're

launching with bitcoin between cash and if there him and then as time goes by we'll be adding other things other books and so were you in the process you got customers you got users were where is it where is it yes right now we're just in private beta so we have a couple handful of oprah's that are working with the platform getting all the little kinks out of you know signing up for the count only on boarding things making it a smooth experience but the idea is to have a very professional a sole a high availability clusters so that you know it's very tolerant d.d. o. s. resistant to all right so now we're in the midst of quite a deep dark and long crypto winter yes now you've been your experience has been you know you've been around awhile you've been a few through the few of these crypto winters and you know during the downtime sheeple build stuff that's been that mean oh the observation is that holding true at this time very very true we have a couple of other projects that we're doing one called titan which is

a mining software so we've been quietly building through all this time one of the questions we've been asked over the years is what does block do we see you guys you're sponsoring the big shows but what do you do we've been quietly building a lot of things and this year we're bringing these products to market right and you know i kind of take your take on something you know and when we were first get into a bit coy and and looking at the white paper going to companies like it take a member but it was like the first company to be launched that everyone i ran that's right go coin and you know that there was an emphasis on payments right and it was going to be you know pay pal for big calling called about it calling it a store of value. if you read the right paper and you just substitute cat. for gold it makes a lot more sense makes more sense he was your take on this it's a pretty lousy transactional currency i mean that's really the bottom line of the ten minute block times isn't really conducive to payments i mean these newer networks like ios and things that are really fast black times like times will be

much better at transactional payment mechanism as a store of value does it in fact compete with gold oh it absolutely does and i think it will be the gold of crypto so if you look at everything that's happened i mean one of things you look at in these new developing markets is one of the bad guys do what are they how are they using and because they're always the ones that are the fast innovators and then the rest of the regulated world comes on board but if you look at that they're using a store of value transfer of large amounts of money and then i think you'll see financial institutions start to do that more and more as time goes by and you bring up an interesting point there. are new technologies tends to be jevon by criminals and torn. the c.r. was born before i became a consumer oh you are the first use of the telegraph back in the day was the horse races the results from new york they would be a telegraph out to california so they could beat the bet and you know the fix would be in time the crime they write was a plot of the staying i believe was

a. call that but that that's a criminal activity so you're saying that instead of we need to embrace the fact that these criminals. are rushing in to the adoption curve because behind that comes the general user that's right yeah i think it does i mean if you look at you know silk road in the early days was really prove the whole use case of bitcoin that it could be used in a very effective manner now let's talk about payments and whatnot your thoughts on second layer bitcoin technologies like lightning is lighting a competitor for you guys are not really because lightning is sort of like a bar tab you know you open your bar tab you have a couple drinks and you. as opposed to pay every drink every drink so it makes sense in one regard but. an operation like aucoin every transaction we have to see independently and we don't know who the customer is going to be so

they're not going to put a payment out there to pay that's one of our merchants i know who put a payment out there and have an account open and wait till they buy five plane tickets and take off that balance so it doesn't really solve a whole lot for payment processor but i can see you know somebody you're paying on a regular basis that it might make sense in the old calling space you know is birth staring that twenty fourteen period when that core developers seem to be just very slow in getting things done and all these all kinds and roger very kind of split off from the pack and. is now if we get back to a period where it's going to start to assume a more aggressive development schedule in kind of obviate the need for a lot of these old planes or what have you see all the planes again kind of in a bigger picture some of them are going to go the way evolve dodos or what and i think ninety percent of them go away go back to zero didn't cost much to start in

the first place and a lot of these developers lose interest in the projects because they're just not getting traction i think there's only so many use cases but i think we'll see ten a dozen coins that will all have their own purpose and will survive the winter they allow these mainstream economists like paul krugman oriel roubini they really tell them that lee again is because warren buffett and the head of the bank of international settlements and the establishment they don't like it they hate it is it because they feel challenged by it or do they have a legitimate argument or why such a thing i think it one is they first of all it's not something that they can profit from because they don't participate in it right now it's not part of the product line of what they're. and so therefore it's kind of like you know them the. deck c.e.o. back in the day say there's never going to be a need for anyone have a personal computer at their home right they said that because he didn't have one

but i.b.m. did so you know that's their disorder not in the competition that's sort of the way i see it right like paul krugman he said that the internet will never catch on you know and they seem to be establishment lackeys that don't really think they're kind of dinosaurs. right now. on the regulatory front your thoughts on what we're seeing from regulators in the u.s. specifically states like wyoming they're introducing very pro big legislation and does this impact your business in terms of considering possibly to wyoming you know we got kate along she's in wyoming they want to become the go to state for the big industry and steal the thunder away from delaware and i. think what's going on there from your perspective i am a big fan of what we've been doing up in wyoming i do like the light touch regulators have had thus far put out a really nice event there are a lot of regulatory discussions took place there i think the there will continue to be light touch i'd love to see some of this legislation go through especially de

minimus charges on tax you know basically tax gains on buy your cup of coffee with a coin anything below six hundred dollars it should be no reason to have a tax on that that's really using it like a foreign currency how much more geopolitically any country of the country seems to be vying for status of trip to switzerland in malta as bacon island a man as big. as a man's maybe right for us and then i'll a man is a train wreck you tell me that story and so i want on a bigger geo political front any countries you see now really understanding what's going on taking the lead yeah i think the ones you already mentioned or the mean one singapore is probably one that still belongs in that conversation there's still a lot of positive things happening there. and. i see a lot of switzerland a lot of discussions about malta and then some of the caribbean nations to bermuda i hear there's some activity going on there in a new bank going in to bermuda and that's

a very interesting jurisdiction because it's a self sovereign country well here we are in malibu next to hollywood and of course you know our boss also in the dot com business in hollywood and at that time i remember when hollywood hated the idea of the internet and people having an email address was day class and then they had the blair witch project hit and suddenly everyone's like oh my oh wow. really for nothing we get it where is hollywood in the cycle of big. did they get it yet is are things changing because it's a legacy is sure they're going to be slow where are we there you know you've got that hollywood steven i rely on you know from my malibu perspective right where i think that's going to change is when we get into what they call the interesting thing about these tokens you can program them so the creator of content. can make money on it as opposed to hey i made something in it just get money once that will be programmed into the you have

a piece of art and once that art sells the artist gets paid once but with these non fungible that was you can make it so they get downstream every time there's another transaction i think hollywood will go the same way once they start using these these tokens tokenized some of their content and they'll have all kinds of new revenue streams a bill to them non fungible rights to burn regard to actually being on the kaiser report thank you. report. my guest steve beauregard block you joining us. for a single purpose. of. training very young. eight months of intensive school.

raps. and. what we've got to do is identify the threats that we have it's crazy. let it be an arms race. very dramatic development only. to sit down and talk. i think is an outstanding person because he took on the most powerful agency in county for you to state if you look at. mark was the day that when he was. critically

the first time i noticed something wasn't. pretty much when he first started the corruption in palm beach county. and the wink. and. then some states have had a collective thing to go and went to his website began featuring comments about girls his family the show it's like they're going to squash you like a bug you know we should stop clinicians there are less of the stuff i believe what i'm doing also it's ok you know it's your funeral building f.b.i. raided p.b.s. and critics in the house. i snuck out of the united states. into russia political science. men they know bad wolf. join me

every first week on the alex simon chill and i'll be speaking to us from the world of politics or business i'm show business i'll see you then. coming blow down to seven tooth birthday candles nato pledges to expand the alliances presence in regions on russia's doorstep washington calls on russia to withdraw its military advisers from venezuela. as well maybe john twitter lifts his ban on a french government advertising campaign after the block to its part of its fight against fake news. on that iranian rights activist slams western visitors to the country who don't know her job saying that they undermine efforts to abolish the

law requiring women to wear the head covering. the issue i think it's i think it's ridiculous i think women and to comment.