more and more people the very first bitcoin conference was actually in new york city in august of two thousand and eleven the first international the first year a p n one was in november twenty fifth two thousand and eleven in prague hosted by amir takai and of course you spoke i attended. when we first went to the first big conference in the world it was a group of about forty fifty people and i'd say hard for them incredibly intelligent computer scientists that didn't know how to share their ideas and very passionate activists that believe that a financial system could exist outside of the traditional financial system was an important thing to bring to the world at that time it was very uncertain and very unclear whether big queen would succeed phosphor was another decades or just under a decade where we are now. and we've seen the wherever i go in the world people

have at least heard of the queen. that was not the case. not so long ago that's right the word is out and these conferences are starting to bloom and people are getting the ideas in their head about what this is all about in june two thousand and eleven the price of bitcoin hit thirty two dollars it then fell to two dollars by november of two thousand and eleven that is a fall of ninety four percent it wasn't so much about price at that point because it was still magical internet money the reason that a lot of early adopters got in was not because we thought we were going to get rich as a result of speculating on the prize but rather i wanted to store my value in a system that existed outside of governments and banks it was like well this is the only logical option you know it's not about what the buying power of it is going to be over the next few years it was really more about well i know the by.

power of my field is going to continue going down due to the monetary policies where as i look at the monetary policy of but korean and this is something that is a lot more appealing so when we talk about permission less i want to talk about another area of the online world which was the world wide web the internet how that developed and how that was also permission list and the same sort of players involved including the cypherpunks and john perry barlow so tim berners lee created the world wide web h.t.t.p. and that was a protocol he invented which went on top of t.c.p. ip which was the internet at that time you needed command lines to access the internet and in fact i think somebody like richard stallman still accesses the internet using the old system of of just command lines so nobody needed permission you just developed and one of the things that happened in the early internet days was in one thousand nine hundred six there was a telecommunications act which was announced which started you know the u.s.

government started to interfere in how the internet developed. what happened to the internet and then i heard you speak in one thousand nine hundred five at an internet conference about the freedom of the action that it was kind of like the greatest thing since dropping acid you yourself was a lyricist for the grateful dead and there was this big love in in the mid ninety's that the internet was going to bring back freedom but now everything's encrypted everything is being surveyed the internet has been trashed by centralized governments and the corporations behind them what happened to the internet john. each area juristic understatement max. no i don't think i think the internet actually is doing just fine i think that there is to be a mexican standoff between the forces of liberation of the forces of surveillance and control. the internet is very powerful. force field inside of human

affairs and even as it allows many people that you never had a voice in the past to speak. there's never been a better surveillance to so i mean we can expect this back and forth it was john perry barlow who wrote a declaration of the independence of cyberspace governments of the industrial world you weary giants of flesh and steel i come from cyberspace the new home of mind on behalf of the future i ask you of the past to leave us alone you are not welcome among us you have no sovereignty where we gather and he went on to write about the natural law and the social contract that we are the ones where on line we are from cyberspace and where writing our own social contracts we don't want you imposing your human contracts your human laws upon us we are following natural law.

one that without the great things that does he have made was that he created the truly free market that is guided by the nature's laws that we just the laws of physics as of the combining is governed by thermodynamics and all without what i know if it's the science base going to understand that this is a break between energy and the temperature and how to effectively use them so that mining is governed by that nature as in all and also that mining is based on the understanding hope human nature that we are greedy we have felt fish but at the same time we are capable of out to him we are cable. of course we're dealing with about number one that's. understood they studied the old. flu six and tried that to create a perfect market from the state and also a bit of opponent understanding of human nature so what we have with the man made

laws and we have seen that the man made laws are very weak it's a bit of a corruptible because we ourselves as humans you know. that we do these part of our human nature so there's no way to actually account for that. part of ourselves so then we have come to the big point because the big going. with the nature of this law over to our incorruptible soul that this is that way and then this does not have to be there and this does not have external so to be it's. back to ourselves because the nature of already are guiding us so why do we seek i mean why do we seek also to be outside we have to simply realize that the law is already here. surrendered to the authority already have exactly you have to surrender to nature that you are a self solver an individual you have all the power you need inside you it's that you don't need a president to bail you out. same thing exactly and it's

a hard one to hard to want to get out more you know and to understand because we were so conditioned to see it for the nation we're so conditioned to look for and then we have these laws and you know all of those situations outside so it's harder for us to recognize that we have this laws of nature and the center to them she chose to be. an anonymous person i believe because it is important for you permission list system to not somebody who rules that or who has to will toward you over and. carries on when how people. news because when people think be queen is early adopters of any technology including the internet are often porn and drugs so there was that very early on adopters of porn and drugs in the big quaint space twenty eleven silk road is founded and

it's an online marketplace for anything right while porn and drugs of course are always part of the technological adoption cycle particularly porn we see in this over and over again ic i would posit going back to the story of adam and eve was a was a story that got people to buy the bible and you know this is really unavoidable and part of the human condition and we saw it with the bitcoin adoption as well remember the queen is permission was anybody can access it and one thing about having responsibility for yourself individual economic sovereignty is not easy you can get wrecked and in two thousand and twelve we saw the wreckage of the tom this is the collapse of big queen in may eleventh two thousand and twelve. hacked. is the when you give a party you'll be

a coin like an exchange and there was an exchange. and when you give you'll be going to an exchange you end up they own the big coin they can spend the big queen as they wish and they could say that there's more big queen than there actually is everybody lost their big car and they got wrecked and erupted all these sort of angry trolls trolls like laughing i'm mocking and don't get out tang and i get wrecked by going ten x. leverage by putting your coins on an exchange not your keys not your coins you know if you're on an exchange you don't own those coins so here is the here as a. huge lesson in individual economic sovereignty. has become the wild west of finance with the proliferation of websites offering loosely regulated replicas of the services familiar to those in the financial industry perhaps the most notorious is. a platform offering margin trading short

selling and stop orders run by a seventeen year old chinese high school student xu tong users can leverage their bets up to a ratio of ten to one on bitcoin meaning they can lose more than their initial investment so to be tong just to be wiped out financially and we're going to turn now to a little new hip song a rap song based on. that is you know so this is a tongue to this whole wild west without regulation meaning that in our western system now the regulators have been hijacked by the j.p. morgans the goldman sachs's of the world so would you rather be tong or would you rather be jamie diamond or the lloyd blankfein right now regulation means no

insurance so there's no f.d.i.c there's no backup insurance there's no one to bail you out definitely not in two thousand and twelve so this is a lesson that folks had to learn and they had to learn it over and over and over again. it's kind of like. this space when it's a free market i look at it like a gas stove when you're raising a child your kid can go to the stove and burn his or her hand and when he or she burns his hand or her hand they're never going to burn it again and you can't really teach that lesson you can't teach that lesson i kid when you put your hand out here is. when a burn is going to hurt don't do it here she's going to but they're. never doing it again we need more of that to happen in the space and at a faster rate and we don't really need government intervention there because the people to lose lots of money and freak out and they might each other it's called getting wrapped you've got to get back to getting it right it's the best teacher in

the world when you get whacked have ever been. nuked a few hard drives in the early early days made some vanity big going addresses they ended up being hacked by old employees. big corn into thin air by sending it to the wrong address for address verification was a thing i would say that i keep in majority of knock on wood never had to go through a big scam mostly due to my own laziness didn't get involved because the wall was kind of a pain in the to set up. so i've been fortunate in the fact that setting up exchange channels in such a just been too lazy to do and it serves me well so people say being lazy never serves you well they're wrong period so there you go.

above. they can come and blow our brains out at any given time and we can't really do anything actually america is the only country in the world where you can kill people. war and legally get away with. all the fire crawls still. all the trouble here's the point it's hollow flying to k.k.k.

exists because america wants it to exist they are the biggest terrorist group to ever operate in this country and they're dead to me they're worse than the people who destroyed the world trade center or the scroll why. is this is a stick from the water bottle phone in the stomach of a fish the brand is spawns of the coca-cola company which sells millions of bottles of soda every day the idea was that let's tell consumers they're the bad ones they're the litterbug for throwing this away industry should be blamed for all this waste the company has long promised to reuse the plastic. that seems. their plastic. essential projects funding me.

on i'm your best bet is the end of a footy team up to now the mountains of waste only grow. so not only did we just have a financial collapse from june two thousand and eleven to november two thousand and eleven big queen prices crashed by ninety four percent very similar to what happened in two thousand and eight even more dramatic in the financial markets then we had the failure of a major exchange and people's big coins were hacked stolen they got racked there was no central bank to appeal to there were no groups of elite to meet in doubt and say oh we're going to rescue these people and save them from this horrible hack it

was just you got out tongues you gambled with their own coins you put them on an exchange you no longer own your big quine and you got wrecked and haha you know what's with the troll. yeah well that's exactly right so there is a responsibility that comes with sovereignty and self sovereignty and the protocol itself was not attacked there was the exchange the host and their wallets and the coins that i got hacked so that's an important point to keep in mind it was a very volatile time for a bit coin certainly for the prices you interviewed andreas on topless and he mentioned the shallow pool of volatility. right under as many if bitcoin can survive the government crackdown but you ask well central banks and nation states survive because in your thoughts. yeah well i mean we've already seen a bounce back from the latest regulatory snafu you know bitcoin is this is a shallow pool of volatility and every time someone sneezes all of the volatile the

sloshes around a bit but at the end of the day you know this is a technology it's an invention and you can't on invents this incredible in french and that allows consensus of this tributed network that allows people to move around me internet q e three started and so. of twenty twelve again big queen is thriving it's growing it's becoming more anti-fragile it's already survived a ninety four percent crash its already survived the collapse of big queen ika it already survived a major hack hundreds of thousands of bitcoin stolen is already survived all that is becoming more robust and people still come they are still drawn to big coin the next bitcoin conference is september two thousand and twelve in london you spoke there believes you grow out of the current debt crisis will never exist and there are. there's only one solution now that's to me for printing my this is

going to be the defacto basis of what you see coming this curfew or because there you have a race to the law all these deliveries are going to be frightening just a short term as you can see each other especially for the front row the way out of the crisis by crime or. so this is this is this is what's happening here this is the context in which big coin has emerged and why it's such a valuable piece in this in this war what's going on and why i follow up because because we on the hundred porsha we cover her finance the financial war as we call it so q e three starts in september two thousand and twelve by now the markets are recovering their soaring financial markets are up dow jones is up so s. and p. five hundred is up footsie is up all the markets in the world everything is is great or is it because here we have yet another intervention yet more hundreds of

trillions of dollars we ended two e two with the two trillion dollar balance sheet on the u.s. federal reserve's balance sheet it will go to four trillion under q e three this begins in september two thousand and twelve in the meantime we've had bitcoin fall from thirty two dollars down to pennies this is a ninety four percent collapse that happened in. twenty eleven two thousand and twelve comes we have big queena hacked tens of thousands of bitcoin stolen we have wreckage nobody has needed to intervene nobody was even able to intervene if it were possible there would have been people begging all those people who got south tongue who got wrecked they would have begged anybody who had the authority to print them new coins that they had stolen and because they chose to give up their private keys to the exchange and then got hacked then got wrecked there won't be a big coin on verge of first bailout or exchange it didn't happen with mt god it didn't happen with anyone that's not how this works because big question is

strictly limited in amount it is it is the hardest strictest soundest money that we've ever had where you can't just create more of it this is the environment in which because one is flourishing it's continuing to get stronger and stronger and stronger the money system the permission walled garden of the central banking and their member banks system that's requiring more and more intervention more and more changes and hard forks in their algorithms a printing money buying mortgage backed securities didn't work let's buy junk backed bonds and you know natural gas bonds and fracking bonds and less like buy all sorts of stuff right and cause a reporter was there telling people to keep the faith and i think that's probably the time at which we were instrumental in keeping that community together because there was a lot of distress in the community the prices have crashed and the exchanges were getting act you know but we were pointing this out that this competing against extraordinarily corrupt system out there of banks and quantitative easing and that this was going to triumph over those guys in the end.

i max keiser time now to go to argentina and speak with jeweler. macro trends. and author of the new paper the gloom of central banking to welcome in the kaiser report. oh max nice to be with you i toured the european central bank recently released a fifty five page report called virtual currencies games tell us about it tell us about the gloom behind this e.c.b. report well it's very interesting it got out last week and when you read it it's first seems to be just about you know could be about any online competition for a for central banks or any other types of currencies but when you read into it there is one hundred eighty three mentions of the coin and they also mention that they they wrote this reports because they got a lot of questions from the public in the past few months i mean this has to be

because of bitcoin so you know that of course there is the question why why would one of the most powerful financial institutions on the planet why would they bother writing a bit clinical as you could just as well see it as some kind of mathematical puzzle work by give each just send back and forth some bits and bytes over the internet so why do they take this seriously and that caused me to to look back and find some other papers written by the b.a.'s the bank for international settlements in baseball and also look back at how they wrote about online competition in the past and there's reports in one thousand nine hundred six for example so to compare these two. impressions they give is really really interesting and it turns out that bitcoin for them is a totally different ball game and frankly they don't know very well how to deal with it one must always remember cypherpunks write code that's what they do they

don't defend speak they don't talk they don't try to convince you of anything they just do they write code and bit quaint just does it just is and it doesn't have to convince you of anything why can't i choose my monetary policy and that's what the queen gives you it you. zoe fix supply if it's supply using the choice of oxy it is nobody forces me to use because i am forced to pay my taxes in canadian dollars so they force their value through how you paid in because there is nobody foresee anybody does voluntary system is fascinating that choice of us to do for the first time for each person to decide to be aligned with the nature of the law make a decision to live accordance to our way of living and that onerous nature and

nature is the laws so this battle is out there it's waiting on and it's going to be intensified and so i hope i want to make sure that that would be to inform the one so that each person make an informed decision as to what kind of a future stupid idea should we want to be a part of and how we want to use this technology at that september two thousand and twelve london conference we talked to frank braun who was a privacy activist or as they would say in your previous e activist this was the beginning of the clash of the various groups because bitcoin is permission less anybody can participate whether it's the bankers or privacy activists from germany you know who's wearing a mask cypherpunks everybody's now involved did say the beginning of corporate interest in bitcoin and the venture capital community started to take interest and their agenda is different than

a cypherpunk agenda so it did splinter the community there were five times there were people that were. really actively enraged that the banker types who were kind of like curious on now about what was happening the big client base and conversely the bankers were aghast that they had to share a stage with someone like for. bronner privacy extreme privacy advocate frank braun was a privacy extremist who he called himself so he he's unwilling to basically negotiate his privacy and hill let you see his face if if if he agrees to it i guess that's why he was wearing a surgical mask while we are entering going am on the kaiser report. all right frank first i'm sure the audience will want to know why the mass. privacy is necessary for liberty and. try this is not granted it needs to be taken therefore in times of extreme surveillance assume we need extreme contemn of those

for example their cameras to know everywhere they can identify you personally and take all of whom movements that's why i became a pro-choice extremists and very mosque and public clearly frank ron the surveillance state is here hence your face mask but what about the security of any online transaction going forward including big calling so i guess this is kind of a follow up question to what we've been talking about in terms of what can people do a few techniques for mention that because in two thousand and twelve but what are some of the basic things people should be considering now that we've entered this permanent police state surveillance state you have two areas and which you have to improve the first one is digital security and second one is trade for digital security means everything like you should in truth to e-mail you should include your heart or she should learn how to use internet anonymous those bankers coming

into the system no matter what they want they can't get rid of the fact that it's the hackers it's the dangerous guys it's the privacy extremists that are a core to maintaining because yeah that was a clash of cultures because on one hand you had. the corporations and they thrive organization and of course because it's all about the central ization bordering on anarchic so they came together and the sparks float and we set up for and subsequent chapters you'll see how that plays out. is this is a stick from the water bottle phone in the stomach of

a fish the brand is spawns of the coca-cola company which shows millions of bottles of soda every day the idea was that let's tell consumers there are the bad ones there are the litter bugs are throwing this away industry should be blamed for all this waste the company has promised to reuse the plastic. special projects funding. on the. fun now the mountains of waste only grow. new you know one of the. underwater.

he says the move for your. business is a period of sort of. see whether it's. bush bloody. good you would you know well the minute you did it was my group of. losing is it's if you listen up all of the good of the team you know that all you want to go to the brink of an enemy at the students at the louvre still a study in that you'll know paul. went on but well it was pretty good way to lose a. little bit of what you still do which because you know i'm going down on a first come. here do you mean to marry your money you know did you sort of storm the lead here sort of my look for

a mood sure because you're doing the fluids you're coconspirators some are going to be. president nicolas maduro says he crawled to an attempted coup by by this way an opposition leader one who along with his u.s. backers denies plotting a military of its right i'll guess debate what really happened. while you go doesn't it get him into power of nice by doing some national committee six million people voted for nicolas maduro last may in a free and fair election that i serve you know how many people voted for won by gone. the u.s. attorney john.