shaped by one person. who dares thinks. we dare to ask. max kaiser this is the kaiser report stacey what are we doing here this doesn't look like mexico in fact we are in mexico so we're trying something different

we're down in cane cooed on the beach we're covering the stories of mexico and having a good time but we're doing it. on our i phone. max kaiser and lovely can't couldn't mexico on the b.h. with the palm trees swaying in the monkeys chattering special guest with us today alex patch off sea. bit fury they're rocking it out in the mining space thank you marques remind you finally and tell us about big ferry it's a company that was very early into because and we heard about it we talked about on kaiser report going all the way back maybe to 2011 or so but tell us a little bit about it sue before it was wrong to be in 2002 well initially it was like everything was just began from a whole big soon be people will so many different businesses they realize the beat when existing the start to try mining going and then they decided just to create

the company and they were nice cheap and they started building the data centers a 6 you mentioned a 6 what are a 6 chip special custom designed i see cheap one performing on the one single functions. a lot of things you're hearing skills just to create it it's like bigger capable of course just to create the cheap bot it's working what's the fish and meat consuming less energy is this possible in providing more reforms and this is when mining big client kind of transition from the home miner who is on their laptop to suddenly there were these basic chips and it became more it industrial is that correct yeah that's correct sue the chip was not invented only by beat quietly using them from the seventy's but the normally revolution if you feel about the beat going like bachmann for structure it's the warmer all the operational expenses and this is the reason why instead of the c.p.u.

the speech for g.p.u. because the working more efficiently and consume less electrical energy and. then they go to f.p.g.a. and right now all these using aces ok so there's a bit of an arms race in the technology client mining and in china of course you have huge players who not only designed chips but they also have a lot of energy available to them and they dominate with between 40 or 50 percent of all the mining depending on how you look at it is is that concentration of mining in china is that an accurate description and is that going to continue in the near future and is the new coronavirus does that threaten chinese mining in any way to. its source chest like the obstacles for china because see if you look equal in the economy grow to be in 2 years we china is most lost and growing economy and then you have the fossil growing economy it's

a lot of electric kind and you build all other bridges they build a lot of electrical stations you know make their stations and this is a reason why they have resources just to like ron the mining operations and in china because they have better composite see right now approximately like ports see maybe 50 percent of the mining equipment operating right now but during that time i think these distribution will be changed so right now people just doesn't really trust their government because the government doesn't have to be nations about the money you have doesn't have to be very good prices for a piece that doesn't get in the capacity because the idea that big coin is becoming the new gold is becoming gold 2.0 still hardest money that's ever been we've ever been ever seen in. manatee it seems logical that eventually states

governments will begin to add to their gold reserves so countries like russia and china that have been massive buyers of gold. they will probably start to add bitcoin to their national reserves well they get into i want to get your opinion on this because it's been nagging me for a while will we see something like a hash war work countries dedicate energy to mining and attempt to get as many bitcoin as possible because because it becomes a strategic asset would that you see that happening yeah things to biggest right now the have the like absolutely different their suit economical layer then the internet was born is create the national air all resources mostly virtual . working and then occurring before any need some hall to be 1st.

and then the twinkle for the paper money is not working sending like and providing the light bank accounts elsom up the proper way how to pay then we start sending sources using connect shops they stop talking about economy working 247 but then your swiping the crazy card or you know deal more scared and saw me up 2 to 5 days . providing quite not and not speak just to pay for services they beat corn is looking quite real money for a big point for internet just before the payment and government because the also function in global economy if they're providing some sources they would need to protect their interests and this is also hard to be quite as working everyone is interested just to get their benefits from bitcoin and same time they're trying to protect their interests and their supporters to cease to so the game theory that's kind of baked into the protocol it jumps to the nation state level

and we see it all act let me ask you about energy use because on one hand you can say ok this is a massive network there's. 100 quintillion calculations per 2nd supported by the massive infrastructure and technological infrastructure but there's 2 points number one this this industry chance to go where there is cheapest energy and that tends to go where energy is being wasted so in the case of natural gas but that's flaring and being wasted you would see big miners in the case of huge life school grads where there's a lot of down time electricity is not being going through the system you can use that in mind it quite so it's actually energy efficient and that way to get your comments on that and 2nd of all if you if you compare it to figure out money and the energy required to maintain the global feed of money as you just described it's highly inefficient the u.s. dollar the yen the euro these are multi stack inefficient albatross systems that

should be definitely disrupted so is comment on the energy of the bitcoin mining infrastructure where are we with that right now going small snapper 8 and using the kid relate to stations to approximately quite close to 80 or some. electrical energy used for mining heater a mix of power and it's most cleanest one. if you look at the statistics the united states approximately between 64 person to 70 porson electrical energy is generated using it for so for its meaning the gospel in the morning we quarrel and so on in the war it's approximately 80 percent of electric and as you generate the use of the force with pool it's not the greenest one month going on the biggest the lake the you don't make the station they are all these fields providing some extra capacity because you cannot improve them quite easily if you cannot expand the dumb

you building them at the beginning and he has a couple of resort just in case if the local businesses or. leaving people need more energy and the result is creating the normal resource of electrical energy or what they get at the station i about to sell at the lower price this solar energy it's not so green i'll be counting biggest manufacturing the solar panels using a lot of like poison shared history it was a show of the solar panels and also easy not so green. and clean on green this is the biggest usually and this is the reason why stocks in the senior police the price higher comparing to internal combustion say and you can see calculates in all the c o 2 all the carbon emissions during the fuel cycle if you use manufacturing and also disposal and this law from that point if you it's not so green and people

constantly assume asia they most of the electric. cleans fossil fuel we beat corn else using the most to mice infrastructure so it's meaning comparing to regular financial systems. doesn't have a central bank it doesn't have offices it doesn't require and police the only infrastructures are a existing candidates using to existing internet doesn't require any additional cables lines anything in result. made matrix and all the people like you mentioned the game theory if i would like to use that money sue i'm became part of the system i'm trying to protect my interests against your interests the only interest and to use the beat corn just to perform payment and be trying to protect our interests it appears as though there's going to be a new competitor in the big mining space in the united states and texas. i guess led by peter thiel is kicking off what's called level one and their goal is to

capture 25 percent of the mining global mining or hash trade. they have access to great cheap energy in texas now this plays in 2 different ways number one obviously on the downside if you're a big miner like bit ferry probably the 1st and the standard setter of this industry i would say you know host of the annual conference and necker island you know you guys are really sitting at a very privileged spot so here's a newcomer and they've got the raising $50000000.00 a 200 $1000000.00 valuation they're going to grab 25 percent of the market that's that sounds like a negative but on the other side it means that the network becomes more secure because you have more cash power going into it which means that the price is going to go up and you guys are very early in the space i would imagine you're sitting on

some bit coy so there's actual there's a lot of upside to the fact that you're bringing in more capacity into this industry your thoughts start think the mining could be. like any like any os or business right now it's not just about the money to old idea. became white most series right now it's more about the technology more about the experience more about your engineering skills more about your under me thinks more about your ability to more foster react on the ole obstacles because. the internet and only services like between the a function to read both sam and it's meaning if something changes you should react immediately and she will build a better prediction and beasts decreasing curie skin increasing purifications. we are not afraid about the new cameras in the litter and then the normal the high concurrency on the mining fell creating pigs aka the efficiency for be quite as

many keep pushing their old abrasions the. down by price because the currency beat the different players. pushing them to talk to my small their operation on complex expenses and this is why the old miners creating quite more to my street they send them all a very nice the brace spits fury has really rocked their mining space for years now thanks in large part to this gentleman alex pet shop the c.e.o. the chief information officer thanks for being on the kaiser report. plus my pleasure also thank you wow yeah not sure exactly what happened next but anyway stay tuned for the 2nd half a whole lot coming your way. and

we're going to fulfill repeated promises ok politics to the people and come on you know it's all bots to. you. pretty. much. pretty good. now you want to 1st. know. all the cut. coming coming coming.

in this community there are people who believe that it's ok to suffer actual food on my table. it's really hard there are no jobs and you see the kids ask and as a parent. i can come up with arguments and there's a lot of conflict in the game between the teams close to the conflict i would say overall is around money and most of them is made. close one on the children's clothes seen on each other is good business the state of california alone makes $6000000000.00 a year of prison complex just to get some $25.00 where. you don't care and. so you know. i'm. going to come.

welcome back to the kaiser report i'm max keiser time now to return to our conversation with michael out of gold money dot com yes i'm an investor in a company heck yeah ok also welcome back to the show that's my pleasure max and we were talking in the last segment about the central banks buying up lots and lots of gold and what does this mean and are they preparing themselves for what exactly and it seems as of though what we have seen in the last 10 or 15 years is the weaponization of the u.s. dollar writes of the u.s. dollars world reserve currency and then the u.s. dollar and the folks who run it in the new york fed and in washington decided to cut iran off from the swiss system and they threaten folks in iraq they're going to we're going to seize your assets in the new york fed right so they're using the dollar as a weapon and is that one of the reasons why countries like china russia and

others are buying lots and lots of gold because there's no counterparty risk they they want the exposure to the weaponization of the u.s. dollar and is that if that is that true and has the u.s. kind of hoisted itself on its own to tarde if you will by by encouraging that kind of behavior ouster i think that is true i don't think it's the only reason he based it kate so if the americans have used that the dollars a weapon as you push it for some considerable time but the difference not is that the you know the big players away from america a lot easier intimidated or indeed talk you know like sort of chases in places like indonesia and so on so forth it they just don't get told anymore so the result is that every time america uses its dollar weapon it just reinforces the idea that. like russia or china whoever protect themselves by

moving in to go rather than. having the complete explosion of the dollar and this i think is one of the main reasons why russia in particular rich she earns nothing but dollars and she just gets rid of them as quickly as she can and good bets again to go the u.s. of course is adding over a trillion dollars of national debt the next few years or so. you know interest rates aren't going up the interest rates of course are not going up because the central banks load up their balance sheet with all the junk and they swap it out for fresh treasury bills you know last episode you mention john law and the mississippi bubble as it's now not by the way i should note that myself and james turk also from gold money made an excellent film about this you can see it on you tube it's a 2 part film about the whole rise of the ass not in france and john laws and what happens when you start to commodify everything in our economy to backfill money if

the money collapses the whole economy collapses. in my taken to believe that you believe you think that this is where we're at now in the cycle that everything is being essentially commodity ties to back this paper money which is like the worst thing you can possibly do it's john law all over again but on a global basis is that true elster that is how i see it every basically what drop john lord did was he set up a private bank which school function or oh it then managed to get that confesses into the royal bank which is affective laid low at the 15 the 15 central bank or rather the region central bank and it allowed johndroe or print money to buy shares in the mississippi venture so it was a double run when he merged the 2 together which i think was separate the 281720. the king in other words the regent because the king was.

so young but the region decided to take some money out of this and he took $9900000000.00 leaf threat just short of a 1000000000 lever out of it right at the top now at that stage john doe is beginning to have to plug a few holes here and there in the whole thing. like he had to ban the use of callings and his notes had to be used as money instead this is sort of the thing we're doing nowadays or been doing for a while taxes had to be paid out of his currency in other words he would provide you the money to pay the taxes so it was a double round he was using that money to puff up the mississippi shares and when they merged in february 17th 28 that met that actually was the peak of the whole thing and what happened was that the collapse in the mississippi shares happened at the same time as the collapse in his his john laws bank notes in

leverage so much so that by september in london there was no exchange rates in other words they went from. full value to valueless from the end of february to the end of august now the key to it is that he was tying together asset values financial asset values with the currency in years want to puff up the other and the other effectively to support the former so you could see that the 2 things were tight together what have we got now we have got a very similar situation central banks puffing up markets we have this coronavirus saying today which should be undermining asset prices because with the chinese economy effectively taken out of the equation for the foreseeable future we actually happen economic crisis but what happens puffing up share prices also frees up 400 points today i mean this is crazy the other thing that they're doing is

they're driving down the gold price to. try and sort of give an impression that everything is ok this is very dangerous stuff and it reminds me of well john roll was in february 17th 20 the similarities are all it for us to see if we want to look forward it reminds me back in 2008 of course what got the whole global financial crisis started was one of the funds on wall street a junk bond fund they had to revise down the net asset value of that fund and that started a chain reaction it was one fund on one bank's balance sheet was downgraded and it started a chain reaction of lehman brothers and bastards and elsewhere and a crazed trade the global financial crisis which requires 17 trillion dollars worth of or more in balance money and the response of wall street and washington and other banks around the world was to increase the size of the pipes that carry the

money right so they didn't they didn't bother examining well is the currency self worth anything or is the system unstable or are we floating this enormous global ponzi scheme they set the ponzi scheme we're going to keep that intact but we're just going to widen the pipe so that we can float and flow more fraud remember it wasn't so in insolvency crisis auser it was an illiquid a crisis right it wasn't that they were committing fraud it was that they weren't getting enough free money from the central banks so they made the pipes bigger they deregulated they really architected they change laws they stole from other poor slobs and then that they have this bigger pipes for the bigger global ponzi scheme but my question is are we at the limit of the carrying capacity of the reforms that were introduced post 2008 to make the global ponzi scheme bigger in other

words so are we at the map. excellent carrying capacity for global financial fraud at the moment or can we float another 102030 trillion worth of fraudulent paper money in in the system now alister i think we're very close to that point they say that the point i think today is that we have a contracting global economy now what this means is that the dollar balances that foreigners need to hold are less than they were previously so they're going to turn sellers of dollars now even before this turns out as of dollars you have in america a budget deficit of over a trillion dollars in this current year the effects of the coronavirus if you want to blame it on that but i reckon it's already going out way anyway we're going into a slump effect on us government finances will be catastrophic now who is going to buy that debt the foreigners are not going to buy it if anything they're telling

sellers of the dot and as interest rates rice they will liquidate portfolio positions remember that their sum total of cash and it vestments in america including fulfill investments. holdings of u.s. treasuries t. bills and some say fall is in the order of $23.00 trillion dollars it is more than the whole g.d.p. of the united states now with that situation and so few people seem to recognize this they are not going to buy any more they're already stuffed full of dollars now ok some people have borrowed in dollars and will need eventually to pay back dollars and they will need dollars to pay the interest on that debt yeah sure but the level of foreign investment in dollars is so high that on a net basis you will find that no foreigner will be buying u.s. treasury debt and weston that when they tell stern selous they. you have

real problems you'll government will not be able to fund an escalating deficit escalating because the net present value of those future welfare. costs are coming home to roost. unemployment will be rising which basically means that you know current welfare costs will be increasing as well you've got a wonderful health service. which is extremely expensive not only for the government but also for companies and the key which will undermine it is a falling dollar and a foreign dollar will be the response of foreigners so the situation in america let's focus on the end game here let's say there is a global reset and gold becomes once again in play and we go back to some kind of gold standard the u.s. us down simply has $8000.00 tons of gold in fort knox and they believe to have the biggest gold position in the world india has 20000 tonnes amongst its population

it's got a huge population a lot of people of india the individuals own a lot of gold there's that we've got huge gold buying by china and russia but still nowhere near the position held monetary gold by the us so the comment i want to i want to ask you about this let's say the whole system crashes we go back to a gold standard who's in the best position at that point to rule the roost so to speak i think the problem with the recess is that we just don't know how it's going to happen i don't think it's in the hands of government i think basically government's got to get the finances are going to get completely destroyed to the point where they withdraw from intervening in the economy and that could take i mean i think i think that the initial effect would be really quite sudden but it could take quite some time before we get to the point where governments accept the uk it's actually got to drive things the only thing we can do as individuals i

think is his head. don't just sound money don't go with the fish equivalent somebody in the form of gold and silver have that protection because you're going to have to ride it out it's not difficult they can always turn the buckingham palace into a mcdonald's that's a hell alistair thanks so much for being on the kaiser report that's my pleasure max well that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert want to thank our guests are michael out of gold money dot com if you want to reach us on twitter it's kaiser report by a. 2040 you know bloody revolution of you tube the demonstrations going to be relatively peaceful political protests to be increasingly violent revolution is always

spontaneous or is it you know we're here. with pretty would put him in the neighbor lose out on the schooling needle the former ukrainian president recalls the events of $24.00 g. and. those who took part in this today over 5000000000 dollars to assist ukraine in these and other goals that will ensure a secure and prosperous and democratic. so what we've got to do is identify the threats that we have it's crazy one sunday shouldn't let it be an arms race in this spearing dramatic development the only really i'm going to resist i don't see how that strategy will be successful very critical time to sit down and talk.

european leaders use the munich security conference on going this weekend to warn of the west's political fragmentation but the u.s. secretary of state speaking there is says he sees no threat to the current global order in time the french president also calls for a strategic dialogue with russia too and gives his thoughts on the economic penalties imposed on moscow beginning 2040. i don't think we should lift the sanctions i'm just saying that the sanctions and counter sanctions didn't really work out. of the headlines this weekend attack is the best forward defense holds a major pentagon project over claims of a multi-billion dollar contract that went to rival microsoft was. the border from.