initially it was like everything was just beginning from the whole being sued the people will so many different businesses they realize the beat when existing the start to try mining going and then they decide just to create the company and they release the process. and they start building the data centers a 6 you mentioned a 6 what are a 6 chip special custom designed i.c. cheap one performing on the one single functions. a lot of things you're hearing skills just to create that 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 transition from the home miner who is on their laptop to suddenly there were these basic chips and it became more and industrial is that correct yeah that's correct sue the chip was not

and then think only by b. 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 the new cities using a seems ok so there's a bit of an arms race in the technology of big 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. 2. is forced chest like the obstacles for

china because see if you look equal in the economy grow green cloth to be in 2 years we china is most lost and growing economy and then you have the fossil growing on me it's also quite a lot of electric kind of the build a lot of the 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 that you have doesn't have to be very good prices for a piece that doesn't get an out 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 and 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 bitcoins to their national reserves will 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. have the like absolutely different their suit economical a. then the internet was born it's create the national air race all resources

mostly brutal. working and then it long before any need some hall to be 1st. and then it went before 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 cannot show the stuff talking about economy working 247 moths in your swiping to create a current real deal more scared and saw only a few to 5 days. providing quite not in out speech just pay for services we beat corners looking quite real money for a big point for internet just before the pavement and government because the also function in global economy if they are 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 beat going in site same time they're trying to protect their interests and their support for the deceased 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 this 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 or that's flaring and being wasted you would see bitcoin miners in the case of huge national grid where there's a lot of down time electricity is not being going through the system you can use that in mind but 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 field of money as you just described it's highly inefficient the u.s. dollar the yen the euro these are multi stack n.s.t. albatross systems that should be definitely disrupted so is the comment on the energy of the bitcoin mining infrastructure where are we with that right now the beat going is small snapped breaking using the kid relate to stations to approximately quite close to 80 or some. electrical energy used for mining he says he'd read an excerpt hour and it's most cleanest one. if you're looking at the statistics the united states approximately between 64 person till 70 porson electrical energy is generated using before so for its meaning burning biggest more in a morning we quarrel and so on in the war it's approximately 80 percent of electric an issue is generate the use of the force which will it's not the greenest one

beach going on the biggest the lake the you don't like the station they are all these fields providing some extra capacity because you cannot improve them quite easily if you cannot expand the dom you're building them at the beginning and he has a couple of resort just in case if you will call businesses or believing 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 ship mystery it was a show of the solar panels to sell some not so easy not so green. definitely on green this is the biggest usually and this is the reason why stocks in the scene the police twice higher comparing to internal combustion say and you can see calculates. all the c

o 2 carbon emissions during the fuel cycle if you use manufacturing and also disposal and the tesla from that point of view it's not so green most people constantly assume asia the most of the electric eye. will be beat corn else using the most up to mice infrastructure so it's meaning comparing to regular financial ceased to be doesn't have a central bank and doesn't have offices doesn't require and police the only infrastructure is already existing candidates using to existing internet doesn't require any additional cables lines anything in result. made mistakes. and only people like you mentioned game theory if i would like to use that money sue i became part of the system i'm trying to protect my interests against yours interests the only interesting to use the beat corn just before payment will be

trying to protect our interests it appears as though there's going to be a new competitor in the big coin mining space in the united states and texas a group 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 them 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 her 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 or $200000000.00 valuation they're going to grab 25 percent of the market that's that's. 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 an actual there's a lot of upside to the fact that you're bringing in more capacity into the send astri your thoughts start think the mining. like any like any os or business right now it's not just about the money to old idea. became white must series right now it's more about the technology more about the experience more about your engineering skills more about your on the me thinks more about your ability to more foster react on the all obstacles because. the internet and only services like beat coin they have function to rainbow sentiment it's meaning if something changes you should react immediately and she'll build

a better prediction and beast decreasing fury skin increasing purification is. the i'm not afraid about the new cameras in the literary and then the normal the high concurrency on the decline mining fell creating pigs aka the efficiency for be quite his meaning keep pushing their old abrasions down by price because the currency between different players pushing them to optimize all their operation on complex expenses and this is why the old miners creating quite more to mice the beast in them all. to mice that gratian spit fury has really rocked their mining space for years now thanks in large part to this gentleman alex pet shop the cia 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 come. your way. in

the united states presidential candidates debate the future of the us and the world . max kaiser and stacy herbert dig into the burning questions of this election cycle one self big every week. student debt trade wars corporate money universal basic. and more catch up with what's front running this sunday exclusively on r.t. .

and this community there are people who believe that it's ok. it's really hard there are no jobs and you see that kids ask and as a parent. i can come up with arguments there's a lot of conflict in the game between the 2 most of the conflict i would say. is maybe. close one on each other. each other is good business the state of california alone makes 6000000000 dollars a year of prison complex just to get some point in your life where. you don't care and. so your care might anything. i'm going to fulfill the repeated promises apologise to the people and come on you know we've all bots to. make you feel really really

oh. pretty good. now you want to 1st crack that. no. balls be. coming out my yaar.

welcome back to the kaiser report i'm max keiser time now to return to our conversation with the clout of gold money dot com and yes i'm an investor in a company heck yeah ok also welcome back to the show that's my pleasure max 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 what we have seen in the last 10 or 15 years is the weaponization of the u.s. dollar rights 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 swift 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 to the american suffuse that the dollar's 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 lot easier intimidated or in deep 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 into 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 allah 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 fear money collapses the whole economy collapses. and 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's how i see it every basically what joe or john lord did was he set up a private bank which school function or oh it then managed to get that confess it 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 rap he was using that money to puff up the mississippi shares and when they merged in february 17th 20 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 affect to be taken out of the equation for the foreseeable future we actually happen economic crisis but what happens puffing up share prices wall street's 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 rule was in february 17th 20 the similarities are all 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 create the global financial crisis which requires 17 trillion dollars worth of or more 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 eloquent in 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 re 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 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 rise 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 to the situation in america so 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 so 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 something 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 i'd have that protection because you're going to have to write it out it's not difficult it 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. listener pretty you know the moon but in your circles one of. the much for that was

a little trip. to the north of the. white english but a preview here already seems to have you know made it seems to trace. that . in $24.00 to you know bloody revolution of you tube the demonstrations going from being relatively peaceful political protests to be creasing the violent revolution is always spontaneous or is it you know we're here to put it but i mean you know i live with to do it through me in the new bill is that i do schooling you know to the former ukrainian president recalls the events of 2014. 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. is your media a reflection of reality. in a world transformed. what will make you feel safe. isolation little community. are you going the right way or are you being led. by. what is true what is free. in the world corrupted you need to descend. to join us in the depths. orem even the shallows.

that. was. russia's top diplomat at times as western counterparts of the munich security conference that it's time to seek common ground that they must stop the train in moscow as an existential threat as european officials warn of the west's political fragmentation while the us secretary of state insists he sees no threats to the current global order. pentagon digital defense contracts hangs in the air after imus and challenges the way the multibillion dollar deal was awarded to viable microsoft. and the border france's equivalent of the oscars quits on monster over director at the director roman polanski sweeping the nominations despite still being wanted in the us to start.