ok. guys or this is the kaiser report loving lockdown if i knew lockdown was as great i would have done it sooner. it's just magical time of reawakening and let's talk with stacy. max we're going to talk about the cycle of life you know how one is born in your have people who have to take care of you and feed you and change your diaper and then by the time your in your eighty's or ninety's and you're at the end of life you're at the same sort of position and having people

change your nappies and feed you and be the you and put you to bed well i think we're in that bit of the cycle with the u.s. dollar remember the petrodollar was conceived in the 1950 s. but really born in 1981 when nixon took us off the gold standard and we've come full circle because remember in the 1970 s. we had the oil embargo wars in the early days of this petro dollar being a full you know u.s. dollar backed global currency grid and here we have a special report trump told saudis cut oil supply or lose u.s. military support so apparently in an april 2nd phone call trump told saudi crown prince mohammed bin solomon that unless the organization of the petroleum exporting countries opec started cutting off oil production he would be powerless to stop lawmakers from passing legislation to withdraw u.s. troops in the kingdom for sources familiar say yeah well i don't really understand

us all saudi relationship anymore you know i mean why are we why do we have troops there and saudi arabia anyway why do we have troops and cutter so huge military bases right it's a waste of my. me. why do we have troops in south korea that's a waste of money why do we have troops in germany 50000 american troops in germany that's a waste of money you know we cause we have this huge military presence all over the world we have a huge cia n.s.a. all these intelligence agencies that we pay you know as taxpayers they're funded with $1.00 to $1.00 trillion dollars a year and then when this covers 19 thing it trump is like. we don't know or we think it's from china we think it's from ohio but what in my opinion the cia for they can't do a coup in venezuela they've lost their ability to do that anymore they don't know what's going on anywhere in the world what give me back my money ok i know what to

do with my money i don't need to be giving it to the cia well in terms of looking a lot like the 1970 s. right now as we head into the last days of the dollar you know back in 1973 through 79 we had you know the 1973 oil embargo then we had the 1979 iran revolution and that caused in $73.00 the price of oil went from $3.00 to $12.00 and this causes huge lines across that place and we had inflation we had interventionist fed by the way that was the beginning of the intervention of fed when tall paul tall paul came in in 1979 ne re interest rates way up high in order to basically keep the dollar as good as gold now we have the opposite we're having to go negative and then there was a shortage of supply of u.s. oil and that was maintaining the u.s. dollar and our primacy and our hedge of money we threaten to basically bomb them or you know cut off saudi arabia at that time but they have the power here we have the

opposite is in oversupply this was ted cruz back on april 21st and he tweeted 20 tankers filled with 40000000 barrels of saudi oil are headed to the u.s. this is 7 times the typical monthly flow at the same time oil futures are plummeting and millions of u.s. jobs in jeopardy my message to the saudis turned that tankers that back around so you know just like when you're a baby and you're born in your diapers are this big now or diapers are this big and you know that's the only sort of difference as very similar to what we had in the 1970 s. while lists were off the russian gay hoax where that ran for like 3. years off broadway fun c n b c rachel maddow playing their crazy housewife who sees russians in her cupboards oh my god the russians and then that got played out and then we i think ron to china and gate and the saudis are trying to disrupt the

american shale industry oh my god imagine that they're trying to disrupt the american shell industry after we've boasted that we are bigger exports of oil than opec than saudi arabia they responded right and they're out there are sending you know thousands and thousands of tankers lined up it's it's you know we need females running the world i think i think males of have have you know they're so by day has come and gone there's just too. stupid i think maybe we need a new kind of global u.s. dollar standard a new standard unit of account because this is met it's half and days again we're back to the 1970 s. we had a cold war back in the 1970 s. that was it's no. coincidence then that the baby boomers who are in basically a midlife crisis want to return to their teenage years this is before they return

to their baby years and they need this big nappies so right now they're back in their cold war days they want that what they had an experience back then we were threatening to bomb iran back in the 1970 s that still going on we had nixon also of course not only did he take us off the gold standard but he also you know introduced china back and he brought china into the world economy that's been great for china not so great for day u.s. citizen so you know back in the 1970 s. we also had stagflation and the shortages and you see people lining up for gasoline to fill their tanks back then that was in one. 873 we also had serial killer is a lot of serial killers as well that in cells of the day we now have in cells today who do mass shootings but back then they used to do serial killing and that brings me back to because of course ted cruz is all upset about this oil situation he was born in 1970 by the way but many say he was already

a killer which was one of the serial killers of the 1970 s. solo stuff forget about disco right this is really to the defining characteristic of the seventy's donna summers possibly the greatest female vocalist but much better than barbra streisand much better than madonna donna summer socially and maybe not as great as chaka khan but definitely she put the boogie into the seventy's like nobody's business i can tell you that and remember i said there's a cycle of life we've come full circle and this is and i'm most amazing quote from richard nixon in 1983 and this is when the oil embargo started and iran then as opec they said they wanted the price to double or triple they wanted to set the price higher and it was at $3.00 at the time for a barrel of oil and it did eventually go to $12.00 but richard nixon of course was

angry and he said this and now think of fracking and what has happened today with negative oil prices and september of 1973 richard nixon said quote oil without a market as mr most had learned many many years ago does not do a country much good referring to the 1951 nationalization of the iranian oil industry but between october 1073 and february 97 for the opec countries raised prices by 4 fold to nearly $12.00 so oil without a market as iran learned. is does not do a country much good so here we have fracking without a market that storage for their price that they need to break even nixon also said that around the time famously i guess we're all keynesians now. right so he understood that the at qana me was transitioning to one of pure debt based

fi at money right that the days of hard money the days of accountability the days of the american supremacy in terms of its ability as a manufacturer and export are what they inherited after the huge when of world war 2. were over and there was also the last time that wage earners had any kind of decent wages the average wage earner could support a family and not go not deliver their car and work in a wal-mart chair right so he understood the damage he was inflicting upon the u.s. economy and. you know the oil markets should have gone belly up long ago you know it's supports the quoted industry that has already been superceded by far superior technologies on the combustion engine and some of these other technologies that are 100 years old or more but you know we keep it around like some demented 98 year old great

great grandparent that you know maybe. is past the past their prime well that sounds like our you know our presidential race but let's move on to what you know here he was not only referencing how the us empire is born of you know violence and threatening overthrowing the the democratically elected most today in iran and he nationalize the oil industry today we've come full circle because america has basically nationalized its oil industry it's been 0 percent interest rates that interventionist fed that has subsidized the oil industry the fracking industry which has lost money the last 10 years and that the only way you can lose money and keep on going is in a soviet sort of style where you're being subsidized by the state but now they're actually the u.s. government is going to intervene and bail them out even though they still won't make money but now the taxpayer gets to own them and you know in terms of this full

circle he took us off you know and richard nixon tarkus off the gold standard hard money and we're now back to hard money because when is the revenge of hard money against the us it's the death knell it's the final nail in the coffin of this u.s. dollar system that isp. spidered and you know the whole rise and fall the crashes in 200-2008 this are all about this right plus it's global so every country has being victimized by keynesian psychopaths venezuela colombia mexico everywhere in the world china japan you know you name the country and they're a keynesian fia money's cesspool and they have access to bitcoin and you're separation you're separating the state from the currency vladimir putin recently said in an interview something he was asked about bitcoin and he said well it's you can't have a national crypto currency because they are transnational they're not they don't

they're not something you know no borders no borders right and we're within 5 seconds stop pushing himself as probably the only world leader anywhere that even has any understanding of crypto and bitcoin at all and finally i want to end with these 2 things that show you that the dollar is doomed and this is the death now these are the last days that the dollar it's a petro dollar system so here is the price of oil going back to $870.00 this is the 1st time it's negative both nominally and in real terms and finally of course that you need an economy you need a thriving wealth producing industry you know leading power in order to rule the world and here is debt to g.d.p. vs velocity of money this is the death this is this is it since 2000 it's been dying velocity of money is way down it's in the hands of a few they think that you know the game's over right that's exactly what happened the soviet union you know we're recreating the soviet union i would love to talk to president bush out of here putin about this on the casa report you know i've been

sent over hundreds of invites to your office on the crime one so far no response blat. let's make it happen well we'll take a break and when we come back lots more coming your way. thousands of american men and women choose to serve in the country's military and the decision lotos sheltered lives every thing came to a complete. the day that i was very strongly you know told a short while to kill me and i see how it destroyed my life any screamed at me and he made me come in and he grabbed my arm and he write me this berthing area if you take into account that women don't report because of the extreme retaliation and it's probably somewhere near about half

a 1000000 women have now been sexually assaulted in the us military rape is a very very traumatizing tat happen but i've never seen trauma like i've seen women who are veterans who have suffered military sexual trauma reporting rape is more likely to get the victim punished don't be offended by hand and almost 10 year career or chose very invested in and i gave the sex offender who was not even put to justice or put on the registry this is simply an issue of tower and violence male sexual predators for the large part of target whoever is there to prey upon whether that's a man or woman. the world is driven by shaped by one person with those words.

thinks. we dare to ask. i'm. going to. welcome back to the kaiser report imax kaiser time now to go to jason williams he's a co-founder and partner at morgan creek digital jason welcome to the kaiser report hello hello great to have you on now we want to get john for one thing that's going on here is they have an ng it's expected a round of may 11th in the big coin having. to explain briefly what

that is for folks and have has it been priced in yet so the having is a important event in the big corn world where the allocation of bitcoin gets cut in half it's a devastating event for miners and that they have to have their businesses right or they will essentially go out of business so what you're seeing right now is as an exciting moment a little bit of foam oh people are buying into this event my opinion is so we're going to have a sell the news and probably have a minor capitulation going into the having which causes the price to go down so pressure. but amazing event happens every 4 years and this is the coins olympics yeah a bit coins olympics you know you mention mining there and you got into big coin really mining and doing a lot of mining and we can talk live with more about that but to kind of broad now

a little bit so. i just saw a number basically that miners span or were rewarded last year i don't know how many billions of dollars but this was this was positioned as this is the cost to secure the network mining secures the network explain what that means yes so the hash rate that that's contributing to mining bitcoin it costs money. so you have to purchase power. put that power through computers those computers cost money and that money those assets that contribution of that hash rate all securest what is the block chain a bit coin and secures those transactions you're able to for people like me who are investors a big point arrive at a base price for big corning if you can start to look at the amount of cash rate that's contributed to the network. and most of us feel like here in north america

the floor for mining big coin is around $55800.00 box if you're in kazakhstan or iceland could be lower some of the miners like genesis minor may even have lower base prices but you're able to start to contemplate what the floor is on this thing where really brings the pain for miners if the price drops sounds like any other type of mining gold mining so mining coal mining there's a cost to it and if you're profits downtick say the cost 10 years ago not a business you know this is interesting because a lot of people say because it's backed by nothing well if that you know i now feel that money is backed by nothing and the cost of creating a trillion dollars a fee at by clicking on a computer and adding some zeros i know that is generally nothing but in the big claim area actually there is a cost it is backed by something explain yeah i mean it's backed by the cost of the computer so back when i started mining the theory i'm in bitcoin we're building g p

u's buying a 6 miners those miners back in s. 9 would cost you about $2800.00 box back in 2016 and you know you'd have to put together thousands of these computers to to put together in a network get on a mining coal and you start taking 2800 times a 1000 you can do the math. there's your hardware contribution then each of these computers takes about $1250.00 watts of power times a 1000 now you're buying nearly half a mega water a megawatt of power to run these things that cost money you get power bills at your home so take that power bill multiply it by a 1000 and it's a real op ex and cap ex cost that would fit in that business people are investing in the bitcoin network it is backed by real money real investments real power

and that's why this thing is not like our feet dead money that we're dealing with today so in the gold mining business as i dig deeper and deeper and deeper my costs go up so the value of that scarce resource which i have to go get because and then go deeper to get it goes up because people want it it's hard money i guess similarly with bitcoin mining even though the reward after having is cut in half it goes from 12 and a half to 6 the quarter bt say. the the the hope of course is that the value per bitcoin goes up because if in fact that having happens and if the hash rate goes up it's because it's becoming more scarce it's becoming harder money and in a world flooded with money there's going to be a demand for hard money but you describe this as to very tricky for miners a massive get things very right or they could we could see some miners go offline

and some describe what you mean by that yeah max you know there are miners that are going to hit the wall come may 12th when the having a curse because their technology can't keep up with the difficulty that's occurring so right now there's some portion some percentage of miners that are running ass nines or some technology that's similar to the. and those miners contribute about 13.5 terra hash for 2nd so the network the next generation s. seventeen's that have been released by the basics producers contribute 58 terra hash for 2nd so you've almost got this exponential efficiency through chip set technology advancements that's come into the so the market miners who are in this game the long hands the people with low time preference they've already switched out the old miners and put in the new technology so they're prepared for the future

the next 4 years of mining those that didn't have the resources for capital constraint had been selling their decline to keep up with the depressed price and haven't made the cap ex expense to put in the new technology there don totally don come may 12th the when the having a curse because they're going to be not able to mine any decline and they still have the op ex expenses of our the hardware replacement so this these computers are scrap max they're scrap it and now you mention the difficulty so let's talk about that a little bit so the having is one layer of the big coin protocol stack another layer in that stack would be the difficulty adjustment so every 2 weeks that the protocol essentially surveys what's happening out there and will either increase or decrease the difficulty at which it's to find a block and

a block happens every 10 minutes and the rewards or pay out every 10 minutes and the monetary policy because it has to issue because every single 10 minutes but that difficulty adjustment or the way you're describing it if there is a lot of mine or something go offline and hash rate drops then when we see a difficulty adjustment way. with essentially a just for that and it's a a lowering in the adjustment and the network would maintain the genius of this protocol that the that the 10 minute block time when would continue unabated right you have actually described it beautifully in the genius that is the toshi nakamoto or whomever that group of people is that represents that idea they've built the system to incentivize miners so as difficulty increases it's more competitive

for us to be awarded bitcoin with mining contribution but if there was a vent and event where miners came off line and there was less hash rate that difficulty follows that to incentivize people to come back online or to stay online because they're getting more of a share of the big reward every 10 minutes it's an amazing monetary policy that's algorithmically driven without a fed without gero how without these these as you would call him a collector kratz and all this crony capitalism i mean i wish we had more time to talk about p.p.p. and all the rest of it because i've just seen my friends my family our small businesses be absolutely decimated by putting me in a basement right now wish we had a lot of time to talk about it maybe we'll do something on the podcast but let's talk further about this difficulty so the adjustment occurs in

a way that would override any notion of a mining death spiral so this was a over the 1st few years of big coins life there were big coin advocates or personalities who would say you know and mistakenly claim that a big coin death spiral would occur because once the has for a start to go down and the profitability of mining goes down. it's a cascade effect as you might see in the banking system for example of one bank goes down it takes a lot of banks down but what we've discovered really several years into the project right this was an obvious day one it was only obvious several years later again to the genius of the toshi here that if in fact a lot of miners go off line the protocol somehow figures out the sweet spot to get greedy miners to commit capital to go try to make big point right it isn't that

how capitalism and free markets work if there's an opportunity to put money to work and make a return on that investment smart business people do that all day right max right so and the goal of the miner is to get the reward so they've got to solve the hash and that means you add a block onto that onto the chain which has all the transactions of the last 10 minutes they're verified by the. the minor gets to add to the block at the get the reward and they have the software that has and just in a way all it took to describe how this works and also so that so it's that the solving of the hash it's a brute force. calculation barrage you know trillions and trillions as you point out i think that has right now is in the quintillions hundreds of can tell you answer thousands of quintillions but those are gases they're guessing at the solution that's being put forward by the protocol and that hash rate

if the price keeps going up in the ashtray keeps going up and the nonce which is that number of that they're chasing continues to get smaller. is it's interesting because the hardest money in the world is produced by chasing an ever smaller fraction of a number jason. max one would think that the price goes up in that scenario as bitcoin as more hash rate continues to be added to the network as the difficulty continues to rise as the reward continues to shrink you get the supply and demand shock that's constantly hitting the network the price has to go up you know this is math not my opinion right on all right well thanks so much for being on the kaiser porches and why it's of morgan creek digital my pleasure and that's going to do it

for this edition of the kaiser report with me max kaiser his stay severed like to thank our guest jason williams as i said he's over there morgan creek does it all if you want to catch us at twitter it's tweet us a kaiser report intellects not bio. he said to add to that he said you need for good in each other than the men for us who want to. make it on the butter's are going to die quickly dismiss all that business and just. consider. the emotional learning t.m. must do i feel stuart is stuck with the muscles from the course for me which misses jim but i'm sure he's just woken up if you go chill the church.

muffle several think a book is history confession that. we think you might be a soviet soldier to piss off the boot she's wearing. your church so much to me so look folks can move or oppose will appeal more than the book and then you'll like it i'll be sure stuck it in with some russian police force to bust hold. my ground. and i thought i was. part of the way or. the

fall. because it's not that i am somehow i know yeah i. asked john asked how i found it all something tom tom are not used to and it's easy to see a tough spot. border and when you come from i was this teaching at us and i had come to this fighting's well because our number. are known or operation that's destroying my home so it's destroying. this mountain top removal mining. this is.