the kaiser report you know there seems to be a bit of panic in the air. point let's check in with stacy herbert i don't more max as you know we've had 4 years of a lot of political turmoil and starting to spill out into the streets everywhere you look not only in the united states but around the world and rand corporation might have an explanation for this now remember rand corporation if you're if you're around in the seventy's they were part of the pentagon papers right it was identical ellsberg released the hundreds of pages of research they had done on the debacle that was the vietnam war and now they have basically done some research on the debacle that is fed policy of creating can tell you nair's since 1971 so the top one percent of americans have taken 50 trillion dollars from the bottom 90 percent and that's made the us less secure this is according to time magazine's interpretation of the rand corporation findings that breaks it down to actual numbers everybody has been talking about how inequality is increasing but they look

at the actual data and say actually this is how much it is is 50 trillion dollars now since 1974 right after we went off the gold standard right well there's an explanation of this using financial engineering and you can get into the minutia of that but just imagine that there's a pipe that leads from the reservoir to the town and you've got a bunch of bankers to figure out how to take that pipe and direct it into their pockets and it never reaches town so this is the problem of the reservoir being fed policy the pipe being. the economic policy and fiscal policy and the takeover by the economy by financialization wall street commodification and derivatives through salt is just that the money is divert it through financial engineering through 0 percent interest rates is negative interest

rates through repo scandals through all the financial scandals the recovery on the show for 10 years every single one of those points to one underlying story in fact that wall street financial engineers the kleptocrats divert the money printing into their pockets at a rate that according to the rand corporation equals more than 50 trillion dollars so that is your smoking gun that's why we have social unrest that's why we have incredible wealth and income gap that's why we have such a distorted economy that's why wages are not keeping up that's why we've got inflation raging that's your smoking gun end of story thank you it's been great have a great life no kidding as i said the rand corporation had revealed through daniel ellsberg the the sacrifice of all the young people that the then you know boomers were being sacrificed in the vietnam war for a point for no reason and the same here is basically their data showing that

generation z. and the younger malani ells have also been sacrificed to this you know this this war on wealth that can't be won and here's what they say about the actual data so remember this when you see people this conflicts going on right now between boomers and you know they're the winners of the situation and they call people deplorable for wanting to make america great again the data 9 actually shows that america was great before it was better for a certain class of people i.e. the bottom 99 percent it wasn't as great for the top one percent back then this is not some back of the napkin approximation according to a groundbreaking. new working paper by carcassi price catherine edwards of the rand corporation had a more equitable income distributions of the 3 decades following world war 2945 through 1974 really held steady the aggregate annual income of americans earning below the 90th percentile would have been $2.00 trillion dollars higher in the year 2018 alone this is an amount equal to nearly 12 percent of g.d.p.

enough to more than double median income enough to pay every single american in the bottom 90 s. miles an additional $1144.00 a month every month every single year see the genius of the scam perpetrated by wall street and the likes of warren buffett and the people over a black rock and all the private equity firms and j.p. morgan and jamie diamond and all the global banks is that they take advantage of compound interest in a way that makes them multi 100 billionaires because it doesn't take much in terms of a percentage increase to realize extraordinary gains the difference between compound in their money at let's say point 01 percent which is available to the vast majority of those who are not friends of goldman sachs and compound your money at 20 percent as warren buffett does or 22 percent is the difference between having let's say a few $100000000000.00 or a few $100000000.00 or even

a few $1000000.00 here name and having as in the case of jeff bezos that over $200000000000.00 that's it's a small percentage gain but over 1020 years you know it's the old analogy if you start off crossing the ocean if you set your compass even one degree difference you'll end up in a very very very different place that's the magic of compound interest and it's subtle and it's insidious and most people don't see it but they do see their property and now we've got the smoking gun the 50 trillion dollars was stolen from him that's it that's using all the techniques have been talked about here for 10 years this is now the conclusion this is the ultimate cause. report stat this is now everyone may say or in those who have questioned our approach they can accept your apologies if i accept them i guess you might say we're kind of leaking this rand report where the daniel ellsberg of the financial world because nobody else is reporting on the 2nd this isn't on line and time magazine but we're

reporting it on the news to explain the situation we coined that phrase cantillon air we being max in that phrase can tell you there and this kind of explains it i also want to point out that you know america you speak way back in the seventy's we had this thing called the mimeograph and you know it was very reliable was messy and dirty but it was reliable no matter what like you get in call over you but you could make a copy of a piece of paper here like with all these high tech gadgets we now have half the time they don't work so my printer i could not get to work that's why i have my laptop here. unlike usual times but i'm just saying like america used to have great movie you know graphs very back the movie a graph but you know with that i have something else to say about this is that what they're saying when they look at the data from. people back in the seventy's and compared to today is even when they're looking at the bottom percentiles they're

you know comparing the wages is they're actually working more hours they're not even counting that they're just counting though they're over always in the year so their wages the situation is actually worse than the 50 trillion if you count the fact that they're actually having to spend more time working how we would pour it on this without the benefit of the rand corporation's multitude of analysts crunching the numbers is by looking at some very obvious anomalies for example all companies buying back their own stock like apple something that used to be illegal up and told the reagan years be province reasons it's immoral it's unethical and it's just wildly distorting we simply ok here's a valid. 2 trillion dollar company their stock has flown has shrunk they've bought back their own stock multiply this time certain number of s. and p. 500 there's a few trillion right there of that 50 trillion that's been stolen. the lehman brothers repo scandal repo 105 or 4 or 5 where they were playing whack

a mole with regulators in terms of how they were reporting their earnings that was good for a few $1000000000.00 ok we can say pretty with a great deal certainly that this is the practice used by the multitude of s. and p. $500.00 companies there's another couple of trillion dollars so all these scams individual either all worth to a trillion or 2 and only animal up here end up with 50 trillion dollars so this number i think is pretty closely to what we've been reporting on for the last 10 years because every single one of these scams from wall street corporate america the s. and p. $500.00 all the big 4 accounting firms what a joke and here i work at a big 4 accounting firm but i didn't see 50 trillion dollars go out the door missing how could that have happened how could that happen big 4 accounting firms. oh oh yes all right well if the actual system itself and rand corporation is part of that system in the system as a fee based system then the fed can print money only for bankers and they hand the money to bankers on this and it doesn't trickle down that's the problem with this

system it creates cantillon errors and can tell us come at the expense of everybody else and so as the can till you know start to compete against each other for how many can tell us they have you know they have to take it from the bottom that doesn't ever trickle down and also you have a system but the rest of the system you have an i.r.s. that only prosecutes and goes after people are running under $100000.00 a year because they said just this year that they said they can't go after people who have too much money because their they have better lawyers so it's not worth it for them they don't get anything back so like everything everything the whole entire fabric of our economy and our financial system our fiscal system our government system our central banking system are all rigged against the bottom 99 percent and here it is rigged in favor of the one percent and i'm going to show you another headline that's been happening and this deal this detail was came out of a september 8th filing from the fed so unsanitized the fed is overpaying banks and hedge funds for corporate bonds so the fed was authorized by congress as you know

just recently the main street lending program to lend to small and medium sized enterprises throughout this code to keep them in business right 99.8 percent of the funding is left on tapped at this point and why well because the fed can deal with stinky peasants that right they only deal with the banks and the banks therefore have to issue these loans they have to dispense these loans so the banks do take on a very very very tiny risk but for the present that's just way too much like small medium sized enterprises and this sort of a con amee not going to survive right so the banks don't even want to take a one percent risk even though they'll be paid back eventually no matter what they could always dump their toxic debts and bad. as for the fed they won't they won't lend it so therefore the main street lending program is not being used because nobody wants to help the ordinary person because they know as the rulers of the system that there is no chance ever for these companies to survive or for this to

get better without it being resolved in another way by the generations e a millennial is taking back control so americans for financial reform ferreted out this information in a criminally understood discussed revelation the fed reports its corporate bond purchases and loans under the carer's act to congress the most recent one came out september 8th if you go to the trade level data for bond purchases you see this very clearly there's a par value a market rate for the bond purchases the fed is making it is paying more than par with virtually every purchase. of the marble and jewel people bonds at 109.9 percent a bought columbia pipeline group at 116.7 percent it bought principal financial group at 112 percent all but a very few hundreds of purchases totaling tens of billions of dollars are made above par on average the price is 107 percent so yeah the money for it to go better

they just throw money at there and demand nothing in return and that the main street lending program which is funded by the congress they won't lend it out because they can they're not sure if these joe baca donuts with his little coffee shop is really worth investing in right the only time you see. buyers purchasing items above market price is with. in a mafia scam to launder money you know to discuss the this is money laundering yes essentially the it's a classic money laundering it conforms to the basics of money laundering if and in a court of law this went to jury they would be convicted for money laundering and i quickly i know we're running over time but i do want to say that critically the fed isn't buying these bonds directly but on the 2nd do. markets so when they overpay they're lining the pockets of the investors in corporate bonds like hedge funds and institutional investors like pimco big banks who handle transactions as the primary dealers and corporate bonds also make out blackrock the asset manager giant that

manages these purchases on the behalf of the fed is likely getting a taste of centrally every while wall street is getting rich from the fed over paying for bonds right it's one of you know again we've been saying it and it resulted in 50 trillion dollars of missing money ok take a break and when we come back much more coming your way. or the road blocks or head. for part of the world if you will so. that our view. of it is that if you use. your service to the letter to the. consumer i'm going to. put them in a few years you know not. home. since we. need. to be the only.

conditions in. the new system run to. so what we've got to do is identify the threats that we have it's crazy confrontation let it be an arms race off and spearing dramatic development the only posts really going to exist i don't see how that strategy will be successful very. time to sit down and talk.

welcome back to the kaiser report i'm max keyser time now to turn to part 2 of our interview with michael saylor he's the c.e.o. of micro strategy a racially swap 425000000 dollars dirty feet money for what is it 38250 bitcoin michael welcome back thanks max set a follow up on the sol discussion of inflation and what you do with a big cash position and the possibility of gold as an alternative you said that because it is harder than gold you know when you think about. gold you realize they're going to they're going to meant 2 percent more of it or mine 2 percent more of it under the status quo if the price of gold goes up the miners are going to make out on vestments expand their capacity and mine more if the price

goes way up the expand their capacity to keep money when the price goes down they've got to count on vestment locked irrational and keep mining so you under the best case you're looking at 2 to 3 percent inflation of gold if you look out over 100 years that means you start with $100000000.00 worth of gold and when with 121212 $1000000.00 worth of gold so you don't lose 90 percent of your value in gold over 100 years and if you factor in counter party risk the fact that the bank might fail or the government might seize the gold both of which of happened over the last 100 years the best case is you lose 90 percent of your wealth and gold and the worst case is you lose it all and so gold is in and early inflationary coins fully diluted bitcoin counts 21000000 which means that once you understand that you don't lose in anything and and there's nothing else like it so you know my analogy would be if you had a $100000000.00 and you wanted to wanted to go

a 100 years and you put theocracy. best case is you lose 99 percent of your money and worst case is you put your money in a country in a bank that fails and you lose it all and it's likely you point lost it all if you had your money in germany or japan or france 100 years ago if you put your $100000000.00 into gold you can lose 90 percent of it best case maybe lose 95 percent or all of the worst case. you put your money in decline you're not losing your money it's like crossing the atlantic in a rubber raft with a leak in it that's fear not crossing the atlantic in a wooden ship that's gold or across the atlantic in a steel hold container ship that's because it's pretty obvious what you would do if you had a choice the best case scenario your listen 2 percent purchasing power with gold as it is and you have the possible or tail risk that huge gold is found or asteroid as founder ocean gold mining is discovered and there is a you know risk on the outside with bitcoin why not take that purchasing power

istana 0 effectively is what you're saying and so it's harder in that sense then gold now you know you said recently on anthony papa be honest pot podcast the pop cast our good friend over there that you mentioned the toxic big cooling community actually helped you get on the big coin can you talk about this a little bit i think there's always giving you suggestions of you know they'll send me articles they'll send me any insights if i mention anything though and they'll lead you to a better answer a better insight into the security of the network into the into the technology of the network you know i think that if you look at the big client community it's a bunch of a bunch of people all joined together with a common goal which is to create something that's lasting you know.

immortal sovereign. is value in order to achieve what it is you want to achieve with your life whatever your values are if you look at the traditional media. you know they they tend to be just as negative as they are causative and since everyone has has divergent values and diversion portfolios they're not really working together to accomplish i think constructive as much as they're shredding each other or tearing each other down much of the time there is a free song that counsels competition and it's they survival of the fittest it's darwinian it's a everyone trying everything and seeing which one works that on that score you recently tweeted the chart about bitcoin dominance being at 93 percent not what commonly is quoted as the 62 or 63 percent because you're saying look we got to strip out everything but the proof of war coins these other projects are crypto applications they're not the same ballpark you also mentioned a network

a fact and play for pick calling where it's once a cheat 100000000000 dollar value ation or more it is cheese escape velocity if you're well and it's the winner and as a runaway freight train at that point south year you did look at these other coins including a ferry m. and the conclusion was now it's kind of silly to say the big corn is only 60 percent of the market because you're throwing in like like feel tokens like heather or serco that's kind of like saying apple computer is only 5 percent of the market because there's hundreds of billions of dollars worth of cash and bonds floating around or is just as silly as saying that air b.n. b. is 4 percent of the mobile network market because google and facebook and amazon and apple have mobile apps right i mean and at the end of the day a theory on this is a different type of application if you could not work on crypto. and it's totally

unsuitable as a store of value you want to proof you want your network were committed to proof of work so if you look at some that were committed to proof of work it's because i'm declaring cash decor naseby and of course the 1st one's 50 times better bigger than the 2nd one was you know why would you even consider going to something which is 2 percent or one percent of the size of the dominant player and it's more confusing anything else a tether puts $100000000000.00 of kether coin on a network that's not going to have any impact on the dominance of bitcoin one where the other it's transcendental thing about it is this community but i've been in this community now for almost 10 years you're the 1st actual all c.e.o. with the whole boardroom full of lawyers and board members to do a lot of due diligence and take all these considerations on board do the analysis

crunch the numbers and come up to this conclusion you know this is the professionalization suddenly of this industry just became real and i think we're going to see a lot of the marginal projects kind of fade away to 0 let me ask you a question purely as a data geek which i sounds like you are being in the data business day pass rate of decline is over 150 quintillion calculations per 2nd when you look at that number does it kind of what does it do to your brain is it because it's the biggest fastest meanest network ever. put out the perspective i went to the beach see dot com security page and it showed how the difficulty adjustment gone out from one to 17.3 trillion or something and it showed the hash re going to 13540 x. a half whatever i thought it was such

a thing of beauty i had to stop myself from tweeting to everybody isn't this the most beautiful table you've ever seed in your entire life i thought they'd think i'm crazy but you know what i look at it what i think is maybe if we're marketers we would stop calling it difficulty adjustment and we would just call security and x. and we would say that it's 17 trillion times more secure than it was when we started and we might divide that security index into the other competing now orcs and people would realize that this thing as a 1000000 times more secure than the other thing and that that's just extraordinary and that's what makes this buy that's that's why i think the crypt the big point community is anti-fragile the miners are making such of a g. and vestments all the time to make the network better stronger and faster it's just a wall of it's not a wall of electricity it's a wall of encrypted electricity because you're running the electricity through the

s h a 256 algorithm and the fact that it's unique the a 6 year neat the algorithm is unique the electricity is monstrous those 3 things together creating ensor man nearly insurmountable not insurmountable wall for anybody that might want to screw it that i love that it's beautiful so gold is roughly a 8 or 9 trillion dollars market cap because having around the $200000000000.00 while there will we see a parity between these 2 and if it's harder than galled will way it will of exceed parity you know max i thought of buying about spending half my cash. golden half my cash in bitcoin and then i thought that's credible foolish trade because bitcoin is going to eat gold as a store of value technology is acid you know and then surely if you can deem materialize gold into virtual gold which is what they point is all of the energy in

the physical gold is going to drain into the virtual gold would be like go will be like black berry was to apple computer you know and we used to use it people talked about it and you can't find many words of people's drawers anymore everything you're saying being in this community in my software 9 years that echoes so much of that work and you mention a safe dana misses book the bitcoin standard you've been talking about it you read it it had an impact on you we've done safety in for 15 years and when the book came out i was gobsmacked this is like the rosetta stone of this whole industry it just is so perfect and but if in fact a year or wave of thinking goes into the c.e.o. suites around the world that right there is an awful lot of demand for a bit coy now also you've tweeted recently and i kind of what you were just saying there about the beauty of the technology and the aesthetic of it which i think is

under rated and not talked about enough but you also mentioned and we have about a minute or so you mentioned. and i'm not going to a tongue in cheek oh what have you but it was you mentioned about the this project being alive to some degree. is that pure metaphorical or is that just. an appreciation. it's like i cyber ice a swarm of cyber hornets and serving the goddess of wisdom you know fired up by truth and getting getting ever stronger harder and. aster and i wasn't being metaphorical i mean i could talk about it for hours we don't have hours the point is it's not just harder than gold because it's never going to debase is harder than gold because people keep improving the protocol improving the mining rigs they keep making it harder and better and faster and stronger every day

rolls not doing that and most other software doesn't do that it is truly anti-fragile all right michael saylor thanks for being on the kaiser park thanks for having me max that's going to do it for this edition of the kaiser apart what may max kaiser and state share but i think our guest michael saylor of micro strategy until next time by 0. 000-0000. canas calendar is dark alfonzo and long. and there's changing to a change dart served. his 1st words were had a lot of us here a challenging post you've got 2 years to live. i

have no doubt that what happened was criminal. offense concentrated market is a $1000000000.00 industry these companies have huge financial motivations to solve these problems there are numerous stocks showing that doctors were keen to test facts or a concentrate straight insights of its own that patients want gives them doctors the wrong wants to quite long term system and why they would keep me from secure those who stay. on people still die i don't always question or so i tried being allowed to live so many have.

we are segregated only by social class lower middle class people also in poverty 1st. if you're born into a poor family ah if you're born into a minority family if you're born into a family that only has a single parent that really constrains your life chances people die on average 15 years old if you're born into generational poverty. it's

a tough fight every day so you meet your needs and the needs of your family. the top stories the 26 people were killed as a military plane crashes near a motorway needs to me crying survivor is in a critical condition inconsistency discrepancies moscow notes the alleged poisoning of addicts in the boundaries bordering on fiction as good a new system it's a nerve agent was used against the opposition leader also previously of the fuses a drug recording security video inside your home sparking surveillance but. it's absolutely let's see if someone. comes out 2 years later. listening to every word that you said medical terrorism that's high.