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tv   [untitled]    November 23, 2013 9:00pm-9:31pm EST

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breaking news according to the head of the e.u. delegation on a deal to deal on iran's nuclear program has been reached so far there's no there's been no official word on the outcome of the negotiations but an announcement is expected soon. in march of remember and as anti-fascist activists take to the streets of germany protesting against the growing popularity of nazi views in the country. americal says she wants to have a word with vladimir putin over ukraine that's after the e.u. and russia accuse each other meddling in the country's foreign policy to ensure its cooperation. and the olympic torch is on another leg of its epic journey to softly plunging to the bottom of the deepest lake on earth after
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conquering open space. we'll be keeping a close eye on any developments at the you're wrong iran talks where according to the e.u. delegation a deal has been reached in the meantime now it's max kaiser picking apart radical new plans in amsterdam to get alcoholics back to work that's in the kaiser report right now. welcome to the kaiser report i-max kaiser you may have heard that amsterdam has begun paying alcoholics and cans of beer that's right and exchange for a five cans of beer a pack of tobacco and ten euros the alcoholics clean parks the streets the city's aim is to keep the drunks occupied so that they can no longer cause trouble in the
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parks and indeed one of these alcoholic park workers said that the structure has kept him out of trouble but that if it weren't for the beer he wouldn't bother showing up at all i know you're thinking you're thinking that this sounds a whole lot like the policy of quantitative easing and you'd be right by central banks keep the debt a whole it's being at least spending by giving them a seemingly free lunch of low interest rate credit crack. one could think of q e as meals on wheels for over leveraged consumer holiday debt addicks of course feeding the addiction merely hastens the addicks demise but alas it keeps the addict doll sile in the meantime is not correct. trying to keep us dead aholic south here dos cyle of course with all this quantitative easing it apparently free money that's the important thing they feel like we're getting a free lunch so we stay quiet we keep consuming or keep consuming debt at least now here's the first headline about quantitative easing what car salesman ben bernanke
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he said at dinner last night so this is simon black of sovereign man and he was at a dinner with the national economy club and ben bernanke was the guest of honor he said at one point during the evening when pressed about whether his quantitative easing program was good for wall street at the expense of main street he being ben bernanke he flat out denied it saying that such a premise is simply not true he defended his printing eighty five billion dollars per month suggesting that fixing interest rates as zero is beneficial for society because among other things it allows people to buy cars right well and allows people to go into debt into ever deeper debt and it's funny because this idea of giving out all of them for them is beer to keep them docile and keep them cleaning up the park clean up their their open air prison it reminds me of wal-mart and mcdonald's it was reported this past week that they themselves are out there giving
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the equivalent of a couple of beers to their employees to have him come into the store and perform menial label labor and slave labor so this amsterdam model is being picked up by the likes of wal-mart amsterdam the people that work at those companies they don't have enough salary to maintain a living wage there are probably homeless a lot of them live in the parking lots outside of wal-mart mcdonald's they don't actually can't afford homes and so i. what you're talking about is that wal-mart they're asking customers to donate food for their employees and at mcdonald's they issued a notice for employees to how to keep yourself from feeling hungry by chopping up your food in little or bits and spreading it out over today exactly how is that different than just giving drunks beer to shut them up and of course the americans are quiet about it they don't mind being treated like a drunk in the park they love it so there we have it is that ben bernanke he confessed that what he wants was there are races to encourage the addicts to buy a car with using debt remember the car loans in america they're stretching out up
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to ten years now it's like longer longer used to be like two or three years the mortgage on your car would be now it's like five six seven years so it's a rapidly depreciating assets not even something that was a wise investment but there's also on the high end we're seeing record amounts of margin debt on the new york stock exchange and this is a chart from bloomberg and it's the margin debt for a new york stock exchange member firms and you see the three peaks there this is the image that tells a thousand words two thousand two thousand and seven and today as you see record margin debt when you buy a car america you are it's just like money printing in america you increase america's debt load when you're buying stocks in america you increase america's debt load when ben bernanke you keep interest rates at zero percent is helping to increase america's debt load until such time as the debt bubble pops everyone who issued the debt the bankers include bernanke get a fee on the size of debt issued they don't make money based on profits and losses
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they make money based on the size of the debt they issue so in a car is a debt issue a quantitative easing is debt issue getting a job of donald put yourself into debt that gives fees to the bankers it destroys the economy it destroys society it destroys everything but the fees for the bankers and so we're just seeing it getting more entrenched in the global psyche because now economies around the. the e.c.b. the bank of england bank of japan of course got this whole ball rolling they've adopted this model of turning everyone into an open air prison like gaza so this is the gaza model being written large and i've told the palestinian monetary authority they should adopt bitcoin to try to fight this but haven't gotten any word back yet and by the way you know relating this to addiction as you see with those debt peaks what happens is the debt addict passes out they collapse into crashes these market
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crashes so we're at the point where we're at a higher peak than the one in two thousand and seven and higher still than the one in two thousand so again is it going. we did just like the drunks in the park probably eventually fall over after the six or seven fear right in other words when the whole system crashed in two thousand and eight the conclusion was we need better mathematical models to convince people that banks should get into deeper debt collusion wasn't that we need to reform banks so that we don't have another crash there will be another crash it'll be much worse than the two thousand and eight crash just like two thousand and eight was worse than the three or four previous crashes they'll be an incredible economic duress and they'll be an incredible confiscation of wealth as usual and the cycle repeats itself i was going to say you know as well likening this to addiction this is like with the quantitative easing program and what they're trying to do with increasing new radical programs negative deposit rates things like this is the new beer that they
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want to the alcoholic beverages they want to concoct that won't give you a hangover so you don't ever there is no lesson ever learned there's nothing to keep you from ever feeding the addiction well in the u.k. there's a big argument about whether to lower or higher the price of beer or alcohol as a way to try to manage the fact that quantitative easing m.r. carney is treating the people in the in the population of the u.k. like opening prisoners and then they're on their policies not just monetary policy or to try to adjust the economy in ways that are not blatantly ripping people off they only trigger the only valve the only fulcrum upon which this economy rests in the u.k. is the price of alcohol because they know that britain's run on alcohol more so than any other society in the world in the us is gasoline because it's everyone's driving around going out west going to west driving around route sixty six gas but him and here in the u.k. it's alcohol that's it feels the economy and again here is the quantitative easing being fed to the markets and you know it's like the guy in amsterdam said he would
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not work if it were not for the beer here people will not shop they will not consume. if it weren't for the free money five years of q.e. and the distributional effects here's a chart of luxury retailers versus middle class retailers the luxury ones being tiffany coachella the mh and that is the burgundy kind of brown line and the blue line is macy's kohl's and j.c. penney as you see they moved in lockstep from two thousand and three up until two thousand and nine that vertical line is exactly when q.e. started and what do you notice oh the luxury retailers soar away from the middle class retailers so who is that benefit and who is this debt benefiting quantitative easing is a program of debt irrigation or money printing irrigation where it's a new way for bankers to direct the printing of their cash into the pockets of people who shop at tiffany's and you see that the tiffany's shoppers are getting the money basically deposited directly into their accounts without having to go
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through the economy where it might trigger wage inflation so wages are depressing while tiffany shoppers are getting more free money to go shop or tiffany's or by francis bacon triptych four hundred forty million dollars or andy warhol to train for one hundred million dollars that's the new financial irrigation financial engineering that is quantitative easing that's to financial innovation is that they figured out a way to keep people's wages from inflating while they inflate the value of their ill gotten artworks and now that chart west from j.p. morgan and what they said that this is showing what the chart shows is that there are debates about whether is zero percent cost of money helps anything except financial asset prices all we know is that the fed has a story to tell i.e. cheap money is good and they are sticking to it more like sticking it to us. people are getting stuck that the quantitative easing is keeping wages low it's
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a program of financial repression wage growth is below inflation by design is financial repression or for an actual zero pression it's an actual economic term. and it's it's what i call financial terrorism and the reason i call it that is because it's creating a jihad in the economies around the world from people rising up against their terrorist overlords well i don't see any sort of rising up people are willing to spend as we see with this headline here that is housing loans soared by thirty seven percent in one year mortgage lending is back with a view the evening standard is saying and the addicts are being fed and they're taking it the last month totals the first time seventeen billion pounds has been breached since october two thousand and eight when the british financial systems near death experience condemned the home loan sector to a deep freeze so now they're celebrating it the fact that like the addict hitting bottom near death experience that we saw in two thousand and eight from too much
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debt consumption they're like celebrating like we're back to that same point again we were hello step away from your debt addiction the zombies got a big debt transfusion and they're celebrating before they have to be shoveled back into their coffins again you know after the n.h.s. has privatized this country taken over by hedge funds after co-op bank was was was unceremoniously murdered by hedge funds they will go after these people in the prison business and privatized the u.k. prison industry and people who are too in debt to pay their mortgage when it collapses and twelve months or so they'll just turn their house in doing a prison and be run by an american managed fund or like manchester united run by americans well there are some people who chose not to be addicted to debt and those are people who will not take the debt drug that the government and the central banks are feeding us to keep us quiet in the park they feeding us the beer to stay so quiet doe silent obedient in easy to control some people are not obedient well
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what happens to them they buy gold they buy silver and now they buy bitcoin as well furious gold slam down leads to yet. another twenty second gold market halt what do the following dates have in common september twelfth october eleventh and now november twentieth these are all days in which there was a forced gold slam down so furious a trigger to stop logic event on the c.m.e. resulting in a trading halt of the precious commodity and today's case gold trading was halted for a whopping twenty seconds as the market tried to reliquefy itself following what was a clear attempt to reprice the gold and silver complex lower needless to say it was absolutely no news driving the event right as i said jim years ago a year ago six months ago if you have a gold of silver portfolio the manipulation risk with bitcoin and so people who took my advice they're having record profits in their portfolios this year gold silver but going like that last year like a half of past twelve years yeah but this thing is what they're saying is the stop
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logic event as a banging open and happened here in the u.k. this is from the london open and it was two thousand contracts slamming the market at the open the day after the f.s.a. the financial services authority said they were going to investigate such manipulation they're saying where control of the market you guys are not dead attics you're trying to protect yourself we're going to slam you the only one that's outside that manipulation as you say is bitcoin yeah it's gold is clearly being manipulated and bitcoin is the only way to get around it so we've got a go go go. ok we'll have a good interview with barry silbert very sober in a second market talking about bitcoin states. again if we take up your personal example of the government topping your phones and you know you see them later on to be yours leader you know some governments cannot afford to do that. you know again some prominent journalism so again some has
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a state i remember thinking at the time and i discovered all this is that we're tapping my phone to this country in consequential. nation. demo spin tapping houses about telephones. back in the day barack obama was elected because he was deemed to be the very end to sis of george w. bush now instead of seeing differences between the two presidents we were reminded about what both have in common particularly flagging poll numbers for us on this program we ask is obama serving bush's fourth term. welcome back to the kaiser report imax keyser time now to go to new york city and speak with barry silbert founder of second market online marketplace for buying and
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selling illiquid assets such as restricted securities in public companies and on which he recently launched the bit coin investment trust barry welcome to the kaiser report thanks for having max all right barry silver tell us about the bitcoin investment trust the early adopter of bitcoin i got involved few years ago and what most people realise very quickly is that it is very very difficult to invest large dollar amounts of bitcoin if you got a wire body to a foreign exchanges you've got to deal with very volatile market and so what we did was we incubated a investment vehicle and really what it is is it's like a private spite or gold g.l.d. where it essentially is raising money on second market and will trade on second market and we handle all of the hard work of sourcing large amounts of bitcoin we had a look at the security the safe keeping it's audited by in wa and so the whole idea is to open up to court investing to a much greater broader group of investors all right so basically it's like an
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exchange traded fund which is based on bitcoin but it's not exactly an exchange traded fund because i believe it's only open to a credit investor so you avoid that regulatory hurdle correct right we were able to launch that about six months new p.c.'s could take years to get approved by the f.c.c. and at some point down the road it might make sense for this to be in the public market but for now it's only open to sophisticated individuals and institutions all right so as an asset class and i remember when we were in new york recently we were talking about this in your office and we were discussing how hedge funds have got to look at bitcoin as a master class because if they don't they might find themselves lagging their peers in six months or a year or so with the hedge funds coming into this i want to ask you so. since you've lost since you've launched the bitcoin investment trust has it now become an instrument for this hedge fund community berry not quite yet we're seeing three big groups of best years right now we're seeing tech entrepreneurs who are excited
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about decorum as a technology they can actually invest in the big investment trust via their iras now and so that's been exciting for for that group of investors the next group or family offices so what's interesting is we're starting to see family offices who have a very diversified investment strategy long term time horizon taking a piece of their gold allocation putting it into big coen and then the third group it's wall street professionals portfolio managers traders who are not yet investing for their clients or their lp money they're investing personally and i say i personally think that this is the precursor to the hedge fund money coming to the space all right o'berry if that's so and you've got these early adopters very smart money coming into bed going in a space which is now roughly let's say six billion dollars in size and the winklevoss twins who you also have a relationship with in terms of the local bitcoin and silicon alley community
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they're calling for this to possibly achieve market capitalization of four hundred billion which would make it on par with the largest of the stocks listed on the new york stock exchange like an exxon for example is that kind of the are you in the same camp do you think this is where we're going i think the outcome for because it is binary it's a highly risky investment right now it's either going to be a total loss of your principal or a fantastic return and actually on the website for the because investment trust it's because you trust a c.e.o. we actually outlined four different scenarios of upside for bitcoin if it was the size of western union if it was the size of pay pal it was the size of the monetary base of turkey and then the biggest one is five percent of gold and if you take five percent of gold. gold's about a seven trillion dollar asset class we're talking about you know returns of you know certainly you know well in excess of anything else out there now you mentioned comparison to gold and silver and this comes up often people consider this to be
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really the digital version of gold or for gold to be the analogue version of bitcoin it's funny barry i want to get your thought about this because a lot of folks in the gold and silver community that you know the libertarians for example they are slow to pick up on this thread where do you fall on this gold has thousands of years of experience of being a known trusted store a value that's never going to change i do think because potentially for a younger generation our generation's gold because it does have you know the store of value characteristics and attributes but it really is from an intrinsic perspective very valuable because this network this transaction network is going to change the way that people move money around the world is going to change the way that people think about money and from that perspective i think it actually has kind of the best of both worlds both you know money and story value right now barry silbert i saw a tweet this week and i really sparked a thought in me somebody was talking about bitcoin it terms of
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a the bitcoin race and kind of making it an analogy to going back to the nine hundred sixty s. if you we had the space race where sputnik from russia was out there and then suddenly america entered the space race and there is a scramble to get men in space the reason i bring this up with the reason this is interesting is because only from what i've seen recently something like two percent of the total volume around the world is u.s. based a lot of it's china base russia base it's all outside of america there is a bit of a bit coin race going on on the regulatory front it seems like the u.s. there is still kind of looking at this thing and trying to figure out what it is but the rest of the world is already going full bore ahead your thoughts i think that's one hundred percent accurate. you know as much before as one of the early adopters of because i mean i pretty active angel investor i've invested in about fifteen bitcoin companies and it's been interesting to see how the narrative has changed here in the u.s.
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from twelve months ago to six months ago to today twelve months ago because one was described as the silk road currency it was described as a tuna tulip bubble ponzi scheme and you had some early adopters using it embracing it but not many other other individuals then about six months ago the fence and department of treasury came out and said you know what bitcoin it's legal to use is legal to own but if you're going to operate as a money transmitter then you just need to register as such and at that point in time is when i saw the narrative start changing from this is a really bad thing to this is something that that could be good but could be bad today i think it's changing i think what's happening right now is the u.s. policymakers and regulators are realizing that companies are going to get created jobs are going to created and evasion is going to happen and i think here in the u.s. we would love to see that happen here and that we'd love to see it here and here in new york. right but clearly bitcoin is a competitive threat to an entrenched oleg aapl
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a big money center banks who love their huge fees and if i can move money around the world millions of dollars using big coin for pennies per transaction that's going to huge body blow to these money center banks so we understand they have a really a bias as to why they would want bitcoin because it's a threat to their business but nevertheless i'm looking at statistics such as bitcoin volume is now approaching daily volume of pay pal and that bitcoin volume is approaching something like fifty percent of the daily volume of money sent through western union these are norma's numbers can you speak about this barry oh yeah i mean clearly because it is very disruptive to a business like a western union or a pay pal trust me the banks will figure out a way to make money off of bitcoin and in our conversations with all the banks i think that there is some about what this could do there is certainly some concern
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about having to comply with rules and regulations around a c. but i think this is a global phenomenon and regardless of what the u.s. or u.s. banks think of big quine it's going to take off around the world and think ultimately the u.s. will fall behind if policymakers and regulators don't take a fairly kind of balance accommodative approach. now barry the big oil has come around at an interesting time in history it's come out at a roughly the same time as the edward snowden n.s.a. reveals at the same time that kim dotcom had a spectacular run in with the copyright cartel the m.p.a. his mansion in new zealand is quite a spectacular story and then big coin and all of these things have one common theme that theme being encryption now as you've stated you're a long time investor in the technology space you follow it quite clearly can you talk a little bit about how encryption itself is defining this currency why that's important
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and maybe why we see echoes of it in other parts of the culture that might validate big points existence barry i think the history of decline i would break into kind of five chapters and i think we're in chapter number three right now chapter number one was early hackers people playing around the technology didn't view because as a currency or a transaction network that was the first couple years chapter number two were early adopters or early entrepreneurs angel investors like me who got involved and got excited about everything we've talked about it's the end of the story value the encryption the privacy all of those things the next group which really started just this year is the venture capital community who understands that the future of technology is going to be peer to peer it's going to certainly rely upon an encryption technologies so we're in the middle of that v.c. chapter right now the next chapter which i think is two thousand and fourteen is the wall street chapter so this is one wall street starts investing money into big
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corn that because an infrastructure are you also looking at a couple of these other alternative cryptocurrency the one name that pops up a lot now is like calling what do you think barry i'm an investor in a ripple labs which is the company behind ripple but that's really more investments in the founding team and the technology less so the alternative currency. i'm personally not that excited about the alternative currencies because you have to remember the coin at its core is software it's a protocol so any new advancement any new tweak that other alternative currencies adopt which gets traction i think it's fair to say that they can evolve over time to to adopt that characteristic as well so i'm i'm personally very bullish an alternative currencies alternative all sort of currencies right now but it's still very very early i mean you could imagine a scenario like the various viet currencies today money flows in and out of these different.
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breaking news on r t world powers and iran have reached a historic nuclear deal and being a decade long deadlock over to ron's nuclear ambitions the breakthrough came on the fifth day of intense talks after the foreign ministers from all six negotiating world powers changed their schedules and rushed to geneva what artie's polly boyko there for us she joins us now on the line with the very latest polly do we know anything about the deal and what it took to finally reach it. i don't envy well the deal with three week catherine ashton and micro man and the now we are waiting to hear the final details or back agreement so far we know in fact a deal has been made and there if it should be a press conference in geneva promised to the nations nearby where the p five performed for unmentioned group be together with a monster and minister and then the foreign minister is going to go on to keep
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separate press conferences themselves to that so we're going to find out what the crux of the pilates you know we've encountered carol which in the media and throughout the night while the ministers have been trashing out these the talks which shrouded in such secrecy that are taking place. behind closed doors up until . just moments ago i absolutely knew that he knew what the potential outcome would be it was as much it was anybody's guess at that point it was several. talks of ministers talks and we convening starting off again. now that we know that the deal has been done we are yet to find out what the details of a top of the sticking points coming up to it not least whether or not the wording of these women would include public recognition of the violence right to uranium enrichment and until the last moment
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a major stumbling block was the iraqi heavy water facility in iran that could potentially produce weapons grade plutonium so as i said not only. going to be waiting to see what the details of going to be and we're going to come to you as soon as we have them. all right r.c.s. polly boyko reporting from geneva worry and landmark nuclear deal with iran has been reached we are waiting for the news conference that is going to be taking place to let us know more about the details of that deal we will bring that to you of course as soon as possible now political analyst and former m i five officer and amish on says that america was unable to confirm that iran was actually developing nuclear weapons. one of the things that's been forgotten during all this debate about whether they are whether they're not trying to develop a nuclear weapons capability is that the u.s. national intelligence estimate of two thousand and seven which was the combined
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thinking of all sixteen of their intelligence agencies said very clearly back then that in their view iran had stopped trying to develop a nuclear weapons capability in two thousand and three and this was written in two thousand and seven and actually stopped the rush to war in fact george w. bush said biography that it stopped its capacity to go and invade iran and today this is been pretty much updated so there is no will as far as i can see you know within iran to try and develop this capability so it sounds very much like a lot of diplomatic a whole there for various other background political reasons and i have to say if i were iran and i had been put on the list by george w. bush ten years ago as one of the five trees of the axis of evil and then look at what happened the other countries which include libya iraq and syria why not wouldn't i want some sort of to terror and potentially although they've made very clear that they don't want to have that deterrent they just want to have a sort of energy.


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