tv Keiser Report RT January 12, 2022 10:00pm-10:30pm EST
ah ah, nato has been trying to wind the clock back to the cold war times. thoughts from our russian press briefing after high stakes talks in brussels. nato understands the principle of the indivisibility of security selectively. nato applies a policy of containment against russia. moscow will have to take a countermand dots while nato rejects russia's red line of not letting ukraine join the military alliance, saying the blocks expunged and spreads. freedom and democracy. and britons prime minister apologizes for attending a lot. don't drink coffee in the back garden and don't, but said in 2020, it was the 1st time you have methodist presence, but now says he thought it was a work events. those the headlines the sick say a moscow time. mind pizza, scott, and i'll be back with another log in just under an hour's time.
ah. max kaiser, this is the kaiser report. stacy, where are we? we are still in san miguel day and day in mexico. we're on our way. the 2nd half. in fact, we will be in san salvador el salvador, but i just want to say, you know, we enjoyed the new year's here and the last year 2021. we exited, and we had 70 new all time highs in the stock market. we saw the all the markets where 27 percent on 2021. and yet we see headlines like this. we have a powerful weapon to fight inflation. price controls, it's time we use it as this was the big article over the christmas new year break, and that was in the guardian in the u. k. and they're calling for price controls.
despite the price controls, you might say the price fixing on stock markets. remember everything that q e n central banks do is about pushing the price up, up relentlessly. yeah, i was thinking along similar lines about price controls. now they're referring to stuff that people are buying at the store. that's going up and price because of inflation. and so the government of various countries, including the united kingdom, are saying, hey, you know, we need to come in there and fix the prices. this is a policy that, of course, has never worked throughout history. but as you point out, the problem is this. and for those who want to get the broader context, who want to kind of understand on a deep level, what is the story here as you are a learn alluding to this all. busy refers back to another price fixing scam that's
been going on for 40 years. and that is the price fixing scam when it comes to money. now remember, we supposedly live in a free enterprise, free market economy in the united states and in great britain and elsewhere. if that were true, then the price of money or interest rates would also be involved in a free market. but they're not. there's a pullup bureau in the united states called to free the for the open market committee, the free open market, the federal open market committee, f o m c, and engage in price fixing. and they do so for the benefit of their owners. and these are the banks that the gleam, hundreds of billions with not trillions of profit that's moved from savers. move from the workers over to the speculators. we've been documenting this mouth on this show for 13 going on 14 years. when talking about and various other content for 18
years. so it is a purchase price fixing is the problem. if you wanna free market, you've got to let the market be free, you can have half of the market free. and then half the market fixed. do you end up with the problem that we have today? i don't have the headline here, but during the christmas and new year break, i did read an article whereby they interviewed, i think his 1st name as thomas, but hoenig, he was the former head of the kansas city fed and he was one of the dissenters. he was the loan to center, so you know, the f o m c always a. they always want unanimity and all their decisions. there was one dissenter, 20102011 then he was basically ousted, right? hoenig, who, who was against quantitative easing. and the reason was, he didn't say it was because of inflation. he, in fact, only may be mentioned inflation once and all of his dissents. because remember, f o m c meeting notes are not released for 5 years. so 5 years later we saw that he
was saying exactly the situation that happens. now essentially he was warning of the can tell you narrow fact, he was saying that the wealth and income gap with surge, that it would cause asset prices to sore. and that the wealthy would get wealthier and this would destabilize our societies. and lo and behold, that happened, he was forced out because of course, the cultural elite loved bernanke. he loved the money printing. they and their friends got wealthier, and they thought they like they, in their mind believe that they are just and, and good people and they believe in all, sir. so so, so george, justice warrior sort of causes so that they deserve this money and that this was reward for good behavior and good thought. well, the fact is like he warned of the situation. and in this article, the reason why this woman is saying that we need to have price fixing is because of a fed chart. and this shows the non financial corporate business profits after tax
. since we went off the gold standard they've, it's been soaring. so you say way back to, you know, while you're on the gold standard, their profits were not excessive, but look from 2000 to one. when china enter the world trade organization and the u . s. companies can send all of our jobs to china. you start to see the profits for the elite just take off and then you see it again in 2008, 2009 when quantitative easing started. and look at what we have now post pandemic. and this is the mass of money printing while forcing all the small companies medium size enterprises to shut down, locked down, and have huge cost having to compete on this supply chain disruption. situation against massive corporations like wal mart who could hire their own, like tankers. and go get goods from china. right? so what we've established here is that the american economy,
under the dictate of the federal reserve, federal open market committee, is central planning. and sense, financial ization is the by far by huge factor, the single biggest component of the economy. we can say that america is a centrally planned economy. it's not a, it's not a capitalist or free market economy. it hasn't been for many decades. and when you look at the profitability, these corporations, it one has to keep in mind that the profitability of a corporation is contained to some degree to the ecosystem or business ecosystem in which they live a. so if you took, let's say, one of those read those mighty oak trees out on the pacific coast and you try to grow it into a pot that you would normally grow a geranium it. okay. i went to the redwood tree, one of the redwood trees, right? so you have a, you have a pot, then you're going to grow
a plant in that pot. and the plant is constrained by the fact that it's in a pot. any corporation in the world cannot grow to this to a size that's greater than the entire planet. when you have multi of a multi joint 1000000 trillion dollar companies. you're so actually saying, well, this redwood tree is somehow grew in this part that we normally grow geranium and ok. obviously, the only way you can do that is if you have a direct connection to transfer payment from the, the federal bank, those printing money and is bypassing the economy, bypassing labor is bypassing savers, is bypassing capitalism. it's just going into the pockets of the club talk or see some called or the caca stock, or say that the central planners, you know, on the left in america, they say, you know, we need to get rid of capitalism and bring back central planning. ironically because week we, we have had nothing but central planning. since al greenspan,
the $0.19 a crash of 1987, when greenspan robert reuben, and ronald reagan actually repudiated the free market and said, we're going to get into the s and p features buying business with the open, with the punch protection team or the working group on finance coming out of the white house and that day and i was working on wall street on that day. the american system of free market enterprise dead died and not we've had sense is a mass, a kind of a mass hallucination that's given us now, 100000 overdose deaths last year and calling up and rewarding. that is a good way to make money that's. that's what, that's what happened. well i guess you could kind of say it's like jack and the beanstalk economy. some companies, some individuals, some banks are given special beans, right. and their be in stock can grow to the moon where everybody else is shut down
. and here's a wall street journal article about that. essentially, u. s. companies are thriving despite the pandemic or because of it, revenues, profit margins have surpassed late. 2019 levels for most public companies. bigger firms have fared better than smaller ones. nearly 2 years after the crone of virus pandemic brought much of the u. s. economy to a halt. public companies are recording some of the best ever financial results. profit growth, the strong most companies sales are higher than they were before. cope 19, often well above the liquidity crunch, many feared in 2020 never materialized, leaving companies with sizable cash cushions. the stock market ended 2021 year record highs and far fewer public companies file for bankruptcy and 2021 than in the years before the pandemic. and they credit all of the money printing the huge amount of money printing. this is like the u. s. companies,
but especially the publicly listed massive companies. they were given these special beings where they're being stock can grow away higher, higher, higher, higher, past, move past the stars past. the galaxy, you know, beyond everybody else. right. in another inconvenient truth that most people in america and united kingdom don't want to face because it's too ugly, but was effective lay the big corporations, got the regulators to kill off the competition. ok, this is a a mafia approach. you get the cops to raid the guy who signed drugs next door to where you're selling drugs. and because the cops are corrupt and they'll take a payoff. so their financial regulators in america are venal, which is a fancy way to say they're corrupt, but also like so this woman in the guardian who wants to have price fixing. this is for things lower. she's saying like, it's like post world war 2. when there were supply chain crunches then and blah,
blah, blah, but think about this like so she wants that one of the biggest disruptions and supply chains has been to micro chips. right? that's because like taiwan makes most of them. but all of that stimulus saw millions and tens of millions of americans by durable goods from where china and all our durable goods are washing machines or refrigerators are. and our cars and stuff like that. have many, many, many microprocessors. so there was huge demand. the actual quantity of micro chips made in the past 2 years exceeded the years before. so it's not an issue of like price fixing needed to rectify this. you have to just stop giving all the free money start printing money and inflation will go down. right. i mean, she needs to put the, the, the price fixing after world war 2 in the context of what caused world war 2. and
that's money printing. and so the fix was, you know, let's fix prices it, but let's not address the money printing. let's not disband the bank of england even though it has this incredibly deleterious impact on the u. k. economy, in the global economy. it's really the 1st of the major is the 1st central bank that we know of going back to, i guess, a 1796 i believe. and it's the model upon which feudalism can continue and in wash itself as a market economy. it's feudalism, thanks. bank of england. so, but of course that would require a much broader education on behalf of the writer of that article, which is obviously not the case. all right, we're going to take a break and when we come back, much more coming your way. ah, ah ah
ah, emotions medieval institutions. and then i go to like technology and the combination of these 3 very you could say, historically distinct seeks fixes within our psycho physical makeup. i have rendered us pretty dangerous list to ourselves to the, to the planet. ah, welcome back to the kaiser report. i max kaiser time out of turn to samson. now i'll block stream and infinite late sampson. welcome back. thank you max. great to be back right here. we are in san salvador el salvador, where there's a peaceful revolution going on with big coin being made legal, tender. and of course,
the big coin bond. you are an instrumental if not the chief architect on these bonds working with present to kelly. it's shaken the world of finance. it's a revolutionary new concept that this start up nation about salvador is really basing a whole new economy on tell us about it. the big coin bonds are a $1000000000.00 bond. the 1st one is called the volcano bond, and it will go half into buying the coin and half into building energy infrastructure and mining equipment. so this will be a 10 year bond with a 6.5 percent coupon. and at the end, you get your principal back. but the interesting about this bond is the bickering opponent will contribute to a special kicker. so for the 1st 5 years, you get 6.5 percent. but in the final 5 years, you get 6.5 percent plus the special bitcoin dividend, which will it, depending on the current price, could make the total coupon size. 90 percent? 120 percent. your best guess is my best guess, but it's going to be good. right?
so for institutions who are looking for exposure to bitcoin, this is a great way to do it because it being paid 60 percent essentially to wait for the big coin move. and a lot of people are, you know, they don't like the volatility. but here you're getting the 60 percent coupon, and you don't have to really worry about the volatility. i did. i understand that the big coins mess. they locked up for 5 years and then they started to pay out. they told me on another podcast that the volcano bond in your view is probably the most significant advance in big coin sense bitcoin. i think so, because it is very innovative on a number of levels. so as we know, institutional investors are star for yield. they're trying their best to get yield the trying to access bitcoin, but they don't necessarily have the means to get into bit coin. this bond fixes that, so they can buy the bond. they can have that big coin upside. and if it's with their mandates their charters,
which would otherwise stick them into buying something like a mining stock or something less inefficient, less efficient than the volcano bonds. so i think it's going to be a big game changer. the other thing is, these bonds are going to be traded 247365 because it is a crypto asset. it has a token issued on the liquid network, which is a federated bitcoin side chain. it will be traded on exchanges like bit fanatics and others. so you're going to have 247 trading and a massive pool of the quidditch 80, which is not that common with bonds. right. and you know, we're talking big numbers are talking about the bond market and international investors. let's talk about the salvadoran is to work in a job. and they've just been told that because it's been made legal tender and it's something very new to them. so talk to, let's talk about the average salvador and how does bit going going to impact their life. well, the biggest thing is solar is now or get the hardest money known to mankind,
which is because they can earn bitcoin, they can easily change their money into bitcoin using the chiva wallet. and they have this access to the future financial system today, which is not that common. so most countries are not looking at bit coin. they're not making bitcoin legal tender. they're just printing more money. but here you have a silver riding the wave of the future, right? they're writing that way in the future, right? to prosperity because ordinary salvadorans will be able to accumulate the coin and stack that easily. and they could potentially access the bond as well. the interesting thing about the volcano bond and the big coin bonds is we want it to be accessible to ordinary people. usually when you buy a bond, they're $1000.00, hundreds of thousands of dollars or millions of dollars. if you look at the current minimum size of the current bonds out there and that's not something a normal person can get. but because we're using liquid because it is a token, we can go down to $100.00 minimum size. so normal person,
perhaps it's salvatore and living abroad, maybe they're in canada and they want to help their country. they can buy a piece of this bond and contribute to the economic prosperity of their nation. i took a tour recently of downtown san salvador and just a few years ago the area was, i know goes on, you know, it reminded me of new york city back in 1970 s. there are areas where you would never want to go into new york city. and then we had really the deregulation revolution of the 19 eighties and reaganomics as it was called. and new york city became much, much different place. so when i look at downtown san salvador, it seems like this could be a place where it attracts a lot of artists. it attracts a lot of entrepreneurs. is this the kind of place like berlin after the fall of the berlin wall or new york in the seventy's when? so how became a huge art center?
could that happen to downtown san salvador? definitely, i see. the coin is a big draw. it's going to bring people here because most people, most countries, actually, they want to surveil you more than the u. s. rate. they want to look at where $600.00 transactions come from. you have to report them right. it's not there yet, but that's definitely a direction they're going. whereas in a sophomore, they're making because legal, tender they're making money money again, which is a very rare thing in the world today. let's make money money again. let's make money money again. it's a rarity and i think it's sort of like a solid or is this a waste of sanity in the world of craziness, right? we're living in cloud world today with crazy health mandates to deal with covered and monetary policy is just gone insane. money printing is out of control, and here you have this sea of tranquility, you know,
you have be quite as legal tender and you have, you know, normal regulations about everything else. and those force mandates on vaccines and everything like that. i think that will draw people that will bring people to our salvador, not just the builders and engineers and that type of personality. but the artist to like you're saying they could come to and populate the downtown since her and bring art yes. seems like sound money encourages common sense. and i, i saw just the other day president kelly had sent data like a kid for folks who are biting the cove it pandemic and included was, you know, get a lot of exercise your hand here. so i reckon, and here's some other treatments which is all based on common sense approach. and but this common sense it seems completely absent in canada where you come from or the united states, where the theat money mentality and the ability for some to print money. no matter
how poorly they perform as politicians are, as business people, as totally corrupted the society and the values and those societies. and it's very refreshing to be here in el salvador, where it seems like people are just willing to follow something that's more common sense to hear your thoughts. definitely, i don't believe in forcing people to take to vaccine. and you're seeing that in canada and other countries too. and it's almost like they're trying to segment population and turn people against one another. and here you have present replacing, you know, you can get if you want, you have a choice. and in other countries, you no longer have a choice and that's just descending into this insane count world. yeah, i think that part of it, as we're saying when you have big coin as your legal tender and the foundation of your economy, you're very excited to see where you can go with this and you want to build stuff and you don't want to get mired into site distractions that seem motivated by folks that are not really interested in seeing success and entrepreneurialism. but let's
talk about the coin city for a 2nd. so big coin city is on the surface. anyway, an enormous lea ambitious project. i was there at the event you were on stage with president kelley. he unveil bitcoin city, unveiled the volcano bonds, and you are the architect of those bonds and tell us more about that going city. so we consider, i think, is the akin to a special economic region. it's a place where you can go set up your company, live there and have 0 tax on almost everything just via t tax. so no corporate tax, payroll tax, no income tax, no capital gain tax. it's almost like paradise for before. and you pair that with the big coin law. and i think you have the perfect storm, right? if you set up a special economic region like that somewhere else in the world, but it's still based in that legacy financial system, the fuel economy. i don't think it would reach level of success that because city and our server will because you have that big con component. if you look at hong
kong, right, it's a major economic center. they have very federal taxation. it's very open and free. but if you set up a company in hong kong, now, can you get a bank account? maybe you can't, right? it's because money has become that tool for surveillance. and the bank, they have to comply, right? they don't want to, it's a massive cost like running an exchange in another life. i know when you have more and more compliance that increase your business operational cost. right. so for hong kong, like you can't get very count. so even if you have those favorable conditions, it doesn't matter almost. but here in our salvador, with the current city, you've got both, you have those favorable conditions for business. and you have to be clean law, which means you can have money that is just simply money, right? that's a key part of the story and i think appeals to anybody from a big corporation down to the proposed to sales person on the street. is that the transactions are without any censorship and there's no way they can stop these
transactions. and the money that you make is like going to be inflated away out of existence. exactly. and that creates, and i was on t a which is really the beginning of the big revolution here in el salvador bitcoin beach. immediately you heard the phrase, circular economy. ok. what is that? i popularized that. ok. tell us about it. i was giving talks like maybe in 2016 a. that was when the lightning network was starting to come in to being right. so the network is a layer to of a coin. so the quiz one, layer 2 and you have lighting. but the key for lightning is it enables micro transactions buying coffee, buying producers, and your tracking transactions are free and instantaneous. so you can have a circular economy when you're transacting on the big coin main chain. you have to pay fees to the miners. sometimes the fees are low, sometimes they're higher changes based on demand. but with the network, you can have the circle economy where you can get paid and spend it all one go. so
it's, it's circular because you're earning in spending bitcoin, you'll need to go back out. you don't need to get your paycheck in dollars by the coin to spend the big coin replenish your break on holdings. you can earn bit coin and spend bitcoin without exiting and going back to that fit legacy system. and i think the key here is that remove friction. you let the coin become a currency. so anyone can earn bitcoin, receive bitcoin, spend bitcoin, and there's 0 friction. so this gets back to, of course the scaling question that was always part of the big coin story from day one. and the scale in question. i guess it could be summed up and one phrase can i use bitcoin to buy a cup of coffee? and that was said many, many times. and as a result, there were these hard forks and these other projects that came along that claim to solve that problem. this seems however, that lightning and the introduction of lightning in the popularity of lightning has
actually put those side projects in the shadows. yes, those are very powerful narrative back in 201617. you know, we cannot buy coffee with the coin because it's not able to be transacted as money . but if you have a block chain, you basically cannot have scale because you need to replicate every transaction and store in every single node. that's why you need their 2 solutions, like the quit and like lightning. all right, we're going to carry this over to a 2nd segment sampson, but for now thanks for bringing kaiser apart. and that's going to do it for this edition of the kaiser report with may max kaiser is here. want to thank our guests and some hour block stream and infinite flake. and so next time bio ah ah