tv Keiser Report RT June 27, 2017 3:29am-4:01am EDT
event i'm wearing fuchsia colored underwear right now and i've been told i can't show the to you on camera so oddly i was hoping i could do a little dance make a little love get down tonight but that's not going to happen i guess not yes we are in mexico city in case you weren't aware that because there is an angel over max's shoulder that is the famous angel in the past say oh they love reform so where in mexico city so we're going to talk about mexico we're going to talk about the mexican economy we've encountered many people here we've had public events meet ups we've met hundreds of people and we're going to talk about mexico we get a regarding the russia gay stuff i have had at least a dozen people here in mexico ask me what is going on with america they seem crazy they sound like chavez because i guess hugo chavez had a lot quite a lot of conspiracy theories and i thought it sounded like that but in terms of the economy here everybody looks happy out behind us of course but some of the
headlines would suggest that it's not so good for some people what we've encountered of course in mexico city is you know a lot of it seems like prosperous and booming compared to even two and a half years ago when we're here but mexico's economy reels from a blast from the past green gold that's a new name mexicans have given to avocado one of the country's staple foods and most important agricultural exports unlike real gold the price of green gold is soaring having more than doubled in the last year alone to reach an average price of seventy one point four pesos in mexico city according to data from mexico's national institute of statistics and geography known as and so at that point when this article is written it was three dollars and eighty five cents it's come down a little bit in terms of the exchange rate because the peso has increased a little bit yes funny that they compare it to gold and call it green gold gold is not really what you want to compare it to because gold itself has been in a bear market for four years five years prices went stag. and i think you might
have to call of green bitcoin to give people an understanding of the price appreciation otherwise sounds like the price is dead yes i'm gonna prices are zooming because of its terms in america ordering avocado toast at twelve dollars a pop and there's a lot of articles in america encouraging have says not to order avocados because it's a waste of their savings they should put that money to work in something like apple stock or something like that but i say you know what have all the avocados you want because enough people in mexico and mexico people need the help they need the economic support because the culture here is rich and lots of other stuff we have a lot of avocados there guacamole with grasshoppers on top. no i think those outstanding the grasshopper guacamole was a standout performer on the menu this trip and eggs real ant eggs with some mamak and eggs with awful kauto basically avocado makes everything taste better it's and makes life better. i have a cow the prices are soaring for a whole variety of reasons including rising global demand mexico's the world's
biggest export of accounting for just under half of the global market and that market is growing by the day particularly in the us europe and china but there's another reason why the price of gold is rising in mexico and as much closer to home inflation and you mention gold real gold gold gold and that hasn't acted in the past few years anyway as a better hedge to inflation than of a cot whose have apparently because they've doubled in price unfortunately because of a store of value you can't afford as a protection against inflation and you can't buy gold or silver because are being manipulated by central bankers that's why there's a russian typically rather cryptic cards like max coin and others because it is a store of value against banking missed carriages of economic justice and inflation that they are park to cure the debt ridden economy with that in fact just impoverishes the billions at the expense of or the enrichment of a few i also will note that behind us at the pride parade i do notice i'm not
taking much pride in the environment because all those helium balloons are flying past and that's a no no no no we have noticed a lot of pride here in mexico itself and the heritage and the culture of mexico which is quite remarkable there are so many there's something like fifty three languages spoken here the only other country with more languages spoken and their nation is china fifty three languages many of them indigenous native american native you know to the area before the cookies to doors arrived all those languages of most of the food is derived from their cultures including grasshoppers and and eggs. they were even long ago. now back to avocado prices and inflation however here after decades of trying to tame the tempest of rising prices with a reasonable degree of success mexico's inflation rate soared to six point one seven percent and may as measured by the i am p.c. the c.p.i. version used by an aggie it was fueled largely by the rising cost of food and
energy after the government hiked gasoline prices by almost one fifth at the beginning of the year is the highest inflation rate since april two thousand and nine and over double the bank of mexico's benchmark rate of three percent and they know that is the speed at which inflation is taking off last year at this time is two point six percent now it's almost six point two percent of course when donald trump was elected president that day the peso sank by seven point seven percent it's recovered most of that but you know trump is a bit of a volatile making their currency a little bit volatile right the inflation according to that definition in mexico is tied to a falling peso and i think people in the united kingdom should take note because as the british sterling pound drops to banks it breaks that chaos pretty much this is the kind of inflation rate they're going to be expecting soon six percent seven percent that'll wipe out a huge an enormous amount of the population economically speaking
a second thing to keep in mind here is that this definition of inflation is interesting because it excludes wages in the old days like thirty years ago they used to put wages into the basket to calculate inflation but because they want to get rid of people's wages or replace or but it's robots they remove wages from their calculation of inflation and they include stuff that they hope to guide them into financial policies from the central banks in this case bank of mexico that will exacerbate and exaggerate the walls that income gap and the upward drift of wealth to the top one tenth of one percent to mexico as many a few. oligarchs carlos slim of course is often in the top three or two or one richest person in the world we also have to because of the low prices of many things including food staples and the value of the currency against other currencies the middle class here i think can kind of live quite well compared to
the best the world but it's the bottom fifty percent who are earning minimum wage which is quite remarkable and why this obvious caudal price matters so member i said avocado price the average avocado costs seventy one point four pesos so i'm going to tell you the figure for the daily minimum wage here in mexico city because we get on sarah the chief of government of mexico city just called for short term hike of the country's minimum daily wage to ninety two pesos with a view to reason in the medium term to one hundred twenty pesos so that's about five dollars a day for the minimum wage share ninety two pesos an avocado cost seventy one point four pesos so this also puts into context the situation with the united states and trump and immigration that was happening for all those years it comes mostly from the bottom because if you're working at a ten hour day here and making five dollars or you can go to america and work a ten hour day and make sixty dollars or seventy dollars eighty dollars of course
you're going to go do that right and of course then mexico the stock market as double s. because companies don't need employees companies don't need wage earners the government doesn't need taxes the government can fund itself by having the social bank print money for itself the top one tenth of one percent has access to the social bank who prints money for them at zero percent interest rates and they have unlimited supply of money and i call this interest rate apartheid so the bantustans if you will the pockets of severe poverty here in mexico are engineering created by the central bank and the elites working together to abuse economics of monetary policy. somehow justify what is essentially economic apartheid while the after hasn't improved the bottom fifty percent who are on five dollars a day i also want to say that the average of inflation from today back to one nine hundred seventy s. here and mexico is twenty five percent annual inflation so six percent looks quite
good compared to that and that's because if you look in the one nine hundred eighty s. it hit one hundred eighty percent at one point and then they got it a bit under control and then in the one nine hundred ninety s. with the tequila crisis where the currency devalued by fifty percent overnight when they let the the peso float but i also want to say regarding the government and the government expenses well they're far from a they're they're not in deficit they don't have a deficit and we can see why. the cover of their newspaper here and by the way while we're here we're going to talk to one of their columnists but basically it's saying that eight out of ten people here in mexico who apply for their pension their state pension like social security in america eight out of ten are denied and it's mostly because of. basically small clerical errors you make one little you forget to cross a tier dot and i and they will basically reject your application for your some
security so it says that many people are therefore turning to criminal gangs in order to get loans and sustain themselves and those criminal gangs then apparently then collect your social security for you so this is an example of financial terrorism of which the government is guilty you know this is a government that was only with h.s.b.c. so long right behind us right away that building back there hundreds of billions of the illicit drug cartel money was altering in tens of thousands of beheadings and murders in mexico that's the government has b.c. the bankers their lead here now are depriving eight out of ten people from their pension money that's financial terrorism but this is that you know we you and i have talked. up this over the years said that they rigged the c.p.i. index in order to avoid having to pay out that increases to social security payments in the united states and the united kingdom in europe to avoid paying increase medicare payments or anything like that they say the met other stealing it and here they just say you're just telling it well you'll eventually get it they
most of these people eventually get it but it's bureaucracy they make they push it back a year or two or three years so they're nothing and everything but this is what they said that's what it could be. and he like wells fargo stole money out of people's accounts they just stole it oh yes i got a we're going to go outside to go off having a show he's got my fish in other words see what happens said over the second half of all of our.
economic development is all about numbers really pleased to report this quarter we've earned one hundred six point. but what do we know about the other figures. when i think about the fact that our c.e.o. mike du made over twenty million dollars last year more than one thousand times the average wal-mart associate. with all due respect i have to say i don't think that's right. is that just you know a free market works. people when. from pretty simple financial lives pre nine hundred eighty to the point now where people are the just totally submerged in their financial accounts and they're all in debt and what exactly divided society. the protests of the government try to do both nicely maybe. it might be making
things worse. by saying this is not work this is capitalism goes hopelessly disastrously wrong. here's what people have been saying about rejected in the us it is full on awesome well the only show i go out of my way to launch you know what it is that really packs a punch at least yampa is the john oliver of hearty americans do the same we are apparently better than food that says i see people you've never heard of love redacted tonight the president of the world bank hates it but he doesn't write me seriously he sent us an e-mail.
welcome back to the kaiser report imax keyser time out of thirty two zero zero rodriguez is the v.p. of payments at it so it's a welcome back thank you very much malcolm welcome back to mexico to yeah yeah we're here to a half years ago and we have done is that things are growing quite rapidly in a lot of neighborhoods and we also have to currencies are growing very big here big going is growing very big here and if we get into that or should say with just tell us a little bit about what that so is it was a first mexico big corn exchange that a lot of people for east to have access to an easy way to get big coins for mexican biscuits so what we do this we have an or open order book exchange with it which allows customers to place orders to buy and sell. afterwards we added other technologies we currently have cereal and a month ago we had it ripple so no we don't not only have three order books for them changing against mexican bessel we also have order books again become versus
the theorem and. right so pairs in the system as volume as the order flow well there is there has been a growing bohème and growing interest there are there are more people getting into this and more people hearing about bitcoin and the theorem and even the theorem and you get a may said before everyone used to talk about bitcoin to people who were starting their mate now and i'm starting seeing people that are asking about the theory what what or what is the technology what are they doing and getting to even better even before big go and so it's very it's very exciting seeing how people are hopping into it every all of this acknowledging you know essentially i was reading that in russia people are mining on their desktop crypto currencies are making double the national average in wages fifteen hundred dollars a month i was learning a lot of this type of desktop trip down mining in mexico you know there are so lot of interest because as you know it's a way to get this. scripter currencies but there isn't a big mining community there are people interested in doing they don't actually do
it with their soaps they do it for example with graphic parts to my theory i'm another cryptic currencies but there isn't this much mining going on here in the other parts of the world that i'd like to change that and next time oh we're in mexico city do another event with you and get folks desktop mining for crypto currencies as a way to augment and comment pushback against the currency cartel now last time we were here jose to f. years ago the entire crypto market in total was valued at i think maybe two billion or two and a half billion it's not worth over one hundred billion hundred ten billion i guess is one hundred sixteen billion that's in just two and a half years is it challenging the status quo yeah it's amazing you know only the whole cryptograms the only big growing and being most of the market you can see it in the pool to market cap that they can use to be ninety eighty percent right know very very interesting things are happening not only the whole economy are growing
into on over one hundred ten billion dollars of the u.s. you mentioned but other cryptic currencies are getting almost as big. as big and you have seen a big jump in the market to the station for example in the theory. which there is a trend that of people think that if the theorem continues with this growth it might also overcome the market capitalization of bitcoin and this is what to do with all this scaling deviate and also the new use cases are people are seeing in big groups like the c.e.o.'s which are getting a lot of hype and also. made this announcement that they were using big going to transfer money between europe and mexico everyone wanted to jump into x. or p. now so revel yet ripple ripple yes well you mentioned if there am and you mentioned that is becoming very popular the market cap is in the tens of billions of dollars it's competing with. in a lot of ways and many of these all going to reached above the billion dollar
market cap or a half billion or three quarters billion thinking about dash is one of the narrow like going of course a saturday surgeons got you know a backup of years ago three years ago we were talking about like when i was out of dollar we said this could be a fifty dollars going to fifty people back to two dollars out back to fifty having the all time high so that our show is kind of really the only show that really covers this stuff and people watch it they are in rich by it in many ways not only from a financial perspective but from the political activist point of view in my opinion not everyone sees it that way but with the theory i'm they have blocked change split and yet is there a classic something that barry silbert is you know behind in a big way and they have a theory i'm a new theory i'm and they would it was that split a success and is that something that bitcoin now should model itself after and what is the status of the fork split the four hard forks off fork debate in. now well there is this thread or this option that it could happen the same did in the theory
and would have been through is very interesting because there was no back story of what could happen there was only speculation but then we saw it in the practice so what is exciting about this world is that you cannot stop the systems like you probably do if there's a mistake in the stock exchange of the mistake in the bank you stop the systems you sort of nodded you start seeing how you can fix all of this no you have to fix and dougal everything real time so this is very exciting what happened to the theorem and it's something that could happen with there could be two birches of big wins but what you see is there's a predominant one which in this case you can see it in the market cap and the transactions in the in the blog chain and the use cases that are being made so for example if you're a mess of market give that's going over thirty billion dollars well if you're in class it just it's going above a billion dollars when they used to be one to ten so you have. syria i'm over this use cases so if i see osa know we theorem classic has announced that they're doing
their first i.c.a.o. following this trend that are making all the street sections grow old so it's very interesting about this if they do and they think that is what's going to the trimming the future if the market cap the amount of market percentage that bitcoin continues going down is another group the currencies continue going up trend or if they're going to will once again be a predominant you know a lot of people on that coin first came around they took an almost quasi religious fervor and a worship of coyness at toshi dot com the anonymous creator it was almost like a resurrection of jesus. christ like resurrection of virginal birth but if you read the new testament there are many chapters of the apostles tell different stories the book of john the book of whomever. and same thing with these forks i mean it's basically doesn't change generalizing. reality of law change technology that
is a transit trend transitory transition all. guys redefining moment in currency yes if that makes us. you have seen it and you have seen throughout history like one is another version of but there's other coins that are simply other burtons with different different limits the for in the conditions and you have seen first there were other bushes for example of cryptograms is but now you're seeing new technologies and this is the exciting part for example with the theorem there are. other cryptic that do the same job as because there are other triggers as there are are also searching the try to emulate in other programming languages for example with the theorem or doing this too i saw that there was a group of this there is another one called waves that also allows you to your own block and there's another one i think will stretch and all of them are trying also
for people to list your own tokens of this change using their systems let's talk about national coin offerings for a second so initial point offerings are. the ability of entrepreneurs new companies to raise money by issuing coins on or attached to the firy i'm blocked chain and you have a wave of these and there's a very serious connection to block chain technology for example in the case of the one called. the one with break the browser says it bats that basic research attention frankly basic attention to when there's a there's a genuine block chain association that makes sense or try to pay people to browse browse brave as a new browser have breaks new ground they connected with the token and that makes perfect sense but now we're into a phase where people who have no connection to a blotchy whatsoever are looking at just raising money is going i.c.l. that looks bubblicious yes i. i think there is has been a lot of speculation in this market and we were seeing less week for example we
have a bank or which recent hundred fifty three million dollars in ether it broke all records even the biggest record that used to be though that actually people have to look back at history and although this is a new market look at what happened of the first i see oh it was a failure it was the it was a recent for the fork there was a failure in the code and one hundred fifty million dollars have to be like wiped out and make another burden and make this change so there is a risk so most of them you are getting your funds into that but it's just a bitch just an idea something that there's a backing him for example basic attention token is that there replicating a business model in the business that they were already half that which is which will be more probably to have success many of this i c.e.o.'s will fail many of them probably will be a huge success but the amount of money that is flowing right now and for example what is happening to the serial network that is being saturated for example many
exchanges have to stop some with rules in the process because they're there were being processed about all the people that want to get in and some of. their neck changes g.a.t.s. that they they were basically halted they sense come back and said we're going to reimburse folks that get stopped out when there is a flash crash and drop from in the three hundred something down to ten cents and then it rebounded right back and now that they're going to come back and that's also something very funny because if there wasn't any ballyhoo up there if there was a flash crash the price will stay that way but he went back up and that's also unprecedented that the exchange is going to ream wars or customers for what could be they're still looking at it probably a technical or probably a glitch or probably a market condition but they're going to bring boards all their customers i published on one hand you could say that's anti free market but on the other hand this is a new industry and a new group of entrepreneurs. yes and they've got to make considerations and concessions to get to where they need to go to establish themselves let's talk
about regulation for a second and the f.c.c. because the f.c.c. has not really weighed in at all on these additional point offerings they are making noises they're saying you know we got a look at this thing it looks like a security issue be regulated like a security but i remember back in the one nine hundred eighty s. when i started as a stockbroker on wall street and throughout the next thirty years of my career financial innovation on wall street comes first and the f.c.c. writes new laws are changes existing laws to catch up to those new innovations like credit default swaps mortgage backed securities you know all kinds of exotic trading vehicles they're introduced first and they're completely against all the laws of the f.c.c. these juries act of thirty three and thirty four and the bankers say well yes you see these you can't you know we're innovators don't stop us from innovating can't just make the same argument about the i.c.l. market well there are actually people getting nervous in both spaces that regulators and also people inside the big books in the new theory spaces about we
we think oh most of them are good actors and most of them have a product that probably is going to be successful and we wish that it will be with their girls would be some bad actors that could actually run away with it with the money even if it isn't correctly with hillary through this incorrectly sold that every morning we go to see or the barclays no one on lloyd is the northern city bank more than goldman sachs more than j.p. morgan i don't know what the banking industry is replete with scoundrels and thieves in the market the crypto market we're trying to fight back against that that's the point is it doesn't matter that these different are the same because you've got to go of course thanks i think i was going to for this edition of the kaiser report with me max kaiser stacy i would like to thank our guests jose rodriguez he's a v.p. of payments over a bit so you can catch us on twitter account as required the next time by you know .
about your sudden passing i've only just learned you worry yourself and taken your last wrong turn. to caught up to you as we all knew it would i tell you i'm sorry but only i could so i write these last words in hopes to put to rest these things that i never got off my chest. i remember when we first met my life turned on each breath. but then my feelings started to change you talked about war like it was a cave still some are fond of you those that didn't like to question our ark and i secretly promised to never be like it said one does not leave a funeral the same as one enters the mind gets consumed with death this one different person i speak to because there are no other takers. to claim that mainstream media has met its maker.
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i. i. constantly. this is really. a. c.n.n. producer. from russia. in the story. to tell you more about that coming up. preparing to use chemical weapons in syria we'll look into those other. more trouble for the british prime minister get short shrift of a. deal now with a mind a project a government as well as a struggle for.