tv Keiser Report RT December 31, 2013 5:30pm-6:01pm EST
better living through chemistry at least for us medicated zombies here in america sorry the rest of the world we're currently not working on a pill to help you with the stress of getting your head blown off. tonight let's talk about that by following me on twitter at the resident. that does it for now i'm a mirror david have a very happy and safe new year. old . technology innovation all the developments around. the future are covered.
welcome to the kaiser report i'm max kaiser happy happy new year time to say goodbye to twenty thirteen and oh what a year it was going in snowed in digital bombshells which in twenty fourteen could take down the twin towers of oligarch and banks are imposing a corrupt and inefficient political financial economic system upon us all. on the negative side of twenty thirteen ledger it was a great year for kleptocrats banking psychopaths and monetary maniacs for weapons dealers peeping toms and drone operators yes for it was the year these whack jobs
introduced the bell in help to buy debt debt and more debt the never ending list of fines for crimes to which j.p. morgan will never have to admit. obamacare the corporate espionage surveillance state the bedroom tax the housing bubble the speculative market frenzy taper talk. and the murder of aaron swartz so there's a twenty fourteen being a year and what's justice perhaps is done stacey well we can only hope and i think we said that bitcoin and snowden i think those could be the digital boncelles that were laid which could deliver some justice now the first headline is a tweet from forbes big corn was far and away the best investment to make in twenty thirteen so had you invested one hundred dollars at the beginning of two thousand and thirteen at the end of two thousand and thirteen you would have five thousand
dollars with bitcoin the next best was light coin you would have six hundred twenty five netflix's next that four hundred seven and then twitter at two hundred thirty one the worst was gold which would have a value of eighty dollars now right well two years ago and last year we told people with gold and silver to hedge those positions with bitcoin so not only would you have not had any losses on your gold and silver with the bitcoin hedge but you would have gained an enormous amount in your portfolio with any kind of exposure to bitcoin whatsoever and going forward bitcoin will continue to outperform just about every market in two thousand and fourteen because for the reasons you stated there is a connection between snowden and bitcoin it's called encryption and it's a very very important phenomenon going forward yes and it's also you know i think twenty fourteen is going to be the year where we see this you know people are able
to get freedom not granted to them by the powers that be but they're just going to take it because it allows you to take power with the unbanked to seventy five percent in subsaharan africa unbanked they don't need the permission. to have a bank account now they could just have bitcoin they could decide to trade and commerce all over the world the same with the n.s.a. stories we're going to cover in the second half the snowden revelations but i want to say you know there will be fight back this will be a vicious year for all and twenty fourteen now i'm going to look at this headline from paul krugman big coin is evil his proof is a quote from a size five writer. charlie stross who says because he looks like it was designed as a weapon intended to damage than szell banking and money issuing banks with a libertarian political agenda in mind to damage state's ability to collect tax a monitor their citizens financial transactions so paul krugman says look read that
quote again it's this is why i'm against it too this is a threat to the state this is pretty interesting is that because it has revealed paul krugman of the new york times as being an inveterate statist who's against free markets i mean he writes a column about economics he's won a nobel prize in economics and economics is about has to have some connection to free markets and yet here he saying that he hates bitcoin because a represents free markets it represents true price discovery it represents financial independence the thing that got the united states founding fathers encouraged to separate from the ruling elites in britain and here is paul krugman saying he effectively does not believe in markets he doesn't believe in economic freedom and they really has exposed i think brit coin is a bit of a litmus test that people of come out against big coin on different sides of the political spectrum have been exposed to charlatans paul krugman would have to be
number one and joe wiesenthal of business insider he was against bitcoin then i finally after listening to this show he reversed themselves at least he had the courage to take on board what we say on this show and reverse his position now he's very much in support of big. point well let's refer back to joe wiesenthal because he interviewed paul krugman about bitcoin only days before congress wrote this big queen is evil thing and let's turn to what he said then about what why bequeath is a problem in principle you can have assets which are considered valuable even though there is nothing backing them because self-fulfilling expectations now we don't actually think that money is like that because that's backed ultimately by the fact that you pay taxes with the right people always say that but it is a right if you have money if you like is backed by men with guns for a coin is not so why should this thing have any value so backed by men with guns that tells you everything you need to know well in fact guess on the show catherine
austin fits dr michael hudson and others who point to the fact that the dollar as the world's reserve currency is backed by guns because people say there's nothing intrinsically valuable about. i don't say there's nothing intrinsically valuable about the dollar because the federal reserve is technically bankrupt it has many many many times more debts that it has anywhere near in assets and then they come back and say won't but the pentagon has guns and of course much to the demise and chagrin of saddam hussein well market dollar fee all the tension in the middle east revolve revolves around this idea of world reserve currency of the dollar backed by gun so here again paul krugman is suggesting that not only is the anti free markets but he's pro. violent coersion he he's a stalinist in the sense in that you must you are going to coerce yourself into the american model of communism or we're going to take out our gone and shoot you he's
a pull part of sensually of economic commentators and it's embarrassing for the new york times i think the people are a bit coy now i have many hundreds of millions of dollars in good coin they should buy the new york times liquidate it throw crowd went out on the curb on his butt and say get a real job you con is you know soviet era loser you know the guy can think and feel whatever he wants the fact is and crypto currencies are a revolution and you cannot stop a revolution once the idea you couldn't stop the internet once it was unleashed upon the world the likes of paul krugman by the way i'll tell you what he said in one thousand nine hundred eight just so you understand his prognostication on bitcoin the growth of the internet was slowed drastically as the flaw in met cost law which states that the number of potential connections in a network is proportional to the square of the number of participants becomes apparent most people have nothing to say to each other by two thousand and five or
so it will become clear that the internet impact on the economy has been no greater than the fax machines so you see there that he was unable to see the revolution in exactly what the internet why. just like he can only see bitcoin as a currency and that's just one of the very thousands of many options of apps possible for the big block chain well listening to comment calling is like watching a fish trying to ride a bicycle i mean here in this comment about metcalf's law exposed himself to be enabled to even comprehend mathematics so he doesn't understand economics he doesn't understand free markets he doesn't understand currencies and he doesn't even understand mathematics in his description of metcalf's law is something you'd expect from a child who's never actually pre-verbal in a preferrable state is just kind of drooling on himself or herself i mean this is shocking the reason this is significant is that if he wasn't at the new york times
nobody would listen to him because he's obviously a fool but the new york times is a useful idiot as they sustain a soviet union these are the useful idiot propagandists who go out there and spew lies for the stupid people in america who read the new york times and believe that there's some component of truth to it now we know he's an idiot but what do you think about bitcoin going forward in twenty fourteen what do you think will say i won't be getting back to this snowden bitcoin theme in corruption is going to continue to be in a very important theme going forward and big point is powered by the encryption technology the mathematics behind it corruption and the adoption rate is skyrocketing and you've got oversight dot com run by overstocked overstock dot com for example who's now going to be using bitcoin in twenty four states or other retailers like amazon or walmart or a rest of these retailers will have to follow suit bits and be competitive other hedge funds will have to buy a big coin to be competitive so i see the valuation as i've said on my twitter stream the valuation a bit going to fifty billion dollars that implies
a price of around forty five hundred to five thousand per bitcoin and again twenty fourteen it's not the year of what they exchange rate is it's the year of the revolution that is crypto occur. forget the price nobody cares about the price think about what it's going to get rid of jamie diamond you're not going to care about the crimes to me diamond commits because who cares it's going to be a small percentage of the global economy now let's talk about those men with guns and the n.s.a. what snowden has unleashed upon the world the tweet reads silicon valley's losses from its n.s.a. collusion could be as high as one hundred an eighty billion dollars or twenty five percent hit to overall revenues so tech represents twenty percent of the s. and p. five hundred and it has been hit by a financial jihadi group called the n.s.a. this is done more damage to the financial markets in the united states then anything osama bin laden or whoever did nine eleven could have done right the
chance of getting a dime from a terrorist attack in the u.s. is slimmer than the number of people who die from get hit by television sets so based on the proportion that ratio the n.s.a. a government agency decided to destroy twenty percent of the s. and p. five hundred at least and there's contingencies to that by infecting other products with a disease that is surveillance technology and so americans blowing its own head off you don't need the crazy people jihadi is when you have their own country taking a big gun to their own head and pulling the trigger you don't need you going to kill yourself i guess you're going to preempt a terrorist by killing themselves well that fits in with this whole bitcoin in the top half of the show where we discuss the fact that not only has j.p. morgan and all these others had the patent applications for the sim they knew that customer demand was there for this sort of block chain ledger public ledger they didn't do anything about it instead they wanted to charge their toll booth here we see that americans were freedom they said of somebody and they instead destroyed
their own economy and we see this in the following headline a new twist in international relations the corporate keep my data out of the us cause some companies are apparently so. concerned about the n.s.a. snooping on their data that they're requiring in writing that the technology suppliers store their data outside the u.s. well this is a big trend for twenty four jane is that the monopoly almost that the u.s. enjoyed over the internet is being broken up and that means that competitiveness in the u.s. will decline that means the dollar is world reserve currency is continuing to ebb and we will see the rise of a multi multi multi dimensional global economy away from the u.s. as world reserve currency this could be the year that we see the empire finally go yeah i think you're right all right well guess what we must mosey on along to the second half thanks happy new year max guys are oh i thank you darling. for the second half more.
i am the president and i think a society that case and big corporation kind of convinced that to consume cars can do i feel bad for trying to get all that all about money and i'm actually sick for politicians writing the laws and regulations to tax corporate bankers coming. here is just too much is a society. that. welcome back to the kaiser report time now to turn to barr jacobson one of the organizers of the european citizens initiative for unconditional basic income bob welcome to the kaiser report thank you max it's got to be here all right so far
jacobson unconditional basic income what is it well unconditional basic income is a regular payment made to everybody unconditionally. and that's it ok. this is but it is a recently because switzerland that's right has put this forward and they are suggesting that also since get unconditional income they get a yes no monthly income and there's been a lot of talk about it so could you just give us an update of what exactly is it switzerland proposal what switzerland is proposing is quite a high basic income around fifteen hundred dollars something like that a month. for anybody to spend on life now tell you why this is an interesting topic for us here on the kaiser report because we have this opinion that banks get an unconditional income absolutely in the form of quantitative easing so there's
a class in the industrialized world bankers and their friends who in the case of in the united states they get eighty five billion dollars a month from from out from ben bernanke you. know income you know just stuff money into their pockets and they do no work for this there's another program where homeowners are involved in home equity lines of credit extracting money from their home based on this quantitative easing once again they're getting free money a free income from the government they're not working for this money ok so. why should it then be such is a leap of imagination either for people who are not necessarily in the pockets of the bankers why should they also get some income well indeed this is what we think and. the thing is i think you know you see all the money behind us it's it's not going out to the people i mean there are people saying well we should have q.e. for the people actually rather than be for the banks all the time or q.e.
for. for wars for example there are a lot of things that happened which we really rather not see happening as well as the fact that people just need the money i mean it came out today i don't know if you heard the figure but the g.m.b. came out with the fact that the wages are going down have been going down the last five years ago in town for by twenty percent right in the banking world of course the escalation of this free money is from its leisure they just print the money. they take the money so in the basic income world the comes from work. well the citizens income trust has worked out how to do it from texas you know from the current tax base there are a lot of other ideas about using land value taxation or the financial transaction tax or even be eighty to give people a basic income but i want to get back to this idea of the fact that you've got one group of society getting this free income is another group which is being asked to accept austerity yeah like i mean like the artist talks a driver says this isn't a recession this is a robbery and you know as the cuts kick in as the as the social security system
here is made increasingly conditional and you get this kind of senate state of sanction thing going on with with workfare and and the e.s.a. and without else. it's really pushed a lot of us to be saying well actually want to just get rid of all of the all of the conditions on welfare and make it emancipated tory make it something that people can just rely on and live their lives i mean you know yourself i mean all the music that came out of this country in between the sixty's in the ninety's a lot most of those people started out on the dole well it kind of opens up another idea where in a lot of countries in ireland for example there's. folks who are artists are. kind of encouraged by the state because there is some residual ancillary benefits to this as you point out there's an entire industry is actually can be created with the with the time available to folks who are going to then come up with new ideas
a new thought i wanted to kind of turn it around a little bit for example and look at this in a different way so let's say that we know that the economy here in the u.k. is is a matters economy it's a centralized economy is run by by the market palled policy committee essentially the banking committee and there's very little really free markets what if the economy were suddenly opened up it was a free market economy so interest rates would trade as if they were they were determined by. market not by the central bankers the wages were actually allowed to rise in terms of the true demand. would there be a need for what your basic income they are talking about so that it wouldn't be a need for this in that scenario can you just talk a little bit well i think it would be there would be a need for it i mean that's the thing is with basic income it's not actually very very old idea people started talking about it as early as the fifteen hundreds when
the enclosure started and people were taken off the land and were unable to use the land as a common resource and for subsistence and we're seeing a kind of similar thing here with the kind of wealth extraction that's going on from whether it's. the closure of industry or whether it's the cuts or whatever. and you know say if you did have a what you talk about in terms of a free market economy you still wouldn't have a free actually a free labor force and what basic income does is actually free up the labor force to say right well this work is worth doing and i want to do it and this work isn't . jacobson let me ask so what what do you think could be some of the ways to push this agenda forward obviously switzerland i guess we're saying is all switzerland has they're going to actually do a popular referendum so the whole country will be asked do you want a basic income this is how much it is the e.c. initial the e.u.
initiative is it's a mechanism that was about the only good thing that came out of the lisbon agreement and it gives e.u. citizens the right to tell the e.c. what to do if you get a million signatures that's what we're doing unfortunately we couldn't ask for basic income to flood we had to ask the e.c. to look at the question and so our initiative which is great about the european commission we're asking them to just look at the question do a pilot studies do some research into it if you look at the research into basic income in other. parts of the world. health outcomes rise kids stay in education and nutrition gets better it's a really good way of helping the poorest even though it goes to everybody it actually helps the poorest the most and that's that's why we're so in the absence of a political effort to go in this direction what are some of the nonpolitical ways that pressure can be applied for example we had just a couple years ago with the occupy wall street movement out you know there's a lot of talk about challenging the system as it is currently not
a lot of solutions or ideas were put forward a lot of discussion and so and i know a personally i think that if you look at some of the things happening in alternative finance it seems like it's getting at this idea for example neary of crowd funding there is a crowd funding energy platforms where people are putting up small amounts of money to invest in renewable energy where they're getting a dividend based on the dividend of the renewable energy that's coming it's a basic income from them coming from the sun so just on hits the solar panels it drives energy use and consumption economics of energy which they then get a part of that is like they're getting a basic come from the sun and there's a couple of companies here in the u.k. that are involved in this in this renewable energy crowdfunding platform which seems like a remarkable development and they're using technology using finance so that would seem like a great way to put go forward with this idea if the governments are going to drag
their feet you know i don't know if you've spoken to between kleiner recently who is a. writer of the telecom you need manifesto. and calls himself a venture communist and that's he he talks about that in terms of doing mutuals ok well you know doesn't want our interest when you throw into the mix a bit of media that sets off a lot of alarm goes you know not talking about necessarily let's say soviet era commie no not at all no no which is what most people with. or marxism no that's the thing i mean when you know when this when this has been piloted by one of the reps when or now i'm thinking wait a minute what's going on here is that it's it's it's like there's not a commie. there isn't there isn't there's a middle ground here. it's called capitalism and communism in other words what i described about this crowd for the platform that would give people energy from the sun that stats that you could you could see echoes of that in the communist
manifesto but you could also understand how that relates to the. red meat eating capitalism in society in terms of putting together efficiency technology efficiencies and the meritocracy that comes developing the technology behind it there's and there would be winners and losers on the technology side so there's a there's very much a minibus the big i mean it you know yes there should be live winners and losers on the technology side we should have the time and the resources to explore all these different options whether it's local currencies or the electronic currencies you're into or. you know the ways new ways of exploiting energy or i mean we're always there for all these there are all these different you're going to tell me how to put i'm going to yeah i'm saying if you want to get mass movement behind this yeah why was there something better way to brand it if and to use a crass term like this then dip into the communism. bucket of paint i mean is there
a better way to push this. something that yeah also i mean some people call it a citizen's dividend or you know social dividends i mean there's a whole lot of very old ideas from c.h. douglas was a social dividend some people are calling it a says its citizens david and i mean if you think of us of human beings we all have a stock in the planet and this would be actually a good way to to to support people in living while they figure out good ways. to sort of deal with these different problems and. as you say possibly compete with them or just be able to live. and withdraw the money ok i think we've gotten somewhere here so the social good and the fact that it's not about just giving people money no it's about really architecting the economy absolutely because there's so much that the market doesn't pay for i'm so sick of hearing people told tell talk about this self-made person self-made man usually and you
just wonder well all right so who change this now. nobody is left to stick it out is the day after the day you know nobody nobody starts out alone no you know everybody has some kind of support and even if it's an adequate support you can talk about you know a lot of different things about that but let's roll back the first second picture we got is that it was ok with the economy it can be really architected in a way where the risks and rewards are more equally balanced income can flow in a way that are more equitable without destroying capitalism per se because you still have a competitive aspect was doing i mean some people say this is going to save capitalism basic income that is other people say that it will eventually let it wind down into something fair i don't know what are you going to go out and i think ok we're agreed term social dividends is also dividend is a good one because it's low since dividend is a good one it's just
a sort of think that this is our share of the economy and i won't really want people to sign this year in fact you only have fourteen days to do it basic income two zero one three you. take a step into the future with the right income there are enough ok raddatz only to bring in the guys report thank you max and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i'd like to thank our guest barb jacobson of the european citizens initiative for unconditional basic income. if you'd like to get in touch tweet us at kaiser report until next time happy new year and by all.
what is up y'all i'm out in martin and this is breaking the set you probably heard about arizona governor jan brewer for all the wrong reasons after all her love for private prisons and disdain for undocumented immigrants ranked her among the worst governors in the u.s. unfortunately this next story only helps amend her place on the list she was recently disclosed over six thousand child abuse claims across arizona have gone completely unvested and while that number refers to cases dating back to two thousand and nine the vast majority of them are only a few months old and while not blaming ruhr for the abuse itself of course she did take office in two thousand and nine so every one of these cases happened under her watch at the very least.