tv Keiser Report RT June 29, 2018 12:00am-12:31am EDT
news just in the e.u. leaders have agreed on a deal on irregular migration at a summit in brussels where talks ran into early friday. russia and the us confirmed that the first official meeting between donald trump and bottom of putin will take place on july sixteenth six. belgium beat england on day fifteen of the world cup as the group stage comes to an end. for the latest on the stories and all the action from the dot com stay with us now for the financial news in the economy report.
backscatter this is the ca's report of what do you know my crystal ball the things you're looking are it in very what could this possibly mean let's check in with the ever knowledgeable stacey that kind of reminds me of paris because where in paris oh it is new so my old perry a similar law all set what does this mean we're in paris we are in the city of love the city of lights rekindling our love in our lives since we were in ireland we've been traveling and about you know portugal south of france we were in monaco and a lot of things have happened in the last few days and including that the emmy piece the members of their p. and parliament they voted to approve the controversial article thirteen which critics warn could put an end to means remakes is another user generated content article levon requiring online platforms to pay publishers a fee if they link to their news content was also approved this has to go to
a larger vote sometime in july but just say now that they're looking to destroy the means user generated content and even linking to contests well you know there's a fantastic series of videos on the web gold everything is a remix and it makes the point that everything is derived from something goes back to the beginning of time the beginning of consciousness the beginning of humanity is our birthright to think and do use the thoughts that are come before us to create build on to say no we're going to draw a line and twenty eighteen and everything henceforth it's ours it's ours and everything for twenty eighty the beginning of humanity is not yours it's ours it's ours ok that is just pure unadulterated uncut greed it's a lobotomy is performing a labatt of me and humanity for the sake of corporate germany and it's disgusting and these people should be held accountable for this transgression of my human rights of course you need to have access to your own thoughts. of course the world cup has been going and by the way i did see some sort of spanish speaking television presenter when mexico beat germany the first because i'm here.
yes of course for me it's my technique that's now spread oh well you know everyone's into it but you know i did learn something and if you go to five thirty eight dot com they have a good interpretation of lionel messi because you know lionel messi famously always messes up on his penalty shots but he famously walks over time and like everybody else in the soccer field they run and how do i know that that that is possible he's like one of the greatest players in the last decade or two yes and he walks all the time where everybody runs and yet they've actually done a study where they show that he occupies the space better than most people who goes where the play is about to be used to win gretzky a football lionel messi true genius true and rinaldo they dominate the twenty first century who's better known but i used to play soccer as it's called in america when i was a kid but i had to run too much and i thought this beat this game this. is the match
of the pitch for d. chess of course they trade war with china is heating up it's actually seems to be getting worse and worse between trump keeps on setting trade policy for tweet i wrote something about this for r.t. dot com and i interpreted the entire trade war situation and i gave my view if you were to understand what's happening if you were to look at it as trump sees it you have to get into trump's mind dunder stan exactly what's going on. to go to that might just blown things you can just go in there and see what he sees and to give a quick synopsis basically when he came off as he said look the military is half of the tax revenue one point five trillion we've got to cut that he looked at the big geo political war board he said gave make peace the korea cut back their. destroying nato cut back there have saudi arabia and israel become friends got back their it's all military cuts and then from there he will begin to. downsize the
pentagon and then china will try for tat but of course they can't because it means they'll go into freefall and complete collapse then they will have to start to underprice against other currencies to export their way out of that. but back together i'm not sure about that because that fact they're very strong signs that the us military is expanding their presence around china and surrounding china but we'll get to that in another episode sometime in the future kaiser report about why max geysers interpretation is wrong and should be challenged i am going to me i'm going to say that we were also dead of monaco and we were quite shocked because you had lived down in the area from some air for like three four years i had lived there for about a year it was remarkable to see the amount of construction going on there so i did a google search to find out what is going on with monaco because our suspicion was that this is the result we hadn't really been down there since the financial crisis post the financial crisis and we had an inkling that perhaps this is because of the
central banks these this is e.c.b. this is us federal reserve this is all the money printing that is going on this is what we're seeing is the euro the the explosion of the billionaire and the ultra high net worth individuals well monaco builds into the med to how's new throng of super rich construction has begun on a two billion dollars scheme to reclaim land from the sea around monaco so that more luxury apartments can be built for the thousands of extra millionaires expected to move into the principality in the next ten years nearly thirty five in every one hundred monaco residents are millionaires and more of the global super rich want to join them around two thousand seven hundred more are expected to call monaco home by two thousand and twenty six according to research by the estate agent knight frank take the total to sixteen thousand one hundred out of a total population of under thirty. you see in europe quite clearly going back to the financial crisis as you mention so when you had. athens greece collapse and you
had dublin go through a huge crisis and now you have italy collapsing and you have the e.c.b. bailing out the creditor banks not the debtors but the creditors the creditors take that money and they put it right into monaco that's where the money goes it doesn't go for example greece is still in freefall greece is still a basket case praises of as a lost cause a loss country italy is about to crash because the money that's being printed and the e.c.b. printed trillions of euro's it doesn't go to help these economies it goes to monaco it goes the people in monaco and it goes the twenty one twenty two trillion dollars estimated offshore money that's matters for these people that get all the free money from the central bank so you see that the manifestation of it in monaco well the more they print money that goes to the very very elite the more the faster they need to print because the thing is that when they if they were down that the quantitative easing for the people for example i see keane has suggested is that it would have kept on circulating within the economy and perhaps created
a lot of inflation well here they're causing deflation because it's being sucked out of our economies they're handing their printing money handing it to these billionaire class and they're going somewhere where they don't have to pay taxes and mingle with an ordinary people well i'm glad people are coming around to my point of view the money printing that's been going on since two thousand and eight has caused deflation not inflation and you see that because there's been no wage growth that would be inflation you see deflation in that you see the concentration of the ultra rich in one place called monaco and that's exactly what's been going on so prince albert has approved this extension is two billion dollars as an officer urban extension project it's just six tech tears two billiken dollars for that the property on it will sell for one hundred thousand dollars per square meter so it's called the. ports takeover ecological neighborhood well it's you know it's a petting zoo for billionaires in monaco in the trees of microphones so there are
a lot of searching every single thing you say every single step you take everything you possibly can communicate in the prince of palace is called is monitored by the government very very closely they don't care because they are part of the casino girl like they are the they are the house and the casino girl like literally they have monte carlo you know here's a little picture of the best the port that's where they extended it that's in two thousand and two the last extension work they did in monaco and that's where they bring in the huge ships but up here is monte carlo the casino and this is the bit they're going to be building right there you can see right here is filled greens yeah you know phil graham a billion dollars out of arcadia alliterative company up with debt and then they got into financial trouble exactly as we predicted that he took the billion for his wife's name in monaco he lives on a yacht but that's just not the safety of green is is more or less any much of a than any of these other billionaires and live on the yachts of this particular piece of real estate is just a card you know the garden variety shock and so that the article also finally
before i move on to the next final headline here they did say that this was this finally got the green light they had a green light before but the financial crisis caused them to retreat so that for a while there was an equal impact globally in fact the wealthiest got hit the most and the beginning in two thousand and eight two thousand and nine during the financial crisis but as we've seen that the bottom still where they wore in two thousand and eight in two thousand and nine the wealthy class are way up here because of all the money was the big difference is that if i have a portfolio is worth a billion dollars even a hundred million or fifty million and it's like fifty percent markdown i can call up x. y. and z. hank paulson or any regulator and say i'm down fifty million or a hundred billion to be placed on that's me right now leonard you may work your way up through a huge dark market rally and then pay that off gradually but you never saw for one single day where you losing up. any that's only for anyone who's a below the fifty million dollar line as a just b. c. is proven well i mean these were the titans of industry these were the bankers
these were the guys selling bonds and what they saw is that yes the entire financial system collapsed and the politicians are just politicians most of them are not like trump they're not billionaires right they're not from that class of people most of them are just ordinary people of bureaucrats for you know wealthy bureaucrats for the last decades and then they thought they were going to help the economy but i think these guys just did iran or they knew like if they're if they're willing to give us some money let's just take it run because we've collapsed the economy in a sense are coming back but of course during two thousand and eight to two thousand and nine is when i came about and i know you're going to be interviewing simon dixon in the second half so i wanted to get this final headline here the f.c.c. will leave good i c o's alone william headman the director of the division of corp finance at the securities and exchange commission gave a smart new want speech yesterday which was the fourteenth of june declaring the ether the cryptocurrency of the if they are network is not
a security and so is not subject to the requirements of us securities law he said quote putting aside the fund raising that accompanied the creation of either based on my understanding of the present state of either the a theory network and its decentralized structure current offers and sales of ether or not securities transactions and as with bitcoin applying the disclosure regime of the federal securities laws to current transactions an ether would seem to add little value but so as you see showing their hands that they're completely pliable when it comes to plying the securities laws of thirty three thirty four so they are now you know bendable that is a testament to how many people on wall street are participating in either you know this guy who made two hundred million dollars trading and he's there you know grab novogratz right geez a wall street guy is a made man so they call. no gas and then you get his opinion he's like to do it this way and had it come earlier it would have a different outcome but because they're now in bed in the system in the right guys
are making money they'll they change the law accordingly as i've said many many times the f.c.c. changes laws per what the bankers want well you'll talk to simon more about it but actually he says some interesting stuff and he agrees that you can raise money as a security for something that changes i you raise money for a decentralized platform and this is a new business model that hasn't been used before in america and he agrees then and then becomes not of security once it's a decentralized platform so he did say you know a theory was a security he did point that out that it was the security the way they launched themselves but now it's basically too late years have gone by and it's like it's not worth proceeding at this moment because it's no longer a security deposit they raised money against the securities laws of thirty three and thirty four this and the f.c.c. has come out and said that we're pliable. that that's their choice all right well we're going to take a break and we're going to come back it'll be simon thanks and don't go away.
economists tried to measure the volt pumps and one thing that we know is that they make people they make people their own culture was intended to have a profit for the russian government it's not a project and things approach it's a project that brings people into this it's extremely profitable because football in general is very profitable but of course if you're quiet huge investment on the government side they do is that this will slow development of football culture in egypt.
welcome back to the kaiser report imax guys are time now to go to the isle of man and speak what simon dixon of bank to the future simon dixon a lot come back hey max thanks for having me already let's get into some heavy duty crypto action where the as easy as fish kill they shocked the global crypto community when he declared that ether is not in fact a security what argument did the f.c.c. make to support this and do you agree simon so this kind of falls into your wheel house over there over there back to the future what you guys do so how is this interpreted simon stay with us if he came out and stated is the big claim in a theory i'm on no securities consists of fish and the decentralized and therefore what it proved is that you can sell something as a security because there's no doubt they didn't come and but they do is leave out
the information stays in the ether when it of originally started probably was a security because it didn't exist and it was something they were sending to people and people were put to sing it with the expectation of a return and therefore it meets the definition of a security but over time they've stated in this become sufficiently decentralized web buy something can start as a security and wolf into a non-security now this is very interesting for the crypto market because it's the assumption of how i see it is a soul's now so initial court offerings the way you offer the world to purchase your token in exchange for a cryptocurrency to launch some kind of network or decent or less token or something else but by by stating that ether is not so security is essentially allowed for innovations agree with this market and these things to be sold in compliance with securities laws. but later can still trade on crypto markets where
if they merge into not being a securities like what happens with lisa it's been a question for quite some time now what exactly is bitcoin what are crypto currencies are they securities are they currencies are they bonds are they commodities so apparently the f.c.c. is saying that it's some kind of a morphing shapeshifting quasi entity that can like a chameleon big go from being. not a security upon when it's offered and then it becomes a security later so but as you point out simon if seems as though the regulator in this case is kind of tipping their hat to innovation that they're they're saying that we don't want to clamp down on this space too hearty want to give it some room to grow is that your perception well yeah i mean you've got to remember that the whole world wants to take that you know crypto and block chain because it is where will the job so it will decrease this you know bank is realizing that they don't
want to wait for banks anymore they want to be involved in a crib block chain basically and start up whatever that perception is all countries all around the world are experiencing double digit growth in terms of employment all the money's going in all the investments going in here the whole world wants to see the disruption of traditional banking and finance and nobody wants to be a part of the legacy system so the s.e.c. realized that if they don't embrace this set then this every country in the wolves the want to disrupt street that wants to disrupt silicon valley and they would take all the jobs all the innovation and the complete reinvention of the financial markets so the s.e.c. really has no choice if they want to protect silicon valley with street and all the entrenched interests they have to embrace this which is really what came from this this whole you know big experiments the big point is now disrupting central banking . and if their employees come along and i'll start
a different will street with i.p.o.'s and now people are deciding that they the worst place in the world to be is silicon valley because you can go offshore and you can raise significantly more money than you can raise in silicon valley and now you know with a theory i'm not used to not being a security is opening up complete global markets and that's a real problem for the street and so the f.c.c. needs to make sure that they you know embrace it not before everything goes outside of america so walk me through what is happening let's call it jurisdiction shopping so this industry this crypto sh highly mobile it can move or ever the gestation is friendliest and there been a number of places that have said hey we want to be this what's a lot of crypto and that's about a fax what you want to say they want to be the so it's a lot of the isle of man where you are now has made kind of gestures in that direction you know honk on was in the running singapore's in the running can you
give me a bird's eye view of where the best jurisdictions are currently for crypto and how you see that because it is pretty dynamic and it changes every few months yeah i mean it's constantly changing and governments are making the decisions of where to go and everyone has to make a decision and every country will have to make a decision and i believe that crypto is going to shape the political future and campaigns and who gets them you know elected in the future as we can see based upon new crypto policies so you've got one approach which is do what china does china said that we're going to make exchanges and we're going to get rid of the mole and we're going to make exchange you know we're going to get rid of all the exchanges now the problem is that those people in china those who in mind and when you're mining a cryptocurrency essentially what you're doing is you're taking your chinese you walk you're investing in machinery and that machinery produces bitcoin or the cryptocurrency and once a. produced into because in another cryptocurrency east it can go anywhere in the
world and it can be traded for anything and so really what china did is they allowed the industry that really was the thing that was disrupting some of their capital controls and then they shut down the exchanges and when they shut down the exchanges what they did is they gave all the data all the money laundering dates all the idea of verification all the policies away from china so that they couldn't control that data and gave it essentially to japan and korea because japan is embrace in the industry and what japan said is it hold a job zahira for the growth this is then we better get control of the injury put put together some regulatory structure and actually then we can tax it then we can control the data we can regulate the exchanges we can find out what people are doing with the money because all the problems happen in this intersection between traditional see it money and create and so you've got those two extreme examples china realize all the innovation all the data went to japan and japan's become the
center of you know the days in markets or crypt and then everyone's looking at those and saying well what are we going to do with the f.c.c. you know america's audience to realize you know we are not as important in the world as we used to be we need to get in top of this before we lose all those streets silicon valley and the importance of the u.s. dollar and all the other little jurisdictions multi man switzerland as you state as he states it's. coming along and say well this is our opportunity if this is a global market we need to do is create a friendly environment to support these businesses we can get all the growth all the jobs all the business and everything that resolves around the disruption of the traditional financial markets and then couple that the fact that you've got big corn that is now given people the ability to transact globally without the banking system and then you've got stable coins which come along and saying well there's no longer a monopoly on the dollar bit fix can create their. concrete there and all and they
can just create a crypto currency bought by the dollar that then has to compete and you can decide which jurisdiction is right for you based upon your policies where you want to be you are in the world and that is a truly dramatic significant change in the importance of the wall street and silicon valley in the world now imagine bid for next there for a second and stable coins and they have what they call a tether which is a stable call and it's tied to the u.s. dollar the price remains tied to the u.s. dollars though volatility there they were just in the news recently a legal opinion came out there were some questions about the tether because the industry is moving so fast it's kind of ahead of the accounting industry the accounting industry has certain statutes that they have to comply with but as we were saying with the regulators they had no idea whether this was a fish a foul they had how to regulate it they finally coming up with some solutions the accounting industry is even further behind the curve than the regulators but tether
is an example what with what it what your view with with tether i think this kind of a hot button issue out there the question of their backing their banking backing the dollars ecstatic to have an opinion on that well i should disclose i am a shareholder in bit cynics in the same team that managed to fix matters tell us so i do i call him speak impartially around the subject. getting getting to the question the point is now private companies government and competing governments can now actually create their own innovation and now whether the innovation is like ted the way you have you know the ball is in a taiwanese bank and then the u.s. and the federal reserve train get in the way of the system and cause problems because they recognize this this and then you have into jurisdictional issues in clearing. she's no less are the stuff the friction is always in the fia money and
the cryptocurrency money what teather actually does is it produces a valuable service whereby money can flow into without volatility from exchange to exchange from jurisdiction to jurisdiction the challenge is is using the legacy traditional financial system and therefore you need to rely on trust audit accounting and the trust of the council polity and so you know that has its own complications and so it's not really a krypto problem is that silly problem and that is highlighting why people over time while people do need the you know everyone needs the ability to have valid you know have less volatility and when they're paying the rent or buying houses and that's where these stable points come in and if you don't like the way the cynics are doing it then another startup will come up with another model or another country will come up with another credit risk model and they can all compete and people can choose what type of dollar they want in the future how they want to
trends at and then ultimately what it does is it drives the value proposition the bitcoin which allows you to own your money spend your own money and have a monetary policy based upon savings rather than debt take a look at the exchanges as mt gox will open twenty fourteen there's been a lot of improvement correct yes so the exchanges are always going to be the choke point so the easiest place for governments to target and so there's a lot of innovation is happening around the first day i believe that there's going to be three different types of exchanges in the future and all of those exist right now you're going to have exchanges which fully comply with local jurisdiction and local regulations and the governments will get all the data and people that want to use those exchanges these days you'll also have wanted to set up in previously centric jurisdictions that allow for you know people to flow money three days in line with their local laws and therefore you know create a bit of a you know less seamless. arm an old whatever that might be and then you've got the
decentralized exchanges at the moment those are not usable they're not for anything but they get better and better and better and as the probes cool technology like lightning network and things like that again and betta you're going to see so much innovation look my full time job and banks of the future is to stay up to date with this industries and i cannot keep up with what's happening i know that right there are going to say goodbye but hopefully you can stay around for a second segment if you can but we'll say adieux is for this edition of the kaiser report with me max kaiser stacy ever think that our guest simon dixon the bank of the future could catch us on twitter account as a report and so next time. remember
when the political left stood up for free speech and equality for all in public life remember when the mainstream media called for the same the tone and tenor of political discourse appears to be the turning point if you don't agree with the left you face insults are rational and even violent. there. are a. ton of welcome to all to part for some in the west of russia staff a nation with large sporting events comes down to now for it putting a glossy facade on an otherwise ugly reality and instilling some money in the
process for some in russia it's a crutch just says the country is out of its chronic by development and enjoy the party putting the co-leader aside will the world cup have any durable imprint on the russia's economy and its society as well to discuss that i'm now joined by a prominent russian economist and a professor at the university of chicago constantin soni and the son is good to talk to you thank you very much for your time for her and now i know that your a big football buff and i know that you are very enthusiastic about the world cup in russia not as a way of bringing russia to do world but there's a way of bringing the world to russia particularly the provinces do you seeing all of these open this all this hospitality the smiles bildad all disappear in a few weeks or do you think it will be more lasting economists try to measure the impact of the world cups and one thing that we know is that they make people they make people this campaign this will fade to leave maybe in a couple of months or maybe in the year that's two people and i think any example
of open some tolerance by. to russia. is a good thing even for two weeks now like most economists i know you're quite skeptical of the state's massive presence in the economy because it's supposed to be. more corrupt and i suppose last efficient and yet the free take the example of the world. was primarily organized by the state it was a huge logistical challenge it is also a massive security operation it's a major hospitality test and yet so far all those conflicting priorities i think have been balanced rather smoothly what's your own take on how has the russian state say it so far as an organizer there was. intended to have a profit for the russian government it's not a project to prove that it's in project for people happiness it's extremely profitable because in general is very profitable.