tv Keiser Report RT October 29, 2013 5:29am-6:01am EDT
it's revolution time and this is what's happening in the u.k. from big coins berlin the value of bitcoin will skyrocket once people understand just how revolutionary it is that quote comes from being and of course that grabs the attention of many western viewers because they're interested in speculation and prices rising for certain things. but he's talked about the revolutionary idea of it you know it's interesting because russell brand is a very popular entertainer here in the united kingdom was on a very popular t.v. show new show and was talking about the need for a revolution but he had no way to implement that revolution he had no ideas other than to say that people are upset and need a revolution which i think is pretty well understood what he failed to mention is that bitcoin is really that revolution it's started in two thousand and nine and it contains within the bitcoin protocol the seed of the revolution i call it the
currency of the resistance it allows people for example in greece or other countries to create their own economy in ways that they want their economy to work for them outside of a centrally controlled centrally planned economy like you have in the britain or you have the united states controlled by kleptocrats a completely avoids all of that so i would hope that somebody like russell brand or somebody like this who has the the eye of the media to step into the bitcoin arena which i think this will happen shortly and then you'll see a bit coin trading of a thousand two thousand five thousand ten thousand rick fox sr does an excellent analysis he predicts the pick will capture between one and ten percent of the global four x. market which implies a prize of between one hundred thousand to a million dollars per bitcoin speaking of the price rising this is the next headline here from a hedge fund or fortresses novogratz will be quote worth a lot and this is michael novogratz he's the chief investment officer for fortress investment group. which is a fifty five billion dollar hedge fund and he says put
a little money in bitcoin come back in a few years and it's going to be worth a lot oh well we became aware of bitcoin what it was about a dollar a bit coin we recommended it to viewers of kaiser report when it was five dollars a bit going it's now trading close to two hundred dollars a bit going to spend the best performing asset in the world bar none but this fortress gentleman mentions he's a hedge fund and a private equity fund manager and he understands a big point is down asset class stocks bonds gold so over real estate bitcoin it is an asset class so every single one of those ten thousand head phones in the world are controlled trillions of dollars will need exposure to big point if they want to remain competitive that's the bottom line so these hedge fund will start nibbling into bitcoin and of course barry silbert second market in new york has the bitcoin investment trust or b. i t. that makes it easier for them to buy into bitcoin they will start outperforming their peers and then their peers will have to get into big point as an asset class
and that's when you'll see them move into five and six digits now know gratz says the reason why he sees it becoming worth so much is because of growing and as a payment system displacing credit cards and pay pal and the likes of this especially in the developing world he says so this is what we see in this next headline big queen currency two point zero and this is from deloitte and they mention the fact that it is growing widely across kenya for example it's being integrated with the m peso system which is already a system of paying for goods and services with the mobile phone so being integrated into that system in china you have by do except in between so they were to have a mentality not part of the sort of feudal system where only the lords of banking can tell you what you're allowed to spend and how much interest them blah blah blah you're allowed to spend but so they look at what happens when it gets adopted here in the west point if bitcoin were to achieve the mainstream adoption some believe it is capable of the implications to. retail banking would be seismic with
declining demand for traditional banking services like cash storage payment balance checks international transfers into foreign exchange to name a few right well there is one empire in the world the american empire it's backed by the us dollar and the us dollar sixty percent of all global transactions and commodities like oil are traded in dollars and other commodities and this dollar is backed by the u.s. military and in places like africa where they're trying to control the oil which controls the u.s. dollar and funds the u.s. military there's an enormous warfare going on sponsored by american operatives like the cia and these other folks to keep the petrodollar alive and well so africa naturally wants to be colonized from the american empire and the other of these states china as well by adopting big coin so big coin is really the currency of their resistance and the revolution this is what i think russell brand misspelt to
see are all other celebrity pundits i fail to see the revolutionary aspect of bitcoin so it's great for after people in china who are worried about the dollar being debased by all the quantitative easing happening in the u.s. are flocking into big going to see the same thing in india we see the same thing in venezuela we see the same thing in cyprus famously when their currency collapsed and they poured into big going in the price skyrocketed well i think in africa and china it's not so much revolutionary since independence these people don't have the feudal lords of banking there they're not in a system where like this here's growth fears as credit cards drive recovery so we know the g.d.p. numbers here are up everybody is saying recovery is here well business lending is down four percent you know what is up by thirty percent personal loans what are the personal loans on credit cards so here we have a system where you're being charged twenty thirty percent for credit card loans on zero percent money that the government gives to the banks central banks give to the too to big. fail banks the the six banks that control everything here just like the
six energy companies that control everything with bitcoin they're saying you could live outside of the banking system because kenya and china many of these people already live outside the banking system and they're proving that they can have their own g.d.p. growth their own economies without any of the j.p. morgan goldman sachs there in the first place right well the pound is a housing stock pound just like the dollars of petro dollar pounds driven by housing and housing speculation eighty percent of the economy if you take the financial sector and the housing sector and all the sectors that support the housing and finance sector eighty percent of the u.k. economy is based on house price bechtel ation only thirteen percent is actually small medium enterprises so people in the u.k. who want to escape the colonisation by banking do by bank and real estate developers and they want to avoid a repeat of the two thousand and eight crash which is baked into the cake there will be a spectacular real estate crash it's in the pipeline here in the u.k. it'll happen within eighteen months they would want to adopt bitcoin into their day
to day life immediately as a way to preserve purchasing power and to get out from the colonisation from real estate speculation and city city speculators so you're saying that it's the acid not the basically the modern day acid now which was the currency during the french revolution which of course is backed by the real estate of the the church and that went the same way that perhaps the revolutionary currency and times of the you can remember and during the french revolution the acid yop which was the currency of the time backed by real estate similarly you see had funds confiscating real skates through mortgage fraud in places like the united states and then trying to convince people of the dollar is now backed by hedge funds speculating in real estate so it's become the asset not of our day that famously crashed and then the rest went into a deep dark frozen period of no growth whatsoever which is awaiting all except for those who are fortunate enough to have positions in bitcoin gold and silver but now go back to bitcoin of course c. and b. c. and many financial tweeters on twitter you know they only to. about it when the
price is either crashing or going up fast that's all they care about is what the value the price the exchange rate to the u.s. dollar is now he's saying while. they're saying well why the while the currency itself the future is not completely certain and they say for now though it's not the price of bitcoin we should be watching but the real case studies of economic value emerging for those who choose to try it it's a money game after all and regulatory hurdles aside the survival of bitcoin will ultimately be determined by the true economic value it offers so people can choose to use it it's not force the state doesn't back at the state doesn't come to you and tell you pay your taxes in this transact in this use this you get to use it if you want there's a giant flourishing economy in kenya and china emerging around this you can use it or not and this is what they're saying is the economic value behind it well the trend is higher and we talk about the price and price movements people always make
the same mistakes they tend to so low and they tend to buy high and of course you need to discipline yourself to do the exact opposite buy low and then if we're going to sell sell high but when the price goes down people get all fearful they say oh my god it's going to go lower so they don't buy and then when prices go higher they get all fearful that oh my god the price is too high i can't possibly buy now the price is too high most of the people who are on the sidelines not buying big coins today will start to buy bitcoin when it gets over a thousand and then a greater percentage of people will definitely plough into bitcoin when it starts going over ten thousand because then the greed factor will kick in and people realise that oh my god i'm missing the boat and most of the economy around me is crumbling only bitcoin is going to survive max and stacey correct rick was correct . tony good luck gallant gloopy was correct in recommending bitcoin and now they'll come into it. some stage but they have yet to come in they will
though because it'll be the only game in town so many people calling for revolution all are also go around carrying photos of oh chairman bernanke they believe in the system of the central bank system that the authorities tell you where you're allowed to transact well here we have this system where those sort of people said let's move our money that will help us that's our revolution when the financial crisis first happened let's move our money here in the u.k. like seven million people are customers of the co-op bank that ethical bank well here's the headline for you max bond holders poised to seize control of co-operative bank cooperative group admits plans to rescue banking arm will be material different to original proposals with bondholders including two hedge funds poised to take control of the lender there are two u.s. hedge funds ereli s. and silver point they have now they control seventy percent of the bank thirty percent is in hands of the ethical part so there you have it that's what happens
with the ben bernanke system reset on the show many times the move your money campaigns whether it was in the united states or france or foolish because there is no bank i mean from what we've just seen the co-op bank of hedge funds simply came in and stole all the money there's only one refuge well there's three refuge there's gold silver bit going that's it if you're looking to dig capitalized banks and preserve your sovereignty your personal economic sovereignty you have those three choices gold so we're going full stop so if you ever think about being on the kinds of work i think you mix all right states in for the second half a whole lot more.
torch relay. on r t r g dot com. welcome back to the kaiser report imax keyser time now to turn to simon dixon of banks of the future dot com simon dixon what will the kaiser report thanks for having me max lots of to be all right fantastic simon dixon the u.k. has introduced new legislation dealing with crowd funding and peer to peer lending tell us what we need to know about these breaking developments so the u.k. was the founder of equity crowd funding and crowd funding and so with the f.c.a. a currently in consultation with all the platforms and all interested parties to put together of the rules and the regulation for crowd funding moving forward the important things is the very insistent that we keep the crowd in crowd funding
because at the moment for existing rules for the financial conduct the authority they're trying to make it a game for the rich and just what they call sophisticated investors ok so there's basically three types of crowdfunding there is the rewards based crowdfunding people are putting you know pledges of money they get maybe a t. shirt or their name on a credit we had george galloway on the show recently he raised one hundred sixty thousand pounds for a film that's a rewards based crowd fund then there's peer to peer lending which is another innovation here in the u.k. i believe zopa was one of the first if not the first or one of the first to allow people to lend money to each other outside of the banking system and then there's equity based crowdfunding and of course you're one of the pioneers one of the leaders back to the future dot com and so distraught over the fight or the consideration now is to keep the crowd in crowdfunding as as you point out you don't want to have a just for sophisticated investors million pound net worth or two hundred thousand
dollars in income etc you want to be able to have people put up small amounts of money you know it seems to me that this country people throw away two billion pounds a year on gambling and why don't they put that toward. investing in companies and creating jobs simon well i mean that's the whole point because about in the u.k. about sixty percent of jobs come from the small to medium size and price sector and almost all of those jobs are created once a business raise raises finance so if you can get more finance into the s. and me sector then you could channel that two billion pounds of online gambling into something that can potentially make the person wealthier by having assets and learning how to invest at a small level and also the potential of the business creating jobs and reviving the economy you know it's interesting because in this country forty percent of the g.d.p. is time had directly to the banking sector another forty percent is tied to centrally real estate real estate sector and that seems to be where the regulators are really
concerned with that they're concerned with the status quo with the big banks the too big to fail banks and they're not surprisingly they're not really coming to the into the into the picture in terms of aiding the creation of new corporations using this this innovative technique other countries seem to be jumping in israel and australia the united states is going to have passed laws and so other countries is the u.k. potentially going to miss the boat here well if we don't get the regulation right then we could you know end up losing it to another country and so far the f.c.a. of saying in the consultation papers that they've just released the showing some kind of movement towards making sure that this isn't a game just for the rich and wealthy we have to remember is that they've built their regulations based upon the banking system and a bank has kind of three fundamental reasons the banking license gives them firstly
they own deposed as money they become the legal owner of the money they can spend the money as they wish and they actually create the money in the first place where people just don't want to reiterate so when you get to plus you need a bank. they own the money yeah that's what a bank in the us and so as they become the legal owner of the money they can do whatever they want with it they can spend as they wish and allocate it through who they lend to and they create money from nothing through the fractional reserve banking system in other machinations yes so this is them israeli is it any wonder then that the economy is in the in the u.k. you see a four percent decline in lending to businesses and a forty percent increase during the same period let. alone is being created through credit card loans etc they seem to want people to get into debt in a way that's highly detrimental to people they don't want people to own anything in this economy they want to be into debt that's the whole focus of this economy get into as much debt as possible well you have to remember that when banks are
allocating essentially more than ninety five percent of all money through when they create credit and they issue loans they get to say where you know where all the money is going if you look at the big five banks in the u.k. forty percent of the loan book is allocated towards property which is you know reigniting economy temporarily based upon asset price inflation the other forty percent goes to financial speculation and serving the financial markets only thirteen percent of it goes to small to medium sized enterprise the thing is unique about the small to medium sized enterprise is over sixty percent of our jobs come from and also it's where you know productive noninflationary value can be created in our economy so you know while we could have regulations to make sure we keep the crowding crowd funding we would have big change to happen at the bank because that essentially allocating the life blood the money of our economy all right i want to kind of change gears a little bit here i see crowdfunding as an alternative to the banking system the
way it is using tools readily available tools i mean famously russell brand was on t.v. recently calling for a revolution it seems like crowdfunding and bitcoin are part of that red. illusion these are tools that people can use right away to get around this entrenched kleptocracy in the city of london and apparently the regulators are as they are united states clearly i'm not i won't speak for the ca but clearly f.c.c. we're not watching porn in the united states they're bending over backwards to help guys like jamie diamond and lloyd blankfein who are just serial law breakers and criminals but here in this country there's been a campaign to move your money and this is happened here it's happened in the united states people decided you know when taking money out is too big for the too big to fail banks the big four here in the u.k. and put into a co-op bank and then a co-op bank because of being attacked by these banks you know they tack it they look through the full loans they forced it into into problems then now the hedge
funds have bought co-op bank so. it is is are so that the bank now has is felt owned by a hedge fund would have what are your thoughts well you know the unique feature about co-op is that it was originally founded to be a social bank and a social bank means the if you're going to allow a bank to create all of our money and if the banks of directing all the flow of all money then why not have some kind of ethical stance to put it into things which are socially good for the economy and that was the original stones now co-op has got itself in trouble because it's operating off the same unsustainable ponzi schemes the existing banking system operates off therefore to rescue them and i was in parliament discussing with some of the m.p.'s that were questioning the c.e.o. of co-op recently the hedge funds have to come on now the hedge funds they have no remit for good they have no remit for the profit cost so therefore when the
owners become the hedge funds what happens to the social mission and where does that money get directed right so as we've been saying on this show for years this idea of moving your money from one bank to. another is like rearranging deck chairs on the titanic i mean you're not really moving your money anywhere it's staying still within the rubric of an extraordinarily corrupt system whereas p.d.p. lending crowd funding rewards based as well as equity based is a genuine alternative to this and the f.c.a. the regulator here in the u.k. seems to be dragging their feet on this other man m.p.'s now that are supporting it and can possibly put up mount a credible pushback and to overcome the ca's resistance other m.p.'s in parliament right now that are in your campus actually. as well as running a business of spend a lot them once on meeting most of the m.p.'s of course u.k. parties doesn't matter whether it's lefroy middle whatever. they have
a remit increase jobs and they see this as a real viable stimulation of the economy and you know and so they've we've got lots and lots of support so full we've there's been a. release the parliamentary group headed by barrie szymon m.p. to make sure that we keep the crowd in crowd funding george galloway has shown great support on your show and many other m.p.'s are getting behind this as well because really it is a way because we know crates of money we know owning your money we're not deciding where the money gets directed this is the democratization of in investing this is financial inclusion and if we take this to where it's meant to be this is for the first time in history who gets funded reflects the values of what the people say you mention george galloway where now exploring ways to fund a million pound fund using crowdfunding for his run to become mayor of london and of course there are considerations to be made but we are now in the process of
looking at that there's a different crowd funding sites i myself have started a crowd funding start called start joint which is launching in december and we're going to definitely be supporting. that galloway run for mayor and this idea to raise a million pounds and of course there's going to be local considerations for way funds are raised for politicians except for a but here you have the possibility of using essentially a capitalist tool all of free market enterprise joined up with democracy to put somebody in office who's going to be working for the people not somebody like a gallo not somebody like a cameron or george osborne who clearly are in the pockets of big business and don't give a flying hoot about the people we have to remember is crowdfunding was a point transparency so who is actually investing you get to see who is voting with their wallet you get to see. because you're keeping the amounts really small so you know through back to the future you can buy equity in a business or start off starting from as
a list ten pounds it allows you to complete financial inclusion for those a very low level so the potential of crowdfunding not just for businesses but for politics and all sorts of other iterations for social businesses is a real force for good i want to again change gears a little bit mark carney who's now the new bank of england head he's just announced that the bank of england will begin buying ever a lower quality of assets from commercial banks another word the bank of england's balance sheet as it ben expanded by four hundred percent which is the biggest expansion of ever any central bank in the world they went from something like four hundred billion dollars in debt to four times that amount and pushing over a trillion dollars of the toxic debt that they're holding on the balance sheet now mark carney wants to push that to above nine trillion pounds worth of toxic debt is this going to work well again this is kicking the can down the road a little bit further with c.m.
right now this is policies designed keeping the status quo to keep the ponzi scheme the fractional reserve banking system alive to give it a bit more injection to take it a little bit further to him. properties a little bit more so we can keep more of the status quo but in the end has to come to an end i mean isn't mark carney just a hedge fund manager and he's trading the balance sheet of the bank of england like a hedge fund manager trades the balance sheet you know money they have under management they're pulled gaming the system they're looking the around the globe looking for easy money easy trades they can borrow money at zero percent interest rates they keep the banks keep all the profits they're not lending in the economy blending into the economy has dropped four percent whereas the spec of the bubble in real estate is out of control now and wages of course are not or less than one percent but anyway so banks are the future dot com it's. available online right if you want to find out more we're like oh yeah right now we're going to bring to the future don't comb one of the things we're doing right now is we're actually eating
over in dog food with actually crowd funding the growth of all companies so that we can become an investment bank first crowd investment bank and rather than giving out to the venture capitalists and giving it to the institutions we want the people decide whether that actually happens to meet that's the way to do it yeah right time edition thank so much for being on the kaiser report thank you and that's going to do it for this edition of the kaiser report with me max kaiser and stacey herbert i'd like to thank our guests simon dixon back to the future dot com if you like good touch please tweet us a concert report until next time ask out of saying by you know. there's a so we leave the. oceans to the. visible . shoes that no one is there with to get that you deserve answers from.
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