I was giving to the audience of the other headlines so what do you have to say about that oh somewhere in everyones collective minds are all the passwords to all the crypto everywhere it will rain down on humanity billions and billions of dollars as we collectively reach the password needed to unlock mark to post over there about god she is going to be a billionaire this year thanks to being the magic of pseudo should not go to people who have lost their passwords need to go to hypnotherapy immediately and unlock those passwords using the magic of hypnotherapy just think about the password where you were at the time you were engaging in that word own luck your wallet and you too can be an instant billionaire ive lost so many passwords over the years somebody bitcoin giving away so many but i dont care anymore because the world is changing profoundly due to blogs and crypto bit coy in a way that will name the end of jamie diamond and his tapeworm vent to see is i dont need money love. Actually theres you know if you go to read it or various bit talk forms youll see a whole series of people were linking to their big queen on the block chain saying help i got these hundred big queen there and like twenty ten and they were only worth twenty dollars and i lost the password can somebody help me get these thats amazing its so biblical in some way you know theres a pilgrimage people go on through their minds trying to find the touchstones of their own lives to unlock the past for for the big coin. You know this is going to go on for another guy very like one hundred Million Dollars on a limb still because it was strapped on his hard drive well actually i was going to mention that he is actually offering now a ten percent to anybody who could help him get his hard drive works in there itll soon be worth a billion dollars and you know just like i go on Treasure Hunt and they go down into the deep blue sea looking for Hidden Treasure and wrecks with lotsa gold on there you know theyre going to be digging through the landfill to get that hard drive well you know there was another gift and that is the tax reform but were going to get into that the next episode because you talk to Michael Penta when we were in new york and im going to save that for the next episode but because were talking about in the second half you have a very fascinating interview with this guy with about handbags and michelle locks going to really love that interview because i want to talk about stores of value because this is been a big debate thats been raging obviously this big cash because mine. Versus bitcoin cast all these sort of is it a store of value is it a means of exchange what is because well investors are dumping gold to buy bitcoin say strategist a key trend of the gold market has just been broken and big going could be to blame the gold miners e. T. F. D. D. X. Is falling nearly fifteen percent from its september highs while gold has plunged to lows unseen since the end of july. This is curious says Larry Mcdonald head of u. S. Macro strategy at a. C. G. Analytics as the move lower in gold has also been followed by a move down in bond yields which according to the strategists is very rare of course after this article it did kind of swap a little bit bond yields are going to rise and start to rise as well but yes well weve been saying this for quite some time there is a move out of everything into bitcoin and this is part of the big black hole is pulling gold right now gold and silver is being pulled into the big black hole because its a superior store of value centrally and nobody wants to carry around pounds and pounds of silver in kilos of goals that really you know i mean when you can put all this on a thumb drive or memory wallet and then lose the memory wall and then end up in a landfill picking through diapers looking for an old hard drive so he says that there was an eighty two point five percent correlation between bond yields and gold and that spend broken at the moment because of bitcoin is what he blames he also sees that theres more Downside Risk to gold because he says if you add up all the cryptocurrency and the liquid gold that is in the market right now the cryptocurrency is a market cap are now twenty three percent of the liquid tradeable gold that is up from two or three percent a year ago so crypto currencies are definitely eating in to the gold play well you know gold is not a finite supply you know theyre adding to the tons of gold mine every year hundreds of tons of gold added to supplies supplies expanding in twenty eighteen what will see our Central Banks adding big oil into their Strategic Reserves alongside gold so big gold buyers like china and russia will be adding bitcoin to their Strategic Reserves some banks possibly in venezuela they could completely change their fortunes and the global economy. By switching over to crypto switching over to bitcoin and then that will set a precedent for other countries to follow suit in fact both garia has like three billion dollars worth of big coin that they seize from some scam so thats actually the benefit you know in the early days of bitcoin one of the things that was often said by governments who said or threatened they were going to shut it down or attempt to shut it down was that it was you know a haven for you know no good do gooders like drug runners and drug cartels and hitman and all that sort of thing but a heart of those people a lot of the scam artists on line scam artists and shakedown artists are based in places like bug area romania so the fact that they get to seize the assets of these bad guys you know you become a safe haven for bad guys and you can seize all their ass thats right its not a bug its a feature look im talking about bad guys and money launderers and evil doers and crypto currency is lets not forget the twenty to thirty trillion dollars held offshore unaccounted for by any Tax Authority that money is always looking for safe havens that money is always buying fine art and yachts and that money is still inching its way into bitcoin thats another you know ten thousand percent gain right there from current prices then youve got the hedge funds nibbling at it then youve got more apps like the one from. The cash you know the people over there where square you know theyve got a cash you know thats going to compete with coin base and itll be millions more people getting into it you mentioned hedge funds hedge funds are pulling out of gold and seeking thrills elsewhere hedge funds are pulling out of gold bets as more exciting equities and crypto currencies make safe haven investments boring Money Managers cut their bets on a bullion rally at the fastest pace in five months as prices headed for the worst quarterly loss and a year speculators are throwing in the towel as the metal failed to sustain the gains that took futures to a one year high in september of course throwing in the towel is a good time to start investing. Right there is a concept in investing called capitulation when all the sellers have sold theres no more sellers left you know and then any buying on the margins will start to rally and you start the whole process over again on the bull side so i think twenty eighteen actually in a contrarian point of view will see gold it all time highs which would be roughly a sixty percent move from here lets say which is not very interesting if youre a crypto is enthusiastic but nevertheless it would hit a new all time high yes some of the old coins especially because theyre lower market cap. Will rise like up to seventy five percent in a day so its pretty crazy but speaking of bitcoin and hedge funds bill millers hedge fund has half of his money and big queen bill miller is giant in the investing space he was at legg mason for thirty five years he founded their s. And p. Five hundred Investment Fund at legg mason and remarkably he says that there are fifty percent in bitcoin right now partly because of the price rise he got in i guess and before six thousand dollars. Between a thousand and six thousand dollars he got in and its because of the price rises now makes up as a percentage of his fund its fifty percent bill miller was beating the market for decades and then he had it down here for a couple down years he kind of retired and now hes reborn rising like a phoenix in the crypto space and as his performance numbers come in look pentair a capital i think is the name of the group they reported twenty four thousand percent return on their crypto portfolio versus lets say quantum fund which is george soros and jim rogers they were considered to be one of the best minds in finance they generated Something Like a forty six hundred return percent return over the life of that fun approximately ten years theyre considered geniuses here. Tara returned twenty four thousand percent in less than three years or maybe just for one year so this obviously is going to attract that multitrillion Dollar Hedge Fund market plus Money Managers like bin miller plus sovereign wealth funds remember that some more trillions of dollars waiting to be invested in crypto plus the Central Banks so the amount of buying pressure ready to come into the space is in the multi hundred trillion people are piling in and now theyre piling in against the likes of bill miller and all the early holders and the the people who have been around in the space who have survived at least five or six down markets of fifty sixty seventy up to ninety percent so people are piling in and i do notice something thats happening is that theyre just looking at the price of whatever a small whatever one of the thousand all coins or tokens is and theyre thinking all of it will go as high as big corn and they missed the big coin ride so theyre going to invest in anything thats under like one hundred dollars and hope it rises and there it has of course as they all pile in its their tiny markets and the pile in and drive the price up so there is a bit of a. You know speculative bubble going on there in terms of some of the coins well you know people compare lets say light coin sharlee at least going with silver and bitcoin being the gold of the space and then interesting comparison there because if you follow gold and silver you know that when gold moves so over will react more aggressively on a percentage basis and i think Going Forward anyone whos interested in this point is a core position and you nibble away at these other coins but you need to own as a core position because and then learn as much as you possibly can about bitcoin then you can learn about why these other coins are different than bitcoin but because it is the gateway into this whole universe and you must begin there well you as when you were a banker you saw that. Lot of people would say oh Warren Buffetts shares in Berkshire Hathaway are way too expensive its like three hundred thousand dollars thats too expensive to buy all the nineteen early one nine hundred eighty s. They were at two thousand and they were considered you know a lot of brokers i was working on wall street was saying are you kidding its too high you know now theyre pushing you know three hundred thousand dollars prices really a meaningless metric in many ways. But that unit bias as some call it they say because of the multi tens of thousands and this ones it eight hundred therefore its cheaper thats not correct theres no correlation between price and value and you say cheaper i like that and i want to say the correlation between price and value that will offset the bias towards lower prices our friend michelle lock over at miss talk dot com thinks that buying a coach hamburger or Something Like that for sixty five dollars there was a famous bit where hes like look why are women spending twenty five thousand dollars on this jerk birkin handbag guess when you can get this one looks perfectly fine to me for sixty five dollars yes and you do talk about this in the second half but before we go tell us what is that password stacy is my goddess stacy is my goddess hyphen slash five seven four hyphen dot net stay sing. Well stay tuned for the second half were going to be talking about and banks dont go away please. In some American Cities the police have built themselves cling to reputation people who walk on the street to be United States who are at risk from the very people who are supposed to protect that people are no more afraid of police than if. You can see something happening he says like i dont want to call the cops let that happen resident call the cops in those young black men lose their lives chasing the same goods on the trigger you never know better safe than sorry i dont know that someone else is going to gun so yeah unfortunately around and around here we end up killing our guns off the death toll from such precocious place to be like when we. Welcome back to the kaiser report imax guys are the day after Christmas Show where santa claus get you its sad to bring you one of these oh this looks nice lets learn more about it from jeff burke jeff welcome imax could be in new york current jeff burke will talk about handbags in the birkin bag what is the broken back phenomenon from a business point in a fashion standpoint this this bag was conceived by arm as far back as. This is sure is named after the famous celebrity actress jane birkin allegedly made by irmas on her behalf but what this bag has done it is rained World Champion of luxury and sophistication to women around the world if you are a guy who deals in bags types about high end bags if youve got i guess an instagram presence yes we do and a quarter you say you do fifty five Million Dollars in revenue since two thousand and one two thousand and twelve to two thousand and twelve excuse me in bags yes and this bag would go for what in your market in our marketplace. If someone walked into ermas and bought that at the store which is otherwise impossible to do thats Twelve Thousand dollars beg the customers around the world that want us to get that on their behalf depending on how hot the color was thats a hot color theyre paying us between eighteen and twenty five thousand for a Twelve Thousand dollars and this is a limited edition obviously bag right that mean they theres all broken bags they sure are these are variations on that theme thats right so and its own broken get a kickback on all this Jane Birkin Jane bird jane burke and i. Dont apologize she sold the rights to the company years ago really yeah ok and so this is the reason were talking about this today is because. You know this goes back to one of our. Mike said locke who we had on and he said he couldnt believe that women pay these prices and collectors pay prices for handbags. These extraordinary levels but why not i mean these are these are socially collectibles right yes and theyre in high demand super high so why wouldnt people pay up for them i mean its really as far as erm is concerned its not just a question of ability to pay its how they select the customers that they give the opportunity to pay for the bag you no matter what your celebrity status is or affluence you can just roll in urban and say hey im wealthy what i hear about this broken back is i want to buy one today why not theres a very limited supply the one in your hand im going to have to guess takes between forty five to forty eight hours to make those handles literally takes six hours to make of rolling on a craftsman only so what that is a very limited supply and what her mrs has is an articulated system that theyre saving that Twelve Thousand dollar bag for the v. I. P. Customer this coming in to buy fifteen to twenty five thousand dollars of other stuff tabletop bedding apparel things like that oh right ok and what is the pay to pay to pay system the pay to pay system is something weve coined about what i just articulated to another example is this bag right here is what is called industry was an exotic being crocodile alligator ostrich it has a us retail of about sixty five thousand dollars and in order to be able to get the opportunity to buy Something Like this the customer is going to have to be spending in the store sixty five to one hundred thousand dollars and other stuff in that calendar year in order to be offered the opportunity to buy one so now were going to an idea how this all works and this is another variation on it what they tell us about this fabulous bag this is this fabulous bag is actually a fabulous bag if youre a birkin geek its a color called the goon and they only made it for a few years and they stopped i think in two thousand and nine and when i gave you that estimate before that someone pays us between eighteen and twenty five even though this is a used bag in our. Which is an unused bag even though this is a used bag the color isnt super high demand because they simply dont make the color anymore and women are willing to pay it for used bag because theres no woman who got this crazy color who didnt use it so the opportunity to get something in the news condition is almost impossible is it is the market primarily women oh yeah and men buying on the back for their work for women ok and so if this is do people actually go around the street carrying a sixty five thousand dollars bag i hope were not in the rain. And this is alligator so it should do well i suppose. You know a lot of people talk about the birkin is an investment and i think i dont know if its technically an investment but you do have to treat it well if you want to retain its. Right and this is is there like you know collectible cars or ferraris and whatnot there are certain years that are better than others vintage years yeah design applied to this market i would say that the irmas birken customers a parallel universe to the guys youre talking about that they could sustain something how does a nine hundred sixty seven mustang still worth ninety thousand dollars guys who support the marketplace i would say there isnt so much of into year for this stuff as much as there are vintage editions you know this for example to go and i told you about it was a very short run that this particular color was made so its more the collection in the color than the year itself so how did you get into this ive been a luxury in finance my whole life provided a. B. L. Financing to some of the biggest retailers know she has companies in the world and we took a lot of merchandise in possession back reselling it and my wife started taking around on e bay and with watches and jewelry and we sold a couple of these for girlfriends or is it needed money at the time and she was just blown apart by the feedback and she took a quick analysis like who are all the second place people out here doing that they seem to be like women with a not so great website and maybe on e bay and that was likely to thirteen and she said you know no ones doing this on instagram and i could figure out the hash tag of house tag birken hash tag thirty five centimeter birkin on and so forth and she started buying and selling them and she had a theory on how to execute and thats where weve stayed ever since and is so similar to my situation your wife is the brains of the operation. Absolutely. Lets me stay up front while shes moving every way all right so how do people know that youre going to deliver such an extravagant product you know whats the trust factor you have like a Rating System how do you how does that work you know thats and also question it was hard in the beginning because. We were always forty percent of our business is international thirty five percent it was just the middle east alone so yeah even today as big as we are and we have a superior reputation in this genre you know what makes a woman in buenos artists take that leap of faith to wire a seventy thousand dollars without using their credit card and its every single woman its a sophisticated customer generally theyre a highly educated customer and they do their diligence and what we do is real and our service is exemplary do you buy bags thats our difference if i if i say so one of the things were known about is our superior collection theres tons of people around the world who do what we do and a lot of them will have friendly relationships with do you have a black mat so black yes we do a trade a back and forth to do you have the biggest market maker in the world in these bags we by accident set up an International Trading platform on our Instagram Account where buyers and traders could move products in and out its amazing to me that you create such a big market on one style of bank i mean in our maze do they do other styles of bags or is this their signature back sure no theres a few other bags that we still still sell a mask is for its called the kelly and it constance and theres less down the food chain in those other. Least expensive bags you can go by there was a dermis so there isnt the inaccessibility for this or the mystique that this bag is there remains to be the big bag in the big name of banks and for the forseeable future really they wont change the way that theyre doing business and they wont change this pay to pay system that they had because their wall street stock darling you must be aware of this i mean the cast such a huge shadow over prada you know the amazing caring and its a lot because of this mystique that they have this is a james for ownership product jane birkin the wife of sarahs games borg that jane birkin the jane birkin the is that the right jane burke actress musician cultural icon the english one french shes right a french guy james burke and shes american she was right to the series games board i believe i dont know if well find out more details about this and do you have any personal favorites yourself do you follow this market or are you just basically. Will you expand into anything else are you going to stay pretty much in this in this area would it be an expansion into something Something Else more and more a guy centric for example is clearly very female centric is there anything else that you would look at its an awesome question its a debate that we have almost every week you know what do we do you know we have a community but by my metrics and i do a lot of research irmas is very cagey they dont give out. Production data they dont talk about what they do when they do how they do it but by my Long Research even though im proud of what we didnt i believe we have less than five percent of the bags that are being bought and sold all over the world i think we have a lot to do by just getting off instagram but as a man i appreciate her mrs commitment to quality i appreciate them as a company ive got enormous briefcase that ill never sell so theres a very few i just dont have the same cachet youd be surprised you know my wife put up my briefcase a couple times that we had some pretty aggressive people. Asking for what what what is the future of this whole market do you see it is it totally reliant on the Luxury Goods Market in other words it luxury have you seen during twenty twenty two thousand recession for example how did that impact your business although you came in a little later than the genesis of this is two thousand and twelve i was up to my eyeballs in the luxury whose business in two thousand and eight i have a lot of comments around ok dancer question about this point Going Forward i think the real future for luxury isnt so much as the fashion consumer i think still we and someone like a philips auctions whos done dynamite with the collectible watches just to death whole new monroe looks like seventeen million i dont want to say were recession proof but i would suggest that our customer and the watch auction customer is almost impervious to this and what these people are spending big for now we set the world record for three hundred thousand dollars back last year in the wall street Journal Broken with these super one a willing to do and excited to do is get something that nobody else has its not so much a symbol of getting this bag carrying it is. So much as a symbol of im wealthy i can do this i have a competency i know how to get it right and they hold their value pretty well super well so then an idea like on an annualized basis what the appreciations band any numbers on there is if you went and googled. Birken is an Investment Fund thousands of articles on how its outpaced the s. And p. Residence in the last thirty years outpace gold outpaced oil. Its all true the bag right there is a used bag also that white one and that was probably a five thousand dollar back when it was made in two thousand and three and were going to sell it for nineteen so take that for discard people find a way to do it on a stick around muscling the interface starts off instagram but theres a whole Community Like these car geeks were talking about this whole community of blogs and forums where women are going on twenty four seven all over the world can you trust this reseller have you had experience with this reseller fair enough jeff thanks for being on the show thank you also and thats going to do it for this edition of the kaiser report with me max kaiser and Stacy Herbert like to thank our guest jeff burke hes the man with the bags if you want to reach us on twitter its guys report until next time. Grass cutting existing that way tonight in. The twenty list thats. Kind mean you when you get to court what if you dont see it but when you dont need you to brush snuffed out with. Oh. Yes yes to. Check. Dont. You think some jewish when you might. Just figure. This thing discussed at the custos moon just over young. President Donald Trumps two thousand and Seventeen NationalSecurity Strategy report tells us how he sees the world or rather how the washington Foreign Policy leads to clearly washingtons neo cons are running the show. That come to call russia no one has ever no one has ever had a country never even heard about mosco. Live. Life among the ruins people in mosul speak to all t. About their struggle for survival five months off to being liberated from an islamic state. At the side of the highland of the old and you know god you are the rock you madea. The Russian Foreign minister describes americas threats against north korea as an acceptable cheering phone call with washingtons top diplomat. And an israeli politician is filmed unleashing a borrowers of insults of palestinians on their way from gaza to visit their relatives in israeli jails