And then think only by b. Quietly using them from the seventys but the normally revolution if you feel about the beat going like bachmann for structure its the warmer all the operational expenses and this is the reason why instead of the c. P. U. The speech for g. P. U. Because the working more efficiently and consume less Electrical Energy and then they go to f. P. G. A. And right now all the new cities using a seems ok so theres a bit of an arms race in the technology of big client mining and in china of course you have huge players who not only designed chips but they also have a lot of Energy Available to them and they dominate with between 40 or 50 percent of all the mining depending on how you look at it is is that concentration of mining in china is that an accurate description and is that going to continue in the near future and is the new coronavirus does that threaten chinese mining in any way. 2. Is forced chest like the obstacles for china because see if you look equal in the economy grow green cloth to be in 2 years we china is most lost and growing economy and then you have the fossil growing on me its also quite a lot of electric kind of the build a lot of the bridges they build a lot of electrical stations you know make their stations and this is a reason why they have resources just to like ron the Mining Operations and in china because they have better composite see right now approximately like ports see maybe 50 percent of the Mining Equipment operating right now but during that time i think these distribution will be changed so right now people just doesnt really trust their government because the government doesnt have to be nations about the money that you have doesnt have to be very good prices for a piece that doesnt get an out capacity because the idea that big coin is becoming the new gold is becoming gold 2. 0 still hardest money thats ever been weve ever been and ever seen in. Manatee it seems logical that eventually states governments will begin to add to their gold reserves so countries like russia and china that have been massive buyers of gold they will probably start to add bitcoins to their National Reserves will they get into i want to get your opinion on this because its been nagging me for a while will we see Something Like a hash war work countries dedicate energy to mining and attempt to get as many bitcoin as possible because because it becomes a Strategic Asset would that you see that happening yeah things to biggest right now. Have the like absolutely different their suit economical a. Then the internet was born its create the National Air Race all resources mostly brutal. Working and then it long before any need some hall to be 1st. And then it went before the paper money is not working sending like and providing the light Bank Accounts elsom up the proper way how to pay then we start sending sources using cannot show the stuff talking about economy working 247 moths in your swiping to create a current real deal more scared and saw only a few to 5 days. Providing quite not in out speech just pay for services we beat corners looking quite real money for a big point for internet just before the pavement and government because the also function in Global Economy if they are providing some sources they would need to protect their interests and this is also hard to be quite as working everyone is interested just to get their benefits from beat going in site same time theyre trying to protect their interests and their support for the deceased so the game theory thats kind of baked into the protocol it jumps to the nation state level and we see it all act let me ask you about energy use because on one hand you can say ok this is a Massive Network theres 100 quintillion calculations per 2nd supported by this massive infrastructure and Technological Infrastructure but theres 2 points number one this this industry chance to go where there is Cheapest Energy and that tends to go where energy is being wasted so in the case of natural gas or thats flaring and being wasted you would see bitcoin miners in the case of Huge National grid where theres a lot of down time electricity is not being going through the system you can use that in mind but quite so its actually Energy Efficient and that way to get your comments on that and 2nd of all. If you if you compare it to figure out money and the Energy Required to maintain the global field of money as you just described its highly inefficient the u. S. Dollar the yen the euro these are multi stack n. S. T. Albatross systems that should be definitely disrupted so is the comment on the energy of the Bitcoin Mining infrastructure where are we with that right now the beat going is small snapped breaking using the kid relate to stations to approximately quite close to 80 or some. Electrical energy used for mining he says hed read an excerpt hour and its most cleanest one. If youre looking at the statistics the United States approximately between 64 person till 70 porson Electrical Energy is generated using before so for its meaning burning biggest more in a morning we quarrel and so on in the war its approximately 80 percent of electric an issue is generate the use of the force which will its not the greenest one beach going on the biggest the lake the you dont like the station they are all these fields providing some extra capacity because you cannot improve them quite easily if you cannot expand the dom youre building them at the beginning and he has a couple of resort just in case if you will call businesses or believing people need more energy and the result is creating the normal resource of Electrical Energy or what they get at the station i about to sell at the lower price this solar energy its not so green ill be counting biggest manufacturing the solar panels using a lot of like poison ship mystery it was a show of the solar panels to sell some not so easy not so green. Definitely on green this is the biggest usually and this is the reason why stocks in the scene the police twice higher comparing to internal combustion say and you can see calculates. All the c o 2 Carbon Emissions during the fuel cycle if you use manufacturing and also disposal and the tesla from that point of view its not so green most people constantly assume asia the most of the electric eye. Will be beat corn else using the most up to mice infrastructure so its meaning comparing to regular financial ceased to be doesnt have a central bank and doesnt have offices doesnt require and police the only infrastructure is already existing candidates using to existing internet doesnt require any additional cables lines anything in result. Made mistakes. And only people like you mentioned game theory if i would like to use that money sue i became part of the system im trying to protect my interests against yours interests the only interesting to use the beat corn just before payment will be trying to protect our interests it appears as though theres going to be a new competitor in the big coin mining space in the United States and texas a group i guess led by peter thiel is kicking off whats called level one and their goal is to capture 25 percent of the mining Global Mining or hash trade they have access to great cheap energy in texas now this plays in 2 different ways number one obviously on them downside if youre a big miner like bit ferry probably the 1st and the standard setter of this industry i would say you know host of the annual conference and her island you know you guys are really sitting at a very privileged spot so heres a newcomer and theyve got the raising 50000000. 00 or 200000000. 00 valuation theyre going to grab 25 percent of the market thats thats. Sounds like a negative but on the other side it means that the Network Becomes more secure because you have more cash power going into it which means that the price is going to go up and you guys are very early in the space i would imagine youre sitting on some bit coy so theres an actual theres a lot of upside to the fact that youre bringing in more capacity into the send astri your thoughts start think the mining. Like any like any os or business right now its not just about the money to old idea. Became white must series right now its more about the technology more about the experience more about your engineering skills more about your on the me thinks more about your ability to more foster react on the all obstacles because. The internet and only Services Like beat coin they have function to rainbow sentiment its meaning if something changes you should react immediately and shell build a better prediction and beast decreasing fury skin increasing purification is. The im not afraid about the new cameras in the literary and then the normal the high concurrency on the decline mining fell creating pigs aka the efficiency for be quite his meaning keep pushing their old abrasions down by price because the currency between different players pushing them to optimize all their operation on complex expenses and this is why the old miners creating quite more to mice the beast in them all. To mice that gratian spit fury has really rocked their mining space for years now thanks in large part to this gentleman alex pet shop the cia the chief Information Officer thanks for being on the kaiser report. Plus my pleasure also thank you wow yeah not sure exactly what happened next but anyway stay tuned for the 2nd half a whole lot come. Your way. In the United States president ial candidates debate the future of the us and the world. Max kaiser and Stacy Herbert dig into the burning questions of this election cycle one self big every week. Student debt trade wars corporate money universal basic. And more catch up with whats front running this sunday exclusively on r. T. And this community there are people who believe that its ok. Its really hard there are no jobs and you see that kids ask and as a parent. I can come up with arguments theres a lot of conflict in the game between the 2 most of the conflict i would say. Is maybe. Close one on each other. Each other is Good Business the state of california alone makes 6000000000 dollars a year of prison complex just to get some point in your life where. You dont care and. So your care might anything. Im going to fulfill the repeated promises apologise to the people and come on you know weve all bots to. Make you feel really really oh. Pretty good. Now you want to 1st crack that. No. Balls be. Coming out my yaar. Welcome back to the kaiser report im max keiser time now to return to our conversation with the clout of gold money dot com and yes im an investor in a company heck yeah ok also welcome back to the show thats my pleasure max we were talking in the last segment about the Central Banks buying up lots and lots of gold and what does this mean and are they preparing themselves for what exactly and it seems as of what we have seen in the last 10 or 15 years is the weaponization of the u. S. Dollar rights of the u. S. Dollars World Reserve currency and then the u. S. Dollar and the folks who run it in the new york fed and in washington decided to cut iran off from the swift system and they threaten folks in iraq theyre going to were going to seize your assets in the new york fed right so theyre using the dollar as a weapon and is that one of the reasons why countries like china russia and others are buying lots and lots of gold because theres no counterparty risk they they want the exposure to the weaponization of the u. S. Dollar and is that if that is that true and has the u. S. Kind of hoisted itself on its own to tarde if you will by by encouraging that kind of behavior ouster i think that is true i dont think its the only reason he based it kate to the american suffuse that the dollars a weapon as you push it for some considerable time but the difference not is that the you know the big players away from america lot easier intimidated or in deep talk you know like sort of chases in places like indonesia and so on so forth it they just dont get told anymore so the result is that every time america uses its dollar weapon it just reinforces the idea that. Like russia or china whoever protect themselves by moving in to go rather than. Having the complete explosion of the dollar and this i think is one of the main reasons why russia in particular rich she earns nothing but dollars and she just gets rid of them as quickly as she can and good bets into go the u. S. Of course is adding over a trillion dollars of National Debt the next few years or so. You know Interest Rates arent going up the Interest Rates of course are not going up because the Central Banks load up their Balance Sheet with allah junk and they swap it out for fresh treasury bills you know last episode you mention john law and the mississippi bubble as its now not by the way i should note that myself and james turk also from gold money made an excellent film about this you can see it on you tube its a 2 part film about the whole rise of the ass not in france and john laws and what happens when you start to commodify everything in our economy to backfill money if the fear money collapses the whole economy collapses. And my taken to believe that you believe you think that this is where were at now in the cycle that everything is being essentially commodity ties to back this paper money which is like the worst thing you can possibly do its john law all over again but on a global basis is that true elster thats how i see it every basically what joe or john lord did was he set up a private bank which School Function or oh it then managed to get that confess it into the royal bank which is affective laid low at the 15 the 15 central bank or rather the Region Central Bank and it allowed johndroe or print money to buy shares in the mississippi venture so it was a double run when he merged the 2 together which i think was separate the 281720. The king in other words the regent because the king was. So young but the region decided to take some money out of this and he took 9900000000. 00 leaf threat just short of a 1000000000 lever out of it right at the top now at that stage john doe is beginning to have to plug a few holes here and there in the whole thing. Like he had to ban the use of callings and his notes had to be used as money instead this is sort of the thing were doing nowadays or been doing for a while taxes had to be paid out of his currency in other words he would provide you the money to pay the taxes so it was a double rap he was using that money to puff up the mississippi shares and when they merged in february 17th 20 that met that actually was the peak of the whole thing and what happened was that the collapse in the mississippi shares happened at the same time as the collapse in his his john laws bank notes in leverage so much so that by september in london there was no Exchange Rates in other words they went from. Full value to valueless from the end of february to the end of august now the key to it is that he was tying together asset values financial asset values with the currency in years want to puff up the other and the other effectively to support the former so you could see that the 2 things were tight together what have we got now we have got a very similar situation Central Banks puffing up markets we have this coronavirus saying today which should be undermining asset prices because with the chinese economy affect to be taken out of the equation for the foreseeable future we actually happen economic crisis but what happens puffing up share prices wall streets up 400 points today i mean this is crazy the other thing that theyre doing is theyre driving down the gold price to. Try and sort of give an impression that everything is ok this is very dangerous stuff and it reminds me of well john rule was in february 17th 20 the similarities are all for us to see if we want to look forward it reminds me back in 2008 of course what got the whole Global Financial crisis started was one of the funds on wall street a Junk Bond Fund they had to revise down the Net Asset Value of that fund and that started a Chain Reaction it was one fund on one banks Balance Sheet was downgraded and it started a Chain Reaction of Lehman Brothers and bastards and elsewhere and a crazed create the Global Financial crisis which requires 17 trillion dollars worth of or more balance money and the response of wall street and washington and other banks around the world was to increase the size of the pipes that carry the money right so they didnt they didnt bother examining well is the currency self worth anything or is the system unstable or are we floating this enormous global ponzi scheme they set the ponzi scheme were going to keep that intact but were just going to widen the pipe so that we can float and flow more fraud remember it wasnt so in insolvency crisis auser it was an eloquent in a crisis right it wasnt that they were committing fraud it was that they werent getting enough free money from the Central Banks so they made the pipes bigger they deregulated they re architected they change laws they stole from other poor slobs and then that they have this bigger pipes for the bigger global ponzi scheme but my question is are we at the limit of the carrying capacity of the reforms that were introduced post 2008 to make the global ponzi scheme bigger in other words so are we at the map. Excellent carrying capacity for Global Financial fraud at the moment or can we float another 102030 trillion worth of fraudulent paper money in in the system now alister i think were very close to that point they say that the point i think today is that we have a contracting Global Economy now what this means is that the dollar balances that foreigners need to hold are less than they were previously so theyre going to turn sellers of dollars now even before this turns out as dollars you have in america a budget deficit of over a trillion dollars in this current year the effects of the coronavirus if you want to blame it on that but i reckon its already going out way anyway were going into a slump effect on Us Government finances will be catastrophic now who is going to buy that debt the foreigners are not going to buy it if anything theyre telling sellers of the dot and as Interest Rates rise they will liquidate portfolio positions remember that their sum total of cash and it vestments in america including fulfill investments. Holdings of u. S. Treasuries t. Bills and some say fall is in the order of 23. 00 trillion dollars it is more than the whole g. D. P. Of the United States now with that situation and so few people seem to recognize this they are not going to buy any more theyre already stuffed full of dollars now ok some people have borrowed in dollars and will need eventually to pay back dollars and they will need dollars to pay the interest on that debt yeah sure but the level of Foreign Investment in dollars is so high that on a net basis you will find that no foreigner will be buying u. S. Treasury debt and weston that when they tell stern selous they. You have real problems youll government will not be able to fund an escalating deficit escalating because the net present value of those future welfare. Costs are coming home to roost. Unemployment will be rising which basically means that you know current welfare costs will be increasing as well youve got a Wonderful Health service. Which is extremely expensive not only for the government but also for companies and the key which will undermine it is a falling dollar and a foreign dollar will be the response of foreigners to the situation in america so lets focus on the end game here lets say there is a global reset and gold becomes once again in play and we go back to some kind of Gold Standard the u. S. Us down simply has 8000. 00 tons of gold in fort knox and they believe to have the biggest gold position in the world india has 20000 tonnes amongst its population its got a Huge Population a lot of people of india the individuals own a lot of gold theres that weve got huge gold buying by china and russia but still nowhere near the position held monetary gold by the us so the comment i want to i want to ask you about this lets say the whole system crashes we go back to a Gold Standard whos in the best position at that point to rule the roost so to speak i think the problem with the recess is that we just dont know how its going to happen i dont think its in the hands of government i think basically governments got to get the finances are going to get completely destroyed so the point where they withdraw from intervening in the economy and that could take i mean i think i think that the initial effect would be really quite something but it could take quite some time before we get to the point where governments accept the uk its actually got to drive things the only thing we can do as individuals i think is his head. Dont just sound money dont go with the fish equivalent somebody in the form of gold and silver id have that protection because youre going to have to write it out its not difficult it can always turn the Buckingham Palace into a mcdonalds thats a hell alistair thanks so much for being on the kaiser report thats my pleasure max well thats going to do it for this edition of the kaiser report with me max kaiser and Stacy Herbert want to thank our guests are michael out of gold money dot com if you want to reach us on twitter its kaiser report by a. Listener pretty you know the moon but in your circles one of. The much for that was a little trip. To the north of the. White english but a preview here already seems to have you know made it seems to trace. That. In 24. 00 to you know bloody revolution of you tube the demonstrations going from being relatively peaceful political protests to be creasing the violent revolution is always spontaneous or is it you know were here to put it but i mean you know i live with to do it through me in the new bill is that i do schooling you know to the former ukrainian president recalls the events of 2014. Those who took part in this today over 5000000000 dollars to assist ukraine in these and other goals that will ensure a secure and. Prosperous and democratic. Is your media a reflection of reality. In a world transformed. What will make you feel safe. Isolation little community. Are you going the right way or are you being led. By. What is true what is free. In the world corrupted you need to descend. To join us in the depths. Orem even the shallows. That. Was. Russias top diplomat at times as western counterparts of the Munich Security Conference that its time to seek Common Ground that they must stop the train in moscow as an existential threat as european officials warn of the wests political fragmentation while the us secretary of state insists he sees no threats to the current global order. Pentagon digital defense contracts hangs in the air after imus and challenges the way the multibillion dollar deal was awarded to viable microsoft. And the border frances equivalent of the oscars quits on monster over director at the director Roman Polanski sweeping the nominations despite still being wanted in the us to start