Kaiser this is the kaiser report you know gold. Its part of history you saw history gold you can find out some interesting things about People History all kinds of good stuff stacie max we are here in mexico city mexico it used to be the capital of the aztec empire and you know what montezuma who ruled the aztec empire 500 years ago exactly well he has a lesson for us today the modern human about how to deal with the doors and how we are still willed by the doors i have this headline here spanish conquistadores stole this gold bar from aztec emperor montezumas true here is the actual of gold bar this is all the gold that montezuma had current car tests stolen he melted it down put it into bars this is just under 2 kilos here that they found under a street here in mexico city in 1901 its been carbon dated to prove it is from 151920 when cortez sacked the city stole all their gold and its worth about 100000. 00 u. S. Dollars say it still has value today so this is historical evidence of the country stars come here and stealing all the gold and this is the beginning really of a 500 year problem of having ones well stolen and of course is picked up by american the 1970 s. Remember Milton Friedman and richest injure they introduced neo liberalism into this area which was the idea that the county said doors are wall street and the Federal Reserve bank it could run riot all over latin america kill people kill leaders install puppet dictators steal more wealth steal aggro. Ultra world and so this is a problem thats been going on for 500 years because it is the solution of big corn is a way for everyone in these countries to regain their sovereignty against the doors of money and thats why you see the adoption rates in argentina venezuela mexico skyrocket a bit coy because they realize this is karma this is karma now the money pushers in washington and theyre the ones who are going to end up at the bottom of the ocean and were going to rise up well the credit he said or is that rule us now have an unfortunate future just like the spanish conquistadores did as well i reckon and for the same exact reasons and well get to that by the end of this episode if we get through this episode because you know montezumas revenge is also a thing and it is coming well you know looking at this bar they show that a new chemical analysis of a large gold bar found under a mexico city street in 1981 has shed light on a centuries old origins as mexicos National Institute of at the policy in history announced last week the precious metal was probably dropped in a canal by spanish invaders as they retreated from the Aztec Capital of tentative. Im sure im up for announced an aztec word right but on june 30th 1520 the new chait trieste day or night of sadness so that was the one night of sadness where cortez was forced to flee after the spanish army actually came to arrest him and then he was forced to flee when the aztecs attacked as many slaughtered many people slaughtered the other Indigenous People around here the other natives who fought against the montezuma as well but i say that we have this credit can decent kisa doors who have taken our wealth since 1971 through this magic act of swapping out our gold backed International Settlement layer as all fiats so they can take whatever because the. A uniquely have the asymmetric information of how much credit theyre creating and how much wealth theyre actually taking so weve had not a note a trace they not one night of sadness not an on you know trace they not a year of sadness but weve had it they kata or those they caught has or trace they got is which are decades of sadness because as an confiscate all my gold you can pick up and run away with it thats why because disappear to gold on that level its also as you point out the gold back settlement layer that used to be in place has been ripped out by the sea of money could just adores on the subtle banks you dont need a settlement layer because of because in the transaction is the settlement thats the genius of this hardest money ever invented or created ever in the history of humanity its also highly divisible its also fungible and it is superior to gold just like people in these in this region a lot america if have had this 500 year its aster fee if people are constantly stealing that well same thing in africa thats why adoption rates of decline in africa are up as well because of the countries the doors or the neoliberals as you call them now in america they come in they steal your wealth well what they call it is on confiscated all but theyll be left holding the see. So the joke is on them it took 500 years but the joke is on them the credit and fiats doris are able to rule for a longer time because its such so much more benign i mean cortez had exacting kill and take visibly people could see he was just taking your stuff the fact that its so much more benign and that you cant really see that you think youre participating in a capitalist economy and its up to you to compete with this next chart however shows that in fact theyre starving you out so in cortez surrounds the city how do you isolate them how do you weaken Montezuma Well you prevent any food from entering you starve them out right use around. To a country or a region and you starve the people out well here in the credits that or system to see that theyre choking out the Credit System with this charts the decline in the velocity of money post g f c the Global Financial crisis has been remarkable 3 decades of a sideways trend 2 decades above trend and now a decade of utterly falling out of bed we had a brief postcrisis bump and a 27 12800. 00 tax cut then we left bomb but otherwise straight down this is a chart of money circulating throughout the economy you want money to circulate throughout an economy you need money that is the gasoline thats the energy for the system heres all it during your years in wall street in the eightys and then this is during the ninetys when there were who ride days you know everybody was getting wealthy on the stock market not just wall street but it was a load of ordinary people this was they were spending money they were buying cars they were going on vacation heres the collapse and the velocity of money thats them choking out there basically the people theyre conquering yeah i think thats a actual analogy restfully that the general economy the real economy is being choked out there not allowing money to circulate its not allow it to multiply the multiplier multiplying effect as its called in economics theyre not allowing that to take place theyre simply printing it and its going into silos of people who are buying you know youve got basis buying a house in los angeles for 125000000 youve got 10 gryphon. Capital buying a flat in new york for over 200000000 so all of these people are essentially the beneficiaries of this choking out of the multiplicity effect in the economy by simply in the case of hedge funds in canberra its who by the way as ben bernanke the former fed chairman on his board and others of visors they just have a pipe going right into the fed and the money goes into buying these over inflated properties it would be like putting a pose in the gas tank and say if siphoning off a gas tank. And then of course the car chant go because you just siphoned off all the gas but more than at least they spent 135000000 on a house and theres some construction workers theres builders theres a Real Estate Agent who collected some money some a banker who took a fee from it went there essentially hoarding it jeff bezos has over 130000000000. 00 and its just sitting there you cant spend it how many 135000000. 00 homes will he have to spend he probably would have to buy one every single day for like a 100 years in order to spend that money at least that is circulating but this is you know you look at Mike Bloomberg the guy was worth 3000000000. 00 in 2008 at the beginning of this this this bum and he was worth 3000000000. 00 now hes worth 60000000000 maybe even up to 80000000000 its hard to know so where did that come from how is it possible it didnt work harder was he suddenly making more from rents from his bloomberg terminals no its its the printing money for the fed and hoarding it that they get to keep it all none of it circulates crashing the rest of the economy thats elevating their share of this Mike Bloomberg from say a 1000000000 during to 50 or 60000000000 in an era money multiplying effect has crashed and has no velocity whatsoever that was a possible unless hes just got a type and the money just goes into his pockets which is the same which is exactly what happened we have the equivalent of montezumas revenge not only with bitcoin but the fact that theyre running out of ways to well this is also going to harm them because their credit conquistadores so the collapse of the money velocity but also the collapse in the ability to push more credit steal our wealth and most importantly our sovereignty currency experts fear i am no longer has fire power to act as world lender of last resort so remember the whole theory is that once we run out of dollars and euro is in yeah and you and credit will just roll it up into a new fancy crypto version of the s. T. They are the special drawing rights issue by the i. M. F. Well Central Banks the last control of global liquidity the dollar Rise InternationalFinancial System has become treacherously unstable and vulnerable to a sudden reversal and capital flows yet the International Monetary fund is the diminished force and no longer has the fire power to act as the worlds lender of last resort in an emergency that is the stark conclusion of a g. 20 task force of leading currency experts dont explain something so this 10 year period of 0 money velocity or money has gone directly into the pockets of the few oligarchs and countries of doors in america and around the world into these silos like these 125200000000. 00 properties when they when the infrastructure for that starts to crack and illiquidity starts to seep out you get inflation for real for stuff like food and were seeing this happen now where people are noticing that the costs of everyday living as starting to spike higher so even though with most people are pawned off by a cheap flat screen t. V. And cheap gas once their cost start to go up 5060 percent a 100 percent for basic sustenance of life. Then were going to see some action baby a well i want to say you know again going back to the star and the credit kooky series and if you dont feel like youre you know the as the people that have been surrounded by cortez and slaughtered and they got their revenge back of course but he here this is an economy a fiats economy especially cannot exist without circulation of capital this is the capital not circulating therefore this isnt that that was the end of capitalism thats when the cookie story is one thats when this is that year 1098 to 90. 00 to 2000 was when bill clinton handed over our capital at our capital for real the equivalent of of montezuma being captured by cortez that was bill clinton giving the bankers giving the computer. Door is giving them the commodities futures modernization act which allowed derivatives which is the form of stealing our wealth and also the glass steagall which allowed basically that their speculation to be backed by the conquered people write well the only model that is comparable history would be medieval ism thats when the money completely dies and you just have People Living in castles. Stay tuned after the break much more coming your way. Join me every thursday on the alex simon show and ill be speaking to guest of the world of politics sports business im showbusiness ill see if. I can show you my faith but im going to teach you must store in 9093 this was sentenced to death. Charged with capital murder even though he didnt have the gun didnt pull the trigger didnt intend to kill anybody the magic living in your bathroom for the week with the scent of a 23. I felt it had to be but it had been. Confined within 4 green walls. Using. The leave defense room. Welcome back to the kaiser report imax keyser time now to return to our conversation with toes a guess is the director of block chain land which is part of the mega talent land event coming up in april and guadalajara max and stacy will be there tens of thousands will be attending and how do people get tickets to this yes were expecting this year 70000 people of the event breaking less years like of 62000 they can buy tickets in talent dot net Talent Network so they can buy at the rectory through our web page they can also see the speakers they can also see our communities or allies also if there is someone that has a start up they can register we have an area corps start up garden which is for startups that are in early stages so you can showcase your startup over there and we also have open spaces for community so also if you have a community were open for registration there is no cost and actually we give out some scholarships or entrances for people that scrape so yes this year we are expecting the 70000. 00 people from the 13. 00 to 17. 00 if a pro in well that how to school he go in which max and stacy are going to be with us in mainstage and also in biloxi and what part of mexico will i be im a while i love how to school me its like an hour flight from here from mexico city they probably get there faster than i could learn how to pronounce the weather how to. Do it now i want to pick up on what we were saying kind of in the last segment and talking about the new government and the challenges of the new government which tends to be a left government and then you know the challenges of having an entrenched a look up list Banking System everywhere in the world not just mexico but everyone in the world and then this emerging technological phenomenon. Which is increasingly being powered by a bit coy typically it is the hardest money in the world because it has a sound governance system built within the protocol and like we like to say you know you dont change Bitcoin Bitcoin changes you know theres so much about decline that once you understand it you begin they realize that well you know a lots a lot of the Banking System we dont need anymore we dont need intermediaries the trade in a big coin trade is self settling itself verifying its hard money you start to realize that theres a lot of parts of the government we dont need because the the amount of trade thats done in a peaceful way between parties it gets rid of a lot of the functions of the government to maintain order maintain governance so Going Forward would you agree that big coin is part of a really an emergence of a governance system that obviates or gets rid of both banks and government yes because it has Many Properties some benefits that we have all seen traveling around the world and also with the Different Companies that we have participated in and they have participated. Going into the most extreme cases yet it actually takes out the politicians and the bankers out of your money so it gives real to me that you havent been able to do with your money on this for example you use gold as money which we know though its hard money its very difficult for the exchange is something that we do with we can do with bitcoin so it helps you like countries that are in economical crisis political crisis or banking crisis and bank runs i mean if you could if they close down your bank and they tell you you cannot do with your your money what are you going to do if you have your life savings there and that is something that kind of cup and with bitcoin i mean you are the owner of your money you are the owner of your private keys you can move your money at any time you want anywhere you want so that is part of the magic and also there is no politician group will be. We should group of central bankers or associates or will banks that can have. A manipulation of the printing or the emission or or how it is being distributed so the rules sort of theyre the rules are transparent everyone knows the rules and everyone can all that and see the rules of the big can in the books in which go so brings you to a new era of financial transparency that you havent been able to have any time before this right now when we 1st interview you few years ago maybe 5 or 6 years ago this was beat you were a cofounder or cofounder of bits. A Crypto Exchange just now i believe the biggest 6 change and lot america and so its one of the biggest exchanges in the world and this is become now a profitable business and full disclosure max to say here are investors in bed so we were fortunate enough to get involved in the early early year and so how does this message i guess my question is twofold number one in expanding our across latin america now and particularly in the area like argentina which seems desperate in desperate need of hard money because they are going through yet another financial crisis are going to really read neg on their debt to the i. M. F. As they should and 2nd of all is what it whats happening on the regulatory front because throughout the entire history because and big going exchanges as always in the a need to either work with regulators or in some cases some exchanges just leave territories that they dont want to have certain or the regulators on their back or what have you so the 1st question is hows this expansion over latin america going it whats happening in argentina i see them on local but coins adoption of bitcoin in argentina is just through the roof whats happening there so because. To turn desir 6 years old so its sort of april 2014 actually we met before that. So i became part of it so in 2015 i had been there the head of payments the head of Institutional Sales and trading and currently continue so partner with with bits o. And working with them and part of this interesting is like you said. We didnt only open a new company in mexico we opened the new industry because we were the 1st ones the 1st exchanges the 1st one to live in the 1st one to start also not going to the doors of regulators and different banks and trying to show them how this industry has a lot of attention a lot of things to do so now 6 years later i think this year in the next months big book would be so cool to have its 1st 1000000 users here in mexico and as you said for over a year there has been plans of expansion to argentina and the official down chess recently being so now you can exchange through bits o. Argentina versus big going for a 2nd and let me just point out that youre not here talking on behalf of it so but theres a history there so we can kind of pick your brain a little bit you know that around the same time that we invested and we also invested in a coal mine in india and of course they pretty much went belly up they want out of this because the government in india doesnt understand that climate understand crypto they dont know really how to deal with it and they just made a very blanket condemnation of bitcoin without really understanding the 1st thing about it and so that economy in that country is going to suffer in measurable damage because of the short sightedness of the government. Why what is the what is one of the Mexican Government in the mexican culture what do they get about it that the indians and then just to be clear right so we made investments involved in our investment in unocal and went to 0 and thats the way to. In the Venture Capital game but why. Do you guys seem to get it and what are they missing of their unique or as you mentioned was one of the 1st well known exchanges in india unfortunately i dont know regulation works in india but it looks like they have a problem with money they already banned bills and cash and had a crisis because of that they also very severe with the regulations in for crypto a bit going and have put in companies out of business and being in this industry that is a risk we are always aware of that it could happen at any time if you have a problem with a regulator if you have a problem with a law theres a new law etc that could put in risk the company and your business and thats not only right now a start up its a company that gives. An income to families and more people know so you also have to the mentioned mexico was one of the 1st countries to have fin tick law which started working about 3 years ago and right now they have started taking in asian and also giving out. Some licenses but it has been a barry slow process and got caught in the middle of the change of government so that also slowed it down but its very good because now the companies that have a plate and theyre going to have licenses now theyre going to have some clarity of how fin tick can interact with. Regulated financial industry for example it has been very hard for. Crypto companies Opening Bank Accounts having accounts to do 46. 00 or having this interaction so this puts the rules of how we should interact but it also puts up the bar it puts of the bar because now opening krypto authentic extension has the costs and regulatory. Requirements of almost opening up that. This competition and a lot of ways to promote competition would be great for the consumer you know these regulations should be revisited because by putting them in it creating a moated industry with a very high barrier to entry in thats not necessarily very good for competition either you know i want to ask you about something very interesting i want to get your thoughts on this so you know weve been traveling the world now for 10 years with kaiser report done over 1500 shows and weve been to a lot of hostile some event a lot of places where insurrection is in the air in egypt revolution is in the air in athens you know we smelled the tear gas had been on the front lines and i would say one thing that i notice about revelations and insurrections is that you know theyve reached a different place in the cycle when the cops join the insurrection and we saw this in france during this relational the cops started to cross over and join the insurrection and thats a turning point in the insurrection of this throughout history this is what happens in the crypt space at what point are we going to see regulators say you know im paid in fear and fast becoming worthless im just going to join the insurrection its happened ive spoken to people in Financial Institutions as you know we spoke i worked for 14 years before this in Financial Institutions and spoke with regulators and so through and theyre using become either their experiment thing or saving or speculating or just experimenting with the moji so i think its just a matter of time because. My generation and the next generation have used. Their code have you scripted currencies or are familiar with it or have been part of what they heard in the last years and now the generation that are currently the director sir heading the Central Banks give a pace to the next generation were going to see it this people there are actually interact to get knowledgeable about the kurds use and thin pick which will also make this interaction. Smoother and better and one time theyre going to realize that instead of restricting this im putting barriers of entry if they facilitate that and they do it in a good way to avoid the crimes that one to be avoided this can help mexico and in the country have an exponential growth and for their economy to grow in a pace that hasnt grown in many years right you know the saying is that you dont change because it kind changes you. In the case of the regulators again they realize well were being paid in money moneys is disintegrating in real time moneys ever lasted over time why dont we just join the hard money crowd and become be part of this revolution so you believe that let me think what can i say the point of it is im not going to be thrown into the ring in one of these low what has it again. Im not going to be thrown in there or be pounded down on my head or anything when i got a bottle for talent you know of course youre not and also what you said is very important this is also a revolution but its a peaceful revolution brother peace. Very good sex being on the kaiser report and thats going to do it for this edition of the kaiser report with me max kaiser and stacy here we want to thank our guest Jose Rodriguez joining us on twitter its kaiser report until i sign bio. The Atlantic Alliance the bedrock of the post world war 2 Global Security order is slowly but surely unraveling more and more often washington in brussels by virtue of important Foreign Policy issues today europe has a choice to defend its interests or face into oblivion. Theres only one jellyby theres a new me am i clean however we dont have a medium want to have trinity why not so that is what im pushing pushing society to create. It will be a laboratory. If museum will actually have. Well you can go way down in the prisons could perhaps know now but do you know what theres a lot that will get the best idea. And if they give me enough i want to do you have one minute left a thick chair i lie in you take care of us. Or. In