50 years to the point now were learning velocities and 0 and the continuing errors are growing exponentially but yeah i mean as simon dixon pointed out in the last interview there is a sense that they understand this problem of cars and they want to start giving money to the people instead but its kind of too late because after 20 years of this mass cancelling the fact that we see you know the top one percent have all that wealth and all the assets so they could buy up all everything before the inflation arrives of all this money going to the ordinary people but you know another quote that we say all the time here and i think its one of the most relevant to this sort of cantillon economy that we do have and that is from Frederick Bos the out one of the thinkers of the french in my meant and it is relevant to today because we do see a trickle down of the plunder that happens at the top so when plunder this is the quote from Frederick Boss the out becomes a way of law. For a group of men in a society over the course of time they create for themselves a legal system that authorizes that and a moral code that glorifies that so that i use in reference to this tweet from Liz Ann Sonders she says parabolic spike and Business Applications look at that parabolic move in the formation of Small Businesses that happen this chart goes back to 2004 and you see the parabolic spike why well because you can see there you know work from home be unemployed at home during this pandemic and click 600. 00 extra week or you could become a Small Business thing collect a 1000000. 00 from the taxpayer and become you know what youre closer to that can tell you in class that way right the Federal Reserve should not be operating like a multilevel marketing scheme like amway or mary kay cosmetics right i mean thats an established way of doing business where you refer people and those people who you refer if they refer people all those kickbacks all the way up to the original person that did the referral ok thats a Business Model but the central bank shouldnt be operating the same way when they lend money to wall street at 0 percent interest or negative rates and then wall street gets a kickback every time that money enters the economy and then someone else uses it or maybe lends it out be it the v. The Banking System or kicks back to the primary dealers the primary wall street banks so thats no way to run an economy because you create conciliar who then distort everything underneath the economy and you can create a permanent peasant class like we have in america now well in this money the reason why these Small Businesses are forming is in order to get the p. P. P. Funds member that 560000000000. 00 that was allocated back in not like april or may to go to Small Businesses and you could get like millions of dollars that were just handed out theyre not expected to be paid back for the most part so its free money but you know this is coming directly from the treasury this is coming from the guy. This is real money this isnt like credit money that the fed just moves all the bad assets off the Balance Sheets of the banks and put it on their Balance Sheet and yeah and ways monetization because then nobodys ever going to pay that back either so its a its a ponzi all the way down whether you look at the credit you know the fed system and that can tell you the fact that they cause or here in this system you know the government the treasury and the f. B. I. Are arresting some people who. Lay claim to us but it seems like if you look at that chart like everybody understands the cost of doing business you pay a small fine ok theyre arresting some people whether these are real businesses no no no im assuming not just like apple creates stock Market Growth without creating any earnings stock buybacks but used to be illegal so thats an illegal activity previously illegal activity and so that people in the small to Medium Enterprise businesses are saying hey wait a minute weve got to have some kind of fraud too or else were going to get you know blown out here so they create this frog in a stronger ponzi schemes all the way down right and as i said is when you. Have a system that glorifies it the only way to become rich in america as we pointed out is to avoid all taxes and there are tax loopholes written in the 2000 pages of tax law in the United States that only a select few like donald trump get to use and of course getting access to making sure that you dont have to take any risk youve always said this that they get to defer rest they take no risk at the top and now its trickling down its starting to get to the people who could skim a 1000000 instead of a 1000000000 off so that people plundering the p. P. P. System or just plundering a 1000000 or 2 whereas the top at the fed level theyre plundering by the billions dumping it on to the Balance Sheet but i also wanted to point out you know this whole system really started you were there that day and the whole moral hazard and the system of plunder set up in 1. 187 and monday was the anniversary of that so happy anniversary on this day in 1987 i remember it well have been in the business for 13 months at that point dow fell 22 percent in what is still the worst ever single day performance and 124 year history of the stock markets black monday wiped out an estimated 1. 00 trillion from Global Equity markets thats when reagan of course came in and formed the working group on Financial Markets otherwise known as the plunge Protection Team right so i had already been a stock broker for 5 years in 1907 and it was a complete wipe out of all all accounts really and firms were essentially forced selling clients out of their positions because the farmers themselves and want to take any risk so they automatically just wiped everybody out they just sold everybody out and they didnt get reports back at what price you sold out for sometimes days you know usually you get a report back in a few seconds but it took days and days i remember an image of the floor of the New York Stock Exchange and they still used a lot of paper back then the paper was actually above peoples knees they were waiting through a sea of paper and so this was you know an incredible watershed event because it was caused by the futures market in chicago and the cast market in new york becoming contentious or broken essentially and it went into like a nucular meltdown technologically driven that was out of control the next day the market was set to open down another 500. 00 points which would have wiped out every Bank Insurance company and in america and thats when Reagan Robert rubin and down greenspan stepped in and they started to buy s. And p. Futures in the open market is the 1st time the government really started to play the market they created the plunge Protection Team which is very active to this day and we now know as the greenspan put that. Was invented on october 20th but he says it is getting in the can tell you their moment this is when they came in to the rescue of bad mistakes that of course you can compare it to the big question market because this something similar happened in march via bit max when there they got into a do loop of for selling that cause the big crashes to prices to crash i think over 22 percent and there was a Circuit Breaker and that max back and collapsed they couldnt deal with all the selling so it did risky the price but here man came in to intervene this is the beginning of of algo driven disasters essentially it is yes i think that was Program Trading as it was called was just beginning and that was a Major Industrial accident essentially that caused a meltdown in the Financial Markets that work a completely out of control but it did now put the government in the position and they created what became known as the greenspan put that is to say markets can never go down anymore ever and weve had that then the bernanke you put the janet yellen put now that jay powell put jay powell unfortunately will be the last fed chairman but i mean you see that in the historical charts is like from this period stock markets never really go down for too long because everybody counts on they buy the dip it is that good really in this era to buy the dip because the fed will always come to the rescue it appears and thats created the moral hazard thats created the council an heiress and also like kind of a snowflake sort of mentality in the markets here you guys i mean you were at lunch he said when most of the fall happened at 22 percent you know today we have you know i think the biggest since and might have been a 7 percent fall and is a and there is absolutely hysteria total you know chaos in all markets when people are panicking and screeching and you know yelling like james cramer did on c n b c the fed this is no time to be an academic you have to come bell out these markets and blah blah blah so that in 2008 the markets were down high. I forget the exact percentage point but it was maybe 4 or 5 percent and the plunge Protection Team came in and it was during that bailout period where Timothy Geithner negotiated an 800000000000. 00 bailout for his friends on wall street and they crashed the market they knew that if they crash the market they could get the money they did that predictably because all the tools to manipulate prices became more sophisticated for example now we have the vix index the volatility index which is manipulator as our friend tells us all the time the author of planet ponzi. Misfires you know he goes in and has done a study on this how the vix is used as the tail that wags the dog because you can manipulate the vix for a lot less capital and then that determine if the entire market and so its play is pure politics theres no price discovery and speaking of politics remember we have interviewed people mom graham you should look it up she was on the plunge Protection Team under the 1st george bush i believe it was maybe the 2nd george bush but anyway she worked on the plunge Protection Team and she said you know people focus too much on the fed what they should ask questions is why does the treasury have a whole room of trading desks like what are they trading that should be asked obviously she herself probably couldnt be too explicit about what you were actually doing there because she was part of that team but its an important question you know its an american command the control thats a command and control economy american style right we criticize soviet union for that but thats what america does it to the extremists well happy anniversary max you survive that day you know the great day you know a lot of fun you know and here and in your twentys they know that everything is fun and everythings a party so theres a great video online of me talking about it to c. B. S. News with dan rather anyway were going to take a break and when we come back much more coming your way no more yet beach out now. Oh look forward to talking to you all that technology should work for people. Must obey the orders given by human beings except where such orders would conflict with the 1st law. Or should be very careful but official intelligence at that point obesity is too great. Ever. Inflict on theories chummy with Artificial Intelligence will summon the demon. A robot must protect its own existence was the excuse for the. If. So what weve got to do is identify the threats that we have its crazy confrontation let it be an arms race off and spearing Dramatic Development only really im going to resist i dont see how that strategy will be successful very critical time to sit down and talk. Americans love buying homes. This was a fundamental part of how our Political Leadership and our country at large understood the bargain you get a hoe and then you know rebel right thats the things you dont revolt if you have a stake in the system. And be really interesting to dial it back and think about the longer deeper history housings men in the United States not just that question of the American Dream the bigger question if you dream is for. Welcome back to take as a part imax keyser time now to go to Stephen Palli hes a partner anderson tell law firm Stephen Larkham back nice to be here max its good to get your overview on things and accept us bases been no shortage of exciting crypto legal news these past few weeks whats your overall sense of the space in terms of how u. S. Regulators at the department of justice are trading at our our trading at you know we went from a period of no regulations at all to now there are lots going on whats your feeling of the overall picture here sure so if you look at the youre referring to d. O. J. Which issued a framework last week. Related to crypto. Were also seeing some enforcement activity to talk more about it against the Currency Exchange bit max spicier to see india j i r s issued guy does not long ago theres some other issues or guidance on use of crypto to pay ransom or what were saying is that u. S. Regulators and im sure elsewhere in the world i only really follow the us closely understand the asset understand the space and are continuing to its almost like a reverse form of regulatory capture where the regulators are capturing the technology as opposed to vice versa right what i mean by that or what i mean is that if you read some of the guidance and you read some of the. Some of the views the regulars are taking they seem to like the technology because in a particular certain way you know actually Technology Allows for really good surveillance some wags in the space and conspiracy theorists im actually interested various times that because it was created by the you know u. S. Intelligence apparatus but if you look at if you look if you. Look at the d. J. s recent report they understand how this works and it allows them to track drunk track for drug traffickers allows them to track and keep an eye on transfers being made for International Terrorist financing so i dont think i think theyre coming around to saying that the technology itself is kind of useful from a surveillance standpoint ok lets take a look at an individual story here said john mcafee hes kind of like the billy the kid at the end that kept us space you know he was out there while the west pushing affronted air and then you know the modern times have caught up to him the long arm of the u. S. Law seems of caught up in regards to unpaid taxes and as i see pump earnings so what are the overall legal lessons anyone can learn from this case at least as presented in the indictments but they always get your taxes right so i saw the there are 2 things that happen one is mcafee was sued by the f. C. C. For violating a bunch of. Securities regulations he among other things touted allegedly touted. Particular i. C. A. O. As wish in their view the f. C. C. Were securities offerings without disclosing his own holdings made allegedly misrepresentations about different i. C. s pretty run of the mill Securities Violations frankly just out of jury high volume. And nothing incredibly new its a its a fairly long the civil complaint by the f. C. C. Is fairly long been includes features of many other civil and force and actions that we see in the past now when i saw the f. C. C. Complaint i wasnt you know where of the of the ire of the idea of the criminal indictment but the 1st thing that crossed my mind was if there was something id probably be taxes because people who follow this space and follow mcafee know that who are. You know some. Time hes basically been saying on twitter and social media that yes he file tax returns he doesnt pay taxes he doesnt have Tax Liability and clearly somebody at the i. R. S. Noticed and you know he was arrested in spain and i assume extradition. Proceedings are ongoing interestingly to max the. Charge the criminal charges against mcafee were filed under seal i think it may or june so there confidentially were known to the world they were only unsealed a couple weeks ago when he was after he was seized overseas the i. C. L. Mark that down to 2017 there were many of these allies many situations launched. In no it seems that in the last year or so we have had this wave of de 5 tokens yeah and to me it seems like a repackaging of the i. C. L. The same kind of people all the same hype i get the same spam and similar to that in wall street you know its a famous for repackaging the same scams over and over again and you know repack as collateralized mortgage obligation can take 20 different lives than ever and different forms is the same scam and why am i correct in saying that the fat from most part is just a repackaged i. C. L. Scam only wine in new bottles definitely technically perhaps a little bit different than a serious but in many respects yes what were seeing are Old Fashioned financial instruments. Packaged and you know with with fun names like the fire but many of them are actually things that are controlled by sensual eyes arenas ations by a few people who stand to make money by fleecing the backs of many so yeah its a its definitely its definitely a return of things that weve seen in 20172015. Right and thats for a check on a going around the table am looking at all the latest legal developments lets take a look at the bit max for a moment here the founders and Senior Executives a bit max were indicted on far more serious crimes what kates else about the charges and what the lesson is don here sure so i would say overall like big picture you talk about mcafee if you talk about it max the overall lesson is that gravity still exists and if you have big enough and you. Blatantly violate her at least in the idea in the eyes of regulars you plainly violate laws are going to come and get you and these things happen. They have lots of patience and it can take a lot of time so a bit max is. Have to exchange derivatives Futures Exchange thats based off shore in the seychelles moved where its american founder moved it. According to code in one of the one of the legal papers because it would be easier to bribe regulators there so they were charged civilly and the exchange each year global and a bunch of other entities. And several of the cofounders were charged simply by the c f t c which is a u. S. Executive Branch Agency tasked with enforcing their requirements of the Commodities Exchange act and. The are over simplifying greatly. The things that bit max was selling to see f. T. C. Says were things that required registration as a futures commissions mission i believe that steve and even if c. M. Under the ca and also required them to comply with the Bank Secrecy Acts am i ok why sirrah quire ments monster a short a c a t c says that there were tens of. Thousands of u. S. Customers trillions of dollars in. Trades billions of dollars in fees from americans and theyre seeking to claw a significant amount of that money back this appears to have come at the end of at least a year and a half long. Investigation which would have been cost which would have largely confidential if there were news reports about it last year in july and apparently at the end of the and just a geisha and they decided to file charges instead of reaching a negotiated settlement which often happens now i think about if it is interesting and i would say. Allows us to maybe predict a little bit of whats going to happen the future is that in parallel so the see if you see charges just like mcafee was sued by a s. C. C. And criminally charged for tax fraud. That nexus principals were criminally indicted for violation of the u. S. Bank secrecy act there c. T. O. Was taken into custody and boston i believe was almost immediately released on bond. With a relatively all Things Considered relatively light cash collateral 500000. 00 cash lateral and a 5000000. 00 bond without a lot of Movement Restrictions and the last time i checked the other defendants including arthur hayes which is that next a c. E. O. Who are still. At loose ive heard of this is true but ive heard that mr has maybe in singapore a question or its an extradition treaty to them criminally charged a violation of the Bank Secrecy Act which requires you to register if you are a money servicing business doing business with the u. S. Persons each violation of the Bank Secrecy Act subject of 5 year for years in prison. And couple 100000. 00 fine if i recall correctly one of the allegations even to see if you see complained one of the titans was that there are all her 85000. 00 accounts with us nexus which would mean in theory and this is not the way it works of course but you know to be a little cute like a half 1000000 years in prison would be the maximum penalty its going to happen i suspect that the this principals will. Either turn sums in or will be located in actually United States right lets change gears for a 2nd you know those of the past thats the wild west days and now weve got Michael Saylor mike a strategy of putting 425000000 a big point on the Balance Sheet this is the clearly the future direction and youve got a publicly listed company as a lawyer and here in the legal space air my question is does this mean that every c. E. O. And c f o and all these companies around the country that have huge staff cast on their Balance Sheet are they almost obligated with the fiduciary responsibility to have a conversation like look this guys going into because we have to look at this now because our shareholders are going to want to select at it and hes making a case for versus cas versus galled and so does this become a an item in the boardroom now Going Forward its a stretch to say its a breach of anyones fiduciary obligations to not consider buying now you know i dont know onion futures or are investing in oil or or bitcoin i just i dont think thats the case what i would say is that. We want to take away from these prosecutions is not that theres a problem with because right actually im i remain bullish on the asset Going Forward and i think what it shows is that it exists it easily exists in and its within stablished laws and regulations and if you break those also regulations are going to come to thats not thats not. Thats the fault of the person who is you. And creating things are ok well weve got to cut it off there Stephen Pallies Anderson Kill law firm thanks so much being on kaiser report my pleasure right now is going to do it for this edition of kaiser report with max and stacey want to thank our guest even palli. Law firm if you want to contact please do until next time by all. The world. Thinks. We dare to ask. Secrets prisons are not usually what comes to mind when thinking about europe however he even the most prosperous can be deceived weve been. There were to view houses were. Preserved was located and the only people had access to the story investigators she held the uncovered the darkest dealings of the secret services but i mean. You great ignore. Me for. Trying for justice. Americans love buying homes. This was a fundamental part of how our. Political leadership and our country at large understood the bargain you get a hope and then you know rebel right thats the things you dont revolt if you have a stake in the system. And think about the longer deeper history housings men in the United States not just that question of the American Dream but the bigger question of who the dream is for. You know when im going to be out there see i dont think about it i dont mean roman not new dorp or. I kind of were on the only course of the now i think its higher than our. Members who are sick of mafias them safe and quick to europe but once they. Leave they are in sleeves and they count util. Some of them leave your mom on an accident you know if this unit can get it out to him in. The soil the. Lead. On court of the import data because the persona that a kid even. Fear and shock among teachers and pran talk to one of the own was brutally modded in the capital and all this week we speak to an educated. Mind is many many things its a tale of terror my profession to be protected. Polands top court found almost a bore so the spots nationwide protests impacting the age old question right to life all freedom of choice. On the wall the conflict between armenia and azerbaijan open the border kyra back rages on a 14 year old boy tells our team his story of saving his family