Dont tory asli volatile cryptocurrency as the countrys economy founders so this was an aljazeera english and they looked at after years of being knowing about bitcoin it was only when their country banks started to fall apart when their credit default swaps suggested theres a 99. 5 percent chance of them bank going bankrupt and banks introduced the same thing that we saw back in 2011 with cyprus and they had the balans 1st they have the limit on the amount of money that you could withdraw so in lebanon we saw Something Like 4050. 00 a day that theyre allowed to take out and they focus on a guy name are who asked for a surname to be withheld. He says hes not standing around helplessly he is trying to move what is left of his savings out of lebanon via a financial instrument meant many in the country have not embraced until recently big coin quote suddenly everything turns upside down and all the options are open said mark wright whats amazing is that this discussion of whats a better store of value gold or a bit coin and in lebanon we have a taste test case people are selling gold to buy bitcoin that proves the big point is a greater and more portable store of value than gold and thats going to be the story all over the world people cant take their gold across the border its too heavy its too obvious they cant take bitcoin and thats what people are doing their fling with their big point whether its in china and lebanon all over the world goal is not the store of value that big coin is thats why peter schiff under his desk in a fetal position crying this is why alex jones is converted now to being a full blooded bitcoin bear this is the new way so the banks in lebanon have been restricting withdrawals of how much cash you can access lebanese banks began imposing increasingly restrictive and formal capital controls after a Popular Uprising 1st swept the country more than 4 months ago foreign currency withdrawals are now limited to be between 50. 00 and just a few 100. 00 a month transfers abroad were recently capped at 50000. 00 a year for socalled necessary matters well yeah i mean they can try to restrain people from having access to their capital but all the kind of techniques that we saw before but going to be quaint is the. You know it came about because of a divine intervention as part of fighting back against the kleptocrats and they allowed this ultimate hard money to exist to offer a way out of banking shenanigans so this is our savior big point is our savior they. Another young guy who is in lebanon and he says right now lebanese are interested in escaping tight restrictions on caths withdrawals and transfers they basically want Financial Freedom so im going to cut to a clip here from las vegas where you and i were on stage with some oh gee original gangsters of bitcoin and we talked on stage with Peter Todd Adam back trace mayor meehan you and we talked about those early days of bitcoin in 2011 thats when we 1st started covering it here on kaiser report and we asked them about what you know what it was like in those early days at this point when people in cyprus 1st turned to bitcoin when we saw the bail ins and in cyprus and after that bail and by the way of them became law of the land in europe so if this crisis this you know Coronavirus Crisis leads to a financial crisis that is the next plan for europe and america can still princess way out perhaps but lets turn to our event and on confiscate a bull in las vegas last week with a controversial mayor amongst the mix after january 10th 2001 how funny tweeted running bit coin after that time how important is it that the only people who joined in on this thing with him were the gamers were the outlaws were the were the freaks like if it had been like pm g Infidelity Bank saying ok lets lets get in this together would it have changed the nature of big point do you think probably i mean i think theres a history so to me who was. One of the. List cofounders and was one of those people to write a really good idea is. Made the point but most innovation comes from the sidelines so if you want. Change change things just do it i mean just build something if people want to use it they opt to use it and it changes peoples expectations about what they should be able to use say skype as another example right say scott go into the Telecom Industry if they go and Telecom Sector is regulated so if theyd gone to the regulator and said we want to build a voice a for i p video system with Free International cooling they wouldve said no you cant do it all the lobby groups were to stop them so instead they just did it and the regulators were too slow it got to what we used and they couldnt stop it so i think there is something in the area where people just did it you know initially had no value no Stock Exchange price you know the 10000. Coin pits or experiment so people were just playing with it i mean it was kind of happiest thing i think the fact that you could mine it helps add value theres a psychological phenomena where if somethings difficult today people ascribe more value to it a fallacy really going to labor theory of value but its some people have that intuition say i think the fact that the mining was difficult fiddly and people would Exchange Tips on how to configure graphics gus do things make them feel it was balibo and that maybe had a part to play in it bootstrapping about early because it had to bootstrap someone so i think. You know permission was innovation and then theres a history of. Sort of open source. Community technology being found to be agile and good and lead being adopted for enterprise uses you know make the point a. I think they kind of list of people who kind of say going to because i think thats actually you know much too restrictive i mean i know financial people who saw in a new mediately or so you know thats going to go by some you know one i mean my dads in a standard canadian economist i mean used to do consulting for Pension Plans and when i 1st described what bitcoin was to him to him his reaction was full of course its all you will it was just completely obvious to him if you have a limited thing you send over the internet thats useful you know i dont actually think like this is that radical of an idea i think whats more radical is being able to actually do it in pull it off but you know if you do it a slightly different way when i think youd still get a similar kind of outcome but at that time you know they show the velocity of bitcoin from 2009 through present in terms of how often they move and it does look like a lot of those early are lost forever they lost their coins so it was that took a while to overcome i feel like in 2010 and 11 i mean these things like would pop up and somebody would run off with 53000 coins and it just felt like a kind of a game that it wasnt real and that maybe it would never have value is just. The notion of something is a game and its not real yet doesnt change who might be in shit playing with it. You know someone like my dad if they actually knew technology and frankly doesnt but. If he had you know the technical wearable tech she could do sing i mean hes so personal would i understand peters point of kays somebody whos reasonable really involved in finance would get it but i dont understand why people who are into gold dont get it i dont understand i never did we came into our programming side when gold peaked in 2011 and we transitioned to doing heavy bitcoin coverage because it was gold was no longer hot topic to talk about because it entered into a very long bear market so this gave us a programming supplement if you well that and we and then we the more we talked about it the more access we had to more key people who would contact us and say hey im a programmer developer on the doing this im doing that so then we just kept putting them on the show and and so from the programming side it was great but how do i talk about it to people who are newbies or whatever you know it just it as far i just found this wall of resistance i think theres people who either want to be free and theres people who want to be slaves thats it so id actually become an investor in gold money that max and i were both involved with gold money before it went even existed and so i was an investor there and i think 20052006 timeframe and then i started a blog run to gold and i had breakfast with dr edwin vieira and. He gave a talk at the gabba conference and someone asked like well you know why why do we do this you know it seems so we dont have any any chance to get out from this old price suppression scheme and the monetary repression and everything this was 2008 middle 2008 and dr vieira said well i dont want to live in 1056 just so slovakia with a boot on my neck. You know so thats why i got more active blogging about gold and the monetary role that it plays in protecting human rights and Civil Liberties stands as a protector against despotic inroads on the part of governments as misa says and so then when you know i came across big coal and it was very natural to merge at least for me as a digital native growing up with lime wire and because on all the bit torrent and eat gold and the Digital Games and transferring value over Communication Channels and dealing with charge backs and trying to get paid for your thing in the game right like you know so for me immediately no i was able to see the implications of the Software Code and what its going to do and so you know thats why i kind of picked it up and actually on this stage in. The 1st public appearance i asked him the question like you know what niches should we go after and he is like you know we have to go find a particular niche is to sell pick point to thats exactly what ive done i went to the libertarians is they. Are just crazy and i want them to have a lot of money they dont change because they call in changes you. Im going to fulfill the repeated promises apologise to the people i promise you know weve all pots be the most remote place you break free from. School. Now you want to 1st crack that. No. Balls being cut. Down on ones up. On the fleas off not Just One Bite of snakes on the definitions and im by any. One seeking any south. And. Taking the equal city south. Into my good docks to get the gun and onions when you bring. In how we think im. Moving right now i think im going. To let beach. South. Just kill him if one means a leftist i know the deep better learn this now tokyo find it hes going to keep going. To like. This one. Most peoples did a piece against him quite a cultural 50 of the premise. Welcome back to the report yes do not worry max is still here i know with the coronavirus people get worried about that but were still here for the 2nd half max i want to interview you because youre my afraid to go near anybody else because of the virus but there was a story in Bloomberg Business week bloomberg a long special about reddit forum board and the these reddit forum boards are wall street and the allegation that theyre manipulating the Options Markets in particular the specialist market maker because this we are in hollywood still you created the hollywood Stock Exchange. And you created the Virtual Specialist Technology so it covers your entire domain here and so i want to hear what you have to say about this read its profane greedy traders are shaking up the stock market chatter on Message Boards the shaping the Options Market and sparking wild rallies members of our believe there they have discovered a kind of perpetual motion machine in the interplay of stocks with options contracts which offered cheap way to bet on whether shares will rise or fall without buying the stocks itself it goes like this members make bets that rely on Market Makers the professional middlemen will sell you a call a bet on shares rising or put a wager on a decline Market Makers like good bookies dont want to go out on a limb when taking a bet they lay off the risk if someone buys a call for instance speculating on a rally the dealer buy stocks and the Underlying Company if the stock rises the dealer may have to pay out on the option but thats offset by the gain on the shares they believe that they found a secret formula to rig the markets so that their call. Options basically force Market Makers have to buy supply of the stock and of course this is before the huge market crash so you know they were betting on stock prices like tesla Virgin Galactic continuing to go up and rig in the Options Market that way do you believe it was working. Well theres not a new scam but i would say this is the democratisation of a certain style of market manipulation so up until all this group which has access to 0 percent commissions on trades and access to huge pools of very very cheap capital this game was played amongst Market Makers themselves so this is typically the way Market Makers try to game theory each other and if we talk to Rick Ackerman who is a specialist in chicago for many years hes been on the show a few times and weve talked about the games that Market Makers play in the Options Market in between specialists so they have the dubious task of maintaining an inventory of stock to fill orders or to hedge their book of trades that theyre. Allowing to be made so this. The idea that youre forcing the Options Market maker to go in the market and pay for a stock to give him the requisite hedge against these call options that are being created because of the Options Market theres not a finite degree of options its whats called open interest so the open interest will expand or contract depending on supply and demand so if theres a huge expansion of the open interest in the call options in this case it would require the specialist to hedge their risk of making these markets to expand their inventory by going into the open market to buy the stock so so youve got a gang of folks on reddit who are able to trade options and theyre swarming so you can and options if theyre out of the money options are very cheap right so theyre. If its 100. 00 stock option its out of money might be worth you know it could be 0. 50 or 0. 25 so youve got to swarm could be thousands they swarm on a 25. 00 cent option theyre going to do now expand that open interest with very little capital they do put up some capital but the very little capitals distributed over this gang this manipulation gang and so the specialist is forced to buy stock in the open market so you can therefore capitalize on this. Gaming the system and cash it does require everyone whos participating in this to operate as a cartel and they cant cheat on each other typically whatll happen is if there is a Market Correction as were seeing one or 2 will break the cartel theyll cash out quick and then everyone else will lose money so its not without risk its only risk close if the cartels operating completely together and that of course never happens in a system you never have a you never have a cartel that doesnt encourage at least one or 2 to cheat thats why because ultimately will go to a 100000 because theres no way for the Central Banks to create a successful cartel against it unlike in the Precious Metals market where they have created a successful cartel to knock down the price of gold they will never be able to do it coin for a variety of reasons well indeed so i mean you used to be aside from hollywood Stock Exchange in the virtual specials technology you were in options trader. When you worked on wall street so you know this market but the article points out that and again this is before the the fastest selloff in s. And p. 500 history thats the fastest sell off in 124 years so im sure this entire some credit. Here they all got wiped out but before this that it was an interesting take on all the sort of technologies that you have and in fact in invented or worked with they mentioned that usually the market is dominated by put options because people are you know hedge funds or are banks by show. As for their clients and their long that they need to short it just for protection for a hedge but now and the 1st few weeks of this year there has been definitely a lopsided number of call options and they say the forms zest for call options is a key force behind a broad market trend by one measure the value of options traded rose 77 percent over the 1st 6 weeks to 2020 much of this expansion was concentrated on a handful of stocks popular among individual investors said John Marshall head of Derivatives Research at Goldman Sachs he said quote the size of the increase in options volume is definitely moving the needle its a variation if you will on the theme that greg gave us the stock market crash of 987 because in 87 you had a product and i was working on wall street at the time the product was portfolio insurance so you have a 1000000. 00 portfolio and you can hedge that portfolio by buying options that spend one or 2 percent of your capital in this way if the market were ever to crash 101520 percent the most you could lose would be the value of that option which would be one or 2 percent so what happened is that there was chicago which is the futures market and the Options Market versus new york which is the cash market they got locked into contention where the amount of hedge that was required to cover the underlying cash market was out of whack due to a technological contention in this massive database and it created a meltdown so you had this massive selloff and i think a 722 that almost 23 percent collapse in one day and i dont know 19th 1970 here its similar in that what theyre doing is theyre forcing it contention in the end the risk profile the specialist by forcing him to take a risk to match his books by not buying puts in this case but by buying call so its kind of like the inverse of what happened in 1970 so you created a melt up so they created an artificial melt up with the Derivatives Market that you know the options are a Derivatives Market people say what is a derivative. Its an option essentially those thats the option market that was invented in the late seventys early eightys the listed Options Market that is the Derivatives Market and so if you weve all seen men much much much abuse many many different ways this is just the latest i could cite 20 different instances of massive derivatives abuse i mean we talk a lot about jamie dimon and j. P. Morgan using options and derivatives to sell naked shorts to bang down the price of gold thats the thats another words if youre democratizing what jamie diamond doesnt need to touche the level to make money by fraud you will be making money might be nimby laying the price of gold using derivatives and options youre giving kids on reddit that ability using 0 percent commissions and access to a lot of pool capital cheaply to game a specialist to create manipulation in the Options Market so theyre just mimicking jamie thats the problem with moral hazard if you look at jamie good diamond manipulate markets and just give a slap on the wrist you get a fine that he can then fund from is open window at the fed just money for 0 youre saying to your society youre saying to your public fraud is ok breaking the law is ok stealing is ok and so youre going to end up with kids on reddit mimicking jamie diamond by perpetrating massive fraud in the Derivatives Market and its completely predictable i might add that the article suggests that some of the High Frequency traders who have you know hundreds of billions of dollars that their access and very fast trading machines have been like plugged into these erratic groups apparently and trading on it before these kids whoever is in these groups being like 4 chan acting like they have a big portfolio and they probably only have a 100 bucks or a 1000 bucks you know they are big traders trading on this stuff and it does make you wonder because in january you and i were covering here in ca is very poor and yes sure maybe americans dont really know much news that happens outside of america. In a political season when theyre all concerned about you know whats going on with domestic politics in the primaries but you and i were noting like the whole supply chain was cracking across china and you know there was a pandemic clearly on the way and we kept on noting that the market just kept going out then out then up and it made no sense and it was driven by a few of the shares mentioned in this article including tesla Virgin Galactic some of these companies that were directly tied to this wall street bets form board so it could have been that we dont know and well probably never know because of the catastrophe now unfolding so well never know because there wont be time to do you know an autopsy why does america offshore all of its Production Capacity to china including medicine and so the crow and suddenly all that manufacturing is in the hospital stay so this because we allow things like High Frequency trading to go and without penalty for that scheme which is also a criminal activity youre stealing we say like Lloyd Blankfein Lloyd Blankfein and Goldman Sachs at the time say we needed to create liquidity for the markets which is false hes outright lying when he says that its about its about its about larceny just stealing liquidity for the market and and so the that money that Lloyd Blankfein and Goldman Sachs are j. P. Morgan steals it doesnt go into the productive economy doesnt go to building factories so we create our own medicine it goes into Hamptons Estates it goes into it goes into swiss chalet is so theyre like this were so smart we stole billions we bought a picasso it went up and all of our drug manufacturing in china made by slaves coronavirus it and theyre like. We never saw it coming thats a lie we are need more liquidity we need to put more money thats also a lot. Were now going to retire take all wrong. A runaway any coward like blankfein or or you know or the head of disney or all these c. E. O. s theyre all frickin cowards running away after theyve committed massive fraud for 2030 years just want to jump in there because during the 2008 to 20120072010 financial crisis it was all the big guys left holding the bag at that point and in terms of today not only do you see a lot of the c. E. O. s have fled in the last you know quarter or 2 so youve seen them flee and the who is owning all these bags in the market as it crashed well it was a retail and in fact even on the Options Market they mentioned the average number of contracts purchased in a single stock option trades shrunk to just 6. 7 contracts in 2020 roughly half of what it was in 2015 so really retail is the only audience they say and so they are the ones holding the bags will we have will we have a bail out for these people if its just resell because if the system doesnt care about retail you know and terms of overloaded Hospital System and coronavirus or an overload of fed system and in terms of financial collapse theyre going to protect their friends right theyre going to attack those who they care about most often traders. And traders you know heres a. Market could drop 50 percent from here and wed still be in a bull market. Until next time max keiser and stacy were saying check us out on twitter was a report by. Time after time corporations repeat the same mantra sustainability area of. Transition to sustainable transport sustainability. A more equitable and sustainable world. They claim their production is completely harmless. The big. Companies want us to feel good about buying their products while the damage is being done far away and this is something this must be undone even on. Then we understood superman. In the United States president ial candidates debate the future of the us and the world. Stacy herbert dig into the burning questions of this election cycle. Every week. Student debt trade wars corporate money universal basic. And more catch up with whats front running this sunday exclusively on r. T. A u. S. General confirms washington is in the process of bringing Defense Systems into iraq to protect american troops from a potential gradient attack thought all to 2 marines are killed in iraq during an operation. That mr putin could potentially run again for president if the public votes for a new changes in the russian constitution next month also had. A far as riots on the violence sweeps its nice presence off to the states strict response to the spread of the coronavirus
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