The Current System and the u. S. Dollar would not be the old reserve currency any more rightists like in history people dread it the day that gas lights are no longer around no one to electric lights and they dreaded the day that cars took over and we didnt have horse drawn carriages anymore and you know things change when he cant do anything to stop at your own power he could be the last fed chairman in the United States before the big coin take over and so 3 this is just all part of life i think its more like the day that you know the french royal family dreaded the day that democracy and a republic would form rather than the peasants be happy with brioche so here hes saying i hope the peasants remain happy with this can tell you in effect that is part and parcel of. A system whereby we the Central Banks create money and we give it to the oligarchs that aristocrats of our era now you know the money 1st that happened back in the french so the strategy is to give the money to groups of folks on wall street and then trust that theyll be fair about its distribution and what weve discovered over the past 50 years is that it started off unfair and thats gotten more unfair over 50 years to the point now were learning velocities and 0 and the continuing errors are growing exponentially 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 can tell you 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 Frederic Bastiat 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 becomes a way of life for a group of men and 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 and collect a 1000000. Dollars from the taxpayer and become you know what youre closer to that can tell 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 concealing arabs 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 government 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 monist as they should because then nobodys ever going to pay that back either so. 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 and this system you know the government the treasury and the f. B. I. Are arresting some people who have fraudulent lay claim desk but it seems like if you look at that chart like everybody understands is the cause. To do business you pay a small fine ok theyre arresting some people whether these are real businesses no no no im assuming not and 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 to 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 a risk they take no risk at the top and now its trickling down its starting to get to the people who could scam 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 1987 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 out fell 22 percent and was still the worst ever single day performance and 124 year history of the stock markets black monday wiped out an estimated 1. 7 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 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 i think theres hes going to get the can tell you their moment this is when they came into the rescue bad mistakes that of course you could compare it to the big question market because this is something similar happened in march via bit max when there they got into a do loop of for selling that caused the big crashes to prices to crash i think over 22 percent and it was a Circuit Breaker and that max back and collapsed they couldnt deal with all the selling so it did rescue the price but here man came in to intervene this is the beginning of of algo driven. And disasters and such like the 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 were come 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 its 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 debt because the fed will always come to the rescue it appears and thats created the moral hazard thats created to cancel 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 in a day and theres 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 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 plan a ponzi. Misfire style you know he goes in and has done a. On this the vix is used as the tail that wags the dog because you can manipulate the vex for a lot less capital and then that in turn manipulates 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 plans Protection Team and she said you know people focus too much on the fed but they should ask questions as white as 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 is this american command the control thats a command and control economy in 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 then down the 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 now where you have each out now. Seem wrong. When old rules just dont hold. Any. Get to seep out they become active. And engaged with. The trail. When something find themselves worlds apart. Just to look for common ground. The maternity town the slums go in and you may never get out some sort of the most of. My teenage gang rules here. Dont want to do to move. The mind of those who were. But. Maybe will. Come out. Minus a murderer the spirit of. The band now it was in for the yeah. And melanie when nobody knew who. You were you were the monkey in the room. So what weve got to do is identify the threats that we have its crazy to confront let it be an arms race off and spearing Dramatic Development only personally im going to resist i dont see how that strategy will be successful very critical time to sit down and talk. 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 this space in terms of how u. S. Regulators at the department of justice are trading at or are 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 but max by see if you see india or j i r s issued guidance on long ago there are 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 u. S. 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 do you 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 you know u. S. Intelligence apparatus but if you look at if you look at. Look at the d. O. J. Is recent court they understand how this works and it allows them to track drug trafficker 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 a wild 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 well 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 theres 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 were. You know some time has basically been saying on twitter and social media that doesnt file tax returns. It doesnt pay taxes it doesnt have Tax Liability and now 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. I. Market now and 2017 there are many of these allies many situations launched. In no it seems that in the last year we had this wave of de 5 tokens now 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 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 in different forms is the same scam it and why am i correct in saying that the fat from most part is just a repackaged i. C. L. Scam own why the new bottl