eckstein lost and i have the best i want to start with this i want to get to this right away because i have to give it up and you have to run with associates hopes clinton would also find a way to make a different contribution perhaps as a university president or a foundation head there have even been suggestions that she moved overseas for part couple of years there are suggestions that she moves overseas q like get out of town would you like to take a post in siberia somewhere kill get a stand there you know and doctor build a glue in alaska move in with sarah palin that's what you do you know it's all about this notion of i'm still big it's the pictures are small so says hillary clinton she still thinks she's waiting for a close up david oh so. now she's so

washed up that she makes fill in some metaphor there i don't have the where of course there's also like the game of thrones where the character marjorie the new queen to the iron throne and the mother in law sarah see when they kept on saying shouldn't you don't you want to go to high garden or don't you want to get out of town do you want to move and they always clock that. you want to take power from me and a quick note you know about two seasons behind on day around the back of might not know that particular reference they've moved on why well you know there's a long story well but you want to you don't want to be far from the seat of power in the seat of power is washington d.c. the white house because the reason why you don't is because you could end up financially dead the only way to stay wealthy in america is to have close proximity to power and i think that's part of the reason why she is going mad right with this new book stop. yeah i think she blames everybody for her loss and she tries to

deconstruct all the secrets of fantastical scenario of intrigue and suspense and foreign powers all colluding to make sure that she never went to wisconsin being ever recognize of bernie sanders was a legitimate d.n.c. candidate to run for president and he would have beat donald trump so all the catastrophe that she claimed donald trump is responsible for it's her fault for getting in the way of democracy number one two three you're out go away never come back here for control go dig a pit in the woods jump in covered over and disappear but the need to actually see yourself in the mirror not just admire yourself in that mirror when you get to that mirror at the ass tech saw and as you went into the afterlife the reason why you need to see how you really are is because you become a laughingstock like this whether it happened in rome or it's happening today where

we are becoming the laughing stock of the world is that because of the refusal to understand who and what we are here she could have done a lot of things but instead she remains haunted by her defeat the gist of her message next month based on her public statements and accounts of private conversations from people who have talked to her will be quote i accept the blame for what happened but the bigger problems are russian meddling coney's on again off again handling of the federal bureau of investigations probe of her private emails over the democratic party and maybe even some of her own campaign staffers again nothing to do with herself you see this reflected in this whole every single situation all the outrage all this shrieking all the chaos of of cable news and you know the trumpet ministration and their tweets is all about you know one little segment of you're worse than me or this but the overall story is one of decay. in america in america in the political class in the political system as the empire

crumbles as the empire crumbles everything around the world in terms of the financial system the financial system of debt the empire of debt they've created this is why we've talked about what is emerging as there are a lot of people in the world who are outside it and can see the crumbling can see the disaster they're creating their own currencies they're creating their own financial systems they're creating decentralized political systems around the world they're they're stepping away from the game of thrones sort of crazy that are what you is what you see in washington d.c. and maybe you know the white house was built by slaves maybe it with this whole tradition of getting rid of all these monuments maybe just get rid of that building and start a fresh start somewhere new well this is the crazy thing is that hillary would like to erase the past because it's an inconvenient truth that she was a horrible candidate and made a lot of mistakes so in an attempt to erase her past she wants to erase america's past so she is galvanizing and supporting the all left the isis of the american

political spectrum yeah i mean the whole left i think just like all right it's all stupid stupid stuff you know the fact is she wants to erase the fact that yes they do want to take down these confederate monuments but the fact is just like the democrats want to say that trump is not american his supporters are not american somehow we're controlled from overseas by powers like by people who can control dragons the equivalent of putin he's like kelly see he has these dragons and can do magic on us the magic woman and game of thrones like this somehow this magical thing that it's not american but trunk is the equivalent of a confederate statue so is hillary so is bush so is obama so is every single president before them right but embracing. the past is dangerous and she wants to erase her personal past and in so doing she is going to attempt to erase

america's collective past by supporting those who are now actively seeking to eliminate american cultural heritage all over the warts and all and they want to give it all over to corporate interests and private interests to become does difficult of america will be complete they'll be no public space everything will cost money to breathe to sink to right to have an interaction of any type will be expensive and you need to borrow money and you're going to be in the slave state i mean that's what she supports yes he's a dangerous ideological scatterbrain but both of the parties both trump both hillary clinton and all the people the democratic party the d.n.c. that aren't see both of the parties here both of the main parties in all of europe there is zero usually only two there's an oligarch plea of power and control you know to me they seem like watching an old fashioned story they seem like listening

to history books about the medieval days that's why i think we have the game of thrones was a reflection of where we are today and terms of the fact that you know. the world has moved on with on the block chain for example that we have like a different sort of system beyond all this fraud and corruption and control that this old fashioned system that shuts down on the weekend for you know seventy two hours game of thrones house of cards again is the same the stories are the same the players mimic each other going back to antiquity and the beginning of drama as an art form and the beginning of the collective consciousness of a subjective outsider view of paul little reality called theater was invented by the greeks and we knew of the now as a shakespeare said we are all. the actors in the play i paraphrase of course and so

hillary is playing the fool and we need to recognize she is a fool and we need to look to king's sotto she not come otoh is a king bitcoin is a kingmaker we are entering a new century and the block chain is the new theatre it's the new technology it's the new way to understand who we are in this universe theory is so old fashioned and behind the times it's like talking about beavis and butt-head well i have a headline about trouble but i do want to say in terms of the fool i actually was thinking about how our society works right now and we actually are absent the fool like the philosopher the people who can say things and not be pot formed to can say be unthinkable who can think the unthinkable who could who could present ideas without being killed and shot down and the platform didn't kicked off the news and kicked off odessa to fool us the shaman over the alpha missed well they were going to last for king the floor played

a slightly different role and giving the king some comic relief some levity in an otherwise very stressful job by speaking truth to power in a limited way but the change agent is the shaman society is are the people in the crypto development space by the way max studied theater at n.y.u. i am a theater. i did have a degree and see it from a matter of university at the dallas and division so as of my work at p.d. entry i was in the galton division ok we could be the editors ok well speaking of fools final headline here donald trump wipes five point seven billion dollars off the value of amazon with a single tweet that was last weekend he tweeted something like amazon is doing great damage to taxpaying retailers towns cities and states throughout the u.s. are being hurt many jobs being lost five point seven billion was wiped off you know that's only like one point two percent in a parser recovered but. this old car says i'm full of this you know i feel

a just imagining his belly button lint he's inhaling and he is the markets he thinks he's the market's rising so he thinks he can cause the markets to crash he's a list of all these companies that he caused to wipe off billions and then of course recover but it is new territory in terms of the fool shouting at the thunder and lightning of the storm of markets but dick the economy is never been more leverage in the stock markets never been more leveraged so any any butterfly flapping its wings in beijing can cause amazon the crash or facebook to skyrocket because there's just too for collaborates fundamental analysis died twenty years ago technical analysis is worthless because you have the pole of bureau of the central bank and swiss national bank owns eighty billion dollars worth of stocks. so that's no longer free market capitalism this is a centrally planned cut the stock receive rule by the least qualified and central bankers so that's where we started off the previous episode these two kind of go

together the narcissism started with the central banks only fifteen chilean dollars of their own belly button and it's ok well we got to go for this bit but will be back after the break djoko a. we're

continuing to do you know melissa i know some of the plane and one million people died died. killed people even. now no one still include tooling a few that is random and that's. needless

but it was supposed to some of us it was a. little. before. last time we chased. each one of them carrying twenty kilos of drugs. first offense. they just stepped. it's the mean pay the money. they have. this is for me. i don't see a porno they don't. make or. break. for . now well.

welcome back to the kaiser report i'm asked geysers i'm gonna turn to wolf blitzer in san francisco he's over it wolf street dot com wolf welcome back thank you for having me max i will fracture a recent headline of low birth reads the new world order is leaving the u.s. behind american allies have decided trump is simply not someone they can do business with. i saw the sideline of sir you saw the sideline are we witnessing the end of the american empire does it matter to the global economy i mean that's obviously an extension of the side but on a more of an indignity basis are america's allies are they starting to recalibrate how they see america and is this really are we entering into

a new global phase of politics wolf. that's certainly a lot of loaded questions there. definitely we have a rising economic power to deal with that we didn't have fifteen or twenty years ago and that's china it's now the number two economy in the world. is our eyes to looking at that it is you know for about two decades the united states has been the dominant economic power in the world and a dominant military power in the world combined so that gave it a unique positioning this is not sustainable long term obviously the world will turn multi-polar. i don't know how fast this will happen i think china will experience a major economic implosion sometime in the future like japan did and others know all cool things down

a little bit but the long term you know that's what you're looking at you're looking at major economies around the world rivaling the united states and the u.s. allies obviously positioning themselves a little bit for that i mean you can see that was germinated it has been very focused on china. you know it's a major exporter it needs to keep its export markets open and. you know the china's going to be in india too you know these are these are vast economies and they're very important for exporting countries japan too is looking that at that very heavily so yeah the world is changing i don't know that the trump administration is. it's triggering that but i think it certainly. has have an accelerating impact on it right you mentioned the possibility of china blowing up so let's put that into the mix a little bit so you have these economies vying for global gemini

global superpower status and these economies are built on enormous debt the u.s. and china are really empires of debt the odd man out in that scenario would be germany of course world's biggest export or depending on how you calculate that sharing that title of china and then of course you have another country with virtually no debt whatsoever huge energy resources on the ascent allying with china and creating their one belt one road pan eurasia infrastructure project that would be russia of course so i guess my a question is relating to germany germany's seems to be the swing vote in all this amongst all this debt and geopolitics the politics of russia the politics of the u.s. china germany's the only real viable country with a strong export market strong social services networks in place or social programs

are in surplus how will germany go forward do you think in all this they've got a huge military base there for america but they get thirty three percent or more of their energy from russia which way will germany swing walls. well german is essential. interest economy they have to have export markets for this economy to work so as a as a and every politician in germany knows that it doesn't matter whether they're left or right and there will focus on that they will focus on exports to know they need exports and they asked war you know war is what can we export our merchandise to and they have a lively explored with russia they have now the biggest exporting target used to be france that has not so much receded into the background i think it's number two now china and the us have been at the top now and so it is

a. it's a country that's trying to stay out of politics and just export now not every country can do that if every country has a just to have a surplus a trade surplus you know that's mathematically won't work so you have to have some countries with a deficit and some with a surplus and the countries with a deficit like the united states eventually will squeal because you know the trade deficit is long term have bring british use. and so we have german is in a very strong position right now are if you look at it ten years fifteen years ago germany was the weak man in europe and a sick man in europe and it went through internal restructuring it brought its wages real wages down it did all kinds of very painful things and became competitive again so you know that's wot germany tried to talk greece into in spain and others and it's not working or over there but that's the program

germany went through standards of living actually sank in germany over those years . and it will as it became what competitive that's not the case in the united states you know we i mean yeah real wages also went down stagnated but we didn't become more competitive through that process. yes that's one of the issues we have offshore any traction in the united states a lot and to john and others so we have accrued a huge trade deficit which is going to eventually be a problem to us and. china is japan a big surplus country so if you have a trade surplus and you accumulate. points changer serves you've got more options there right now than i did say that we don't have a whole lot of options yeah yeah the germany went through a restructuring under the helmut kohl era levy passed away recently and people talk about donald trump as the new round reagan what needs to happen is that donald

trump needs to be the new helmut kohl and put america through some really difficult adjustments that need to be made that are twenty years overdue thirty years overdue but instead they're going on a debt binge and hope that debt will somehow cure their their l's now talk about chinese debt for a second the. the corporate debt as you point out your recent piece is eight hundred trillion dollars or one hundred sixty nine percent of g.d.p. and how much of that would you classify as bad debt and how do you how do you define bad debt yeah so for it is a saying that about the less than one trillion it's getting better it is. a bank loans that have stopped occurring interest and those various levels of it. and there are some of them are in default in a workout conditions and others have just to stop occurring interest and nonaccrual . you know these are non-performing loans. china.

controls for four state owned banks the biggest when you control source banks their mega banks among the largest banks in the world they have huge loans outstanding a lot of these loans are in off balance sheet vehicles so they're not really visible on the bank balance sheet this came out fitch analysts did that in that work in two thousand and eleven and that's pretty radical at that time and it's now common knowledge and so yeah so the government says less than one trillion is as bad of this. fitch analysts form of fitch and was done in working in private so that it's actually more like seven trillion dollars. and that would be. like sixty five percent of g.d.p. china's g.d.p. so if you try to fix that in the traditional ways. so. these companies.

go bankrupt to default on the loans and for the banks to to take the losses it would not only take down all the banks but probably much of the chinese financial system there's just a huge amount and everybody is expecting this to happen some day. but you know there john has a lot of tools available to try to. to create this fake sense of stability i imagine that china and germany being mark and celeste economies are trying to grow at the expense of other economies and during the era of the gold standard of course this is the way international business works conducted and then occasionally gold would have to be shuttled back and forth between countries to even out trade imbalances of course we're no longer on a gold standard run a monetary fee and currency standard and the way governments deal with this is by just interest rates and the way to get out of paying debt. in the case of america

is it keep lowering interest rates so that banks don't have to realize those losses on their books and they hoard all the capital and there is a shortage of credit in america and that's why the economy is going into the toilet and that's why there's an insurrection threatening to take over the white house in china because there's a currency peg to the dollar they have to adjust accordingly. but are do they have room to adjust does the people's bank of china have room to keep abreast of americans psychotic self destructive monetary suicide wealth. you know china has quite a bit of froome they're in the unique position or the government the central bank and the big state owned banks all can act as one entity so you have the lenders and borrowers. biggest bar as a state owned companies to you know so yeah lenders and borrowers and authorities

are all acting as one so if you know if a company can't make a loan the bank and allow the company to convert this loan into equity and just keep it on the books for ever not recognize a loss and these things can go on for a long time to eventually you know it can't but so you know that they'll push out that financial reckoning for as long as they can and that's meanwhile they're trying to tamp down on it in terms of a currency you know there was a lot of capital flight going on out of china and it pushed down the juan and in china to try to crack down on it seriously and they have and so recently they were able to depart they don't want back up now and it it behooves china to have a fairly stable. exchange rate with the dollar because that is largest export market and you know if there's upheaval on the american side on the economy that

will have china very hard antialiasing china wants is a collapse of the u.s. economy or a major recession in the u.s. economy that will be terrible for china twenty five percent of china's exports go to the s. and it is. yes an interesting what you may have brown people say in america that and so i capitalism on the way up and socialism on the way down as i distribute the losses through my taxes and things like that and china's almost on the way around to socialism on the way up and capitalism on the way down brutal capitalism and things start to collapse not only the government's. protecting itself against innocent action as i have. so many times before so based on to see how they deal with the downside of capitalism kind of amusing when you think about it but anyway you know we've got to take a break we've got to go away actually can you stay around for another segment sure all right great well that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert if you want to catch us on twitter you can do

so at kaiser report i want to thank our guest wolf richter of wall street dot com and so next time by. and book a plea will place on a police a key to keep. it in we were going to commit there we were going to write that baghdad. just like love was such war and you don't want to die joyful for the places i feel

we should i should think almost as you told me before says police. but. fairly strong. or well respected scientists. do chemicals that. really increase the risk of cancer. they do not believe that is true by independent scientists.

compensation for my time as was the others why is that the meat lobby. doing if you want to learn more you'll get a. lot of you. back. big business against health. the two thousand and eight economic crisis turn some countries into pigs these are the countries with we can recall them is that needed austerity policies if you are . even the recession. these are very bad idea it doesn't work it makes millions of people very happy and employed to see their wages decline almost a decade how good are the results. i

mean. anything. why are the same measures still in place one of the consequences to. labor. well first. of this is the truth the consider is that the consequences are actually quite acceptable to the decision makers. in the market that. said the lesson of. the month from the i don't. know the absolutely i'd.

love to see the. next one. london police say they are now investigating and the acts of terror after a man shouting allahu akbar injured three offices near buckingham palace. stranded orphans are reunited with their relatives in russia after their parents took them to iraq when they joined islamic states party has been running a campaign to help with best play for time. and digging up the cost poland is demanding it be paid more to reparations.