i know. i am. a. little. stranded orphans are reunited with their relatives in russia after their parents took them to iraq plus. the iraqi army says it has recaptured tell a far from islamic state rights groups voice concerns over the fate of civilians. and belgian police launch a counter terrorist probe into a stabbing in brussels in which two soldiers were killed. kevin owed will be live

with the stories that shaped global news over the past seven days in around an hour's time stay with us. skies are welcome of the crowd as a ripple all look at this this is like there's a group of film you know member that was made on the survey of the film with terry getting shot by like five or six cia guys going balderstone but we're not talking about that today talk about other stuff. well actually we're continuing trying to it at the whim of narcissism america looking at itself you know it's descended into the afterlife as it's dying and it's confronting itself and a movie is quite ass because when i look at hillary clinton i often think of whatever happened to baby jane or norma desmond but it is a woman who's gone crazy with her power alas the lady macbeth you know she's going

crazy and apparently the democrats don't want her around here's the headline democrats fret as clinton book rollout knows the losing presidential candidate wants to talk about what went wrong her party wishes she wouldn't this is from bloomberg got him to new please don't mind may i'm just saying a lot of the did over there this is from bloomberg dot com many washington democrats though unwilling to criticize her in public wish she would move on as senator al franken has put it they fear that her complaints helped trump make his case of the controversy surrounding him flow from the democrats' bitterness about there are twenty sixteen laws 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 it

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 that couple of years yeah 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 antarctica build an igloo and alaska move in with sarah palin that's what's in it you know it's all about this notion of i'm still big it's the pictures that small so says hillary clinton she still thinks she's waiting for costs up david oh so come on down really really see now she's so washed up that she makes fill in some metaphor there i don't have the where of course it's also like the game of thrones where the character marjorie the new

queen to the iron throne and the mother lost their sea 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 round the court might not know that particular reference they've moved on why well you know it's a long story but 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 books coming out 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 legitimate. d.n.c. candidates run for president and he would have beat donald trump so all the catastrophe that she claimed donald trump is responsible for is fur 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 and covered over and disappear but the need to actually see yourself mirror not just admire yourself in that mirror when you get to that mirror that the aztecs 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 e-mails 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 i'm 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 as 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 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 that 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 a usually only two there's an oligarch bully 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 sort of reflection of where we are today and terms of the fact that you know he

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 to 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. 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 should 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 here is so old fashioned and behind the times it's like talking about beavis and butt-head well i have a headline about trump 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 deep 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 mist well they were going to lhasa 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 shame in society is that are the people in the crypto development space by the way max study that theater at n.y.u. i am a theater. degree and see it from a matter of university at the dallas and division of di so as of my work at p.d. entry i was in the galton division that day would 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 taxpayers retailers towns cities and states throughout the u.s. are being hurt many jobs being lost five point seven billion was wiped off but you know that's only like one point two percent and of course the 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

says they list 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 the economy has never been more leverage than the stock market's never been more lovers so any any butterfly flapping its wings in beijing can cause amazon to crash or facebook to skyrocket because there's just too frickin elaborate fundamental analysis died twenty years ago technical analysis is worthless because you have the pull 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 well 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. a well we gotta go for this bit but will be back after the

break. a. horndog minos only between but. did to the relationship between kids sure it was approved suggested no proof and a fairly strong one there were two thousand breakouts involved in the study it's a very extensive study done by a well respected scientist. do chemicals that down the advertising. really increase the risk of cancer and i chose a means of known to use damage in the launch of tests. is it a sham that skepticism they do not believe that that risk is his truth by independent scientists so did the meat industry pinch you for this i received some

compensation for my time as well as the others why is that in the me too happy. to know like what we've been doing and if you want to learn more you'll get a definite on the flood. you're not. a. big business against health. but you're starting to show us. all. in safety a lot of. what politicians do to. put themselves on the line to get accepted or rejected. so when you want to be president. or some want to be preached. to going to be pro-choice that's what before three of them all can't be good. i'm interested

always in the waters of. course. welcome back to the kaiser report i must geysers i'm not certain to wolf blitzer in san francisco he's over it wall street dot com wolf welcome back thank you for having me max are i wulfric to a recent headline a blow burger reads the new world order is leaving the us behind american allies and 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 this idea but on a more of a nitty gritty 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. u.s. allies to be 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

what cool things down or bent but 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 giant is 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. is 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 had 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 or 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 that 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 tries to have a surplus a trade surplus yeah that's mathematically won't work so you have to have some countries with a deficit and some with a surplus and then countries with a deficit like the united states eventually will squeal because you know the trade deficit is long term have bring great issues. and so you have germany 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 well 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. that's one of the issues we have offshore me and fracturing 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 would say it's 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 talked 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 there elz now talk about chinese death 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 yes so it is a saying that about the less than one trillion it's bad debt and bet it is. a bank loans that have stopped occurring interest and those various levels of it. and they're 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 it's now common knowledge and so yeah so the government says less than one trillion is as bad as the. fitch analysts form a fridge and it's 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. such as these companies.

to 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's expecting this to happen some day. but you know there john has a lot of tools available to try 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 at currency standard and the way governments deal with this is by adjusting 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 a 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 to does the people's bank of china have room to keep abreast of americans psychotic soft destructive monetary suicide walther. you know china has quite a bit of room there 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 yeah 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 if it if the hoof china to have a fairly stable. exchange rate with the dollar because that is largest export market and you know if that is upheaval on the american side on the economy that

will hit 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's. yes an interesting way to make that brown people say in america that and so i capitalism on the way up and socialist. i'm on the way down as they distribute the losses through higher taxes and things like that in china it's almost all the way round of socialism on the way up and capitalism on the way down brutal capitalism if things start to collapse suddenly the government. protecting itself against an instruction as i have so many times before so basic 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 other 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 want to thank our guest wolf richter of wall street dot com and so next time. here's what people have been saying about rejected in the us is it actually does pull on also really show i go out of my way to you know what we want to do is the really packed a punch. is the john oliver of our dear mary is doing the same.