and sanctions and and restrictions and censorship in the way of that say that global financial system all right well i mean to your point about interest rates if in fact interest rates are on the way up and the ten year treasury bond is over three percent and heading to a more normalized five or six percent then junk bond market would head to a more normalized thirteen to fourteen percent yes from the current five percent so these companies like we work on netflix are trying to lock in cheap money now before it becomes a lot more expensive but as you point out in the case of we work they have a long term lease obligations so if in fact rates spike and the economy slows they're not going to be able to fill those properties up with tenants so it doesn't matter what the price of junk is because they will be driving no revenues and they want them to service the debt at any interest rate we saw there in the two thousand and seven two thousand and eight crisis is a lot of these banks like goldman sachs were borrowing long lending short overnight all these like junk bond basically entities and they ran into a time when there's

a classic mistake that banks make is that this is the bane of banking is that you don't know how to handle your maturity. book written rests the risk associated by being exposed to different points in in the yield curve along the from you know overnight money out to thirty year money so if they're just applying that to we work it's a high risk real estate play disguised as a start up. but once they reality hits the fan it could implode and that flex is spending billions on content assuming that you know that that they will be able to increase prices to account for that increase in debt service which so far at this moment it's not able to can close yet been able to however they had the stock is trading at hundreds and hundreds of times earnings which is typically not a great thing going back to this we work real estate is very ill. liquid is an

illiquid market and that's part of why we saw all the hyper financialization that happened in two thousand and seven to two thousand and eight based on the sub prime market is you solve that problem of the maturity thing is like these thirty year mortgages were packaged into c.d.o. is that were swat unit change and overnight like several times here we have the same thing they're trading like dot com companies though in this paragraph here will remind you of your dot com days the prospectus for the bond offering from we work obtained by alphaville on the f.t. points out that revenues jumped by one hundred three percent twenty seven thousand from a year earlier to eight hundred eighty six million and that the total expenses jumped one hundred eighteen percent to one point eight two billion based on this well established unicorn strategy the net loss in twenty seventeen jumped by one hundred seventeen percent year over year to nine hundred thirty three you know they have to spend two dollars to gain a dollar sensually and revenues the amazon you know they have lost money for years and years and they now own the market and that's the strategy so we work our

netflix our apple or these other companies day are willing to take this enormous risk that they are going to burn through more money than they have could ever raise to gain market share it works until it doesn't work you have amazon netflix are genuine dot com companies this is the real estate company which has huge elisa's long term leases whether or not that's going to write it's like any lampard over at sears yet thinking is going to be the next warren buffett because of a retail foundation not understanding that warren buffett is an insurance based foundation. lampard is near insolvency and sears stock has lost ninety five percent of its value hey we got to get out of the sun don't go away and much more beauty coming your way.

twenty eight team coverage we've signed one of the greatest kill people. but there was one more question and by the way who's going to be our coach. guys i know you are nervous he's a huge star and a huge amount of pressure come out you have to go i mean eighty percent of the problem here with you and do all the great the greatest good you are the rock at the back nobody gets past you we need you to get going let's go. alone. and i'm really happy to join us for the two thousand and thirteen world cup in russia meet the special one it was also appreciated me to just read the review beyond the team's latest edition to make up a bigger. book. so what we've got to do is identify the threats that we have crazy people in sunday

shouldn't let it be an arms race off and spearing dramatic development only mostly and going to exist i don't see how that strategy will be successful very critical time time to sit down and talk. welcome back to the kaiser report imax their time now to go to dan collins in shanghai and the author of a china money report that collins welcome back to mexico to go on air again now then the two koreas are signing a peace treaty who will get the nobel prize for this and how is the bank present

and china well my personal opinion they may be she jinping i don't know maybe donald trump maybe the you know the president so korea part of syria now the news over here is trying to you know very great news the end of the creek and war after in more than fifty years. kim jong un says he's going to completely denuclearize the north korean peninsula fantastic news you know on the skeptic side they said we've seen this before two thousand year two thousand and seven several to some and nothing came out of that but i think we're out of at a crossroads we have got a crossroads here because of the donald trump factor i think because of the aggressiveness that nor that the united states has shown over the issue i believe china has finally taken the lead here and there that the puppet masters behind this piece that we see break you know in north korea well you can't discount the role of dennis rodman in all this i know it sounds

a bit crazy but he did he live kim jong un in a way that no one had done before and up on the way really to a dialogue. how will this play out economically are there any sectors that wall the boom as a result of this interview than early to say but keep in mind china is the linchpin for the north korean economy ninety percent of their trade is with china and that trade this year is down some sixty seventy percent because of sanctions because china has actually put on the sanctions the north korean economy if they let loose could boom because. they're so far behind the modern economy and the hard to say what sectors will will will open up the will we see you know how that was the real question are max and how do dictatorships die how does kim jong loon well the kurds are over you know i open the curtains on the world to the north koreans this is and still remain in power that that remains to be that's going to

be a tricky move for him that's interesting what you're saying this other words the sanctions that china and post on north korea sams to have brought them to a negotiating table and of course the sack shows i guess you could say orchestrated by donald trump and donald trump is proving his farai that geopolitics can be saved through the view to the lens of deal making and and in china of course where they are dyed in the wool dale makers that approach same stamp a working how does it have fact on a broader sense in china in other words the trade war that saddam going the currency war that's ongoing that crop or lesser share but china where a way out and that their relationship them yeah well i believe the china is actually on the losing side of the treaty or here you've seen a lot of chinese companies including the buy deal makers the trade alcohol heavily

reliant on imports. from the united states so. there's a lot of companies that have gone with the chinese government are asking for relief with these new duties the chinese put on american products what i found most interesting is what china has done is e.t.e. the tillicum or what united states did is easy the telecom maker with limited chip exports to chinese companies this is a new phase of the trade war the trade we're getting a lot of press here everybody's talking about it i think china has pulled back they've already announced huge opening up in many sex. the car automotive sector is now going to open up electric vehicles there's a lot of areas now that the train is going to open up their economy and allow more imports in well the same time you mentioned that you know geopolitical you know they're playing a game of google which is you know a legion chinese game later still you know if your tears were that's one bill one root is that's what the soap train to see you saw us andrew this week max mentioned

china now controls and so you're in syria chemo bleeding you said that right well you mentioned the game of go. this is another game to throw into the mix along with chess for d.t.s. forty d.h. ass checkers and now go now when you describe go there to sounds like you're describing mercantile ism which of course has been the chinese room and go to global economic policy that is just grab as much global trade as possible from the other guys and other words they don't have the idea that all can grow simultaneously it's about growing at the expense of your trading partners and of course some of the gold standard that worked out pretty well because as the accounts were settled in gold and you had some consistency in the

current say and the currency was gold but we live in an age of fear and currency and so is a market to last policy or a game of go as you describe it does that work in a free ad currency where people can just print money all day long in other words. china's weapons here they're buying gold they are buying gold and they are expanding through american tell us approach but america has got the federal reserve they can print money all day long and they control the dollar which is the world reserve currency. so is this match up who wins in this match up down well absolutely i think the last hand the united states had to play is the. federal reserve the u.s. dollar with the china of those taking them apart the swiss system built off the from the united states now the united states is even weaponized the swiss system against russia and the other country that's going away russia china are building their own swiss system the you know we talked about five years ago max are way

ahead of the curve of the petro you in i mean i've said years ago we're talking about the china movie no oil in to remain be the next phases the remain b. to become a global currency that's what they're moving fast on that trying to move all the oil the shanghai futures oil futures exchange open you know late last year so as we see more oil contracts go into renminbi remain be international trade get settled more and more in order to be really be will eventually challenge the dollar so to toe and then all of a sudden it won't be such a christian game people are going to have to are going to demand real assets for their money right now that would imply a rail assets for their fat money watch what employ higher prices for real assets and i would suggest that commodities in the u.s. like oil would start to trend higher we are already starting to see the oil prices creep up that might be a result of what we're talking about here you mentioned russia there

a chorus russia china are establishing a one bell want to run out going all across asia a year asia and to russia they're creating this huge economic zone which well rival the dollar and interestingly enough there's a rumor is that they summit between donald trump and north korea's kim jong what happened in a city just north of japan what happened to be in russia so how would that play dad that seems remarkable yeah. keep in mind cheney the cheney's former minister won he is now. going to north korea this week and i think they're laying all the groundwork for the trump kim summit to come and i think they're laying the groundwork not to mention i think china's a puppet master behind this piece but they're going to give the credit to donald trump and i think you know the big hand at play in this of course but yeah i mean the summit we will see i think china is already working behind the scenes they're going to want to demand that the see the nuclear inspection sites. has him take

those off line what comes out of the summit are they going to ask for american troops to be withdrawn from south korea you know we still have thirty thousand troops sitting in seoul as pawns in this game to where north korea ever attacked the u.s. these would lose thousands of soldiers and then it's instant game on you know what the united states so are they going to mean withdraw those troops so far they haven't asked but it's going to be issue what comes out of the summit but i think the tone coming out of him and what we saw this last week with the engagement from south korea i think we're at a total new turning point and i think china is going to put north korea under its wing and the question why is why is north korea feel so safe not only they want a volley from the united states that they would not be attacked and then they would be nucular has china given north korea nuclear shield have the have they promised north korea military support not forgetting the korean war they lost over a million people million soldiers so they are you know they're in the game and

they're going to support north korea right well yes imagine the sanctions have really put a lot of pressure on north korea and it seems that donald trump maybe locked up the geopolitical chess board argo gorup board and looked at where the u.s. was wasting the last monday and the military budget and said hey you know those troops in south korea could probably get gul and we can save a lot of money right there let's get that in laotian and. as a result that brings and to play china south korea and russia and as a way to unravel this enormous military apparatus at the us as much as half of tax dollars approximately one point five trillion annually goes into the pentagon's budget and you know i think the pentagon burns two hundred fifty thousand gallons of oil a day or something extraordinary and say there are thousands or millions or something

unbelievable so it's an unbelievable drain on our energy resources so just as a single point of failure or a single point of leverage and same like trump is maybe playing a very interesting game here now let's move on to the block chain a bit going to china is relaxing as heavy handed response to bitcoin is that true what are your thoughts i think china china has to have users there is big going in there is blocking the block he was actually incorporated in the last five strategic five year plan from the chinese government angulo april twenty eighth announced a one point six billion dollar investment on blocking startups three offices free human resources or handled the bank of hong jewels getting involved in looting loaning money to blockade startups onto of course the home of ali baba is financial a financial book two hundred fifty billion dollar i.p.o.

we talked about it before max trying to so far ahead and been fifty times the rate u.s. has in mobile payments shenzhen is also known as something similar to compete with one job changes the whole of concern in many high tech companies so china is big on the blocking the p.t.o. see people's bank of china has already done trial runs with their own crypto currency that leads into crypto they're not such a big banner because they want to like every other government they try to control your money control your life with your lease which is which is the paper money. so you know i mean me me of nona there was a latina given to conference here a few weeks ago which actually attended and we were thrown out and right before lunch the government came in and literally yelled everyone's got a goal and over a thousand people we had exit conference the morning was most of inject but then when he started talking about krypto wallets and how you can get your money out of the country then it got shut down so yeah well that no kidding out of a well i got

a twenty second is going to make a comment on scene. so you know kim is the train to accompany the first trial runs with black jean with gas imports and exports where it's completely the central asian trading spirit in all parties and ball have a record of it so trainees companies are moving fast blocking and i expect them to be the world's leader just like they are with mobile cream all right dan rather tad thanks ray on the kaiser report thanks makes that's going to do it for this edition of the kaiser report with a mask as our state's aerial on race on twitter as kaiser report until next time by a.o.l. . join

me every thursday on the alex salmond show and i'll be speaking to guest of the world of politics sports business i'm showbusiness i'll see if that. the new global economic war is unfolding in the realm of education the right to education being supplanted by the right to access education loans higher education is becoming just another product that can be bullish and sold but it's not just about education anymore it's also about running a business and what you're good at the. most. that they could in you. want is the place of students in this business model before college i was born now and i'm extremely bored higher education the new global economic wall.

in the heart of the swiss on the shores of lake geneva. in the land of banks and discretion you will discover the most secretive place in switzerland. in the middle of a warehouse complex a stone's throw from the border with france the geneva freeport. watched by surveillance cameras and surrounded by barbed wire fences this complex is traditionally a custom zone where merchandise is stored before being exported abroad. but today it has become a permanent storage site with sixty thousand square meters of space rented by the city of geneva to transporters or to private individuals to safeguard their assets . behind these anonymous double locked doors

there is gold and diamonds. it is also the largest wine cellar in the world with three million bottles laid to rest. gone clear bottle's worth five hundred thousand two thousand dollars quietly maturing and gaining in value at a constant temperature and humidity. these buildings are anti earthquake and the doors resistant to explosives. and to protect these treasures from fire a special room houses hundreds of extinguishers that can be activated at any moment . another reason the freeport take so many precautions is because behind its gates rest priceless works of art thought to be worth tens of billions of dollars it's perhaps the world's largest museum but

a museum no one can visit. the geneva freeport is one of europe's best kept secrets it stores works by picasso rembrandt leonardo da vinci and thousands of antiquities a treasure the size of which nobody knows the scale or the value. of all the false a. means. another secret is the name of the owners of the works. don't. just. recently a number of cases have tainted the institution's name the looting of jewish assets money laundering tax fraud it's hard to say if it was hidden or not but it was kept very discreetly in the freeport. the geneva freeport is an eldorado for art dealers wealthy heirs and fraudsters it's where they do their business hidden from view.

one man agreed to open the doors of the freeport to us eve movie with his managing director almost. yes he runs the world's biggest company in the transport and storage of artworks that will see it was sad to see a leader one st's just fall out and also if the doctor or lawyer. they did so f. up was it said they all don't this is a if they do once these calls hold it is from his own press report read what you already perceive although. every day dozens of priceless artworks enter or leave the store rooms managed by eve bouvier's company. there's even a special workshop to pack and prepare the works for shipment. that

lost it on the look for something else on the. bus from exposes to an unknown group dozens in and three. that are good enough for me guess i'm assuming too because he said to me. what you appear. on the. estate would be a sequence to. what degree and. just put it under the. farm and you could not question the company don't want to and if it. does if i. put you at the fall of one pick a sample data. center for public. then look for missing. jennifer about within the sun for the sake of you don't see it as a coffee don't see it think of it to do the nickel for don't see it. either the watch word is secrecy. eve bouvier was originally a shipper but he transformed his old shipping company not to look cute founded in

one thousand fifty nine into an art market multinational. it is now present in geneva luxembourg and singapore. the man. nicknamed the freeport king had a great idea to earn client loyalty his company would not only pack and ship artworks it would provide in geneva twenty thousand square metres of storage space along with framing and restoration workshops. it also offers its clients special rooms in which to admire their assets or negotiate sales dealers gallery owners and buyers can thus meet in total discretion . today the former shipper has become a multimillionaire. we meet him again in paris in the high class eighth district

a stone's throw from the palace. eve movie the shipper of the geneva freeport welcomes us to his paris home a richly decorated and furnished apartment. dog said on several. very devoted. to. the toy just because you foresee a day visit but i want to hear that moment get up and able to do and you will still . keep was it the keeping it is said and designing is any more interest. in it but i could be a whole as it does to fit us though it's one of the year of costs to keep your more to. keep the load of going. to sop is that. by storing and shipping his client's artworks each bouvier gradually learned

another much more lucrative trade as an art dealer. just because you felt. on demand that album quick wit is yeah pretty quick to leave office in the now shit quick wit economy function is it ok. it is a restaurant though. he. did it guess who got his a vehicle. get to have almost without us the last you're given the us don't go to the the debbie you know in order to take it. upon. for thirty years eve bouvier has been in the ideal place to learn the secrets of the market. love almost a little brute the shark. comments on them in the notebook a good missile videos of a must to avoid is awful miss you so walk at the root of all. the sad gets on

a cute since you yeah so our quote of the day on the divorce rate in the. us look at the awfulness you said the interest rates are lesser sort of all to do more good enough. thanks to the network he's built up the businessman has even opened a gallery on the cable ten the antique dealers district one of paris's most prestigious addresses he takes us there. he wants to show us how well established he is and how he buys and sells some of the most renowned names in painting and sculpture. and i have to tell you we hate. to think about it to do all. the gallery director greets us. the gallery houses significant and very expensive

works this marble sculpture of eve is by august or done it's already been reserved by an asian client. it's always you know on the album so. the. when you have preserve examplar it. really did go toward left with you on what is known. as you just a skill they get as you see them your diet it is good you presume about a lot of shit without this question. and look at all street vickie if you want to because then most of the days of nominally father own more famous signatures and in drawing by salvador dali. should go. he didn't. just sit and listen to him. in the.

region against. mosquitoes usually six inches didn't get. supervillain in the cities only in disgust forcefully and discuss sure can discuss. this question. or fit. rules that. they picked up else and both come up with. the feeling of prefab it that people skip the truly pieces key to. these kids as they go see. if you want it. that. is almost by the knee deep in the community bus weekly. according to inside information these works are worth several million dollars. an art gallery with a view of the louvre quite a showcase. at it.