the nature of a u.s. dollar empire remember we've had this exorbitant privilege for the last forty years since nine hundred seventy one since we went off the gold standard we've had this exorbitant privilege as charles the goals of government pointed out that we were able to basically print money and get free goods from the rest of the world and this worked out quite well for a very long time and led to globalization a rise in global living standards and now it feels like once we arrested one trade barrier one basically barrier by a swift to this financial this dollar financial system a few years ago against iran and at that time our guest jim rickards said be careful what you do because if you use this weapon too often things could fall apart but this story about c.t.e. what happened to z t e m a massive chinese telecoms company that got destroyed overnight by the u.s. and now it's time they're trying to resurrect it is an interesting one right well

you know china is taking our jobs so here he is very near to having just been elected and he's making sure the china gets our jobs he's exporting our jobs back to china it took him back you know he's putting him back he's actually so it is like a rube goldberg machine in that sense and it also reminds me what happens when you have a global economy that is completely tied together just in time delivery like a gordian knot of trade if you try to move one little part with a sanction or a tweak here it affects the entire ecosystem of all global trade but it's not like we're living in the eighteenth century or something where you put something on a ship and takes a few weeks to get to the other side and all going to some of the trade in gold now it's all instant sanely issues especially with block change coming into the mix is instant taney asli settled upon the execution of the trade it's instant settlement no banks even so trump is like wallowing in there like a drunken boris yeltsin liked trying to figure out like. to come here.

dog. writing is like completely bamboozled himself is fooling himself and it also reminds me in the u.k. when they have a transportation system set up in different divisions so them that one company is doing the railway and other companies doing the stops along the railway and they're competing with each other in the u.k. privatizing is a component of their transportation system so then they compete with each other and it doesn't work you can't get from point a to point b. because there's two separate companies or five separate companies competing with each other to stop you from getting to your destination so you end up with a are really system is broken where trumps applying the same for cocked a logic to global trade and looking like an idiot of course here's a us dollar based trade system that has benefited us immensely yes we have lost a lot of jobs but we've got receive a lot of goods for free here i'm going to show you the consequences of imposing sanctions like they did on the first i'll tell you about. chinese tech giant on

brink of collapse in the us cold war this is from the new york times went to china's most internationally successful tech suppliers with about seventeen billion dollars in annual revenues each facing a death sentence the commerce department has blocked access to american made components until twenty twenty five saying the company failed to punish employees who violated trade controls against iran and north korea so they had already paid a billion dollar fine then they said they can't trade use any u.s. parts many of their components for their various products that they make are actually from the united states so basically they had to shut down fire seventy five thousand people around the world and seventeen billion dollars from the global trade system evaporated but the point is that because of this as the new york times points out as the trump administration threatens a trade war to stymie china's plans for promoting events industries the firms to vale's are proving an apt demonstration for china's leaders of exactly why the.

country needs to be more self-sufficient and technology chris lane a telecom analyst in hong kong with sanford c. bernstein believes that china now has the resolve to whip semiconductor business into world leading shape even if it takes a decade to do so quote they're going to pour billions of dollars into preventing this from ever happening again he said in the long run strategically this might be worse for the us than the current situation so he's going to force china into the arms of iran force and germany into the arms of russia so he's treading a multi-polar world which means a multi currency world which means block change because world the biggest loser is the us dollar in america yet in this case of course the us corporations have benefited from the semiconductor business that needs microchips from here so it's helped us manufacturers the u.s. companies u.s. employees now he's forcing. out a business or is trying to bring them back into business but he was forced them out

of business because you couldn't u.s. parts but remember there are many many other nations the world and they all look at this and say well is there going to going to be a point where we're going to suddenly be cut off should we build our own manufacturing system to rely on any u.s. components when it's it's quite possible that trump or whoever come becomes president next could do the same thing right now that is that's inflationary because up until now in fact this huge deflationary wave of globalization and the us dollar is a single source of borrowing which is then tied to the yen and you can get money for negative renter's trades but if everyone splits off of their own separate five times they're going to rebuild and replicate everyone's manufacturing capacity in five or six different countries that's written inflationary that means that the u.s. dollar bond market the u.s. treasury market now at three percent the highest it's been in years it's going to five or six percent i mean every mortgage in america is going to go out of business do you bank a new report it's going out. business it's insolvent that'll set off another two

thousand and eight firestorm of global banking collapses it's happening now where's the money going to go. about that iran sanctions story this was another story that happened capriciously like with that it was so like the the kings of england before the magna carta like it was very whimsical and like i'm going to behead that enemy of mine i'm going to behead my cousin because he insulted me at you know thanksgiving dinner. now that they thanks him well i'm not going to thanksgiving dinner at your house so you're worst of having like a burnt turkey breast but here but here is another article about the consequences of using that sort of power of pulling the trigger on the power that you have to cut people off from the u.s. dollar system time to break free from america this is from a blog called irrationality and you know air bus has ten percent of their components are made in the u.s. so just ten percent of their components but because of that because after all those

years in negotiations and they're rainy and dale and he decided to add a whim via tweet to just knock off that system and europe has billions of dollars of new trade with iran airbus has a billions of dollars deal so suddenly air bus can't do this and look at the consequences these are things said by french and german ministers french foreign minister. complained that quote we feel that the extraterritoriality of their american sanction measures are unacceptable the europeans should not have to pay for the withdrawal from an agreement by the united states which they have themselves contributed meanwhile french finance minister bruno demand asked yesterday do we want to be the assholes who obey decisions taken by the united states while clinging to the hem of their trousers or do want to say we have our own economic interests and remarkably the article goes on to point out that because of these iranian sanctions they're actually disc. very high levels in europe among

the ministerial class of devising an alternative to the swift system again this is really important to the demise if the fewer dollars you have circulating the fewer the less power you have to mess up the system and destroy your enemies by cutting them off from the swiftest of a center ship enabling yeah right if the us doesn't like instilling astonish they can cut him off from all credit if the us doesn't like what's happening around they can cut him off from swift right that such a ship enabling that goes against everything that you would normally believe is the story with free trade so america is on a free trade country its not a capitalist country sonic believing in competition it's a monopolist country that believes in monopolization and then like to use the dollar as their bludgeon to beat people into submission and if you try to get out of the dollar whether it's syria iraq libya or iran just actually said they're getting out the dollar to go to euro boom boom boom boom boom boom bobo bobo why

dollars collateralized by violence ultraviolence i believe it was under obama actually that they first cut off somebody from the swift system and again it was it was jim rickards who has done extensive writing and research about the dollar and gold in f.d.r.'s and he said that was. we could rule that day that we did that because yeah we we were like yeah we won that battle but we could live under the same records is that so should not go. well as they point out european politicians are now considering what measures they can take to protect themselves from american efforts to force them to comply with american sanctions policy according to the e.u. is considering various avenues one of these he says involves looking at europe's financial independence what can we do to give europe more financial tools allowing it to be independent from the united states connected with this is a proposal to set up a purely european finance house to oversee euro denominated transactions with around and again that guy. the french finance minister you know in your denominator

transactions the rent call up tony to libya bit pay and you can do bitcoin transactions with iran between germany and europe all day long for zero percent transaction fees and no restrictions whatsoever get with the twenty first century germany don't let america take france but remember get rid of all the troops by the way germany that's a huge drain on your economy you don't leave us troops in frickin or wherever so i mean interestingly this system that we have now this with us dollar based system was basically set up because of the french finance minister under de gaulle called the fact that america had this gold standard and yet a dollar standard as well on top of it that they had an exorbitant privilege and they called back the three hundred million dollars worth of gold and that set off in motion the ending of the bretton woods agreement so here they are calling again they're pointing out like hey this is where it's subject to these crazy there's a goal moment is another de gaulle moment but quickly in the last headline here this is reuters and they're talking about again these iran sanctions and the

consequences and that is iran oil sanctions could advance china's petro un this is from reuters not from os china's position to be a chief beneficiary of the u.s. decision to withdraw from the iran nuclear deal as it would give china leverage to demand oil imports be priced in un several currency experts said on thursday so just just as invading iraq and spending lord knows how many trillions of dollars killing lord knows how many hundreds of thousands because we're not allowed to audit how much we spend we're not allowed to audit how many we killed but the fact is it benefited iran here again we're going to benefit china is like a blundering empire not that it's unique to the us every empire does the same thing they all become hubris thick and think they can bully everybody rome did it spain did it britain did it everybody thinks they could do this and this is never different it's always the same yes always history or rhymes whatever well they had a lot more crazy stuff going on in the second half so don't go away stay right there.

in twenty forty you know bloody revolution to the demonstration going from being relatively peaceful political protests to be creasing the violent revolution is always spontaneous or is it you know here i mean your list put me in the new bill is that i do school in the middle of the former ukrainian president recalls the events of twenty forty. of those who took part in this to do over five billion dollars to assist ukraine in these and other goals that will ensure a secure and prosperous and democratic. twenty eight team coverage we've signed one of the greatest goalkeepers of all time but there was one more question and by the way was going to be our coach.

guys i know you are nervous he's a huge star and the huge amount of pressure you have to go i mean eighty percent of the pole with you and do all the great the great the 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 for the two thousand and thirteen world cup in russia meet the special one. needs to just write the review beyond the team's latest edition to make up a bigger. welcome back to the kinds report i'm nice guys are time now to turn to gabriel abed he's

the co-founder and c.e.o. of bit barbados based crypto fin tech company making waves in the camera been going to be a welcome thank you for having me on the show it's great to have you on the show because we get to travel around the world and find out what's happening trip down in different places in barbados has suddenly become a hot spot encrypt tell us why barbados is seeing a lot of uplift from foreign companies coming in and setting up on our shores for talks optimization purposes beautiful beaches stable relatively stable economy but it's actually it's actually bermuda right now that's starting to start to become the mover and shaker in the pan caribbean as a matter of fact to be quite honest this entire caribbean star in the bubble you start to see st lucia. many islands are starting to to rise up towards. having appreciation towards technology because of the value incentives

that it offers there are other territories competing to be a go to destination for the crypt i went astray obviously and point rick out there make a big play for this and in singapore there's a lot of activity and hotspots in europe so in the caribbean now you mentioned that there are tax advantages as there would be in ireland for example ireland attracts a lot of companies for the tax advantage and the beautiful beaches and i understand that even though the government in these areas are becoming quite correct yes so just to correct something we said i'm i'm definitely the founder one of the founders i'm no longer c.e.o. i would be focusing now on more working with various central banks around the world so that while you're wearing a camel because you're now the armed wing. community taking on the banks and hand to hand combat well actually this is a gift from a friend and i were all white so it wasn't good for the cameras so oh i think that

it's a cover story i don't really believe it i know that there are some shenanigans going on but tell us more content you don't mean to interrupt well you know the shenanigans a lot of follies been happening in the caribbean region. i mean this is the reason why we built it was to start allowing the regions have more of a unified currency basis them or financial sector right now we're talking about a nation that's plagued with. multiple currencies. high remittance costs high sediment times high on back to population the under banks and in the region is actually quite upsetting all right you recently presented a speech to the bermuda monetary authorities on central bank digital dollars tell us about that typically when you introduce central bank digital currency is the central bankers it goes quite over their head initially so a part of the process that is to educate central banks on the importance of this

technology and what it can do for them from a perception of the center ridge the cash optimization from cash creation the point of where central banks yes in the inflationary world print money. printing money has both of a cost on a resource base cost an economic cost of course it also misses out some of the key points that we want to citizens which is accountability and transparency and so you start to educate these guys that the chain and because it isn't a scary monster it's something that you can wrap your head around as a matter of sentiments can embrace it to build a parallel to that world so that you can actually start transitioning into the modern age of technology was a dialogue going in and that's an excellent bit of homes been successful with a few central banks in the region. most pacifically the eastern caribbean central and why that's important is because eastern said caribbean central bank is a currency union of it islands so that one central bank being

a pilot and tests own for a central bank there's no currency allows for islands to settle in between themselves another thing that you may not know right into island settlement that's made facilitated by block chain facilities they've not had before i guess with that kind of efficiency so you're an archipelago i believe is the phrase that would work in this case a group of islands yes and so. you need to have the block chain kind of clearing trades in these different territory and previously they would have gone through other jurisdictions to do these clearing trade right so that's a huge benefit so they see cost advantages most men they see the most advantages time advantages economic uplift g.d.p. growth and bank citizens can now become banks because penetration rates of smartphones are over one hundred percent in some of the islands so now stable coin . is what you're talking about right so the stable point is a subset of the whole trip to space yes and it's the idea that you know we thought

tether teller is a dollar surrogate if you will that's crypto and that that's kind of a stable coin yes so tell us about that a little bit explore that well this provides facilitation to avoid volatility for those that wish to have the advantages of sending and receiving digital dollar with what could be perceived as a disadvantage in the. in the crypto space of the volatility so what is stable can accomplish is bill to try it there's still feel it's right brain and you stable going to be stable going well bit itself as a company but they produce stable coins for governments they provide governments the tools to produce their own stable point in barbados as an example the barbadian digital dollar is nothing more than the barbadoes dollar bought one to one by the barbells dollar which is the. still as a bludgeon you know unlike ripple i would guess there's a big tree mine there is zero pre mine is not possible the premium happens essential. i mean that's it so the central bank is kind of like able to perform as

a central bank but in this trip to space i think of the entire archipelago and you guys a bit are facilitating that world spots it serves the the old world of central banks as a let somehow of a bridge into crypto and it serves the crypto world because it allows them to have the bridge into the traditional network because you can't take cash and convert cash physical dollars easy to pick one or other forms of my fanatical programmable currency but in the world of central bank there's zero dollars there's a bridge and a communicational path that can be built right fair enough now you facilitate a relationship with the nance the one year old crypto currency exchange already raking in billions why bermuda bermuda offered regulatory clarity for and i don't want to speak on behalf of binah because it's not my company although i have a lot of respect for the c.e.o. . when bermuda when the premier bermuda. good on his promises

to let me get this straight but if it's moving into permian it doesn't have a single headquarters as. the c.e.o. would have explained it by not exist in many parts of the world with different types of services in different parts of the world they're looking to do what i believe is compliance and bermuda which bermuda has a lot of compliance officers a very large set of compliance officers so it's quite ideal for them from the perspective does that bring in more i guess volume and business so that it's good for the island of bermuda brings in jobs it brings in economic growth it puts them on the right if you're mentioning it shows there become a little bit more know what i'm looking to get at all paid vacation. and i actually i should say that maybe. maybe. a bathing suit think that would fall under the you know the threshold of what would be reasonable in a situation and maybe hook me up with a speedo yeah i could organize

a flag on the speedo i thought i mentioned earlier i'm actually anyway let's move on charlie munger accuses you as a crypto currency trader are a demented. who harvest baby brains how do you respond we're changing the world makes us to mend. changing the world for the better and these guys have had a chance to do it and they did nothing and that's a chance for. decades to change the world and to make a difference charlie munger for context is the partner of warren buffett over there i know i'm aware of his statement in the recent and you know he and warren have been badmouthing crept out and their own bill gates was there as well which and bill gates was is a hero of mine and you know considering some of the things that he wrote back in ninety five along the lines of digital currency this will help you on buying nations and we're literally helping a nation. in the caribbean and around the world with other central banks towards this exact mission of being able to solve people's problems and bill gates is

a twice convicted predatory monopolist i'm not sure he's got a moral you know box on which to stand and lecture folks these guys they've made their way in this world and they've done well and. but they're definitely wrong they're more than wrong the mathematics in the system is pure and it's good and the end of the day the consensus is among all of us clearly there is some screwless in that group because they said that oh they would short it if they could and yet it's easy to short but going there's plenty ample right ways to short it going so they haven't even spent five minutes doing any research nouriel roubini makes comments about it obviously never looking at anything to do with the white paper paul krugman looks at this and he's famously said the internet would be as popular and useless and never go anywhere and they have no feeling whatsoever for these two. the logical reason i was on c's guy is to explain something as novel in this field as public private key pair and crips and watch them fumble and then if they can even get their heads around the concept and then who are you to to judge my face

currencies or protocols right so what is what is your five years from now what is going to be happening in your world what do you what are your goals with your five year plan a bit personal while both i mean because i think you two bit and you are kind of synonymous you know it together in a big way but we're just going to go in five years give us the picture well for but i see most central banks the monetary authorities adopting the bit process and the procedures towards issuance of their national currency base i see more bridges being built between the law sets and still currencies. there's still systems i see bit finalising on this multilateral clearing facilities between unions for example carry home and i see but being. the caribbean community the caribbean as one of the songs trade unions in the world called caricom and bit can help unify under a single trade union yes ok. here's just interesting angle because typically the

folks that are working for eleven look at the crypto space they see the lamb bios and they see all the cover stories on the business magazines and i don't think there's anything in it for them and you would argue that there is something very important in it for them yeah absolutely are you kidding me i mean you can look into this thing and says see bowls and ten x.'s and moon shots from those who want to scream for the working guy but for the working guy the main thing is right now that there's so many different industries that can be disrupted and involved with law change the transparency transparency accountability integrity but the crypto you get purchasing power is not inflated away by the central bank that's quite important you get a saving of real money especially in the field. what we're doing we're issuing allowing central banks issue the additional dollar but now you're providing a bridge between one of the in my opinion safest asa classes in the world the current fantastic i mean this is such

a multi-faceted story and when you're in the space as you are you get to wear the camel jacket and he also get to wear the big cohen socks i think that is a big point actually to get a shot of the big going stocks this is the kind of forward looking fashion statement. that crypto pioneers can wear in public. and get you know big applause for it but anyway we got to go get real thanks so much for being on the guys' report. already well that's going to do it for this edition of the kaiser for with me max kaiser and stacy herbert want to thank our guest gabriel abed he's the co-founder of bit of barbadoes based crypto fantic company making waves in the caribbean so next time bio.

united states can. tax on other countries. economic sanctions are often just the beginning another thing you like to do is play some military press around the country talking about. and there has to be an effort to demonize that country and the leader of that country. we have a responsibility for the. and we need to make rules for. us without us there.

so what we've got to do is identify the threats that we have it's crazy foundation let it be an arms race. spearing dramatic development only really i'm going to resist i don't see how that strategy will be successful very critical time to sit down. and tom. join me every thursday on the alec simon show and i'll be speaking to guest on the world of politics small business i'm show business i'll see you then. across europe municipalities are taking their water supply back from private companies. and this is the simple song alone even some company guess will elsewhere they can find private companies to take over the utilities anybody tell us the.

actual miss you guys you got. this is. for you. locals are ready to stand up for the basic human right of access to water it's about water but it's also much more it's about the hurt and the redistribution of. their date downwards.

headlines for this hour an international leaders reiterate that commitment to the iran nuclear deal and to fostering business ties with the country. industry giants that's simply not enough. the numerous probes into alleged russian interference in the us election senate has concluded russia did help get elected despite an early house probe finding that there was no collusion. east africa's tanzania is accused . people.