because for example you know the something like twenty six million cars were sold in china twenty five million of them were made in the country because of twenty five percent import taxes on cars made overseas so you know if you want to protect your own industrial industry at home you've got to have these but many manufacturing communities feel like they're in a long running trade war one in which for decades america never fired a shot on their behalf and he's talking about a new republic article titled the inevitable death of global trade as we know it because as dan collins has said for many areas on the keiser report that we've had a trade war and the trade in the united states is lost wages in us go down because of the financialization of the economy which rewards bankers and financier's at the expense of workers and they again i'll say they use global trade organizations and trade institutions to game for themselves in the case of china at the expense of the u.s. so now the u.s.

is simply saying it wait a minute let's let's increase wages and let's bring jobs back to the u.s. and china squealing of course but that's the way it goes squealing because it's that old adage if you owe the bank a thousand dollars you're in trouble if you go the bank ten million dollars they're in trouble and this has proven to be the case is that the u.s. imports so much more than it exports especially with china so china was trying to basically impose equal tariffs on the two hundred billion that trump imposed recently the most recent tariffs and they couldn't this biggest export from the u.s. to china is garbage literally garbage you know we're exporting tanker you know china would send over tankers and ships full of stuff and then the u.s. would put all their garbage on of these ships and some of them back to china and china would recycle the garbage the cardboard design there's a woman there who's become the billionaire just recycling american cardboard. but

now they realize that there's a lot of stuff that we export to penalise so they have to come to the table and do a deal so back to this article about the voters and why the voters are always going to vote to dismantle the system it's something we've talked about with the u.s. election and also with breaks that if they can kick you in the teeth they will because a common fear expressed by critics of trade policy is that over time his recklessness risks the end of the global trading system a framework of rules put in place after world war two that they claim have brought about stability and security retaliatory tariffs piled upon tariffs will eventually make those rules irrelevant and at that point the entire system would collapse but that system was inherently unstable as it boosted corporate profits at the expense of millions of workers trump or no trump a backlash was inevitable and if the global trading system is to survive its gross imbalances must be corrected right those folks who support those protest member in geneva against the g seven against the g eight against all these global confound

against builder berg all those protesters should be supporting trump because trump is essentially doing what they want now i don't i don't think that because i don't think it's an individual and i know this is something you and i have always discussed you think leaders are you know somebody that lead people but i think the it's trump is just a symptom of this trade system that has been in place for forty fifty years well seventy years since the end of world war two the same with brakes it doesn't matter if you you max keiser me stacey herbert thinks that's insane because we live in cities and we travel to new york city london and paris and we see all the great benefits of it it doesn't matter because we live in democracies and these people are going to vote the ones i got left out and as this article points out like they kept on being told eventually don't worry just take these losses of jobs will retrain you things will get better eventually you know all the jobs are sent overseas will be replayed. by higher value jobs but everybody now works at

mcdonald's or some shopping center that's now being kicked out of business by amazon as i said over the decades since world war two they trade policies and organizations put in place had a creeping financialization that disenfranchise the worker who then voted for trump who is then doing what he was elected to do as the leader of this group of people who are disenfranchised including those who are protesting the g. seven occupy wall street has a champion in trump so it just breaks it if their dismantling the system that they've got destroyed by i know you don't like it but i think like if these people want a kick in the teeth of the global order as it was because they lost by whatever the global order was whatever the system was whatever the paradigm was they were losing and it was bound if you gave them a vote if you gave these people a right to vote and change that system they were going to. actually you only gave

them a vote to kind of tinker around the edges and if you but you gave them a vote like take it all down by voting for somebody like trump or voting for breaks that they would take it all see how it plays out these two very distinct countries do united states and britain in the us the deposition are the disposition of the ruling elite will have one effect under trump and the rise in wages and in the u.k. getting rid of david cameron and breaks it will see how that plays up but they are going to have two very distinct outcomes just as the democrats in america refuse to look at the role that hillary and their own policies play in the loss of the us election both parties i think will. if they fail to confront this next paragraph i'm going to read they will always be kicked in the teeth by the voter the united states lost five million manufacturing jobs from two thousand to two thousand and fourteen while the u.s. trade deficit peaked at nearly six percent of gross domestic product economists like david. auteur calls this the china shock because it incurred on

a similar timeline as the country's two thousand and one entry into the world trade organization the bounty of cheap chinese goods had a real human cost here at home you can choose to try to ignore the real human cost how did the democrats the and the republicans the two parties that run this country they're united in this policy they have a huge almost violent you know social divisions between the two parties but they're united on these trade policies on nato and. on all the trade deals. there's no difference not just not a sliver of difference between what the democrats and republicans want so the real you know there are real consequences and they can choose to ignore it or not and they'll keep on getting a trump but there's nothing wrong with that sort of saying i mean that the people put a populist in the office like they put thomas jefferson in office they put george washington in office they put abraham lincoln in office they put john f.

kennedy in office they put donald trump in office that's the lesser voters do he's doing what the voters want and the country is better for the i mean that's the way the american system works and the unification of like the likes of bill kristol and hillary clinton united against the voter right now they're focusing it all on the individual that is trump but really what they're united against is the voter who is upset about these trade policies and the fact that they their livelihoods have been destroyed so you know the pundits who are wrong their livelihoods are destroyed and all the mainstream media the fake news in the america hopefully will get blown out of the water and bring in some real news bring in some competition there is another holy sort of entity here in new york city and that is the stock market all the pundits and all the political elite will agree that the stock markets are america that is the heart and soul of america and this is what we imposed around the world and that speaks a different truth to what they are speaking about this trade war stock markets see

the u.s. winning the trade war defying corporate lobby and media propaganda since the chump impose these tariffs and keep some imposing them and all the pundits on television are united against him doing this. they're saying he's saying that this is corporate america's propaganda machine they're getting a lot of air time on all the networks to say this is gravy you know they keep on having you know manufacturers on television c.e.o.'s and saying this is a horrible thing and trump is destroying jobs and blah blah blah but chief economist at moody's capital markets research don ski well he looked at the market . consequences since trump imposed these tariffs and what he found is that there actually hasn't been that much impact in u.s. markets in fact they're a little bit up but if you look at china's shanghai composite down six point eight percent since june fourteenth when you first impose tariffs fourteen point two percent year to date korea's kospi index is down five point seven percent since

june fourteenth germany's dax down four point seven and japan's nikkei and you know those are the huge surplus nations the markets are saying they're going to lose not the u.s. so trump is a frickin genius and everything he said would happen is appen and the professional pundit class was completely wrong and thus thank god hillary was kept out of office again moody's says in their assessment of what this means the fact that these stock markets in the surplus nations overseas have crashed and the u.s. has not they they sum it up as the reasons that moody's cited as being behind the markets move up in the u.s. down a big trade surplus countries are the obvious ones that the markets have been seeing from day one but that the u.s. media are totally and willfully blind to the u.s. as less dependent on exports than these countries in terms of overall business activity the u.s. has a huge trade deficit with these countries and the us imports far more from them than exports to them and any retaliation by those countries would by definition hit

those countries far harder than the u.s. the u.s. economy is currently strong and now well outperforms other major economies so you know this is why one must question more because as well for her points out when he's watching all the news there are unanimous they all agree that trump is his trade policies and his tariffs are a disaster ok last year for her let's write the comparison to the versus the u.s. policies versus global trade so donald trump goes to the global trading environment with the ability with leverage america's got a leverage in that economy and it can reshape the global economy. they went against the e.u. with no leverage they have a zero leverage against the e.u. therefore they've lost tragically against you and their dollars are being marginalized and isolated as a result of it they completely mis stated our misunderstood there at the equation between the u.k. and the e.u. when it comes to business and trade yes but i do not believe the elite wanted the

brics that it's the voter that one of the brics and that is what is united in these two kinds of arrows irish voter is not as financially literate as the average american voter because americans without a doubt oriel country and britain is as a vassal state of the monarchy it's a very different economy very different population very different country well we got to take a break and when we come back a lot more coming you know it. became this national camera. roughly once they showed some leave for the. videos with the broken string it. down more on string i don't roughly don't t.v. it's hard to imagine decades after the war

a nazi don't it was still active. in the nineteen seventies croteau had as the chair of its board a man convicted of mass murder and slavery and ash was a german company developed for the demise of drugs it was promoted as completely safe even during pregnancy it turned out to have terrible side effects what has happened to my baby anything. she said he's just. excited to mind victims of to this day received no compensation and never apologized for the suffering. not only want the money i want the event. when gold make this manufacture consent instead of public wealth. when the ruling classes protect themselves. when the financial merry go round lifts only the one percent so. it's time

to ignore middle of the room signals. from the real need for. politicians to do something to. put themselves on the line to get accepted or rejected. so when you want to be president. or somehow want to. have to try to be for us this is what the forty three in the morning can't be good . i'm interested always in the waters of my colleagues. question. for manners sitting in a car when the fifth gets shot in the head. all

four have different versions of what happened one of them is on the death row there's no way he could have done it there's no possible way because the list did not share around a corner. welcome back to the kaiser report i'm max kaiser time out to go to galatea benard sea of bank core value welcome thank you for having me nice to see you all right now i just had a vent at bretton woods and it sounds very exciting but first we want to get into this late breaking news of bank or but of course there was a hack so tell us a little bit about the hack what was stolen and what's going on yes it's been an eventful week for bank or and for the industry at large as most weeks seem to be basically a criminal a thief

a hacker was able to access one of the wallets bank or and to withdraw from there a significant amount of cryptocurrency the initial amount was somewhere around twenty three and a half million dollars worth of tokens and then shortly there after we were able to retrieve about ten million dollars worth of the b. and t. the bank or network token bringing the total to about thirteen million dollars worth of crypto mostly these were ether tokens a few other tokens as well as the b. and t. which we were able to retrieve now i saw you put out a message to the community that you're trying to get together put together some kind of community effort to attack this type of behavior i saw that on my twitter stream can you speak about that a little bit yeah absolutely basically the idea is that one project's loss is everyone's loss in this space of course we battle p.r. in terms of people's confidence in crypto and confidence in the space and of course

we battle the security together as the. thieves and criminals advance with their technology as the industry advances with our technology and so the idea really is that we're stronger together that there what we learn from this. and says that there is so much chaos that happens after an incident like this where if all of the parties were better coordinated if there was if you will a hotline if we could share information more transparently if we could be quicker about getting flagged accounts or flag wallets into the to the exchanges that they could track those as well we would all be much better off i think that everyone together doesn't want to see criminals with this whole industry though it goes against the idea of cooperating in a lot of ways going all the back to the big client foundation what was very difficult to sustain because of the infighting that went on and this idea of

individual sovereignty is rife throughout the entire industry and it's really. anarchy the idea of anarchy is huge in this industry and it's kind of everyone's on their own so totally to goes against this idea of trying to put together anything of a cooperative nature because there's a huge fear of any. kind of you know organized centralized group at all so it's how do you fight that under undertow that tenant within the sinister a that any organization a organization attempt is bad so this is one of those beautifully complex issues and i think that anyone who thinks. being alone is better will quickly discover that in order to get where we're going in this industry we're going to have to stick together this doesn't mean this is sara lee centralize control and this is one of the interesting parts you don't have to be either centralized or decentralized you don't have to be either black or white you don't have to be

either on your own or together we can develop third ways we can develop better models for how we coordinate how we collaborate and yet maintain both individual and organizational sovereignty it's not actually that hard to do we just need to build a framework and follow that ok so you mentioned centralizers d.c. . a bank or hackers triggered a debate about decentralization charlie lay over light going quote an exchange is not decentralize if it can lose customer funds or if it can freeze customer funds bank or does both so your response we just don't believe that this is true an exchange and a network is decentralized on a number of various parameters so for example do users own their own wallets and do users maintain custody over their funds at all time in the bank or liquidity network absolutely yes even in a situation like a breach that we experienced last week users were able to access their funds at any

time even during the breach withdraw their funds move their funds move to different wallets and so decentralization is something that you look at on a spectrum and on many many different parameters having some kind of centralized design mechanism does not make a network centralized especially when these mechanisms are transparent are openly discussed are very clearly explained how and if they will be used i think that we can do a better job as an industry looking at what are the best practices for these kinds of centralized emergency mechanisms but just as you know the u.s. or other democracies can call on unique parameters in times of extenuating circumstances in order to affect decision making in a way that might avoid collateral damage or further damage to the society so can networks and and token networks have mechanisms which allow the designers that are

the most interested in the well being of the network to make quick decisions in a moment of need of course you need great governance around that you need great transparency and that's in fact why we're out and talking to the community as much as we can about both what happened and what we intend to do about. it in the future so any time an exchange gets hacked it brings it back memories of mt gox which is probably in the industry's worst nightmare period and in response to that a lot of decentralized exchanges were talked about and now some are coming online so in the case of bank or when you talk about a liquidity network this is a kind of a hybrid is that because it's not. the liquidity network means that prices are being kind of maintained if you will from an internal mechanism correct prices are being determined by an algorithm which is open source and transparent and

completely predictable and pre-determined still demand dictates whether you're moving up along a price curve or down with this is what was the vector from which the attack came no this has actually nothing to do with it so let's talk about the security of smart contracts some of the biggest test encrypt of com be a flaws in the smart contract tell us how and why and how to deliver more security at the smart contract stage yeah so these are very new technologies and their promise is as great as their as their potential vulnerability this is like saying you know in the ninety's that e-mail is super vulnerable to nigerian scams yes it was and that doesn't mean that we didn't continue to get great usage out of e-mail and that doesn't mean that there weren't a few people that fell for those scams i think the important thing to understand here is that the technology is new and to continue asking ourselves why do we want

to advance this technology to begin with the mission of bank or is clear to enable freedom of currency to enable anyone to create a currency and to enable currencies to be freely and openly traded between each other without needing to pay middlemen without needing to pay exorbitant listing fees to exchanges even. needing to match buyers and sellers so that liquidity is not related to volume this actually brings me to too small is beautiful and the gift that we brought you guys today. even lightly traded currencies even small local and community currencies even small project currencies currencies that may begin small and may become very large should be able to be freely and fairly traded amongst those who wish to use them and we believe that the bank or protocol in this open source network is a very significant innovation in allowing us to do this in allowing anyone to create a currency and allowing people to achieve true freedom through the exchange of

value between us right so she might of course can separate keynes right sure and so you're gathering at bretton woods. of course as work came from posed a bank or originally rather than the us dollar for a world the global trade currency. now you may be the only came in crypto. by a little bit yeah so again we are not. we are being korean and this specific proposal made by keane's at the bretton woods conference in one thousand nine hundred four was truly brilliant and perhaps there wasn't the kind of political will or courage at the time to adopt such a proposal but times have changed and we think the time is now the proposal specifically made by keane's called bank or and he made it with schumacher the author of life of small is beautiful. basically had two main components one

was we cannot allow the global reserve currency to be tied to a specific nation such as the us such as china such as anyone why because the conflict of interest between international. domestic monetary policy is too great for any nation to responsibly manage and the benefit of universal liquidity or global liquidity to that nation whose currency is also the global reserve creates a very very symmetric landscape and we see this we've seen this play out over the last seventy four years the proposal that cannes made was to have a super national currency which wouldn't be owned by any nation of course he didn't have crypto at the time he didn't even have computing but we have been inspired by this proposal and asked ourselves what is the modern version of that that we can apply modern technologies to and what are the benefits so we talked about global

reserve currency status to a nation and this would be the same thing whether it was the us china or whether it was a corporation and the other major component of the system that was devised at bretton woods which keane's with his bank or proposal proposed the path not taken is this relationship between debtor and creditor nations so when you set up a system that basically says the country in debt is the one responsible to close the trade deficit or to pay back the debt you're setting everyone up in a sense for failure it may not feel that way if you're the creditor nation and everyone owes you but we see this playing out now over decades when everyone is in debt to someone the system cannot thrive so keynes was seeking to eradicate. this huge trade imbalances essentially and so today with donald trump takes a wrecking ball to world trade what you're saying is this is what eventually

happens is that with that this type of a. global unit of account you end up with these eventual blowups that we're seeing now in the world trade and we only have like twenty seconds sure it's just like student debt if you tell all the students but from day one they need to start paying back their debt before they have jobs before they have credibility. shackling them to the debt system forever if you as the university or as the creditor nation say you know what for the next five years i'm going to pay your debt once you're strong once you're solid then you can start paying it back you might have the version of a much more balanced and healthy system where everyone is actually working together for the sustainability of the whole network all right we gotta leave it there thanks man the guys saying thanks for having me right that's going to do it for this edition of the kaiser report with me max guys or stacy i would like to thank our guests dahlia been nazi of bank or if you want to reach us on twitter it's guy's report and select.

the new global economic war is unfolding in the realm of education the right to education being supplanted by the right to. education. higher education is becoming just another product that can be bought and sold but it's not just about education anymore it's also about running a business where you could. kind of really couldn't you. want is the place of students in this business model before college i was born now and i'm extremely more higher education for the new global economic war. for. independence means that you're not going to take instruction from any of the

fighting and we know that in this situation of syria the states have had to end the mandate that was given to us is broad it's not targeting one but to put aside to this complaint it is broad it is focusing on identifying. investigated first building five on sunday the most seriously please be. sure to. look at it is. my last post as. i know that. you have to. do it a little he. doesn't go to berlin

with his lawyer to do it. all for school it's only about the looking on the other end of the couldn't walk forward to one of the ninety one columns on the wall she. was. cut. thank. you lou. i. think. i was. going to get. to see you next.

thank. you after islamic state is driven out of mosul the iraqi city remains in ruins we hear from a local resident about. life after liberation. still down on their food bodies in that house behind us still inside the stench coming from them is very strong and the getting sick because of this. is shaky cease fire is restored between hamas militants in israel after a violent clashes on the gaza border raising fears of a full blown conflict in the region. and students at manchester university in england to paint over a mural of a famous poem by a british writer kipling saying he was a racist who dehumanised people of color people in la.