the headline here on our team a year after islamic state is driven out of mosul iraq the city still lies in ruins unable to recover from the devastation of the u.s. back to liberation operation. still down there and there are food move bodies in that house behind us is still inside the stench coming from them is very strong in the getting sick because of this as shaky cease fire is restored between hamas and israel after violence on the gaza border raises fears of a full blown conflict. and students at manchester university in england made over a mural of the famous poem by a british writer read your kipling think he was a racist who dehumanizing people of color. but you can find out more about those

stories over on our web site will be back with your world news update in about an hour's time with my colleague nic here and right now though it is time for the kaiser report stay with us. hello i'm most does or this is the kaiser report of the show that there is to go deeper. into max we're back in new york city and we're going to talk about the trade war because of course right across from us used to be the world trade center it is the place where all trade goes through and it's the center of the u.s. global financial empire but china says bully united states started a trade war the united states has started a trade war and china will defend itself the chinese vice minister of commerce weighing shewan said last week urging the united states to take the gun of terrorists away to smooth the way for talks quote the measures taken are against

the interests of china they're against the interests of the united states businesses consumers workers and farmers they are hampering global economic growth they are just a trade bully and. you know you've got these global trade organizations that are gamed by china and the u.s. gets a short on the stick so it's up as tearing up the playing board and saying we'll start over from scratch and that's the right thing to do we're actually have some analysis on that and by the way i just want you to say that if you want to find analysis that confirms what the chinese vice minister of commerce said you can tune into c.n.n. b.b.c. or m s n b c or fox or c.n.n. and there because they're all unanimous that this is a disaster but i'm going to look at some alternative headlines about the other side of this one from the voter and one from wolf richter who says well maybe this is leveling the playing field and you've got to protect your own economy at home

because for example you know there's 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 in. port 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 the 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 the ships and send 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 ok but

now they realize that there's not enough stuff that we export to penalize so they have to come to the table and do a deal so back to this article about the voters and why the vote. there's always going to vote to dismantle the system it's something we've talked about with the us election and also with brakes 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 breaks it doesn't matter if you you max keiser me stacey herbert thinks it'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 going to vote the ones that 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 replaced 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 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 that 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 the 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 bracks 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 bound. if cheap chinese goods had a real human cost here at home you could 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. nafta. 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 an 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 lots of voters do he's doing what the voters want 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 trying to impose these tariffs and keep some imposing them and all the pundits on television are united against them doing this. they're saying he's saying that 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 john 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 happening 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 and 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 market's moves up in the us down in big trade surplus countries are the obvious ones that the markets have been seeing from day one but that the us 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 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 time as being marginalized and isolated as a result of it they completely misstated 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 america doesn't answer the door ial 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 your way. independence means that you're not going to take instruction from any of this and we know that in the situation of syria the face of it and the mandate that was given to us is bro it's not targeting one to put aside to this conflict it is broad it is

focusing on identifying investigated person. buys on sunday the most serious. forman or sitting in a car when the fifth gets shot in the head. four 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 owners did not shoot around a corner. right we're also starting to drive yes to the studio house a signal. he's not going to talk about no place just

need right after the mars explorers one knew it would have their unique. record. to say what he. told the alice room welcome to sophie and joe i'm so sorry shevardnadze said today we've got lots to talk about in our program and our guest is. good luck little. welcome back to the kaiser report i'm max kaiser timeout to go to galilee a bit nazi 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 crypto currency 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 floodwall it's into the to the exchanges so 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 when this whole industry though it goes against the idea of cooperating in a lot of ways going all the back to the big point 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. 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 the 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 centralized control and this is one of the interesting parts you don't have to be either centralized or decentralize 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 the centralization charlie lee over light going to quote an exchange is not decentralize if it can lose customers laws 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 steps encrypt of comm via 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 maybe can smile and they 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 keynesian in crypto. 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 if it were that this type of a. global unit of account you end up with these. blow ups 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 that from day one they need to start paying back their debt before they have jobs before they have credibility. you're 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 manic as a work you thanks for having me that's going to do it for this edition of the kaiser report with me max geyser stacy i would like to thank our guest dahlia nazi of bank or if you want to reach us on twitter it's guys report and select. what we've got to do is identify the threats that we have it's crazy foundation let it be an arms race often skeery dramatic developments only really i'm going to resist i don't see how that strategy will be successful very critical time to sit down and talk.

to. put themselves on the line. to get accepted or rejected. so when you want to be president and you. want. to going to be pros this is what before three of the more people. interested in the waters of. course to. join me every thursday on the alex i'm i'm sure and i'll be speaking to guests of the world of politics sports business i'm show business. you know world of big partisan movies a lot and conspiracy it's time to wake up to dig deeper to hit the stories that mainstream media refuses to tell more than ever.