the colonization of the continent by a new power quote this is not a uniquely gun am or african phenomenon it has not been lost on us that the developed rich and well established countries have been paying regular visits to china and seeking to open new economic ties and improve upon existing ones he noted so a lot of people are telling african nations you shouldn't deal with china you shouldn't let them build your infrastructure you shouldn't let them invest in you because it's just colonisation and he was pointing out the hypocrisy that well why do all these why is google building dragon-fly for them why are all these trade representatives traveling to china and trying to open up deals and china why can't we do deals with china right there recognise the difference between trade and colonization so trade is like for like. africa's getting something in return in their trade relations with china colonialization is like we take all your natural

resources and you get nothing that's colonialization but africa does not have the perception that that's what's going on because it's easy to understand that what they're getting from china has enduring value it's hard money probably could put it in those terms and so it has enduring trade value going forward and this is what is lost on a countries like the united states which is mire in the perception of money or you get something for nothing but some of the last shows we've done where they have this sort of thing of they don't actually want to help people they want to feel good about themselves and by giving them some money giving them some aid and not actually developing it here it's gone and president says that we in ghana must build roads bridges railways ports schools and hospitals and we must create jobs to keep our young people engaged he noted also that you know we for the past few decades we've lived under this western sort of aid system and nothing has happened

we haven't grown we're still in this situation and we need someone we need infrastructure we need. infrastructure problem which to develop an economy but without that we're not going to get through their heads right once again i mean they are going to engage in trade which is peaceful the u.s. is building military bases in africa that is a war based economy china wants to be a trade based economy going forward into the twenty first century which one will prosper well i think we're going to find out here is the washington post take on the story and that surprisingly they do see that china in africa has been fantastic for competition because remember part of the situation that you and i have discussed about what's gone wrong with the global economy is when the soviet union collapsed they collapsed because their system could not compete with capital. but it did also make us lazy because we didn't have anybody to challenge our ideology

and our our policies with a different perhaps better policy forcing us to up our game this is why competition is good china is offering no strings attached aid to africa here's what that means you know china has just recently given a sixty billion dollars worth of loans and aid to africa no strings attached it seems like a lot of money they point out but that's just below the point seven percent target by the o.e.c.d. countries to invest in aid and development and developing nations and this is only a point for nine percent of china's g.d.p. but china's rise as a major donor and investor in africa the washington post points out has led to renewed competition in the continent the european union for example launched an africa e.u. strategic partnership in two thousand and seven and pledged to mobilize more than fifty four billion dollars in sustainable investment for africa by two thousand and twenty and july twenty eighth the us congress passed the better utilization of

investments leading to development act to compete with china's growing presence in africa so driving competition has been good for africa has been good for basically the e.u. and us corporations have to compete with these chinese investments right competition in trade is peaceful and it promotes peace trade is the peaceful way that humans have evolved for hundreds of thousands of millions of years and so in africa really the cradle of humanity the cradle of homo sapiens as we understand our role on planet earth is now ready to take on all comers as they begin to enter the twenty first century with such advantages that they like leap frogging all the fear of money banking system right into crypto currency so they're ready to be really a huge growth story twenty first century yet. again so they point out again that the competition between don't nurse has led to great outcomes in africa and then the washington post asks what comes first good governance or development so this is

the no strings attached thing so. china does not try to impose any sort of restrictions on their aid in relation to things like government corruption or by government institutions or by cultural differences so here they look at some studies so this is the washington post again remember they say one question to ask is whether good governance leads to economic development this is one of the underlying assumptions of making a conditional some scholars suggest the causal arrow may actually be reversed that is some additional level of economic development is needed to enable institutions of good governance to generate further growth and development in fact china's own development trajectory demonstrates that the relationship between governance and growth cannot be simplified as a chicken or egg situation that's patently obvious because trade comes in for

governance because trade only works if both parties feel like they're getting a fair deal if one party does not feel are getting a fair deal then trade collapses and none of the benefits of trade occurs just like for like it's called hard money it's called the evolution of the trade as part of our d.n.a. as humans and the governance is an abstract it's a construct it does not predate trade then you end up with a soviet union type of situation they're trying to create the perfect governance and then trade comes later that does not work so they follow up with this with more evidence and more studies showing that economic development first that governments recent evidence shows that china can help countries such as kenya and ethiopia realize such initial growth. assman and dust realisation a study based on extensive field work in africa similarly concludes that quote china's growing involvement is strongly positive for africa's economies governments

and workers on a broader scale scholars have found that chinese funded infrastructure projects result in increased economic activities and reduced inequality so remember our model helps a lot of people in seattle and san francisco in los angeles and washington d.c. in particular feel very good about themselves of teaching these people how to behave and they claim that they're at their end game is to bring in a quote to reduce inequality but here they're showing that the chinese just like trusting these people to want to engage in trade want to want to not have violence want to not be told that you guys are deplorable is and until you stop acting deplorable we're not going to give you any more money so there and fact these studies done by western institutions and universities have found that in fact the

chinese model seems to be doing better than our i feel good about myself because i work for the world bank or i work for the i.m.f. i work for some sort of and geo look in america it's a similar situation like air b.n. b. reinvented lodging there are regulations didn't come so much later crypto happened before the regulations will never occur because it's totally self regulated you know happened and it was completely unregulated and changing the regulatory framework financial innovation first regulation second africa saying we want to be a start up confident we want to do trade first do the regulations later to an extent that we need regulations but you don't want government first it's called socialism and it never works and never will work you want trade first that's in our d.n.a. goes back a million years allows me that case people want like for like they want to have a communication they want to. interaction we trade biological. for mission to propel the species we trade language with photosynthesis or training carbon for oxygen you know trade is in our d n a not governance governance is not part

of the reality and never will be so here again we're covering africa africa as welcoming this investment from china we covered recently that latin american leaders afraid of course because of the bloody history there of invasions and coups and stuff like that they haven't spoken on the record but like this guy did it in the u.n. but they've said like they're welcoming chinese money because the u.s. has abandoned them and they're not investing in things like infrastructure now here is another competitive story a country ignored long by western investors but now is. on the on the radar of western investors u.s. confirms effort to qual way in copland new guinea the u.s. is working to stop chinese telecom giant huawei from building a major internet infrastructure project in papa new guinea the latest sign of international efforts to curb china's broadening influence in the pacific the u.s.

was working alongside japan and australia to develop a counter offer to while ways plans u.s. charge d'affaires james caruso told astride the state broadcaster on friday this is not to say don't do business with china it is up to us to be competitive he says so they're trying to come up with a better project for the indo-pacific region because china is moving in there fast with all of those treasuries and u.s. assets and financial assets that they need to spend and they're building a network classic end of empire the u.s. is trying to cling to this idea of the u.s. dollar reserve currency empire they've built over a post world war two era where everyone gets a debt to the america and pays homage to america china russia africa name it they're all saying no we won't work until as a minimum trump wants markets alyssum they want to trade directly bilaterally we don't want to be part of the globalization. anymore but also i think it's establishing papa new guinea who's never talked about that's never even discussed nobody cares about it it's only simple hubris to sort of big deals so it's us and

europe or you know the master and it's nobody wants it so all these other countries smaller countries smaller economies still developing have apparently been left out they feel abandoned they want to make their economies great again they want to participate in globalization because they can all see on twitter and facebook and other social media that the world is moving forward and they want to be part of it but unless they can get capital in this world of capitalism they need you know they need to go wherever the deal is and whoever will build the infrastructure for them to be connected on to the global highway that is global trade to getting your doing the right truck. up in new guinea were in no way the flight leaving tomorrow. we have to take a break when we come back more coming your way don't go away. growing their merchant base so it's for online payments as you know and we're taking

a bunch of new cryptocurrency is not to speak with like when to do it's going like the old the old days we know about a big point cash assumed at there and we've had a dash we've got a couple of others up our sleeves so we're just kind of thinking i'm slowly and strategically which i'm a dash for a second because you know one of the greatest things about crypto is that it can help people that are unbanked are going through incredible financial duress in venezuela now argentina dashing the bass community have really made inroads and they're really introducing krypto and it's really making a huge difference politically do you think that's a wave now in twenty eighteen we're going to see build going forward yeah i do i do i think that we're going to see more kryptos sort of strategic move into different spaces and i've always said it's going to be. world and these are all networks i mean then and they are going to expand at the pace they're going to expand but a lot of people all between pyrrhus think it's a winner take all but i like dash i like the project i like the team and it's one of the reasons we had to go point right to have that governance model where part of

the money. that we've seen like cheap air is one of our merchants and they get a lot of you know purchases on their cheap air right right and so gold coin is processing especially for crap down merchants signed up that's right and they can take ripped out and where do you see the trends in the u.s. . when it when we get to see like. or big big are amazon or somebody really get into this in a big way you know you would know you're on the front line steve tell us what's happening you know a little shock they haven't already it's really pretty surprising to me that we haven't seen and going or one of these guys but i think some of that is there's a lot of uncertainty from the regulatory areas and then you get the state by state regulatory overtop of the federal but i think in the next two years you're going to see one of these big. players step in because it's just going to get frothy again yeah the froth you know we're in a retrenchment you and i been through three at least three seventy eighty percent sashes and that's been kind of the nature of bitcoin sense the last big there is

a twenty fourteen mt gox crash you know you referenced that that was a huge one and now we've got this twenty seventeen twenty eighteen back you know that twenty seventeen period could be. set in terms of the ice you know the initial coin offering right and what is it what's your view on the initial point offering and what's the future of that one what are your thoughts there yeah i think a lot of people just were victimized by the pump and dump a lot of the coins that that went out a lot of the big buyers would say hey we're going to hold these for a long time and when they turn out to do is when they're they've got issues they're tokens they turn around wait for the right time and then we dump them back in the market and then move on to the next one so i think there was some you know regulatory oversight did start to come in and there's a lot of sort of guidance given and i think that was a good thing for the market so now what seems to be more popular is what they're calling these s t o's which is the security token offerings right estie security token offering so how is that different yes of the difference is where the utility

token is kind of like you know you want to go to the carnival you want to get all the rights you need those tokens in order to get it right i don't get it why is that what are your thoughts on that game so that's an interesting one i don't begrudge anybody who's been very successful in their ability to to build up as much wealth as they as they can but i do think there is definitely give back there's a point at which you've got to look at your employees you have to look at what they're offering to the company and collectively you're going to build more loyalty among those employees by cutting them in on it if you will so what's happening at block block a lot of exciting things that block as you probably know we launched metronome about a month and a half ago and that was our new foundational cryptocurrency and that's the first of its type dow project called the pseudo thomas organization and it's a group. smart contracts that anybody can trade against the much known pair of the meter pair twenty four by seven it's all out there available trading pair without going through an exchange ok so the first down that was launched on the theory i'm

black shame was spectacularly problematic our crash walk me through like what was what was learned there and what's happened and you guys obviously evolved and right what was so what did you learn from that and why is this different yeah the main lesson is really have to audit your code and send it out to multiple audit of the code so we had the top auditors in the world look at the metronome code and come back we made a couple of fine tunes but thankfully our team did a bang up job and it went into production it's behaving exactly as we expected it daily supply auction every single day is available so comes out at twice the price of the previous day and then it descends down to a descending price auction fascinating project and so anyone interested metronome dot iow the owner's manual great read jeff cars it did a fantastic architect and that's all right so you know you talk about metronomic talked about go coin and they take multiple coins you know there is a bit of a political split in the space in the big point space yeah the big clean maximalist

you know who are very die hard and they have a very i would say dim view of anything that's not bad coin and the other camp is basically more than the law is a fair let's let the market decide well let's just bring out some different coins in the middle would be a kind of an argument that the market is so so fresh so young and that the learning curve for the average person is pretty steep and so it's may be too much of an obstacle at this point to confuse the market with so many different offerings you know instead of just focusing on one and we saw this played out with big point cash where this was an attempt to really dominate big coin right and almost takeover of bitcoin. unfortunately the protocol is designed in such a genius way and the incentives are balanced so brilliantly that repelled this hostile like this all of their statement is an absolute fair statement but what i like about bitcoin cash is by forking that network you know have people know

aligned with the coin that they want to be aligned with they have the governance that they want and bitcoin is the governments that they want and so big point cashed out to say look we're going to increase the block size and it's paid off and then the transaction times are faster their fees are lower so they can do some things that bitcoin isn't very good at like transactions ok well. it's the moving into that second layer now with lightning networks and other development where do you think that it's just a matter of big points lag time kind of spawned this all point market with minera different features and people said we can't wait anymore we're impatient right and . one thing that's great about bitcoin of course is the creator is anonymous we don't know who it is these other coins they have some personalities yes and the like metallic over there in a stereo and you've got roger very big point cash cetera is that working against these coins to some degree or what's your thoughts on that that's interesting i

think to some degree there is sort of the the cult of personality that grows around you know characters like that and over teluk and roger both reasonably well and both really great guys so nothing personal against them but you know there are there are they do get a following and that ends up taking a personality that also is meet those that goes into into the coin and what the governance looks like great stable it's good to have you back on so i guess i should mention because i go quiet is the place for merchants anywhere in the world right that's right if you want to take a trip down and join the revolution go to go quite the extreme guys report thank you i was going to do it for this edition of the kaiser report with a mass kaiser and stacy herbert want to thank our guests beauregard. go coin and block b l o q go to reach us on twitter it's kaiser report it's about time bio.

the ways of the united states is dangerous for money.