and that what they're getting from china has enduring value it's hard money probably 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 myer 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 the gun and president says that we ain't gonna 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 their head right once again i mean they are going to engage in trade which is peaceful of the us 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 while i think we're going to find out here is the washington post take on the story and a surprisingly and 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 capitalism 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 and development and developing nations and this is only in point four 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 seen 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 as being good for basically the e.u. and us corporations have to compete with these chinese investments right competition in trade is peaceful and 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 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 a 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 predict a 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 through investment and dust realisation. 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 they just 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 the

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 i work for the i.m.f. i work for some sort of and geo look in america it's a similar situation to air b.n. b. reinvented lodging there are regulations didn't come till much later krypto happened before the regulations will never occur because it's totally self regulated you know happened and it was completely unregulated industry changing the regulatory framework financial innovation first regulation second africa saying we want to be a start up continent 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 it never will work you want trade first that's in our d.n.a. goes back a million years will always be that case people want like for like they want to have a communication they want to interaction we trade biological information to propel the species we try. language photosynthesis returning carbon for oxygen you know

the 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 by western investors but now is. on the on the radar of western investors u.s. confirms effort to qual way in papa 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 a strongly 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 of 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 markopolos and they want to trade directly bilaterally we don't want to be part of the globalization anymore but also i think it's establishing

a new guinea who's ever 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. welcome back to the kaiser report i'm max kaiser it's i'm gonna go to steve beauregard. welcome steve a mascot to see again i would say you're one of the first generation. original gangster big going crypto and we've done so for a long time and when we were in los angeles you know your guy chris you were the founders of silicon beach right can be just a little small silicon based briefly yet we're now it's sort of calling it block scene beats but back in the day we started a place called big trouble us where we're bringing all the bitcoin companies in and

go point took the master lease on that but unfortunately mt gox happened and nobody else could pay the rent so that kind of imploded but i think would be a great thing now but there's so much momentum around town now you can't go into even a local bar or pope now without hearing block chain bitcoin to this that it all comes up yeah it's everywhere and so tell us a little bit more about go coin and then block yeah who is doing real well so they're growing their merchant base so it's for online payments as you know and we're taking a bunch of new cryptocurrency is not as big point like going into it's going like the old 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 them slowly and strategically you know 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 dash of the gas community have really made inroads and they're really introducing crypto 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 have always said it's going to be. seen 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'd like dash i like the project i like the team and it's one of the reasons we had to go point right they 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 dash. no purchases on their cheap air right right and so gold coin is processing especially for crypto and merchants sign up that's right and they can take crypto and where do you see the trends in the us. when when we going to see like. or big big our 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 i'm

a little shocked 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 it's 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 the 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 point 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 so 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 on the rights. security token is actually a piece of equity in the company so it's just like any other issuing the difference is now you have more available liquidity to your to your top so that's basically just an equity offering right. but you took ok so you're putting securities on the block chain right so how does this you see i mean that falls directly under their purview i would think that's right that's right and so it's just like any other

offering you know you have rigged. you know reggae and with no reggae plus so every time i hear the radio i think of this. jamaica doing the reggae mon and so you have now interestingly now i found this out recently you are in air b.n. b. super host yes we are so tell me what that means in yemen a property in malibu and what's interesting is that the company is going to offer to their super hosts equity in air b.n. b. so let's talk about this a little bit yeah it's interesting it's really my wife fox that's what she spends a lot of her time managing that property and really does a fantastic job with it and but the idea here is that they'll be able to as as an owner of one of these properties and hosting with their b. and b. is get equity in the company just like an employee would get equity in a company they work for even though you're not an employee as an a or b. and b. host in a way it's sort of the new economy sharing economy type of employee so this is

different way it's like the next generation of an a boy you know it's interesting because people are talking about these get economy employees and workers and they're underpaid and they're not really getting a big wage and. the company doesn't even classify these workers as employees or independent contractors but it seems that giving equity to more people is a way to get more people involved in this economy in america that is driven by financialization. it's not driven by wages i mean it used to be wages in the seventy's and eighty's maybe but since the eighty's america has gone into a period of pure financialization and everything is traded in tokenized so an easy way to get folks involved would be ok we're just going to give you a piece of equity it doesn't really cut into if companies are buying back their own stock with my money they're brawling for nothing from the central bank why can't

these companies give some equity away to people who are actually doing the work to build the value in these companies steve absolutely they shouldn't have to be an incredibly bester i mean the little guy who's driving around the uber he's acting almost like you work for the company but he has no ability to get you know an equity ownership in that company based on who he's really has a million dollars somewhere or made to it if you two thousand dollars or less brinson rigged a requirement right doesn't meet them so he can buy the stock and so this you just gifting that essentially gifting the stock in their account and now their equity participants i mean the companies that have tried equity ownership have done well in the companies that pay well done and done well here in the in los angeles the in and out burger where they pay their folks very well and that's a big love chain and there's very little turnover in companies that offer equity do do well what why doesn't that mrs get through to a wider spectrum why is why is amazon you know think that having the one guy with

the two hundred sixty billion dollars and having guys were on the floor having the plastic bottles right i don't get it why is that what are your thoughts on the game that's in it like metallic over at the theory and a theory 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 you know. alec 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 is going to have you back on so i guess i should mention because i go coin is the place for merchants anywhere in the world right that's right if you want to take crypto and join the revolution go to go quite the

same guys report thank you i was going to do it for this edition of the kaiser report with a match kaiser and stacy herbert want to thank our guests low regard of gold coin and block b l o q going to reach us on twitter it's guys report until next time bio . and you'll bump out. i'm not that. type of time talking on the.