in an interview tabby defended his tweet saying the nazi general repeatedly disregarded criminal orders and heroically plotted against hitler. the party member dame again thinks that such tweets and sympathies would not be so popular if the left is found a better way to engage with the public. on the weekend over. the two hundred thousand people demonstrating against rasmussen and i think it's a good sign that on the same weekend thousands and thousands also demonstrating christian targets the left lost some people who were earning lower than two thousand or rule a month who are very poor who do not know what will happen tomorrow and i think we should. have learned again to speak in their language and to think with their sorrows and stay without international updates coming your way in half

an hour. i am asking as or this is the cause report you know we're still in vegas my white suit i got to be careful you know never now oh. oh oh oh. that was close. you got me. right max so i have a very good headline because we are at a security conference here in las vegas the host conference and there was this there's been a strange story going on in the united states about these sort of chips that china allegedly planted on all these important infrastructure relating to amazon apple

and some other stuff so we're going to look at this because all these huge corporations. very specifically demaio any of this story but we're going to look at the first story from bloomberg this was got a lot of attention in the united states the big hack how china used tiny chip to infiltrate u.s. companies the attack by chinese spies reese almost thirty u.s. companies including amazon and apple by compromising america's technology supply chain according to extensive interviews with government and corporate sources so they use i think seventeen sources just like those seventeen intelligence agencies that we keep on hearing about but they have these anonymous sources that claim that these companies including amazon and apple had been basically compromised by a chip that was placed in devices being built in china and they point out in

particular they actually have data on all sorts of facts that they claim happened in twenty fifteen amazon dot com incorporated began quietly evaluating a startup called elemental technologies a potential acquisition to help with major expansion of its streaming video service known as amazon prime video based in portland oregon elemental made software for compressing the mass of video files and formatting them for a different devices its technology had helped stream the olympic games communicate with the international space station and drone footage at the central intelligence agency the cia elementals national security contracts weren't the main reason for the was acquisition but they fit nicely with amazon's government businesses such as the highly secure cloud that amazon web services was building for the cia and then the article goes on to claim that amazon found a little chip on some of the devices and that the f.b.i. and cia and software working with them but now they they categorically deny it but

it's interesting story well you know if you think course amazon could. alibaba alibaba chinese corporation and any way that they can undermine alibaba in some way the chinese authority in some way it plays into their global expansion efforts but this on a broader scale scale is another sign of the end of globalization because up until recently corporations had an incentive to cooperate to be globally. impactful and there is a tremendous need to coordinate financial policy economic policy currency policies in the u.s. and china for example would keep the peg to the dollar to allow for exports into the u.s. which would give people cheaper goods in exchange for jobs and nobody questioned this trump has overthrown this world order and we're back to a neo mercantilist i'm it's every country for themselves there's not going to be any globalization any more all these global groups the i.m.f.

the world bank the united nations are all being dismantled nato is being dismantled as we enter this century of the century of de niro mercantile islam and of course this is no no one is very dangerous because now you've got all these countries are going to be competing with each other to the level of where it was before world war one which led to world war but on the other hand it's very exciting because it means american workers are going to have a chance to compete finally in the global economy yet so there is an emerging sort of consensus that's being pushed that china is somehow a quiet and we have been have infiltrated us we see this we see this across both parties we see this across the entire spectrum of america is. our economy has been hollowed out our position on the world stage has declined people are starting to come up with their own alternatives to our instruments of control which is the u.s.

dollar even germany allies like that so it's interesting that all these like mysterious forces that you can't call. see it's as mysterious as communism an ideology which infected americans in the thirty's and forty's it's this mysterious force of these these secret agents from russia and china who are overwhelming us they're the barbarians they're the visigoths and the vandals they're they're these people that are coming after us and there's no hard data but here they're saying like in the original bloomberg piece they point out the elementals servers could be found at the department of defense data centers the cia's drone operations and that onboard networks of navy warships and elemental was just one of hundreds of super micro customers now again these companies deny it this is the interesting thing is usually so like when edward snowden revealed all the data about the n.s.a. and working with certain corporations and telecom companies they they all issued

vague miles very very vague nothing specific and. any lawyer could see that they had all sorts of get out clauses especially that they were under n.s.a. gag order is what apple has denied that there are under any gag order amazon the same so what they hear is the follow up the big hack statements from amazon apple super micro and chinese government amazon said it's untrue that a w.-s. knew about a supply chain compromised an issue with malicious chips or hardware modifications when acquiring the elemental it's also untrue the a.w.l.'s knew about service containing malicious chips or modifications in data centers based in china or they worked with the f.b.i. to investigate or provide data about malicious hardware apple gets even more specific and. i mean china is in the software it's in the hardware as opposed to this so-called threat from russia where they're spreading means that

influence people to vote against their better interest they put a meme of bernie sanders as a bluff beach. bodybuilder and this were the minds of america to vote against their interest but china is actually infiltrating the hardware with actual chips trying this actually trying the software with actual malicious software that's ok we're going to talk about that because actually hillary's gonna be you know amused because after all she can't possibly be held to account for catastrophic failure because her personality is one of that of a steaming pile of nothingness i mean the total politics as mr dyer wrecked it away from a genuine threat vector that being frickin infiltration of the software and the hardware by the top computer in the global sheer well ok let's go into more specific because we don't know that this actually happened. something's going on but apple said this is their statement on this we can be very clear apple has never found malicious

chips hardware manipulations or volley abilities purposely planted in any server of ours apple never had any contact with the f.b.i. or any other agency about such an incident we are not aware of any investigation by the f.b.i. nor are our contacts in law enforcement we are deeply disappointed that in their dealings with us bloomberg supporters have not been open to the possibility that they or their sources might be wrong or misinformed which is maybe them also saying disinformed they were being disinformed about something going on and i have another headline after this to tell you how that might be the case apple's claiming a bloomberg is fake news essentially or are just like the iraqi invasion and new york times very useful idiots for the cia who wanted an invasion or some sort of

agency that wanted an invasion of iraq that they were being fed just information and we know right now. in particular especially the media and the resistance are in total awe of anybody from the f.b.i. or cia so they're going to print the resistance like anything they have to say. here is one thing trump is a smart guy and he sees how the media is in love with with the f.b.i. and in love with the cia and will print whatever they say one big thing scoop this is from. the trumpet ministrations secret plans the trumpet ministration is planning to launch a major administration wide broadside against china according to two sources briefed on the sensitive internal discussions these sources who weren't authorized to discuss the plans with the media told me the effort is expected to launch in the next few weeks by the way this article and it was was published in september

earlier september before this information about the chinese chips came out and they said they want the broadside against china which is planned to be both rhetorical and substantial will be administration wide including the white house led by senior officials on the national security council treasury commerce and defense we're not just going to let russia be the bogeyman one white house official told me it's russia and china in us it's like a bipartisan bogeyman and they're pivoting away from russia as the bogeyman to china is a big myth because the cost advantages of making china the bogeyman is a lot more advantageous to chop in the american economy than you know pipsqueak russia when it comes to comparing these two seventeen trillion dollar economy and there's no point in trying to make hillary look good anymore they've got a chance to twenty twenty and start to run twenty twenty but if i understand what you're saying there they can infer what you're implying is that this is a false leg. well i don't know about false flag like such a loaded phrase mostly put fake news and i'm saying that

somebody may i don't know the truth. about this somebody claims somebody anonymous sources seventeen sources within the u.s. intelligence agencies and governments told them some information that there had been chips planted by china now we continue to be more reporting on that we don't know for a fact who is right who is wrong apple could be lying about this they could be hiding something that could be highly amusing that we just gave it to china and it's being politically motivated but here yes this was a few weeks before this information emerged that there was apparently there are discussions within the chump administration to find a reason to go after china they might think it's a good a vote winner coming in two thousand and twenty we already know is a vote winner in terms of they took our jobs and now they're taking our our secrets

you know they're accessing our secrets by a secret sort of stuff on computers oh you know everybody nobody understands a computer right so what do you think there are you know put in the comments below what your thoughts are is bloomberg story some kind of wacky false flag or is it just utter confusion out there in the world of technology right we'll be back after the break don't go away. oh official of president facing the system. the system designed for. different people.

most people in philadelphia ballot two paychecks away from home. over the last decade russia's foreign policy has been deeply related to the united states. when the american political reality became stranger than fiction. to normalcy.

welcome back to the kaiser report i'm nice keyser time mentor of turner a conversation with crypto mogul trace mayer trace welcome back to be here max all right so let's get back into what we were discussing about back to which is this new new york stock exchange initiative they're doing deals with starbucks and microsoft it's really laid out early on going back to a big going to twenty five cents there are seven network effects to be aware of as we head toward world domination for big going and we're well into those seven network effects and so let's focus on back for a second they are going to open the door to possible financialization now financialization as part of the network effects some are fearing that this will give wall street a way to swartz the progress of big coin as they do in the gold market. with three

up on vacation your thoughts i'm just not worried about at all i mean what's the worst that they can do sell a bunch of big when they don't have and fail on on the contract to somebody right that's i mean there's a worse and what's going to do it's going to suppress the price which means that people are going to be able to buy more big cornetto or price so whoever gets stuck with the failure to deliver you know or or get stuck with the contract where they can't deliver the big point well they're going to take a wasp but whoever bought the big point at the lower price will get the gain let's talk about naked shorting for a second so with naked shorting the wall street essentially selling stock or selling futures contracts that they're printing at the same time that they're on collateralized they they're not backed by anything and if the price of something like gold goes up and they don't want to go up they can flood the market with sell orders from naked short sells of contracts that they are printing like you would print money these are fee out orders and it's been proven and documented that this

all. and although i mean i most consultants a gad been involved in their stuff for over ten years so i mean i'm very thoroughly aware what's going on at the gold and i trust action committee and i mention that because a link to this will get another ten thousand views anyway but because. that is not the case because really this work to make it short selling a huge way because the high dollar last result has control of the private number one so that you could on mass take delivery of those keys you can't do in goal because it's cash livery and nobody has the and it's and is so much more expensive i mean look at germany when germany decided that they wanted to be a hardware of last resort and said give us eight hundred tonnes of physical gold how much how much did it cost to move all of that to transport it to verify the quantity and the quality of it every day twenty billion dollars plus a big point gets melted down and recast into new you t.x. those verifying the quantity and the quality with one hundred percent on every transaction you can move one hundred million dollars a big one for ten cents and so

i mean you can't do that with gold does does wall street even understand the liability that they are potentially opening themselves up to or they just going to stumble into this get burned and then learn the hard way i sure hope they don't understand it you know because i would discount him well that's what's happening right now as they try to position themselves into this market there are a sloppy in the options market and for trued traders you can scout them all day long as they move into that second idea and this is more of a contentious idea i want to get thoughts on it it mean is possible if worse comes to worse or there's open warfare between the hardliners and wall street it's possible to fork and we can fork yeah i broke my fork going as a. right. now explain how that would work a little bit yeah so i mean. there's several different ways that happens one is when the four captains they don't if you don't have the private key is you don't

get the port. you know so what happens if your coin base and you go in you're supposedly holding a whole bunch of big point and then big cash comes out and all your customers are you have to give you the big going cash and you might actually have a legal duty to do it because otherwise it would be unjust enrichment or some type of fraud or whatever right like how are you going to deliver the underlying and then what happens if there gets to be a little bit of squeeze on the underlying just for the thought of it the wall street can get all they want because at the end of the day we can get forked yeah they can go forward if they for too much they'll get baked unbacked. i mean that they're really in a difficult position because how did they acquire a position in big corn you know in fifty thousand big quine's isn't cool like hundreds of thousands of bitcoin now that's cool but fifty thousand is not and so they think that they're going to come and play in this space and they're going to bring the rules from the old system where you're settling into something that's not

limited in amount strictly that's not going to work you're playing with a new technology here and the hardware is a last resort in a lot of ways i mean they're not just a freight train they're like a glacier i mean you're going to like how do you. this is going to get effortlessly pushed out of the way by the hot owners excellent point you've just returned from d.c. where there was some c.f.c. hearings related to big clean what can you tell us about what you saw yes i attended the technical advisory committee meeting it was broadcast open to the public also the new commissioners are very interested in between stuff the virtual currency subcommittee took up a vast bulk of the time and they're trying to figure out mainly you know of course there's the m.l.k. y.c. issue but the really big issue is custody like. how do these institutions. custody large amounts a big coin and you know we had a lot of those that we were building in armory but for whatever reason like you

know we didn't i didn't continue to fund it and part of that you know i would say was hey if wall street institutions want to buy big quien they can build their own custody solution against begin to keep the price down so i acquire more big one in the meantime so why why build the custody solution so i mean they're really kind of in a pickle yet while they are going forward so gemini would take so long time to build the stuff you will not they're building it like gemini for example the winklevoss twins in new york they've got custody services they're offering plus. insurance they're going to start insuring these deposits as well these big clean holdings is that's a that's a big that's for the network effects right oh yeah that's that goes right into financialization because you need insurance on the d.c. o's in the sas and they talked about that you know right now the insurance at the tac at the see if you see meeting like the hot wallets they usually get insured to at most maybe like fifty million warm wallets five hundred million in cobol it's like two billion so even right now like the insurance companies are playing in the

space but large amounts of capital are not here i mean we're talking hundreds of billions of dollars that's when things start getting interesting. they've also a gemini also create a stable coin that's compliant with new york laws so your thoughts on these so-called stable collina what do you think they're i mean it's crazy who's new york to think that they get annoyed somebody issue i federal reserve notes on a block chain and have and not be counterfeiting under federal law i mean you know i federal law preemption issues you've got all different countries like there's a chinese stable coin i coming out on by an answer ok point or something. there's definitely a market for it look at tether but you know. there's just a whole lot going on there you have chinese exchanges that don't want an m.l.k. y.c. compliant stable code. and in some cases so it's you know sega china is china going to go from being wary and concerned about bitcoin because it's

a decentralized technology and a very centralized economy being a country that starts to see it as a strategic reserve and as they do battle with the u.s. dollar and could that set off like a almost a space race of countries mining to create. reserves going forward could you see that happening yes a supposedly there are some african central banks that are actually starting to hold bit coin they're doing it through things like open dime. china specifically i think they're going to get caught flat footed again just like they did with silver you know and they lost seventy percent of the. way with that transition so i think i think india and china you know banning big changes in india oh i clamping down on the entrepreneurial process in china the great fire wall well i think they're just same song second verse they're going to get hit flat footed again the chinese during the silver stand still or stand that in the thirty's yes so they were the

last to basically do monetize silver and move over to gold and as a result they they're the ones left holding the bag just like africans holding gold glass beads or you know whoever holds the the inferior technology in stone age and then because of a lack of stones like we're in a new age now in big points here and there is nothing on the horizon with anything close to these network effects right let's talk quickly as you mention nothing like it but the old coin market tumbly a fund strapped points to certain sectors of emerging commodities platforms privacy exchanges stable point so he's separating this market into these different categories all coins your thoughts. in just getting a bullet or a did why because almost all of them have no use case then a lot of them are built on top of the theory i'm who who's been able to sink into theory and form know from scratch in any time recently. i mean it's just absurd like the lack of scale ability there and then you've got rootstock and maybe. start getting done on rootstock via big coin and so i think in

a lot of cases these i ceo's have way overshot and then corrected and you know and then when that safety and liquidity starts to dry up people will need to cash out in order to get into something more stable and so we've seen a lot of the capital flowing out of the into theory i'm out of the theory i'm into big pointer dollars and but if the next big bubble has i.c.a.o. or or whatever bubble was taking place on big coin be a root stock you know what's what what use case as a theory i'm have. met that would be a big zippo. it's an awful us big cooling yeah buddy of mine. well known between when i spoke to him the other night and he said that he thought smart contracts were impossible on big trace mayor your thoughts. on the show i mean we got signature going on. between us age no i mean smart contracts are

definitely possible it's just how do you really want to do it and washroom just launched a liquid which is a side chain you know. when adam back announced there was a there was a me mike and suddenly millions of all coins cried out and then there was silence. so you know what we can do so many of these things on site chains and then you got interoperability and since it's you've got big coin impregnated into it you've got a four on what the thing can be worth because you can always take it out of the side and back in the main big one but understand this argument that you can't do you know smart contracts for all the reasons you just said and then look at whitening network you know like so we've got a whole bunch of stuff that's already happening there it's how complicated you want these smart contracts to be a big point scripting language is much more narrow as opposed to like and. but that's for security purposes i mean you you can build an end secure layer on top of the secure layer but not vice versa and big is the secure way or in

a theory is not look at the dow look at the scale ability to look at the phone nodes being sunk from scratch it's a real problem right so people say that unless you're own a node you're not really fully supportive you know something you would agree to well i have how i kind of phrase it is if you want to choose to be a first class pick point citizen you run a full node and do your validation and you hold your own private keys if you want to be a third class they're going citizen like holder coins on mt gox we see what happens to people that are third class that when citizens they get a good or a good you know and that's because they're not taking the security seriously if you have five dollars a big one point five dollars of thought into securing it if you have a bunch more put a bunch more thought into securing it change. our use of pickling right here in the kaiser report thank you thank you so much max well that's going to do it for this edition of the kaiser report with me max kaiser ses ever want to thank our guest

trace mayer going to catch us on twitter and sky's report or you know and download the frickin app watch this every fricken taxi driver in vegas is doing so next time by you know. no news in the world. on the. total room go to. not he didn't oh no. oh. oh he says the move for you.

the gruesome plot thickens the saudis now wouldn't it jamal khashoggi died in their custody after an interrogation that went wrong turkish media claim they have evidence of intentional murder nonetheless trump declares he's not going to walk away from saudi arabia will there ever be justice for jamal khashoggi. tracking gave americans a lot of new job opportunities i needed to come up here to make some money i could make twenty five thousand dollars as a teacher or i could make fifty thousand dollars a year truck so i chose to drive truck people rush to a small town in north dakota was an unemployment rate of zero percent like gold rush is very very similar to a gold rush but this beautiful story ended with pollution and devastation a lot of people have left here i don't know too many people here anymore it's just slowed down so much they lost jobs that laid off the american dream is changing

that's not what it used to be. and that's a tough reality to deal. you'll still has to try to get a hasty just a little bit more spin room to do what you did. if you do choose it it's important you just wish to survivors of a massacre at a crimean technical college speak to our two years three days of mourning begins the morning you may find the upcoming images disturbing. the city grieves chilling similarities are drawn to the columbine massacre in the united states almost two decades ago.