the crimean city of carriage of serves a period of mourning after a massacre at a technical college in which twenty one people died. from promises a severe consequences over the assassination of saudi journalist. who the us president now believes is dead turkey claims the saudi government was behind the killing but riad denies the accusations. put or releases a vast number of tweets supposedly generated by moscow trolls meddling in u.s. politics even though most of them were written in russian. the latest on these

stories you can head to our dot com stay with us now though for the financial news in the kaiser report. this is the cuz report you know we're still in vegas got my wife got to be careful you know never go. 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 whole conference and there is 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. like 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 el. mental 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 massive video files and formatting them for a different devices is 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 pros 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 stuff were working with. but now they they categorically deny it but

it's an interesting story well you know if you think of course amazon competes with alibaba alibaba chinese corporation and any way that they can undermine alibaba in some way the chinese authority in some way and plays into their global expansion efforts but this on a broader 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 question this chump 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 anymore 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 has them 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 enemy 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. 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 possibly 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 that a w.-s. knew about service containing malicious chips or modifications and data centers based in china or the works 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 show called threat from russia where there. spreading memes that

influence people to vote against their better interest they put a meme of bernie sanders as a buff beach. body builder and this worked the mines of america to vote against their interests but china is actually infiltrating the hardware with actual chips trying this actually in portraying the software with actual malicious software that's ok we're going to talk about that because actually the hillary's going to 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 is mis directed away from a genuine threat vector that being free can infiltration of the software on 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 ships hardware manipulations or volatile bill of these 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 is claiming that bloomberg is fake news essentially or are just like the iraqi invasion and new york times who are useful idiots for the cia who wanted an

interview. are some sort of agency that wanted 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 but . 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 well like prince whatever they say. one big thing scooped this is from. the trumpet ministrations secret anti china 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 in x. u.s.

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 it's like a bipartisan. 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 him squeak 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 like such

a loaded phrase. 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. continues 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. i believe that with this david just to china and as 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 like 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 and you know everybody nobody understands a computer all right so what do you think out there you know put in the comments below what your thoughts are is this 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. over the lone stick a russia's foreign policy has been deeply related to the united states approach at the wall when the american political reality became stranger than fiction mosco wants the bilateral relations to give thanks to normalcy.

pranking gave americans a lot of 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 story shows. people who rush to a small town in north dakota was an unemployment rate of zero percent just like the gold rush is very very similar to. this beautiful story ended with a boat. and of a station a lot of people have left here i don't know too many people here anymore just slowed down too much they lost their jobs got laid off from the american dream is changing that's not what it used to be. it's a tough reality and you don't. welcome

back to the kaiser report i'm nice keyser time mentor of turner a conversation with crypto mogul trace mayer chase welcome back glad 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 bitcoin 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 is part of the network effects some are fearing that this will give wall street a way to swartz the progress of big oil as they do in the gold market with three up on vacation your thoughts i'm just not worried about it at all i mean what's the

worst that they can do sell a bunch of brick 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 question 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 say 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 all that i mean i most consultants a gad been involved in their stuff for over ten years so i mean i'm very thoroughly

aware of what's going on right to gold and i trust action committee and i mention that because a link to this will get another ten thousand views anyway but with big oil. 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 answers and it's 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 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 coal 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 happening right now as they try to position themselves into this market they're a sloppy in the options market and for trued traders you can scout them all day long as they move into a 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 an open warfare between the hardliners and wall street it's possible to fork and we can fork yeah i brought my fork on as a pro years of. work 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 pork 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 get for if they for too much they'll get baked in fact. 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 the coin 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.d. see 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 and declined 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 build the custody solution so i mean they're really kind of in a pickle while they are going forward so gemini the widow takes a long time to build the stuff it will dump 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 dent 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 coaling what do you think they're i mean it's crazy who's new york to think that they get annoyed somebody issue a federal reserve notes on a block chain and have and not be counterfeiting under federal law i mean you know i federal preemption issues you've got all different countries like there's a chinese stable coin i coming out on by an answer ok coin 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 compliance table coin in some cases so it's you know so. going to 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 big 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. what with that transition so i think i think india and china you know banning big changes in india 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 turn quickly as you mention nothing like it but the old going market tumbly a fund of strength points to certain sectors of emerging commodities platforms privacy exchanges stable point so yes these separating this market into these different categories all coins your thoughts. in just getting a border rated why because almost all of them have no use case then a lot of them are built on top of the theory and who has 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 root stock and maybe i see as a saga star getting done on rootstock would be a big point in so i think in a lot of cases these i ceo's have way over shot and then corrected and you know and

then when that safety and we quit it he starts to dry up people we 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 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 whatever bubble is taking place on big coin be a root stock you know what's what what use case as a theory i'm have. met now 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 or impossible on big cooling trace mayor your thoughts. on the show i mean for signature going on. be to us age no i mean smart contracts are definitely possible it's just how do you really want to do it and blocks from just launched a liquid which is

a side chain you know. when adam back announced there was a there was a mean 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 therians but that's for security purposes i mean you you can. build an insecure wear on top of the secure but not vice versa and big point is the secure way or in a theory is not look at the dow look at the scale ability look at the full 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 citizen you write a full note and do your validation and you hold your own private 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 obliterated you know and that's because they're not taking the security seriously if you have five dollars a big one point five dollars a thought into securing it if you have a bunch more put a bunch more thought into securing. 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 guy's report with me max kaiser states ever want to thank our guest trace mayor going to catch us on twitter it's guys report or you know it download the frickin app watches in your taxi there's every fricken taxi driver in vegas is

doing so next time by you. and your own pal. kind of that. there is a trade in young girls sold into an underground sex industry sometimes but the people they trust the most. and.

alone welcome to the parts of the last decade the russian foreign policy has always been constructed to serve as a mirror sometimes as funhouse mirror to the united states but that approach hit the wall of when to american political reality became stranger than fiction now that most go you in securing its you gather to bilateral relationship back to normal what optics should it use to facilitate it well to discuss that i'm now

joined by timothy cult a professor of government and russian studies at harvard university professor colton it's good to talk to your again thank you for agreeing to or we're speaking on the sidelines so did fall dice forum and the catchphrase of this year's event is the crumpling world the other is that's really desired guys or perhaps more graphic wishful thinking on the part of the russians well i would say it's wishful thinking i think the authors of the report that referring to actually saw the crumbling world order as a problem that they weren't very happy with. so there was quite alarming discussion of the report at the first session and certainly a number of us thought that they were exaggerating the degree of the problem. you know that the international order is under a lot of stress nowadays is beyond you know that they've been doing this for a picture that looks really set the day viewed as

a problem i may have my perception is that.