well i predicted it exactly as it unfolded. so this we're not going to today look at the unfolding disaster in the u.k. nor at the one in france where of course has surrendered to the people because all presidents of france must surrender to the people especially when the word is on the streets that the farmers are going to join in no president has withstood the farmers well since louis the sixteenth was it or whatever back in the french revolution days so i want to turn to our own emperor here because. i like the way he's similarly melting things that our own in the you know the elite a sphere of how they talk about things that he makes everything so blatant the way he speaks like somebody from times square in one nine hundred seventy s. exclusive trunk says release of while way c.f.o. could be part of a broader trade deal with china more on huawei and in response to that edward along

of the new york times if trump said this undermines everyone who has said the arrest of mung hong's you was not political and it's strictly based on rule of law and what do you do o.j. officials and investigators think of this he's making it quite transparent trump is that ok we've we've captured this woman we kidnapped her as part of our trade negotiations with china and china of course has retaliated and arrested some former diplomat from canada so but trump made it like he made it obvious currency war trade war war and the u.s. and china are going to war. it's not russia is not the enemy china is the enemy in terms of world in the american strategic interest world and now it's getting hot it's getting hot maybe the thing is that we do not have any enemies as our founding fathers would have said we have we have partners trade partners and it's just whether you should just trade freely with everybody not entangling yourself with

anybody yes china is the enemy if the enemy is somebody delivering things more efficiently and faster and better products then yes perhaps they are the enemy because they are kicking our behinds in terms of. you know talking about war and enemy and strategic resources and treasure and the land you know hundred years ago two hundred years ago people went to war countries went to war to gain treasure to grain to gain land but now in the twenty first century the treasures intellectual property and recurring revenues and china is seen as grabbing too much of america's intellectual property they're not paying hollywood for all of those tom cruise movies that they download for free that is an act of war that is the war we're at now they're stealing america's property and treasury treasury treasury treasury and treasury and so americans are tell you and

they're doing war games they've got jets with the chinese flags the stuff on the on the tail wind wings and things are they're out there doing the mock wars well a few things first of all we're called yankees because we used to i think it was the dutch you named us the yankees and yankees basically stole all the intellectual property of the european empires of the time secondly our intellectual property is very basically violent it's weaponized and it's it has enabled a class of people it's a equivalent basically our printing us dollars and printing copyright has allowed it has created a class of these oligarchs. to have the state department and the u.s. department of defense on their side and thirdly the cable news and all of our elite sort of basically progressive they call themselves progressive but they'll say that we have no empire we don't behave like this we don't use force to you know basically exact advantageous trade deals for ourselves we're just like hollywood's

just superior and that's why we're wealthy it's not anything to do with the senate it's all about her kidnapping union and the collective unconscious is the playing field of the twenty first century war craft to get mind share to get mean share to get market share means to get the majority of folks as many people as you can to pay up a monthly fee to have access to their own mines that's why google owns all people don't use their brains they use google if i have a question like how do i make maple sugar or why is there no deputy secretary in the united kingdom they have no brain of their own to use they have no knowledge they have no education they go to google they've outsourced their mind and that collective mind the hive mind it that's what everyone wants to control and so china wants to control the hive mind they have artificial intelligence going after the

hive mind they've kidnapped ma long as you do in canada why mind share that's where the playing field the battlefield of the twenty first century so we're at war right now i mean so whether you know it trickles down to bullets and bombs and guns and stuff i mean that's immaterial we're already at war right now it's being played out in our collective unconscious if you wake up in the morning and you feel a massive headache is because china and america are at war in your mind speaking of having a war in your own mind we do see a lot of cognitive dissonance especially on m.s.m. b c who somehow feels like dumb. will trump is somehow very very different from previous presidents in particular say obama so this what trump is blatantly just raw telling us in thuggish language is mind he is saying that we're basically yeah we've kidnapped her and if they concede and they give us concessions on these

tariffs then we'll let her go well you know the fact is when edward snowden released all those and i say documents what we found is it wasn't about all this like you know spying for national defense it was actually about trade war as well it was getting corporate espionage they showed that for brazil with the us they showed that with hacking angela merkel's phone it's all about getting trade secrets and knowing ahead of time for your you know in terms of global trade and competition so this is what it is is just raw competition and remember hallways a second largest smartphone maker in the world but in particular all this stuff has started to happen because just a few years ago china set about as a government policy to get up to the next level of ai telecom chips that's the semiconductor chips or the big. like battle ground we're fighting over a semiconductor chip who produces that that's like the new oil of our day so this

is where what started out as the profit brock tears has said life is basically a video it gets in the game to give you more power and more treasure and more access to higher levels right that's the global economy is a global video game at this point and if you get more people subscribing to your service whether you're disney or netflix or comcast or amazon you know amazon prime is a subscription service there are only so many people in the world with access to the internet who can subscribe to stuff that's the global economy right there everything else is in service of global subscription models and those who have the most subscribers when it is going to be a chinese or american company that's yet to be determined it's not going to be russian company just going to give the quote from donald trump the full quote about how basically he would release this woman the c.f.o. of huawei the second largest telecoms company in the world when asked if he would intervene with the justice department in her case tom told reuters quote whatever

is good for this country i would do if i think it's good for what will be certainly the largest trade deal ever made which is a very important thing it's good for national security i was certainly intervene if i thought it was necessary the way the economy is going in the next twenty thirty years is that we want of countries will have subscription services so people will subscribe to america or they also scribe in china that will see that are also tried to russia or they also describe in japan or those subscribe to venezuela and either pay twenty dollars a month or fifty dollars a month to buy if i subscribe to america i get you know the access to certain american attributes and american benefits but i have to weigh that against subscribing to friends or subscribing to britain or subscribing to russia i may not be the best subscription service for my mind at that any given moment i want to have both sanity and i want to have benefits delivered to me at a cost. that accounted for based on my ability to play the video game in the casino that is the global economy we're all living the way we all live in

a casino trump is our casino gulag leader sixty eight i think you will do a good job because you come from the casino industry that's why is pretty much stays the leader of china g. he's not a videogame master he's not the master of casinos he doesn't know anything about reality t.v. let's turn to this final headline here this is a new york times opinion piece and says can the u.s. stop china from controlling the next internet age this woman who wrote this opinion piece poses the kidnapping essentially in this paradigm of controlling the internet who controls the internet and first she looks at the fact that the c.f.o. far away is the daughter of the founder of huawei who used to be part of the people's liberation army and intelligence there so she's pointing to them and saying look qual way is you know part of the government and that's evil and that's bad and we need to look at that by basically she says we need our government's commitment to investment what's coming next is the best counterpart to vigilance

against competitors like china and said we're seeing allowed but decidedly empty effort to promote the idea that tech manufacturing to return to the united states it won't and a very weak commitment to bring in qualified tech and science minds into the centers of power a good pick for the head of the office of science and technology policy is that speaking for him after being nominated this year she's saying essentially the solution is to spend more on science and technology and mass however like most parts of all phones and you know silicon valley is basically a darpa projects as part of the department of defense you know speaking of that war in the mind of the american mind as represented by m s n b c and i don't mean to pick on them but that's what i watched most if i have to watch cable news is that you know they like to pretend it's all free market and that these are just great innovators and guys who are just really smart concentrations. valley but what they've had is almost unlimited resources and. you know basically jobs tasks set to

them by the department of defense to develop a set certain specific thing we have tremendous innovation and progress and the area of mind controlled prosthetic limbs people who have had prosthetic limbs surgically attached to their bodies can control these limbs using their mind people can now use control cursors on a computer with their mind ok the mind is being unshackled our collective unconscious can be used if everyone in america simply sat down and concentrated on lifting the genie the president china up out of his chair in levitate him into the stratosphere america can do that and that's exactly how often try something like that when you know it's a limited and i think honesty is right or an era of liberation of the mind using drugs but now we have a liberation of the mind using the internet and we have the ability to connect our connect to our collective unconscious and to there's an economy of scale. we might attract aliens that are kind of lurking on the periphery that's

a risk or we could live to see into the stratosphere. those are the two options and trump knows that it's all right i guess take a little break practice telekinesis and we'll be back right after the. words. feel. yes to all this is how the who.

put themselves on the line they did accept it over. so when you want to express entry. into going to be for us it's like the for real people. i'm interested in the lives of our. dues i say. if they're going to be cheap but then who've come through so let's. get right to go to his country he said fifty give them everything to do the

best. discount. this is what we don't understand how we are poor in such a country. let us into the minds of the think. it was a non-governmental. the soon to run up a similar symbol. if the minutes of on board not that god can we believe again with the phone a couple with the plane. would come up to the three story you have to see. the end. if you move.

welcome back to the kaiser report imax keyser time now to turn to mish shad lock of mish talk dot com michelle welcome back pleasure to be back on the show max but i want to know this is what's on everyone's mind here is stacy wearing her red green outfits at worst you were there or will soon or well that's one of those internet names mash where you don't know whether it's a red ourselves or silver or red we're going to get to that a second but first let me pick your brain on this one evolved and said that it was a mistake for a trade war with china and now we've moved into a stage where is tip for tat kidnappings what do you make of what's going on here mesh is pretty amazing you're max the stock market keeps going up on the news that the trade were is over and it goes downward and when it's rescinded typically hours later any time going to bounce off the same level on the us to be five hundred

we've got about six times this year what i'm going to break i think it's going to break our yeah well you know it's anything from thinks that the federal reserve bank is a bigger danger to america than to china what do you think of that it's crazy but. there is a danger here i mean you want to end so anyone with any common sense wants them to fret. but to end it for a while if we're going to put a populist government in place you know that that's just going to print money at will the finance wars that ain't going to work out meanwhile it's kind of interesting what what janet yellen of the senate is saying here now not speaking to her yesterday and she said there's a gigantic full. in the process here and she's worried about another financial recession. what's curious is in june of two thousand and

seventeen shortly after she went bad she came out and said. none were referred to as a crisis there are a lot of her work there at the time is that why. you come up with max never wrote about yesterday this is when you're in charge of the allen else you have to say that the plumbing is good so here we are now i guess time hands and spread aster you're going to speaking to are you going to say whatever you want so now she's worried. about are your shoes carriers of a big crowd on the back were job well. racks you know these guys are surely that's an interesting point you bring up you say that ok the fed is terrible we think when they should get rid of it but if you get rid of it what do you replace it with separate up another question is what if you were to reform the fed

and what would that look like and let me give you a little bit of my thinking on this the problem with the fed and this is the body that sets interest rates is that they key in on the government printed definition of inflation they don't see inflation so they keep interest rates low and this is two years and years of question mesh as if you were to reform the fed and you were to give an honest view of inflation what the real numbers that tracked real things like housing and interest rates therefore would respond to real inflation would that not be a step in the right direction there would be a step in the right direction but the pro real way to measure an asset bubble through instance. certainly they do a quarter job of measuring prices. how does homeowners a clue what rat really ask people how much they would rent their house from if they were to rent their house like this makes any sense of course it doesn't.

there's a difference c.p.i. for every someone in school. lol is more worried about it occasionally cause someone on on fixed income actually someone on medicare. who has the government bring most of their bills. they don't they don't care around the trump much medical costs out and was hospitalizations going up and other that paid a little supplement or some weeks but it's not like they had to go out and buy their own thrive at insurance max these things are going up sometimes eight hundred percent a year for several years you were paying massive amounts of money so if you're if you're paying your own health insurance you've got one c.p.i. if you're if you don't you don't have another one of. these things this is why it's really best up to the free market this bad is blown three consecutive bubbles in a row i think you said because they don't understand what inflation is they don't

look at asset bubbles and it's a very difficult thing to do to say ok you know stocks are up this luncheon and this percentage of it is an asset well just best to let it keep it the fed out of it all right center on the at top of the fat and of course our back to the the big guessing game every few months we play the same game as the fed going to raise or not they're scheduled to make an announcement saying what's their call other raise met when the market agrees with the fed's going to raise you know it something really strange would would have to happen to short circuit that but we often hear that drum him accident that the bad is just well when the market reacts if that was true why don't we just get rid of the fed and let the market decide rates in actual practice the fed doesn't exactly follow the market

they are trying. and perswade the market they have all these market participants out there trying to game the fish is going to do or not do raw running the market as we've seen happen which were is really rates in front of q.e.d. you know the president to do a certain things so they can take advantage of this is this is the environment we're in here now where there's no real pricing mechanism because of the things that the fed says and does now because of things that market participants think that the fed is going to do so this whole notion that the fed is just slowing the more i say prove it get rid of the bad and let the market set the rates but keynes countries for a second because the phenomenon of central banking is and all the major countries and no other nation in the world has more debt and no other central bank has

intervened more then and japan now you recently wrote of the red queen sent drum n. japan so let's talk japan the red queen central mesh what are your thoughts there there on queen race is kind of interesting. this is an episode from allison waters when and where alice is running running running running and should get figure out why she's not getting anywhere and you know the red queen says well you need to run this past just to stay in one place so the so ounces running and running and elevated bankers are cracked. about or major emphasis q.e.d. on trying to push up inflation really curious thing about the first story of the emmys last for years was was that. as soon as the bank of japan stopped doing. what issue arose as soon as they did it to get this

one hundred fifteen years it's pretty amazing you're going to church and my queen raised finally the baggage of bands the words get over our the star and sure enough they were at. six hundred trillion yet or you know if you wait on or what's the next number quadrillion years are words that we're ready for. they own a half of the indexes and the japanese stock market and still inflation is low in japan just probably went back into recession again this past month it's it's really quite amazing now i think max japan is ultimately going to succeed be on their wildest expectations one day i just don't know when that date is. there there's going to be

a change in attitudes consumers in japan perhaps the demographics change perhaps they start having kids i don't know something like that max but when we get that exchange i think you're prat interest rates are going to and the c.p.i. is going to go soaring out of control in japan from zero or something like in service of financial crisis i think one's going next well you know the main japan of the central bank and their low interest rates if you have stacked up all the central banks and all the world all the eight or nine big ones and you look at their interest rate policy japan is the best has been for twenty years and it sets up what it's called an interest rate carry trade they carry trade as it's called where people are borrowing from japan and getting a pick up in yield by investing in the low rates of out. countries not their banks but there is a differential and they get that money so i play for frey but the point my question

is if japan if it blows up i mean this could this takes on everything down with it because it's the linchpin that holds together the global interest rate carry trade together and if that's going to go under and i agree with you that at some point it it fails and you have a currency collapse and you have a good you have a monstrous global ripple effect but before we go your thoughts on the role of the cantillon effect and the unrest in france and disconnect in places like the u.s. and u.k. mesh france is pretty great amazing here we are the leader of the euro zone the late the c.p.a. alban shasta izing italy over budget deficit of two point four percent well. guess what france is three point six percent and it served as a result one of the things grants did to get its budget back into the budgetary

rules that they were on over there was hyped axe the diesel to x. so you know the french protests it is their brain was doing and rice went on every week every week and excusing for four straight weekends rackrent backdown office diesel tax and now it is promising free money to be able. to really this is going to placate them or not but they're going to raise the minimum rate wage by one hundred euros i'm not going to do that he said he's going to do this without any expense to the what and why are prices really not realistically possible except he said it's going to really government and so how is he going to pay this is either going to have to race axes or he's going to have to be undone by ends oh oh oh no rules here it's the latter that he's chosen here

so now are we going to see the e.c.b. and european commission crack down on france. we're just current down on italy and not. only is only your. friends is it three percent or so. it's really curious it makes it all shambles. alleged stability yeah fair enough doesn't sound very stable to me a mesh i'd like thanks for being on the kaiser report max always a pleasure all right well that's going to do it for this edition of the kaiser report with me max kaiser and stacy i would like to thank our guest miche shad lock of list talk dot com if you want to reach us on twitter it's kaiser reported so much time by i'll.

get i'm. going to come along to jen's comedic on football. if possible between you think that's. to push. the system what's going to let you go for. you know you don't. know what do. you get for. each. purpose to you personally to put pressure. on you before. the movie because. the. president trump indeed has has he's way of communicating but you have to hand

it to him but sometimes it's better to try and shake up the established way of doing things in order to come to a different conclusion i think what's. worrying is this focus on you know fate news and junk news because one of the foundations of a democracy has to be the trust in news facts and information and if that trust is fundamentally shaken and the independent media all criticized then i think that that's a problem from a communications for specter. who's

going.