that with you know the chlorinated chicken trade we see that with our healthcare system here we see that with the dilapidation of our big cities like san francisco and los angeles we see that with the boeing and their nonstop catastrophes unfolding that's all part of hubris and bullying and just we're no longer associated much with quality and a lot of it has to do with hubris right as i said it's it's that we have so much power and we've weaponized trade and we've weaponized the dollar and here is the headline china is playing the long game says charles gave there's an old saying a wise man points to the moon and the idiot looks at the finger says charles gave founding partner in chairman of gave cow research tariffs soybeans and rare earth metals steel the headlines when it comes to u.s. china trade tensions but these are just tools or weapons of warfare and a much larger battle over money and sovereignty and china is playing a long game he said in particular he he points out the u.s.

dollar has been weaponized and china is really playing the long game by accumulating gold by creating their own futures markets by prepping for this and a very quiet way this is an interesting historical moment for the rise of china is here now and now we have a standoff so it's going to be interesting to see how the u.s. response and how the u.s. population responds or if they're staring at the moon or staring at the finger or giving the moon the finger you know that's interesting to see how the u.s. response you know the u.s. is a plucky group of rugged individualists that have come through tough times before and will see what resources can be pull. us through it well we have pulled through other stuff in the past and crazy periods and civil wars and and mass the salem witch trials and we you know the mccarthy era and it seems a little bit like that right now that there is history. area in the elite class

because they don't know how to deal with what's going on in the world in the mean time the u.s. dollar serves as the world's reserve currency and is used for pricing in trade by a majority of nations around the globe however americans have decided to weaponize the dollar gave stated making any transactions between 2 nations susceptible to u.s. action or scrutiny this is a big loss of sovereignty for other nations he said and china's taking the lead in forming an alternative trading currency to the dollar we've talked to alison mccleod here and i think that he's right that it doesn't matter about the currency this guy charles gave actually looks at for example that you know that china's trying to price the oil and remember and that is not what matters what matters is settlement of the trade where the settlement of the trade happens and as brad sherman a congressman from los angeles points out is that the all trade settles to the new york fed and that is important it doesn't matter what currency it is the fact that

it settles for new york fed is where our control comes from so the china has a long way to go to have a trusted settlement system and perhaps gold will provide more trusted right now as i mentioned in an earlier show you know we've seen this before in the eighty's with the rise of japan and the us had a response they rejiggered the global currency markets at the plaza accord this was reagan in robert rubin the same people that gave us the plunge protection team after the crash of 1970 so china doesn't seem to be wanting to play that game though so they're going to have to come up with some other strategy and at the moment none appear on the floor arisan something is got to give either the u.s. accept 2nd class citizens or even the global economy or they make some kind of dramatic move the u.s. could seize all the gold that they are holding on behalf of many nations and be the 1st to declare reste restoration of the gold standard because of course you know nixon promised that it was. only temporary that would. then follow richard nixon on

twitter and. i think if i'm reading the tealeaves correctly i think that's an interesting idea i think that could happen. but so we'll see what happens there during the 2008 financial crisis we saw in russia with medvedev remember he held up the gold coin at the same time china was suggesting that they would prefer something like a bank or which is a basket of commodities and currencies but again you still have the underlying if you use fiat's currencies there is the distrust that goes with it as we've pointed out but here's another story that talks about this imperial rot and the hubris of the elite who they lose touch with them and the vast majority of the population and you know they use the weaponization of trade they use the weaponization of their free out currency for their own benefit a very small group of elite and this is in baltimore and beyond a stolen n.s.a.

tool wreaks havoc for nearly 3 weeks baltimore struggled with the cyber attack by digital extortionists that has frozen thousands of computers shut down disrupted real estate sales water bills health alerts and many other services but here is what frustrated city employees and residents do not know a key component of the malware that cyber criminals used in the attack was developed at taxpayer expense a short drive down the baltimore washington parkway at the national security agency according to security experts briefed on this case so this is a parent with in 2017 the n.s.a. lost control of one of their weapons their digital weapons called eternal blue and it was a weapon that basically they weaponized a flaw in of course microsoft a microsoft product and they didn't tell anybody about it but this weapon this eternal blue weapon was. either stolen or released by

a disgruntled employee the n.s.a. still doesn't know how it got released but it's wreaking havoc to the tune of tens of millions billions of dollars across the world but is now on domestic soil it's just mind boggling story and the malware that is the weapons grade and developed by intelligence agencies gets out there in the open and is used for a malevolent you know we often feared the presence of suitcase atomic weapons you know what havoc that could bring and meanwhile we actually have this suitcase portables thumb drive version of n.s.a. corruptions. malware that is in the open that is causing havoc so it was released on april 2017 by a group called the shadow brokers again the n.s.a. doesn't know if it's some foreign power group of hackers or they're on their own disgruntled employees so there could be somebody still in that n.s.a.

or whoever has this is releasing this stuff since that leak foreign intelligence agencies and rogue actors have used eternal blue just bread malware that has paralyzed hospitals airports rail and shipping operators a.t.m. some factories that produce critical vaccines now the tools hitting the united states where it is most vulnerable and local governments with aging digital infrastructure and fewer resources to defend themselves so a lot of these local governments of course or states they're near bankrupt after all these years is 0 percent interest rates where they have to pay off all these pensioners and retirees from state employees and local government and they are not earning their return so they have to spend more of their reserves but anyway they have old computer systems with old microsoft products on it that have they have not patched it because a cost money to patch and to protect yourself from this and turn all blue so it's.

costing tens of millions of dollars across america so i don't know if you know this is basically an investigative piece from the new york times so i don't know what's the follow up what's being done about this how how we're going to stop this like basically you know all these all these that they just need to patch it but i don't know if they have the funds the patches or the know how to patch it because you know if there's the thing of doing the patch but also you have to hire the computer experts to be able to do this across your systems i think there's going to be a big demand for old cars and old homes that were built before all this electronics homes now have all the smart systems for all the coal in the locks are all tied to it cars are all electrified electronically engage and they're connected to the infrastructure of the internet so that some of these old houses and old cars that are off grid completely in junkyards right now you know those prices are going to start going up because people to they don't want to be connected to the malware they have to get in 1956 chevy or move into

a house that was built 30 or 40 years ago actually i'm going to cut through a little photo here max's new car see this is a 924 model i'm not saying in a chances i'm going back to the model t. because i know henry ford didn't put in any malware in that car no and of course when google cloud went down just the earlier this week or last weekend. people are cut off from their nest their control system so they're boiling and they in the heat of course this is also in the context of this battle with huawei crossing billions more and yet the reason why we're battling chua way is that we're afraid they're going to put a backdoor in it but here the n.s.a. is releasing malware it's leaking all over the place apparently they don't know if it's a disgruntled employee or not anymore i've got a back door into my wigwam. i know how to defeat these people so before it lead to eternal blue is one of the most useful exploits in the n.s.a. cyber arsenal according to the 3 former n.s.a. i. operation spoke on the condition of anonymity analysts spent almost

a year finding a flaw in microsoft's software and writing the code to target it initially they referred to it as a turn a blue screen because it often crashed computers a risk that would tip off their targets but when it went on to become a reliable till used in countless counterintelligence and counterterrorism measures now the u.s. by the way won't sign a global agreement that other nations want to sign saying that if you find a flaw like this if you find a critical flaw in the software used widely around the world like microsoft that you're supposed to tell that the company microsoft instead of weaponize ing it but we haven't signed on to it and this is the result well it sounds like a nightmare speaking of nightmares this nightmare of the 1st after about am because going to the 2nd half of all beautiful shangri-la like with the brilliant guest constantine who's like a frickin genius don't go away stay right there more to come.

the produce was good you've done your book. you mean if you don't believe people would. work the worst to move. you for this very sure if you order to. do the close you you presume this loop of girlishness lose your most few of them for you to do it in both of those when you're. going to jimbo you isn't in their history but if you. are never still because. you're going to treat your group as you move to a new one. more you would almost be. the whole truth in doing.

so we're going to. start with a. nobody could see coming that false confessions would be that prevalent in this population a problem for converts. any interrogation out there you'll see is a threat promise threat promise threat lie a lie a lie the process of interrogation is designed to put people in just that frame of mind to make the most comfortable makes them want to get out and don't take no for an answer don't accept their denials she said if i were to. say i stayed there i would be home by that time the next day there's a culture of on accountability and police officers know that they can engage in

misconduct that has nothing to do with solving a crime. welcome back to the kaiser report imax kaiser's caught that i got to part 2 of our conversation with cosseting concertino welcome back and it's matt's so cause attain a par why we were thought of a macro scenario and by the way are over there at your new venture there macro view dot edu highly recommend people check it out now we're talking about the big picture macro economics trade wars and tariffs and tromped all this stuff now during this period without interesting emergence of huawei chinese 5 g.

telecom company that is definitely rattling people's cages and causing all kinds of hand-wringing and consternation around there tell us a little bit about what's going on there constant thing well as far as mind is then unused there is an issue of the supply of art where from go quietly which is question in terms of its attention ecuador's and oxygen and security apparatus in china. are where actual data flowing through the system well the specials the. communications the sun's on it seems to me that that is that you shouldn't use any sense of well that sense the from the geopolitical or the e.u. and. so economics matter it's clear to me that are both why we say if you want debate that is up in the west that the ease and warm. you up the siren you of china both in the united states. but part of this uncertain cyprus security is

a huge importance area it is so remarkable it globally is one of the most wants the areas both. governments to date. at the wharf they're moving on to the rails a security environment we're looking at the cyber espionage but also. option off operation is a is a sense of losses arising there in the star in one of the recent papers myself on the co-author we have shown that there is ousts them it resists in a row or on the status of events in private sector. changes around the wall both changes that accompanies that appealing pocket by the box and these they are also beyond that so in other words it's a huge issue and i think dealing with now is going to be very problematic simply because yes alone that the chinese hardware and software. used by

atlas are a power such as china in different instances and if i think violence in the phone case is against the targets in the united states and in the us. well somewhere that we were the ball for innovation is more along the bottom as the bodies of the states wealth of the world in which grade is beneficial change both the actual property of software and hardware people the development of the future network systems the communications networks in the united states and not exactly what he chose at their quality the penetration rates on the average. in the united states are very low compared to say for example europeans despite the united states being bought the major centers for in the basin lower than the nation that is attributable to the united states bloat of the multinational corporations such facilities are on the ball china and chinese are on the up the chains of the

quality of their research and development also coming up in terms of the quality of their academic results so in other words we. get out deal with the issues like why wait. in all its it isn't for the mix in cybersecurity it isn't in moscow security issues but also after find some. they deal with it while the mix of ideas of jail for the confrontations and before long will that. in the boss diplomacy joint development or investment and so forth operative solutions believe in the wall the forklifts of solutions will live in the wall what with all the games the game of chicken wants you want to have on the fishing. the side of the wall it's very difficult model of going to dissolve the bond quietly. in the communication systems of the united states.

radical radical or where it was disrupting the supply chain systems it was dishonest in the existence. and it is this the potential for that american consumers that americans in general american system in general gave it the best possible to do in this war but on the other hand is a warrant it. then you know the solutions. all right isn't it. yeah remember back in the 1980 s. when a similar situation in japan japan was starting to leapfrog the u.s. a lot of ways and the u.s. came down very hard and this resulted in the plaza accord with there was a massive currency adjustment hadn't seen anything like that sense the brand woods agreement after world war 2 and now here we are china is kind of threatening us a gemini in the technology space and innovation and but instead of succumbing to

let's say a plaza chord beat down you know china is putting out tweets of people associated with china than the government putting out tweets laughing at boeing laughing at the ability of boeing's technological difficulties the cracks in the fuselage is exciting openly mocking the u.s. so this is quite a different approach now it comes to artificial intelligence you know there's an old saying that he who controls the gold makes the rules but it were entering the 21st century where it's really he who controls the telephony and the artificial intelligence is going to make the rules that's the 21st century and china's clearly leapfrogging ahead what you know and you recently you were talking about america's infrastructure as being incapable of supporting the middle class or the lower class you have people deaf acadian on the street you have an ability to pay off student loans you're creating a generation in america how are they going to compete with innovation overseas

trumps trade wars same to be the panacea attempting to write all these imbalances but he's even going after allies so the latest tariff slapped on mexico to force them to deal with the central american migration issue tell us about that does that make any sense he's using that issue as an economic issue he seems to be mixing everything. up in a grab bag of policies about a lot of. that's caught diplomatic sense your thoughts completely agree with you in that mexican paris is a lot a case of the weaponization of trade their dreams with dogged by the economics of trade with mexico united states for its large number of components for the future as sam was solo or probably ought to be in or to the united states transformed into iraq with woods and quite often it's for the rest of the law. no message use multiple problems in terms of trade. there is

a great article the united states in terms of trade it's also i would say great article the united states in terms of the ability a few months if you will with a drug free market for its muscle with you as you're looking at there what do you know the new does of the light that states when we get to a so the issue here is that the jury pools it is. always full objectives and in that kind of the environment it's weird if you see how china can stand while to be the work you most states is doing and it's also very hard to see the united states can sustain its economic model bone for so on to france where the great issues with mexico are really the very elusive that it was one of those is what happens when you bones that it's only a major 3 to part with the supply chains been intermingle the extent that u.s. mix of supply chains and very same issue to rises with china what happens is that in the long run american manufacturers are going to bring jobs in america they can

offshore jobs that appian offshore to say for example channel mexico somewhere else and that's a higher cost location although it's because we're already in an optimal location gens of your cost or manufacture and we're watching some says and then you are those 2nd best location which is a hot box that cost has been passed on to the american consumers but crucial the american producers of becoming less competitive as a result. and that's what you choose one to war in mom's you we direct inbox in terms of the fire crisis but we will that's what the doubts on the hop in the long run in all schools will be any russians who need to compensate for example for the time to balance in terms of the chinese are in world war 3. why is it so because in watching the united states most popular say for example jaunts like opera is offshore in there or production launch i don't see vietnam in florida have costs

but the vietnamese for the action is owned by these chains investors so in other words you are still paying china well the production but you know how bean plant cost to china yeah i get it so you know it's a game of ever decreasing returns or a reminds me of the crisis happening in the global garbage market and i don't know none of these countries are taking america's garbage anymore that's offloading back to america right so that's ok that's why we have l.a. and we have someone says that we just dump it there right excellent point let me ask you about this we've got a situation right now one number sometimes can cut through a lot of a quarter tell us about one number and how it relates to all this the number would be a household formation constantine well a household court formation in the united states as follow and even more so it's falling on the demographic lines so in other words younger households that used to be formed in their late twenty's early thirty's and now formed in their early

forty's and late forty's so as a result of that is that he just an imperative germs of the numbers look at americans under the age of want to sidon still with their parents it's used and compared with equal the interests of the shoot if i prefer watching them is probably far as for us in either the jews the or the 4 seventh's will stay around 40 percent they did in the united states it used to be about 10 percent while it is . or for the same. reason that mom or what they call in italy they call the mama problem want to be where you can no longer for movement because then while longer can afford movement their social mobility is declining in the future they cannot as. much as the halls and their interests in terms of their development that reduces available they therefore stay in their communities where they really don't have much of a future in terms of their career progression and

a very developed on their mones. loans and so forth it has a knock on effect within the plants across the our life cycle of the possible so yes. when you take out for example that there additional logic possible families the months the migrants in the united states will look at that we want them a profit if the marks it's you know who was born households the number of children is the line in terms of in those households. the age at which families start and have children and so forth is also a rise and as a result of that the relative education bond or this probably quality software was that that the. children were at the parents of the student loans were on the rise this is one of the major wellman blocks of the idea of the cycles that nation but that also meets and we saw all this is though it straight causes for divestment

votes weaponization of the us dollar and the us it's far on the policies. because in the nation in the united states means enter into the plea and intimately linked . in or from the fact that from all around the world the largest are those in the war the likes of yams or this will all rely on mark national work force working not just in the united states. also outside of the united states an artwork form in terms of research and while we're in that way that's the reason the oscars and we have a live it's a. comment in the united states but also it will want the multinational open is appalled because most countries a sudden once the united states the image of united states in the united states opens its software local the as well as a result of huge cost what we need is also sloan so as out there i want to change and social mobility is changing water over that period is not growing as well so

that solution in the market anything else that will meet in the united states fast and more growth and where the unity of the people is known that angle it won't choose and that it won't. cost attain guardian has so i thought website as macro view dot edu thanks for being on the kaiser report thanks max my pleasure all right that's going to there for this admission of the kaiser report with me max kaiser and stacy harvard i think our gas cosseting macro view dot a you if you want to catch us on twitter it guys are important and i stand by yelp . because the swarm of them so i'm willing. to believe you are. one of

the for. much of those who heard it's a preview of the most you ever see him with the north we hope we go. with it to. show you look beautiful the comedian so it's been a lurker who the. whole club most of his goal so. if you're going to go go go. go go to shows look we're looking at the same you. if. you go. to. the middle of the most dates you look at is it. not a chance to just meet the mash truck up to present your complete control. over

your intentions to go to snorkel come up in new york because the rest of the girls are with you for this record just to. cook door for one was devoted to the. officer. told him to get up off the ground serve begin to tear him down. and then freeze on the sounds of panamanians you mean grown man like wrestling essentially. through his return. to push the away from the officer the joy out of his crib. the obviously did a kind of lunge for the web in one's midst and then when it happened on tree swung as the observations didn't hit him i never saw any contact between the deal any kind went back to where they were so the answer is back here there try again 15

feet apart at this point and that's when the officer pulled out his gun and he did it on 3. how can we help citizens become healthier and happier. full of the 7th of july as our european business program interactive exhibition open health congress oakum festival details don't have also been forum dot com 16 plus. a glimpse into wiki leaks founder julian assange his life in a highly security prison in london our video agency ruptly has obtained exclusive footage. also coming up on the show the international monetary fund that mitt's mistakes were made when trying to resuscitate argentina's economy saying it failed to tackle the country's key underlying troubles arteaga was deep into the decades

of errors made by the i am.