after the crash of 1900 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 of us accept 2nd class citizens or even the global economy or they make some kind of dramatic move the us 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 member 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 secure. 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 it's 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 fear that the presence of suitcase atomic

weapons you know what havoc that could bring and meanwhile we actually have this suitcase portable all 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 the 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 spread 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're 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 attorney blew so it's now 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 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 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 a 956 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 saving enough chances on 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 a this earlier this week or last weekend. people were cut off from their nest their control system so they're boiling and 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 back door and 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 leaked eternal blue is one of the most useful exploits in the n.s.a. cyber arsenal according to the 3 former n.s.a. operations spoke on the condition of anonymity analyst 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 tool 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 we find a critical flaw in the software used widely around the world like microsoft that you're supposed to tell that to 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 at this nightmare of the 1st half about the end because we're going to the 2nd half of all beautiful and shangri-la like with a brilliant constitution who's like a frickin genius don't go away stay right there more to come. nobody could see coming that confession this would be that profile in the small place the full search. and the interior geisha out there what you'll see is probably strip probably strip while i like the process of the turkish was designed to put people in just that frame of mind make the most comfortable make them want

to get out and don't take no for an answer don't accept the. she said their forward . sad statement that i will be all about that the next day there's a culture of odd accountability and police officers know that they can engage in misconduct that has nothing to do with all their cries. and greed has long positioned itself as a sovereign player within the e.u. it can stand up to brussels put its foot delane when it comes to its own national interests but when it comes to dealing with the trumpet ministration is the government just as ready to put hungary 1st. paradise with some ground turned into

a round the experimentation field for agricultural chemicals we know that these chemicals have consequences they are major irritants there's no question otherwise why would the chemical company workers themselves be geared up and suited up locals attempt to combat the on regulated experiments that often in day you have many of these people who have one foot into the biotech pharma and the other foot in the government regulatory bodies this kind of collusion is reprehensible while the battle goes on the chemicals continue to poison hawaii and its people so one has to ask the question whether there is a form of environmental research going on in hawaii whether these companies feel they can get away with this because the people have less political power. when the whole may just manufacture consent instant to the public wells. when the

room in clusters how to protect themselves. when the final merry go round certainly the one that. we can all middle of the room signal is. really. being real and you really play.

oh. please. it's. just so.

very warm welcome to you watching us in such. welcome back to the kaiser report imax keyser scott about to go to part 2 of our conversation with cosseting concertino welcome back it's matt's so cause attain a par one we are talking 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 my understanding news there is an issue of the supply of art where from go quietly which is question in terms of its but then shal ecuador's and oxygen and security apparatus in china. are where actual data flowing through the system where the specials the. communications the sun's on it seems to me that that is an issue just that it is sensitive 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 form by all of 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 room barking or it globally is one of the most one 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 we have shown that there is ousts them it resists the lower on the status of events in private sector. changes around the wall both stock exchanges where the companies that appeal in fact the buy the box and these they also beyond that so in other words if you ship 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 is the bodies of the states wells of the world in which grade is beneficial change both the actual property of software and hardware people for the development of the future network systems the communications networks in the united states on 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 was a blow to the multinational corporations such facilities are on the new 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 wave. in all its it isn't

a mix in cybersecurity it isn't one for me it's in moscow security issues i'm also after find some. deal with it was out nixon and the ideas of jail for the confrontations and before. that. in the boss diplomacy of junk development or investment and so forth operative solutions believe in the wall the forklifts of solutions are all even in the wall what we call them games the game of chicken or if you want to get all they have on the fishing in the back of the wall it's very difficult remodel the result all the way. in the communication systems of the united states. radical right across the board where it was disrupting the supply chain systems it was dishonest in the system. 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 that 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 accord 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 defra catering 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 seem 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 parents is a lot a case of the weaponization of trade their dreams were bought by the economics of trade with mexico united states imports a large number of aunts or if you just sample the solo or problem you are to be in or to the united states transformed into iraq with words and quite often it's for the rest of the law. no message use multiple problems in terms of straight. there is a great article the united states in terms of faith 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 the other side is so the

issue here is that the tree pulls it is. always full objectives and in that kind of winning byron 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 how the united states can sustain its economic model going forward so on to france where the great issues with mexico are really very elusive was one of those is what happens when you bones that it's only a major trading partner with the supply chains being intermingled the extent that u.s. mix of supply chains and really what's a semi shooting rises with china what happens is that in the long run american manufacturers are going to bring jobs in america they to offshore jobs that appian offshore to say for example channel nets if it was somewhere else and that's a higher cost location on us because we're already in an optimal location gens of your cost or manufacturing what 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 want the war in mom's you the direct inbox in terms of the fire crisis but we will that's what the balance of want to happen in the long run in all schools will be any russians who need to compensate for example for the time to ballance in terms of the chinese are in world war 3. wise it's 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 haue beene plant costs to china yeah i get it so you know it's

a game of ever decreasing returns error and reminds me of the crisis happening in the global garbage market now no 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 clutter 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 is followed 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 that 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 do sargon still with their parents it's used and

compared with equal chance that the should be a 5 proportional it's probably possible yes the middle ages 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 a mama on the bonhomie where you can no longer for a movie because then longer than a 4 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 with the promise across the bar lifecycle of the possible so yes . when you take out for example the additional logic possible families

the months the migrants in the united states will look at the want them across its 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 wallet average asian bond or this probably quality software was that. those 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 also it's really. all this is though it straight causes boards investment funds what weaponization of the us dollar and the us are 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 mock national work force work and not just the united states. also outside of the united states important work. in terms of research and while we're in that with that reason the oscars and we had limits of. the united states but also it will want the multinational open is appalled because most countries a sudden once the united states the united states and the united states opens its software locally as well as a result of huge costs what we need is also sloan so as out there i want to change and social mobility is changing over that period is not growing as well so a good solution in the market any thoughts on meet me at space crowds and more growth and where the unity of the people is known that angle it won't choose

and then it won't. cost of. that 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 herbert like to thank our gas cosseting macro view dot a you if you want to catch us on twitter it guys are important and i stand by. the swarms of them so i'm only. good viewers who are quotable for. much of those who heard it's a preview of the most moving. north. but

it. sure didn't look beautiful the media collector who the. mole most of his goals the. good you've gone for good good good. good good issue also look look you're the same you want to kiss walk the store move to the issue go. the stoats to. get to meet until it was the little the most they'd say look it is it's. your stash not just to mr sneed it's the mashed old truck to stop the president and please introduce more to constituents. as we have petitions to go in this world to snap them up a new of those of us the girls are with you sir your supporters to your shoes through sure sure mr you should cook door for one who's do you do the.

what politicians do something. they put themselves on the line and they get accepted or rejected. so when you want to be president. or something or want to. have to go right to be cross as a white woman for 3 in the morning can't be good but i'm interested always in the waters in the house. that's it. you know toga 2017 the german newspaper developed published an article claiming that the european union for the last 30000000000 euros as a result of its very anti russian sanctions.

particularly affected eastern europe many polish farmers went broke and even committed suicide. sometimes i can't. get a moment. on the political right on the. on the young to. just. kind of. doesn't in the. in the polling. on the. iraq.

iran her. a glimpse into wiki leaks founder julian assange has a life in a high security prison in london our video agency ruptly has obtained exclusive footage. the international monetary fund admits mistakes were made when trying to resuscitate argentina's economy saying it failed to tackle the country's underlying problems r t delves into the decades of errors made by the i.m.f. . and the new york times backtracks on its reporting on the poisoning case in the

u.k. for almost 2 months the paper failed.