away from u.s. agriculture imports and said it would bid on a project that could create a green's superhighway and argentina reported reuters chinese state owned construction company c c c c is readying a bid that would allow it to dredge argentina's parana river the country's only river access or waterway for bulk vessels that transports soybean and corn from the pompous farm belt to the south atlantic you know david ricardo who is the contemporary about of talked about comparative advantage and here a comparative advantage speaking if this river which would run through the grain belt and give argentina away to transport grain and give them a leg up over brazil and the u.s. that has to spend a lot of money moving the grain of the culture to the to railtrack or whatever and so this is a member could be a game changer the british of the industrial revolution do the canal system they gave them the ability to move stuff around enter into england waterways so this

could be a huge game changer it is just like the yes it is there china sees the they're going to monetize the asset they're stepping away from the u.s. the u.s. and america are in this the u.s. and china are in a trade war and so china is like ok we don't we don't need to look that way we can go to argentina you know we can we can do the new silk road with russia so the u.s. is not thinking it's not unique to the u.s. and it looks like we might pick on the u.s. but the fact is every single empire has made the same exact mistakes for the same exact reasons they become bullies they become hubris stick and they're used to getting their way and they don't like disobedience and the further away from the empire you are from the center the more disobedient they tend to be and then it costs a lot of money to send resources there and an armed forces and i think we have a big military base just over the border in paraguay i you know it takes cost a lot and it costs a lot to control it to keep them from making their own deals like. china also for

its own part obviously it is a rising power and we're not saying whether or not it's a good power a bad power but what the fact is that it is a power and it is quite clever and its it goes around it goes to those edges of the empire to do the deals 1st because it doesn't want to provoke the us directly it's trying to avoid that until the last possible moment all markets create prices and all prices are a signal that that signal is either right or wrong and it doesn't mean it's one political system or another political system it's just a number it's a signal generated by a market and markets have always been with us because people have always wanted to trade from the beginning of people and they always will want to trade the nation state is just a construct that will came recently and will probably disappear monarchies come and go but trading has always been with a price signals of always been with us all we do is tell you what the signals tell the truth the signal is the truth the price is the only truth in any news you're ever going to read the price is the only bit of truth that's it everything else is

conjecture by 2021 there will be a decision on this so right now is conjecture whether or not china will get this deal to dredge. pronto river or why would you be able river parana river trying to encourage people to go bathe in the winter it was full of problem. pronouncing it wrong and all our spanish viewers on r.t. and espanol should. go there look provolone argentina nice try provolone. provolone. you know 62 percent of the population of argentina is descended in some way from italians taste it tastes so fantastic so marvelous just to point out again how it will give it an advantage over the us in brazil the other 2 big agricultural producers in this hemisphere dredging par now will give argentina a significant advantage over its competitors this means farmers in argentina's farm belt can directly load their products on to ball carriers this is a. much different from brazil and the us you have to transport products by

a truck or rail over an extended distance to the nearest port and then of course the cheap peso is great for exports and they receive a lot of hard currency us dollars from china or un who knows but. another opportunity here and this is an interesting one that we've been covering in the us and that's fracking and there's this huge reserves found in patagonia and total which is the french company is the 2nd largest producer here but this is an interesting data they have here total shale oil for growth in argentina unconcern of low gas prices total the 2nd largest producer of natural gas in argentina plans to focus on its oil assets there are concerns that an oversupply of gas could drive prices to unprofitable levels this is the more shale reserves in patagonia and they said there's huge potential to find gas natural

gas in these shell reserves but the head of total in argentina he says we want to see at what level the prices will stabilize we have seen in the united states that gas can go to a negative price we want to wait to see what the price of gas will be in argentina because it could fall to negative prices and that's don't we mary on the shell catastrophe in america and elsewhere as proven itself to be a disaster in argentina could be dodging a bullet here because all they have to do is look at what happened to the u.s. or in great britain to understand that shale of course is negative prices it's always negative prices because the amount of energy it takes to do shell is greater than the energy you get out it's negative energy and it's also the amount of cash that you need to do. fracking is greater than what you get out it's always cash flow negative from day one it's energy they get it from day one it's a negative don't argentina don't. do shell avoid this catastrophe just forget about

it it's a loser it's dead on arrival forget it don't do it you can argue with them all you want but the fact is they cannot print dollars and you see that on the ground here that is the problem they have a currency crisis because they cannot print dollars america can print dollars so it can go they could lose $30.00 a unit of natural gas american they doesn't matter they could keep on producing this is the raw information this is total saying well in argentina we actually have to sell it we have to actually make a profit so therefore natural gas isn't profitable and it's a it's a weird situation because here technology and there were and are great technological advances in the shale oil and natural gas production it's been an amazing technological advancement but it's a stand off because it is so easy and they are fast to ramp up compared to traditional oil and natural gas production but you bring up

a good point there yeah it is an interest this has to be included in this understanding of shell is that it's a money loser from day one but it doesn't matter in the u.s. because all the creditors who lend money into the shell industry are constantly being bailed out by the central bank that prints money that's why they do it for the fees it's great for the banks but it's not an energy play it's not a business it's a sinkhole but here as you point out in argentina so they can't just print their way out of a losing situation and the economy is already a bit fragile you don't want to add another loser into the mix like shale drilling do avoid it completely this is part of that situation of what price like there's plenty of natural gas and and shale oil and things like that but at what price not at the price that people are willing to pay so therefore we have a total gridlock around the around the world i mean it's a weird situation where the price they can't find an equilibrium because. everybody

and their mom can start drilling very quickly as soon as the price goes to a little bit profitable and then everybody starts drilling for some natural gas and then the price collapses again so it is very extremely volatile another situation where we have and this was an interesting story that i saw this was from the summer and this is wall street dot com and they were talking about the airline situation here because machree when he came into power he deregulated the entire industry for airlines and basically they've found themselves in a situation of offering flights they're out there trying to compete with each other because there was just one national airline now there's like 6 or 7 here operating and they're having to give away free flights they're losing money on every seat but hoping to make it up on volume airline fiasco in argentina as peso collapses a new plan goes awry on the 27th of december 26th seen the federal government of argentina under a new president c.e.o. machree launched the revolution. the brainchild of the minister of transport gamma

dietrich an ambitious plan aimed at overhauling the stagnant airline industry in argentina while often called deregulation it was actually a far reaching and ambitious plan supported by annual expenditures of about $1500000000.00 by the federal government and the airline sector over the 2017 to 2025 timeframe including modernization of many argentine airports and construction of the 1st airport wholly dedicated to low cost airlines poem are near one of stories so it's been wildly successful there is he huge like double digit increase in passenger numbers internally but many of these airlines will go over some of the details in a bit but they've been losing a massive amounts of money well that's a typical transition period all over the world countries go from their national airlines to these you know highly competitive rate airlines yes and there's a lot of blood in the streets that's called free market capitalism i mean there's nothing to worry about here this is normal the entrepreneurs and start of these airlines are going to go bankrupt they love to go bankrupt they love misery they love to fail. because it's

a badge of honor let them fail to entrepreneurs let them fail that's called free market capitalism and build the build the airports build the runways build the infrastructure that's your job let the executives at the airlines or the shareholders take the losses they don't care about the shareholders they take the risk they going to lose weight that's it that's why they're shareholders that's what that's what that's what it's all about part of the problem with what has happened is because the currency collapse so fast all of their costs most of their costs are in either in u.s. dollars or euros so you know that they petrol for the plane that they get the fuel for the plane the training costs for the crew the leasing of the plane which is the number one cost so all of those costs suddenly doubled in the course of just a few weeks when they go bankrupt and all those people are going to have to get new jobs but it's a very fluid economy and there's a lot of different types of jobs out there and this is the way it works when you transition from a centrally planned economy to a free market economy is perfectly normal embrace change embrace the chaos be be the chaos you want to be when to take

a break when we come back much more coming your way. i had a spiritual experience. the little girl that died in the fire cynthia collins . we're looking for a preacher. 54 years old 21 years old good. didn't commit. to that he was in the sense. that nobody with this. close put much of for the sea org. adam golden for the wall. nobody.

caught. that. not at all you will learn it all. through through to me hasn't forgiven himself for something. i knew she was there and i know exactly what out is telling. people life. sometimes there's no explanation. and. one of the things that i started to realize is that the noise in my head as it me i started to practice. organizing my why you are wrong and what i wanted my life to be even when it conflicted with my internal annoyance so you know why are you i wrote

a book but in my head i'm not smart enough people like me don't write books. but what i held myself to it was the action and i started to notice that i could co-exist with it while still living a life that went beyond. welcome back to the kaiser report imax kaiser time now to turn to dr frederick i asked who is building the justice system of this future he's also a lecturer at coursera singularity university and others welcome thank you are great to see you this is intriguing stuff i can hardly wait to get into this before we discuss the justice system of the future that you were building let's briefly discuss the situation in buenos aires as an entrepreneur how difficult does the frequent currency crisis make for you or does it actually make it easier to pitch

bitcoin or how does the arch for fit into the entrepreneurial argentinian ecosystem well actually you are so many problems from the box with currencies you know by the governance that you know maybe a company here is hard but that's why you have crypto currency that can help you to do something we don't freak show we can pay somebody sweet group of currencies to come like said to broach people currencies if you want to do this with traditional banking and when i see them with very hard right because you have a couple controllers bongs they don't give you the money to because you are paid so that's why i think argentina hasa such a big. community or for developer for carnosine right so it seems to me like the argentinians have an extremely add gyal mind because there's a lot of aggression so there's a lot of languages a lot of different ways of doing things a lot of different backgrounds and it all comes together in this melting pot and

people come together there's a strong sense of community there's a resiliency here and they've all they've dealt with so many crises and it's kind of like a start up failing again and again and again but it makes as a badge of honor really you know you've come through the fire and you know you're in a good position i think that's why big quite adoption is skyrocketing here in argent . so let's talk about the justice system of the future what is it why is it will how is it so we are living in a world that's more global these days you die so imagine you have. gone through some guy who is in another country or for a website development project and there is a dispute as i so you know going to another country to what they might allow to court for like 100 dollars or $1000.00 so imagine if you could use a system that is based on block chain where you send the money into an escrow and then if there is a dispute with the contract or then there is a jury that's going to decide who's right they want to analyze the evidence like

the deed and the growth of what the neighbor and they are going to vote who is right and this is these folks are very important problem in today's a globalized economy so the name of this going to jihad of discomfort is clarence right and so these are spark contracts smart contracts yeah right and this is what we were told a fairy m. excel that there's also competition in that area from projects like cortana and. and these are smart contract type crypto blah change projects do you guys pick of those enterprises of those of those just projects which are better or do you are you. take any of them are any of them doing better than others you know so just builds on the serial because this time we started it was the largest. this mcclintock that form bought so there's no you can work in any other so because the thing is that what we need for this to work correctly is that there are siemens i

mean at the in the in agreement with the contract so no one can damper with the jury selection on no one can tamper with the evidence so it's a new theory about could potentially working in the older books right ok immutability s.k. and so these contracts of global contracts is a global world out there are people doing business all over the world and to have that kind of internet. well exposure is quite expensive for the average person but with a lot jane the cost them down incredibly down to almost a gig economy levels where people are just putting up a few paces australia and they can engineer a smart contracting and launch a global business what give us an example of how this is working so for example this is working now on this moment for token disputes you know how did exchanges that have to do this docus and decide which still has to list so this costs but it's really been a very like obscure process never know how to process works so imagine having

a neutral jury decide which tokens should be accepted into an exchange like so this can have the possibility of removing the comp from the couteau ecosystem so i'm this is something that he's said for a few days or so this is the community you should know gene to get rid of the scammers and to only allow the tokens to have to be listed so this is where you're suffering a nation right is it going to jump out of the crypto world into the other non trip to world i mean you know you talk about juries and jury selection is something that is extremely arduous it's time consuming is there a way to streamline that process and put on the block chain speed up justice absolutely so good it's not intended to eg replace traditional justice systems which are like more complex itself or criminal but you know for end of commercial disputes on corporate disputes this can provide a much faster and much simpler it is better solution process if you're running a business in the mainstream world for good crypto and you have to spend this too

it's a new don't want to go to war for years if you could have a private system which already exists but doesn't like the next faster and cheaper so that's that's what the what we're missing right so typically and business as a start ups there's a there's always a lag time you know you send out the invoice and then you know you wait for the money to come in and. a lot of times businesses don't grow fast enough and that they get behind and this is a major problem and a growing a business over the smart contract it's their all synchronized right so their payment and the delivery of the item or the services synchronise you get paid with the delivery almost it's all in escrow and so you really get rid of a major deterrent for scaling a business which would be accounts receivables but imagine for example you are in the u.s. or whatever and you are thinking of hiring some argentinian developer so but ok you

don't know if this if there were kids does is not good enough so i'm not going to court in argentina is complex and so there are so smart contracts if you like this type of if you want to flow out of service but you get this descent into that ok if there is no compliance with the rules of what was agreed so there is a way to solve this so this is some very important infrastructure for the world economy right because usually people when they get in the business and they do dales they have to decide a jurisdiction to resolve the differences are i think oh this is a it's a your country or my country here it's on the block chain and you already know ahead of time what is going to be the outcome and how are you going to resolve these these problems and so this is let me ask you this the many who are against the really the major social media platforms like twitter or facebook having power to deep platform and silence voices i suggested a centralized decentralized jury system to perform this function ok so. you have

a situation now where politicians have a lot of power for example america there's this what's called the russia gate hoax and they they and they they buy into this idea that there was interference even though there's no evidence to that but the major platforms like twitter and facebook have been bullied to respond can your product and your service. put that genie cation onto a blah chain to try to make that fair and above political kind of a foot as a political football make a fair. it's a good thing you mention this because facebook like what's facebook now it's become icon virtuous faith in some way write a thing that creates rules that enforces for the how to army of more the writer who decide who is right about that disputes happening there and who has what information is going to be shown or not so the fact that these smaller writers are working a private sitting behind closed doors so you need some kind of new trial or a jury you want to decide and transparent and transparent as

a blotch and offers transparency exactly right now you just you just have a black box just facebook makes a decision somebody gets the platform and they're not sure exactly why and so this would add transparent say and. remove another layer to the well let me ask about argentina some more what what what alex what businesses are needed on the ground from entrepreneurs right now software technology like if you could get one sector crypto block chain what would really give the entrepreneurs in argentina a big boost right now what what's needed i think what's needed is that i could leg more blood change you know. the country already has this very big community been working on building for new shows for the war because the good thing this being a startup in argentina in the book industry enables you to do it for the world before it used to be ok yards working under the ok you do something for the regional market and if you're lucky you get to brussels now you get broad ject

building things from the world creating the future of technology of civic technology right and so i think that what's new here is like for 1st the government doesn't interfere with all these like led to this effect on the sympathy of the usa . so governors would find a way and they would be stuffed what's what is one thing that people misunderstand about our. jaina business people what they get wrong how i don't know i think that one thing of argentina you see the beginning so it's because he's trying to finish the city so people have become a very used to like be the people at the lead time to be creative on how to look for solutions were the symbol to be the solution so you know i think that the world is going to india embark see this super potential of this creativity that we have here and so. i think that that's undervalued from our right you have this pull of

culture and creativity and entrepreneurs and their o. and their heart and entrepreneurs because they had to live in a very volatile situation and now they just need a path to a global market and that path is being obstructed by political machinations certainly up my country america to now and i think 76 and there was a coup here we screwed everything up you know because america likes to make everyone in debt they like to make everyone in debt and they like to steal stuff that so now we get it at a point where argentina can escape the american empire of debt maybe with crypto currency look at me like i am in deeper here they have a chance to work with them from a country is. a great thing for the world this would have been unthinkable like 10 years ago i mean for such an outcome of the was impossible so now with the look change we can accept the world we can raise money abroad we can go to customers in

the world we can base our youth every country so it's these freaks through this experience so enables those of argentina credited to become yet to go to the world how well you mentioned to knock him out of there so this is a big coin so let me ask you to call a question so there's a big coin and then there. all the other all coins and now we're at a pendulum has swung back to big coin maximalist and it's do you feel that that's a valid discussion to have in the big community because it is so many projects out there that are scams and. by by focusing on this bitcoin maximal ization maximalist it's a way to kind of weed out filter out all the noise and the scams or do you feel that. you know just let the market decide. i think

a bit in the end it's ok what protests no chance on going to really prove to be just for a fight so scum from our conflicts enable the rule of law for the world for what i were to follow doesn't depend on the country where you were born or where you work so i think this market with sort out what i was watching for no change can provide my contract with the 3rd thing fair enough thanks for being on the kaiser report i don't have any and that's going to do it for this edition of the kaiser report with me max keiser and station herbert like to thank our guest frederick i asked you to catch us on twitter it's guys report until next time. and we're going to fulfill the promises possibly to the people from our. war but it's. really really.

pretty clear. that you want to work. no. all. the world is driven by a dream shaped by. the

day or thinks. we dare to ask. during the great depression which old must remember there was most of my family were unemployed or. otherwise and it was bed much worse objective listen today but there was an expectation that things were going to get better. there was a real sense of hopefulness there isn't today today's america was shaped by the 10 principles of concentration of wealth and power. reduced democracy at tax so low down engineer elections manufacture consent and other principles

according to no on. one set of rules for the rich. that's what happens when you put her into the. narrows sector of will switch will is dedicated to increasing power for chills just as you'd expect one of the most influential intellectuals of our time speaks about. the modern civilization of america. i. face. if. i.

cut. short of completion russia's north stream save gas pipelines europe faces yet another hurdle in trying to pull a response to a new us sanctions. remind us that it's ok for american spy agencies to collect from citizens with if done by accident the lessons of the n.s.a. whistleblower edward snowden lifted the lid on u.s. mass surveillance c. already. you tell us who edward snowden. is not the. guy. some information. on the man accused of stealing.