named the linen gang i think it went to the very very top i think it is close crossed the water where politicians knew what was going on and give the go ahead. strugar this is the kaiser reported hour of what is or is argentina so many head of . this country for can rock stars yes we're going to talk about some of the opportunities that have been taken over the last few months or years and you know

it fits into this theme that we've covered over the past few years which is that as soon as the u.s. used the u.s. dollar and in particular swift as a financial weapon alternatives emerged and thus said in the end of the power of empire this is happened throughout history hubris often sinks an empire when they become a bully and so we're going to look at what a story about china china working with a dutch company by the way here this is when the u.s. all those tariffs on agricultural goods and all sorts of goods that china retaliated by stopping all imports of sawrey being products and of course argentina is a big producer of that so they're china's pivoting and having to re develop and build infrastructure in countries that they want to do business with so here's a headline china wants to build a greens super highway and arjen tina here is the parana river is their main

waterway and it dumps out in to the ocean and here's your guy here's argentina is when osiris and china has stepped away from u.s. agriculture imports and said it would bid on a project that could create a greens 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 transport soybean and corn from the pompous. farm belt to the south atlantic they don't have david ricardo's 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 us 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 going to monetize the asset there 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 humoristic 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 it's 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 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 us at

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 it 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 for a problem. pronouncing it wrong and all our spanish viewers on our tea and espanol usually go alone or go look provolone in argentina most fry provolone. probably let the problem. 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 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 much different from brazil and the u.s. 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 u.s. dollars from china or un who knows but. another opportunity here and this is an interesting one that we've been covering in the u.s. and that's fracking and there's. this huge reserves found in patagonia and toto 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 domenic maryon 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. on a unit of natural gas american they doesn't matter that is 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 2 therefore natural gas isn't profitable and it is 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 you bring up a good point there yet it is an interest 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 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 the. when he came into power he deregulated the entire industry for airlines and basically they found themselves in the situation of offering free 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 the 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 data those audio nace the brainchild of the minister of transport for 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 $1.00 of saris so it's been wildly successful there is he 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 have started 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 get 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 what has happened is because the currency collapsed so fast all of their costs most. their costs are in either us 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 socially 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'm going to fulfill the repeated purposes oh politics to the people i promise to be you know we it's all bots to. be a. pretty.

pretty good group. now you want to 1st correct that. you know. all 5 the. big. i had a spiritual experience. and i had the little girl that died in the fire sent their columns. say 5 of their soldiers that. were looking for a kenny reaching. 54 years old spent 21 years on good role model. of a crime i didn't commit. i only stupidity was sent to the red to blue flu symptoms

nobody would listen. to. the trial was pretty much a farce the fiar have been guilty before the trial. no you nobody. not. that's. not the people you will permit. true true to me there is room for driven home so. something. i knew she was there and i knew exactly what i was doing. people a lot. of the time it was annoying nation.

welcome back to the kaiser report imax guys are time now to turn to dr frederick i asked who is building the justice system of the future he's also a lecturer at coursera singularity university and others welcome thank you once 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 big coin or how does the arch for fit into the entrepreneurial argentinian ecosystem what actually you are and you know so many problems from the boss with currencies you know by the governance that you know media 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 cryptocurrency to come like said to do to

approach 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 such a big. community or for you but apart from the currency 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 some 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 of this more globally these days you die so imagine you have a. contract with 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 did the brokers with the lever and they're 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 technology and of discomfort is claris right and so these are spark contracts smart contracts yeah right and this is what we were told a theory i'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 it's built 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 that's 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 comes down and credibly down to almost a gig economy levels where people are just putting up a few paces surreally 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 don't use the least so this house does not to be very like obscure process you never know how to process works so imagine having a new trial jury decide which tokens should be accepted and been exchanged like so this can have the possibility of removing the com from the truth or ecosystem so i'm this is something that is said for your data so is the community you should know gee to get rid of the scammers and to only allow the tokens to have to be listed so this is where you are for 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 it's not for criminals but you know for end of commercial disputes on corporate disputes this can provide much faster and much simpler it is better solution process if you are running a business in the mainstream world for good crypto and you have to find disputes 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 so the smart contract it's there all synchronized right so their payment and the delivery of the item are the services synchronise you get paid with the delivery almost and it's all in escrow and so you really get rid of a major deterrent for scaling a business which would be accounts receivables. imagine for example you are in the us or whatever and you are thinking of hiring some argentinian developer so but ok you don't know if this if they 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 rule of law to service that you get this dishearten do 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 at jurisdiction to resolve the differences are illegal

dishes and so your country or my country here is 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 real major social media platforms like twitter or facebook having power to deep platform and silence voices have 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 blah chain to try to make that fair and above political kind of

afoot as a political football make a fair. thing you mention this because facebook like what's facebook now it's become a common virtue of faith in some way write a thing that creates rules that in forces would have the army of more the writer who decide who is right about big disputes happening there and who has what information is going to be shown. or not so the fact that this mother writers are working a private sitting behind closed doors so you need some kind of new trial or a jury if 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 i watch 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 like a leg more blog chain 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 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 argentina business people what they get wrong how i don't know i think that

one thing of argentina has a beginning so it's because he's trying to mississippi and so people have become a very used to like be to devote all the time they could be creative on how to look for solutions work then a symbol to be the solution so you know i think that the world is going to the embassy. for potential of this creativity that we have here and so. i think that that's undervalued from our right so you have this pull of culture and creativity and entrepreneurs and they're all in their heart and entrepreneurs because they've 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 on my country america to now and 176 you know we 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 then they like to steal stuff 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 to have a chance to work with them from a country of. great things for the world this would have been unthinkable like 10 years ago and before such an outcome of the was impossible so now with the book change we come to accept the world we can raise money abroad we can go to customers in the world we can base our youth every country so with these freaks through this experience so enables most of these are just incredible to become yet to go to the world now well you mention said she not come out of there so this is a bit coin so let me ask you a big client question so there is a big coin and then there's all the other all coins and now we're at

a pendulum has swung back to big coin maximalist and do you feel that that's a valid discussion to have in the big client community because it there's so many projects out there that are scams and. by focusing on the spit climax of all the sation maximalist it's a way to kind of weed out and filter out all the noise and the scams or do you feel that. you know just let the market decide i think in the end it's ok what protest no chance of going to really prove that can be justified so it's come from our conference enable the rule of law for the world for what. doesn't depend on the country where you were born or where you work so i think this market with sort out what are the solutions that look 10 come provide smart contracts and we'll see there's something fair enough thanks for being on the cause or part i know

having me and us going to do it for this edition of the kaiser report was famous for a station or it like to thank our guest frederick i asked you to catch us on twitter guys are part intellect.

moscow slammed washington think sions on russia's nordstrom tear gas pipeline to germany saying it's crossed a line against its nato allies that comes as berlin gives an angry reaction as well branding the sanctions interference and domestic affairs. also this hour a u.s. court ruled that american spy agencies can collect data on citizens without a warrant if done by accident as the lessons of the national security agency whistleblower edward snowden lifted the lid on u.s. mass surveillance seem to have been forgotten. you tell us who edward snowden is you know wait a 2nd snowden is not the. not to brooks that guy know that he.