fears of a health care collapse hospital workers in france protest swindling resources in the fight against cope with 19. 6 years after the m 817 plane tragedy russia steps away from talks with the netherlands and australia claiming neither wants to establish the facts. and the decades old conflict bursts back into life in a go in a car or a box car to seize 1st hand the damage of war between our mania and azerbaijan since hostilities resume to late september. day across some of our exclusive

coverage of the conflict by going to our t.v. dot com my colleague harvey will be picking up the latest news in about an hour's time on behalf of everyone here at r.t. international thanks for watching. hi i'm max keiser this is the kaiser report have you ever played high and low poker that's when the low head and the high hand when so we've got a situation in the global economy right now where in the currency markets various countries are trying to win with the worst possible hand let's see how this works out they see her rights we have in the news we have a lot of gold we have a lot of big queen and of course in the past week we've seen the excel or of this central bank digital currency unrolling across the world 1st i hope powell says

that the endless ongoing desire for east trading block to undertake more and more stimulus is why big quiet and gold will continue to outperform vs all currencies over time but only because it has outperformed the g 4 central bank balance sheet and he was referring to walter bloomberg tweet that said top official signals e.c.b. would allow inflation to overshoot e.c.b. to pursue inflation target as aggressively as fed e.c.b. as lean says e.c.b. as lane says next phase of euro zone recovery will be tougher but right so in this high low poker game so the forex market the paper money pushers the foreign currencies they're all trying to quote stoke inflation but we know that's false they're trying to debase the currency to boost exports at the expense of everybody else at the poker table the geopolitical game and so the question is who will have the worst currency going forward the u.s.

dollars the world reserve currency so they've got extra conditions to playing the game on the other hand behind him a winning hand on the high side would be go gold silver and decline so in last year a country that can make money by the. basing your currency by getting kickbacks from wall street who packages all those currencies in the form of negative rate interest rate bonds then you only have one choice you can only try to win the hand with the high hand gold so over a big coin you can't win playing the low hand unless you're a sovereign state or a major investment bank and that's the that's the game today of course if you have the low hand i.e. the worst currency that can help if you have manufacturing only germany and china have any manufacturing germany does have excessively low currency which is the euro especially when you compare it to the deutsche mark because that's what they would have been had they not conned everybody for have not only say that the see the

greek crisis of 2008 in that context it was germany wanting to keep the euro cheap by having greece go bankrupt and now spain and italy as well to boost their exports so they were actually huge beneficiary of euro devaluation had they been a stand alone economy the country writes of mark don't you market about a lot higher and that would have been a net negative right so let's turn to what china's doing because china's you know there is a race between the west and china to issue their digital currency 1st so this week china starts dispersing some prize airdrop free money to some people chinese central bank to give away 10000000 in digital currency and 1st public trial of new payment system china's central bank will issue 10000000 yuan which is 2000000 u.s. dollars of digital currency to $50000.00 randomly selected consumers and what some

see as the country's 1st public test of the digital yuan payment system right so people who've been watching kaiser report for years know about bitcoin they know about gold coins they know about crypto they know about watching so china is borrowing from the block. community by creating a presumably crypto coin and this coin will be airdropped into wallets held directly by consumers of course china is totally wired with apps that serve as wallets and payment systems right now so this should be a pretty seamless move on the part of the government to airdrop these digital one into the digital wallets of consumers how does this relate to because it's no threat to bedtime because it's a highly centralized digital currency that is really a lot closer to any other fear out money out there it's a fear it's a fear of money by comparison you can't compare it to because because pure crypto so it doesn't compete with big point doesn't compete with gold but it does give

them a leg up in the race in this high low poker tournament to have a deep base but are their currency and that's what it's all about it's not really competing with bitcoin declines on its own and it's never going to be competed against vladimir putin of course said that in 2018 oh we're going to get to that in a moment but remember this all is in the context of what started in 2008 the white paper was the big point white paper was published on october 31st 2008 this was in the midst of a global financial crisis just beginning just getting underway at that time banks were collapsing and central banks 1st started doing quantitative easing you know the western banks japan had already started it a few years ago and so in 2008 in december of 2008 the central bank started printing money so big queen emerged since that here that same the end of empire the shift in change the collapse of global debt that just got too much you know there is a sense of

a global currency war going on that's part of this trade war part of the hot war with china and i think china was 1st that in 2008 to realise it was all over a member medvedev at that time held up a gold coin well china what they did is they leased the credit spigots because i think they really. this whole fear was inevitably over so why not just load up on a whole bunch of debt and build these high speed rails everywhere build a small nuclear reactors build all sorts of infrastructure when that's all going to go to 0 this is a fascinating concept so you're saying similar to an idea that was floated around on the web not too long ago as hey i'm going to my credit card i'm loaded up buying . and then when i default to my credit card i don't care because i have it all in and confiscated all because they're saying china's kind of using this strategy they realize if you have money game was going to end so they borrowed incredibly and built infrastructure and they plan to default it's a game of chess and they saw america was doing the same because we were borrow and

borrow and borrowing nobody had a job nobody was producing or manufacturing or creating wealth and they it dawned on them that we they were sending all their hard labor to america and getting paper debt in return so they thought well why don't we do that if this was going to end and that's what 2008 when lehman brothers collapsed i think they thought i think the us empire will let this thing fall because they let lehman fall so that digital is the latest chapter in this whole process you're describing yes it's a global currency war it's been going on since 2000 and they don't global debt war is well and you know geo political war who is controlling the future and you know i don't think it's an accident that the u.s. federal reserve also last week was announcing its digital currency plan so there is genuinely a race on to issue these domestic cryptocurrency right now simon dixon our friend over there bank of the future would tell us that in his analysis the big difference is that money is all debt based and these digital currencies are socially not debt

based they're just issuing them into wallets and it's thought backed by debt per se so that's a fundamental change in the way the global economy might work going forward. and i think that's something to watch so you know they're air dropping this these digital yuan and then on friday of last week a group of 7 major central banks including the u.s. federal reserve set out how a digital currency might look in a bid to catch up with china's trailblazing and leapfrog private projects like facebook's stable coin i mean in a way especially in the u.s. the the the the payments rails are really antiquated it's amazing even coming from europe and i can't imagine what it's like and asia how much more advanced but it's coming from europe back here it's like slow and like you're out an old western guy they send pony express to bring them you know it's a mirror to check for much book but it's. $4.37 c.

and siri in this line and i you write it's really from 20th century mid 20th century you know the central bank is partly doing that they want to advance their instant payments that is available for everywhere else in the world except the united states the private banks never bothered to come up with their own system because they make money having you know the system takes a long 3 to 5 days so they use your money and gamble with it and make a you know a little spread so you know what these crypto currency is however i want to remind people that in 28 team it only emerged recently but lattimer putin was asked about doing one of these central bank crypto currencies he was asked by a young in a video blogger what he planned to do for russia what would russia get their own crypto currency and paul had tweeted if this video is real it highlights just how

well understood big queen is by the world's most powerful people the next reserve currency won't be controlled by a nation state had said russia having its own crypto currency is impossible it is impossible for any other countries to have their own crypto currency because if we are talking about. cryptocurrency it is something beyond national borders right here a standstill exactly what's going on here so this is a crypto currency so the chinese currency is not like that coin as a complete digital current additional currency and to get back to simon dixon point about what this means to the global markets it means that the governments are getting ready to allow banks to fail because the koreans and his theory if you're account is full of these digital currencies that are backed by the government and if the bank fails your deposits are guaranteed because they're in that wallet so this could be a major contentious moment between banks and governments well during every global depression you have alternative currencies pop up local currencies this is

essentially local currencies are coming up with because the banks don't want to lend banks create private banks create money by lending to small businesses medium sized enterprises and people but they don't want to lend to anybody so they they are the government basically has to circumvent the banks and go directly to the people with you know as simon dixon would point out it's not debt it's actual money so we could also see the inflation they're hoping for right and it really an interesting set up for a contentious almost battle between these banks that won't lend you see that the velocity of money a velocity chart that subzero and they and dixon said he would expect these bankers to be on the street begging and being activist and being like the woke generation jamie dimon will be on the street with a hat get i'm begging for money because the government cut him off yeah the velocity of money is so slow because all of the wealth is hoarded just than $50.00

americans own as much wealth as $165.00 american 160 $5000000.00 americans so if they're not circulating that money they're going to start circulating it if the central banks start pushing more money and causing inflation they're going to be like we better spend it before all these normal people though that's exactly right the. income gap will be cured by this digital currency hit the brake enough it's so exciting but we've got to go take a break and come back. to . the confirmation process that will most likely see. the next supreme court justice is in full swing. in their little need. to proceed legally they don't have any merit whatsoever this is. simply says the supreme court has been

politicized maybe forever impact to the poor it is a real job. welcome

back to the kaiser report imax tatter time now to turn to chris fenton he is the author of feeding the dragon this is a fascinating book it's caught the attention of social media and news media like chris welcome back hey i'm so happy to be back always honored bank you already let's get into this discussion your book really catches a venturing inflection point when china kind of went from america's ally to our once questioning like what's going on with china and as we head into this 2020 presidential election more and more the rhetoric seems to be antagonistic to torturing and i think your book does a good job in capturing that transition here now let me ask you about this 2020 election the moment in the vice presidential debates when china cut off the feet for mike pence during his answer relating to relations with china and then resumed when kamel harris was talking so what does that say to you about the 2 candidates

and how china views on chris. yeah what's it's sort of amazing that that aspect of of the story with the candidates the other night because i've seen that happen many times when i'm on the ground china and fact i remember vividly one where they didn't do it which was during the sandy hook massacre which happened to be during the time we were shooting iron man 3 in beijing they kept the news running full time all the time about that story because it made us look so dysfunctional in terms of sort of this lawlessness or whatever the story parameters were around at whether you like to have the angle or not the chinese loved it and then in issues like with the debate the other night i actually thought what was going on between the 2 candidates was relatively tame in terms of china i mean let's face it the c.c.p. is well aware that there's bipartisan support to get tough on china i don't think

anything was really honored that was particularly offensive but you could tell they were definitely being cautious when it came to the right side of the aisle and what they were going to say about china versus the left side because let's face it the right side has been much more hawkish for a longer period of time so i think that's where their scare was you know this technology that we live with in the 21st century has turned the world into this enormous peepshow in a free call back in the seventy's and eighty's they had these people shows and the slide of open up and customers would be exposed to what was forbidden they were voyeurs into this forbidding world and the slide comes down to some us of china treats us like a peep show where there's a pornographic act happening in america of mass violence and political dysfunction and they turn their population not with a bit of it now and then to get them to adelaide it before it goes back to the party line yes thoughts. yeah well i mean that's why i mentioned the sandy hook

situation which was obviously a terrible terrible moment in history for us but then. we're seen something not exactly apples and oranges but the civil unrest the things that are making democracy look at streamlining messy extremely dysfunctional the cove it sort of response and sort of how poorly we're doing it there that's all getting very well covered in china because it quite frankly plays into the c.c.p. narrative of hate communism is the best form of government for our 1400000000 people and then they even take it one step further and they say wow maybe that actually is a good form of government for the united states and they haven't figured it out yet so obviously there's a lot of things we all disagree with that narrative that they're using over there but that is the playbook that's at hand right now right so the objective is not to inform the population but that titillate the population and we see that all over

the world actually but china seems to be ahead of the pack because of the autocracy form of government that they have now the n.b.a. finals are also broadcast in china this is a very lucrative market for the sports franchise we've talked about this before the suspend a recurring theme in 2020 some of the n.b.a. stars getting involved in this situation that went to the n.b.a. finals i just finished congratulation los angeles won but what does this tell us more on the broader political spectrum chris. well i think number one is the n.b.a. did discharge a c.e.o. way back in april and they brought in somebody that was very connected to the chinese government through sort of legacy and relatives and family obviously he had a lot to do with sort of massaging it back to the place where the c.c.p. allowed it back on the air but i also don't see this is a big victory for the n.b.a. and i've been a little vocal about it quite frankly i mean to me the n.b.a.

goes hey look it's game 5 you know what we're going to put it back on just to remind you how important our market is to you because i guarantee you you'll be pouting it as a huge huge accomplishment and then of course game 6 was last night and then it's done we'll see what happens with the n.b.a. after this moment in time and whether they're back in the good graces of china or not i think there's still a lot of digging out of that ditch to do for the n.b.a. and i don't think they're out of the weeds just yet now that said i've also been very vocal in fact was vocal and as speech in beijing a couple weeks ago about this encroachments of the c.c.p. has on our rights to free speech here in the united states which is exactly what created the n.b.a.'s problem to begin with daryl morey the houston rockets g.m. shouting out as centrally on twitter his support for the hong kong protesters and i think he has every right to do that when on the ground here in houston texas and as

you just spoke about a couple minutes ago they have a centrally in their heads every right to close the peep show hole so that their populace can't hear that tweet or see that tweet so there seems to be arrested prosody there that they're not recognizing and we need to get our free speech rights back was kind of strange is that when you watched these n.b.a. finals and you are reeling on avoidably thinking in the back of your mind about the political of. it sounds and so n.b.a. players for example have endorsed joe biden by and large and so the experience of watching entertainment and sports is entertainment is now in fuse of politics and in a lot of to ways sense gambling is becoming more legalized in america with sport with sites like draft kings and others you know there seems to be

a total mash up between politics betting sports entertainment money everybody's mean the hollywood stock exchange i won't go there but tell us a little bit more your thoughts here about how the experience of watching entertainment has changed because now there is undeniably a political edge to what you're watching when you're rooting for one team it's almost as if you have to also consider am i also rooting for or against china chris what you are seeing is this political state and political ization of things that are happening in the entertainment space and in this situation it's actually the sports space that's starting to turn off a lot of viewers and i think part of those viewers quite frankly are also turned off by the fact that maybe they're ok with the n.b.a. voicing their opinion about certain political objectives and certain missions that they see a purpose behind but when something like human rights which is an issue they get

behind is so is suddenly ignored in a market where there's too much money on the line that hypocritical sort of line of behavior is something that the public has a real problem with and i think it's turning off quite a bit of quite a few consumers primal sports used to be about a contest of skills and then when big money got involved it's about who's got the biggest checkbooks. and as a result now you've got a political element here because it spilled over into the political arena but even though ratings are down as it described the salaries for these players aren't going down they're going to go up reminds me of the hollywood industry a little bit because you know people get paid not on how a movie performs but how big the budget is an initially so there is this skew toward bloated budgets because everyone gets paid as a percentage of budget not on how well the film does in the box office so can we

imagine a time when the bron james is paid a lot of money because as a diplomat working in the china america court are he's adding value to the country as a whole even though he might be losing games your thoughts well that goes into a little bit of what i talk about in my book which is i do believe the exchange of culture and commerce between the 2 superpowers is going to keep us from entering a cold war or something even worse like war. on james and the n.b.a. ref represent in terms of data exchange is something that's extremely powerful as both a diplomatic tool or as you could say as a soft power a weapon depending on whether you're dovish or hockey i do think what he is doing and what the n.b.a. does is super vital for our 2 countries to get along in some sort of could competitive strategic relationship or something that's just simply short of war

what i do have a problem with is that we don't address issues that we have with the other side we don't even we're not even allowed to have a voice everything is a 3rd rail if it's criticism towards the other side whereas in china they can criticize all kinds of things that are happening here in the united states without retaliation from our market forces but they do the exact opposite. it where we say something on this soil that they don't agree with suddenly they retaliate against that business or against that celebrity or against that athlete or against that industry that's something we can't tolerate anymore right let's talk about something stacy her life the manson off in the city's trap. you were a china bull now you're a china bear the city's trap happens in a rising power over tanks the current superpower in a sounds like we're describing china here overtaking america the wave of anti china

sentiment across america seem to have started with huawei out competing us on 5 she which is this seems to be this someone a moment really overlaps the timing of your book i think it was that the kiba how much do you think when the we flipped. well i saw it happening a lot around 2016 particularly in the media business because we were overrun by chinese money coming into the market and buying up assets and buying up assets at ridiculous prices simply because they wanted a foothold in soft power influence that the media business had and also they saw an opportunity to use. multiple it's arbitrage utilizing their share and then shenzhen stock exchange which allowed for much higher multiples of anything in the t.m.t. space so not only did we see all this encroachments from china coming into

a very powerful and noisy business which is the media space which is covered by the press really well and the public takes notice but on top of it we saw a companies like dial on one to buy up movie theaters from amc to carmike and suddenly have a stranglehold on the largest theatrical business in the country right and you could sort of look at that and say well wait a minute are we allowing a foreign entity one that's not necessarily an ally access to have that much influence over that many american consumers and that's what we saw chuck schumer and robert pittenger and other members of congress address this by pushing stiff b.s. to start taking action on all this m. and a activity that was coming out of china and that led into these national this security issues which ultimately became the national defense act where they have powered 50 s in a much stronger way not only to deal with the media space but also to deal with tech

and walk away and various other cyber issues that could be both on the theft side of things or in just very dangerous data storage all right chris hansen thanks for being on the cars report by the way i love the show and i really appreciate all of you guys being such big fans. this issue because it is vital for all americans and quite frankly the world to said thanks for having me on well that's going to do it for this edition of the kaiser a 4 hour with me max kaiser and stacey everett like to thank our guest chris fenton the book is called feeding the dragon no it doesn't star bruce lee joining cats just do so until next time by all.

join me every day on the alex salmond show and i'll be speaking to guest of the world of politics sports business i'm show business i'll see you then. look. ok let's just say that the get a list of all the. people who want to look at what why did why do you know i think i'll take. every year we hope to be but there you are also friends that the us are still so but the so beautiful thing to do something to see.

the child. they have about the house and i think i lack a cell phone and i was able to put on one of that kind of a book that happened. to go. oh and welcome to crossfire all things are considered i'm the confirmation process that will most likely see judge breyer become the next supreme court justice is in full swing them in their liberal media.