tv Keiser Report RT June 7, 2019 11:30pm-12:01am EDT
oh. it was closer to that has nothing to do with all the dark. skies or this is the kaiser report the show you stay up all night to watch and can't believe you're so for some of us to see such great t.v. programming stacey you know i want to follow up on that theme of the weaponization of trade because this is part of what i think is the imperial rot it's not unusual as we've mentioned before it goes on throughout history as an empire falls apart thanks a lot to do with hubris and we see that with you know the chlorinated chicken trade we see that with our healthcare system here we see that with the dilapidation of our big cities like san francisco and los angeles we see that with the boeing and
there are nonstop catastrophes unfolding that's all part of hubris and bullying and just we're no longer associated much with quality and a lot of it has to do with hubris right as i said it's it's that we have so much power and we've weaponized trade and we've weaponized the dollar and here is the headline china is playing the long game says charles gave there's an old saying a wise man points to the moon and the idiot looks at the finger says charles gave founding partner and chairman of gave cow research tariffs soybeans and rare earth metals steel the headlines when it comes to u.s. china trade tensions but these are just tools or weapons of warfare and a much larger battle over money and sovereignty and china is playing a long game he said in particular he he points out the u.s. dollar has been weaponized and china is really playing the long game by accumulating gold by creating their own futures markets by prepping for this and
a very quiet way this is an interesting historical moment the rise of china this here in our own. now we have a standoff so it's going to be interesting to see how the u.s. response and how the u.s. population responds if they're staring at the moon or staring at the finger or giving the moon the finger you know that's interesting to see how the u.s. response you know the u.s. is a plucky group of rugged individualists that have come through tough times before and will see what resources can be pulled one of us through it well we have pulled through other stuff in the past and crazy periods in civil war isn't and mass of the salem witch trials and we you know the mccarthy era and it seems a little bit like that right now that there is hysteria in the elite class because they don't know how to deal with what's going on in the world in the meantime the u.s. dollar serves as the world's reserve currency and is used for pricing in trade by
a majority of nations around the globe however americans have decided to weaponize the dollar gave stated making any transactions between 2 nations susceptible to u.s. action or scrutiny this is a big loss of sovereignty for other nations he said and china's taking the lead in forming an alternative trading currency to the dollar we've talked to alison mccleod here and i think that he's right that it doesn't matter about the currency this guy charles gave actually looks set for example that you know that china's trying to price the oil and remember and that is not what matters what matters is settlement of the trade where the settlement of the trade happens and as brad sherman a congressman from los angeles points out is that the all trade settles to the new york fed and that is important it doesn't matter what currency it is the fact that it settles for new york fed is where our control comes from so the china has a long way to go to have a trusted settlement system and perhaps gold will provide more trusted right now as
i mentioned in an earlier show you know we've seen this before in the eighty's with the rise of japan and the u.s. had a response there. rejiggered the global currency markets at the plaza accord this was reagan in robert rubin the same people that gave us the plunge protection team after the crash of 1970 so china doesn't seem to be wanting to play that game though so they're going to have to come up with some other strategy and at the moment none appear on the fora isn't something is got to give either of us except 2nd class citizens in the global economy or they make some kind of dramatic move the u.s. could seize all the gold that they are holding on behalf of many nations and be the 1st to declare reste restoration of the gold standard because of course you know nixon promised that it was only temporary that would. then follow richard nixon on twitter and. i think if i'm reading the tealeaves correctly i think that's an
interesting idea i think that could happen. but so we'll see what happens there during the 2008 financial crisis we saw in russia with medvedev 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 that they lose touch with the mage 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 a 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. cyber criminals used in the attack was developed at taxpayer expense a short drive down the baltimore washington parkway at the national security agency according to security experts briefed on this case so this is a parent with in 2017 the n.s.a. lost control of one of their weapons their digital weapons called eternal blue and it was a weapon that basically they weaponized a flaw in of course microsoft a microsoft product and they didn't tell anybody about it but this weapon this eternal blue weapon was either stolen or released by a disgruntled employee the n.s.a. still doesn't know how it got released but it's wreaking havoc to the tune of tens
of millions billions of dollars across the world but 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 thumb drive version of n.s.a. encrypt. 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 to 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 it costs money to patch and to protect yourself from this turn all blue 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's the follow up what's being done about
this how how we're going to stop this like basically you know all these all these 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 now where 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 to 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 where afraid they're going to put a back door 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 or i've got a backdoor into my wigwam. i know how to defeat these people so before it lead to eternal blue is one of the most useful exploits in the n.s.a. cyber arsenal according to the 3 former n.s.a. operators she 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 you 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 this nightmare of the 1st after about the end because we're going to the 2nd half of all beautiful and shangri-la like with the brilliant guest concert who's like a frickin genius don't go away stay right there more to come.
and good news. for those who heard the food you. were going. we'll show you this new video of the liver i mean it's going to look. more muslim also these girls will give you good girls. go to school so look i look the same you believe to show historically to the issue go. to starts to. get to me to tell it with the littlest they'd say look it is it's. your stash them understand just need to mash told. to stop the president and please
control this project until it's. over your producers to close in this world to snap them up when you look at those the girls who are serious supporters to your machine station shouldn't feel you should cook door for the one who's your desire to. join me every thursday on the alex simon show and i'll be speaking to guest of the world of politics sports business i'm showbusiness i'll see that. welcome back to the kaiser report imax kaiser's caught that i got to part 2 of our
conversation with cosseting concertino welcome back to the smarts cause attain a par why we were thought of a macro scenario and by the way are over there at your new venture there macro view dot edu highly recommend people check it out now we're talking about the big picture macro economics trade wars tariffs and tromped all this stuff now during this period we've added 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 is 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 that you should just order a sense of. well that sense the from the geopolitical or the e.u. and. so economics matter it's clear to me that are both why we say if you want debate that is out in the west that the form by all of you up the siren you of china both in the united states on europe but part of this in certain segment security is a huge importance area it is so room barking or it globally is one of the most the areas. and for governments to date. at the wharf they're moving on to the rails etc security environment we're looking at the cyber espionage but also. option off operation is a is a sense of losses arising there in the star in one of the recent papers myself on the co-author we have shown that there is ousts them it resists 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 that they lose they also beyond that. and i think dealing with now is going to be very problematic simply because yes willow that the chinese hardware and software. used by atlas aren't are 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 was the joys of the 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 uk was a blow to the multinational corporations such facilities are on the china and chinese are coming 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 . you get out deal with the issues like why wave. in all of it isn't a mix in cybersecurity it isn't want to mix in martial security issues but also after find some. deal with it was out nixon and the ideas of jail for the patients and before. that. in the boss diplomacy.
or development or investment and so forth operative solutions believe in the wall the forklifts of solutions will even in the wall block what with all the games the game of chicken or if you want to have on the fishing in the back of the wall it's very difficult remodel the result off the bottom quietly. in the communication systems of the united states. radical radical or where it was disrupting the supply chain systems it was dishonest in the 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 it warranted. then you know the solutions. all right isn't it. yeah i remember back in the 1980 s.
when a similar situation in japan japan was starting to leapfrog the us a lot away 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 excited 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 here you 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 same to be the panacea attempting to write all these imbalances but he's even going after allies so the latest tariff slapped on mexico to force them to deal with the central american migration issue tell us about that does that make any sense he's using that issue as an economic issue he seems to be mixing everything. up in a grab bag of policies about a lot of. that's caught diplomatic sense your thoughts completely agree with you
in that mexican paris is a lot a case of the weaponization of great their dreams with a lot by the economics of trading with mexico united states imports a large number of components for the future as sam was solo are probably out of the woods appealing for the united states transformed into iraq with woods and quite often it's for the rest of the law. no message use multiple problems in terms of trade. there is a great article the united states in terms of face 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 months the deal is you're looking at there what do you looking nudism in the light that states where we governments are so the issue here is that the jury pools it is. only still objects and in that end of the environment it's weird if you see how china can stand while to be tallied the work united states is doing and it's also very hard to see how the united states
can sustain its economic model bone for 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 3 to part with the supply chains been intermingle the extent that u.s. mix of supply chains and really the same issue to rises with china what happens is that in the long run american manufacturers are going to bring jobs in america they offshore jobs that appian offshore to say for example channel mexico somewhere else and that's a higher cost location on those because we're already in an optimal location germs of your cost for 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 one to war in mom's you with a record in box in terms of the fire crisis but we will that's what the doubts on
the hop in the long run in all schools will be any rush is the need to compensate for example for the time to balance 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 or char in there or production launch i don't see vietnam in florida have costs but the vietnamese for the action is owned by these chains investors so in other words you are still paying china well the production but you know how bean plant cost to china yeah i get it so you know it's a game of ever decreasing returns 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 quarter tell us about one number and how it relates to all this the number would be a household formation constantine well a household court formation in the united states as follow and even more so it's fall along demographic lines so in other words younger households that used to be formed in their late twenty's early thirty's and now formed in their early forty's and late forty's so as a result of that is that he just the comparative terms of the barbers look at americans under the age of 22 sargon still with their parents it's used and compared with equal interests if you shoot a 5 proportional it's probably possible to rest in either the jews the or the 4 seventh's will stay around 40 percent they did in the united states it used to be about 10 percent while it is. or for the same. reason that mani want what they call in italy they call a mama
a problem bonamy where you can no longer for move because they no longer can afford movement their social mobility. in the future they cannot as. much as the halls and their interests in terms of their new 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 in a very development then moans position slows down and so forth it has a knock on effect with all the plants across the our life cycle of the fossil so yes. when you take out for example that additional logic possible emilie's the months the migrants in the united states will look at the want them a profits if the marks it's you know who was born households the number of children is the line in terms of in those households. the age at which families
start and have children and so forth is also a rise and as a result of that the relative education bond or this probably quality software was that. those children were at the area just as the laws were on the rise this is one of the major well a lot of the idea of the cycles that nation but that also meets and we saw all this is though it straight causes boards investment funds weaponization of the u.s. dollar and the u.s. it's far on the policies. because in the nation in the united states into into the early and intimately linked. in or feel of copy from all around the world the largest are those the war the likes of yams or this wall they all rely on ma national work force working not just the united states. also outside of the united states an artwork form in terms of the research and while we needs that that will explain it the reason the oscars and we have
a limited mom please for. the united states but also people who want the multinational open is appalled because all sponsors aside and once the united states the united states and united states opens its software local the as well as a result of which are often what we eat is also slow and wow so as out there i want to change and social media is changing over that period is not growing as well so a good solution on bomb or anything else that will meet me at its base crowds and more growth and where that gets on the table is no longer painful because it won't all the cheese and then it won't. cost and jane garvey of as so i thought website as macro view dot edu thanks for being on the kaiser report thanks mox my pleasure all right not going to dare for this admission of the kaiser report with me max kaiser and stacy herbert like to thank our gas cosseting our macro view dot
i agree has long positioned itself as a sovereign player within the e.u. . stand up to brussels. 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. lot of calls out america and other nations are for not practicing what they preach and not only when it comes to trade wars russian president assessment the same petersburg international economic forum speaking alongside other world leaders. british prime minister theresa may officially steps down as leader of the conservative party now the race to replace her is on with 11 candidates eyeing the job. and a link to all.