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 for the rise of china is here now and now we have a standoff so its going to be interesting to see how the u. S. Response and how the u. S. Population responds or if theyre staring at the moon or staring at the finger or giving the moon the finger you know thats 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 pull. Us through it well we have pulled through other stuff in the past and crazy periods and civil wars and and mass the salem witch trials and we you know the mccarthy era and it seems a little bit like that right now that there is history. Area in the elite class because they dont know how to deal with whats going on in the world in the mean time the u. S. Dollar serves as the worlds 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 chinas taking the lead in forming an alternative trading currency to the dollar weve talked to Alison Mccleod here and i think that hes right that it doesnt matter about the currency this guy charles gave actually looks at for example that you know that chinas 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 doesnt 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 weve seen this before in the eightys with the rise of japan and the us had a response they 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 doesnt seem to be wanting to play that game though so theyre going to have to come up with some other strategy and at the moment none appear on the floor arisan something is got to give either the u. S. Accept 2nd class citizens or even 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 im reading the tealeaves correctly i think thats an interesting idea i think that could happen. But so well see what happens there during the 2008 financial crisis we saw in russia with medvedev remember 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 fiats currencies there is the distrust that goes with it as weve pointed out but heres another story that talks about this imperial rot and the hubris of the elite who they lose touch with them and the vast majority of the population and you know they use the weaponization of trade they use the weaponization of their free out currency for their own benefit a very small group of elite and this is in baltimore and beyond a stolen n. S. A. Tool wreaks havoc for nearly 3 weeks baltimore struggled with the cyber attack by digital extortionists that has frozen thousands of computers shut down disrupted Real Estate Sales water bills Health Alerts and many other services but here is what frustrated City Employees and residents do not know a key component of the malware that cyber criminals used in the attack was developed at taxpayer expense a short drive down the baltimore washington parkway at the National 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 didnt 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 doesnt know how it got released but its wreaking havoc to the tune of tens of millions billions of dollars across the world but is now on domestic soil its 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 feared the presence of suitcase atomic weapons you know what havoc that could bring and meanwhile we actually have this suitcase portables thumb drive version of n. S. A. Corruptions. Malware that is in the open that is causing havoc so it was released on april 2017 by a group called the shadow brokers again the n. S. A. Doesnt know if its some foreign power group of hackers or theyre on their own disgruntled employees so there could be somebody still in that n. S. A. Or whoever has this is releasing this stuff since that leak foreign intelligence agencies and rogue actors have used eternal blue just bread 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 theyre 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 are not earning their return so they have to spend more of their reserves but anyway they have old Computer Systems with old microsoft products on it that have they have not patched it because a cost money to patch and to protect yourself from this and turn all blue so its. Costing tens of millions of dollars across america so i dont know if you know this is basically an investigative piece from the New York Times so i dont know whats the follow up whats being done about this how how were going to stop this like basically you know all these all these that they just need to patch it but i dont know if they have the funds the patches or the know how to patch it because you know if theres 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 theres 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 theyre 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 dont want to be connected to the malware they have to get in 1956 chevy or move into a house that was built 30 or 40 years ago actually im going to cut through a little photo here maxs new car see this is a 924 model im not saying in a chances im going back to the model t. Because i know henry ford didnt put in any malware in that car no and of course when google cloud went down just the earlier this week or last weekend. People are cut off from their nest their control system so theyre boiling and they in the heat of course this is also in the context of this battle with huawei crossing billions more and yet the reason why were battling chua way is that were afraid theyre going to put a backdoor in it but here the n. S. A. Is releasing malware its leaking all over the place apparently they dont know if its a disgruntled employee or not anymore ive got a back door 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. I. Operation spoke on the condition of anonymity analysts spent almost a year finding a flaw in microsofts 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 till used in countless counterintelligence and Counterterrorism Measures now the u. S. By the way wont 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 youre supposed to tell that the Company Microsoft instead of weaponize ing it but we havent 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 am because going to the 2nd half of all beautiful shangrila like with the brilliant guest constantine whos like a frickin genius dont go away stay right there more to come. The produce was good youve done your book. You mean if you dont believe people would. Work the worst to move. You for this very sure if you order to. Do the close you you presume this loop of girlishness lose your most few of them for you to do it in both of those when youre. Going to jimbo you isnt in their history but if you. Are never still because. Youre going to treat your group as you move to a new one. More you would almost be. The whole truth in doing. So were going to. Start with a. Nobody could see coming that false confessions would be that prevalent in this population a problem for converts. Any interrogation out there youll see is a threat promise threat promise threat lie a lie a lie the process of interrogation is designed to put people in just that frame of mind to make the most comfortable makes them want to get out and dont take no for an answer dont accept their denials she said if i were to. Say i stayed there i would be home by that time the next day theres a culture of on accountability and Police Officers know that they can engage in misconduct that has nothing to do with solving a crime. Welcome back to the kaiser report imax kaisers caught that i got to part 2 of our conversation with cosseting concertino welcome back and its matts so 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 were talking about the big picture macro economics trade wars and tariffs and tromped all this stuff now during this period without interesting emergence of huawei chinese 5 g. Telecom company that is definitely rattling peoples cages and causing all kinds of handwringing and consternation around there tell us a little bit about whats going on there constant thing well as far as mind is then unused there is an issue of the supply of art where from go quietly which is question in terms of its attention ecuadors and oxygen and Security Apparatus in china. Are where actual data flowing through the system well the specials the. Communications the suns on it seems to me that that is that you shouldnt use any sense of well that sense the from the geopolitical or the e. U. And. So economics matter its clear to me that are both why we say if you want debate that is up in the west that the ease and warm. You up the siren you of china both in the United States. But part of this uncertain cyprus security is a huge importance area it is so remarkable it globally is one of the most wants the areas both. Governments to date. At the wharf theyre moving on to the rails a security environment were 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 coauthor we have shown that there is ousts them it resists in a row or on the status of events in private sector. Changes around the wall both changes that accompanies that appealing pocket by the box and these they are also beyond that so in other words its a huge issue and i think dealing with now is going to be very problematic simply because yes alone that the chinese hardware and software. Used by atlas are a power such as china in different instances and if i think violence in the phone case is against the targets in the United States and in the us. Well somewhere that we were the ball for innovation is more along the bottom as the bodies of the states wealth of the world in which grade is beneficial change both the actual property of software and hardware people the development of the future Network Systems the Communications Networks in the United States and not exactly what he chose at their quality the penetration rates on the average. In the United States are very low compared to say for example europeans despite the United States being bought the Major Centers for in the basin lower than the nation that is attributable to the United States bloat of the multinational corporations such facilities are on the ball china and chinese are on the up the chains of the quality of their research and Development Also coming up in terms of the quality of their academic results so in other words we. Get out deal with the issues like why wait. In all its it isnt for the mix in cybersecurity it isnt in moscow Security Issues but also after find some. They deal with it while the mix of ideas of jail for the confrontations and before long will that. In the boss diplomacy joint development or investment and so forth operative solutions believe in the wall the forklifts of solutions will live in the wall what with all the games the game of chicken wants you want to have on the fishing. The side of the wall its very difficult model of going to dissolve the bond 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 existence. 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 a warrant it. Then you know the solutions. All right isnt it. Yeah remember back in the 1980 s. When a similar situation in japan japan was starting to leapfrog the u. S. A lot of ways and the u. S. Came down very hard and this resulted in the plaza accord with there was a massive currency adjustment hadnt 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 lets say a plaza chord 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 boeings technological difficulties the cracks in the fuselage is exciting openly mocking the u. S. So this is quite a different approach now it comes to Artificial Intelligence you know theres an old saying that he who controls the gold makes the rules but it were entering the 21st century where its really he who controls the telephony and the Artificial Intelligence is going to make the rules thats the 21st century and chinas clearly leapfrogging ahead what you know and you recently you were talking about americas infrastructure as being incapable of supporting the middle class or the lower class you have people deaf acadian on the street you have an ability to pay off Student Loans youre 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 hes 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 hes using that issue as an economic issue he seems to be mixing everything. Up in a grab bag of policies about a lot of. Thats caught diplomatic sense your thoughts completely agree with you in that mexican paris is a lot a case of the weaponization of trade their dreams with dogged by the economics of trade with mexico United States for its large number of components for the future as sam was solo or probably ought to be in or to the United States transformed into iraq with woods and quite often its 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 trade its 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