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 lean says e. C. B. Is 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 sovereign currencies theyre all trying to quote stoke inflation but we know thats false theyre 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 theyve got extra conditions to playing the game. On the other hand behind him the winning hand on the high side would be go gold silver and decline so must your own country that can make money by the base in your currency by getting kickbacks from wall street who packages all those currencies in the form of negative rate Interest Rate bongs 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 cant win playing the low hand unless youre a sovereign state or a Major Investment Bank and thats the best 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 a man 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 thats what they would have been had they not conned everybody for have lot of me say i have to 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 di to market about a lot higher and that would have been a net negative right so lets turn to what chinas doing because chinas you know there is a race between the west and china to issue their Digital Currency 1st so this week china starts dispersing some prized airdrop free money to some people Chinese Central Bank to give away 10000000. 00 in Digital Currency and 1st public trial of new Payment System Chinas Central Bank will issue 10000000. 00 yuan which is 2000000. 00 u. S. Dollars of Digital Currency to 50000 randomly selected consumers and what some see as the countrys 1st public test of the digital yuan Payment System right. People whove been watching kaiser report for years know about bitcoin they know about old coins they know about crypto they know about watching so china is borrowing from the block Chain 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 won into the digital wallets of consumers how does this relate to because its no threat to bedtime because its a highly centralized Digital Currency that is really a lot closer to any other fear money out there its a fear its a fear of money by comparison you cant compare it to because because pure crypto so it doesnt compete with big point doesnt 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 thats what its all about its not really competing with bitcoin declines on its own and its never going to be competed against Vladimir Putin of course said that in 2018 were 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 one way 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 the big question emerged since that here that same the end of empire the shifts 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 thats part of this trade war part of the hot war with china and i think china was. First that in 2008 to realize it was all over a member medvedev at that time held up a gold coin well china what they did is they unleashed the credit spigots because i think they realized this whole fear scheme 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 thats all going to go to 0 this is a fascinating concept so youre saying similar to an idea that was floated around on the web not too long ago as hey im going to my credit card im loaded up buying because i mean and then when i default to my credit card i dont care because i have it all in and confiscated all because theyre saying chinas kind of using this strategy they realize if you when a game was going to end so they borrowed incredibly and built infrastructure and they plan to default its a game of chess and they saw america was doing the same because we were borrow and borrow on the 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 dont we do that if the system was going to end and thats 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 the digital is the latest chapter in this whole process youre describing yes its a global currency war its been going on since 2000 they dont global debt war is well and you know geo political war who is controlling the future and you know i dont think its 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 there are. Issuing them into wallets and is thought back by debt per se so thats a fundamental change in the way the Global Economy might work Going Forward and i think thats something to watch so you know there are 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 chinas trailblazing and leapfrog private projects like facebooks stable coin i mean in a way in especially in the u. S. The the the the payments rails are really antiquated its so amazing even coming from europe and i cant imagine what its like and asia how much more advanced but its coming from europe back here its like slow and like youre out in the old west send pony express to bring them you know its a mirror to check for much book lets do a 4. 37 c. And syrian this. Right its 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 merged recently but lattimer putin was asked about doing one of these Central Bank Cryptocurrency he was asked by a young you know video blogger what he planned to do for russia what would russia get their own crypto currency and pompei had tweeted if this video is real it highlights just how well understood big queen is by the worlds most powerful people the next reserve currency wont be controlled by a nations. They 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 crypto currency it is something beyond National Borders right here stands that exactly whats going on here so this is a decrypt a currency so the chinese currency is not like that coin as a complete digital current additional current addy 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 youre account is full of these Digital Currencies that are backed by the government and if the bank fails your deposits are guaranteed because theyre 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 dont want to lend banks create private banks create money by lending to Small Businesses Medium Sized Enterprises and people but they dont 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 as simon dixon would point out its not debt its actual money so we could also see the inflation theyre hoping for right and it really an interesting set up for a contentious almost battle between these banks that wont 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 im begging for money because the Government Cut him off yeah the velocity of money is so slow because all of the wealth has hoarded just than 50 americans own as much wealth as 165 american 165000000 americans. If theyre not circulating that money theyre going to start circulating it if the Central Banks start pushing more money and causing inflation theyre going to be like we better spend it before all these normal people though thats exactly right the income gap will be cured by this Digital Currency hit the brake enough its so exciting but weve got to go take a break and come back dont go. Seems wrong. Just dont. Let me. Get to see how this day comes after. And in detroit because the trail. When something find themselves worlds apart we choose to look for common ground. He said. It is not. The most companies he knows. His company. Goes from getting notices to c. B. C. News he. Will tell you a list. Welcome back to the kaiser report imax keyser time now to turn to chris fenton he is the author of feeding the dragon this is a fascinating book its caught the attention of social media and news media like chris welcome back so happy to be back always honored bank you already lets get into this discussion your book really catches an interesting Inflection Point when china kind of went from americas ally to once questioning like whats going on with china and as we head into this 2020 president ial 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 President ial 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 im chris yeah i would cobble harris was talking so what does that say to you about the 2 candidates and how china views of chris. Yeah whats its sort of amazing that that aspect of of the story with the candidates the other night because ive seen that happen many times when im on the ground china and fact i remember vividly why and where they didnt 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 lets face it the c. C. P. Is well aware that there is bipartisan support to get tough fine china i dont 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 lets face it the right side has been much more hawkish for a longer period of time so i think thats where theyre scare was you know this technology that we live with in the 21st century has turned the world into this enormous peepshow you know if you recall back in the seventys and eightys they had these peaks chosen the slide would open up and customers would be exposed to what was forbidden they were voyeurs into this forbid world and the slide comes down to some lessons that china treats us like a peep show where theres 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 your thoughts yeah well i mean thats why i mentioned the sandy hook situation which was obviously a terrible. Well a terrible moment in history for us but then. Were seeing something not exactly apples and oranges but the civil unrest the things that are making democracy look exterior massy extremely dysfunctional the cove it sort of response in sort of out poorly were doing it there thats all getting very well covered in china because it quite frankly plays into the c. C. P. Narrative of hate communism is the past 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 havent figured it out yet so obviously theres a lot of things we all disagree with that narrative that theyre using over there but that is the playbook thats adhan right now right so that the objective is not to inform the population but it 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 weve talked about this before in the suspend a recurring theme in 2020 some of the n. B. A. Stars getting involved in this situation went to the n. B. A. Finals and 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 the c. E. O. Way back in april and they brought in somebody that was very connected to the Chinese Government through sort of the 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 dont see this is a big victory for the n. B. A. And ive been a little vocal about it quite frankly i mean to me the n. B. A. Goes hey look its game 5 you know what were going to put it back on just to remind you how important our market is to you because i guarantee you youll be touting it as a huge huge accomplishment and then of course game 6 was last night and then its done well see what happens with the n. B. A. After this moment in time and whether theyre back in the good graces of china or not i think theres still a lot of getting out of that gets to do for the n. B. A. And i dont think theyre out of the weeds just yet now that said ive also been very vocal and in fact was vocal in a 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 sensually 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 cant hear that tweet or see that tweet so there seems to be arrested prosody there that theyre not recognizing and we need to get our free speech rights back what kind of strength is that when you watch the news and be a finals and you are really on avoidably thinking in the back of your mind about the political of. Towns and so n. B. A. Players for example have indorsed joe biden by and large in so the experience of watching entertainment and sports is entertainment is now infused with politics and the lot of it to the way its sense gambling is becoming more legalize in america will sport with sites like draft kings and others you know there seems to be a total mass between politics betting Sports Entertainment money everybodys mean Hollywood Stock Exchange phone though 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 youre watching when youre rooting for one team its almost as if you have to also consider m i also rooting for or against china chris what you are seeing is this politicization a little ization of things that are is happening in the entertainment space and in this situation its actually the sports space thats 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 theyre 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 theres 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 its turning off quite a bit of quite a few consumers right well sports used to be about a contest of skills and then when big money got involved its about whos got the biggest checkbooks. And as a result now youve got a political element here because its spilled over into the political arena but even though ratings are down as you describe the salaries for these players arent going down theyre going to go up yeah 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 initially so there is this skew toward bloated budgets because everyone gets paid as a percentage of the 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 at the china America Court or hes 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. Games in the n. B. A. Represent in terms of Data Exchange is something thats extremely powerful as both a diplomatic tool or as you could say as a soft power weapon depending on whether youre done to show off. 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 thats just simply short of war when i do have a problem with is that we dont address issues that we have with the other side we dont even were not even allowed to have a voice everything is a 3rd rail if its 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. That were we Say Something on this soil that they dont agree with suddenly they retaliate against that business or against that celebrity or against that athlete or against that industry thats something we cant tolerate anymore right lets talk about something Stacy Herbert likes to mention often the citys trap so you were a china bull now youre a china bear the citys trap happens a rising power overtakes the current superpower in a sounds like were describing china here overtaking america the wave of anti China Sentiment across america seem to have started with huawei out competing us on the 5 g. Which is this seems to be this summit all moment really overlaps the timing of your book i think it was that the key moment 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. Multiples arbitrage utilizing their shenzhen shens and 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 Companies Like dial on one buy up movie theaters from amc to carmike and suddenly have a stranglehold on the largest the actual 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 thats not necessarily an ally access to have that much influence over that Many American consumers and thats when 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 and in a activity that was coming out of china and that led into these national dis Security Issues which ultimately became the National Defense act where they empowered 50 s in a much stronger way not only to deal with the media space but also to deal with tech and was away and various other cyber issues that could be both on the that side of things or in just very dangerous data storage all right chris fenton thanks for being on the cars report. By the way i love this show and i really appreciate all of you guys being such big fans of this issue because it is vital for all americans and quite frankly the world to say thanks for having me on well thats going to do for this edition of the kaiser before i was mad max kaiser and Stacey Robert like to thank our gas christe fans of the book is called feeding the dragon now it doesnt star bristly joint thats just. A dog industry comes to life in los angeles every night. Dozens of women sells their bodies on the streets many of them underage. Los Angeles Police reveal a taste of their daily challenge if youre going to exploit for a child here in los angeles were going to come out you see officers going undercover as 6 workers and customers to fight 6 trades. One. Week. But there are also friends. But the still. Something. Which. They. Basically. Put them on the. You know what. We start with breaking news 6 years after d. N. A. 17 tragedy russia pulls out of what its a point this Investigation Called consultations with the netherlands straight. To the news france is set to reimpose a nighttime curfew as of saturday this will affect paris 8 of the citys 2 amid a spike in new code cases and its fight against the virus is expected to last until the summer. Of 2 strikes obliterating everything that we all to changes and one of the domes have been completely destroyed. Our correspondent reporting from the battered region of the bone the car about his
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