They could default on their debts to england and of course 50 years later were still defaulting on the debts but we could be seeing a new Bretton Woods who knows whats going to happen but youre talking to simon dixon in the 2nd half about that in the meantime you know really whats going on is that through cities trap that weve talked about which is the rising power china always ends up in conflict with the decline in power which is the United States in the situation we certainly see that heating out and you see that however even in the attitudes of people around the world here is a chart which is worlds leading economic power this question was asked to people in advanced economies around the world and among advanced economy publics 48 percent thought china was the number one power 35 percent thought the u. S. And amongst germans it was 55 percent china as a leading power and 17 percent of the u. S. And this is unfathomable a low says adam to use this idea of the 3 cities trap you know it sounds very elegant doesnt it as its quite historic an epic and its a changing of the guard right so were moving from the American Century to a chinese century no doubt and the u. S. Dollar as the World Reserve currency had about 100 year run which is normal going back 500 years there was the u. S. Turned to have the World Reserve currency and thats all shifting and now we have the new brand woods agreement which is epic because the last one came after world war 2 which was a seismic geo political reordering of the world powers so this is a very and the if i have the election right the election is obviously going to be contentious and we got a good 3rd 4th quarter of 2020 shaping up max you studied greek tragedy as a student at n. Y. U. You know not only did the greeks give us democracy and philosophy and so much of mathematics and our understanding of humans but they also you know really understood like this sort of inevitability of the cycles of life tred the great challenge of these youre always know whats coming right the chorus is there you know were. Like the chorus of this tragedy where its just saying ok this is about to happen this is where hubris is going to make this person do so it is a perfect time a perfect word to cities trap to use for this sort of situation because its just inevitable theres no like good guy or bad guy it is just what it is thats fatal fatalism and it doesnt mean necessarily that one is being cynical if one recognizes the fatalistic quality of certain dramas as they unfold because what makes a good drama is are the rules outlined by the greeks you know 262700 years ago and it is entertaining for that very reason that the ending is known but the hero or antihero walks right into that buzzing saw in my life themselves an extra blade but fatalistically and we see this time and time again so the us. At any moment they could get off this path in the camp of walking into the buzz saw that nick conceivably but fate is drawing them to the blade you know we had Aristotle Plato socrates. They understood the the man right they understood but tries us and we always try into the buzzsaw thats the way powerful people are powerful nations do it they just go straight into the buzzsaw theres no other option they can just like kindly walk off the stage you know its just goes into the but is cyclical nature of nature is one that can be dramatize stand in the case of humans they typically will be drawn to a fatalistic end unnecessarily and thats what makes it tragic speaking of tragic just look at that chart this is our deficit numbers plunging here it is the deficit serves the u. S. Record it is widest budget deficit in fiscal 2 1020. 00 since the 2nd world war that was a tragedy was which it was a massive global tragedy at the end of the last empire of the British Empire and you know the rise in power at that time was germany and the and the us but they decided to fight germany right in the us went into massive debt to win world war 2 it was a kind of a gamble and its like amazon went into massive debt for many years to become the worlds biggest retailer and it paid off and jeff bezos is the worlds richest man but this time america went almost into similar debt and before its all over probably it will have bought more debt but without any payoff theres no way that there will reap any reward to this because they are hauling themselves out after world war 2 the us was intact the rest of the world is in shatters here the us is in shatters and the rest of the world is on a relative basis in different layers and levels of being shattered and it becomes kind of a battle of the most shattered and in that battle the us has done necessarily got the best poker hand its mazing that to me that the timing of this new brand woodstock comes at the exact same time debt levels in the u. S. Work where they were during and just after world war 2 so when you get into those huge debt levels and you need a reset you realize your paper funny money is no longer valuable you need to appeal to the globe now we were. Essentially america is tapping out were tapping out and saying we need to reset the shining city on the hills about to go bankrupt please help us please help us so theyre going to go to the global Bretton Woods to play this massive geo political financial poker game and as weve said on the screen show before the u. S. Is holding not a great hand everybody was and after world war 2 but mostly today and say everybody owed the United States money at this time when we enter this 2nd Bretton Woods what we see is there are videos china money however i think china understands theyre not actually going to get paid back like the Marshall Plan loans were paid back you know the last them only just paid back in the last 2 or 3 years but the china knows im not going to get paid back thats why i think they built up a huge amount of infrastructure during the past decade especially so the original article mo hussein says that u. S. Budget deficit tripled to a record 3 point one trillion a fiscal 2020 spending soared 47 percent in the year ended september 30th in this case we have what the you know the equivalent of world war 2 is this pandemic and has caused a hit to global economies to now not as many deaths obviously but it has hit production and manufacturing capacity and with that you know we also at the same time have a u. S. Election and Goldman Sachs saying this sell us dollar by silver investors should look into selling the u. S. Dollar they say and buying silver into the election according to 2 reports from Goldman Sachs there is a growing risk that the u. S. Dollar will plunge to its 2018 lows as democratic candidate joe biden continues to extend his lead in the polls prior to november 3rd so they see that a fight and win would be bad for the dollar i guess they assume a resumption of the china relationship joe biden was quite instrumental in the whole w t o bringing them into the. Opening trade relations with there and you know allegedly his son also has big. China so they just see a more favorable relationship with china and therefore a continuing decline in u. S. Manufacturing and expansion of the deficit and perhaps m. M. T. More money printing sort of situation for a role dont blame the pin for the bubble right so there was a bubble building in the us economy the Global Economy for years now and the virus coronavirus is potentially the pin anything could have been the pin beginning of this year we outlined 6 or 7 things i could be the pen to pop the bubble i think im not sure pandemic was on that list but it did rule doesnt really matter what the pin is the bubble could have been. Eased in and deflated long ago but it never was glass steagall which was those 2 i believe were crucial to allowing the china into the most favored nation status in 2001 just after 911 so all of these things happened at the same time we got to export our manufacturing it domestic elites no longer needed the workers they didnt need productive wealth in this country because of the commodities futures modernization act and the huge explosion and derivatives that followed that so i think all of those go together and that tragedy has been unfolding for 20 years weve seen this coming right and what so in the tragic greek drama of the character flaws of the protagonist is that they might be greedy or full of hubris and so they are inextricably tied to this tragic ending and weve been saying for years ok based on the greed of america its an Economic Policy its not trying to cure wealth and income gap and stop trying to be egalitarian its just greed greed greed greed dressed up as Something Else which would have a tragic ending and now the buzz saw of tragedy is fast approaching and the us cannot do anything extricate from this path of destiny of the fatal destiny that it that it is now in extra could be tied to therefore we must. Understand that the only way to find solace on an individual basis is to think of ourselves as having individual sovereignty instead of being tied to a sinking ship of a nation state but you never know where a truth is going to come from you know and thats why im against all these things that are revisionist in nature because you never know actually when matter what the surface there is some underlying truth that can be useful the truth is that the electorate me the bad decision after bad decision partly because were only ever presented with 2 protagonists to choose from to rule this decline into the end we only ever had 2 options and of a nation of 340000000 and sure enough we you know as i think was h. L. Mencken said that one day the people who merican this great democracy will choose the moron they they deserve to rule the country and you know thats what we kind of have these 2 choices. Of decline rights of various abilities and so thats it you know and thats what we have a new Bretton Woods yeah i think everybody outside the United States is like thats why that might be time for a new Bretton Woods and Goldman Sachs is saying dump the dollar theyre actually suggesting short a dollar short to the dollar so theyre saying bet against america and that all of that Warren Buffett stone tragically we knew this when we come i must take a break and come back after the break. Fantastically for you stay to. The demick no certainly no borders and is blind to nationalities. As america we dont come with you we dont look like the whole world peace to be. People. Judge you. Come in every crisis like this system. We can do better we should. Everyone is contributing to each of our own way but we also know that this crisis will not go on forever the challenges created the response has been much so many good people are helping us. It makes us feel very proud that we are in it together. You know when im going to be at their school i dont think of the last act i dont mean a guess that grown men now need or for this kind of where i want to be on the course of back and not be now i think its hard and i. Have to cut my feet is always them safe and quick passage to europe but once they do i believe they are in sleeves because of the tribute of. Some of the maybe a mom and i couldnt you know if this unit could get out a hand. Gun but london or whoever did it from the cinquera me out of the they sold the. Lady welcome back to the kaiser report im max kaiser time now to go to simon dixon of bank to the future dot com simon welcome back to kaiser report exactly max right simon dixon im bats going for a new brand words youve been gone viral whats your video breakdown of this year going through the whole thing what does it mean as opposed dollar world is it a bank or are we not Gold Standard a digital s. T. R. Central Bank Digital Currency what do we look for you know what i think is going to be a central Bank Digital Currency i think were going to see as we talked about in one of the previous episodes on call is a report of the absolute toc on the banks and i think this is a central bank led wolves now and Central Banks are sucking up all the assets all around the world if theyre taking on too many of those toxic assets i think the i. M. F. Is getting ready to roll up all of the Central Banks into one i. M. F. Central Bank Digital Currency so you trends is this is what theyve been looking for for a long time. So the i. M. F. Came out of the last breaths and was meeting in 1984 when they removed the Gold Standard and moved it to a gold dollar debt back standards and in 71. 00 the us decided to take remove the Gold Standard and move it to a full fee of debt based ponzi scheme and so i amassed started losing some of their significance and the plan. We now list is the latest move of making sure that they get 1st to market with the central Bank Digital Currency chinas being the test bed at the moment but they dont want china to start getting traction around that and so you i. M. F. World bank bank of International Settlements and theyre getting ready to put together their one global lud Digital Currency and theyre calling for Bretton Woods 2 so that they can start implementing and rolling out another way to look at this is to characterize this as caught a great race that the big reset of course Bretton Woods was the big reset post world war 2 but what exactly is precipitating the need for this big reset im assuming that the global increase in debt has something to do with it simon yes so everyones maxed out on their credit cards the Central Banks are starting to max out on their credit cards were reaching the new you know the new school of thought is all about modern monetary theory whereby Central Banks and governments can just spend money into the economy hands we can have on limited printing were getting ready in england the bank of england already reached out to all of the clearing banks and said are you ready for negative Interest Rates is that going to cause any problems with your technology because were getting ready for the negative Interest Rates and so you know all of these these different trends are coming together and everybodys you know they already facebook trying to get there is out now weve told the Central Banks getting ready should as they want to automate negative Interest Rates automate tax collection. Whats mesa valence connect the central Bank Digital Currency to you know compulsory vaccines whatever agendas or whatever goals they might have this is really the control that is needed that theyve been pushing for ever since 911 when you know previous evils have been gradually moved and when that in france for Money Laundering laws and this really is the central Bank Digital Currency deciding that they can actually if you will these banks or even leverage titian if they didnt take enough of that old safe houses and sell enough of them to your pension then theyre getting ready for banks being able to collapse consumers not using their money but making them download or not download their central Bank Digital Currency and put all these different Central BanksDigital Currencies caring for one glue a Digital Currency issued by the i. M. F. Bank the International System and some will banks and they want to make sure that dave barry there are a dissenter of that they spelled with a special during writes im now they want to go for policy right and of course you know ive been talking about this really since 2008 you know theres a lot of videos online that size or simon decks on various news organizations talking about the Global Financial crisis of 2008 when the banks are not allowed to fail they took all of those debts on their Balance Sheets and they were bailed out by the Central Banks and they were prevented from having to declare and solve and say here we are 12 years later and the Central Banks have sucked up all that bank debt as much as they possibly can so the Central Banks native bailouts how do you ballad a central bank were talking about and what others have talked about is a 100. 00 trillion dollar or more Credit Facility or Lending Facility and to roll up all that Central Bank Debt into a global Loan Facility and so what youve done is youve dig into it a little bit and youre saying that the s. T. R. The special drawing rights or the even a digital s. T. R. Is not going to work. We look like its going to pay global Central Bank Digital current say and well as you point out deposit ours are not going to be encumbered or at risk the banks will effectively protect deposits but they