united states in the fast few years eric schmidt says china already holds a lead in some areas including some aspects of payment technology and facial recognition while mass surveillance may not be an area where the u.s. needs to be ahead of china schmidt said he's concerned that china has a 5 year lead in e-commerce systems and electronic payments i think that's a very big deal he said it's like you know wal-mart gets the government to pay their employees right wal-mart doesn't play their employees the government pays wal-mart's employees so that the people a wal-mart run wal-mart can take more money for themselves so now it's going on here is that these tech companies one of the american taxpayer to go fund some ai some artificial intelligence for them they don't want to spend the money on the ai themselves because they want to keep it for their stock bonuses they don't want to do any actual work they just want the transfer payments from the fed. put it in their pockets and then if there's a complaint about oh china's leading an ai they're like okotoks a taxpayer we're just company we're just corporations we don't know how to do anything anymore so yet in terms of wal-mart their employees get paid because they themselves the employees don't get paid well enough to not receive food stamps not receive welfare benefits it's not receive free health care through medicaid so that's how wal-mart taps the taxpayer here they're also the actual financial system that we have now is like even if you know the heads of any of these companies wanted to do something wanted to invest in their company the stockholders would not allow that they would be totally punished they would be hit by a hostile like you know paulson are sort of investors who come in and say why is this guy investing in and actually research like what is this guy a madman like let's get rid of the c.e.o. so they can even do that like it's not even set up that he eric schmidt doesn't of course he likes that system because he's done well out of it but he doesn't want to tell the population that this what this is actually what happens why we can't have animation in this country and yet china seems to be able to have so much innovation thus right eric schmidt doesn't want to spill the beans because it's an unpalatable truth you know it's an inconvenient truth that you just can't actually get that innovation in the u.s. anymore because all the corporations that are in a position to innovate are shareholders and pilfering the taxpayers and using financial leisure demain on wall street to line their pockets they're not interested they can't be bothered it's like if paris hilton ran the s. and p. $500.00 she wouldn't really be bothered by all of this and that's the way these leaders at the s. and p. 500 are saying like i want to go find my little doggies out in the park i don't care about the american worker i don't care about the american economy they only care about me me me because i'm a narcissistic kleptomaniac that somehow got this job and i steal every single moment of every single day and that. my job i do want to point out as well china's not just 5 years ahead of the u.s. in terms of payments fame and technology right london i would say living there it's about 10 years ahead of what the united states is so i know for a fact that asia is way ahead of europe so who knows how far ahead they are i think this is this is where you say this is a sales pitch right eric schmidt is trying to get money for his cronies and you don't want to say the problems insurmountable you can't get there from here and so you're saying oh we're just like 5 years it's easy to close that gap just a half a trillion they will close down a little. right it is a sales pitch just like when tim geithner and hank paulson went to congress and said we we don't want to trillion dollars for the 2008 a crisis we want 750000000000 they end up spending 17 trillion now we're going to move on to the next headline about this in a way the tweet image is bitcoin could be the new currency for global trade citibank says press says dorian namo so we often have an image of him hanging here and this is the much talked about reports out of citibank that many academic economists were very upset with but it's basically what citibank is saying and they're one of the biggest recipients of bailouts in american history and part of this financial system whereby you know china's eating their lunch and payment system because the likes of citibank never bothered to get out of bed they wouldn't get out of bed for $10000.00 you know they they can't be bothered to come up with any innovations well 9 they were in a report entitled between at the tipping point it's hard to evolution of bitcoin from a form of payment to its current status as the store of value the author's forecast that bitcoins core properties combined with his global reach and neutrality could see it morph into the currency of choice for international trade in around 7 years stopping right now because the transaction. is the settlement so you don't need citibank obviates citibank to make citibank redundant as are all banks redundant with bitcoin i can trade with you as a currency and it doesn't require any bank doesn't require a central bank and they've got a little bit reverse are saying they started off as a means of payment and people are looking at it as a store of value but in fact it started off as a store of value and now it's morphing into a means of payment that's the whole history of money so citibank should know at least the history of money and how money comes into existence but nevertheless a good effort and i applaud them for at least recognizing that they're about to go out of business but being involved in between early in those days there were many participants who thought it was like we're going to compete with pay pal we're going to p. compete with it's going to be settlements you know it's going to be used for as a means of exchange like that as your point out it was actually always a store of value and in fact they point out the perceptions they say perceptions about what makes bitcoin important continue to evolve and create new opportunities long creasing as perception towards becoming mainstream is becoming more mainstream because people's perceptions of the thing that the fed drawing power is always trying to manage perceptions i think that's what they fed speak it's all about they go out there to speak to the market and say don't worry we're going to take care of inflation don't worry we're not printing too much money you might perceive it if you look over there like a food cost like you might perceive it as a situation but listen to me. you know massaging your perception about the situation well here in the situation as being perceived as being a better store of value than the u.s. dollar and perceived by international participants in the global market anybody who has anything to sell anywhere on any confidence or any country on earth they're perceiving this as a more neutral. better to use settlements layer right there is $15.00 trillion dollars a day in forex market foreign exchange and that can be completely a replaced with a big coin as the base layer and we've seen that demonstrated now by sending currency from country to country starting off in one currency arriving at the destination in the local currency instantaneously virtually no cost eric schmidt pointed out that china he lied a little bit that china is only 5 years ahead of us in payment technology you know in london for well over 5 years ago you could just tap your card instant payment you could transfer it's a somebody instantly at another bank and another bank account here it's face up to 6 days to transfer from a bank account in america to another bank account while they use the pony express we should be feeling good about those ponies right so here this is also the same country that oversees the global settlements layer so everybody else in the world is already on a much faster system. now we have to go to the global par. lomo asses having to deal with that system so city points out that the report explains that big point in the role of a global trade currency could be used by importers and exports to pay for goods and services directly simplifying the process of international trade a decentralized crypto currency may be preferred to a central bank digital currency it argues because no government or outside entity can take steps that might affect the supply of the trade currency helping to decouple trade from political considerations right so they just threw the idea of central bank digital currencies under the bus they're like central bank digital currency is by definition our central therefore they cannot compete with because so citibank again just to another industry out of the bust yeah i mean because of course the central bankers are going to look at this threat the competitor a better competitor of big quine and say well how do we act how do we would like maybe we just formal. block chain that's all you need right that's what it's all about and no it's the neutrality and the permission less nature of it censorship resistant they cause this is another thing that as you know whoever controls that system and has a dollar system right now like obviously they were pretty fair and open about it when they were the world they were out competed everybody when we produced all the semiconductor chips when we produced all the cars when we produced all the heights act but now that other countries are are way ahead of us in some aspects well like well you know what we're going to slow your payments down that's how we can outcompete you we're going to make it harder for you to even trade with anyone he said this is what citibank to say they're agreeing with us once again for it was the right citibank was wrong until now yeah i mean it's a remarkable that it's an indictment on the bank their very own bank it's like a mea culpa as like you know it refining it to admit something to everybody in the world what we do here is redundant slow costly unnecessary and overly expensive and a drag on the economy and we're sorry we're sorry sessile citibank is saying yeah well they're saying way eric schmidt said it's like we can't do ringback it ourselves taxpayer you better do something about it or or whatever we need another bailout so it's out there that wasn't out biggest bailout history now now we need another bailout because i have to work on my golf game that's their that's their pitch to america ok buddy sure who do i write the check out to and by the time you get it china and the rest the world will be another light year ahead well. the 2nd half much more coming your way. one of the worst of a mass shootings in america was in less vigorous in $27.00 the tragedy explodes. live the real last big women you say on the tuna fish are controlled by can see you know the. reveal. really and now it's part of the stand the sheen of the american public barely remembers that happens just shows you the power of money and. the powerful showed that true colors when the pandemic hits the most contagious contagion that we've seen in decades and then you have a mayor who doesn't care so here's caroline goodman offering the lives of the vegas residents to the control group. deep indifference to the people could have been saved if they were to take an action absolutely she. gives a slot machines do they use is a money machine huge cash register that is ran by people who don't care about people's lives being lost. this is crude oil. so they need to actually physically hold it out of it you would have well well. there's a lot of money with the oil and with that comes. a lot of a lot of people from all over the country. if you don't make a $100000.00 a year. as a minimum there's an issue. here in the. they work well 16 hours a day it's hard work for the workers not used to work and so they want to relieve their stress of how do they relieve their stress these may move out. of that comfort many. people have been murdered here people can raise their massive drug issues up here we have a boom you have everything else that comes along with money. but going back to the kaiser report i'm max guys it's time to go to chris fenton author of feeding the dragon chris let's get into it as you point out in your book feeding the dragon hollywood where. spent most of your career is really set the tempo the global tempo of our culture seems to be a i just saw the china report of the biggest box office month ever in history and that theaters are full what's going on it's obviously the business day you and i experienced met in hollywood and it's a really unbelievable situation where lasts months february which obviously had the chinese new year national holiday and ne'er the month just south did almost $2000000000.00 us in box office it's the disappointing part about that is the amount of money that hollywood movies grossed early next year it was a whopping $14000000.00 of us there's 2 things that i've been very vocal about on the hollywood front with its engagement to china one is obviously the cowtown in this if you a secret smith of our freedom of speech and censorship rights here in the united states number one but number 2 is one that can be extrapolated to every other business that's engaged with china as the united states and our western allies and that's the fact that in order to get access to that market we had to placate the government of china to get in there in the 1st place and part of that was the military to teach our processes to you text wops to create joint ventures and to get them to understand how we actually create these products and services that their consumers want and now at this point they are replicating it themselves and they are 18 the market away from our own american companies because we've taught them to well so eric schmidt farmer a go golf chair he says that china. as a 5 year lead over the us and e-commerce payments china is already working on 60 whereas u.s. has yet to roll out 5 days the us has now 5 day the product from verizon is a hoax they are half ivy so we borrowed 4 trillion dollars last year increased the money supply by 25 percent it's aims like where rail really far behind on technology and are borrowing too much money i mean what how is this playing in washington are the alarm bell sounding or are they a slip of the sweats your audience is awesome super insightful super tough guy me and the engagement with them has been a lot of fun and i've learned a lot so 1st of all i would love anybody this listen this he's found me on the dragon fear and give me whatever you want as far as opinion criticism because i'm working on another book and we're actually adapting my book my present book into a documentary and i want to focus on how we can remedy this issue how we can unite a very divided america in order to go after this chinese challenge that we're facing and to answer your question and go upon what eric was talking about one of the things that shine it does is they play along a play a 25 if the 100 year game of chess while we play checkers all day long on share price fluctuations on a day to day basis quarterly results 2 to 4 year old action cycle successor and not a real problem for us to invest in infrastructure and for us to invest in our indeed they are doing achree and by the way if you want to look at case studies the best ones to look at right now are 993 when they said they are not going to produce a paper our g.p.s. or our. satellite systems are going to create their own and yes what they have in 1997 they said they are not going to participate in. world wide web it wanted to create their own an eye for kids from the rest of the world yes what they have they're doing the same thing with 5 g. and 60 and they're going to do it with microchips on their 2025 vision we are getting left behind and we need to spark not one thing about donald trump with you like them or hate of each hold the fire alarm and said we need to wake up to this china challenge time is running out and we need to get serious about it whether you know why any serious to it or not is one thing to debate what he did do is pull the fire alarm we need to keep all in it we need to implement change now if we trust the quid pro father was transfigured cheap stuff you know we don't work you know he gets asked for payment from the government they sent us all this free pass to buy chinese goods which are super cheap so why are what's my incentive to get to up an estimated go back into the factory work 60 hours away an hour and everything more expensive because they can't get it from china anymore so my quality my life in a crash what's the point of that if chinese i want to do all the work and get an a government want to get us off free money was my incentive a n. exchange they're going to read cut it's a wonderful life and make jimmy stewart a chinese actor i don't i'm fine with that i don't care so what what's my what's my upside and that's i mean we have off shore essentially deflationary pressures because of the cheap labor over there and that does allow us cheap products and services the fact of the matter is that all your audience knows this really well because they're getting super wealthy off of it and it's why it coin is rising might it is if there is a real push for china to remove a u.s. dollar as the world's reserve currency and wish that happens this whole great oh you don't have to work everything is cheap we can just print money into unfit any that all goes away and then the really tough start happens on the resat. and unfortunately at that point china's going to have a big head star on what that new world norm is going to look like and we're going to be left behind in the dust this is not something that we can literally sit and go hey look at how great our lives are today it's just going to continue like that that is not the case we've seen many canaries in the coal mine there's lots of experts that are now coming out about it and even those little sort of oh what do we care about censorship of hollywood or whatever it is well guess what is tripling throughout the world air $800.00 how we tell stories for other markets including our own not just bears and that is going across the board to every other american company just like they do with how you would they're doing it with mary out and saying you've got to take taiwan off of your maps they're doing it with activision insane you can't show the trailer for your latest game because it has a little segment of the tiananmen square massacre in this incident and they are doing it with every one of our companies on freedom of speech rights but even worse they have taken our ability to be best in class what we do they have learned from it is a forced us to teach them how to do it and now they are being nice and our own game in the stuff we were already world leaders in and they're using that in order to be world leaders and things like you said 60 which we haven't even started to think about yet president biden has opted to do nothing about mohamed bin salam chopping up the washington post journalist and flushing him down the toilet. later it's the same they really care about these issues chris i love i wish they did let me hit that really quick ok this is really interesting to me because i if people have read my book i did a week out there a little bit i happen to be a democrat even though i don't really affiliate year party i'm a nonpartisan yes but if you look at the way we deal with m.b.a.'s in the. we punish in a way we need even approach to human rights issues there it tends to be something from the left and they go after because it's energy trade it's defense contracting military industrial complex that saudi is made up of when you look at china it's more left leaning stuff so the right gets tougher on it right you got the ninety's and you've got the n.b.a. you got hollywood you got apple and starbucks more liberal leaning corporate interests rates what we need to do is combine forces and get a common shall and sort of protocol were actually bonding over something that's not this cultural warfare and who believes in gun rights and god and all that kind of stuff we have a real threat here we need to unite on it e.a. solidarity formed united front to create the leverage to fix this to your point about the u.s. dollar they're not as a stand back and meller. very famous money manager is said is going very very sore at the dollar and along asia. money flows to where the returns of the greatest and some money matters but industry does a sale unfazed by these issues chris it's disheartening because quite frankly our capital markets and arm vester base is really would scouring the engine of china so . you know i have no problem with capitals and in fact i love cat smell of free markets and as united discussed both online and offline i don't even know if we really have capitalism it's more of a cronyism it's a situation that i think is overtaking our capitalist system but let's pretend we have capitalism one thing that we need to think of in regards to the way we engage china now is on a patriotism 1st level and then capital as long as we start to realize that our capital is the base of our capital is the ace of the freedoms that we have and is yes i have the foundation of a strong republic elite i have a united states of america that is built over the last 100 years in the security interests and the welfare of the next capitalism will continue to flourish the problem is we've been selling out a nation that is allowed us to have this form of capitalism just for returns on quick quarterly results in key analysis and revenue growth center pumping up our stocks and making investors rich it's as simple as the s.e.c. for instance if you look at the way china gets access to our capital markets staging not have to apply the same accounting standards as every other company around the world why because they hide behind state secrets laws which they say apply to them because technically all these private companies are as so we source state owned enterprise it's got to end that if you want access to u.s. capital markets if you want access to private eye. we if you want access to any activity we need to in olden syfy ists even stronger the committee on foreign investment in the united states and we need to allow the assy seed to control these chinese companies and regulate in the exact same way every other company gets access to our markets which would be more effective more impactful for they the us government to get quote tough on china or be for the u.s. government to get tough on wall street that's in gave stand all kinds of worthless stock buybacks floating companies up what that hollowing out industries private equity rating these companies making them less competitive or not competitive trading zombie companies rewarding zombie banks and of serial recidivists who are lawbreakers on last free right so the question is what's what's where we get the biggest bang for our tax buck clean up with the wall street trucks or try to manage china better well worth a better but dollar spent dress there's a real need for the way we construct capital markets the way we created our exchanges way back in the day but we have definitely lost our way in a lot of stacks and on top of it a regulator in the revolving door and a curse between wall street and regulators is something that needs to get specs but the fact is miley is china and if i want to make a nonsense out wall street subject i can go on all day long because it affected me and my family really hard and i'm still upset about it that's something that i can't get rid of and i'm still. but the fact is i'm also about the way we're addressing china and the fact that there's so much money being made on wall street by trying to put their heads in the sand and pretend like this isn't a long term issue that's going to bite us is ridiculous and we need to address it from the government level and say these are the ground rules moving forward and there's simple simple fixes i mean don't you tio designate china as a developed nation. is just simply one that will start to rectify be an error this number 2 is the accounting practices that the f.c.c. needs to start lying to chinese companies number 3 is to make sure they were actually overseeing these companies that are trying to get listed on on the u.s. exchange and scrutinized her all their paperwork to make sure it is right now for both retail investors and large fish sure out there trying to make a lot of money on it i mean you look at chick stock and big private equity interests intake in that light and situation and the fact is they were just trying to lay off a national security issue into something that created profits have been a full put feeding the dragon is the title of the book chris fenton the author thanks for bringing a kaiser report by the way max sorry you got me all wound up but this is really serious stuff and we do have a ticking clock everybody please you gauging the book at me out at the dragon theater love being on the show have me back any time yeah well do that's going to do it for this edition of kaiser report was made back skies are safe there but i think i guess chris fans and the next time by all. her. some control from middle class to homeless overnight muslim are very hardworking people who want to get ahead that either have some some health issues or have some of it out of trick about luck a full time job won't always pay for a place to live and missing just a month's rent can get you with victim to gunpoint if anything bad happens to any thing that just throws your budget off slightly. you better catch up real quick or you're going to have a judgment of possession against you and get addicted anyone that's homeless is history like garbage people look at you like a monster or someone bad or you chose to be there most of the time it's not the case see how it is to be pole in the world's richest country. the or tactics that can be used to get innocent people to confess to crimes they didn't commit i don't even think people in the us really get that the police are allowed to lie to the person who falsely confessed actually came to believe the lie that they were told about their own behavior once a false confession is taken the case is closed nobody really can tell the difference between a good confession and one that isn't. joined me every thursday on the alex salmond show and i'll be speaking to guest of the world of politics small business i'm show business i'll see if that. breaking news this hour german sister channel launches legal action against leading german newspaper following a piece accusing the network of spying on russian opposition figure alexina valmy. also this hour a french schoolgirl admit she made up claims about. her story sparks an online hate campaign against the teacher last year leading to his beheading. the e.u. chief puts the blame on astra zeneca for vaccine supply failures with just 10 percent of orders delivered. and says how the kremlin brands fresh u.s. claims of moscow meddling this time to supposedly discredit american vaccines in favor of a.