Are We Fighting World War III With Currency?

Financial expert Chris Martenson with PeakProsperity.com joined The Glenn Beck Program on Monday to discuss what Glenn calls the largest currency war in the history of mankind.

"I believe we are in a global currency war, the Third World War of currency. First World War, currency war, was World War I then World War II, and this has been going back and forth with Jina since Ronald Reagan. But now Donald Trump is talking about trade barriers and specifically taking on China as the biggest manipulator of currency, which historically, they have been," Glenn said.

Instead of dealing with reality, we've decided to play the money game. What will it look like when the chickens come home to roost?

Read below or watch the clip for answers to these questions:

• Who is the biggest manipulator of currency?

• What's the impact of regulations and workplace safety laws in the US?

• What's the one thing credit bubbles can't stand?

• Did Italy do a Brexit this weekend?

• What's the real game being played right now?

Below is a rush transcript of this segment, it might contain errors:

GLENN: Hello, America. And welcome to the program. We are in, what I believe is the largest currency war in the history of mankind. And it's the most wonderful time of the year. So this is all good stuff.

Chris Martenson, our currency guru is joining us to talk about what this means for your finance. Put things that you're hearing in the news like tweets about Jina, what does that actually mean to you? We begin there, right now.

(music)

GLENN: Beginning of next year, and throughout the year, I want to give you a handle on what I believe is coming, just as a student of history.

History doesn't repeat itself, but it rhymes. And I believe we are in a global currency war, the third world war of currency. First world war, currency war, was World War I. Then World War II. And this has been going back and forth with Jina since Ronald Reagan. But now Donald Trump is talking about trade barriers and specifically taking on China as the biggest manipulator of currency, which historically, they have been.

But we have decided to play the game all of these years for a reason.

You may want to stop playing the game. But I want you to understand what that means so you don't go in and then when the whole world falls apart, you go, "Well, why the hell didn't someone tell me this?" We have Chris Martenson on with us. Our guru from peakprosperity.com. Welcome, Chris. How are you?

CHRIS: Oh, I'm doing very well today. Thanks, Glenn.

GLENN: Can you put into perspective the -- the Taiwan and China talk about being the manipulator of -- the largest manipulator of currency?

First of all, is it true, or are we the biggest manipulator of currency?

(chuckling)

CHRIS: I think the answer is yes. Everybody is manipulating their currencies at all times. And there's a good reason for it, if you can keep your currency weak or low, relative to your trading partners, it makes your goods more attractive. So if somebody has a widget to sell and you can keep your currency nice and low, well, you can sell more of them. China has been on an absolute industrial tear. They've been exporting like mad. So the thinking would be, in a normal world, their currency should rise in value, relative to other currencies, and that hasn't been happening. And so the charge is leveled that China is manipulating its currency to keep it low, to give it an unfair advantage, to give its manufacturers an unfair advantage. That's what Trump is talking about.

GLENN: So, I mean, really, we have to cut ourselves a break. The reason why America doesn't make the world's goods anymore is partly because our currency was always so strong that the rest of the world couldn't afford to buy our stuff. And we bought everybody else's stuff because it was good or good enough. And it was really cheap. We couldn't compete because of the value of their currency.

CHRIS: Well, indeed. That's part of the story, and the other part is that we give ourselves lots and lots of tasty regulations and workplace safety laws.

GLENN: Yes. Correct.

CHRIS: And all sorts of things like that.

GLENN: Correct.

CHRIS: And China doesn't burden itself in quite the same way. So they can compete.

GLENN: Correct.

CHRIS: So, yes, they have cheaper labor. But that's just part of the story. The rest of the story is, yes, they are keeping their currency nice and low. And so this has worked out really well for the United States. Sometimes people say, "Chris, the United States doesn't really export anymore." And it's not true.

We export a lot of dollars. We run a trade deficit, that if it was its own economy, would be around the eighth or the ninth largest in the world. It's an astonishing number that the United States imports more than we export. When we do that, it means basically we're exporting those dollars, and we're counting on places like China to hold on to those dollars and not send them back home.

GLENN: Why is that important?

CHRIS: Well, so what they have to do, if they're holding the dollars, what do they do with them?

The central bank starts to accumulate them in China. And so they can't just hold on to dollars. So they hold on to treasuries instead. And because they're buying our treasuries in the United States, what happens next is that keeps our interest rates low.

So if China suddenly decided to reverse this policy -- let's say Trump comes out and labels them a currency manipulator, goes after them hard, China could just turn around and decide to start selling all of those treasuries. And if they do that, our interest rates will rise.

Well, you want to talk about World War I, World War II, where are we in this story? We're in the middle of the largest credit bubble in all of human history. One thing credit bubbles really can't stand is rising rates of interest. That's what would result if China started selling its treasuries.

GLENN: Chris, over the next few weeks -- and I would like to bring you in so we could spend a day before we talk about this on the air. But I am more and more convinced that -- first of all, do you believe we're in a World War III scenario of just a currency war?

CHRIS: Well, we are -- everybody -- all the central banks are doing everything they can to try and keep this whole thing stitched together. And as they do that, Glenn. They're creating larger and larger imbalances. The imbalances in Europe are large enough to tear it apart. They're very afraid of the rise of populism over there. They've seen this story before.

The difference between what is happening with the Chinese, the Japanese, the United States central banks, all these enormous imbalances are building up. And nobody has a plan for how to resolve them. If we don't, there's a good chance they resolve chaotically, which is just a fancy way of saying, "Stuff just breaks down, and then we see what happens."

GLENN: Yeah. What does it mean for Italy this weekend? Italy had the opportunity to solve things, if you will, or at least still keep playing the game. They kind of did a Trump or a Brexit this weekend and said, "No," to the plan of their Prime Minister over there. So now he is stepping down. And it looks like it's, again, another Brexit.

What does this mean?

CHRIS: This -- you know, a lot of people -- I've seen a lot of ink written already that says, "Well, this is just people not understanding the bigger issues. And maybe they're a little bit racist or more like Trump or something or something."

But the truth is, Glenn, that the people of Italy have been suffering for a long time. The average people have been suffering for a long time. I think it's been since 1998 since their economy has been growing. And the people of Italy have had to endure with less and less and less. And they've just been getting squeezed. So I view this again -- they call it pop, like I say, this or that. Really, it's just economics. When people find their daily lives getting harder and harder, it creates social tension.

This was another opportunity for the elites this time in Italy, to figure out how they're going to start listening to their people.

Renzi was deciding not to do that. And the people of Italy, very convincingly -- nearly 60 percent, I think, is the last number I saw, said, "No, it's time for us to be part of this story as well." That's really what's going on here. And the bigger picture, the thing we can talk about over the coming weeks is, the only question that has to be answered at this stage of the credit bubble is: Who is going to eat the losses?

GLENN: Explain that.

CHRIS: Well, when something can't be paid back, it won't be. And so the banks are always trying to figure out how they don't get to eat the losses. They're always looking for a bailout in some form, or in this case in Europe, now bail-ins. But somebody's going to have to take the losses.

So in the case of Italy, their banks have 360 billion euros of non-performing loans. Those are loans that aren't being paid. That's 20 percent of Italian GDP. There's no possible way that they can cover that.

GLENN: Oh, my gosh.

CHRIS: So the question now is: Who is going to eat the losses? And the politicians would love that to be the taxpayers. They create inflation, which is a stealth way of stealing that from all the people. Sometimes they just do the bailout and make the taxpayers pay directly. But the people are starting to say, "No. This is unfair. We don't like this. And the losses should actually belong to the people who made the bad decisions. Maybe that's the banks. Maybe that's the politicians." So this is the real game that's being played right now.

GLENN: But how do they pay for it? How do the banks and the politicians pay for that? They can't. How are you going to give that to the politicians?

CHRIS: Well, they're going to have to suffer with austerity so that the government is going to have to say, "Look, we can't just dip into the coffers for this. We're going to have to tighten our belts." Guess what, every one of the politicians who was involved in that gets swept out of office. It's a real career killer when you have to tell people, "It's time to pay for all of the bad decisions."

GLENN: You know, I've been reading a lot about the -- the gold standard and -- and how we kind of got off it. And it's really much more complex. And the trade balance is so complex, and yet elegant in the way it kept everything balanced. But we don't do that anymore.

When the Weimar Republic had hyperinflation and they inflated their way out of things, first of all, they didn't inflate their way out of the reparations that they were supposed to. A lot of people think, I believe, that, oh, we're just -- the world is going to forgive America of this big debt. I don't think so.

Chris Martenson, do you believe they will?

CHRIS: No. How could they?

GLENN: Yeah.

CHRIS: The world isn't an entity. When we say, you know, there's $7 trillion of US money out overseas, it's not just in a spot in some central bank where they can flick a pen. It's sitting in a French pension. It's sitting in the endowment for a small school. It's in people's 401(k)s and retirement accounts. It's parked all over the place.

So either everybody has to agree to forgive that, or we get back to the prime question, which is: Who eats the losses in this story? And the governments always want to try and inflate it away. That seems the simplest. It spreads the pain over a great many people.

But what your listeners need to know is that this is a game. This is a game that's been played for a very long time. And it's basically heads we win, tails you lose. And that's what's creating the populist backlash. People are starting to figure it out. We have information now that we can access and go, "Oh, is that the game." Right?

It's not like it was in the '50s, when you only had one newspaper. Now, we can go to other sources of information and say, "Oh, I see what they're doing here. This really isn't fair." And so that's what we're getting down to is that when people experience deep unfairness in their lives, they don't like it. And that's really, I think, a better explanation of what's happening than, you know, simple ignorance or something like that.

GLENN: Okay. So, Chris, when you -- we'll have you back. And I want to talk to you about the way the Weimar Republic stabilized their economy after hyperinflation. They attached it to land.

Can you tell me at all, when you come back, about what a scenario like that would mean. Does that mean the government takes the land? Do they do that with just the public land that they hold? Would they take our mortgages? How does that work? How did it work before? Because I'm more and more convinced -- and I'd love to hear your opinion on this now, that the central banks and the central planners actually thought the lessons from World War I, the Weimar Republic, and World War II, they think those actually worked. Didn't they?

CHRIS: Well, they kind of did. And this is a really important topic. It will take a little while to explain. But it's summarized like this: If you read all the accounts of what happened in the Weimar Republic, all the popular books and all the stuff in the library says, "Wow, there was a lot of wealth destruction. Look at all these middle class, upper middle class people. They lost everything."

When you really look at what happened though, no wealth was actually destroyed. Because real wealth are the factories, the farms, the streets, the cars -- it's the real productive wealth of the nation. That didn't go away. What happened? It got transferred.

GLENN: Yes.

CHRIS: And this happened in the 1920s and '30s in the United States as well. All these people owned farms. They went bust because the mortgages all went bust on them.

And when the dust settled, if you watched carefully, who owned the farms changed hands. So that's what I'm trying to alert people to, that this idea of what we're facing is not so much of a wealth destruction. It's a wealth transfer. But first, you got to understand what the real wealth is. And it's not the paper.

GLENN: Okay.

Let's start there next time you're on. Chris Martenson from Peak Prosperity. Thank you so much. Appreciate it, sir.

CHRIS: You're welcome. My pleasure.

GLENN: You bet.

Featured Image: Fake US Dollar and Turkish Lira currency often used as a novelty gift is seen for sale at a tobacco shop in a market on December 5, 2016 in Istanbul, Turkey. As the Turkish Lira plunged to record lows in past weeks, President Recep Tayyip Erdogan in a speech Saturday said his political enemies were trying to sabotage the economy and urged citizens to convert their foreign currency savings into lira or gold. Borsa Istanbul, Turkey's main stock exchange, became the first institution to act on the presidents call, converting all it's cash assets to liras. Some local businesses in a show of support began offering incentives to customers who had proof of changing foreign currency to lira, with rewards such as free restaurant meals, free gifts and discounts on purchases and one funeral owner in the province of Bursa promised to give free tombstones to people who had protected their lira. (Photo by Chris McGrath/Getty Images)

The House approved a new aid package for Ukraine of nearly $40 billion, which will increase the total U.S. funding for Ukraine's war efforts to a whopping $58 BILLION since March, if the package passes in the Senate. Meanwhile, DHS Secretary Alejandro Mayorkas testified before Congress that the Biden administration is considering diverting resources away from an already-struggling VA (Department of Veterans Affairs) to deal with the border crisis.

"I am not making this up -- this will [make] your head explode," Glenn Beck said in the radio program Thursday. "They are going to divert costs; the Biden administration is taking money from the VA. Now already, our veterans get seconds, and we are [considering] diverting VA funding, and doctors, and nurses, away from our vets and to the migrants at the border, so we can take money that we don't have, $58 billion, and send it to Ukraine. What the hell is wrong with us?"

"Now, some Republican lawmakers are attempting to fight this," he added. "But, most people haven't even heard of this. This is how the atrocities at the border go unchecked. Biden sweeps it all under a rug. The mainstream media covers it up. And, meanwhile, people suffer and die. And in this case, it's not only the people on the border, but it is also our veterans in VA hospitals."

Glenn went on to detail the unreported deadly consequences of Biden’s border policies which have led to enough fentanyl to kill millions of Americans pouring across the border and terrorists having found easy paths into our country.

Watch the video clip below to hear more from Glenn:

Can't watch? Download the podcast here or listen to the episode highlights below:

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Corruption, greed, and death. This is what the Left’s border policy is REALLY about, not the humanitarian effort they claim it is.

On tonight's episode of "Glenn TV," Glenn Beck exposes the groups benefitting from the border chaos under the Biden administration. A leftist money supply flows to NGOs on the border that are now taking the roles that the government should be filling with immigration and helping immigrants to flood into the U.S. Glenn asks: Why is the U.N. funding the flow of migrants to our border and subverting Congress? Why are former Biden staffers working for “non-profits” that are now getting exclusive, HIGHLY irregular multimillion-dollar border contracts? Worse than that, the consequences of Biden’s border policy have now turned deadly. National Guard members at the border are dying, fentanyl from China pours across the border, and terrorists have found an easy path to enter our country.

Finally, Glenn asks Texas Rep. Chip Roy if it’s time to impeach DHS Secretary Mayorkas for his negligence that is costing American lives.

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I can no longer relate to the modern pro-choice woman. I don’t want to shout my abortion. I want to pretend it never happened. Up until the SCOTUS leak, I had done a pretty good job of burying my 20-year secret. But the Roe v. Wade information earthquake triggered an eruption. I can no longer pretend to be ambivalent or leave it to blue-check pro-lifers to speak for me. My days of repeating the “safe, legal, and rare” mantra like a good, GenX libertarian feminist are over.

Some pro-abortion activists call their life-ending procedure “self-care,” like they just booked a hot stone massage or a facial at a spa. This is a polite euphemism many women tell themselves – not because we are cold-blooded killers, but because it’s how we survive. We HAVE to lie in order to justify what is actually taking place. Denial is a protective coating, a barrier from the truth. Remember, any woman born after Roe v. Wade has been programmed to believe that abortion is a natural-born right. “It’s legal; therefore it must not be evil. This is a medical procedure. Women do it every day.” Planned Parenthood has a nice way of describing abortion on its website: “A doctor uses a combination of medical tools and a suction device to gently take the pregnancy tissue out of your uterus.” “Gently take the tissue out.” Benign euphemisms that wrap our hearts and minds in a suffocating cocoon. Benign euphemisms to keep us in line.

I was raised in the Bible Belt and to believe that sex before marriage was the gravest of sins. You’d be better off robbing a store by pistol than to be caught fornicating with a boy. And yet I did fornicate with a boy. No boy I’d ever be proud to bring around to my parents. I never gave him the option to talk me out of it. I just demanded he pay half for the procedure and never speak of it again. I told myself it would be easier to survive the hidden shame of the abortion than wear the shame of my sin on my belly for the next nine months.

...the pill I took made an ugly, painful mess, and it didn’t finish the job.

I took the so-called “easy” way out at six weeks along and swallowed a pill I got from some abortionist who gave me the creeps. He was no medical saint like the one portrayed in “The Cider House Rules,” nobly saving women from coat-hanger abortions. The doctor in my story made a quick buck at the expense of terrified “good girls.” Years later I would learn he kept aborted fetuses in buckets and was under investigation for shady medical practices. I couldn’t leave his clinic fast enough, but at least I wouldn’t have to miss work or skip my college classes. I could finish my degree and still make my parents proud. How convenient. But the pill I took made an ugly, painful mess, and it didn’t finish the job. Now I had to see a real obstetrician, get an ultrasound, and deal with the aftermath.

This doctor’s office was nicer. It had bright lights and pink walls. Although my doctor was professional, I still felt the quiet judgment in her voice. I refused to look at the image of my tortured fetus on the screen. I knew what it would mean if I did – my feminist career ambitions would lose the battle to my soul if I looked at that baby. The doctor told me the fetus was still viable but likely mentally damaged. The “kinder” thing to do would be to finish the job at an in-clinic abortion. End the fetus’ suffering and end my own self-torture. I woke up from anesthesia to learn the abortion was complete. It’s over so quickly, but the internal conflict hangs. And hangs.

You find weird ways to cope. Not long after, I discovered an abandoned robin’s egg, still perfectly intact. I wrapped it in a sock and carried it with me for over a decade. If I couldn’t do right by my own child, maybe I could keep this unhatched egg safe. Eventually, I had to come to terms with the fact that the bird egg was dead, and I got therapy. He was a good New York psychologist. Secular, liberal, tolerant. He helped me to forgive myself, but I always knew who I really needed to ask for forgiveness …

It’s easy for a young woman with all those stockpiled eggs in her ovaries to be pro-choice. She can toss away the miracle of life like a rotten banana or a bruised apple because it is easily replaced. It wasn’t until I was forced to confront the mortality of my own fertility that I felt the full force of my regret.

But I do not write this letter to achieve redemption or to be the new face of the pro-life movement. You will not see me pleading with women outside an abortion clinic. You will not see me protesting with a cutesy, homemade sign at the March for Life. You will not see me sparring on Twitter, confronting baby-killers with cold, hard facts. For now, you will not even know my name. I suppose this is not very brave, but my story is not complete and God’s work in me is in an active state. Mine is a modest mission: Maybe if I’m honest about my own wounds, I can help other women like me to heal. Maybe I can love the terrified, knocked-up woman in the Bible Belt who believes the best worst lies our society has ever told, better than any conservative talk show host ever could.

The SCOTUS leak ripped a band-aid off a festering 50-year-old wound.

The SCOTUS leak ripped a band-aid off a festering 50-year-old wound. It’s naive to think we will fix this mess for the unborn overnight and deprogram men and women plugged into 50 years of slick, well-packaged lies. Slavery was legal in the U.S. for over 200 years before we fought a war to end it. And it was another 100 years before we ended state-sanctioned racism.

When it comes to the issue of defending innocent life, I know it’s hard to be patient. This is a clear battle of good vs. evil for many on the right, but you need allies like me – the former “safe, legal, and rare” pro-choicers who are afraid to come out of the shadows. Afraid to become a political prop in the culture wars, but willing to do the quiet missionary work in our back yards.

I hope for the day future progressives look back in horror at today’s progressives fighting to keep abortion on demand. I hope for the day the New York Times publishes the pro-life version of the 1619 Project. Maybe they’ll call it the “1973 Project,” “whose mission is to reframe the country's history by placing the consequences of abortion and the contribution of the pro-life movement at the very center of our national narrative.”

Until that day, I want to help these women to be braver than me. To see beyond their impossible tomorrow. If I had allowed someone the chance to help me be brave, I might not have had the same successful career, but I would have a 20-year-old son or daughter in whom to invest this unexplained overflow in my heart.

Dear EV drivers: Think you're safe from soaring gas prices? Think again.

Image source: (Left) Smith Collection/Gado/Getty Images (Right) Video screenshot

Diesel fuel prices have surged to record levels, adding to already record-high inflation in the U.S. But most Americans don't drive cars that run on diesel, and many have turned to electric vehicles (EVs) to avoid the ever-increasing pain at the pump. So, how would diesel supply shortages — and the resulting sky-high prices — affect you or your budget?

On the radio program Monday, Glenn Beck explained why every American should be concerned about the rising cost of diesel.

"Diesel fuel is the fuel that powers the economy," Glenn began. "How does that work? Well, let's start over in China. You want something from China, you have to put it onto a big boat, a slow boat from China, and that's powered by diesel.

"Then, it gets to our docks," he continued. "You know all of those big cranes and everything else that take that crap off of the ship and then put it on the ground? Run by diesel. And then the forklifts that come and pick it up and then bring it over to the train, those run on diesel. And then the train, those engines, they run on diesel. And then the trucks that get it halfway across the country from the train where they're picked up again by the forklifts, run by diesel. Then they're put into another truck, also run by diesel."

"I sure hope all the people bragging about their electric cars as gas prices skyrocket have a backup plan for their food too. Because as diesel prices go crazy, so does the price of EVERYTHING," Glenn posted on Twitter.

Watch the video clip below to hear Glenn explain how diesel supply shortages will affect all of us:

Can't watch? Download the podcast here or listen to the episode highlights below:

Want more from Glenn Beck?

To enjoy more of Glenn’s masterful storytelling, thought-provoking analysis and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution, and live the American dream.