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)

For the first time in the history of "The Glenn Beck Program," former President Donald Trump joined Glenn to give his take on America's direction under President Joe Biden compared to his own administration. He explained why Biden's horrific Afghanistan withdrawal was "not even a little bit" like his plan, and why he thinks it was "the most embarrassing event in the history of our country."

Plus, the former president gave his opinion on China's potential takeover of Bagram Air Base, the Pakistani Prime Minister, and Gen. Mark A. Milley, chairman of the Joint Chiefs of Staff.

Glenn asked President Trump how similar the Biden administration's withdrawal from Afghanistan was to his administration's plan.

"Not even a little bit," Trump answered. "We had a great plan, but it was a very tenuous plan. It was based on many conditions. For instance, you can't kill American soldiers. ... You have to understand, I did want to get out. But I wanted to get out with dignity, and I wanted to take our equipment out. And I didn't want soldiers killed. ... What [Biden] did was just indefensible. He took the military out first and he left all the people. And then we became beggars to get the people out. I had a plan to get them out very quickly. But first, the Americans would go out."

Trump told Glenn that his plan included maintaining Bagram Air Base and explained why he would not have left "a single nail" behind in Afghanistan for the Taliban to seize.

"We were going to keep Bagram open," he explained. "We were never going to close that because, frankly, Bagram is more about China than it is about Afghanistan. It was practically on the other border of China. And now we've lost that. And you know who is taking it over? China is taking it over. We spend $10 billion to build that base. It's got the longest, most powerful runways in the world. And China has now got its representatives there and it looks like they'll take it over. Glenn, it's not believable what's happened. You know, they have Apache helicopters. These are really expensive weapons, and they have 28 of them. And they're brand-new. The latest model."

Glenn mentioned recent reports that Gen. Milley, America's top military officer, made "secret phone calls" to his counterpart in China while President Trump was in office.

"I learned early on that he was a dope," Trump said of Gen. Milley. "He made a statement to me — and I guarantee that's what happened to Biden — because I said, 'We're getting out of Afghanistan. We have to do it.' And I said, 'I want every nail. I want every screw. I want every bolt. I want every plane. I want every tank. I want it all out, down to the nails, screws, bolts ... I want every single thing. And he said, 'Sir, it's cheaper to leave it than it is to bring it.'

"The airplane might have cost $40 million, $50 million ... millions and millions of dollars. So, you think it's cheaper to leave it than to have 200 pilots fly over and fly all the equipment out? ... I said, you've got to be nuts. I mean, give me a tank of gas and a pilot and I just picked up a $40 million-dollar airplane. It was amazing. So, I learned early that this guy is a dope. But what he did, is he hurt our country ... and he shouldn't have been allowed to do it. And bad things should happen to him."

Watch the video clip below to catch more of the conversation or find the full interview on BlazeTV:


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In a shocking but underreported conversation ahead of the G7 Speakers' meeting in London last week, Democratic House Speaker Nancy Pelosi admitted that the administration knows China is committing "genocide" against the Uyghurs in the Xinjiang region, but thinks working with the regime on climate change is more important.

On the radio program, an outraged Glenn Beck dissected Pelosi's speech and broke down how — along with the Biden administration's abandonment of Americans in Afghanistan, and the Democrat decision to follow measures of medical "equity" — the far left is revealing how little they really care about human life.

Glenn played a video clip of Pelosi making the following statement:

We've always felt connected to China, but with their military aggression in the South China Sea, with their continuation of genocide with the Uyghurs in Xinjiang province there, with their violation of the cultural, linguistic, religious priority of Tibet, with their suppression of democracy in Hong Kong and other parts of China, as well – they're just getting worse in terms of suppression, and freedom of speech. So, human rights, security, economically [sic].

Having said all of that ... we have to work together on climate. Climate is an overriding issue and China is the leading emitter in the world, the U.S. too and developed world too, but we must work together.

"We have Nancy Pelosi admitting the United States of America knows that they're not only committing [genocide], they're continuing to commit it. Which means, we've known for a while," Glenn noted. "And what does she say? She goes on to say, yes, they're committing genocide against the Uyghurs, but having said that, I'm quoting, 'the overriding issue,' is working together on climate change.

"Would we have worked with Hitler on climate change? Would we have worked with Hitler on developing the bomb? Would we have worked with Hitler on developing the Autobahn? Would we have worked with Hitler on his socialized medicine? Would we have worked with Hitler on any of his national, socialist ideas?" he asked.

"The answer is no. No. When you're committing genocide, no! She said 'we have to work together on climate,' because climate is the 'overriding issue.' The overriding issue? There is no way to describe this mindset. That, yes, they are killing an entire group of people because of their ethnicity or religion. They are systematically rounding them up, using them for slave labor, and killing them, using their organs and selling them on the open market. They are nothing more than cattle. For us to recognize it and do nothing about it is bad enough. But to say, 'we recognize it, but we have bigger things to talk to them about,' is a horror show."

Glenn went on to urge Americans to "stand up together in love, peace, and harmony," or risk watching our nation become the worst plague on human life yet.

Watch the video clip below to hear more from Glenn:


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The fall of Lehman Brothers in 2008 marked the largest bankruptcy filing in U.S. history and economic collapse was felt throughout the world. But now China's own version of Lehman Brothers, Evergrande, is teetering closer and closer to that edge, too. On the radio program Thursday, Glenn Beck gave the latest update and predicted how it will affect Asian markets and what it could mean for America's economy.

Glenn explained why he believes a major collapse that is happening now in China will have a cascading effect into a "controlled collapse," a managed decline that will dramatically change America's economy and the way we all live.

"You will not recognize your lifestyle. Hear me," Glenn warned. "And that's not a right-left thing. That's a right-wrong thing. We're on the wrong track. I'm telling you now, there's new information and you are not going to recognize the American lifestyle. ... It could happen tomorrow. It could happen in five years from now, but it will happen. We are headed for a very different country. One where you don't have the rights that you have. And you certainly don't have the economic privileges that Americans are used to."

"The same thing that happened in 2008 is now happening in China," Glenn continued. "This time, it's going to take everything down. When it collapses, it will take everything down."

Watch the video below to hear Glenn break down the details:

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Justin Haskins, editorial director of the Heartland Institute, joined Glenn Beck on the radio program to expose a shocking conversation between two Great Reset proponents — Klaus Schwab, chairman of the World Economic Forum, and Christine Lagarde, president of the European Central Bank (Europe's equivalent to the Fed).

The way Schwab and Lagarde discuss the role central banks should play in establishing societal norms, determining your way of life, and defending against potential crisis is proof that the Great Reset is upon us, Justin explained. And the scariest part is that they're not even trying to hide it. The entire, unbelievable conversation has been published on the WEF website, which you can read here.

Glenn read an excerpt from the conversation:

Christine Lagarde: At the ECB, we have now wrapped up and concluded our strategy review, which was the first one in 17 years. And I was blessed to have an entire Governing Council unanimously agree that the fight against climate change should be one of the considerations that we take when we determine monetary policy. So at least the European Central Bank is of the view that climate change is an important component in order to decide on monetary policy. ...

Can we arrive at that trade-off between fighting climate change, preserving biodiversity and yet securing enough growth to respond to legitimate demands of the population? And my first answer, Klaus, to be firm, is that to have a way of life, we need life. And in the medium term, we do have major threats on the horizon that could cause the death of hundreds of thousands of people. So we have to think life, first. We have to think way of life, second. ...

So we have to think life, first. We have to think way of life, second. How can we come together to make sure that we secure the first priority, which is life, and also protect the way of life that people have? And make sure that the cost of it is not so high for some people, that they just cannot tolerate it. I think that the trade-off that we reach will probably require some redistribution, because it is clear that the most exposed people, the less privileged people are those that are going to need some help.

"Do you understand, America, what that means?" Glenn exclaimed. "You have elites, that you never elected, that are having these meetings ... deciding what is a legitimate need for you. And telling you that your needs are going to go away in your lifetime. You may not see a time where you get wants again. Just your needs are going to be addressed. Am I reading this wrong?"

"This is absolutely what is being said here," Justin agreed. "She's very clear that we need to make sure that way of life is second to life. We have to save all these people, hundreds of thousands of people are going to die from this supposedly existential threat of climate change. And their wants, and their desires, and their quality of living, all of that has to come second."

"This is a central bank saying this. This is not an elected official, who is accountable directly to the people. This is a central bank saying, we're going to print money. We're going to use monetary policy, to impose these ideas, to rework society in order to accomplish our goals," Justin added, addressing Lagarde's call for "some redistribution."

Will Great Reset elites — not elected by the U.S. — soon be dictating to the rest of the world? Watch the video clip below to hear Glenn and Justin break it down:

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.