So, what's going on is the currency

[music] of power has changed. Power is a

function of land back in the day. Why?

Because land is where you get the

commodities [music] that you can sell,

and also rural areas is where you're

going to get your peasant conscripts to

[music] to field your mass armies. Well,

once wealth is a function of commerce,

industry, and trade, it isn't land

anymore. And this upends [music] the

world. If you think about the world

today, who's rich, who's poor, who's

powerful, who's not, it's often the

degree to which the country is

industrialized.

And the Industrial Revolution opens up

the beginnings

>> [music]

>> of a global trading order, where you're

trying to through trade negotiations to

minimize [music] transaction costs so

everybody can make a lot of money. And

this is a process that is still ongoing

in our own day. Trade negotiations

continue eternally. [music] But it

upends the traditional balance of power.

China back in the 19th century was just

opposed by this incoming maritime order.

In our own day, ISIS or whatever is left

of it, absolutely reviles the liberal

economies and societies that are

favoring this sort of trading order.