Topic: Wen Jiabao

China and Russia have agreed to use their own currencies for bilateral trade, a move seen as a direct rebuke of the US dollar's status as the global reserve currency. Shortly after this announcement, a military skirmish occurred between North and South Korea. The hosts speculate that the conflict may have been provoked to drive up the value of the dollar and benefit US interests.

Chinese Premier Wen Jiabao expressed public concern over the safety of China's $2 trillion in US assets. In response, the hosts jokingly suggest using eminent domain to sell parts of California or Hollywood to China to settle the debt. They also discuss a long-standing proposal to divide California into three separate states.