sure two hundred dollars and gold is heading east because for taking down empire stacking is the new sacking oh if only the united kingdom weren't such a second rate nation they'd be more successful like the can do an optimistic chinese so said the u.k. chancellor george osborne while on a trade visit to china of course i was born wasn't referring to his class either the banking class for in china banks or is caught committing fraud are not hailed by the state as heroes but met by a hail of gunfire from the stick. you know when george osborne suggested the brits are such a great he was referring to those in the jumper class the sort that jumps off apple factories after months of hard low paid labor now that's straight to a new liberal potentate right stacy herbert yes max even george osborne is kind of a fair weather friend to america because while de gong was downgrading the u.s.

debt and gold was soaring and heading east he was over there in the east as well he was heading over there with the gold well as you say he called britain second rate george osborne says second rate britain must rediscover its can do attitude chancellor dismisses suggestions that china has a sweatshop economy and wishes britain would be more like the communist country. you know he wants brits to work for lower wages that's why the bank of england so they're going to keep interest rates low in seoul employment goes higher that means that they want wages to trend lower to be on a par with china so that everyone employed but making subsistence wages used to be here subsistence farming used to be the rigueur economic model here in britain under the lords and ladies and kings and queens of the feudal period now they wish

to return to that as part of meal feudalism so george osborne can be piggly wiggly georgie porgie putting of up on his throne making all sides of commandments all day long and not doing jack nothing well the other thing i want to point out is that he should look in the mirror and look what his government is doing because in china they are a command and control economy just like the u.k.'s command and control economy but the difference is that in china they have a sovereign wealth fund they also have a five year plan here we have a sovereign debt fund is the highest debt ratio in the world to g.d.p. . in the world and they also have nearly a five day plan they only operate for this to get through this week as long as house price continues to rise this week as long as the markets stay up this week that's all they think ahead is five days as you point out china's got a huge sovereign wealth fund britain's got this huge sovereign debt problem and their plans are really minute by minute day by day as

a debt holik they should be going to debtors anonymous and they should be getting on some kind of twelve step program judge george osborne is powerless over this country's debt and he needs to seek a higher power well it's also proves that we do run on a ponzi system here because a ponzi scheme needs constantly to have new money coming in and here we always have a five day plan because that's that's every week you have to get a new ponzi is to come into the scheme whereas in china they can plan ahead for five years because they're not running a ponzi scheme yet you know they do have high house prices like here but it's mostly paid in cash now they also have because of their five year plan they also have new deals being done with george osborne new nuclear reactors will transfer billions of pounds a year from british consumers to france and china so you know he hailed this big deal he did with china for the nuclear power plants here well state owned china

general nuclear power joining the equally nationalized electricity de france e.d.f. in constructing a four hundred billion pound brace of reactors that hinckley point in somerset the chinese will have a minority share in the project but have made it clear and george osborne expects this that they should have a controlling interest in future schemes and for this max he's guaranteed price fixing so that they will make a profit right right so here is foreign countries and their state owned companies their national companies who are buying into britain who. in the process of privatizing these assets they're making them available to foreigners so they've convinced britons they should sell the edges sell the energy companies sell the rail system so the education system so everything so little the pay that debt will keep racking up the debt just keeps showing off these assets to the welfare states other countries who will then use that to give their citizens

a nice plum juicy annual income based on this recurring revenue stream forked over by these hapless brits. well just to go into the details of what this price fixing is so the fix due to be announced next week is expected to guarantee to pay double the current electricity price for his output for some thirty five years affectively forcing consumers to subsidize the chinese and french states by about one billion pounds a year and of course they're also at the same time simultaneously reducing the subsidies for renewable energies which are all obviously domestic because it's when there are wave power energy like that and as the article in the telegraph points out a lot of it has come through propaganda where they're saying well renewable energy adds all these costs to our electricity bill well in fact it's added about thirty seven pounds to the average one thousand two hundred twenty five pound bill whereas here you're seeing it's going to they're going to guarantee for the french state

and the chinese state. a doubling of your electrics it once again is command control economics it's not a free market competition they're not going to the low cost provider they're outsourcing it to a monopolist a communist state is going to come in here and take britain's income put in their pocket and they're going to jack prices higher and a lot of people going to be without fuel without food from privatized the same way they gave all the assets to a foreign government for their pension schemes and the u.k. is essentially going to be a tenant in their own country tenant consumer in their own country meal feudal times here in britain well they are another minister from the u.k. in the past week was over in america this is michael gove he's the education minister michael gove governments must stop lying to children about life chances education secretary says inflated g.c.s.e. figures we use the past to tell pupils they could go to university or get skilled work so he told the schools here to stop lying to children that they're actually

stupid they don't get they don't deserve the grades they're getting and they can't compete in the real world so however i think this is the same thing that we see with not only quantitative easing here they're inflating house prices in order to lie to the population that they're wealthy and because they're wealthy they could somehow compete with china who is building their sovereign wealth fund through real wealth generation and you see that because they don't have a sovereign debt fund they have a sovereign wealth fund what is propaganda is that because in other words george osborne is engaging in economic policies that are stripping britain's of their national treasures and their income in a lot of people say to themselves am i stupid and then michael says yes you are this is propaganda you will convince he agrees with you the education minister agreed to do that you're stupid so what do you think that oh i'm being ripped off by george osborne unless i'm stupid then the education minister says yes of yes you are stupid so it's a one two punch pure propaganda and it's

a wholesale. offering of all these national assets to foreign governments in exchange for what can only be described as a b r i b that spells bribe and another thing about this notion that we can compete is we can't and that's the proof is in the pudding of the n.s.a. spying on every corporation around the world because their corporations our corporations cannot apparently compete and this is having a blowback we're seeing in this next headline here and i say revelations kill i.b.m. hardware sales in china the first shot was fired on monday terra data which sells analytics tools for big data warn that quarterly revenues plunged twenty one percent in asia and one thousand percent in the middle east and africa wednesday evening it was i.b.m.'s turn to confess that its hardware sales in china had simply collapsed every word was colored by edward snowden's revelation about the n.s.a. is hand in glove collaboration with american tech companies from start ups to

massive ons like i.b.m. well this is an interesting because it shows the commercial impact of the spying scandal ultimately the idea that spying is making people more secure is going to backfire because competitively america is crashing and won't have any money at all to buy even a slingshot much less a cruise missile because no foreign government will do business with them and china of course has trillions of dollars in reserves and like warren buffet brought bought into i.b.m. at the high one seventy's he had a nice run bounce back to what he paid for he famously says things that he understands they weren't you understand corporate espionage well you know how china has said that they're preparing for a d.m. merican honest world i think that's what you also saw with george osborne over there in china just as they gong their state credit rating agency downgraded u.s. debt we also see that in the n.s.a. thing i think is that they've abandoned america because they're just looking to

front line other corporations. what they're doing now the consequences here are the numbers on i.b.m. just to show you how catastrophic and sudden this collapse in sales was to china and china which accounts for five percent of i.b.m.'s total revenues sales dropped twenty two percent with hardware sales nearly half of i.b.m.'s business their falling off a cliff down forty percent now the c.e.o. of i.b.m. had only recently stated that they expected sales to be double digit growth so he was unable on this conference call with investors even explain what had happened but of course he's not going to publicly state it's the n.s.a. spying on our competitors which have destroyed our market in china first of all i think you know bobbie i'm currently a woman and this is setting up a situation where i.b.m. will need a bailout so we go from banks needing all kinds of bailout to corporations they don't bail out i.b.m. in the biggest will need oh we need

a huge bail of these companies to pay for by massive amounts of debt oh seventeen trillion twenty trillion forty seven trillion how about the monthly quantitative easing going from eighty five billion two hundred billion on a fifty billion where does it stop it won't stop at all because a ponzi scheme get wider and wider and wider pyramid scheme means a base with the image of bigger and bigger and bigger version pair of crashes the american people are going to wake up one day is that oh my god we sold all of our asses british people wake up windows only got george osborne so all we got here is a cup of noodles left over for some chinese mergers and acquisition banker who's on his way back to be kings but my first money. my only use of correct pronunciation by the way beijing ok that dates me because when i was growing up we should say peking but no no no no no no no that's beijing both beijing that brings me back to this i.b.m. story because here you have. george osborne saying we need to compete with china one can't even spell i.b.m. . brings not worth the nickel on the brain exchange they said we got to go thanks. thank you max the second half

a whole lot more. delimit torch is on its epic journey to such a. one hundred twenty three days. through two thousand nine hundred top ten cities of russia. relayed by fourteen thousand people or sixty five thousand kilometers. in a record setting trip by land air sea and outer space. a limpet torch relay. m r t r g dot com. right on the street. first street. and i would think the church.

on our reporters twitter. and instagram. to be in the know. on law. welcome back to the kaiser report imax keyser time now to turn to dan collins of the china money report dot com dan collins welcome back to the kaiser report thanks max free to be here all right dan collins according to an editorial in a local chinese paper china wants to quote the american eyes tell us about who wrote this in which publication and who the editorial speaks for sure the piece was written by a respected journalist here in china by the name of. he's ready for shin wa which

is really the new china news agency really some similar to what reuters would be and with the piece he's writing about would never really be spoken as an official mouth piece by the government ever really speaks for one point three billion chinese and frankly for most of the world in the piece he talks about. ask two d. americanize a world which brought shock. in a lot of the mainstream media press on it he's calling for basically in the article a wall street reform new reserve world currency and highlights that the americans have now lost the moral high ground literally with all of the drone attacks the tortures and now the recent scandals with spying on world leaders. the first party talks about wall street reform i think most people know we're all with would agree the united states and the u.k. we've done nothing to actually restructure the financial system since the first

financial crisis we still have seven hundred trillion in derivatives out there waiting to crash the markets the next time and we continue to just respond to this crisis by handing more and more money to banks and this is the type of activities he's calling against the second point on the currencies. talking about the world needs a new reserve currency why have the chinese been set up as the world's workers and the american set up as the world's consumers in the united states now has ninety million people of working age that are not in the workforce china on the other hand has the highest math and science scores in the world out of china they have a workforce now of seven hundred million people which is seven times the work force the united states has so he really questions why you know this situation has taken place why americans have exorbitant privilege on the currency and are not supposed to pay for anything at the import and talks about eventually how there needs to be

a new world world reserve currency backed by gold or something else. and yet this is the main point of the article which all right back on so let's talk about the delicate relationship here the symbiotic relationship between china and the u.s. china of course has built their growth on exports to the u.s. and taking advantage of a cheap labor pool once they entered the world trade organization and the u.s. sends them dollars and they have over more than a trillion dollars in reserves have more than a close to four trillion in currency of various currencies in there are strategic reserve fund are there their national reserve fund but if they are two d. americanised the world presumably they want to sever this symbiotic relationship this means that their export growth would be affected a lot of the assumptions of the past few years would be completely reversed are they ready for the fallout and are they taking precautions for that fallout you

mentioned gold a lot of people speculate that china is very aggressively buying gold in anticipation of the day when the world is the american eyes and the world no longer uses the dollar as the world reserve currency your thoughts absolutely china knows they need reform and they're what they're working on this you know behind the scenes. china's foreign currency reserves as you mention it reached a record almost four trillion dollars it's a one hundred billion dollars in the third quarter alone however they have stopped buying u.s. treasury since two thousand and eight two thousand and eight they had one point one five trillion and us dollar today they have about one point three trillion so a real modest rise considering china has added almost true two trillion dollars in currency reserves since two thousand and eight alone but only you know two hundred billion in u.s. dollars well let me jump in here for a second because people talk about the world experiencing at the moment

a currency war and a lot of people don't understand how you could have a currency war warren buffett has mentioned why. but the mass finance of the struction many people don't understand how a financial instrument can be a weapon of mass financial destruction but here you have a big authorial in china which is essentially painting americans as lazy as unable to pay their debts and you know basically slamming america isn't this similar to what we see in a ground war aren't they kind of prepping the population to start hating americans i mean this is part of the propaganda war you know america would get the all kinds of boycotts and shut the economy off in iraq before they bombed iraq as part of the propaganda are our isn't china just starting to prop the population to blame america and to ready for this financial war is this part of the propaganda then yeah i believe that you know china you know that they see where the world's going

their importing go that frenetic pace you know all the four hundred trillion tons produced in china and he stays in china they bring in another eight hundred ton per year they're going next you're going to know it's their gold reserve i think it's going to shock people how much gold they have what's your fake what's your best guess on that number. we i believe we've run some numbers roughly. five thousand ton to six thousand tons i believe will past the united states holdings you know within five years or let me let me jump in again another talk about propaganda and price propaganda and financial where the c.e.o. of dagon rating agency has allied with egan jones and russia's rating agency russ rating in order to counteract what they consider the overly negative ratings of us back i gave says of various bric that including china debt so there we have for years the us right again this is always giving american debt aaa rating a double a rating and they always give the brickbats brazil russia india china

lower ratings as part of this attempt to steer global cash flow toward the u.s. dollar now china saying wait a minute we can create our own rating agency and we're going to downgrade america we're going to upgrade our own debt isn't this part of that financial propaganda war it will be successful down yeah absolutely those radio global radio rating agencies today are the enablers of this financial paper speculative economy that's been produced out of the u.s. and the u.k. they realize it's actually absurd for the u.s. to be largest international credit rich. debtor to china but yet china has a lower rating than the united states is makes absolutely no sense they've called the requester radiated she says completely impartial and captured by the western governments and now they're going to work together to create a new company universal credit agency that is going to properly rate west governments globally as well as corporations all right dan let's let's really

change gears for a second and talk about something that i think will shock a lot of people and that is that china is now the biggest by volume trader of bitcoin in the world by did they actually they one of the biggest internet companies and that china is now accepting bitcoin and because. and we saw what happened in cyprus and cyprus started the balance but coins shot up to two forty we know that in venezuela in argentina there's huge bitcoin activity due to the instability those governments there but if china would want to one point two billion people they decide that bitcoin is on a par with gold and silver which they should it and they say capture the bitcoin market how much of a game changer is this because big point unlike everything else america does cannot be hacked the n.s.a. can't hack it the f.b.i. can't hack it it's a it's a good good money you can't hack it it's it is a game changer dan collins well i think absolutely i think china's looking for

alternatives i believe obviously to this u.s. dollar reserve system chinese private savings an additional three to three point seven trillion in foreign currency reserves chinese privacy savings have gone from one trillion to seven trillion in the last ten years it's just a portion of that goes into a bit coin you can see the prices you know rocket obviously not you know china's going to control praising everything gold bitcoin real commodities which it already controls so this is just good good absolutely be a game changer dan let's go through that number again you're saying that chinese savings rate of the people the chinese people have gone from one to seven trillion over what period of time in the last ten years private savings just in savings accounts in current accounts in chinese banks held by chinese citizens ten years as gone from one trillion to seven trillion dollars ok well that seems like they're they are very well positioned for a currency war and that they have what's the debt picture in china how do they

break that down as a country debt as a percentage e.d.p.s think they're roughly thirty percent debt to g.d.p. very good number we do have local local government debt issues but unlike the united states or u.k. or western governments china is now tackling with real fundamental reform. and restructuring of the economy to head off any local government debt issues in the future whereas in the u.s. we just continued to we're going to print more money we're going to give more money to banks and we're going to raise debt ceilings until somehow jobs magically appear or let me let me ask you this question let's contrast to economies here in the u.k. the economy is flagging george was brought on or in brought it helped by their reinflating the real estate bubble and now the prices are up ten percent in a month it's clearly a bubble it's going to pop is going to cause huge problems whereas in china when they real estate markets start to get a bit frothy they increased the mortgage requirement they raise interest rates they're managing things in a much different way they put an emphasis on savings. it's

a good contrast these two approaches and ultimately how can the west tuck in the american the u.k. hope to compete with china if their solution to stimulate growth is to increase debt and china's solution to stimulate growth is the increase savings your thoughts well i mean in terms of the u.k. you kate you know i think i was born this week called the u.k. second rate power to china you know is it really harsh language but in reality you know there are chinese provinces with the next five to ten years that will have higher g.d.p. in the u.k. if you look at johnson province john province joining shanghai that yancey river delta region already has a g.d.p. of two point five trillion which is higher than the u.k. so they really are you know a bit player change the u.s. and u.k. absolutely they're trying to reinflate housing bubbles and they've been partially so you know successful so far it's all about them you know kicking the can down the

road and nobody in the us or u.k. focused on production real investment savings and until they do that china is going to continue as well as all of east asian asian generals continue the wells going to continue to transfer over the jobs or continue to transfer over to asia and we're going to get you know u.s. and you care going to. larger and larger until nobody believes them anymore and the currencies take a major major hammering i don't know if you've done the math on this but if you add up the personal savings account in the sovereign wealth fund of china is the economy trading at a discount to cash. yes absolutely i think you know. china has a lot of assets on their books a lot of a lot of money tied up now and so in wealth there's hundreds of billions of dollars that will continue to get put interest over in wealth funds as opposed to u.s. treasuries and they're trying to look for any way now to take those excess savings in excess capital no distributed across the world you see us now are china now is

investing in nuclear power plants in the u.k. these are power plants and u.k. will be one hundred percent owned by the chinese government you know in addition to manchester airport which are just oh so you kate i was looking for china to come in and rebuild their infrastructure because like the u.s. and u.k. we see we can no longer even repair or build new infrastructure own countries all right dan collins got to leave it there thanks again for being on the kaiser report thanks max and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i'd like to thank our guest dan collins of the china money report dot com if you want to get in touch tweet us a kaiser report into next time bio.

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place that some. of our time. the dog side of war blackout in syria after a terror attack on a key gas pipeline the latest hardship to hit a population gripped by conflict. the price of. acute care and we have exclusive footage from the city of god and every day battlefield for families who refuse to leave their homes. every bit as secret as you thought. and the crew tours one prison at mind showing off the sterile cordle's the strawberry deserts and the lone dejected inmates on a concrete floor you're seeing what there is to see you know and i'll report courtesy of the u.s. military that's coming your way in just a few minutes. also a new form means new apology.