a german tabloid is duped into publishing fake evidence of a russian troll farm supposedly meddling in germany's politics. mostly hunt for russian bots continues twitter is believed to have blocked nearly a thousand accounts belonging to conservative americans. in medal winning russian curlers who tested positive for a banned substance at the winter olympics decides not to take his case to support. for the latest on these stories you can head to argue dot com the kaiser report is next week looking at the expansion of china's high speed rail network and from watching in the u.k. stay with us for the financial news in the black. oh

hello again maxed as her hair was day zero. zero zero it's going to be some interesting. and i threw a mispronounced my second name her bet and it's actually her birthday my god but you know on the ride over to the studio this morning you mentioned that during the last vacation period in america which is thanksgiving the baby the great migration of america you know when everybody goes on holiday they go visit their family they have thanksgiving dinner they usually fly that actually went from twenty three percent took road trips like last year and twenty sixteen and then in two thousand and seventeen it was something like thirty nine percent and why did they take road trips instead of flying to their destination well they didn't want the hassle of the u.s. dilapidated airports and the t.s.a. you know the whole security apparatus which is now kind of defunct because nobody actually even talks about the war in terror anymore everybody's forgotten that because now we have russia gate so what like why we have this remnant that's the

last remnant of the last fake hoax scare was the whole war on terror but you know in order to. you know fix the infrastructure of america trump has proposed a one point five trillion dollar infrastructure plan two hundred billion of that is going to come from the u.s. government and the rest is supposed to come from the private sector so the therefore mostly charging tolls any plan that might be able to recoup their income back from the users of the infrastructure so it's going to you see where it will go will go to the richer areas that don't even need the funds as much as the poor areas of america so i'm going to compare this to china where they also they don't have these grand announcements of infrastructure plans and hope that in twenty years that might come true maybe the private funds will come from somewhere they just do it and it's quite remarkable because bullet trains are transforming the world's biggest migration millions of chinese cram on to train to make the annual

pilgrimage home for the lunar new year holiday as a crowded and often uncomfortable experience that is rapidly being transformed by the country's push into the world of high speed rail china already has the globe's longest bullet train network but it is plowing three point five trillion un or five hundred fifty six billion dollars into expanding its railway system by eighteen percent over the next two years to one hundred fifty thousand kilometers or more than ninety three thousand miles underground thousand miles of the two years that's amazing those chinese people are ready to rock n roll the twenty first century high speed trains home of grandma's house is just two hours for the whatever they are they're delicious stuffed him so my guess grandma's got the best in time of all yeah so here we have you know america's needed an infrastructure plan for the last twenty years a lot of it you know some of the network actually has not been replaced for one hundred years if you look at new york subway system like the train under the hudson

the tracks under the hudson they are one hundred years old so nothing's been touched so. this infrastructure plan that we have in america is just to replace some of the old stuff not to expand any sort of high speed rail like they're doing here and remember that just ten years ago they had almost no bullet trains at all in china and here they have the biggest network in the world suddenly within ten years and we're still twiddling our thumbs trying to determine whether or not we can afford it. part of it is that railway building is local and you have to pay people big wages real wages not minimum wage to build stuff locally in america is an economy that's been created by financialization of everything and outsourcing manufacturing to countries like china totally ignore asian just made that word up means to ignore something. of your local

infrastructure build now trump saying we want to do infrastructure we've got to go borrow a trillion or two trillion dollars through our biggest creditor china again showing as owning all the cards in the twenty second century in america can't even get from point a to point b. because amtrak is just going to skip over the rail they can't get anywhere and interact with. every single day and try to do real good deals again because it's junk well but we also have a plunder class so no plan no national policy like china has industrial policy we've come to that before we have d.n.a. policy here and it is a plundering like how to plunder any of the assets that are there this is the private equity model it became popular on wall street while you were there in the eighty's and now it's our national economic policy is to plunder as much as possible and you know a few guys get to keep it and then the rest gets you know whatever their needs are the plunder class whatever their needs are they just outsource it to china to make in the meantime vast fortunes are being made in china here we have even the

policies that are being presented by donald trump's administration you see their original plan. it's already kind of they were created by wilbur ross and one of the guy from the administration long ago like a few years ago and it's basically a way to plunder because hundred billion dollars from the u.s. government just like that two hundred billion dollars said to afghanistan or iraq it just disappears it evaporates into thin air into the pockets the offshore bank accounts of some of these guys and then trickles down so of the two hundred billion dollars going towards the u.s. infrastructure maybe two billion will make it to the ground to paying some laborers to paying for some tar or for the macca dam roads out there for that you know that's that's all that will make it to the ground so there's a huge you know you have to throw a lot of money just to get a little tiny bit to the ground here because there's middlemen all along the way taking their cut you know same thing in the medical industry obviously it costs the most expensive any in the world because of all the middlemen the administrators the

administrators of growing exponentially the doctors are not as same thing and infrastructure built so china is the state. directed infrastructure project from the state america would like to bring in private enterprise but private enterprise unfortunately is unregulated there are no laws that apply to private enterprise of particularly in the financial industry so therefore the cost skyrocket even compared to the government famous five hundred dollars hammers that we hear about at the pentagon if you throw to private equity all they're going to do is extract all the money and send it off shore so. they're going to hear it on the private companies there would number one obligation is to their shareholders or their investors and. it's way more profitable just to plunder like why actually the cost of buying the steel paying the workers finding the workers to lay the track to fix the that's like really expensive and time consuming we could just like throw

a piece of old steel out there and hope it doesn't and the train driving over it doesn't and instead just take the billions of dollars we have the same system in hollywood that's why our films here cost two hundred million dollars because there's a thousand middle men many of them rapists apparently that they're like they're like plundering that system our every single system in america is like thousands of middlemen just the education system it's now the cost of education university is has exploded like a thousand percent since you and i went to university because we have now a whole bunch more administrators not new more teachers not more professors a lot more ministers. i mean the united states at a state directed infrastructure project under eisenhower the interstate highway system which set the stage for the american century we haven't nasa put a man on the moon which was created intel google apple i.b.m. created america's technology superstars but you know the government is now gun shy

about doing anything for two reasons it's broke and there's no talent there. yeah you might say he was general eisenhower so a military man republican right wing and the highest tax rate at that time was ninety percent so it was you know a different sort of time and we were compete like we weren't yet clearly the empire because that was after world war two and you know. britain still kind of had like the remnants of empire they still had some of their holdings but back in china here they're you know their their infrastructure is like a quite amazing the numbers are amazing almost nonexistent in china a decade ago high speed rail has exploded with more than half of the twenty five thousand kilometer network built between two thousand and thirteen and twenty seventeen the plan is to expand it buy more. and fifty percent by two thousand and twenty five with eight main bullet train lines running from east to west by twenty thirty train intense have another eight main lines running from north to south as well and actually the cost is very competitive that's why more people this this

past chinese new year has just traveled by high speed rail rather than the conventional rail but you compare that to like new york city which has been trying to build the subway line with the number two on for about seventy eighty years and it went like ten times over by and it was just like a mile long it was like hardly anything and it took years and so many layers of administrative you know like they went over the cost was a great article recently where they went over the cost of why it was so expensive to build in new york city and they had to have like three people who operated the elevator but there was no elevator there there's no actual there was a elevator a lift but it was automatic so there was nobody at that actually needed to press any button but they had to have them by law in these three guys that were elevator attendants who just stood there all day making one hundred fifty thousand the air. so that's not a very efficient way to run an economy that is for sure and so. competitively this

is you know we've put a. price ok that was good on china's not to concerned about that but yeah because putting a tesla into outer space makes a great extravaganza but those extravaganzas like hyperloop and the private sector is only going to deliver to billionaires like mosque who have no money to blow and sending tesla's into outer space here china national you know they have the industrial plans they have five year plans they have they don't want to leave. the entire rural class abandoned because they know they have to include them into their economy to sustain and and maintain their position at the top of the global economic infrastructure so they. you need to include these people in and it costs you no money to bring them in just like western we had to bring in east germany and spend a trillion dollars here china is also mercantile a state just like germany and they have to include all these people america where

she slept abandon those people out in the rust belt out in the middle of americas like. let fend for yourself dude but i mean the u.k. is kind of similar right the whole northern area the country they keep discussing should we build a railway to the north you know twenty years including the people from manchester and birmingham and sheffield should we include them into our economy in london and yet for twenty years i've been having this debate and there's still this division going on. the chinese are saying you know what you know we're going to grow the economy by actually making it an inclusive economy and building infrastructure appropriately yes so they're basically there they're bringing in the west and a lot of naysayers and the western world the western economy and the likes of you know the. academia economists from new york have always liked their plan for high speed rail but they've been building across china saying the peasants will never be able to afford it but apparently according to the data from this past year that

they peasants are affording it so it is actually becoming viable and people are using it because their incomes are going up because we've outsourced all our jobs there right maybe they'll build the stuff on the railway system right here at the kaiser report well don't go away stay right there a little break when we come back we're actually going to go to china using the magic of television and talk with someone in china say right there. it is getting international recognition with the help of israel at least in the world of zoos. this is.

the only palestinian gets the most hope from its jerusalem counterparts. vision. and the earth is all of us not just the heart of the story of the muscle that you have i don't know if you competed in the dozens you do more. welcome back to the kaiser report imax kaiser time to go to shanghai and speak with dan collins the china money report dan welcome back. hey dan let me ask you this the trump administration first national defense strategy elevates china to its number one threat it claims that china practices predatory economics and calls for sending in the marines it sounds like what the frick is

going on down. well yeah i heard that i read that and i kind of looked at it you area but i call it economic and then military economically speaking china is a neo mercantile it's the economy we talked about before they're going to do bigger than your economic policies they're going to set up their own tariff barriers i mean any try to import here something as twenty five percent duty export the united states it's one or two percent so china does towards for its you know does what is it in its own interests japan and south korea did the same thing to united states for decades in less detroit in michigan hobbled in the steel columns of pennsylvania broke. but now when china does it china's too big either is twenty chaney's for every japanese so now the chinese are such an economic juggernaut in terms of economic rivalry i think absolutely it is the number one economic rivalry with no country can come there i mean europe is kind of a you know look at look at the technicals you know tech scene in europe is almost

nonexistent it's completely. you know it's it's really not a challenge at this point russia it's strong militarily but economically still heavily dependent on oil and gas china is really the main rival economically speaking to the united states and what it can be i would put in there that you know the trade deficit which president trump is rightly concerned bowl well three hundred say five billion dollars a year united states half of that is done by american multinational companies that have set up in china so we train or risk enemy i don't think so i think their arrival also an opportunity but i think america's number one threat is itself all right dan you've touched on a few things there stuff mercantile is basically is the strategy of winner take all . goes back to the nineteenth century and when the world is on the gold standard and that the end of the air people had to make good on their. and there was some

elegance too and some balance to it that there was some competition but in a world of pure fear of currency or these countries are able to print without any backing like gold you have a different strategy emerge and of course china has been pretty cagey and pegging their currency to the dollar which has allowed them to export their way to becoming this huge global dominating economy at the expense of american jobs but the americans are insulated by this because the prices of stuff keep going down so even though i my job has been destroyed the cost of my clothes and electronics keeps going down so i don't really sense or feel the fact that i'm having my lifestyle my standard of living crushed so. the trigger point i mean if you need talk about this as always people say there's a quid pro quo there's a symbiotic relationship that these two things are never countries aren't going to divorce the relationship between hoarding dollars versus exporting etc is that

relationship going to be severed at some point and is there a catalyst for it is it happening now down. yeah i mean eventually with all the money printing as your first you makes of benchley the wheels fall off i expected japan actually did i suspect that a major currency crisis in japan years ago still hasn't happened united states if you saw the recent budget numbers that have come out where i'm not predicting a deficit of one point three trillion dollars in twenty one thousand that's not twenty twenty five twenty one thousand that's next year we're going to produce those kinds of deficits in this kind of hot economy which is you know pretty good in the united states. in you know as it compared been in the past decade but yeah when the when the wheels fall off and the money printing i don't know we will see that you saw the chain your go to three percent and i think bill gross out of pimco said well he said when the fed stops back from buying u.s. day who's left to buy. it let me put forward this idea here so the cold war

under the reagan era the country that spent the most on military lost kind of or the russia trying to keep up with the u.s. on military spending and that was guided their economy a lot of ways and they crumbled is this kind of interesting situation where you've got america and china and the country that prints the most money is going to be the loser in the end or if i got that backwards your thoughts. well i've often compared united states to kind of a new soviet union the where the we keep printing money the military could keep getting bigger and bigger the new budget i referred to our spending increase on the military is larger than russia's entire defense budget so the military keeps getting bigger and bigger the money the welfare and social system keeps getting bigger with bigger and bigger. where the money printing stops you know that i think is going to end up with who has real assets and who has the real economy china

china in a problem to its purposes has a real economy united states industrially speaking has been good and when the reset happens you know i see it's going to be import dependent on almost everything with a declining currency which makes up for a nightmare scenario economically and of course when england was faced with a similar trade imbalance going back a couple hundred years or so they shipped over a lot of opium to try to get the chinese hooked and to create demand for opium the opium wars are known what can america send over of china that they might want a side from just opium i was i think america's got that china once dan well well you may have noticed that the united states is a huge importer of opiates from china and also we have the opium wars in reverse while we were this is a catastrophe that we're losing on every front ok so what about the chinese mentor capital market they're also leading the u.s. now yeah they are they did five of the ten largest deals this year if they went

over forty billion dollars biggest one was the true sheen which is the uber of china and they actually bought china but a lot of money going into artificial intelligence here you have face post plus and since time each got almost half a billion dollars these are the most advanced facial recognition companies in the world but yet they in terms of economic development just keeps continuing continuing year so lot of climate change deniers of course wild disown the my following question china is building a pole or silk road now that the ice caps are melting. you know even though there is a white scale believe that that's impossible but they're actually building that polar silk road and correct. they absolutely came up with a white paper recently which countless books on people in shock and they want to do underneath the one below one road project in the maritimes of road they want to create a polar polar silk road so to speak as you mentioned they believe due to climate

change that this row is opening up there are only so much sixteen ships this way but if you envision a map looking down on the arctic and you're right you have the north closer russia and on the left you have the left coast you have the a west and the north coast of canada but china would then if they open up that road they'd be able to ship from shanghai to say rotterdam in say twenty two hundred miles or about twenty days so the north shipping route of white paper described the major benefits of this number one being shipping routes but number two they caught everyone's eyes with fisheries in oil and gas that their region is supposed to have twenty two percent of the world's oil and gas reserves so just china mention about it in the paper was a very friendly can i get let's work together guys economic or development all makes sense but i think it caught a lot of power especially in canada and russia united states little bit worried was such a huge population resource hungry population looking into areas where there is very

few people in iran or research now i dance china has begun cloning primates and when i read that story the first thing i thought of were the terra cotta army base and the you know thousands and thousands of these terror caught us soldiers or you know. is china going to start breeding cloned armies this is be a concern dan. well you know yeah i don't know what current army is yet but you mentioned the crime it was group a pretty big scientific breakthrough first primates that have been cloned we can now clone these you know many different genetic genetically identical monkeys to using human disease research so leaving the ethical part of that aside i mean this is kind of going to be a big breakthrough coming out of china but back here back your comment is if you can clone a primate you can define clone

a human being and they wouldn't be surprised that china is not experimented with. what is p. four by a lab and they opened it up over there in china what what does that well in other scientific i mean and you know another issue another thing we can point to the progress trying to make in science science life science areas before a bio lab is the first lab and he sure they can work with the world's most deadly pathogens like it wallah it took over a decade for that land to get put in place but the first one easier is now in china . so yeah i mean it's. the level of science and technology cures really you know at the top now ok so what we're saying is that the high end of a developed countries infrastructure for technology and business in china is that surpassing other countries as well we're kind of suggesting areas that they buy all science and the infrastructure play financial maneuvers this is down no longer just

the world's work outs the world's work bench or a warehouse they are now leapfrog into is the chinese middle class now i mean the idea was we're going to take our currency to the dollar and we're all going to work on slave wages until we dominate the global economy that we're going to dump the dollar and we're going to have three hundred million to a half a billion middle class consumers is that happening. it is happening but yes they want to buy twenty twenty five they want to have like a wealthy middle class they call like one billion people with an income of twenty thousand dollars a year or more i think that's on track there are large pockets of population though that have not gotten the economic development train and i was very concerned about that that's probably their number one concern two quick questions dan the debt meltdown we've talked about many times is it happening or is it not happening. no sign of china dell meltdown and all the you know the banks are still you know the

banks are still stayed on so why there's not a lot of transparency there but there's in terms of just general economics you're i see no signs of any debt issues in the economy going pretty strong there at the foreign reserves are once again climbing in january saw the r.n.b. climb the fastest in forty years comment on that in twenty seconds yeah absolutely the renminbi been skyrocketing since twenty eight teams faster than anyone's ever seen everybody's talking about it the bundestag has said they're going to put they have r. and b. in their reserves and it's going to be. currency they only hold one percent today renminbi of their reserves so imagine the pricing pressure on the r. and b. as all the world's central banks start a and r. and b. so they've got a cut her off their call thanks so much for being on the kaiser report thanks max well that's going to do it for this edition of the kaiser report with a mess because our states herbert well i think our guest dan collins of the china money report the smartest guy over there the other racist on twitter it's kaiser

reports and i stand by. is the day of reckoning coming will the liberal corporate media ever own up to their dismal and even dishonest coverage of what is called russia gate there is growing evidence the media are at the very center of this fake scandal. or similar for the spurs to the east because in most of the snow more than one of them would. be over yet couldn't you post i'm talking a bushel so you pretty much of the i'm close but i miss my idea of the oh my mother goes with the story of the. system to me now will

some day in cinemas or even spawn of the p.b.s. you'll see us send us little. book of citizenship and yell i'm with someone in the field that shows nickel pulls to the police when you should be busting them for them so just truth be told what you could get that would usually one nation as we see when you do see just those telling me i'm sympathetic to unify it will diminish the small moments of.

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