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 they 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 three 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 home 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 could 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 america has 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 for lew our biggest creditor would be china again showing his 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 you can't go anywhere and

interact with the railing 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 an 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 plans 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 us gov. and 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 us infrastructure maybe two billion will make it to the ground to paying some laborers to paying for some tar for the makah 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 a 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 yes they are going to hear it on the private companies there with number one obligations 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 that 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 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 now put a man on the moon which would create an intel google apple i.b.m. you know 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. than fifty percent by two thousand and twenty five with eight main bullet train lines running from east to west by twenty thirty chinatowns 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 that subway line through at 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 cross 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 buttons 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 a year. 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 the. they need to include these people then 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 a mercantile estate just like germany and they have to include all these people america where she's like abandon those people out in the rust belt out in the middle of america is like. 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 for twenty years including the people from manchester and birmingham and sheffield should we include them into our economy in london for

twenty years i've been having this debate and there's still this division going on . the chinese are saying you know what we're going to grow the economy by actually making it 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 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 cars the 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.

hey everybody i'm stephen baldwin task hollywood guy you know suspects every proud american first of all i'm just george washington and r.v. to say this is my buddy max famous financial guru and well just a little bit different i'm honest one good one i know no one knows up with all the drama happening in our country i'm shooting the road have fun meet everyday americans from the moment and hopefully start to bridge the gap this is the great american troops which.

were similar from the sports to the least you know because in most of the snow more than one of them and so. beautiful yes good good new books and the you know bush will say you know you put him over the i'm close but i'm his mother able to move to my idea of the oh my mother goes with the daughter and you know focus them. certainly now will some day and some as a woman even spoke of the video of the dog to us so yes so you'll see a little. book of citizenship available with some of the feel of the month and showed some cool pulls to the police can you assure the people still the most of them so just

to take a well what you could give that would just salute little for the nation as we see would you do you see just as most solace to me of some of the you know what if old media is a symbol to me so for. politicians to do something. they put themselves on the line to get. the reject. so when you want to present. some want to us. to going. to see what before we can't be good. interesting. question. welcome back to the kaiser report imax kaiser time now to go to shanghai and speak

with dan collins of the china money report dan welcome back a max hey dan let me let me ask you this the trump administration first national defense strategy a 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 gallon on dan. well yeah i heard i read that and i kind of looked at it to air it i call it economic and then military economically speaking china it is a neo mercantile it's the economy we talked about it 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 is 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 me you know look at look at the technicals you know tech scene in europe is almost nonexistent it's completely . you know it's there's really no challenger 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 is trying or are just enemy i don't think so i think their

arrival is 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 what are take all. what goes back to the nineteenth century and when the world is on the gold standard and that the over the air people had to make good on there are. and there was some elegance too and some balance to it that there was some competition but in a world of pure free at currency weren't 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 when 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 you know your first two 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 a comparative been 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 ten year go to three percent and i think bill gross out of pimco said oh well he said when the fed stops back from buying us 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 ours a 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 gets keeps

getting bigger and bigger the new budget i refer 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 a demand for opium the opium wars that are known what can america send over of china that they might want 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 it went over forty billion dollars biggest one was eighty two sheen which is the hoover of china and they actually bought china but a lot of money going into artificial intelligence here you have face plus plus and since time each got almost half a billion dollars these are the most advanced facial recognition companies in the world. in terms of economic development just keeps continuing to continuing year so a lot of climate change deniers of course wild disown the my following question china is building a polar silk road now that the ice caps are melting you know

even though there is a wide scale believe that that's impossible but they're actually building that polar silk road and correct. they absolutely came out china came out with a white paper recently which kind of books some people and shock them they want to do underneath the one bell 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 road is opening up there always in most 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 are 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's 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. you know. china going to start breeding cloned armies this is be a concern than. 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 to your comment. if you can clone a primate you can define cloning a human being and they wouldn't be surprised if 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 for 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 country is 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 china dealt with debt meltdown and all the you know the banks are still you know the banks are still stayed on so why there's now 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's going pretty strong there at the foreign reserves are once again climbing in january saw the r.n.b. a climb the fastest in forty years comment on that in twenty seconds yeah absolutely the of renminbi s. been skyrocketing since twenty 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 as your 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 turkey and r. and b. so i think they got a cut 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 record with a mask as our state herbert well i thank our guest dan collins of the china money report the smartest guy over there the interest on twitter it's kaiser reports and i stand by i. feel in this country in a continuum they have a bottle of china six oil. an estimated eighty percent under age refugee considering down living in greece. you

know still more. to do at home in there you go for doing. many self just to make a good school. is in the second the second to get you know all the sins of the. helpless. love is. all there is thirds are dealing drugs to make a living. the rest of us a little is a lot of blood blood in the. early game of the been. to. earth is mel three hundred trillion dollars of oil of all wealth in the world today but i look at how much money we spent on the world the military. we just talked about a few more billion dollars saved the lives of people around the world in doing to

such a way that doesn't preach to the nation it was that much wealth in the united states that much wealth. the rest of the world is the issues of all for any person in the world today little of it out of. a batch or sudden passing i've only just learnt you worry yourself and taken your last turn. your attitude up to you as we all knew it would i tell you i'm sorry only i could so i write these last words in hopes to put to rest these things that i never got off my chest. i remember when we first met my life turned on each breath. but then my feelings started to change you talked about war like it was a cave still some more fun to feel those that didn't like to question our arc and i secretly promised to never be like it said one does not leave

a funeral the same as one enters the mind gets consumed with death this one quite different i speak to you now because there are no other takers. to claim that mainstream media has met its maker. palestine is getting international recognition with the help of israel at least in the world of zoos and bill frist dismissed it like you know. this isn't my cup of tea is going out on sunday i'll be here you know john tells. me the only palestinians who gets the most help from its jerusalem counterparts i don't think some of those who in the world under the oak vision know only could do this. and know a desire to display any of the muslims to have an identical t.v. in gaza as you do more in the middle sauced don't put this off.

from exotic toxic decades of environmental damage on the portuguese island in the atlantic leaves local fearing for their well being as they continue to suffer increased cancer rates they blame the u.s. air force for the contamination. coming up to this hour leading german tabloid publishes what he thought was indisputable evidence of russian meddling only to realize they're being cracked by satirical magazine feeding and focusing that. we knew how to think like and build editor. who came up with a story that was techie and like inspiring it was a. problem conservative commentators in the us claimed that it makes sense it now by twitter after a wave of accounts suspension.