if it was to come so just to take over what you keep you were you would usually be as well they should be pursuing your thesis each of us knows. you the football team your system will be so. have. the courage to do things that show you very do with be very clear. the way. management. and they are they they are what they have and they have.

a need to feel. something yeah what do you how much. do you. mean that we could measure the constant next. welcome back to the kaiser report imax kaiser time out to go to shanghai and speak with dan collins of the china report dan welcome back a max 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 i read that and i kind of looked at it

you area but 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 there's twenty chaney's for every japanese so now the chinese are such 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 it's almost

nonexistent it's completely. you know it's playing it is 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 sixty five billion dollars a year united states half of that is done by american multinational companies that have set up in china so is trainer 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 a 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 over the air people had to make good on their. gash and and there was some elegance too and some balance to it that

there was some competition but in a world of purified 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 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 as your first you makes of benchley the wheels fall off i expected japan i expected i suspect that a major currency crisis in japan years ago still hasn't happened united states you saw the recent budget numbers that have come out where now predicting a deficit of one point three trillion dollars in twenty one thousand that's not twenty twenty five twenty one thousand next 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 the 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 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 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 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 now on what can america say no or a china that they might want a side from just opium i was i think america's got the china once dan well well you may have noticed that the united states is a huge importer of the 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 the true sheen which is the hoover of china

and they actually bought china but a lot of money going into artificial intelligence here you have faced post 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 you can continue in your 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 countless books some people are in shock and they want to do underneath the one bill 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 on the northern 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 county and 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 says be a concern dan. well you know yeah i don't know what current army is yet but you mentioned the crime it was 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 defy cloning a human being and they wouldn't be surprised that china is not experimented with.

what is p. four by a lab and they open 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 better a warehouse they are now leapfrog into is the chinese middle class now i mean the idea was we're going to pay of our currency to the dollar 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 kind of very concerned about that that's probably their number one concern two quick questions dan the debt meltdown we've talked about it 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 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 it's 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 s. 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 turkey and r. and b. so i think they've got to 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 kaiser report with a mask as our states herbert well i thank our guest dan collins of the china money report the smartest guy over there the operators on twitter it's kaiser reports and

. there is now three hundred trillion dollars of a little wealth in the world today but i look at how much money we spend in the world the military. we're just talking about a few more billion. save the lives of people around the world in doing such a way that does it create dependency of it without much wealth in the united states that much will. the rest of the world is there an excusable for any person in the world today to go to the. i played for many clubs over the years so i know the game inside guides. football

isn't only about what happens on the pitch for the final school it's about the passion from the fans it's the age of the superman each kill the narrowness and spending shouldn't twenty million on one player. it's an experience like nothing else i want to because i want to share what i think what i know about the beautiful guy a great one more chance for. the case it's going to. tell us time is getting international recognition with the help of israel at least in the world of zoos and mental fiddlestick misted to do it let me tell you like you know. this isn't my cup of tea is something i'm going to know phil saviano maybe.