the big stories of course that tree war going on between the u.s. and china as china rises well china has apparently risen and power and now we've only just noticed it and we're trying to stop it so it's the end of this period of globalization there will be a period of de globalization i believe that's the morning for globalization then there will inevitably be another period of globalization whether a look like the past 40 years 3050 years of globalization is yet to be seen yet not when i see that often i think of a giant ice cream sandwich. now you got me thinking about that you know that awesome yeah no morning versus morning in america versus morning at the cemetery you know take your pick the globalization period that we had is that all over they'll be a new globalization period it will be network driven i predict that america will become a subscription service like netflix you will subscribe to america and they have to

offer you a value proposition to keep your subscription alive and they should we should be able to figure this out i think i would happily pay a monthly subscription fee if i got access to america the enterprise and they could pay the occasional didn't like andrew young a suggesting if $1000.00 a month that's a dividend from my subscription to america that's fine there's no coercion involved as a course of taxes involve that we happily pay my monthly america subscription for the value that it offers me well you should be able to have a subscription to which every nation on earth you want in whichever one has the best policies because i'm going to skip ahead to the other story i had here about the united states and what part of the reason why i think it's china has ina a lunch is that what inevitably happens in this sort of system where you have lobbyist and political power which is better and better and caught you know more and more concentrated and you're able to dole out. you know not only government

contracts that's not as important but basically laws whereby you could forbidden any competent competitors from rising against the powerful so we have an oligarch system that has emerged several studies from harvard princeton they've all shown that we have a basically an oligarch eat that some powerful corporate c.e.o.'s control the politicians and we have a system whereby you can't innovate you can't the barriers to entry are so huge in so many industries across america but of course the number one that we have been looking at over the past year or 2 has been the health care system partly because we've been subjected to it now that we've returned here and it's pretty horrific but i want to look at this one headline from the past week or 2 and that was that 3 major drug makers sued the trumpet ministration to block a rule that would force them to post a drug's list price and their television advertisements so just for the rest of the

world because this is abnormal outside of america is you can advertise on television here for your drug products your pharmaceutical products which is not allowed to happen anywhere else in the world but here the trumpet ministration an order to try to get some. introduce market mechanisms to this feudal system is therefore they want these drug companies pharmaceutical companies have to list their prices name their prices on television and now they're fighting it because they don't want consumers to know the prices right if we're going to lead drug companies advertise like netflix on t.v. and people subscribe to antidepressants they subscribe to their prozac they subscribe to their various medications and it's sold on television like netflix now getting back to my idea about selling america as a subscription service you know i think you could have the possible to subscribe to different countries but in a more germane to being part. one jurisdiction that being united states you could

have a republican or a democratic subscription so i would like you to subscribe to netflix and h.b.o. and some other streaming service people subscribe to multiple streaming services you can subscribe to both democrats and subscribe to republicans and pending on the how each one is offering and what the what's on offer you either cancel one or not cancel the other one and have a couple difference of different services now there are the pharmaceutical companies have they have r.x. subscription ok we pay through every month we pay them and they're saying you know get or are you know any depressant pills will make you forget about the fact that you live in a dystopian nightmare just gave us this money every month there will be happily do that now the fact is they can't they're not posting their prices means that there's room for a better. prozac subscription service from corporate america then the one that we're i haven't that's on offer currently well i don't want to promote any particular drug because that's giving them free advertising but i would say that

whatever all of these giants all these global mt multinationals they don't want to particularly in america they don't want you to know the prices they want price asymmetry they want asymmetry of information that's the opposite the exact opposite of what a free market is supposed to be a market is a place where a buyer and a seller come to gether and they have a product that the buyer pays a price for and that establishes the price is supposed to be the buyer who establishes the price not the seller the seller is hoping to get the best price they can but if the buyer doesn't know what they're buying and of course we just forget the fact that in the health system you know you you know you rely on a doctor to know whether or not you need heart medicine or antidepressants it's not a problem to have depression that many people have it and i can see why especially in this financial system in economic system that does

a marginal rate and the answer to that is competition so if one is the problem in their prices then you have to make room for someone who is going to publish a price so they can compete if there is oleg aapl emerging then they are colluding and they're don't want to compete then it's up to the government to come up with their own version of it there should be a government bank because wall street banks don't want to compete they only want to collude there should be a government bank there should be government offered one price health care system because the current oleg up leave doesn't want to compete they just want to have old gospelly pricing whether that's not american the member in america all of these health care companies the health care. sick you know it's not it's not actually health care they don't provide any of it's a racket they're exempt from antitrust laws so if you apply the end to trust law and you know these same drug makers by the way they have as they own the

legislators they basically prevent americans from going to canada or mexico where the same exact pharmaceutical products whatever it is that you need whatever ingredient whatever pharmaceutical maker whatever it is you're not allowed to cross the border and get it for sometimes 10 percent of the price of what americans are forced to pay for it there is no such thing as being exempt from antitrust and that that's that's a that's tyrannical that's like saying i'm exempt from the bill of rights were exempt from the constitution we're exempt from the rule of law yes the banks do feel that they are exempt from the rule of law and they are time radical and they are doing you say banks of course that means also pharmaceutical companies and everything we have a financial capitalism here at that's all we have and this is what i'm saying is like where have the g. 20 now and we're supposed to as citizens of the world residence the world where we're living we're supposed to watch them and these leaders of the world led by america because america is still the empire and we're hoping not to lose it but apparently like we're told to like this is capitalism free market capitalism we

want to for all the world but yet at home this fundamental thing is your fundamental major corporations which live off the large just by the way of the taxpayer who funds a lot of research and development of these pharmaceuticals through our universities and the national institute of health well. you know this is the model they're really doing they're extracting wealth this or engineering makes sense to force american corporations and the only way to pay dividends as far as i say $1000.00 a month for some to pay dividends if they can't do that this rather not being competitive they don't have the ability to do so they're not part of the enterprise they need to be extinguished that's it because we need to get tough and we need be a capitalist we need to be competitive we can lead to a radical all of our players from abroad and domestic to terrorize us with their monopoly pricing so the other thing that basically the g 20 imposes is of course the monopoly on sin your age so the especially the us dollar does run the world all

commodities and trade is basically settled through the u.s. dollar and that's something they're also losing control of and they don't price discovery in that regard whether it's from bitcoin or gold but here's another here's a story that's really fascinating in terms of the subjective theory of value so when mangere said something along the lines of all value is derived from human consciousness this is a real you know a pity me of this italy's mafia uses the old lira as its own parallel currency a senior police officer revealed in italy that domestic criminal organizations are still using the pre euro currency for illicit transactions it's not clear how the former notes are ultimately exchanged for euro's if at all though he said officers are still uncovering them the lira ceased to be legal tender at the end of february

2002 wright who has everything in it for money it's scarce then people are treated as a unit of account and as money so therefore it is money that's all i need for money that's my big money and that's why the u.s. dollar is probably going to disappear like every fianna currency is. ever had the experience of the past 300 years of disappearing none have ever made it 300 years except for maybe the british pound but they've lost 99.5 percent of its purchasing power so effectively 0 none of them make it but you could use this one because the people say oh you know it is money we recognise it as money and it scares that's all you need to be money well because if you need a service or the mafia says they're going to provide you a service and you can take it well whether or not you know if they're willing to accept these banknotes you know that's what paul krugman he should love the story because paul krugman nobel prize economist he says that the u.s. dollars backed by men with guns of course the mafia is known for having many

weapons and threatening people according to a boar a deputy and in charge of the guard defined when a bank note is accepted by an organization internally organization he means mafia even if it is outside the law as a legal value it can settle transactions we're obviously talking about illicit organisation it's amazing that this is a bank that only accrued true value once they stop fronting yeah well the same thing we saw in somalia as well somalia doesn't have a central bank for the last 1520 years and they still use that make the bank notes that the last central bank that existed there printed makes them more valuable right and the 20 years ago in somalia the number one currency in use was coke syrup syrup used and they call it the beverage that was used as a unit of currency in somalia for a long time all right well we're going to take a break when we come back much more coming your way so. take that sponge baths.

good descriptions. owned up to tell using even for the owners so how to choose this pet food industry is telling us what to feed our pets is really more based on what they want sallust than was necessarily good for the pet turns out that food may not be a sofa the best people believe we have animals that have you know diabetes in arthritis and they have auto immune disorders that can't allergies we are actually creating these problems it's a huge of a democrat problems all of them i believe can be linked to very simple problem of diet and some dog owners so heartbreaking stories about their pets less treats the

larger corporations are not very interested in proving or disproving the value of their food because they're already making it a $1000000000.00 on it and there's no reason to do that research. in a world of big partisan movies can last for years and conspiracy it's time to wake up to dig deeper to hit the stories that mainstream media refuses to tell more than ever we need to be smarter we need to stop slamming the door. and shouting past each other it's a target for critical thinking it's time to fight for the middle for the truth the time is now for washington closely watching the hawks. welcome back to the kaiser report i'm ask iser time now to turn to our resident

expert on all things china dan collins a businessman who lived in china for 20 years the past 20 years he was there dan welcome back max all right so dan the president trump will be meeting with china's president xi at the g. 20 what do you expect i expect some type of economic get counted a year or truce some type of initial agreement to work i think from getting close to 2020 i think you'll take a when you're behind foreign policy circles we're just now this is round one where you're you know generational conflict with china a cold war 2.0 but i believe out of the g. 20 we'll get some type of positive announcements the trade war is been pretty surprisingly difficult for both countries you know cultural exports out of the midwest are down 50 percent chinese tourism in us down 5 percent while it's 15

percent globally chinese students are now coming to us that's going down the other side china's been hit pretty bad while we just announced $30000000000.00 reduction in sales their economy in general over dead now so and slowing down which is not happened in 20 years so expect some type of positive news but we're still in for the long haul of this confrontation between china and united states rights when this thing kicked off i think people were pretty leery about the trade while with china they didn't think trump was going to come out of it very well but it looks like in this game of chicken is doing pretty well as we describe it big in previous discussions and. is it fair to say that china is getting squeezed here and i read a story this morning about how they have a u.s.

dollar shortage and how that is problematic can you explain to the audience how that works well yeah they are definitely getting squeezed i mentioned some of the economic indicator this is caught china kind of in a perfect storm where they're trying to train this in your economy into a you know the so-called middle income trap their wages have gone up 10 times the last and years so they're no longer the old business model of labor export no longer applies they're trying to transition that economy at the same time since 22008 the 1st financial crisis expect another one you know who knows when so the chinese banking system now is heavily indebted there's a lot of off balance sheet debts that china has incurred officially their 4050 percent of g.d.p. to debt to g.d.p. ratio however many people expect it's multiples of that there is a lot of mis allocation of investments a lot of money into it like to be

a company that can't make miracles things like that nature so yes china is trying to escape the middle income trap they have wasted a lot of money supporting industries they still have a huge portion of their economy that state owned enterprises that they need to support they're not very strong on innovation they are they are at a critical turning point the message for their economy let's talk about huawei for a 2nd silo state made in china threatens. 56492 patents china is indeed leading the world in patents these days so you know for the news a lot lately what's the current status there well how do people to realize that they local company they have 190000 workers 50000 of those workers are actually westerners they have 40000. sorry they have r.v. centers in 20 different cities across the world they mention their sales if you're going to go down 30000000000 there they're pretty much in any mode at this point

but in terms of 5 you wouldn't know where the equipment they are the 800 pound gorilla nobody can compete the united states thanks to our focus on finance capitalism we don't even have a company that sells 5 women there's basically erik's in a nokia but they're really 2nd out of europe but they're really 2nd rate companies compared to poly so the issue here is with huawei dominating your telecom network there is really no way you can stop buying an information. the chinese ministry of state security is dynamic patching of software it's just millions of millions of lines of code it's updated all the time and then the hardware side there's no way you can check every piece of hardware so we're at impasse here where the united states has stopped quali globally and said everybody fell across networks but at the same time there's not many people can compete with them right it's just samsung like event tractable problem that typically of one was see right before

some conflicts began you know we have global conflicts going back a century or so countries find themselves at loggerheads they can't resolve their issues it's there's too much poison on both sides and shot start getting fired i mean it's a same's not to be alarmist but it's the same as that every day care about shots being fired and one reason or another and rhetoric getting more heated as some have said all along currency wars lead to trade wars that lead to hot wars so i mean the way to start the quality situation to me it sounds as you point out there's millions of lines of code and dynamic caching systems right that means us like you know. that's not. this is not going to be solved the either way except chinese spying on american citizens and every citizen in the world as

a quid pro quo for america spying that's been going on in america on the global citizens for 30 years already the now they set the table on this whole global spying initiative so then the question is. our way s.r.d. way to get out of this well this is the so-called 2 cities trap where you have the rising power going up against the declining power that the situation with the u.s. and china you know we're focused on china right now about ip theft which is actually occurred chinese companies like holly and c.c. took down entire telecom companies like north on that was not a fan of it was fine however going forward it's not an issue of ip theft it's about innovating china you know all of the all of the digital technologies were created in the united states you know. laser sensors l.c.d. displays integrated circuits and now all of these are made in asia so the united states is a declining floured with folks on finance capitalism we don't treat our asset we

don't treat investments like our assets like a chip foundry we don't and we don't support chip foundries we support sports stadium the united states is that once we get out of this declining power mode past a certain rebuilding a simpler structure has to start treating core technologies manufacturing them at home and redesign their entire system i think under from he's trying to do that bring back production. but it was because this whole rising power versus the climbing power i don't see that changing or not and i think we're going to continue to see that and we're going to try to out invent china and you know china 80 percent of our ph d.'s in united states in computer science and engineering are foreign students large fortune those are chinese they are educating the united states both domestically and you know the higher levels of in the p.c.

areas but also you know creating these technologies like for investment and manufacturing in and growing up going up the growth curve china's done that. you know mentally less and years of secure less all right well the u.s. is that we're going to do that. that because in order to have a robust manufacturing sector you've gotta start paying people real money and that would mean interest rates would have to go up because they would have to respond to that rise or inflation in wages and that would mean all wall street banks would have to declare their insolvent because wall street banks are. insolvent and their the illusion of their having a life is being fed by 0 percent interest rate so ok marriage is never going to do it have a manufacturing capacity ever again as long as wall street zombie banks roll america and there's a reason why we should think that they won't continue to rule america so let's play a war games scenario between america and china it would be

a financial war and the thing about china is that it actually runs on dollars it doesn't run on to end it runs on us dollars they had 4 trillion in us dollars in reserves you know we send them all of our dollars and they in exchange for us giving them all of our jobs and we send them all of our dollars ok so they had 4 trillion in us dollars now it's down to 3 trillion because they've been trying to keep this currency a peg alive and they're willing to burn dollars to do it but the reports i'm getting are that they lack of dollars the lubricant that keeps the chinese economy going is disappearing it's evaporating due to the fact of this trade war so what will china did to fight this this this currency war or you know because to me if trump want to go down this path he can starve china at the death of dollars and deliver a fatal blow to their economy i think that's as nucular option and i think that's why scenting is willing to do so what can china do in response than we had is it's

the max i mean we used to think about how china could so weak so much debt that if they sold out we'd be in trouble i think that the financial crisis we learned we haven't really limited printing press or at least that mindset of people. and then trying to soldier 2 or 3 trillion in reserves now we would just prefer to meet you know when everything could be ok that may or may not be the case. i do believe absolutely does it you see china could run out of dollars very quickly we saw a great them trying to they literally burned you more than a trillion when you're trying to defend our big just a few. years ago so we would be entering that area where. they met the rent you know we had a beauty to get some a 25 percent they're just going to let the remedy go down 10 percent by 50 percent they've already let it go down 56 percent grade where it started leaking depreciate your currency notify the tier of and the x. were over not only and also they freeze your per account surplus and breed more

dollars so this is really kind of the. number might be locally right and the conundrum is that a condom a is to compete a have all decided that paying people wages to bank make stuff is not the way they want to compete they want to engage in currency wars so whether it's mario draggy at the mark carney at the bank of england or its powell at the federal reserve bank they've all decided they want to go to 0 percent interest rates are now in many cases up to 12 trillion dollars worth of sovereign debt is as a negative yelled they're willing to go down into the negative yielding territory which as well as confiscation by another name so that's financial oppression the very definition of financial oppression this is the essential a they central banks

acting as google ag operators stand we've got about 30 seconds. well absolutely financial oppression there's labor oppression i mean you know you combine these global trade agreements like nafta where you knew combined the labor force one making a dollar an hour the other is making $15.00 an hour what you get is you know you get what happened us it's 30 years of negative wage growth so are no way fro so you have any financial repression at the middle class you have labor oppression at the lower working flacid so as you said i don't see any we added system i don't think us with cheney it's going to be chinese state capitalist model export of globally 1st the chinese find the u.s. financial capital of the model one of the few who are going to have to give in will the other side with the new world. china expert thanks for being on kaiser report thanks max all right that's got a deficit of kaiser par with me max kaiser stacy i would like to thank our guest

dan collins if you want to contact us on twitter it's kaiser report and to lifestyle by all. we're going to st petersburg international economic forum and the topic of our panel is are we witnessing a paradigm shift in the global economic order that answer of course is yes it's a matter of degree. what politicians do you can. put themselves on the line to get accepted or rejected . so when you want to be president i'm sure. somehow i want to press. you to go right to be cross with what before korea more can't be good. i'm

interested always in the waters about how. best suited. to their own beds or to. go behind it or to feel very assertive about how to argue. that it is the people it's. just a pretty good measure should it. be so much moved. to nominate defeat as you know not just go for the ministry which most will be. they are the house from the get go to god since we. need. to mean though in any. discussion or do you. think of the learning. curve for the system definition in.

the new system the new set of. cool. lose. sleep. sleep sleep feel.

the. lattimer prudent turkey's president on the end of the german chancellor angela merkel as the g. 20 summit enters day 2 in japan. the european union launches a new payment system called instead to help firms that bypass u.s. sanctions against iran. the video showing danish schoolchildren being taught how to perform muslim prayers sparks a furious public backlash. debate the story. is important for most kids to know about the jewish faith the christian faith faith yes i. think about what goes . through a. violation of the european right.