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 or suggesting if $1000.00 a month that's a dividend from my subscription to america that's fine there's no coercion involved as the 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 reliant 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 in oligarchies 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 me. her drug makers sued the trumpet ministration to block

a rule that would force them to post a drugs 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 price is 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 yeah i think you could have the possible to subscribe to

different countries but in a more germane to being part of one jurisdiction that being united states you could have a republican or 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 impending on the how each one is offering and what the the what's on offer you would either cancel one or not cancel the other one and have a couple different subscription services now there are pharmaceutical companies have they have our 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 to 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 you know 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 an 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 all the godly 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 it's a racket they're exempt from antitrust laws so if you applied and 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 capitals and 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't 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 right what 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 with 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. dollar is backed by men with guns of course the mafia is known for having many weapons and at noon 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 at 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 to make cola 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 mess. with our own good sources. 40 feet or so. and argue. every because the people. just showed you the mother ship it. to me. put them in the fish you know not just because. they are the house from. god since we.

need. to mean don't hate. this kid who want to. build a company in different meaning you can. run into him. my son doing drugs my nephew was still in drugs my sister just with doing drugs it was like an epidemic of drug abuse america's public enemy number one in the united states is drug abuse he started going after the users in the prison population who are we started treating sick people people who are addicted to these drugs like criminals while i was on the hill. the war on drugs. there are countless numbers of people who are in prison for.

for whom minor minor offenders in the drug trade it's a lot watching your children grow up and miss you in waves and say by daddy as you're walking out of the abyss it's just it doesn't get easier. 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 that counted a year a 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 where 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 will get some type of out of the announcements the trade or 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 30 $1000000000.00 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 it 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 state the so-called middle income trap their wages have gone up 10 times the last and years so they're no longer their old business model of labor and 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 in innovation so 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 the local company they have 190000 workers 50000 of those workers directly 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 years whitman now we're 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 why we dominate your telecom network there is really no way you can stop buying an information going back with chinese

ministry of state security 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 as a samsung like an intractable problem that typically of that 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 the shot start getting fired i mean it's a sam'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 discard the quality situation to me it sounds now 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 dan 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 out 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 these are made in asia so the united states is a declining flower with both some finance capitalism we don't treat our asset we don't treat investments like our asses like it's just 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 and start 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 this whole rising power versus the climbing power

i don't see that changing or night 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 p.c.'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 has done that. you know mentally less and years of security all right well the u.s. is that we're going to do that. because in order to have a robust manufacturing sector you've got to 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 gay 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 keep 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 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 that we were just pretty meek 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 tear of and if the x. were younger not only and also going to be a priest or per pound surplus and really more dollars so this is really kind of the . number might be locally right and the conundrum is that condom a is to compete i 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 it's

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 has a negative yelled they're willing to go down into the negative yielding territory once 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 you combine the labor force one making a dollar an hour making $15.00 an hour what you get is you know you get what happened us 30 years of negative wage growth so no wait growth so. financial repression at the middle class you have labor oppression at a lower work the flat so as you said i don't see any we added system i don't think

the us will gee it's going to be chinese capitalist model export 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 going to deficit side of keyser part with me max kaiser and stacy i would like to thank our guest dan collins if you want to contact us on twitter it's kaiser report into lifestyle. with gold makers manufacture consent to public wealth. when the ruling classes protect themselves. with the famous

merry go round listen to the one percent. we can all middle of the room say. it's hard to take something from somebody if you don't have someone to replace. the work to do this interview today. i don't use market in them they take me. there are more serious. so how can i tell you stop selling drugs if we'll hire someone to put the money in a box. they judge me on the way that life has almost been basically mccullers peaceful for the worse do you guys know what secret me security positions

i've been in that day were jack me again. you see people get all their cars and i'll see you coming no hard and they seems like they'll hurry up and run into the house like they don't want to they don't want to talk see her get your mail or anything like that. i just want to go. and do that. just try reading a. good chance some give me. as we speak large organize care of it are on the march to the united states. then 70 and a player coming out for to carry. just wars remains then i think that. this

is a virtual invasion of our country for so far because the only thing we face. is i'm at the end i thought i meant they are there are a 1000 near. enough in the form of what they are you know it's for the sufis. and i found. this you can do is you know we're going to see a more little girls you know to society issue for that. the. police. leak.

evolution the. the. u.s. and russia greets a new. call for improved trade relations as. the president came away from the summit and then. that meeting was good and businesslike we discussed the whole area of issues which are of interest to russia and the united states and we had a discussion we had a great actually we had a great discussion with president putin myself whether it was really a tremendous discussion. of the g. 20. in the ongoing trade war between the u.s. and china.