or how is it what role would the former president play within the republican party because by all accounts trump intends to remain relevant if this is the case what is the future of the populist wing of the party and fourthly if indeed the g.o.p. is now the party of the working class will the party leadership in praise this new record. hi i'm max kaiser this is the kaiser report it appears as though things are falling apart as well certainly remember that those supplies shortages that we're 1st seeing at the early days of the lockdown well we're seeing some significant law some significant shortages now and on the high tech and rather than on the basics

the food and right but before i get to that i want to tell you that on the next episode of kaiser report we are going to talk to you about that morgan stanley report that everybody is talking about the morgan stanley report about bitcoin as a replacement for the u.s. dollar and how it's succeeding in doing that oh that's great i can hardly wait i've got my flame throwers ready to go right but because we are talking to dan collins who's an expert on the china u.s. trade relationship this is a perfect time to discuss what we're going to be discussing here and that is the shortages and those crucial chip shortages a semiconductors right us to explore immediate actions to address chip shortage says the nikkei and this was 1st squawk tweeting about it and they were talking about well you know there is loads of production shutting down for automobiles and things like that because there's an actual shortage of semiconductors i guess

partly because of the supply shortages that are emerging due to covert restrictions at many manufacturers and on top of that we have a lot of demands because if you think about it t s m c is the biggest one of these that taiwan semiconductor manufacturing corporation and they are almost the sole provider to a 6 for the chips so there's a lot of demand from the big. sector for these chips there's a lot of demand from the gaming sector which are all these kids lock down at home loads of people buying high tech equipment while they're locked down around the world so there's a lot of demand for semiconductor chips in the products that you know fro people in lockdown but there's also a shortage is due to cove it right there's a lot of demand for some a conductor chips you know that this is the basic building block of the electronic information cyber economy gaming economy attention based economy is based on the

chip and the u.s. sadly does not really have any chip capacity they have allowed other countries in asia to become the dominant players in the chip business and so when this type of. the supply crisis hits the u.s. is completely reliant on the kindness of foreign export are so you know we don't have our own way of manufacturing chips and as you point out of believe us general motors is actually halting production of automobiles because they don't have enough chips so they've got thousands and thousands of cars little backed up waiting for it to be finished and so this is this is what we've been saying now for a few years well you're going to talk more in the 2nd half to dan cons about that he actually used to work for general motors in china and so he knows a lot about auto manufacturing process but in terms of the u.s. yes biden administration says it will address global chip shortage i mean the u.s. used to just only

a decade or 2 ago provide 50 percent of the world's semi to conductor chips now it's less than 10 percent where companies like intel for example they don't invest in r. and d. and chip development because they get hit by in their stock price and the american company investors punish them if they actually manufacture anything if they actually produce anything if they actually invest and implants if they actually invest in any sort of r. and d. so what intel has done over the past decade is you know they're not the worst are not as bad as i.b.m. but they do a lot of share buybacks and it would especially last year they were growing their buybacks instead of investing so here they are intel is one of the names companies that pleaded with the biden administration to essentially get the taxpayer to build some plants here for them and basically you have to nationalize it right because of our predatory financial system everything is financial life so if you have any assets on the books it's going to get strip mined by private equity groups and

hedge funds who will attack you if you have any assets if you have any sort of research and development so there i guess you have to have like the marines defend your manufacturing base essentially you know that's why the government underwrites all mortgages they. and to write all student loans they are now they have to underwrite all the semiconductors so basically we were having to become more and more like china in order to compete with china right you know at some point the u.s. economy went over the event horizon into a world of pure financialization yeah and we've been talking about this for a few years where these companies like intel and i.b.m. you know i.b.m. bought 160000000000 of it's own stock back in the total companies i work 130000000000 right so it's countable islam against each other and it's eating your corn seed of corn stock right you should never not not your corn now now you should never eat all your coat you're seeing because you need to plant it for the next year that's what manufacturing companies invest in r. and d.

they invest in capacity and extend expansion eccentric but buying back your own stock is eating back your own seed corn i believe is the right farming term for this and so what happens is it's absolutely guaranteed that within 2 or 3 years you're going to find yourself at the mercy of your competition and this is in a chip plant is not easy to go out there and build a chip plant is intel's begging the taxpayer you know the taxpayer has been bled dry by the other aspects of the dysfunctional american economy so they're not a come to the rescue you're right it's going to be completely nationalized and the u.s. is going to a command and control centrally planned polak bureau style. economy certainly because of the predatory nature of our financial system and how it's so much more profitable to plunder a company than to build a company and we of course don't do any sort of 23510 year plans like economic

plans or industrial plan so yes we are to disadvantage when we're looking at asia as when we're competing with them and they're they dominate in the chip manufacturing business now here's some of the letter that was written to biden who's now promising to help them out but just bear in mind that yes i'm c which is the biggest semiconductor chip manufacturer i guess samsung is also their closest competition and korea. some see is building a massive plant themselves and arizona so they seem able to build something here in america pay the dominant wages that are you know available here in america they have no problem competing here so this is the letter by c.e.o.'s of several companies including intel qualcomm a.m.d. and other members of the semiconductor it industry association wrote to the new president stressing the importance of increasing domestic chip production quote semiconductors enable the technologies needed to realize your build back better

goals including smarter and safer transportation greater broadband access cleaner energy and a more efficient energy grid while also providing high paying jobs for americans and strengthening our advanced manufacturing base we therefore urge you to include in your recovery an infrastructure plan substantial funding for incentives for some a conductor manufacturing and the form of grants and or tax credits and for basic and applied semiconductor research where max and i grew up in america this is what we used to do this is what the comp in the country was built on these giant manufacturing scene who hired americans on good wages spent a lot of research and development was always ahead like these other technologies a list that if you want to dump. the next 100 years eve got to be ahead of like so why don't these companies do it themselves know what with silicon valley it was jet propulsion lab or laboratory it was stanford university it was the post nasa

manned land on the moon phenomenon and that was what silicon valley's to do they should do all the research they had come up a arpa darpa darpa arpa right they had all the research the technology and we became a world class technology leader through the financialization process which is essentially gutting of these industries and you know the funny thing when you're reading this i couldn't help but think about they had an image in my mind of the central bank flying billions and billions of some a conductor chips because they didn't they will come out and say we need to support the semiconductor so we're going to buy all the chips of course is a ludicrous idea because the chips aren't usefulness they are put into devices that power the economy but similarly the federal reserve bank is equally stupid in buying back all the bonds of the issue because that without those bonds and that money circulating in the economy and we know that money velocity is dead there's no point in buying back your own bonds so it's as foolish just as a great example because here you have america's financial ization gone so whacko

out of out of the extremes that we are now at a point where we cannot manufacture the basic foundational components of the 21st century economy we are literally taken ourselves out of the game by throwing the keys to the economy to private equity groups wall street heads funs financier's and money printers and now it's too late when we visited the united kingdom one thing you notice is that most british people hate the very very successful british person and you're starting to see that here because who goes around that who's the one american he's several nationalities in fact that manages to build here manages to just do. despite all these like instead of being going to the government nonstop these with a begging bowl after you bought back all your shares and so you've destroyed your balance sheet. musk right he just goes and bills that i'm sure like i know you're

a fan of kinds report i'm pretty sure i can sense it and i bet you if you watch this he'll just start building semiconductors himself like semiconductor chips. what you don't need to go begging you could just do it just build that just see it's building in arizona then that's your competition go build there too right you mention europe and in the u.k. there are higher economies built on permission they all seek permission to do stuff in a permission process is the bureaucracy that keeps their economy stagnant for hundreds of years in the u.s. the goal is or the montra is don't ask for permission just do and that's what gave us the american century in iran must embodies that he also said recently if you want stuff you need to build stuff that's right and that's and again the other equivalent to this is when we were in the u.k.

and he signed something disastrously wrong caused by the government what do they do they form a commission a committee to look into this for several years right well that's what biden's doing president biden will sign an executive order in the coming weeks prompting a government wide supply chain review for critical goods including but not limited to the semiconductors the power consumer electronics the review will help the buy the administration identify what are the appropriate and immediate actions to take which includes improving the physical production of those items in the u.s. that i got have the exact same reaction when i read that that this is exactly what you see in the u.k. the u.k. is really good at producing one thing and that more bureaucrats more civil servants that's their primary g.d.p. booster are creating more bureaucrats in the us now we're going down the same path every single problem is met with increased government increase bureaucrats increase the payroll increased taxes to pay for all these non-performing assets and composed

and the results are going to be you're all sclerosis is what britain found itself in and now that looks like they're reentering that the u.s. equally will be completely paralyzed because they're cutting off the entrepreneurs from being entrepreneurial. all right again take a break and when we come back dan collins china expert is going to break it all down don't go away. nations human beings change from each absorbing. yes i think is what is lost there is that there's going to make people uneasy really why should we why should we be forced to buy time just because nature sizing them. or somebody new brain what are we going to choose that. the british and american governments have often been accused of destroying lives in

their own interests or you see in this these techniques is the state devising methods to him to essentially destroy the personality of an individual. by scientific. this is how one doctor's theories were allegedly used in psychological warfare against prisoners deemed a danger to the state that was the foundation for the method of psychological interrogation psychological courtroom. disseminated within the u.s. intelligence community and worldwide among our allies for the next 30 years and how the victims say they still live with the consequences today. look forward to talking to. you should work for people. must obey the orders given by human beings except when such a conflict with the 1st law show your identification or should be very careful

about artificial intelligence and the point is to create. with artificial intelligence will some of the demons. the obama's protect its own existence as a mixed. welcome back to the kaiser report time not to go to entrepreneur and business band and collins who lives in southern florida after 2 decades living in china where he worked for g.m. and then as the publisher of the china money report dan welcome back a mexican to be back now as mentioned you are in southern florida and it's

absolutely booming as fin tack and because owners flee the high tax manhattan for no tax florida you're noticing the influx what does it tell you about how to run a city dan collins well south florida expects to see miami the mayor flores's is focused he's. created a huge campaign down here to bring change companies into so florida particular miami you have the finance sector coming down you know the tech sector coming down you have tax refugees out of new york and california coming in. we have largely survived most of the lock down state you know we have kind of been targeted lock down school kids don especially the elderly we were lucky with the weather here so we had outdoor dining from day one started last march. and yes been a great place to 2 goals demick and the amount of people coming down is just growing day by day and i think by him he's going to be really. one of the future

tear one megacities a we're going to see develop so if the united states you've got a healthy competition between states because wyoming which is opening its south up to the crypto bitcoin economy and being very accommodative for bitcoin and and now with the mayor of miami has become a bit coin or is playing civil servants and bitcoin but let's look at the country as a whole and how it's doing competing with its competition in this case china. and the china and the us what do the shipping rates tell us about how this competition is doing them in the world of adams and not bits were failing miserably so manufacturing real world physical industries shipping costs in the last several months have doubled their ordeal sure they used to be 324004845 containers it's now northwards of $6000.00 for a container china's exports so much to us everything's backlog really major ship

ship shortage which is going to last years we are no longer able you know to able to compete globally in the marketplace with real physical goods you know our main exports being so he. agricultural goods we have to explore a lot of planes then those started flying out falling out of the sky so now they're going to have trouble selling planes but the basically we have ship load a ship loads of goods coming in and we have nothing levy this week there was news that they want to get the containers back so fast to china they're all just going back empty they're not even bothering to go and pick up the u.s. goods anymore because our exports are so low value added you don't go pick up a $30000.00 container so even when your weight now at $300000.00 are container full of let's not computers or solar panels or anything else that china ships to us so we're staley misery miserably in the in the real world of physical goods but it

sounds like even the value of american exports has fallen below even the price of trash because i remember 1015 years ago america has to ship its cardboard to china and there is a big business in recycling but of course china shut that down and sun now america has literally nothing there shipped to china they're just sending the empty ships back which is really an amazing statistic now tell us about the semi conductor chip shortage that's going on because this is a classic example on so many layers and levels. walk us through it yeah the united states we invented the semiconductor we used to be the you know the major manufacturer semiconductor more than 6070 percent of manufacturing that several decades ago were going to be down to less than 5 percent of global semiconductors manufactured in the united states with the next couple of years. semiconductors you know is the new oil it is the brains of behind everything the weapons industry consumer electronics miracles now cars have more than 1500 chips in them so

this is the key part of a high tech modern society economy and we are now losing the edge in that it's mostly taiwan semiconductor same song you know if intel shares you know its share of the pie is shrinking but we have a major chip shortage going on nobody has planned for this we're going to be years with the shortages that carmakers are losing billions of dollars estimated to loose $60000000000.00 in vehicles that they could have made which they actually don't have chips anymore this is this is kind of the spearhead of the kind of global supply chain right now that's getting rocked globally and it's going into everything prices are going up and everything but chips is actually just shutting down industry after industry is they don't have capacity for 15 or tariffs on a car general motors is shutting down production because they can't source chaps meanwhile correct me if i'm wrong about a time when he has to have companies actually going to open up

a chip fabrication plant in arizona how did it how come if a china can build a plant in china and in america but america can't build a plant in america than intel's last large fabrication plant was built in china well we had under the trumpet ministration he went and asked one semiconductor to put a plant in arizona that situation where intel's manufacture is based out of outside of phoenix and taiwan semiconductor is putting in a massive $12000000000.00 fabrication plant now the only problem is in arizona the problem is him. won't be ready until probably 2024 and in this area chip you know we're competing heavily now against china china slowing a trillion dollars into manufacturing semiconductors and you know the whole supply chain with its raw materials testing equipment the chip fabrication plant so they plan to dominate this century through chips and that's really where the where the area competition is so other by the administration has promised

a commission to look into this u.s. chip manufacturers are asking for some of the trillions in free money to build a plant. you know this is it just thing because america same sort of completely lost its way here so instead of just figuring out like we've got to start building a plant and competing they're going to do a bureaucratic move of having a commission and then they're going to go out and they're going to back taxpayers to foot the bell right i mean what i we become angle and. it's hard to say i mean the problem is and we've been talking about next for years is that there is no free market so we're out there competing against countries that load up and subsidize your own chip fabrication plant so it is kind of crazy we do say that we do subsidize a lot of businesses here but it's mostly sports stadiums oh if you're going to subsidize something i do favor would favor a chip fabrication plant but your point i mean yeah i just had an bureaucratic meetings about it won't help the core question is why we cannot make anything in

the united states anymore why our main export is scrap trash and so we b.s. and once we answer we start asking the right questions will find the right answers and that is basically asia's japan china also create these are murky chiles economies we've been dnd us realize our industrious crumbly you know we're trying 10 children dollars a year tent cities are popping up everywhere it's time we step back and not just have a meeting but we start finding the root cause and taking action on this now also reminded our looked at the infrastructure in the u.s. has been ignored for decades and here we have a cold spell in the us and the entire oil business in texas the shutdown that man has got to comment on infrastructure play damp air infrastructure is an absolute disaster for anyone who spent any time at ija you literally get depressed when you come back united states saying that my home state of michigan will literally destroy your car david on the roads i mean everything is everything will bill in

the twenty's thirty's maybe stephany's or sixty's we've done nothing for decades and decades and decades on infrastructure and it's. just it's just back to me what's going on with the u.s. and in terms of the extraction locals the countries collapsing in slow motion on the semiconductor front and when they're used in cars it you say that there are the new oil that the new basically the building block of the 21st century you send all technology it's in security i take it that companies in g g 5 i guess it's called and china right they form for telephony applications 5 j. how give us a round up i love you give us the update on the technological advances that are going on in china last time you mentioned a 5 k. and also they built an artificial sun yes so why we came along talk about being asleep at the wheels isn't as america has been asleep at the will of china bali

with became a global monster and 5 g. nobody can even compete samsung in nokia have to buy from huawei they're this small bit players the us we don't even have a company that can compete in 5 g. now we have our oligopoly telephony cut businesses out claiming we have 5 g. or actually don't it's like 30 seconds you know in manhattan a day you can get 5 g. and. china already working at 60 the research institutions open they're working at 60 they sold something like already 200000005 g. cell phones in channel it's already launched 05 g. is is 10 x. the speed of 4 g. the real 5 g.'s a nexus mean more g. so this is going to open up all types a new industry so the 1st countries they get they're going they're going to have the businesses ready and the applications built to run in a 5 g. world and we just far away behind for example you have what 5 see the possibilities for tele surgery right you can i was surgeon in one city or in one country perform

an operation on a patient in another country is in $500.00 to laugh an a and there's no leighton say and of course that is. i mean just think about that in terms of what the possibilities are in terms of simultaneous synchronized logistics medicine but the u.s. is now lagging behind and in a huge way but i remember joe biden who any were for his comment when china was led into the world trade organization he said wait a minute if this fine because i'll never compete with us come on man they'll never compete with the u.s. and now he's running the show in washington they say what would it be fair to say that there underestimate the still underestimating this competitive threat from china absolutely i mean even a few months ago he came out with the oh come on man speech they're not competitor i mean if you've been to china i know he has because i know hunter has been there so. way everybody is underestimating chani you have to go to most of the people that common in china actually never been there or they've been there on one week

trip you have to be there i lived through this for 20 years i literally saw people go from bicycles to mercedes benz who's i mean the incredible it's been the most incredible change economic training for mission the world has ever seen china will pour more concrete in 2 years than port been poured in the history the united states that's the type of numbers that are in there it's shocking what's going on just quickly i think it's important the debt situation because it's as though it's normally referred to as their achilles heel you have a different the take on a down china has definitely added debts i mean even 5 to 7 years ago most you know the chinese housing boom that happen most people are paying cash for homes their pain cash for cars we've seen that traditional last 5 to 7 years people actually take you know loans for homes loans for cars i think and balance sheet china has 6060 percent of g.d.p. but there were no where in terms of debt but they're nowhere near the debt in the obligations that the u.s. the u.s. penitentiary last year we're going to print print 10 trillion this year with no way

of knowing productive the common county and how to pay this back i mean who are. i think we're going to pay it back to you so we've seen exports or scrap trash exactly trash and soybean sounds like a near fast food restaurant tank on the carrier all right 2nd segment but thanks for being on class report thank you and that's going to do it for this edition of kaiser report with me max kaiser and stacey arutt want to thank our guest dan collins until next time by all. those. beaches. in the lower story. when

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