coming real as we see the interactions between the biden of ministration and chinese delegations around the world and especially in terms of trade policy you know last week they were the u.s. officials said that china was being aggressive seeking economic domination which just sounds like capitalism right like they're they're providing goods and services that people won and this is considered now economic domination so i'm going to read this tweet from a former diplomat from portugal and when he looked at what happened at the alaska sama where his review of the situation was especially in terms of u.s. secretary of state blank him it just seems that blinken was not really prepared and was taken by surprise this is not 2000 or even 2010 outcome was not great with us projecting the meekest of images and still of from chinese

television of senior diplomat us to be the one to suffer if it suppresses china and you see their trade negotiator saying didn't you believe in democracy because i guess the us officials kicked the media out at some point blank in the got call lincoln. they got caught in the headlights you is a deer caught in the headlights oh blink and yeah this was a remarkable i don't remember any kind of a tete a tete like this in diplomatic circles i've been observer of american politics for darn near 60 years i don't remember this kind of slap in the face it was kind of like a quick. like you know the u.s. diplomat lincoln was getting you know manhandled pretty pretty soundly by the chinese counterpart and the spin that came afterward from the u.s. press was you know our heroic diplomats save the day in this type of thing it's

really it is the 3 cities chapter at large so i guess unlike previous 3 cities traps and you mention 18 of them this is be the 1st one that we get in real time twitter version of it we're going to see it unfold in real time on social media so this will be a unique in the transition of one empire to another from the american empire to the chinese empire we're going to see this in real time played out on social media this is the unique bit about it well speaking of watching it play out on social media of course just hours after this public humiliation. the president of the united states fell not once not twice but 3 times climbing the stairs to air force one so i mean that. it's a little bit bad timing for the president to start falling down in public but you know as well you know the city's traps are the reason partly why we even have such thing called diplomacy diplomacy used to be not for your allies but for your

enemies so as to avoid conflict and avoid especially going bankrupt and losing all your gold obviously now we don't have a system like that so diplomacy they feel is no longer needed but nevertheless you know the art of diplomacy was developed heavily the french were very good at it it was french was the the language of diplomacy was an absolutely yes french is the it the language of diplomacy because it's impossible to say anything specific so it's always the matter what vague and it has multiple interpretations because they say it's the the lonely de bois the language of the woods so it's all a little chirping listen just your mouth. contortion you know you could say the exact same thing with a different contortion your lips something completely different way right so well nevertheless this is the city this chap being made real it gets real and

we're also seeing that can tell an effect garo and that's in the data that the fed itself provides. and yet with when they speak when they do fed speak they'll say that they're not causing the cantillon effect or if they are it's just a little bit you know the those who get the money 1st i.e. the bankers and the elite the very wealthy they benefit from the free money essentially they get it at 0 percent by the time it trickles down to people buying houses 3 and a half percent and then to credit cards up to 18 percent so drawn power on wall street journal op ed i truly believe that we and then wolf richter adds the rich will emerge from this crisis stronger and better as we will for it to as the rich have done so often before so i have to do is look at the data but in the op ed in the wall street journal fed chair jerome powell rationalized and defended the fed's

ultra radical previously unthinkably monstrous and super fast bailout of asset holders starting a year ago when with them for 3 months the fed created 3 trillion dollars and purchased assets with them and created the biggest media hoopla about these purchases and many more trillions in future purchases and ordered to inflate asset prices further and make asset holders immensely rich it was a huge success asset prices nearly across the board surged way past the levels before the crisis and those holding them got a lot richer very fast they'll let me give you 50 years of american history in 30 seconds thanks 171 us closed the gold window answer period of pure fiala money then we have reagan deregulating in the eighty's to make sure that the people who control the fia money can engage and can tell in effect and cap the well said

income spread to unheard of levels then we have like a sailor in the last 24 months announced that. the central banks are out of control and he and his fellow c.e.o.'s are going to launch a speculative attack against the central banks by borrowing at the 0 percent and buying bitcoins flash forward to next year us dollars collapse a few percent because holders now rule the world and jay powell is working for coin base. i get it well you know the data that they show is a pretty remarkable just look at the chart that's all you need to see really it's called wealth disparity blows out according to the fed their own data total wealth by wealth category in trillions so the top 10 percent own $85.00 trillion dollars and wealth the next $50.00 to $90.00 percentile own $34.00 trillion on the bottom 50 percent own 2.5 trillion but you can really see in that top line the

top 10 percent most of it over half of it is actually in the top one percent but you see that any time that's the 2008 dept and each time it dips the fed that's that's what the fed seems to be responding to is anytime their wealth even slightly declines and closes that gap a little bit well the fed goes berserk and starts money printing and that is the can tell in a factory let me just explain the left side of the political equation has to offset the money printing something called minimum wage seester things go counter to each other when the fed raises the money supply as they've done by hundreds of percentage points minimum wage should rise if minimum wage war keeping up let's say with gold over the past 50 years minimum wage in america right now would be $50.00 an hour 50 dollars an hour is the correct hourly wage to keep up with what the fed is doing remarkably when these democrats got into office they own all 3 branches of

government and they had raised the minimum wage on their number one agenda item they totally puked they totally choked and then stabbed all. all of they did typical democratic thing they decided like you know what we're actually more interested in being conservative money grubbing g.o.p. years so that's what we're going to do and they're really doing a great job a o c is the new ronald reagan thank you they are saying you know he breaks down even further the wealth disparity per capita so if america has 330000000 population then one percent equals 3300000 people and 50 percent equals $165000000.00 people and so per capita at those levels wealth equals assets minus debt so the wealth of the top one percent in america is 11700008 $114.00 per person that's up by $1200000.00 from the 4th quarter of 2019 the wealth of the bottom 50 percent is $15065.00 and that's up 2800

$51.00 so from q 421002 q $42020.00 the wealth disparity between the one percent on the bottom 50 percent ballooned by $1100000.00 per person so yes like you're saying they're saying we have to give these checks to the people and we're doing good we're doing good in the meantime they're 1st of all they're not even looking at what the fed does now but all those other programs needed to be created and the lobbyists contact the congress people make sure this happens ok they're say we'll let you give 1400 dollars to 4 the bottom 150 percent but you got to give me 1100000 trat exactly so let's hear sounds from a 1300 to me look the poor people america have no representation in government that's that's the problem there have been in government that represents people who are not part of the multimillionaire lobby in class who work for banks who print

money for themselves. to the console effect unless you're printing money for self and gaining from the console in effect you have nobody in government representing you and america not a single congressperson not a single senator nobody in the white house represents you you are on your own are having fun i knew you would buy because for 10 years like we've been saying and you 2 would have 101520 1000000 pounds even if you started with 5 or 6 $1000.00 but you know come easy come easy go right so again the cantillon effect gets real we're seeing an actual data provided by the person in charge of the cantillon effect spigot they're the ones printing the money printing the credit and they're the ones counting the assets so what the fed finds is that when they count this wealth of the bottom 50 percent and their data shows that the bottom 50 percent have an average wealth of $15065.00 per person well over half of that how they count wealth is actually not wealth they're depreciating assets like cars dishwashers

furniture smartphones and other consumer durables that gets counted in there so that on average is actually 8920 of their 15000 a well so it's actually not wealth it's not something they can you know borrow against or something like that it's not like property or bonds or anything like that so no other consumer durables have a depreciation rate of you know 100 percent and you take them out of the trash and hope you don't have to pay to dump them. exactly so will factor conclude is that if asset prices surged by 20 percent and that's what happens with all this money printing we've seen across the board all asset prices surge the bottom 50 percent would pocket just one $1228.00 while someone worth $2000000000.00 would pocket $400000000.00 so that's that it's like. trap like if they said it a strap it's

a trap that can tell an effect as a trap there's no we're at a point where you can't get there from here like we can't we can't get out of this such a i was on jimmy door show explaining this in great detail check it out on your job i did a good job i'll be back there soon to catch up with take a break and when we come back much more coming your way. so what we've got to do is identify the threats that we have it's crazy. let it be an arms race off and spearing dramatic to follow only. i don't see how that strategy will be successful very critical time time to sit down

and talk. the problem with the united states. china russia countries which they don't like it to you doesn't matter what kind of regime they don't have. problems with different regimes countries generally is quite a bit like saudi arabia for some but it is a. different regimes which was. very strong the americans come to nothing their books so the result is that they don't know what to do with the job to know. where.

an entire village in alaska has had to move if another country threatened to wipe out an american. we do everything in our power to protect the. water the escaping climate change is the same threat right now alaska does seem some of the fastest coastal erosion in the world lost about 30 feet. 35 feet of grass in just about 3 months while we were measuring. in

case the river is. closer to the power. or were part of a murder of a person from. welcome back to the kaiser report imax keyser time nattering turn to dan collins dan welcome back to the kaiser report thematics going to be back well right so we always come to you for insight into what's happening in china you've been reading the mandarin language news for insight into the extraordinary change in the u.s. china relationship over the past week the alaska summit what on earth happened there how did secretary of state blink and get so badly dan well it was

a complete amateur hour at the summit so what happened is blinken opened with steve and what they're going to cover on the agenda and it sounded like somebody talking to there not a child or somebody coming to the united states now we're going to cover every one of your domestic issues you've been bad and the john jay jay which is the foreign minister blew up like he has a normal to meet a protocol to respond he took 16 minutes this is gone viral accuse united states of so many think it's gone viral all over china the 1st thing everybody was talking about is why the person next to blink in his purple hair and went crazy in china. you think you know he's not serious i mean for me it's ok but china and china purple here a sign of mental instability so that's why it went viral 1st of all say it was all the time all the discussion so you know china said look it opens up with you're

creating global instability the chinese side comes back into school global instability have you not heard of libya have you not heard of syria i mean not heard of multiple color revolutions if you've been doing it the united states as it and they quote goes around the world using their military and financial edge of minute money control try creating global instability and the key point is these. you have no right you have no qualification to talk down to us about global instability i said the u.s. side kind of went wow we're not used to people cocked back to us so this is a country in china that doesn't need american capital it doesn't need american technology that can export markets united states about 20 percent now their exports they could live without it they build a larger needy the u.s. has basically no military control no missile train a c. or the east china sea so china's not afraid and they're acting as equals and they're telling them you're going to treat us like equals or we're gone this is you

know been protected by you and others over the past few years i've been talking about this the rise of china and how the usa was really tone deaf to what's happening there now unlike a lot of people who covered the space you actually lived in china for 20 years and you know chinese economy the chinese press how did the chinese press cover the summit well they're calling it china pull their ace of ace card basically their it's very positive light they like the way that foreign ministers handled the discussion. there the formally the government is saying talking is better than not talking it will we'll be talking again hopefully there is some type a reset but you know china's not going to play number 2 what what you saw here is well for your diplomacy what they call it it's been a focus for 23 years that they're going to get much more aggressive in stand up for themselves in the global you know propaganda that's been getting directed against them on things like shin young day after they have this diplomatic disaster and the

alaska summit by them fell 3 times while trying to climb the stairs of air force one and that's not a good luck certainly how did that play in china. well there you can imagine it's also gone viral in china there you know people are saying is this america you know . we can't they can't even climate stairs anymore so yeah it's kind of be a joke in china right i guess is better than bush number one i believe he threw up on the japanese leader during his tenure so they should count themselves lucky that elise if it is a shoe thrown at him yeah that the bush 2 had the other shoe thrown at him right so this is actually an improvement falling down or up the stairs of air force one is we're making progress over here so now you have officials this week in the u.s. said that china was seeking quote economic dominance and that this makes them

a threat to the u.s. . i don't get it of course china seeking economic dominance i mean what's what kind of statement is that it does the u.s. think that they own the world or something it seems pretty good this is does the u.s. understand what they mean if competition means is such a dumb statement is this saber rattling way of saying that china is out competing us what's going on there dan john is all competed us in in every facet you know and now they're technically ahead of us i g well bill payments infrastructure you don't have a train. it was 1100 kilometers in 4 hours it's like boston to chicago 4 hours and we are amtrak does it 23 hours there infrastructures all brand new brand new cities you know so they're clean our clocks they've done this behind very high tariff trade barriers so we've gone decades where our goods to them are 40 percent duties in their goods to us or 2 percent and then we look around and wonder you know what

happened but so we're just at the press of this we've been no compete this is nothing you can turn around in a day it's going to take a long time to get us manufacturing back and it doesn't change overnight let's talk a slightly different take on this china is starting to crack down on their domestic internet behave myths like alibaba and finance all by 10 cent and others these companies are far ahead of their global competition in terms of fent tech innovation well that innovation die with this crackdown in other words are trying to strike a balance there is i can all work damn i don't believe it'll it'll die completely these companies are going expression too big to ali baba in the 10 cent or have been dominating the new tech economy of china they became so powerful through firms like and financial which only ali baba they were sucking up 30 to 40 percent of global savings out of the system so it was just a myth just america they started buying up media the basic any new type of start a comes up they buy it so these companies just became much much too powerful and

now china's was forced to after the baby system you know be virtually got put in it and financially they had to do something so they're trying to create a balance now as we speak there one thing it doesn't make any sense to me is that they abided ministration saying hey china is time to outcompete us or what and instead unleashing american life a new ours in america looks like america is going to follow china and censoring big tech. like doesn't it if america wants me america should may not follow china and now the censoring crackdown ban yeah we have i mean we're going to have to get our own game playing together and figure out it's going to be essential zeeshan if you look at a few of the air promising areas the united states economy you know electric field bugles with test low space x. bitcoin changing money these areas are decentralising using american creative

ingenuity ingenious we're going to look for all solutions the economy around this type of area and we can all compete china but it's not going to be done by the will playbook we've got to take new 8 years of this right i remember back in the eighty's when i was the story on wall street when i was working on wall street that japan was going to take over the world and the u.s. had to get used to being number 2 and then they unleashed the internet and japan could not really do what america did on the internet now is to create all these world class internet companies through the magic of interest of american entrepreneurial as i'm and so then we had a huge 1990 s. in the u.s. so it seems like the biden ministration should go back to that as this is the playbook and say wait a minute you know we americans are entrepreneurial we need give them freedom you know that's what it says in the frickin constitution freedom you know don't don't follow in the censoring footsteps now as you point out that these corporations in

china were indeed growing more powerful than the state and the u.s. now has a similar situation post world war 2 and the government here in the u.s. . they they they seem to have conceded the fact that they just don't have any power over these companies to do anything or no game plan to do anything. it you know how do you add you if you were advising the current administration what would be or 3 point plan well i think yes as you point 0 max we struggle with recognizing monopolies when they're in profit when they're in plain sight we didn't do anything with microsoft in the ninety's when they were basically a monopoly we've got google today which is an absolute monopoly in search we've got amazon which is quickly becoming a monopoly so there needs to be obviously government action around it what that entails i think they need it you know they need to have a study and look at it and i don't know if it means breaking it up or it means

trying to understand how these companies became so probably given with obviously you want ingenuity and you want you know i think these are great companies that some of these companies are been put together but as long as their monopoly positions it is going to stifle innovation and that's one area why you know china is winning the war in a lot of check now you know our fastest growing social media platform united states which is donor sharing or zoom is done by a chinese immigrant united states so we're also losing this side of the game so we're not even keeping up in that area as much as we were as you mention the ninety's and not for software but yeah there's we we need to look at where we were starting from today and how we get to a better point because obviously something's gone wrong 90 percent of our semiconductors are imported 90 percent of the fish we consume is imported that's those 2 things don't seem linked but they are it's called government mismanagement

americans can't make anything anymore and they need to get down to the root cause of what's causing yeah it's interesting you bring up this point some other words you've got some similarities some differences what what we would. criticizing china as a thought charinus is replicated in the us as monopoly. but the the net effect is pretty much the same you're giving absolute power to a pullup euro if you will of some tech companies and the result is stagnation and innovative stagnation and. in again though in we've had this experience in the us of having monopolies you know out under teddy roosevelt a trust buster that he went in there and also i believe in the previous administration or tromp hinted at that this idea that they were going to break up the monopolies never got a chance to do it but it would not be the simplest way to crack open the entrepreneurial isn't america just say you know what we're actually going to do the teddy roosevelt

play we're going to break up the monopolies and we're going to let freedom ring down i think it's probably the only solution if you've got 90 percent market share in search which who has i mean there are many competitors just take google and search engine so it probably does need to be broken up and we need to figure out how to do that we need to keep. normally monopolies don't develop just by themselves it's usually do some type of government regulation it creates that so we need to figure out what's going on and get it fixed also and on the social from that same like the u.s. is moving toward a more chinese style of collectivism and issuing the idea of individuality rights american is really more of individual a sovereign say and why is china's more of the the collective and again the us should break away from trying to get into the social justice warrior collective and just go back to what it does best individual sovereignty but then as all is well

worth the conversation to bring us up to date thanks so much for being on the kaiser report thanks very much and that's going to do it for this edition of the kaiser report with me max kaiser and stay sir but want to thank our guest dan collins' until next time. they throw them with the united states to china and russia big countries which they don't like it to you doesn't matter what kind of regime they have they don't have. problems with different regimes the countries generalists quite a bit like saudi arabia for what it is are. different regimes which was

behave in this very strong the americans cannot do nothing about so there is 0 does that and they don't know what to do with it so the show you know they switch they swear. the world is driven by a dream shaped by from person. the dares thinks. we dare to ask.

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