i'm show business, i'll see you then. ah ah, i are max taiser. welcome to a very kaiser christmas now i santa claus, and rudolph were scheduled to deliver a bounty of toys today, but due to supply chain constraints and the cost of feeding the reindeer, skyrocketing down through the chimney into the living room, pop stand, collins, to explain all this to us, dan, welcome to our kaiser christmas show, merry christmas everybody. of course you also normally would bring a lump of coal, but there's also a shortage of supply of coal. so just have to accept your words, your pearls of wisdom, let's say here. so, you know,

we look back at 2021 and we look forward at 2022 in this christmas special. it is christmas day. and normally, you know, most christmas presents here in the united states. anyway, come from china. we've had huge constraints in supply over the past year. that was certainly the biggest story i would assume you're going to say of 2021. i go a little bit further into what you think of that and other big stories of 2021 in that you asked china to cities trap relationship. i think a 2021 is really exposed kind of the broken economy in the united states. we are what i call warehouse nation. now, we are a nation, you know, as they called, britain used to be a nation, a shopkeepers, the united states is now a nation of warehouses. we don't make any thing anymore. we gradually lost our industrial capacity over the years. 2008 financial crisis was

a real shock. we lost 50 to 80000 factories. those guys never came back to a host of different issues, but we're now a national warehouses. santa's reindeer back up at the port. a long beach can take 30 days. this year is it's were, is stretched over 30 days now to get something off, a boat, and onto a truck. all the ports, the united states been backed up all the all year. the ports and china had been backed up. we've never seen any kind of issues like this where you can't get containers. shipping prices are all multiples. i mean, you know, 30400 percent. this year we saw the container price to go over $20000.00. they used to be 3500. so you literally are cracking the supply chain to a degree that everything is breaking down. there are products that no longer makes sense to shift because of the shipping cost. you know, we don't make anything united states, we can't replace them. so we're going to be in the situation for all of $20.00 to 2022. and till we can figure out at the root cause of what's going wrong with

american capitalism. and why a nation of 330000000 people can't make anything for themselves. well, you know, we've been talking about that for a number of years. it's easier to print money than to manufacture goods and try to sell them overseas. and so with that in mind, for the past 40 years, the u. s. no longer has that manufacturing base. and so they become beholden to, to china. and we're also seeing some interesting developments out of china. so in october, the balance of trade, a power change in china surprised u. s. intelligence by launching a hypersonic missile travelling 5 times the speed of sound. what's, what's the story and this is, there are reports coming out about this. is this been verified? what's going on? it is your slide. it is what some people refer to as a new sputnik moment. however, we've also used the hall a 5 g technology as a sputnik moment. i would call this

a new cuban missile crisis. that moment, you know, the china narrative as change over the years. it used to be an economic story. it quickly went into a tech story. we start realize, wow, we're actually behind on the tech, china's got 5 g. we don't, we have nobody making it. and now it's moved into a military story with such aggression going on on both sides in the cell chain of seat. so this hypersonic missile, you know, a traditional icbm has a low earth orbit art. that's very static, it doesn't change. this hypersonic missile went around the entire world at a very low earth orbit at 5000 miles an hour, 5 times the speed of sound. you can't track it. so the united states today, we have missile batteries in california and alaska, about 40 of them to try to take down a role icbm from somebody like north korea. this changes again, this basically means china, us will have mutually assured destruction. it's gone out this year,

china's building $3.00 to $500.00 new nuclear missile silos. who knows how many really they'll have. these will all be outfitted with hypersonic missiles and technology. the united states doesn't have. china's literally pass is not only consumer tech, but now a military tech. they are showing a few areas where they're ahead of the united states and most weapons platforms. china can build the same thing except that 10 to 20 percent of the cost. and that's because we've lost our industrial base, we have you study the defense industry, most components in the defense industry. you know, it's an oligopoly of the lockheed martin's and the boeing's and below these guys are all one factory making one part number, family owned, not competitive. we've this country's not making, you know, we're replacing half the naval fleet now in maintenance, getting repaired with train, stainless steel. we don't have the earth, we still have sensors. we don't have to have to have components. so it's a mess. this could be a new cuban missile crisis, but i assume the u. s. government will kind of ignore this,

like they ignore most things and it will be an extraordinary success of some kind. it was extraordinary this october surprise. what's your call in a new cuban missile? crisis, we do have a sort of a lethargy and an entropy up at the top of our institutions. and there, i mean, the fact that they said that u. s. intelligence had been surprised by this, of course, you know, it, us intelligence has been completely gutted in china as you know, stacy, but came out earlier this year. the united states lost the entire network in china . there was over 30 people executed. they were hacked in all the cia assets or in china, had been gone for 2 to 3 years. so doesn't surprise me. they have no intelligence on this. i mean, we're under, like you just said industrial, we're in an institutional collapse of some current. you can see at the military, you can see it in the money printing. you can see in the lack of being able to get

anything done. and that's where we're at also like if you turn into the cable news and particularly amazon b. c, like half of the tv presenters are like celebrity intelligence. bimbo. so they're, they're cia agents, f, b i, agents and they're like on television instead, which kind of reminds you of the end of the roman empire. like there's a sort of bimbo vacation going on. and, you know, who doesn't want to be a celebrity instead of like going out there and having to track down, you know, chinese spies or something it's, it's just easier. well, you know, better paid and less likely to end up. i don't know, dad or something, but you know, i guess the most important part of this balance of power. yes. i think a mutually ensure assured destruction has in the past proven to be a positive for most people because it does and the chance of war. but there is that one thing of taiwan, you know, we had in 2021. the humiliating pull out of u. s. troops from afghanistan leaving beyond 1000000000 behind billions and

billions of dollars worth of weapons. so, what is the chance conflict over taiwan? because it is that something that could happen, it's something that the u. s. can possibly even remotely when, if they can't even beat the taliban, chance of confrontation and extremely high. as you mentioned in afghanistan, we left point $80000000000.00 and equipment, the entire russian military budgets. 50000000000. so it's, you know, this was we were literally chased out of the or the country by the taliban after spending $2.00 trillion dollars. that, that's an extraordinary success. if people think we can defend taiwan, they're, they're, they're lunatic. so china has so many land base cruise missiles that can go through the 1st island chain all the way down to guam. that's taiwan is in the 1st island chain. she jin ping has said before 2025, taiwan will be reunited. so i think taiwan is on the clock. well,

how that's going to affect us is 40 percent of the world's semiconductor. still come out of taiwan. when china has control of that, we're going to have to big for chips. we won't be able to make f 150. we won't be able to, to do anything here. without chips, i thought, you know, necessity would drive the innovation and the building of, of the manufacturing capacity. so like when everything, when the pandemic happened and we saw the beginning of the shortages of things like toilet paper and face mask p. p. i assumed that somebody would do something and we would restore some sort of manufacturing for these basic goods needs. pharmaceuticals, nothing ever happened with that. so you know, it, it, do you think it's related to the end of the us dollar? this system has kind of made us all that laying flat movement that's happening in china, where they're collecting their the other side of the fia dollars. we send them all

our fee, i dollars and we, they send us their goods. and the reason i ask that is because another big story of 2021 was china kicking the big queen miners out. now, this is the hardest money are created ever found in the universe. and immediately, like, 2 years later, with the pandemic, we haven't figured out anything. we can't manufacture mask still. and yet within 3 months, the entirety of all the chinese miners left china set up in cause expand, setup and in the united states and texas. so it's been united states is now the largest producer of, of bickley. they're the biggest mining operations there. so i mean, we do kind of follow that and think that's a truth that this is a kind of a lethargy setting in because of the end of a system. yeah, absolutely. so for 2 points on the 1st point, the, when we talk about the money printing has created massive miss price signals throughout the entire american economy. since $971.00, we are a paper empire,

the paper aristocracy gets all that free money. it doesn't pay to set up a manufacturing plant. that's a real cap ex, right? they don't want to sell you a car. they want to lease you occur. they don't want to sell you furniture. they want to lease you furniture. everything is become financial like the private equity that takes 0 percent money, free money. there. first thing is a cut all the jobs, close the factories and out source it ok. the, our whole system is set up not to make anything here because it damages or financials because you're spending real money to build real plants. you look at the chips, intel, just ask the government for $100000000000.00 to build a chip plant. but 6 months ago they paid out $100000000000.00 in stock buybacks, so they really want free money just to build a factory. otherwise, the financial roller culture just keeps rolling. and our signals in this economy is just paper, money, paper, money, print it, and flip it. it's not to build anything real, that's the root cause we got to get it to regarding the bitcoin mining. this is the

1st when united states has had against china in a decade. this is a win that's kind of the model is entrepreneurs. you know, between mining, as you know, i had a big coin, mind myself, all industrial facility. i saw you follow it, and these guys, what they did was pretty incredible. i mean, the hash rate collapsed and then was back in 3 months. entrepreneurs, young, you know, new entrepreneurs setting it up in the very industrial type process. you have to manage your electricity, your, you know, your, your heating, cooling, these types of things. so getting the assets which are the minors setting it up. so i think that's kind of the new model. we have to look at the whole ecosystem of all types of industrial and manufacturing and make sure the ecosystem makes work makes it makes it available for minors and it just, anyone in the industrial supply chain to rebuild the country. wow, this is a positive note for sure. well, we're going to take a break. and when we come back by with dan collins on our kaiser christmas fandango

special, don't go away. ah, ah, one of the major fights, chance are merged. good with president bush junior, was in 2008 this so called bucharest company. and that state the united states actually wanted for georgia and ukraine to get a nato membership to start the so called membership action plan. and it was germany that stop that and then said, no, no, we don't want to do that because these countries will not add to the stability of nato, which is one of the prerequisites in the nature of treaty ah,

working or should she popped in? she said, well, i'm getting ready to go shopping. christian, man, we, we sick of it was a good to buy another, shooting another safe part of american life. shattered by violence. the gunman was armed with an a r 15, semi automatic rifle. when the issue comes home, it's time to act. when we're filing on this issue, the other side wins. by default, the lady that lived over there. i was walking one of the dogs, which is why do you where again, where are you scared with nothing but take it off of me. i think that people need to take responsibility into their own and be prepared if those kinds of weapons were less available. we wouldn't have a lot of the shootings that we certainly wouldn't have the number of deaths.

well, those driven by dreamers shaped banks for some of those with there's sinks. we dare to ask ah, welcome back to very kaiser christmas with max kaiser and stacy herbert filling in for santa claus today is dan collins and were talking about geo politics and stuff like that. china america, dan. let's discuss the consumer side of those us china relationship. you describe

the united states as a warehouse economy. if the u. k was a national shopkeepers during the last days of the empire, we are now a warehouse economy. as you have stated, this kind of our characteristic now, chip manufacturers, the u. s, spent tens of billions on share buybacks are now getting handed tens of billions of taxpayer to build foundries. and the u. s. as are going to go, well, you know, in china they're kind of making fun of us because we are, we do have some boundaries on, in production, in arizona. they're building them up and they're kind of share pictures now on the internet. look at this plants a years later, these things happen. so in china they build it in 6 months, but over here it takes a year. we just have the foundation, doug. so that's kind of going around on in twitter now, especially amongst the chinese will for your diplomats or kind of laugh and like, and we forced to chip makers to come here. it's a, that's a good idea. we have to produce something here locally. otherwise, we're always going to be at the mercy of china for chips. speaking of chips and

high tech huawei was in the news in 2021, and that came to a head with the arrest of the woman who is the daughter of the founder of while way . and i guess she was the ceo. she was released at china, sent a jumbo jet to come collect her and she was met on the runway by thousands of chinese fans of her. and i was in a very nationalistic moment from what i could tell why do you think by then did this to, of course, if, if trumpet done this, this would have been a, everybody would have been up in arms. but what's that signaling to you in terms of the next 2 years or 3 years of his administration? yeah, she's a national hero in china. no doubt. i mean, it was like the biggest news for a week. and it's a, it's a sign of a potential fall between china us relations. i have information now that state large state owned enterprises are negotiating l and g contracts with the united

states. so that's going to help drive down the trade deficit. there's a lot of work to do, you know, boeing has not had orders from china in 5 years. so just by far the largest aviation market, so there's a lot of bilateral trade that could happen on a potential thought. now, however, the issues in the east tennessee, so trying to see what is, is kind of putting those kinds of things on hold. but you know, we will see as 2022 develops. if we're going to move into more of a falling in the relationship or it's just going to continue, continue to ratchet up up into a war 40. you spend the only one that spend right of all of the analysts on china for the last 101520 years. fortunately, you have been a friend of kaiser for and we've owned, we've been the only outlet that has called it right. most u. s. media has said for the past 1015 years, they've had the likes of kyle bass on. and even worse than him in terms of getting

it wrong, is that they've kept on saying like it's collapsing, it's collapsing, it's collapsing the housing bus. but in this past year we did see president, she really crackdown genuinely on the big finance like ali baba jack, mom was something happened with him. we're not quite clear, but we also saw the property developers that crack down on them. so what is this actually going to be the moment that finally all those cnbc and, and bloomberg columnists and opinion makers are right or is this, do you think it's just a lot of and nothing. you get a guy like cow bass, who's been wrong now for 10 years, is hedge fund is shrunk, 90 percent is discounted. a disaster and you guys i gordon chang that gets reeled out under the he's literally all in all for 200. 12 on chinese predictions. for 20 years he wrote a book, 2001, the coming collapse of china. and i read it. it was like, she is like a child. it written, it was nonsense,

but it keeps getting wheeled out there. you know. so these guys, what's happened in 2021 though, people don't understand the root cause a china who really owns these companies qual way as a murky ownership. okay. who really owns huawei and ali baba in ever grand are top top c, c, p, families, chinese communist party. there's an estimated 60000000060 billionaires in the communist party, you know, top standing committee. so there is hidden ownership and all these companies and what you have is fight amongst the prince, leans so all these guys have gotten no jack, my own ali baba. but there's a 100 other owners that have big shares in the company that you don't know. ever grand, you can't do that kind of business without being super politically connected. but they have a front man up as an ownership. so what's going on is she didn't ping the premier, is battling other family dynasties in the see in the chinese communist party. that's what's really going on. you can't lose money in training property. you build

an apartment for 6000 r b a square meter, and you sell it for 50000 arby square meter. what's happened is like in the evergreen case there get just gets they get a call on their debt. so she, jim pinks, people call the bank stop issuing credit, they have massive amounts of assets. it will not lead to a contagion even though it, you know, while while we're over here collapsing, we printed 40 percent of all dollars. in the last 18 months, we're in, we're under a hyper collapse here. but yet we focused on ever graham, the china just use the local governments to bail them out. some people, especially the foreigners, are probably gonna lose debt and evergreen, may not work, could not continue. you know, as it is today, as well as the whole property sector. but what's going on in the clamp down trainees company is really in fighting between c, p c. families, and that's what the western me i don't understand, that's why they get it wrong. every time, let's take a look at the again, on the big coin situation. people like in the china shutting down the big coin mining as the 2nd biggest mistake that made

a 500 years after they kicked burnt down their treasure fleet under the main dynasty. you know, i think about what happened in the 1980s where the u. s. and japan, right at that time, japan was about to take over. it was the japan that can say now every op ed piece was about jap of japan style of management and manufacturing was going to eclipse the u. s. it was a foregone conclusion. that would be rational, the internet, japan, because it's conformist society, they did not have the intellectual capacity to develop all the creativity we saw on the internet and that whole story died. as a matter of fact, the stock market peak, the property bubble blew up, and they've been in 20 years and recession. but with china is it, can you make it parallel here? because you're, you have big coin is the new internet. it's internet steroids and it's powering and revolution across the monetary networks of the world. and everything is being built

on the big point is, are we going to see a replay of this 980 us japan story china. and i remember those days of japan. i still, you know, i had a sony walkman and so what happened with china though is 20 times the size of japan . that's the difference. and they're far above us technically. so i don't think they'll fade off as quickly as i say, a japan regarding the big queen mining. i have said today we're at a trillion dollar asset for bitcoin. when it's 10 trillion dollars, i think the chinese may wake up and go, ok, we get to get back in this market. they still control the equipment manufacturing, but they have band mining and holding bitcoin because they want to pump out the digital r b. they want full control, so we're, we're really the world's going to go between full control and decentralization like what bitcoin is, the network. so i, i believe at some point will be, it won't be a year, might not be 2 years. but at some point, they'll probably make a reversal and say ok, this is a 10 trillion dollar global asset. it's, you know,

it's become a micro payment over the lightning network. ppo trade finance is happening in bitcoin and which is does today or a guy in nigeria, we'll just send bitcoin to a traitor. you know, to a guy in china who's got an account out of hong kong or united states, because it's so much easier than transferring the switch system swift system, the switch systems dying, brushing china want out of it. we weaponized it, the whole world getting out of that. the answer is bitcoin. as china made huge mistake. absolutely, because most of these guys are 80 years old that run china. i think in a couple years they'll probably make a reversal at some point has said, most of the people who run the united states are also in their eighties. and just just feel like kind of a co terminus thing right there. post it is going to be like. ready everybody keeps on saying, well, you know, we have this, they said it is happened, china's arising power and blah, blah, blah. but that's kind of like an old model that we've had for the last few 100 years of big nation states. of course, china is more like

a civilization rather than a nation state, but the coin is this is a civilization as well, right? it's its own culture. and as you pointed out, that the pioneer spirit of being able to just like pick up and move across the entire world with all your operations and set up and start operating somewhere else within months. is this unheard of anywhere else? so, i mean, can you see a positive outcome, like, you know, say city, these traps are usually quite violent throughout history. but we could see them start to pass and just like kind of collapsed together in a way. and we'll have this new paradigm post, $50.00 swift sort of system commanding control, centralized. we're going to have a more decentralized bitcoin civilization. yeah, i see the world going into to orbit here in china orbit or in the u. s. orbit. we'd be kind of be couple. well though we're still highly dependent on china for

everything. i can use an analogy that china has gone into 1984 and the united states is going into blade runner. so china is highly controlled, it becoming more controlled, they're going to keep making mistakes like they did with bitcoin like they did in this year with the power shortage. you know, they told everyone to meet emission targets. they wouldn't let the coal producers, they wouldn't let the electrical producers increase their price. so they kind of slow walk electric production all the sudden, there's no power. they're going to keep making these mistakes as they've centralized. as i've said before, china grew from capitalism. they were the wild west the capitalism, 20 years. finally, when they took over the world economy and they do own the world economy, keep in mind they produce twice. the electric chrissy, united states does half of the world's raw materials flow into china for, for processing their economy is far, far bigger than the united states. it's just, you know, our g d p numbers are like our inflation statistics. they're not real. we're just

flipping in goods to each other on paper and services. so yeah, where are we going? it's going to be, we're going to have to re and us why the states with this whole big point, ethos, young entrepreneurs, technology, lightning network, you know, stripe, these kinds of thing, and use that as a model, the re induct flies everything. well, i think that's a very positive note to end on this christmas is not all bad is not all good. it's more than one poll, right? tick tock, next block. it's all happening on talked lock block. bitcoin watching dan collins special thanks for filling in for santa claus this year. i know you have to go back to the reindeer there hungry and i believe there saw my chinese food on the money this year was rude off lunch. but thanks bring i kaiser report. merry christmas. all right, that's no do for this additional kaiser report with me max has are and stacy herbert again. thanks for i guess dan collins until next on bio

ah ah, working room or should she popped in? she said, well, i'm getting ready to go shopping for christmas. and we, we 2nd here was a good. you're buying another, shooting another safe part of american life. shattered by violence. the gunman was armed with an a ar 15, semi automatic rifle. when the issue comes home, it's time to act when we're aspire with on this issue. the other side wins by default, lady that lived over there. i was walking one of the dogs, which is why do you wear again when you skin doesn't take it off? i think the people need to take responsibility into their own and be prepared if

those kind of weapons who are less available. we wouldn't have a lot of the shootings and we certainly wouldn't have the number to what we've got to do is identify the threats that we have. it's crazy confrontation, let it be an arms. race is often very dramatic, development only personally and getting to resist. i don't see how that strategy will be successfully, very difficult time. time to sit down and talk. oh oh, you came kind of a test bed for medical and then later recreational marijuana and it started with something. so in a saying, i was wanting to socialize, everybody does it? so i cannot, and then it just keeps going and going and going. i'm just going to do it once. yeah. and then it's, i'm just going to try this was never do it again because i want my son in law right

on inside. okay. and you surround yourself with people who are encouraging you to do it not to stop or it felt like my life was over, jumped office at all balcony and died. mm. he knew he just couldn't stop over in the u. s. co but to respond to his new road blocks as testing capacity runs out with the de infection rate searching for poles in some states. we have a surge and we do need more testing centers. i mean, look at these lines that is all horrible on it for, you know, most of our friends have to wait on line for hours and hours to get started. i had to wait on the line for hours to get touch with washes, foreign minister says whole thing. nato expansion will be the top priority and i'll

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