are part of china in the spratly islands are down in the philippines and malaysia they claim everything belongs to china it has nothing to do with the land or ancient maps it's because oil and natural gas have been discovered under the islands or so of the mineral resources that are really pushing a certain size to claim ownership if i may for a moment certainly we're getting some reports here and. i'll tell you that her both sides in this on going debate are considering or if not they're considering they're going to address the united nations on the issue of what do you what do you think about it is that a good. well i'm not a fan of the u.n. settling disputes but i don't really see another way around it i mean it's clearly a clear cut case the same cockade there are a lot of island disputes with japan the crew islands with russia and with south korea but since kaku is not really as debatable as people like to make it seem these have been japanese islands since the hundred private they were privately sold to the government but that was privately sold by japanese citizens to

unexpectedly but that is an added layer of risk, you've seen the nationalism come out with the spratly islandsisputed over the japanese/chinese islets. we've covered new positions -- >> if you had to talk about a net short position you're not less than you were when you started? >> no, we're about the same, about 20% of our global short fund. >> staying where you are? >> yep. >> this is not, though, the -- i hate to channel jeremiah wright, this is not the chickens coming home to roost yet, is it, in china? the status policies? >> people still believe in that, joe and you and i joked about the fact these wonderful capitalists in the west seem to embrace this central committee. i think we believe in central banks in the west, as i said before, and central committee in china and i just don't think either might -- >> are there empty stadiums, empty apartment buildings? have they overbuilt? doesn't sooner or later the bad loans come -- >> there was a report this morning as i was driving in here that one of the western firms thinks non-performing loans tripled in the first half from the end of 2011