So thats not a very efficient way to run an economy that is for sure and so. Competitively this is you know weve put a. Price ok that was good on chinas not to sort of but yeah because putting a tesla into outer space makes a great extravaganza but those extravaganzas like hyperloop and the private sector is only going to deliver to billionaires like mosque who have no money to blow and sending teslas into outer space here China National you know they have the industrial plans they have five year plans they have they dont want to leave. The entire rural class abandoned because they know they have to include them into their economy to sustain and and maintain their position at the top of the Global Economic infrastructure so they need to include these people in and it costs you no money to bring them in just like western we had to bring in east germany and spend a trillion dollars here china is also mercantilist state just like germany and they have to include all these people america where abandon those people out in the rust belt out in the middle of america is like. Let fend for yourself dude but i mean the u. K. Is kind of similar right the whole Northern Area the country they keep discussing should we build a railway to the north for twenty years including the people from manchester and birmingham and sheffield should we include them into our economy in london and yet for twenty years ive been having this debate and theres still this Division Going on. The chinese are saying you know what were going to grow the economy by actually making it inclusive economy and Building Infrastructure appropriately yes so theyre basically there theyre bringing in the west and a lot of naysayers and the western world the western economy the likes of you know the. Academia economists from new york have always liked their plan for high speed rail but theyve been building across china saying the peasants will never be able to afford it but apparently according to the data from this past year that they peasants are affording it so it is actually becoming viable and people are using it because their incomes are going up because weve outsourced all our jobs there right maybe theyll build the stuff on the runway system right here at the kaiser report well dont go away stay right there a little break when we come back were actually going to go to china using the magic of television and talk with someone in china say right there. There is now three hundred trillion dollars of wealth in the world today but i look at how much money we spend in the world the military. We just talk about a few more billion. Save the lives of people around the world in doing in such a way that doesnt create. It with that much will. That much well. The rest of the world is inexcusable for any person in the world today. I played for many clubs over the years so i know the game and so i got. The ball isnt only about what happens on the pitch or the final school its about the passion from the fans its the age of the superman each billionaire owners and spending to twenty million. Its an experience like nothing else not to because i want to share what i think what i know about the beautiful game but great to transfer. Its going to. Welcome back to the kaiser report imax keyser time now to go to shanghai and speak with dan collins on the china money report dan welcome back a mix hey dan let me ask you Mr Trump AdministrationFirst NationalDefense Strategy a elevates china to its number one threat it claims that china practices predatory economics and calls for sending in the marines it sounds like what the frank is going on down. Well yeah i heard i read that and i kind of prevented it to air it i call it economic and military economically speaking china is a neo mercantile its the economy we talked about before theyre going to do bigger than your economic policies theyre going to set up their own Tariff Barriers i mean any try to import here something is twenty five percent duty export the United States its one or two percent so china does towards for its you know does what is it in its own interests japan and south korea did the same thing to United States for decades in less detroit in michigan hobbled in the steel columns of pennsylvania broke. But now when china does it chinas too big there is twenty chinese for every japanese so now the chinese are such economic juggernaut in terms of economic rivalry i think absolutely it is the number one economic rivalry with no country can come there i mean europe is kind of a you know look at look at the technicals you know tech scene in europe is almost nonexistent its completely. You know its theres really not a challenger at this point russia its strong militarily but economically still heavily dependent on oil and gas china is really the main rival economically speaking to the United States how is it can be i would put in there that you know the trade deficit which President Trump is rightly concerned bowl as well three hundred seventy five billion dollars a year United States half of that is done by American Multinational Companies that have set up in china so we train our wrist enemy i dont think so i think their arrival also an opportunity but i think americas number one threat is itself all right dan youve touched on a few things there stuff mercantile is basically a is the strategy of winner take all. Goes back to the Nineteenth Century and when the world is on the Gold Standard and that the over the air people had to make good on their. Gash and and there was some elegance too and some balance to it that there was some competition but in a world of pure free ive currency or these countries are able to print without any backing like gold you have a different strategy emerge and of course china has been pretty cagey and pegging their currency to the dollar which has allowed them to export their way to becoming this huge global dominating economy at the expense of american jobs but the americans are insulated by this because the prices of stuff keep going down so even though i my job has been destroyed the cost of my clothes and electronics keeps going down so i dont really sense or feel the fact that im having my lifestyle my standard of living crushed so dan the trigger point when you need talk about this as always people say theres a quid pro quo theres a symbiotic relationship that these two things are never countries arent going to divorce this relationship between hoarding dollars versus exporting etc is that relationship going to be severed at some point and is there a catalyst for it is it happening now down. Yeah i mean eventually with all the money printing as your first two makes of benchley the wheels fall off i expected japan expected i suspect that a major currency crisis in japan years ago still hasnt happened United States you saw the recent budget numbers that have come out where now predicting a deficit of one point three trillion dollars and twenty one thousand thats not twenty twenty five twenty one thousand next next year were going to produce those kinds of deficits in this kind of hot economy which is you know pretty good in the United States. In you know as it compared been in the past decade but yeah when the when the wheels fall off and the money printing i dont know we will see that you saw the chain your go to three percent and i think bill gross out of pimco said well he said when the fed stops back from buying u. S. Day whos left to buy. It let me put forward this idea here so the cold war under the reagan era the country that spent the most on military lost kind of ours a russia trying to keep up with the u. S. On military spending and that was guided their economy a lot of ways and they crumbled is this kind of interesting situation where youve got america and china and the country that prints the most money is going to be the loser in the end or if i got that backwards your thoughts. Well ive often compared United States to kind of a new soviet union the where the we keep printing money the military gets keeps getting bigger and bigger the new budget i refer to our spending increase on the military is larger than russias entire Defense Budget so the military keeps getting bigger and bigger the money the welfare and social system keeps getting bigger with bigger and bigger. Where the money printing stops you know that i think is going to end up with who has real assets and who has the real economy china china in a problem to its purposes has a real economy United States industrially speaking has been good and when the reset happens you know i see its going to be import dependent on almost everything with a declining currency which makes up for a nightmare scenario economically and of course when england was faced with a similar trade imbalance going back a couple hundred years or so they shipped over a lot of opium to try to get the chinese hooked and to create a demand for opium the opium wars that are now on what can america send over a china that they might want from just opium i was i think americas got that china once dan well well you may have noticed that the United States is a huge importer of opiates from china and also we have opium wars in reverse while we were this is a catastrophe that were losing on every front ok so what about the chinese Mentor Capital market theyre also leading the u. S. Now yeah they are they did five of the ten largest deals this year if they went over forty billion dollars biggest one was eighty two xing which is the hoover of china and they actually bought china but a lot of money going into Artificial Intelligence here you have face plus plus and since time each got almost half a billion dollars these are the most advanced facial Recognition Companies in the world. In terms of Economic Development just keeps continuing to continuing year so lot of Climate Change deniers of course wild disown the my following question china is building a polar silk road. Now that the ice caps are melting. You know even though there is a wide scale believe that thats impossible but theyre actually building that polar silk road down correct. They absolutely came out with a white paper recently which kind of book some people and shock them they want to do underneath the one below one road project in the maritime so road they want to create a polar polar silk road so to speak as you mentioned they believe due to Climate Change that this road is opening up there always in most sixteen ships this way but if you envision a map looking down on the arctic and youre right you have the north closer russia and on the left you have the left coast you have the a west and the north coast of canada but china would then if they open up that road be able to ship from shanghai to say rotterdam in say twenty two hundred miles or about twenty days so the north shipping route of white paper described the major benefits of this number one being shipping routes but number two that caught everyones eyes with fisheries in oil and gas that their region are supposed to have twenty two percent of the worlds oil and gas reserves so just china mention about it in the paper was a very friendly county and lets Work Together guys economic or development all makes sense but i think it caught a lot of power especially in canada and russia nine states little bit worried was such a Huge Population resource hungry probably looking into areas where theres very few people in iran or research now i dance china has begun cloning primates and when i read that story the first thing i thought of were the Terra Cotta Army base and the you know thousands and thousands of these terror caught us soldiers. You know. China going to start breeding cloned armies says be a concern dan. Well you know yeah i dont know what current army is yet but you mentioned the crimea was pretty big scientific breakthrough first primates that have been cloned we can now clone these you know many different genetic genetically identical monkeys using Human Disease Research so leaving the ethical part of that aside i mean this is kind of going to be a big breakthrough coming out of china but back here back to your comment. If you can clone a primate you can define clone a human being and they wouldnt be surprised that china is not experimented with. What is p four by a lab and they opened it up over there in china what what does that. Other scientific i mean and you know another issue another thing we can point to the progress trying to make in science science life science areas for a bio lab is the first lab and he sure they can work with the worlds most deadly pathogens like it wallah it took over a decade for that land to get put in place but the first one easier is now in china. So yeah i mean its. The level of science and technology cures really you know at the top now ok so what were saying is that the high end of a developed country is infrastructure for technology and business in china is now surpassed in other countries as well were kind of suggesting areas that they buy all science and the infrastructure play financial maneuvers this is down no longer just the worlds work outs the worlds work bench or a warehouse they are now leapfrog into is the chinese middle class now i mean the idea was were going to pay of our currency to the dollar and were all going to work on slave wages until we dominate the Global Economy that were going to dump the dollar and were going to have three hundred million to a half a billion middle class consumers is that happening. Its happening but yes they want to buy twenty twenty five they want to have like a wealthy middle class they call like one billion people with an income of twenty thousand dollars a year or more i think thats on track there are large pockets of population though that have not gotten the Economic Development train kind of very concerned about that thats probably their number one concern two quick questions dan the debt meltdown weve talked about it many times is it happening or is it not happening. No sign china dealt with debt meltdown and all the you know the banks are still you know the banks are still state owned so why theres not a lot of transparency there but theres in terms of just general economics youre i see no signs of any debt issues in the economy going pretty strong there at the foreign reserves are once again climbing in january saw the r. N. B. Climb the fastest in forty years comment on that in twenty seconds yeah absolutely the renminbi hes been skyrocketing since twenty eight teams faster than anyones ever seen everybodys talking about it the bundestag has said theyre going to put they have r. And b. In their reserves and is going to be a. Currency they only hold one percent today renminbi of their reserves so imagine the pricing pressure on the r. And b. As all the worlds Central Banks start a and r. And b. So theyve got a cut her off their call thanks so much for being on the kaiser report thanks max well thats going to do it for this edition of the kaiser report with a mask as our States Herbert well i thank our guest dan collins of the china money report the smartest guy over there the other racist on twitter its kaiser reports and. Were similar to the sport there with you because of the snowboarder the sort of the. Beautiful yes good new books that they were going to. Put him over didnt close but there is material to move to and i do know a good deal more money because of the ring of the players them. So if you do you know will some day youll see them was a woman in the sport of the. Dog continuously yes so yes a little. To go soon. Keep yelling with some of those people coming to shows and pulls to the police yes has been the most of them so just to take a well what you could get that would usually be when they should be pursuing your thesis each of those college near. Universal in the media on the move so. Most people think to stand out in this business you need to be the first one on top of the story or the person with the loudest voice of the biggest raid in truth to stand down lose business you just need to ask the right questions and demand the right answer. The. Question. Welcome to worlds of might just a few years ago the world was on track if not to eliminate hunger to reduce it gradually that changed in two thousand and sixteen when the number of people suffering from an empty stomach started to rise again and in several countries hunger morphed into famine how can we reverse that trend while to discuss that im now joined by David Beasley executive director of the World Food Program mr beazley its great to talk to you thank you for your time it was good to be with you thank you now when the news of your appointment came Foreign Policy magazine and road that the un put appointee they had of the World Food Program to quote help stave off u. S. Cuts if that was their rationale has it worked out well it has a bit i came kicking and screaming into the system because i was not necessarily a un person but when i heard the facts of how bad the situation was around the world with all the conflict war and hunger coupled with the fact that the United States very will make i decided i would take the role in so i hit the ground running facing for famines facing the worst humanitarian crisis since the beginning of the United Nations which by the way seventy years of history here and in russia and so we were facing a catastrophic situation along with the fact that the number one donor into the u. N. System the United States was talking about cutting all the money so who would want that job well frankly if they persuaded you to take on that you certainly had some six. Assets already are for example a securing presence chunk of g twenty plaid shelf six hundred fifty nine Million Dollars to relief famine in four african countries was that pledged on earth in full and how far did it go in addressing the problem well the United States is historically been a tremendous support of the World Food Program as has russia but the United States was giving about one point nine billion what i assume this role in everyone thought that it would go the other way zero out which would be catastrophic and in fact the United States went from one point nine billion to two point five billion in other countries as well have been stepping up in a very significant way because as i till a million my friends if you want to spend another half a trillion dollars on destabilization military operations cut the World Food Program were now into a second year of the trumpet ministration and there is still a lot of speculations about how this white house operates they set a formal and informal libraries that set in motion i know that you make no secret of the fact that you try to enlist they support the five on serves officially as as an advisor to her father how helpful was her benevolence in securing that well when you have a two point five billion dollar bill and youre looking for every have and you can have a new you can to make certain that the president of the United States and the true Decision Makers on money comes out of the sit in the house and so i feel confident that if the members in the leaders in the United States had the facts before them they would not back off their multilateral commitment in the United Nations as for the World Food Program the u. N. May need reform and no question about that but the World Food Program is a different operation its about feed people keeping people alive operating emergencies and Sustainable Development and so the United States has not backed down invite were seeing that the World Food Program is actually a program this bringing nations to. Whether it with all the division around the world the World Food Program we consider ourselves an opportunity to bridge relations Sultan Tristan you say that because i think your agency is far more fortunate than some of the other agencies do you think perhaps they have a secret of. Your success has has been your own personality or putting an american in charge i mean seriously its a serious matter for many in the u. N. How crucial it is to have somebody who has an ear of the president or at least any or if hes got it well youve got to have the year of the leadership but you also have the right message in bringing bringing together different factions within the government around hungry starving children who could be against that well but there are lots of starving children in the palestine and yet that budget is being how well you know were looking forward to working through those issues as well but in the world today you can take any country of islam into say to the United States to come to the of us you know very well the democrats or republicans have been five hundred on everything and so we brought the leaders of the democrats and the republicans together around hungry children and they laid aside their differences in made peace and brought forward major some successes for the World Food Program but we want to take the same tons of using food as a weapon of peace a weapon of unification as we do that with different tribes children from different ethnic groups trying to bring different factions together terrorist groups like isis is now tied in a book Rahman Al Shabaab they want to use food as a weapon of starvation a weapon of war or weapon of vision we see food as a weapon of opportunity of Development Sustainable bill success from not just bringing in the Music Together but bringing nations together and so now correct me if im wrong but i think even after securing that on the part of the United States the problem now for famines remains very very accurate were still talking about now. Of people on the bring of not just starvation but on the brink of death and i heard you say that the only two solutions are number one getting enough funding to feed the people and number two stopping the wars which one of these you find more realistic more achievable at this point of time the only answers to starvation and hunger the sco it up now for the first time in the years is in the wars. Is a heck of a problem the International Community in the world has dropped the hunger rate over the past hundreds of years the particularly in the last twenty five years even though the population of the world went from five point three billion to seven point five billion the hunger rated dropped from a billion to seven hundred seventy seven million but no hunger rates going up to eight hundred fifteen million thus hungry people me very hungry people on the brink of they dont know where their next meal is now one hundred and nine million in this all the escalation is all because of man made conflict absolutely thats why im asking you mr beazley since you seem to believe that it is possible to those wars. Peace is an aspiration for all of us but im sure in your daily line of work you deal with the green reality rather than aspirations what makes you believe given that what you just said the. Turnaround in the statistics very dispiriting turn around and its that distance what makes you believe that the International Community all of a sudden they will be able to you know change its mind and when they are told that complex well theres still a dream in my heart that the hopes of people every person i meet i tend to think there is a desire in their heart to have peace and i think sometimes. In diplomacy circles we tend to talk about the Little Things that distract us versus the bigger things that can attract us and i think the United Nations in my opinion has not done the job that it should have done in the past twenty thirty years but i think you have new leadership in the United Nations i think you have new leadership around the world this really looking to find paths of opportunity but until we have those conflicts resolved we have to have money in the World Food Program and then we have to have access so yes we were able to avert famines the four famines that we faced faced in the past couple of years and face right now we were able to avert the famine but the number of hungry people went up and were still facing famine in several of these countries where yemen is a very desperate situation somalia with the drought and the complexities there and then you get of course a south sudan is nothing but warfare and then northeast nigeria which is ethnic tribal conflict based upon isis and al qaeda. And then you bring in the drought in the Lake Chad Basin its a terrible situation and what exactly can be International Community can do about that because from what i know theyre trying to ministration is also intending to cut its funding on the peacekeeping operation so i assume thats not going to be easy to realize your own vision well i think youll see realignment as the peacekeeping but thatll have to work through itself within the International Community but i do think the International Players have got to step up in a way they have not done before for example each country will come into a country as a donor and have their program siloed. I have been saying to the International Community these very fragile communities like in the greater sahara larry we need to come in with a strategic comprehensive holistic approach revive sustainability Sustainable Development resilience for example in the United NationsWorld Food Program we believe that every Single Person this enabled body to know whos receiving food they ought to be in a Community Development improvement but for that you have to solve the number one issue which is meet conflict he mentioned the word famine and then the way yemen and i want to see is that there is a potential chalk specifically about this country because i think its stands out as a as a confluence of disasters i heard you say that youve been trying to raise the issue of the saudi contact with the trumpet ministration did you find it responsive yes been interesting to watch in see that the International Community has has come together to help bring about a change in the saudi in the sort of coalition by that you mean then the plants that they may just recently offer additional aid easing out of there saying well you know two or three things number one the Saudi Led Coalition in the blockade was creating catastrophic situation and so lack of money lack of access was a huge issue but we really are see the sea change in the Saudi Led Coalition in terms of the blockade and they exist now weve got to get access on the ground with these and so were working with the who these and all parties involved to make certain that we have the money we need and then the access we need on the ground so weve got to get the food in from the air in the sea and then on the ground and so were making tremendous headway but the blockade set us back quite a bit so were looking at seven point four Million People literally literally on the brink of starvation thats was about eight point four Million People of the total population of twenty nine million in the in the are on the brink of starvation if we dont get the excess in the food we need with that with