A Monthly Subscription fee if i got access to america the enterprise and they could pay the occasional didnt like andrew young a suggesting if 1000. 00 a month thats a dividend from my subscription to america thats fine theres no coercion involved as a course of taxes involve that we happily pay my monthly america subscription for the value that it offers me well you should be able to have a subscription to which every nation on earth you want in whichever one has the best policies because im going to skip ahead to the other story i had here about the United States and what part of the reason why i think its china has ina reliant is that what inevitably happens in this sort of system where you have lobbyist and political power which is better and better and caught you know more and more concentrated and youre able to dole out. You know not only government contracts thats not as important but basically laws whereby you could forbidden any competent competitors from rising against the powerful so we have an oligarch system that has emerged several studies from harvard princeton theyve all shown that we have a basically an oligarch eat that some powerful corporate c. E. O. s control the politicians and we have a system whereby you cant innovate you cant the barriers to entry are so huge in so Many Industries across america but of course the number one that we have been looking at over the past year or 2 has been the Health Care System partly because weve been subjected to it now that weve returned here and its pretty horrific but i want to look at this one headline from the past week or 2 and that was that 3 major drug makers sued the trumpet ministration to block a rule that would force them to post a drugs list price and their Television Advertisements so just for the rest of the world because this is abnormal outside of america is you can advertise on television here for your drug products your pharmaceutical products which is not allowed to happen anywhere else in the world but here the trumpet ministration an order to try to get some. Introduce Market Mechanisms to this feudal system is therefore they want these Drug Companies pharmaceutical companies have to list their prices name their prices on television and now theyre fighting it because they dont want consumers to know the prices right if were going to lead Drug Companies advertise like netflix on t. V. And people subscribe to antidepressants they subscribe to their prozac they subscribe to their various medications and its sold on Television Like netflix now getting back to my idea about selling america as a Subscription Service you know i think you could have the possible to subscribe to Different Countries but in a more germane to being part. One jurisdiction that being United States you could have a republican or a democratic subscription so i would like you to subscribe to netflix and h. B. O. And some other streaming Service People subscribe to multiple streaming services you can subscribe to both democrats and subscribe to republicans and pending on the how each one is offering and what the whats on offer you either cancel one or not cancel the other one and have a couple difference of Different Services now there are pharmaceutical companies have they have our x. Subscription ok we pay through every month we pay them and theyre saying you know get or are you know any depressant pills will make you forget about the fact that you live in a Dystopian Nightmare just gave us this money every month there will be happily to do that now the fact that they cant theyre not posting their prices means that theres room for a better. Prozac Subscription Service from Corporate America then the one that were i havent thats on offer currently well i dont want to promote any particular drug because thats giving them free advertising but i would say that whatever all of these giants all these global mt multinationals they dont want to particularly in america they dont want you to know the prices they want price asymmetry they want asymmetry of information thats the opposite the exact opposite of what a free market is supposed to be a market is a place where a buyer and a seller come to gether and they have a product that the buyer pays a price for and that establishes the price its supposed to be the buyer who establishes the price not the seller the seller is hoping to get the best price they can but if the buyer doesnt know what theyre buying and of course we just forget the fact that in the Health System you know you you know you rely on a doctor to know whether or not you need heart medicine or antidepressants its not a problem to have depression that many people have it and i can see why especially in this Financial System in Economic System that does a marginal rate and the answer to that is competition so if one is the problem in their prices then you have to make room for someone who is going to publish a price so they can compete if there is oleg aapl emerging then they are colluding and theyre dont want to compete then its up to the government to come up with their own version of it there should be a Government Bank because wall street banks dont want to compete they only want to collude there should be a Government Bank there should be government offered one price Health Care System because the current oleg up leave doesnt want to compete they just want to have all the godly pricing whether thats not american the member in america all of these Health Care Companies the health care. Sick you know its not its not actually health care they dont provide any of its iraq at theyre exempt from antitrust laws so if you apply the end to just law and you know these same drug makers by the way they have as they own the legislators they basically prevent americans from going to canada or mexico where the same exact pharmaceutical products whatever it is that you need whatever ingredion whatever pharmaceutical maker whatever it is youre not allowed to cross the border and get it for sometimes 10 percent of the price of what americans are forced to pay right there is no such thing as being exempt from antitrust and thats thats a thats tyrannical thats like saying im exempt from the bill of rights were exempt from the constitution were exempt from the rule of law yes the banks do feel that they are exempt from the rule of law and they are to radical and they are doing you say banks of course that means also pharmaceutical companies and everything we have a financial capitals and here at thats all we have and this is what im saying is like where have the g. 20 now and were supposed to as citizens of the world residence the world where were living were supposed to watch them and these leaders of the world led by america because america is still the empire and were hoping not to lose it but apparently like were told to like this is capitalism free market capitalism we want to for all the world but yet at home this fundamental thing is your fundamental major corporations which live off the large just by the way of the taxpayer who funds a lot of research and development of these pharmaceuticals through our universities and the National Institute of health well. You know this is the model theyre really doing theyre extracting wealth this or engineering make sense forced american corporations and the only way to pay dividends as far as i say 1000. 00 a month for some to pay dividends if they cant do that this not being competitive they dont have the ability to do so theyre not part of the enterprise they need to be extinguished thats it because we need to get tough and we need to be capitalist we need to be competitive we cant lead to a radical all of our players from abroad and domestic to terrorize us what their monopoly pricing so the other thing that basically the g 20. 00 imposes is of course the monopoly on sin your age so the especially the us dollar does run the world all commodities and trade is basically settled through the u. S. Dollar and thats something theyre also losing control of and they dont price discovery in that regard whether its from bitcoin or gold but heres another heres a story thats really fascinating in terms of the subjective theory of value so when mangere said something along the lines of all value is derived from human consciousness this is a real you know a pity me of this italys mafia uses the old lira as its own parallel currency a Senior Police officer revealed in italy that domestic criminal organizations are still using the pre Euro Currency for illicit transactions its not clear how the former notes are ultimately exchanged for euros if at all though he said officers are still uncovering them the lira ceased to be legal tender at the end of february 2002 wright who has everything for money its scarce then people are treated as a unit of account and as money so therefore it is money thats all i need for money thats my big money and thats why the u. S. Dollar is probably going to disappear like every fianna currency is. Ever had the experience of the past 300 years of disappearing none have ever made it 300 years except for maybe the british pound but theyve lost 99. 5 percent of its purchasing power so effectively 0 none of them make it but you could use this one because the people say oh you know it is money we recognise it as money and it scares thats all you need to be money well because if you need a service or the mafia says theyre going to provide you a service and you can take it with whether or not you know if theyre willing to accept these banknotes you know thats what paul krugman he should love the story because Paul Krugman Nobel prize economist he says that the u. S. Dollar is backed by men with guns of course the mafia is known for having many weapons and threatening people according to a boar a deputy and in charge of the guard define not so when a bank note is accepted by an organization internally organization he means mafia even if it is outside the law as a legal value it can settle transactions were obviously talking about illicit organisation its amazing that this is a bank that only accrued true value once they stop fronting yeah well the same thing we saw in somalia as well somalia doesnt have a central bank for the last 1520 years and they still use that make the bank notes that the last central bank that existed there printed makes them more valuable and the 20 years ago in somalia the number one currency in use was coke syrup syrup used to make cola the beverage that was used as a unit of currency in somalia for a long time all right well were going to take a break when we come back much more coming your way so well. Take that sponge bath. They are owed. Far behind or if you give us a. Harder. Every is that you. Just. Came out if you did. Manage to move. Them in a few fish you know not just before. They are. God since we. Need. To meet the name of. The skin or. Any. Other kind of open investigation in. You know world of big partisan law and conspiracy its time to wake up to dig deeper to hit the stories that Mainstream Media refuses to tell more than ever we need to be smarter we need to stop slamming the door on the back and shouting past each other its time for Critical Thinking its time to fight for the middle for the truth the time is now were watching closely watching the hawks. As we speak large organized caravans are on the march to the United States. And then 70 and a player coming after to carrying their most wars remains slaughtering down. This is a virtual invasion of our country. So far bigger than anything we think. That i meant they are. No one up on the farm not that they are you know its going to stuff it in. A knife our feel. As you do is you know were going to see a more little girls who noticed this is an issue for players for those with. The. Welcome back to the kaiser report im ask iser time now to turn to our resident expert on all things china dan collins a businessman who lived in china for 20 years the past 20 years he was there dan welcome back max all right so dan the President Trump will be meeting with chinas president xi at the g. 20 what do you expect i expect some type of economic get counted a year or truce some type of initial agreement to work i think trying to get in close to 2020 i think youll take a when youre behind Foreign Policy circles where were just now this is round one where youre you know generational conflict with china a cold war 2. 0 but i believe out of the g. 20 will get some type of out of the announcements the trade or is been pretty surprisingly difficult for both countries you know cultural exports out of the midwest are down 50 percent chinese tourism and us down 5 percent while its 15 percent globally Chinese Students are now coming to us thats going down the other side chinas been hit pretty bad while we Just Announced 30000000000. 00 reduction in sales their economy in general over dead now so and slowing down which is not happened in 20 years so expect some type of positive news but were still in for a long haul of this confrontation between china and United States rights when this thing kicked off i think people were pretty leery about the trade war with china they didnt think trump was going to come out of it very well but it looks like in this game of chicken is doing pretty well as we describe it big in previous discussions and. Is it fair to say that china is getting squeezed here and i read a story this morning about how they have a u. S. Dollar shortage and how that is problematic can you explain to the audience how that works well yeah they are definitely getting squeezed i mentioned some of the Economic Indicator this is caught china kind of in a perfect storm where theyre trying to train this in your economy into a you know the socalled middle income trap their wages have gone up 10 times the last and years so theyre no longer the old Business Model of labor export no longer applies theyre trying to transition that economy at the same time since 22008 the 1st financer phrases expect another one you know who knows when so the chinese Banking System now is heavily indebted theres a lot of off Balance Sheet debts that china has incurred officially theyre 4050 percent of g. D. P. Debt to g. D. P. Ratio over many people expect its multiples of that there is a lot of mis allocation of investments a lot of money into it like to give to companies that cant make miracles things like that nature so yes china is trying to escape the middle income trap they have wasted a lot of money supporting industries they still have a huge portion of their economy that state owned enterprises that they need to support theyre not very strong on innovation so they are they are at a critical turning point the message for their economy lets talk about huawei for a 2nd silo state made in china threatens. 56492 patents china is indeed leading the world in patents these days so you know why for the news a lot lately whats the current status there well how do people to realize that they local company they have 190000 workers 50000 of those workers directly westerners they have 40000. Sorry they have r. V. Centers in 20 different cities across the world they mention their sales if youre going to go down 30000000000 there theyre pretty much in any mode at this point but in terms of 5 you wouldnt know where the equipment they are the 800 pound gorilla nobody can compete the United States thanks to our focus on finance capitalism we dont even have a company that sells 5 women theres basically eriks in a nokia but theyre really 2nd out of europe but theyre really 2nd Rate Companies compared to poly so the issue here is with huawei dominating your Telecom Network there is really no way you can stop spying in information going back to chinese mysterious a security dynamic patching of software its get millions of millions of lines of code its updated all the time and then the hardware side youre no way you can check every piece of hardware so were at impasse here where the United States has stopped quali globally and said everybody fell across networks but at the same time theres not many people can compete with them right and just samsung like event tractable problem that typically of one was see right before some conflicts began you know we have global conflicts going back a century or so countries find themselves at loggerheads they cant resolve their issues its theres too much poison on both sides and the shots start getting fired i mean its a sames not to be alarmist but its the same as that every day care about shots being fired and one reason or another and rhetoric getting more heated as some have said all along currency wars lead to trade wars that lead to hot wars so i mean the way discard the situation some may it sounds you know as you point out theres millions of lines of code and dynamic caching systems right that means us like you know. Thats not. This is not going to be solved the either way except chinese spying on american citizens and every citizen in the world as a quid pro quo for america spying thats been going on in america on the global citizens for 30 years already the now they set the table on this whole global spying initiative so dan the question is. Our way s. R. D. Way to get out of this well this is the socalled 2 cities trap where you have the rising power going up against the declining power that the situation with the u. S. And china you know were focused on china right now about ip theft which is actually occurred Chinese Companies like holly and c. C. Took down entire telecom Companies Like north on that was not a fan of us it was fine however Going Forward its not an issue of ip theft its about innovating china you know all of the all of the Digital Technologies were created in the United States you know. Laser sensors l. C. D. Displays integrated circuits and now all of these are made in asia so United States is a declining floured with both some finance capitalism we dont treat our asset we dont treat investments like our asses like a chip foundry we dont and we dont support chip foundries we support sports stadium the United States is that once we get out of this declining power mode past and start rebuilding a simpler structure has to start treating Core Technologies manufacturing them at home and redesign their entire system i think under from hes trying to do that bring back production. But it was because this whole rising power versus the climbing power i dont see that changing or not and i think were going to continue to see that and were going to try to out invent china and you know china 80 percent of our ph d. s in United States in Computer Science and engineering are foreign students large fortune those are chinese they are educating the United States both domestically and you know the higher levels of in the p. C. Areas but also you know creating these technologies like for investment and manufacturing in and growing up going up the growth curve chinas done that. You know mentally less and years of secure less all right well the u. S. So that were going to do that. Because in order to have a Robust Manufacturing sector youve gotta start paying people real money and that would mean Interest Rates would have to go up because they would have to respond to that rise or inflation in wages and that would mean all wall street banks would have to declare their insolvent because wall street banks are insolvent and theyre the illusion of their having a life is. Being fed by 0 percent Interest Rate so ok markets never got to do it have a manufacturing capacity ever again as long as wall street zombie banks roll america and theres a reason why we should think that they wont continue to rule america so lets play war games scenario between america and china it would be a financial war and the thing about china is that it actually runs on dollars it doesnt run on to end it runs on us dollars they had 4 trillion in us dollars in reserves you know we send them all of our dollars and they in exchange for us giving them all of our jobs and we send them all of our dollars ok so they had 4 trillion in us dollars now its down to 3 trillion because theyve been trying to keep this current say peg alive and theyre willing to burn dollars to do it but the reports im getting are that they lack of dollars the lubricant that keep the chinese economy going is disappearing its evaporating due to the fact of this trade war so what will china did to fight this this this currency war or you know because to me if trump was to go down this path you can starve china at the death of dollars and deliver a fatal blow to their economy i think thats as nucular option and i think thats way scenting is willing to do so what can china do in response dan we had is its the max i mean we used to think about how china could so we so much debt that if they sold out wed be in trouble i think at the financial crisis we learned we havent really limited Printing Press or at least that mindset of people. And then trying to soldier 2 or 3 trillion in reserves now that we would just prefer to meet you know when everything could be ok that may or may not be the case. I do believe absolutely does it you see china could run out of dollars very quickly we saw a great them trying to they literally burned you more than a trillion when youre trying to defend our big just a few years ago so we would be entering that area where. They met the red. You know were going to beauty thinks im a 25 percent theyre just going to let the remedy go down 10 percent by 50 percent theyve already let it go down 56 percent were started leaking depreciate your currency the notify the tier of and the x. Were not only and also going to be a priest or per pound surplus and really more dollars so this is really kind of the. Number might be locally right and the conundrum is that condom a is to compete i have all decided that paying people wages to bank make stuff is not the way they want to compete they want to engage in currency wars so whether its mario draggy at the e. C. B. Why is mark carney at the bank of england or at. Powell at the Federal Reserve bank theyve all decided they want to go to 0 percent Interest Rates are now in many cases up to 12 trillion dollars worth of sovereign debt is has a negative yelled theyre willing to go down into the negative yielding territory which as well as confiscation by another name so thats financial oppression the very definition of financial oppression this is the essential a they Central Banks acting as google ag operators stand weve got about 30 seconds. Well absolutely financial fresheners labor oppression i mean you know you combine these global trade agreements like nafta where you you combine the labor force one making a dollar an hour making 15. 00 an hour what you get is you know you get what happened us 30 years of negative way growth so no way growth so you have any financial repression at the middle class you have labor oppression at the lower work so as you said i dont see any we added system i dont think the us will change its going to be chinese capitalist model export globally 1st the chinese find the u. S. Financial capital of the model one of the few who are going to have to give in will the other side with the new world bank allans our china expert thanks for being on kaiser report thanks max all right thats going to do after this episode of kaiser parlous may max kaiser and stacy i would like to thank our guest dan collins if you want to contact us on twitter its kaiser report into lifetime by all. This hard to take some from somebody if you dont have some to replace some. Of the work to do this interview today at Howard Hughes market over and then they take me. For a year or area. So im going to tell you stop selling drugs if well hire some to put the money in their pocket. Then just me all the way and yeah like my skin basically colors fisa the foreign power. To us whats a good many security positions open to that. Jack me again. You see people get all their cars and ill see you coming in the heart and it seems like theyll hurry. Then run into the house like they dont want to they dont want to talk see her get your mail or anything like that. Thats one. Of my cards and do. Just try reading. Give me. I think the reason that they have not attacked iran so far its not that they didnt want but i would say that they couldnt do it champus thinking of a short and quick war with iran but i would say that that would not be the case trump said that if they wanted to attack they would have killed about 150. 00 people in the rain inside but the question comes to me is that americans a time a country in the past by Nuclear Bombs do they really care about killing 150 people from. The us to agree to new arms control talks on call for improved trade relations as the g 20 were injured on the 2 president s seemingly coming away from the summit and then all the. Good news it was good in business long as we discussed the whole weary of issues which are of interest to russia and the United States and we had a discussion we had a great actually we had a great discussion president putin was shown for the it was really a tremendous discussion there is a ceasefire in the trade war donald trump i know it says that the u. S. And china will be resuming talks on their dispute over a tour of san makes a number of concessions to beijing