tv Keiser Report RT May 26, 2019 12:00am-12:31am EDT
oh. in amongst change of attitude u.s. mainstream media now warn of the dangerous precedent being set for journalists by washington to intensify the pursuit of julian assange and. president trump announces he's sending more troops to the middle east and speeding up all the cells to the region to keep iran in check. and crowns of yellow vests protesters have once again descended on paris for the 28th consecutive weekend of demonstrations. my colleague is here next down with a review of this week's top stories just ahead is a reporter with maxim safety talking trade with china and the latest iran tensions and more stay tuned.
max kaiser this is the kaiser report krypto spring is here it is just bleeding right into our lives we can hear the lawn mowers outside and they're getting ready for crypto summer and then crypto sente zia crypto parallel dimension and the bit coy and obama it's all happening it's all happening right now stacey in the meat space things are coming apart however the meat space is ruled by tweets from donald trump and donald trump is continuing apace the error of globalization is over at least for now we've had many periods throughout the last 4 or 5000 years of globalization then d. globalization and we're now going through a period of de globalization we see these trade wars hotting up you know. basically
blacklisted huawei the 2nd largest mobile phone builder operator manufacturer in the world and they're also way ahead of any western competition in terms of 5 g. technology they do however while way requires many many parts many chips from u.s. companies and basically they're not allowed to send anything to qual way though then via tweet as well trump has basically given them a 90 day window to maybe allow their leaders of china to negotiate a trade deal this is his art of the deal right i mean the key phrase here is to globalization and you're right you know it ebbs and flows and we get globalization as it had before world war one and then the world war one and then we had de globalization before world war one that led to world war one and then world war 2 yes exactly therefore ipso facto at the moment it's de
globalizing. so the rebels in buckles in the global economy calls volatility and uncertainty and there's no way to hedge against really. in the us you want to go long opiates well certainly one would go a long gold big queen or silver and this has been throughout history of globalization whenever an empire starts to fall leading up to world war one it was of course the british empire falling apart and losing power and losing control and no i guess most great powers don't like to lose control and they like to have the power and they like everybody to obey their orders and once they stop obeying so easily and they become disobedience the empire lashes out and then starts. and they stop trade they stop that especially that when the train starts allowing their competitors to rise above the victorian era there was globalization and then in.
free world war one then you had this anger in the head angst as germany without powering them out manufacturing them out creating better better products out competing them you know trading around the world and doing better right now we have a period where the germany still in the middle as the u.s. germany and china they manufacture everything in the world or consume everything in the world though without those 3 powers much of the global trade would not be happening we also have of chorus the united states via tweets threatening to wipe around off the map of course iran is very disobedient to the emperor does not you know pay what caesar's does not. render unto caesar what is caesar's and the u.s. feels like iran should be a little bit more compliant owner obedient and just give us their oil stop trying to think that the oil under their ground happens to be theirs i think there was
somebody like john. bolton had once said or maybe it was john mccain had said you know they think that their oil is up there and it's not well you know the thing about globalization you know of course post world war 2 era the bretton woods with the u.s. dollar is a world reserve currency is that it provided this blanket for globalization ok but then it also provided a way that social banks could collude to make it easier for bad actors to milk the system or built the system and that has led to the black press or the yellow best's in france in occupy wall street in the revolutions in cairo you know as that certain you know social bank related class of drain the system of vital capital so that has now led to a reaction so we're going to actually get to the u.s. central bank and their plans for the future because of course our competitor nation
in this situation is china china comes up with long term plans and they have 5 year plans 10 year plans and this is part of the reason they've been able to outcompete us because we only have quarterly plans and whatever the shareholder dividends are that quarter and that's all we care about that has always that creates a long term result and consequence which is the dust realisation of america because shareholders were always going to if they could extract the equity from us industry that was always going to be send over your jobs to china and china and that was their plan and they were like thank you thank you all right when i got older just in time mentality of globalization became extractive yes predatory yes you know the globalization itself is the problem with it if you are but you a few abuse it and you screw things up it was only possible only possible post 1991 to do this 1972 of course china becomes opens up to america.
you know nixon sends over his trade representative and then they end up becoming part of you know world trade and w t o n all that stuff after that but 971 is when we go off the gold standard so we could only do this extractive. post if we don't have any actual obligations to the rest of world no real gold or no real wealth is ever sent overseas to top u.s. tech companies begin to cut off vital huawei supplies there is a 90 day reprieve but of course they're afraid to get any sanctions or by the u.s. government or treasury so top u.s. corporations from chip makers to google have frozen the supply of critical software and components to huawei technologies complying with the trump and ministration crackdown that threatens to choke off china's largest technology company chip makers include intel qualcomm zylon x. and broadcom and they're. you know this is one of their largest customers as well way and now they're you know there will be results and consequences to the u.s.
and u.s. corporations and shareholders at least maybe not employees in a lot of folks have been warning that china would come up with a world leading technology and a huge corporate behave with to back it and the scuttlebutt was no you know we are all the value added jobs here in america you know they manufacture but we design in california you know that's the apple phone but now huawei you know has emerged as a. tech leader that is now defining this new era of 5 g. and you know 5 g. just like every previous 2 g. 3 g. 4 g. or every other protocol that's dominated global commerce ok this is the battlefield for the next generation and they have the pole position so i think 1st of all all the people who said that was not going to happen may all happened we covered that about 10 years ago when we said that this would happen because the fact is it is
the process. of manufacturing whereby innovation happens this is why the long term plan of germany has always been to as well keep those jobs keep those. precision technology high value added jobs in germany because they know as soon as you send it overseas you yourself domestically lose the ability to innovate that you can't teach innovation you have to just experience innovation and evasion is a result of failure and losers when you fail you often learn brilliantly there's no way to teach that in a classroom you just have to understand it's the process of watching a failure happen that one can learn and innovate right in america failure is not stigmatized. to it. where in europe it is stigmatized people can sail and then have a lifetime of misery and it's very stilted in that way of course we are changing we
are becoming more european here the mainstream media as we've pointed out certainly of the so called them or the democratic mainstream media is saying donald trump is a loser because his companies have failed and he's had losses which have made him rich but that's another story but in terms of bringing back jobs for america yes we should obviously have wealth creating jobs we should have manufacturing because that's where innovation happens the actual process of doing and making is where the ultimate ultimate innovation happens so we need those but whether or not what donald trump is doing is the right way and whether or not what are the long term consequences of that because we cannot have wealth creating jobs here and have the the world's reserve currency because in order to have the world's reserve currency and a fee standard you need to send all your dollars because china can't print dollars germany can't print dollars so you need them to basically export to us more than we export to them so that they have dollars because that's the only way to maintain it
we know. so that the one thing there's only one thing the federal reserve is worried about always and that is wages rising so that is the number one thing they fear because it's wages that compete with the capital accumulation of their member banks well so. well put. couldn't be more specific but you know side note interesting only in britain you know the wrangling with briggs it the same time the british steel goes into administration so there's a manufacturing company there that's your future if you are wanted to become independent and sovereign and how a world beating global export economy you wouldn't want british steel to go bankrupt but say the exactly this is what's happening so the mainstream media especially the democratic media will not ask will not provide context for what is going on in this trade war they'll just demonize china and when you look at china and they see that you see them accumulating gold they won't tell you the context of
the significance and and ponder even questions about why they're buying gold and especially at this moment now the federal reserve is in the news again the fed is dusting off a q e replacement last used during world war 2 so of course the end of the last period of d. globalisation was the last time we used this and that as the federal reserve governor lyle brainard on wednesday became the 2nd us central banker to talk about the possibility of targeting longer term interest rates as a new tool to combat the next recession is actually not so new the last time the fed conductor's such a policy was during world war 2 to keep the cost of funding the war so. brainer she's you know her suggestion is that the concept is relatively simple if the feds benchmark interest rate fell to 0 and the 2 year treasury was at 2 percent the fed could announce it intends to use its balance sheet to peg the 2 year at one per.
cent rather than the market rate of 2 percent the general idea is that longer low term rates spur activity right the risk and the reason this is not done is that you are exposing yourself to interest rate risk exponentially greater than if you have a shorter maturity in their portfolio of bonds are using to manage this economy so they're going to take on another huge basket of risk and so when interest rates do go up as you pointed out the beginning of the show there is a cyclical nature to things there's the globalization there's globalization there's lowering interest rates there's rising interest rates so when the interest rates rise hit the impact to the fed will be instantaneous death there there levers that there from the side of being leverage a 50 to one they'll be leveraged at 100 to one so one minute change in the value of
the portfolio gives them of value. of goose egg this is iraq they get a break they will they come back much more coming your way. they will you can see that happen to the falls unfortunately it was most feet of a moment still worth rolled the previous governments they made the former president and c.e.o. of oil rich. city of the country people wanted much more and they didn't want just love the ideal is to travel freely with europe they won't just route to become part of. this is very far way to go still you mean you can write.
what politicians do something to. put themselves on the line to get accepted or rejected. so when you want to be president or injury. or somehow want to. have to go on to be press it's like the full story in the morning can't be good. i'm interested always in the waters of my house. sitting. welcome back to the kaiser report i'm max keyser time out of turn to dan collins dan colonies recently returned to america from doing business in china for 20 years is the head of research at heisenberg capital all oh i love the firm dan welcome welcome back a max thanks good to be back. collins they say nobody wanted to trade war talked
about china and russia america so which side is losing less than the other then well i would i would say when we would have to go back to when did the trade were start and who lost you know we've talked many times before max if you look at the city of detroit most of our rust belt studies are empty steel towns i've argued many times years ago that we lost a trade or been going on for decades most of the east asian economies in particular china are broken tiles economies they protect their own markets even our western allies like germany have much higher duties and we have against the example would be 10 percent on vehicles and we have 2 percent against them so if i would say america lost a trade or now this recent i would call it a counterattack by trump by only the united states is fighting back for their own trying to read us realize the country with the steel tariffs and things like that
china is definitely losing this 2nd round they are seen if you look at the real production and economic stats not g.d.p. growth forget that they're going to grow 6.8 percent somehow every year they do it every year it's either $6.00 or 6 we don't nonsense it's not real you look at car sales are down 24 percent even the high growth sectors and chinese economy e-commerce they're barely growing. most of. the big industrial type stuff is in pretty rapid decline because they're they're getting pinched from several areas one is the tariffs obviously but 2 is you know china is a middle income country now their labor rates are 5 times mexico 5 times iran 5 times southeast asia so we're already 5 years into a big exodus of manufacturing out of mainland china which is putting the squeeze on wow wow it's amazing that so much manufacturing is leaving china and now china's
tariffs on western goods are allowed under the w t o the world trade organization rules for quote developing nations so yeah it's time to sell a developing nation in your eyes bay so i just said i think the answer would be no right hey i absolutely know i've argued this china hasn't been a developing nation for at least a decade you know you look at all that the top 20 tech companies half are from china the other half are from the u.s. china is got some of the most advanced company that the largest economic market in the world there are 50 percent of most global markets you know when you make 5 times the amount of electric vehicles in the rest of the world combined the highest rail yeah there is a there's economic income gap but in china but the same thing in the u.s. so china has been hiding behind the oh they thought they and they have successfully gained international trade system and they claim were developing countries we need
25 percent duties against you and usually a few percent against us so that's the game they've been playing it makes absolutely no sense american politician for a decade have been oak last outsmarted you know i saw i saw an academic economists go to a rave about well we're not going to ship mobile phones to china how many mobile phone you think we sell the china we sell nothing when they attack or the united states trade they have to go after so he you know the united states has many 18th century economy. basically in the new free trade that's been going on for decades so now it's kind of face to this whole free world right waste also export a lot of garbage to china and they're clamping down on that you know the recycling in the u.s. wasn't busy allowed due to environmental laws america would actually export garbage to china but now china has said no more garbage and that's causing a lot of problems i mentioned germany a moment ago it's clearly not
a veldt developing nation and yet it apparently slaps u.s. manufactured cars a 25 percent tariff versus the 2 that happen tariff we place on german made cars is this just us oligarchs trading their short term gains for our long term losses than the whole concept of free trade in barbados for years it doesn't really exist . it's an ideology you know it's a good idea out of you if everybody following it but at in the reality is nobody following it and if you look at germany as you mentioned in particular that is a very it's a capitalist economy but it's a very state run capitalism on any local government's own big shares in the car makers in the industrial cooling factors and all these types of companies and. they have also protect their own workers the united states and the u.k. are kind of the the markets at the history trade they're the ones that don't protect their workers and they sacrifice them on the ideology of free trade we
actually does think they're right and we know why they don't protect our workers because those wages go to the top 110th of one percent that are the machinations of the federal reserve bank and financial engineering now dan here's a big topic the big topic to you are apparently some reports say that who weighs 5 g. technology is about 18 months ahead of that available by western corporations and at half the price can we compete down well that's going to be the interesting question china is leapfrogging. so fast that you know obviously you know the heist look at the high speed rail they had 2012 they had none by 2016 they had more than the rest of the world combined. weiwei is a very innovative company 10 cent ali baba these companies are you know there's a host of different other types of companies in the e-commerce space genetic engineering i mean these guys are leading this field knowledge in many areas of technology in the world while he is indeed ahead of the west and that's what's
happened when the west we forgot about many factual forgot about real innovation we went to financial in it in an innovation in pay 000 i believe my personal opinion is china will continue this technological steamroller and they will be ahead of us in many areas technically speaking pray now you know politicians here in america saul voters on shipping our jobs overseas by claiming that china china would never are they were forever toil in the low value added jobs and they would never aspire to arise to the value added knowledge jobs in health apple phones are designed and california but made in china now did the chinese ever fall for this commie without a meme that china believed sell over there as well then know china has a completely opposite world view of the united states in many ways they follow the east asian model of development where they you manufacturing to be that's the
biggest job growth the technology that is employed in for instance car manufacturing is you know now state of the are in need although the machine learning if abilities the machine tools everything integrated. into logistics supply chains when there's so much technology in job and manufacturing they are still under the core concept that that's absolute key in on top of that you build all the more advanced e-commerce in artificial intelligence these are also industries where. china's leading are point by they haven't forgot about the manufacturing that's absolutely you know united states of the nation of 330000000 and i've never heard a good argument how a nation of 330000000 with all the resources natural resources that the united states have how is it possible they can't make anything and it's ridiculous and this is these are the kind of. issues that are now coming out now kind of monitoring social media and checking out how the me moore's are going and in china
apparently there is a video or if it is circulating about the basically crushing america china is about the crush america and this is becoming a more kind of viral campaign and the kids are picking up on it what were we in that cycle i mean is this what what's that the attitude seems to be what is the attitude there what dan you know i think the attitude max in china is it's getting increasingly nationalistic and that's always been there you know they've been educated under the ideology that they've been a victim they were colonized by foreign powers including japan they're very sensitive expression with japanese issue you see when there's issues that stir up in the news media with japan all the sudden cars are getting overturned in the streets and set on fire we even had several japanese factories set on fire a few years ago so the chinese government to be very careful careful with this.
issue of nationalism trying to stir up i think you know the chinese population in general they don't like to get pushed around i think that the media in china will push it that way that they're getting bullied into getting pushed around and you know when where that leads you're seen massive drops in sales with american companies in china that the automotive industry in particular a few years ago the big 300 traver selling 4000000 cars are only schedule looks like they may go as low as 2000000 this year. so literally half china's not new to trade wars they did this to korea 2 years ago with a lot of department stores when the u.s. moved weapons system into south korea and they moved it onto a golf course that was owned by this company the next day over 60 malls owned by this korean company was shut down for security violation so-called safety so china knows how to use their domestic market as a weapon and that's what i think will continue right so you are of the
opinion that this kind of retaliation or reaction or pushback by trump as long overdue that china and other countries have been taking advantage of the international trade arrangements to america's detriment comes it he recognizes this probably starts to fight back so do you think that we're going to see some success of america's part because the same psych we're getting still getting our play what it where you think the prognosis us i think the prognosis long term is good and you know we have 20 or 30 years of this going on it can't change overnight got to happen step by step you see you see areas of the real economy real manufacturing like in steel that is coming back there's a lot of announcements of new plants multibillion dollar investments by steel makers us to get a steel industry back again you know china makes more steel in 6 weeks than united states makes all year we were we were literally pushed out of the steel industry
like we've been pushed out of most other industries you don't have a merchant marine we don't have a sheen full industry we're down to carmakers that have 4050 percent of our own domestic market so the real economy companies have been really suffering or the. long term you know a nation of 30000000 we need jobs and we need to make things work so it doesn't need to be protectionism but you have to go into this with a really practical reality and say if china is a 25 percent duty against us why we should not have a point by the duty again. so this whole trump great war thing is basically just putting the same policies they have against united states that the united states going to put against china so. long term it has to be done i see no other way around diet dan thanks for being on kaiser part i should mention that we're going to have me on for another segment and we're going to talk about joe biden is sons business dealings and in china so i think we're going to be breaking some
interesting stories there with dan collison ice being on the kaiser report thanks max that's the idea for this edition of the kaiser report with me max kaiser stacy herbert like to thank our guests columns if you want to reach us on twitter sky's reports and. historically 2 of his opponents used to claim that there are 3 issues with turkeys too poor to bake and turkeys to muslims the fact is we are too poor is no longer correct because our per capita purchase parity is higher year than some of the current do you member countries. in a world of big part of the lot and conspiracy it's 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 it's time for critical thinking it's time to fight for the middle for the truth the time is now for watching closely watching the hawks. one started 4th grade involved in the on the side of us national tests for us in hand destitution was there are occasions to search one of the foremost yes was a no no good job or no correct nugent in some nurture to teach. new certainty whether. he was near or in the home side on july the 24th he never pops in the 3rd and i can tell you that it. uses without folding for it's
a good time to use consistent coverage to courage or if it. were you able to establish where the phone was across. the 24 to the generation system to ration you say that just goes with it as hard. as. saying an economy has and i read a request response to the stuff nation state and in fact it's well it's. no total nonsense of. yours are ours and you're still on the road or have mr brace post. to testify that hard to find there or is a number of pretend that. you don't have any role whatsoever of their investigation.