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tv   Boom Bust  RT  November 14, 2017 5:30am-6:01am EST

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joins me to discuss the worldwide impact of such a grandiose enterprise than by. our right. if they want to first century silk road and if china can pull it off it will prove even more lucrative the belton road initiative will create arterials of trade snaking around the world ports roads rail lines bridges and logistics owned put in place by china and its forward leaning political alliances some say it's a pompous projection of power and it won't work others say not so fast this is a signature feature of president xi jinping is china first policies at the communist party's nineteenth congress in china the constitution was amended the
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party in trying to his philosophy with the title xi jinping thoughts on socialism with chinese characteristics for a new era well some say the initiative is an indication of chinese expansionism supporters at home and abroad say the move will not only help china but many other nations as well arty's out joins us from toronto with more on this alex president she's belt road policy as we said it was in shrine in this constitution surprise for a lot of people tell us about that. well what's interesting is that you have something in trying to the constitution that not necessarily is within the only the borders of china this expands way beyond the borders of china as you mentioned we're talking about sixty countries to be affected by this and if you just bring up a map you will see right now exactly what this looks like so it's the old silk road as i mean it's one of the highlights of the new version here all the way to london we already have a train route that goes from china to there so we're talking about transportation we're talking about trains we're talking about roads for for trucks and cars we're
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talking about maritime routes you can see all that on this map which is very very clear sixty countries of continents include europe asia and of course oceana which is new zealand and australia and when you look at how broad this actually is it's basically a hole in compass and except for us here on the other half of the world which would be north and south america do some of the points here and here's here's some interesting like just a breakdown of what the chinese government is saying they're saying the opportunities are in five key areas here that includes policy coordination with other nations that are all going to be a part of this this expansion of sorts the facilities connectivity so we're talking about energy we're talking about power grids except for a trade and investment which is pretty obvious financial integration and cultural exchange now that was the sort of fluffy one at the end but any way that you turn it this really is a project that brings china to the center of the world and connects other countries
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to china as an economic powerhouse you notice they put the fucking line right behind a scary line like this financial incentive ration what does the breadth of this project mean for presidential power. well you know something that you mentioned off the top for president gene this is this is massive he is now entrenched in the constitution this is his initiative we haven't seen the likes of this since and now so for him he's taken his stake in china we don't see anybody coming up after gee there's no heir apparent after g so he really is now the one and only person in china that makes all the decisions and that this could be good and that could be bad for us looking from the west and in our democratic ways you know it's a scary thing but you have to think about the way china has worked for millenia for the past four thousand years be it a empire or be it a president china has always had a very strong centralized system and that's for many reasons you have to talk about
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eighteen different language languages i don't know how many cultures exist in china it's a big country with a lot of diversity and to keep this diversity together sometimes you need a strong centralized government and that's what china is banking on and that's what g.e. is banking on planes doing very well at it would it would seem to let's go beyond china and talk about the countries that this new silk road essentially is winding thrill what's the effect for that i know every country is going to be different but there's got to be a set thing a month of what they stand to lose or to gain. lot of people are saying they're going to gain including countries like australia no look this is a policy to push forward to it's empire building let's not look at it as anything other than that but it's empire building through money not through bomb so what we've seen the states do in the past when they tried to do their expansion is things this is a very different way of doing it there is an expansionism there is an integration but at the same time it's the carrot not the stick at work here countries are looking at this they know how big of a power china is and as far as we can see you know they're seeing this as an
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opportunity to make money so i could nominally speaking for most this is a good thing a new style of empire building very interesting to see what's in store thank you very much alex for highly match coming at us from toronto thank you. want to add china lotter is not is not just looking at president xi in trade she's looking at the succession of power i caught up with daniel de martino both the president of money strong and the author of fed up an insider's take on why the federal reserve is bad for america take a listen well i think that he has solidified his power base to a tremendous extent i'm such a dork that i stayed up until midnight eastern time last wednesday just to see the individuals he was going to parade out on to that great red carpet with who represents the six men of his standing committee and sure enough not one of them
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was in his fifty's and without getting too detailed that means that he has not chosen a successor for twenty twenty two he brought people out who were his peers she is sixty four years old but he brought people out who i think he sees going with him over the next not just five but ten years we have seen with our own eyes the next. you have so you you really do think that it's that solid that we are looking at someone without sort of stature that is literally just it's in concrete. look i think it's part of their culture you don't lose face in asian cultures it's just not how it's done i think that whatever the back door wrangling might or might not have constituted i don't think that the powers that be would have allowed president xi to present himself as such a strong man as as a one man running this massive country if there weren't many deliberations that backed that up and he's done
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a splendid job over the past five years of solidifying china's position so there were probably very few arguments to push back against him saying i'm sixty four years old i've still got a lot of gas in the engine let's take china into a position where we supersede the size of the u.s. economy a lot of ambitious talk at the nineteenth congress of the communist party china watchers have paid a lot of attention to succession as obviously you have as well let's focus though on the chinese economy. it's had its credit downgraded just just one sort of bad thing it's had to deal with china of course disapproves of that how is. the president bend and guiding the chinese economy. well i would say he's been very forthright in guiding the chinese economy very recently came back to the debt market the country of china the sovereign debt and that particular issue was eleven times oversubscribed so use and this is foreign demand so you see that there's
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a lot of there's a lot of optimism in president she's ability to thread this needle by the same token i don't think that there's any coincidence that in the days that followed the recess of the congress we find out that the services sector is slowing that the manufacturing sector is slowing put a lot of gas into the engine to push economic growth towards that seven percent mark for optics going into this this twice a decade congress and now i think we're going to have. to sit back and see how much of that was smoke and mirrors and what is going to be coming back in terms of backlash in the weeks and the months to come that that proves that the economy was not as strong as what she wanted to be portrayed well speaking of you know into the future with trade what's called it basically a signature feature of she's contribution to china's geo political place in the world belt road initiative it's essentially silk road two point zero for
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a lot of people that's what it's being called the trade links the conic to be around the world covering a vast vast area after the nineteenth congress. concluded what we had in the constitution was this wording following the principle of share growth through discussion and collaboration and pursuing the belt road initiative talking about overtaking up through twenty fifty what do you think of this statement and the ambition in it for this level of a trade network. well i think that we have to approach silk road two point zero and for that matter the mega city that the saudi arabians want to build i think we need to approach these with understanding what the underlying impetus is to build these or what the underlying meaning is behind the vision so we're talking about upwards of two four trillion dollars if you're looking out all the way into fruition of
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this dream china is but the question is whether or not they will have the wherewithal with the foreign reserves with the cash they have on hand with the debt they have in their markets right now with the next future global recession how that is handled it's great to dream it's wonderful to have a vision the question is will there are three point one trillion dollar reserve the enough to actually see this vision through and if not is this really just something that the chinese are putting out there in order to help solidify themselves on the economic world stage and build partnerships and joint ventures if you will with other sovereign nations to slowly chip away at the u.s. dominance. among other sovereigns in the world economy when it seems like so much to lose because let's say they're continuing with this plan buying up land signing papers doing the handshakes. through portugal central asia europe it
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is really really actually quite astounding what if they do lose face can he afford that. well i think that. he's going to be walking on the razor's edge because he's going to position himself and take a strongman position and that means that he's going to have to take ownership of what goes right and what goes wrong and he's proven by given state controlled companies more credit over the past few months which is the opposite of the deed leveraging which is the propaganda that the government has been trying to sell we will have to see if he's capable of holding things together or whether he pushes himself into being more of a dictator and we see china begin to backtrack in terms of the economic progress it's made we've never seen a non capitalist economy as such in modern history come out to present itself and become the dominant world super economy ok just an anecdotal question
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now you mention his successor is heading that red carpet and out of heart of the cameras relatively young how long do you think it is before one of them will sort of rise in public stature and become the obvious successor well i think that the way that everything i've learned in studying the chinese culture and the chinese political system i think that you will that she will be very purposeful in having somebody who he aims to succeed him rise in public that's just how it's done you get you get more and more stature you get a better and better position you get a position that's closer and closer to the president until one day the president steps aside and you end up taking over the reins so i think that will be a deliberate but very public process process that we see here in the years that come out to twenty twenty two and clearly potentially out to twenty twenty seven at
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this point. danielle booth president of money strong and author of fed up an insider's take on why the federal reserve is bad for america thank you thank you very much. time now for a quick break but stick around because when we return we'll look at how the belton road initiative will affect alliances of the trans is that partnership will be right back. it's the cradle of jazz. we have. to go do suggest. to you climatic turns to feed
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alligators on the loose. and crime is by the least members of my close. street racing. each of the night. new orleans. the best place in the world. if and when it's completed the belt and road initiative will wind through countries hosting more than half of the global population the largest trade wrote in the world what will this mean for other famous trade deals though such as the trans-pacific partnership who must be uncle for she has more on that for us by two thousand and fifty the countries involved in one belt one road will contribute eighty percent of global g.d.p.
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growth according to oxford economics and that's up from sixty eight percent last year painting a bright future for the trade initiatives on the other hand it's not so great for other major trade deals like the trans-pacific partnership. back in january president trump signed an order to withdraw from the t p p over what he claims were unfair rules and there's still a chance that he can hold the u.s. out of the north american free trade agreement for the same concerns so the puts the u.s. in a unique situation when it comes to global trade for a few reasons the one belched one road project currently includes sixty countries and is open to adding more compared to the twelve nations originally added in the t p p and while the t p p is simply a trade deal china's foreign institutional support behind its venture including a bank and investment fund but the most obvious difference is a new infrastructure including airports pipelines roads and bridges to connect the nation's included coupled with other problems like aggression with north korea or
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conflict in the south china sea it's unclear how the u.s. will approach one belt one road but officials have indicated that china likely won't be adding the u.s. to its list during a congressional hearing in october defense secretary james mattis said in a globalized world there are many belts and many roads and no one nation should put itself into a position of dictating one belt one road that said the one belt one road also goes through disputed territory and i think that in itself shows the vulnerability of trying to establish that sort of dictate the maddest was referring to there is a china pakistan economic corridor which india says passes through the disputed territory of kashmir so beyond the economic competition with one belt one road it seems there could be other road blocks to overcome before it becomes a real competitor. how does this if we crunch the numbers compare financially to t.v. thier nafta just the size of this deal well it's kind of hard to make
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a black and white comparison here because they are so different if you look at p.p. or t.t. ip or nafta or any of those trade deals. i mean one belt one road is not a deal right it's a massive project that's. to include all sorts of infrastructure projects and it's going to include a bank which some people think could eventually rival the world bank if the project is actually successful and obviously would increase china's presence all over the world so they're so different it's hard to say what it would do but if it is successful would certainly be a major trade disruptor especially if you will guard most of if the u.s. stays in the t.t.p. and after they pull out it would still have massive implications right the u.s. and the west the only thing we can do right now is just sort of stay very broad what about europe what effect could it have there wall it's not as much of a threat to europe as it is to the u.s. for a few reasons even if the t.t. ip falls apart or the e.u. doesn't establish a trade deal with the u.k. when they leave which we can at this point assume it's not going to happen and
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there are some leaders in europe that are open to china's project you know they're not against having an increased presence they are however there are other leaders that are very cautious about working with china because even leaders want to establish that they will everything will happen within their rules and regulations and right now course there is no guarantee that that would happen especially china has at the helm so so a lot to be determined i don't think there was ever any question of the u.s. now joining this obviously the bilateral agreements are taking over everything we talk about trade now right i mean as far as we know the u.s. is not considering at all joining on but they still have to take into consideration when we not negotiate our own trade deals right of course if this ever happens but what its stance would have to be thank you so much for information on this boom bust.
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let's take a look at the worldwide impact of china's grandiose b r i the conic to vittie and the cooperation needed are mind boggling here to discuss a former u.s. trade commissioner bart chilton what does this say. about we've talked about the president's power but i want to get that from your from your perspective what this means in your opinion about writing was you say i mean it's one thing for the president xi to be in trying to the constitution but to have his actual initiative enshrine is a huge deal but you know you've spoken about how important this is from the circulatory you know transportation modes in china and in the sixty plus countries that they're building links with but it's a lot more than that not just the trade the bianca spoke about but geopolitics i mean this is a huge deal you know overall around the world what of what about you know we've seen in the united states we had trouble with any new infrastructure programs just even getting money off the ground to deal with that let alone the dirty
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details how is it that china can actually bite off this much and chew it it's so there's so much to overcome the finances the culture all of that a lot of people are not going to want china to be buying up parts well they're and they're starting to do that already but they look at the trillion dollars that happens to be the same amount to president trump talked about doing a trillion dollars they've already spent several hundred one hundred million but it's because president she has this you know power mantle to go on and it is really smart long term strategy i mean when you look at it and you've talked about you know do they have the reserves to do this right but they're looking at this over the next five ten years they're looking at twenty years that right two years how do they position this country which just a few years ago or not a few years ago but back in the eighty's and ninety's china was the largest recipient of world bank and asian development funds i mean they were developing
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countries now china by itself is the is larger contributes more to other nations than the world bank does so they are lending people all around the world but particularly. in a genre and in in africa and those folks are going to be indebted some the exactly all the tissues the others they're going to be indebted so china's sort of unspoken mantra is more trade less fighting and that will build alliances and allegiances far into the future right got right under the thumb what about filling a vacuum do you think president trumps relative isolation as talk is sort of in china as you know a chance to step up to the point of clearly are they were the china was already going to do this i mean they it announced the belton road back in two thousand and thirteen yes but this has opened the door wider when i say this i mean the trump of ministration you know having the an isolationist view in the middle of
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globalization going on all around the world is a really dangerous thing and you don't nothing against china but they are not just going to eat our lunch they're going to eat our dinner and dessert to allow them to continue to just make these inroads when we're sitting idly on our hands saying you know my atlantic america great again but not entering into new new trade agreements i mean we are talking about the civic partnership but they've entered all these free trade agreements fourteen free trade agreements right nations another five out there pending they're doing a lot and being aggressive about it and we quite frankly are not what about the rest of the world less so what is the reception to a lot of the not we're not alone in being the only ones that want to shy away from something not everyone is poor and we're not judy you know but but but they've got to be looking at the other nations whether or not it's. asia oceana africa or
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the rest of europe by the way i mean even though we have the brits that sentiment over there you think about what they're doing these eight hundred miles of roads these thirty five different freight lines and high speed rail in new airports it's not. it's going to eurasia those things are going then into europe so europe is going to be looking at it from a bottom line perspective what is the economic impact and all those goods that are produced now in central china and western china as opposed to having to go east you know from the seaports on eastern china and go through the straits of malacca they're going to go west on a rail and are going to get to europe quicker and that's already cheap because the labor costs in china but then it's going to be cheaper transportation so i think the other nations particularly in europe are going to be looking at this and say whoa there's a pretty good deal not too bad how would do you think this would bump them up to the top of the heap as far as the world economy is u.s. is one you think that's going to cause you to overtake that i do actually i mean
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they have been on the verge of being the number one economy u.s. is right now but they are already they have ninety some countries that viewed that china as their largest trading partner we're about forty fifty two rather so they're already doing way they're going to probably overtake us as you know we've talked about it before they've got about a six percent gross domestic product growth we're struggling to get to you know two point two this year i sixty one is alarming for them yeah i mean it's not even it's not even aware that they want to do a down but now there is some question about whether or not it's really six percent or is it four point eight but it's not as you pointed to allow us with we'll be lucky to get this for the president trying talks about you know we want least three i think at some point during his campaign he went up to six but he said it three three is great well when you're only aiming for three and then china's having sex doesn't matter if it's four it's somewhere that shut china's doing a whole lot in this regard and this is just such a a long term thing that they are doing and it's it is about the infrastructure and
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the conic connectivity but it's also i think about this geopolitics that taking place and that is so smart of them to be looking at this they're making loans to folks foreign aid loans. folks it's really going to help them long term good for them i just hope that we in the u.s. don't stay asleep at the switch what about trump's initiatives to you know he's he's all about the bilateral trade talks he's going you know the asia trip was big and do you think that his his talk about bilateral is always best can in any way get the u.s. out of china i don't think so i mean mark had a really low bar for the asia trip and it was if he didn't do what bush forty one did and you know throw up that is probably going to be zero zero zero zero zero zero zero when we're right but but right bottom line is there's more the u.s. can do and i just hope we do it all right thank you so much former u.s. attorney commissioner of our children. thanks for watching the show to catch us on direct t.v. in the united states you can find us on the our team channel three two one and if
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you missed us on directv catch boom bust on you tube youtube dot com slash thanks for watching see you next time. you.
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really. going on in humans only read those you don't use them don't eat them doesn't do it on jellyfish do in the sand on the wall some in that are equally. don't just listen to what he calls a stance make that connection don't. don't please don't sit down and. move it out to those of. us out of the answer to all. people. and they could be a useful idiot i mean useful idiot you called me a useful idiot a useful idiot and useful idiots were expressing my opinions on t. there are thousands of us doing it behind his record is
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a simple strategy we attack persons instead of talking about the org what's next why stop there he'll bend me from getting this close to the white house i'm with a group code pink why not ban the color pink one hour stretch beyond the rock i should be sent to the town of london because i'm a traitor brick me although we'll put up with my lifetime of this sort of nonsense you don't scare me want to scare us and i'll continue to voice my opinion i'll continue to speak out i'm in good company i'm in good company you're going to fix me you want to do this because we're free thinkers. they all. help. solve. yes to all this is all the good live. live.
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live live. live. live live live . thank you. thank you. thank you.
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thank you. is. the british prime minister of europe. critics. from the struggling. after pressure from the u.s. justice department. for. a foreign agent we take a look at what changes. from words. between iran and saudi arabia.

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