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tv   Keiser Report  RT  July 19, 2018 5:30pm-6:01pm EDT

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it's right up to date told me for the latest news headlines in half an hour. tomorrow there may not be any kind of and maybe bacterial life and may not be anything tells you but if you think it's probably true sometimes life out there and certainly from now we can you can send off a robot to interact with some other species out there. do you. remember the
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first time you tried coffee you're like wow this is horrible now you're addicted to it while the cars are for. stacy well max in the second half we're talking to dan collins of the china money report we're talking about what donald trump is doing with the trade war dan is over there in china so he's seeing from the front lines on the other side of the war what's happening and here in the united states you know we've been having a financial war for the last decade at least it started a little bit before that i reckon but certainly in two thousand and eight when the financial crisis happened then we brought in this great hope the great savior of the of our economy and our culture and our politics is barack obama and he was supposed to hopefully do something about these banks and we had occupy wall street and all that sort of stuff and what did he do we pointed larry summers and all those schmucks on to me they geithner and all those sort of people into his administration and nothing ever happened because he said we have to look forward we can't look back well something shocking as happened in the past week or two and
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nobody of course is paying attention to the certainly not likes of m s n b c but villanova man gets fourteen years for predatory payday lending feds so this is villanova pennsylvania and apparently they're proud of their home grown man villanova man reputed lee known as the godfather of payday lending will spend more than a decade behind bars for scheming to collect millions an unlawful debt obtained from high interest loans according to federal authorities u.s. attorney william and mcsweeney said charles howland then seventy seven of the nobel was sentenced to fourteen years and federal prison and ordered to pay a two point five million dollars fine he was found guilty on seventeen counts of. criminal conduct the government charged him in this indictment under the rico act two counts of conspiracy to violate the rico act one count of conspiracy to commit
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mail fraud wire fraud and money laundering two counts of mail fraud and aiding in betting three counts of wire fraud and aiding abetting so it's a pretty deep go it's one of the guys who basically is credited with engineering and innovating the payday lending market and predatory lending wow this is a feel good story yeah so this guy who's involved in this whole aisha's payday lending racket it's going to jail it reminds ray that we were back in the u.k. and when we were doing stuff for the russell brand you know we highlighted one of the payday lenders in the u.k. and they in fact closed up shop and it was very effective it's it's one of the most pernicious and ugliest and underhanded way to destroy a society is by letting payday lenders you know exploit the fact that they can get away with two thousand three thousand fourteen thousand dollars thirty percent a year interest on these small you started in one thousand nine hundred seven under bill clinton and continued up until twenty seventeen when he was charged by
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the trumpet ministration the u.s. attorney charged with predatory lending he was apparently an inspiration to many other payday lenders and they followed on the things he got to so as states introduced predatory lending laws he circumvented them and found innovative ways to get around it but i also bring this up this is either good news or bad news because obama treasury secretary linked to accused predatory lender looks like with the geithner timothy geithner who you grew up in the same town they're over in larchmont balls played of flint park in larchmont i played on the baseball team the green demons i believe he was on the el submarines right actually i know you were in the yellow sun i was actually also. it's a great they don't like to admit they were the better team but when you're eight years old these things matter nevertheless i think ok this could be good news because maybe we will finally get some justice occupy wall street will finally get
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some justice because of course timothy geithner was at the new york fed overseeing the bailouts of all of these banks and helping out all his buddies and then became treasury secretary and got away with all his failure to disclose the i.r.s. all his stuff when he was working at one of those world bank or a map sort of things but it could be that like maybe we're going to get some justice it might be another twenty years or it could be bad news because like maybe this he's he's like a mafia sort of guy like edging out all the competition getting their competition arrested and thrown in prison but according to the daily beast article here timothy geitner who served as treasury secretary during the obama administration is now president of a private equity fund that manages a company that has been accused of predatory lending practices according to the washington post the newspaper reports that mariner finance which is owned and managed by new york firm warburg pincus offers poor americans high interest loans
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by sending them texts in the mail customers who can't repay the loans have sued for the money they owe plus interest processing fees and legal fees sometimes within months of the checks being cast the consumer installment loans that marcus who mailed out checks encourage recipients to accept a loan on an impulse with interest rates as high as thirty six percent infamously blame thirty four thousand dollars worth of unpaid taxes on this use of software turbo tax previously called for states to police predatory lenders but now he's the cop a cop what i mean he just sends poor people money what the interest rate attached to lending to games the second thing deposit the check he refers them to the prison industrial complex i mean this is mail fraud oh. guiders involved in mail fraud. in stoking the prison industrial complex this is timothy geithner condemning an entire population to be preyed on by the worst kleptocrats we've ever
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seen in history to kill to beat them to subjugate them to imprison them but other than that this sounds like warburg purchases a good money maker well the fact is you know many activists who used to be in the occupy wall street movement are now looking for a universal basic income they think that the government should give everybody in the united states a thousand dollars a month or something like that so here's a guy who was at the front line he was at the new york fed during the time of the occupy wall street he saw occupy wall street therefore would have been only two blocks away he would have seen what their complaints were he would have seen what the issues are so hearing knows that ok they're looking for a universal basic income so are introducing a policy of universal basic debt so here every american is going to have a thousand dollar check from me and they're never going to escape that because no matter what they're not going to go to prison they're going to stay out of prison because they're going to keep on servicing that debt to me and that's that's their life of internal purgatory hell of debt because the always have that debt around their neck and of course you know with all the data collected on facebook and
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google and twitter and all these companies that sell their information and data analytics to the likes of warburg pincus of course they know exactly when you need that money and they know exactly when you're vulnerable maybe a child who's been ill maybe you have you know medical expenses maybe you have an elderly parent in the assisted living and you have needs for money and desperate for cash and they send you a check in the mail and you just open your. it's not like sweepstakes that use the ed mcmahon used to do it's like here we have a check for you and of course people are desperate they cash a five thousand and ten thousand dollars check and lo and behold they instantly this is part of what r.b.s. did with georgi is they they randomly seize they ask for you to pay the principle back. they cash the check now pay the principle back you know weeks later right so in an age when we're talking about universal basic income by giving people money strings no strings attached as a way to accommodate them for the fact that their economy has been gutted by the
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likes of tim geithner and the friends who financial lies everything and then gave themselves free loans for decades to do private equity deals to suck all the equity and cash out of the economy so now we're going to universal basic income but his spin on it is let's do it differently let's him in book you know burden these people with un forgivable loans at all and wind them in prison that's my take on that when i say yeah i don't know about the prison thing but certainly debtors prisons are coming back certainly they are destroying people with debt here's the guy who also engineered all of that not tarp but he engineered all of the fannie mae and freddie mac. hamp and the restructuring of these loans that actually didn't end up helping any american mortgage holder who was underwater but it helped all the banks so here and under obama to put this into context when you started this again you're saying that during this obama period when he came into town and he threw the keys to the the
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washington elite to get washington consensus and this is what they have come up with on top of that we have another situation where apparently america's labor shortage is approaching epidemic proportions and it could be employers who end up paying so of course they're very concerned about this all these financial press is concerned that employers there's apparently an epidemic of labor shortage so one thing most people learn in economics one hundred one is that usually if there's a shortage of say apples or milk you raise the price and what happens apple milk arrives in the market right wages are going up well right now there's an epidemic a shortage of employers are unwilling unwilling to give more money. are unwilling to ask for more money they're in a standoff so they're afraid because they have these these predatory lending the loans that timothy geitner their former treasury secretary they assume they hey
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this guy must be a nice guy he says sign my dollar bill and here he is giving me a loan and now of castle loan and now i'm desperate and i have to pay the thirty six percent interest rate so dare i ask for any more money no but am i willing to do that job for ten dollars an hour when that's on even if it's going to set me over into an obama care policy that's going to cost more than going to work so there were at a strange juncture because there is things like obamacare policies they do if you earn too much money then you get basically you become negative net worth because you have to pay the health care costs that are like more than most salaries in america so it's like a plague in europe you know in the fourteen hundred so wiped out half the population and then wages started going up that was the beginning of the middle class so america is facing a plague of infestation of banker like timothy geithner who's called the cause. of the economy and a die off. well if you have
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a universal basic debt then you have a situation where workers are afraid to ask for more money but then employers can't hire anybody that's willing to work because it's well they don't earn enough to even cover the interest so tweet from david sirota he says about this telling that the political class calmly cites supply and demand economics to justify a forty dollars bottle of water during a natural disaster but the same political class is horrified that supply and demand economics might force c.e.o.'s to pay workers are higher wage and a labor shortage so there's a labor shortage but nobody's willing to move because all these c.e.o.'s know that you're poor they all know that you have universal basic debt and they all know that their only way out of it is to take whatever meager income they're willing to offer you. and you're afraid to ask for more money because you are a universal basic that or you are like one step away from some better prison they're ready to build someday and where where does it go from here it's kind of
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a stalemate right so they love capitalism when they can charge forty dollars during a crisis but they hate it when they have to actually care to supply and demand cars when it comes to hiring workers. therefore what they end up with is the worst of all possible worlds kleptocrats and criminal a serial recidivists criminals like timothy geitner in charge of companies who are out there wholesale slaughtering americans for their amusement pet slaughtering water. you know rachel maddow conspiracy theory oh yeah we don't want to be like oh yeah death slaughter that's like hey we gotta go to the second half was in the second as i said then calling. dan cole to the china money report don't go away stay right there. seventy. pounds i like. to join the judges. hundred sixty days of. the
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russian w.b. . under russian. bridge was. witness to construction really you need to transpose don't agree with me. most of those you know won't google for more familiar great. u.s. president donald trump has repeatedly said he wants better relations with russia he did finally how his long sought summit with lot of near putin both presidents called it a success the american political class and corporate media describe the helsinki summit as a failure and probably worse. what politicians do. they
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put themselves on the line to get accepted or rejected. so when you want to be president. i want to press. him to going to do press this is what before three in the morning can't be good. i'm interested always in the was in the house. welcome back to the kaiser report imax guys are time to go to dan collins of the china money report and. dan a welcome back hey max thanks good to be back all right dan air one of our favorite guests because their call asia and china has been spot on for a number of years so once again we call in your expertise to help us get to the latest news it looks like trade wars on last year on kaiser report you said that
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the trade war has been on for a long time it was only the u.s. who didn't know it i think now they know it your thoughts stand yes absolutely max i think i said last year that the trade war has been lost for many years and. i think that's been borne out by the facts u.s. workers have seen a paycheck increase in two decades most of the manufacturing areas of the country you know i've been you know needed a lot of work forty fifty thousand factories were lost you know for in the last decade we have less workers in manufacturing united states since we've had in the one nine hundred seventy s. and that's not all automation there's there's actually more manufacturing workers today than it's ever been there's no need i say the united states was the only good they didn't protect its workers and the u.s. had a two and a half percent duty and everybody else and people like china here and the twenty five to fifty percent i know this because i spent twenty years here are closing
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factories in the united states and opening in china so that's been the situation now dreda where i think it was last i call this the reconstruction economy if you look at these tariffs the fifty billion dollars thirty four or even said it is you know sixteen million are coming these are it took a look at the tariff detail they're all centered around reconstruct the union really does relies on the united states while you know motors industrial new. prince. furnace is for steel manufacturing i mean it's car it's mostly made based around manufacturing not a lot of stuff they don't hit americans in the retail pocketbook so they treat we're just starting over here but they call them out it's a lot of press and i've had a couple of deals postponed already because of it i think we're at the first inning of this and then you get continue to get uglier and uglier china is going to run
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out of hamel before the united states china only by the one hundred thirty billion years from the u.s. u.s. by five hundred billion so in that way the u.s. does have a lot of book cards in their pocket to play in this trade war right so a lot a lot on packed there dan but first of all just to summarize you are saying that trump really recognized the facts on the ground that there has been a trade war america lost a trade war and he simply now getting back into the game so i think that needs to be recognize number two he said something there very interesting i want to get your further comments on it that that china would run out of a gas before the u.s. and this trade war and a canoe go into a little bit sure they mention the only way they will be by about a fifth of what the united states buy from them so in terms of just currently packing on here is it doesn't worth it you know this whole deal industrialization concept of the united states would we've been talking about here several years is borne out by the fact of what china has targeted the united states so we've seen
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fish nuts the u.s. has become in one thousand nine hundred three agrarian economy and we have very little to export anymore so we need to be really industrialized china has other ways though the kids go at the trade or just is opposing tariffs right now just on the big macro picture they american made to be a reinvest realized and factories come back to america it may be cheaper to build a factory now in america than in chad. ana ok so that means that wages potentially in america go up but it also means that prices go up again to get inflation so the american worker will get more money in their pocket but stuff will start to cost more so it's the exact opposite of what we saw for the past twenty years americans were willing to accept lower wages because the stuff at wal-mart that was manufactured in china was depreciating in value faster than their wages so they had that sense of well my lifestyle is actually going up because i can afford
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a big screen t.v. i can afford all these clothes made in asia even though make a less so is it correct to say that the whole equation is now going to go into reverse stamp yeah i believe we're at the inflection point here i mean i've been here twenty years this is the inflection point the world is not going to be the same china no longer has the cheap labor i mean literally are making sixty to seventy percent of what u.s. workers make no the u.s. is the new economy then all the infrastructure needs to be rebuilt you know the workers actually make very low wages now ten bucks an hour to a bucks an hour now much more than you get here in china and i see big opportunities here and us now is the to read your life inflation could come back however as you bring all that new capacity on why in the u.s. the prices will come down so it will start out with a tear of but u.s. steel as more plants and other steel company had more plants a price will naturally come down americans will workers and then they will have
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their own industrial base again all right well that sounds like a big positive for the u.s. so how is this being portrayed in the media in china how are they talking about this over there well the number one issue here no max is the people throwing themselves off buildings because they lost money in the world thanks a lot and germany over number two is the molly the trade war. and people are a little bit nervous twenty three percent of the exports out of china go in united states however if you look at a plant by plant company by. company lot of companies have one hundred percent of their exports go to the united states and that's all they do these guys could be in severe trouble you know they could be out of business the day after next you could have a lot of economic dislocation you could have a lot you know china now is the time to confront china because you have a lot of debt overhang you have this one bill one row you have all this money going all over the place and you know the time i think if you try to confront train in ten years to be too late. but now is probably
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a good time for united states to do this right trump as savior coming in at the just at the end of the possible nick of time to to save and reinvest your lies america sounds like a good re-election campaign so dan tell us about the belt and wrote an essay of it and what the impact of that might be just a quick synopsis there this is the idea of kind of the new silk road right they're going to go all over asia connect russia china what this. new trading geo area outside of the traditional a comic give us some fill in on that dan this is china's challenge to the i.m.f. the world bank you know they created this asian infrastructure bank one hundred billion dollars that funding this new silk road also the maritime road this is about locking in all of china's neighbors into their infrastructure and technological footprint you know they build the bridges the ports the roads the radio they come in to build the telecom network they get you in with. it's all
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about getting as many countries into their sphere of influence and most there's many more countries no trade dependent in china than they are the united states so this is. this is their geo political. strategy to you know roll their own country outside their own borders you know dan back in one thousand eight hundred ninety nine thereabouts i was working on a law stray and the theme of the day was that japan was going to take over the world and that rail stay told. you know is skyrocketing and america was becoming a vassal state to the japanese america and then japan crashed and they benefit deflationary twenty year period is it similar with china you know china was touted as going to be a market of the twenty first century that they were going to take over the world the same like now they're rubber as at the road and maybe not so much is there a parallel there dan well i think this is the time that will tell i would remember the japanese comparison as well i would say china has for every one japanese
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citizen there's twenty chinese so it's a much larger scale we're talking about if you look at the reality of the real economy they have kind of taken over the world and by far number one in most markets in the world you know they build more steel in six weeks than us those all year their car her gets twice as large. will they continue this growth path if they continue on the growth that they have now absolutely the world chinese have cities no we g.d.p. is there the size of european countries only in the g.d.p. of dalin is bigger than finland the g.d.p. is bigger than sweden g.p.o. is bigger than greece so this is a thirteen trillion dollar economy but it's grafted onto a nine hundred thirty s. political system and i think that is its weakness and if now is the time you know in world history where it will forego often by far be the number one power in ten years or the state me in the kind of the japanese model all right dan what is china
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twenty five twenty twenty five and why is there so much. government to a talk about china twenty twenty five what is it well china twenty made in china twenty twenty five is chinese industrial policy to get everything localized within chinese companies high tech products that they still can do today a lot of those are on high end chips low hyun samy conductor testing equipment they're pouring huge amounts of money and even the local vehicle than elect will be able bad. so it's basically just an industrial policy i don't blame them for that and i think if you criticize them for that common mist good sense for every nation to do that china doesn't like to talk about it the big you know the there's a chinese scene in. your screens and bide your time and that's what they're doing with trying to put the silence on made in china twenty twenty five in the press right so they will in other words like a product like apple is designed in california built in china they want to get in on some of that design dollars and be
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a raise at all and they get the entire. dollar for every bit of the of the ecosystem but i want to move on to. some of the trumpet ministration are claiming china is behind the scenes trying to ruin the north korean deal so is this the beginning of some anti china propaganda that usually leads to isolation one of plied against others etc i've not heard of this what have you heard of this what tell us more of them well i think we talked last time in north korea there is there are ninety percent trade depending on china china is the puppet master of the whole north east wouldn't surprise me if they try to throw throw throw that in with their negotiations but i don't think anyone has any real proof of it so what is the oh there they go along. the moment though it's you know at what point do the cowlick in the chinese government kind of keep the lid on the fact that there's
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a major seismic change coming and. how much of an impact will this have on let on the average chinese person. well they depend on the job losses i mean it's quite interesting you know so when drunk gave them a. restart of the z.t. would be able to buy the qualcomm chips i think people in us criticized them but they didn't understand one hundred thousand employees if you want a real trade war you shut down a company that is a hundred thousand employees and pull a model put them out of work in one day so these things need to be managed very carefully. so that the z.t. example but you have thousands of other factors that go idle overnight in the long run it may be good for china china is getting old very fast in ten years they can be one of those countries in the world you already can find factory workers the chinese industrial policy what they have currently makes no sense to keep building factories and act or building factories and export it is it makes sense so there is
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a there is incentive for china to come to the table and of all these large country called you wanted you to work together well that actually happened though remains to be seen all right dan thanks so much for being on the kaiser report thanks max all right well that's going to do it for this edition of the kaiser report famous geyser and stacey abbott want to thank our guest dan collins all the china report if you want to read just on twitter as kaiser report as i like stand by.
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my. turn of the summits the white house announces donald trump's inviting the russian president to the u.s. . while speculation for the security minister dismisses media reports that police have identified russian perpetrators behind the script. i'm french president under pressure after one of his aides beating a protester to the ground. as a journey is you watching international.


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