🔴 Steve Bannon's Warning On China Trade War (w/ Kyle Bass) | Real Vision Classics

[Music] mr. Bannon thanks for being here at this undisclosed location in Texas it's Steve Steve Steve it's good good to have you here thanks for being here here and you know you're here very specifically to talk with me about something that you and I study very very intently in its China and I'd love to just start right off the bat with asking you what do you think China's true intentions are in kind of their in their grand strategy what is the grand strategy is very simple is to be a hegemonic world power I mean you see through one belt one road you can see through made in China 2025 you can see through everything they're doing their strategy of being like the East India Company and sub-saharan Africa what they're doing the Caribbean now what they're doing in Latin America the economic war that all what we call all forces of government right all areas of government focus on the economic war against the United States their military buildup they're basically trying to close the South China Sea it is the most geopolitically ambitious strategy were saying let me be very specific the three great theories of geopolitics you've got McKenna's theory of the Asian landmass you have Mahon theory of cutting off the choke points of the world's oceans and you have speakman theory of keeping your enemy off of the Asian landmass the Chinese the only power in world history to ever try to do all three simultaneously you know Napoleon and Hitler and others tried to do the Eurasian landmass others the British and the American empires of British Empire and the American you know system we have today's built off Mohandas naval strategy and then speakman is one from the from the earlier 20th century what China is doing is with one belt one road trying to basically connect the old Silk Road all the way up to Italy's we saw in the paper today the Italian government the the guys in the five-star de Maio came back from Beijing they had a huge thing about hey we want to end we want to end the one belt one Road in Italy Marco Polo essentially left we had a vote this week in the Maldives which really rejected what they're trying to do in the Mahon strategy of taking all the naval bases and choke points throughout the world and then speakman what they're trying to do is force the united states which has been a Pacific Power off of the landmass through what they're doing the South China Sea what they're doing around Taiwan I said they want to push us back to Guam so listen they're the most people have said for years to kind of cover this a lot of Wall Street and City of London and Frankfurt crowd have kind of said oh well you know they're not Territory ambitious they've never been an expansionist power well they're a geopolitically expansionist power and it's quite extraordinary what they're doing and doing it at the same time and do you think that they're kind of let's say their newfound economic greatness or their perceived greatness post financial crisis they always believed they were kind of a second-rate power financially going into 2008 and the world seems to believe that they they were the engine of the world's growth from 2009 2018 is it is it that economic growth that they build their geopolitical assertiveness on in your opinion okay listen I think it's the you know since time immemorial the the access to the Chinese market kind of this mystery the Chinese market has always drawn in the West right whether is the British coming there at first with the East India Company or later the the China you know the China schooners from the from the United States right the China trade I was always this thing about China what we've seen and I happen to believe that the Chinese economic system is built on a house of sand and I think it's going to lead us to a greater financial debacle than 2008 ever was in the same culprits the exact same culprits that led to the financial crisis in 2008 the investment banks the commercial banks the hedge funds the government entities right the same elites that led to that financial crisis and got bailed out and had no responsibility no accountability have been the same exact actors that have exacerbated this situation in China and so yes the reason the world's elites the party of Davos the people on Wall Street what I call the IR Department of China which are the investment banks particularly goldman sachs and some commercial banks the lobbyists for China which is the basically the 25 or 30 largest corporations that deal in China today their lobbyists in Washington DC these are all about the big private equity guys like Schwartzman these guys they're all going to have to be held accountable for what went on in China what China was able to do in basically coordination with the elites in the West was de-industrialized the industrial democracies of the West both the Europe in the United States that's why brexit in 2016 are inextricably linked what it is is the exporting of Chinese overcapacity and Chinese deflation in basic industrial goods and so China has and from the Chinese point of view has been quite brilliant they've essentially taken 350 million of their people from kind of working poverty to middle class and 400 million people from abject poverty to working poverty so essentially two-thirds of their of their population because their population I really think is closer to 1.3 or 1.4 billion than what they say in 1.1 so what they've done is heroic in 30 years ok from from a from a strategy point of view but that has been exacerbated by the elites in the West who basically kind of finance it and brought it along it in fact what drop the recent Trump was I think so special he said hey this is not the way the world has to be it can be very different we've basically financed the rise of China we've built China and while he heard for years and what you heard for years is no this is the what I call the second law of thermodynamics or this is a immutable law of physics the rise of China and what Trump says no this is through human agency it's the commercial banks the investment banks the corporations the Cal toad to the Chinese regime and one thing I want to make sure how I get from front this is not about the Chinese people I have been I served as a naval officer over in China in the western Pacific in the 7th fleet on a destroyer in the late set of mid 70s I think 76 77 s first time I went to China I've been involved in China virtually all my life I've owned businesses over there I've lived in Shanghai for a while in the French Concession I have a great not just admiration but a deep love for the Chinese people in fact they have a saying over there called old hundred which is basically the common man because the hundred last surnames in China so old hundred names essentially the deplorable z-- right and those in the old hundred names is a sense of common decency the grit the determination what they've been through as a people is nothing short of heroic what we have the problem we have is we have a totalitarian regime of the Chinese Communist Party and quite frankly the leadership the the elite leadership of the Chinese counties party that are really in business with the party at Davos which is no kind of scientific engineering managerial financial cultural elite that I say kind of emanates from the from the World Economic Forum in Davos but really is in London in New York Washington DC Silicon Valley right etc and do you think do you think the way that they've ingratiate themselves into let's say the Davos man as is commonly referred to the way that they've gotten there is is it through economic coercion is that is it through investing in our universities our think tanks our lobbyists as you said and our corporations and even the people that are US citizens looking to make profits in China is that how they control that narrative and let's go let's go back let's go what did they get let's go back to in one week in January 2017 we had to I think seminal speeches okay we had the Davos speech expression she okay which was a the high Hosanna to globalism yeah and it was to me repulsive repulsive how the mainstream media and Davos man just sat there and and bought it all and said what a great leader what a great humanitarian what he's what he's going to lead us through about client you know on the world's environment what he's going to do you know for globalization or for the economy and then you saw Donald Trump's you know inaugural address was I think three days later and what she said hey we're getting back to the nation-state and America is going to start to focus on our sovereignty and other nations to start thinking about their sovereignty but this globalization of what's coming out of Davos it's stripped our sovereignty from us and we're gonna re assert that and two years later which happened this week was Mike Pence's speech about the new strategy of the United States Thursday night really really been has really been going along for quite a while which is now kind of engaging China right an engagement with China but not like Henry Kissinger and not like this acidities trap crowd and I know you did this seminal interview with Graham Allison but not what those guys want which is the kind of us stumble along and play along with China this is a you know this is a direct confrontation with China to say we're not going to take it anymore you've been an economic war with us and we're going to reassert us your question about how the aggression and stuff that the guys wrote the biggest checks in wrote checks to the universities they wrote checks they've essentially bought off the City of London in Wall Street and the corporations you know I say this in a sense of kind of anger the the great investment banks in London and in in New York became the Investor Relations Department for this regime okay in the minister suit of profit and about Tober sort of profits and corporations became their lobbyists when leha's deputy came to the United States about four weeks ago when they had this kind of last round are trying to put something together than a trade deal there wasn't much going on but he sent his deputy in a small contingent to see Stephen douche and the guys at Treasury they went to the very first stop they made was to the day before they went to Treasury they stopped and they had a meeting with I think it was fifteen or twenty a large corporations the heads of governor fairs and I think the president's not the CEOs because the guy wasn't high enough and he basically said hey boys you have a problem right and you have to figure out how to help us fix it okay another thing they had you know wine cui Shan announced this kind of financial advisory panel being on their back foot by the Trump strategy they kind of said hey we need a financial advisory panel to help us understand what the United States wants once the United States needs and it was named you know Paulson and Schwartzman and all you know all these characters and it's interesting when they need somebody to kind of come over and you know help inter mediate with the United States they go to the same guys have been profiting on this my understanding is that people came back and said hey the ung you know the UN General Assembly is happening its Opera season and in New York my schedules full and and Wayne qui Shan said hey boys I don't think you're listening we're having a meeting I want everybody show up this is this is General Quarters and so know I think that I I think when we look back on this it's going to be a people are gonna be absolutely stunned when they see how the elites right of the Western democracies and the United States went along with China and exacerbated exacerbated a situation when it was quite evident they were economic war with us yeah going back on this one issue the the way that the influence is being pushed through the corporations you know we know we at our firm know that there are several there's a couple of handfuls of corporations that each have more than a billion dollars in capital that they're trying to get back from China and they've been unable to get a dime out of China since November of 2016 when China closes capital account completely when you were in the administration did you interface with any of these companies that were going through a lot of part in the pond red tape trying to get their money out as if you listened the very first thing they come appealed yeah I think this would be a big shocker to people remember when Trump wanted a complete you know upset that nobody saw coming and particularly you have this post-war liberal democratic rules-based order okay the Chinese have done nothing but gamed the system from day one on every set of rules the rules are what they determine they are yeah okay and nobody calls them on it because everybody thinks they're too weak and so in the corporation's I think I think intermissions afraid to call them on it absolutely because they know if they say that we can't get our money out they shall be shut down shut there's a quid pro quo shut down shut down there's absolutely fear I look at when they came back on this whole by the way on the entire situation with the tariffs and tariffs is just not about tariffs in about not about protectionism that's why Trump's done it at such a scale remember before Trump got hear people talking about 25 30 billion dollars of tariffs is like oh my god that's so huge Trump's program is a half a trillion dollars in tariffs right to tariff goods because he knows that Chinese can't respond correct and here's why they can't respond people the United States have to understand one thing the Chinese look at us as a tributary state that let me explain that China's been around for 4,000 years right they've had good runs and they've had bad runs okay but one thing they know and the reason they're still organized as a nation over four thousand years right they know how to handle allies I know how to handle bad guys okay now what they've done is they got this system called barbarian management and they know how to manage barbarians the way they manage the barbarians is they take the leaders of the barbarians and they give them a taste of the good life and you're going to be you're going to be something special you're going to get a special deal now what happens back into the tributary state is whatever happens that's your problem okay so you remember in the United States what they have done for 25 and 30 years is played us as a barbarian state barbarian management okay they incentivize our elites and our elites de-industrialized particularly the Upper Midwest of this country it's the reason Donald Trump's president the audience should understand one thing is important is that you know JD Vance the great guy from Yale who wrote hillbilly allergies is the best sociological study of the Trump voter and it was JD Vance who told me says hey those studies that come at at MIT and Harvard show that there's a direct correlation between the factories of left for China the jobs are left with them in the opioid crisis because this is not an attack logic it's not about tariffs what this is about is human dignity and self-worth those factories went Wall Street made the money the corporation's benefit from it for lower cost and devil catch the hindmost on the workers and so this is what Trump is kind of totally reversed now what China seizes has is we're a tributary state we send them natural resources soy beans beef cattle Boeing Airlines and Apple products excuse me we don't send Boeing Airlines and Apple products you know why because they forced Boeing to do a joint venture and they forced Apple to make it products over there so all we we're Jamestown to their Great Britain okay that's why the tariffs at the scale that Trump put them up at they can't respond to her okay what's interesting is those it let's assume we put 25 percent on five hundred twenty billion we're literally talking about a little over a hundred billion dollars yes I know that's a lot of money yes but our economy's 19 trillion yes it's still not that functionally meaningful to us in my opinion yes but I do think it's a leveling of a field to your point it's converging they've been fighting a trade war with us since 2001 and we just haven't fought back okay the average compounded growth of the United States of America from 1946 the end of World War two to 2000 was 3.5% okay it's the reason we became a superpower that economic engine that was unlocked and grew every year three and a half percent through good times and bad on average yeah since China joined the World Trade Organization sure that's when they joined they got most favored nation the growth of the United States is 1.9 percent ok 1.9 percent and there's a lot of factors that but the central beating heart of it is China that's what because we D industrialized which Center we sent our manufacturing over there yes the tariffs in and of themselves on a nominal number an absolute number are not huge but we look at the convergence of everything what Trump has done is said hey we're at economic war and we're going to hit back over there we're gonna hit back with a 301 to stop the force technology transfers we're gonna put these tariffs into the scale they've never seen before we're gonna have the ability if we so desire to liquidate companies like ZTE to basically cut them off from their component parts in the West they'll be out of business in 90 days also the new things about investments about these limitation and investments at the surface if he is reformed that people are talking about you bring all forces of government together on that and the stopping of intellectual property you have something what Trump is done and this is why NAFTA was so important you know people mocked and ridiculed Trump there's a book out called fear that Gary Cohen the president Goldman Sachs you know great goldman sachs and i used to work there he takes he takes the documents off the president's desk the book opens where he's taken the NAFTA deal right early on in the deal on Korea he actually takes him off the desk because in his judgment right the president wasn't smart enough to understand what he was doing well here's what Trump's done the new NAFTA deal that he's he's created is basically setting up a geostrategic manufacturing base to counter East Asia okay and Japan is is very quickly going to be part of that a bilateral deal not some TPP deal or just one among many a direct bilateral deal with Japan as a partner we've got one with Korea we're updating and then the EU Younker has already told Trump his all right already indicated that they're gonna be a part of this - what Donald Trump has done in less than two years against the second law of thermodynamics right the immutable law of the rise of China right what he's done is reorient the entire world's supply chain away from China and this is going to have economic growth opportunities that are going to be incredible and he's done that kind of single-handedly against against the fighting of the the corporatist Lobby the fighting of the Wall Street Investor Relations Department etc so that's what I think it's really heroic it it's that policy is one that it's interesting at the timing if you look at just the let's say the the economic laws of China were already slowing down before we decided to fight back it just so happens to be that this pushback from a tariff or whether the most elegant idea was the board adjustable tax which is immediately killed by you and I both know I love I love them that was perfect in my opinion now by the way John I I am I am a huge believer that and I'm you know Paul Ryan I've had our differences when I first he first walked me through that I said that's the solution exactly that's a solution it's kind of a gala terian way of going at it I think I think and we all know I get crushed yeah I think that that is something that should be brought back up in and very quickly in future years we could do away with tariffs if we imposed a border decibel well Bob let's talk about turf that's like a president Trump remember at the g7 when he was lectured by his betters Merkel and McCrone on the first day you know about this whole thing about tariffs right he came back the next day for breakfast and what Trump you know what Trump told told the in the g7 he said okay I thought about it last night how about this no tariffs absolutely no tariffs but no subsidies yeah people have to realize like the White House put out this document I think it's over two months ago now the 50 things that China is doing in its economic war with us it's kind of its kind of what what do you know what the United State once trying to stop that's the deal you stop that we're all good when you look at that it's not just a tariffs it's it's it's the investment in state-owned industries remember they have baby land free electricity land what they look at what they've done is steel aluminum throughout the world look at you have a ship building you can go every heavy industry they've got it they've got it that Western Europe and they've got at the United States and they continue to do that purposefully purposely and they're also by the way there's ZTE showed you this they have to create a thing as some number of 11 million jobs a year they're under enormous internal economic pressure to create those jobs they can't afford to have 150,000 high value-added jobs as et just go away same thing with a steel they're kind of caught on the wheel now I mean there's a first amenity right because they've got to keep these guys working so I think that that's why the Chinese model and all this happy talk that comes from the West yeah about the Chinese model when you really look at it I know you are one of the world's handful of experts I think it looked at it it looks at the numbers as they really are and not what people hope they are and not how they're spun by China because every number comes out of China to me has to be questioned verified you know trust but verify has to be questioned verified and then verified again you've got to get a bell suspenders and that's why I think we're we may be hurdling to another financial crisis driven by this financial model of China that can't withstand you know can't stand up on its own right well the good news about that is if we're right about China we're right about there bill incredible bill the reckless build of credit coupled with the fact their economy slowing down coupled with the size of their banking system their GDP if we're right about all those things the good news is their banks aren't inextricably linked ours the way that ours were to Europe and Asia is back during the our financial press they're not they're not but you use the word they're reckless and I think that this is you know this is what upsets me about the lack of accountability and responsibility by the world's elites we just went through the worst financial crisis in history not one CEO went to jail and not anybody significantly gave up any equity okay what they did is basically inflate no people got to remember on September 18th of 2008 when Bernanke and Paulson walked into the Oval Office with Bush and he sent him up to Capitol Hill the balance sheet of the Federal Reserve was 880 billion dollars on the day that Donald Trump took the oath of office on January 20th the 2017 it was four point five trillion dollars all we did in in in the Bank of England ECB Bank of Japan did the same thing and what you do see pvo said what they did is to save the elites was to turn on the spigot of liquidity so if you owned assets realize if you own real estate you don't stock shown intellectual property you've had the greatest ten-year run in history if you're a working-class Schmendrick you had your wages of flat the whole burden of it this is what's unfair and this is where the anger that's driving the populist movement the whole burden comes down on the little guy to finance these deficits with his taxes that's right and then his kids get sent everywhere in the world to defend this that's what's got to stop you use a word reckless it is reckless disregard what the elites have done this time because all they've done Chinese banks look the American banking system has 19 trillion dollars of assets on it and I would respectfully submit and you're ten times smarter than me on this I would respectfully submit that all of those assets are not good okay maybe let's say ten percent or more could be written off today that's the American banking system the Chinese banking says that things has 49 trillion dollars of assets correct me if I'm wrong I think 45 trade have been put on the books since 2008 this is completely reckless now thank god they're not interconnected through the Swift system with the rest of the banks or through derivatives derivatives and by the way the reason is and this is another tell because none of the investment banks or none of the guys want to say whoa whoa whoa whoa whoa we can't hook up with China right because they all stop themselves from doing it they're all limited their exposure to understand when it implodes they don't wanna be they don't be taken down in the first couple of minutes that being said those banks are going to implode nobody can put those kind of assets on okay and have and have a great banking system here this is a total and complete sham and in the Economist and the Financial Times of London all the elites all the conference's they have you know you had Richard Haass on this morning or Morning Joe Richard Haass from the council foreign relation and all he's doing is beating up Mike Pence and Donald Trump from Pence is speechless now you know he's saying you say hey all my Chinese all my Chinese colleagues all my buddies in China they're telling me they don't know what the United States wants you know they kept you know they came over here they they want a deal and they want to be our partner but they we keep moving the goalposts that is that is reckless for him to say that he fully understands what the issues are okay and he sits there on a show a general news show in the morning that you know basic voters watch it starts putting this stuff into the mind is unacceptable I gotta tell you Kyle that's what I think what you're doing here what you're doing with your work and other things there are a number of people like yourself they're sitting there going this can't continue and people are going to be held accountable with this if the elites think they're gonna skip on this one it's not going to happen the reason Donald Trump's president the reason you're seeing these populist revolts whether it's in Italy Germany France throughout the world in Brazil this weekend okay in Argentina in Pakistan is the reason is the little guy is fed up with a group of elites that know better right into into and to take care of themselves they will play ball with anybody you're right and when you talk about that Chinese banking system let's assume that it has to restructure what they'll do they're very smart people this hold as you see and say let's talk about this here's how smart they are when we went over with Trump's visit remember they didn't make any other changes they weren't gonna listen on anything else of that except they would open up the finance sector so it says the spider to the fly exactly that they've already wrecked their financial system you can invest now you can invest it why environment is the world not see this diva the world absolutely sees this you're starting to see it hang on hang on oh you're just starting no no no no cow cow cow you you you are much too kind you're a good man okay you've got to call it like it is it's okay they know exact you're telling me the guys in the Wall Street Journal Financial Times of London The Economist these smart guys these think tanks don't know exactly what's going on usually they say like Megan look at the balance sheet of these bang to say hey guess what I think we have a ticking time bomb right but you know they say this but it's China that's what I hear all the time that's why I agree with you but it's China so we're gonna keep writing what we write yeah yeah that's got to stop China must be okay we cut a deal with them the late 90s remember you had a spectrum back then of the China cheerleaders the rational accommodationist in the Hawks okay so let's talk about this back in 99 that was the pitch from the appeasers the people have to understand as both the local parties this is not about ideology there's all Democrats and Republicans okay when they're talking about China they're just trying to figure out how to get more money in their own pockets so the cheerleader said exactly hey it's China once you get into the most favored nations once we get them into the WTO they're going to turn out to be liberal capitalist they're gonna you know they're gonna they're gonna vote economy they're gonna let us invest in everything middle class they're gonna be it's gonna create a rule of law real long all the law it's gonna be it's gonna be nirvana and they're gonna be okay so we know 17 years later guess what they're a totalitarian regime mercantilist regime they've got a system that works with them for the for the for the it for the elite for their regime and it works well now you have two sets of folks the rational company the cheerleaders are gone nobody's at earlier you have rational accommodationist and you have Hawks rational accommodation has got a new name it's the Citadis trap it's your buddy Graham Allison and Henry Kissinger and here's a great concept that guy okay the great concept is America's attic lining power China is a rising power like Sparta was a Athens was a declining power as far as a rising power and what you have to figure out to avoid a global conflict which is like 16 times in world history this has happened and 12 times they just weren't wise enough to take it what has to happen is the declining power can figure out how to nudge nudge the rising power could kind of get into their system now you're always be the junior partner but you'll make the big guy kind of work with you and everything will be happy this is the exact same nonsense from the exact same people from Allison Graham and from Henry Kissinger that they spun on Nixon in the late 60s about Russia let's go back in time yeah the same exact pitch Russia's a rising power America's a declining power and what we have to do we need date on we name rapprochement we need to let them have their sphere of influence it was then and it's now Ronald Reagan came in and said hey you know what help me is their economy and they said Russia's economy is the size of California yeah he says what a people fear him the very first thing that Andy marshaled the net assessment group in the Pentagon and Bill case in CIA did was do a complete analysis of the Russian economy and they found out it was only half as big oops I have a miss 50% bigger and they were desperately short guys that's really short of dollars this is the whole thing that always actually were China because they did the exact into China they put it into military spending that was not productive so here we go with the exact same set of guys and what they tell us 40 50 years later hey America's are the cleaning power China is a rising power and this and look at its exact same thing they have an economy with no dollars here's a point I make told how about this how about we stop being a declining power that is not a law of physics a process that manages us to decline okay is not a process I accept I am looking for a leader to step up and make America great again okay and that's Trump's basic pitch and guess what in two years he proves the Chinese are a paper tiger when you think about again their grand strategy are pushed back and where we are in in the globe today how do you think what do you think China's next step is if if you were if you were predicting what their next step would be given our assertiveness that would that we've stepped forward on the economic call it side of the other coin and pushed pushed in some tariffs and are starting to reassert ourselves what do you think they're going to do number one they won't reverse textbook they want regime change in United States they believe they have a eighty percent chance of getting Trump getting winning the house of you know doing whatever they need to do with psychological warfare with money with whatever they have to do to basically fort Trump and lose the House of Representatives Cement peach this year and 100 percent probability they'll beat him at 2020 number one is the of Donald J Trump as president I states okay because they say that is the rail head of everything has happened to us badly and we've got to get you know we've got to get a globalist in there their game their game just to wait him out not just where you might I think take active measures now yes but Penn said Penn said yesterday and Axios and other people reported this classified information this shows that this shows that the Chinese involvement in real meddling this is not some Russia guys on Facebook this is the real deal because this is all the chips in the middle of the table that's number one number two I think what you're seeing the Italian said today that that age China's gonna be our big buddy I think you're gonna see a double and triple down on one belt one Road I think you see a double and triple down on made in China 2025 I think you'll see the East India project in sub-saharan Africa at the Caribbean in Venezuela and Latin America I think they're gonna double and triple down they got a lot of RMB to spend right and if a guy can take RMB no one's gonna take well this is going to be that this is going to be the great question we're gonna have in front of us because they're in the Gulf right now there's all over the UAE they're all over Saudi Arabia they're all over Qatar they're all over every resource of area in the world from Argentina to sub-saharan Africa to to South South South Africa and they're gonna try to see it you play it then number three because remember in the great textbook that they put out and basically printed in English in the late 90s written by these two brilliant Colonels in the Chinese War College called unconventional warfare unconventional warfare Admiral ooh yeah yeah it's a it's a book that should be written as should be read by everybody is that the because it laid out China strategy they said there's three types of warfare there's information warfare there's economic warfare and this kinetic or kind of guns up warfare and what we want to do is avoid kinetic because the one thing America can do is kick your ass right so we want to avoid that okay and so let's let's focus on information and economic warfare and they from the tables I mean it's textbook you go back and read that they've done exactly what they they said they were going to do I think and I believe that given the fact that Trump is now converging all forces of government power onto the economic warfare and they are taken back and the regime is under huge pressure because I believe the Deng Xiaoping faction and others even at the highest level who believe in collective leadership have said hey what we have here is a cult of personality you mean the ones that have him in jail they're killed once I have them in jail to kill yet have sat there go Deng believed in working with the West yeah Deng believed in reform Deng believed in opening up but dang believed in being a good partner and particularly keep your lights down don't get up to somebody's grill that what what they see with with she is a return to the cult of personality of mouse and he's under tremendous pressure internally I believe I said on my radio show and everybody quotes me on this back in I think it was 2014-2015 that in five years we'll be in a shooting war in the South China Sea as a 22 year old naval officer I was on patrol in the South China Sea on an American destroyer okay and I said where in the hell am I you know what is this place because every tanker in the world coming through the Straits of Malacca yeah from the Persian Gulf you got every huge tank who get every boxcar is it's it's a superhighway ten percent of China's energy needs come through there's 40 I think it's one third of the world's tres five tree today it is my point this is a super hot one people say the South China Sea here is you got understand it's a superhighway of Commerce the biggest ships in the world 24/7 365 days a year what China did and they came to the Rose Garden in 2015 and look the American people in the American president lie and lie to him they built essentially seven or eight stationary aircraft carriers they call them resources these are stationary February's mr. Suri Scarborough reef all these these wreaths our reefs are basically aircraft carriers and what they've done is they put fire control radar search radars they've got combat planes on oh and me these things 10,000 foot runways it said about it so the United States we why did Obama so China said to us specifically when Obama was president we will not militarize our islands in the South China Sea will not go to the Spratlys everything we're building is just for research purposes why how do we how do we engage China now that we see that every single one of these islands whether it's fiery cross or mischief or the others have 10,000 foot runways and I missile batteries on them and all of the weapons that they said they never put there and now they're landing nuclear bombers there how do we engage them do we engage them over this or do we just when I when I get into the White House's chief strategist okay with Mike Flynn we first got there on the National Security Council in the transition I said the three things you got to do is is is is devolve fighting of capability to the combatant commanders get the White House was running the wars against Isis so give it to Harry Harris yeah yeah one note in this regard give it to the guys in sin comm and LEM take on Isis got to devolve come you know the power to fight wars the ability fight wars back to you combatant commanders number two we got to figure out and this National Security Council thing of the Obama appointees how we're going to get our own people in there over time number three I said we have to go back and get every document every document related related to Obama's pivot to Asia I said I want to see exactly what they looked at and people should know and in the White House I worked seven days a week 18 to 20 hours a day okay fifty percent of my time was on the pivot to Asia why Obama did it what we were going to do to count here it was Kurt Campbell's in our chamber here and here's what I found I thought it'd be a whole room full of documents it was pretty thin and what I found is that the United States itself was not really engaged institutionally against China you had some great people but there wasn't all forces that kind of thought through hate an economic plan or a war plan against China to engage in this economic war in fact what you saw the entire pivot to Asia became I think putting a marine Brigade in Darwin Australia it was basically the issue so Harry Harris was a guy every told me Harry Harris is the man so I got Harry Harris back everyone Harris back I spent you know a lot of time with him getting schooled on exactly what's going on and the one thing I found that was shocking is that the South China Sea when I was a young naval officer we went through the South China Sea guns up radars up everything moving it's called free navigation we did in international borders what we want to do when we want to do it because we're the United States Navy okay we keep the sea lanes free what I found out now is they got these reeds everything like that China we only go through and what's called safe navigation go through with your radars off no fire control solutions like a good little boy just kind of go and you're basically answering their permission ago the South Village I didn't I was on the South they consider they consider when they lost the international court china considers the South China Sea to be an internal seat of China I know they timed out at lunch and now I've got a line there's a joke they think it's what they think it's a territorial seat I know they are not prepared the first thing they'll tell you that the territorial integrity and the sovereignty of China is not to be questioned not to be questioned and they consider that non dot line you know the more people put it into documents the more people put it on TV shows the more people that reaffirm their that's reality yeah you ask me what's going to happen the South China Sea I said on my radio show of five years ago over in a shooting war the South China Sea in the situation in Qatar in the Persian Gulf in the South China Sea are the two greatest hotspots in the world for a global conflict to start okay not Korea Korea is a vassal state of China the whole Korean thing is nothing but a Chinese drama okay okay and president Trump's do an amazing job on the South China Sea is a flashpoint and you saw the other night as a former naval of sometimes those two ships what you had an American the USS 15 feet apart the USS Decatur was on patrol yeah and you basically had a Chinese destroyed come and play chicken with it fifty feet apart if those two ships had hit what would happen to it first off two or three hundred sailors would have died okay absolutely if those two ships had hit at the speeds that they were going the relative speeds were going we would have had a catastrophe okay now I don't know what could have happened to the weapons and what could happen to the fuel but I'm telling you at the speeds what the Chinese did was reckless and that was a challenge to us remember what the Decatur did was go 12 miles 12 miles to one of these wreaths okay now what the Chinese say is within 15 miles is their territorial territorial water they said it was a violation of their sovereign territory for the United States Navy to come 12 miles off a wreath that they built into the South China Sea my recommendation as I think the president ice States Donald J Trump who Tamizh been very even-handed which and really you know try to build a relationship I think you ought to give the Chinese 72 hours 72 hours to take every radar every every offensive thing on military all the Jets everything either runways everything off the islands get 72 hours take it all off and on the 72nd hour in one minute the United States Navy's gonna go in there take it off form and then I think they ought to take those reeds and they are to dismount them and turn them back into international waters that what that's going to that is good they say the United States is provocative by putting the United States Navy back into the South China Sea to keep the sea lanes open I happen to believe where this relationship is going in the lack of a real response the Chinese gonna have that they're gonna try to do something provocative in the South China Sea the China initiate a response and I think the president would be proactive on this I think you got to tell me get 72 hours if you don't take it off we're gonna take it off for you and then chatting in dare them to stop the United States Navy word going to do it wait you're saying go go to a kinetic conflict in 72 hours and I didn't say go to a tonight contract what I said what I said was if we go try to take this off they're not and they're not gonna let them well the international courts ruled that there was inappropriate for him to be there why don't we enforce that you know the party of dad was when she came when she came in and gave that great speech at tablished they all they all jumped up about they failed to say dude you just mentioned they they looked the people of the United States in the eye and lied to them from the Rose Garden in 2015 with the president states right next to him okay and nobody called him on it and never call him on and then you saw and then you saw when the international courts came and said hey this is totally unacceptable there's no argument for it it's got to be undone they just sat that what they've sat there and said hey these are our turn there's our territorial saying I realize people saying Bannen what kind of crazy whack job are you it's somewhere and we don't even know where it is in the South China Sea we're going to go to war people have to understand the global economy and I'm a nationalist okay but the the health of the American economy is based on trade you know you know populist and economic Nationals are not anti trade they're anti this radical concept of free trade when you're trading with a totalitarian mercantilist society right we want what Trump wants and what he said from day one is fair trade and reciprocity okay reciprocity and I think now we're gonna get down to it with China you know this thing is not gonna this thing is is going to China is going to have to understand that Donald Trump is never going to back down on this yeah okay he's a fair man okay he's a decent man he's tried to work with them but the days the United States being pushed around with this or over know if let me ask you a provocative question then if we were to go do give many more provocative so we're going to war in the South trying to say it's just the derivative of that we're just going to evolve along I'm actually just going the other it's it's equally as provocative what if we were to just take our seven fleet and go home here's the things that people have to remember things very important for people to remember that the United States is a Pacific Power yeah I mean the whole development this country the Transcontinental Railroad the whole West Coast the West Coast we are inextricably linked to the health of of of Asia's economy well article 5 protections of Japan would be a real issue but I know I say that because if we were to have to go to let's say we were to get to the point where we either had to go to war or had to come home coming home is not as not an option not an option not an option the world the world would be in incredibly and would get to be an incredibly dark and dangerous place you know very you could have her you could have a you know you could have a appeasement there you can have a Munich right you could have people say hey let's just pull out they built the islands they're rising naval power it's really we don't we don't want to listen one of the cores about Trump's it is non-interventionist however what America first stands for national security is where it's in the vital national security interest of the United States it will be in the vital national security interests of our local partners that's what America first means Trump is not going around the world looking for fights he's trying to calm things down with Russia he's trying to calm things down in Syria he's trying to find a solution in Afghanistan he's trying to find a solution in Korea he's trying to find a solution of Venezuela and you're your viewers should understand Donald Trump didn't create any of this this is Richard Haass and all the geniuses okay of the of the party at Davos they're the ones that dump Korea there's the ones that dumped Afghanistan in Venezuela and China on his lap what Trump is saying is that America first we're our allies of being their vital national security interests either and you go around and talk to Singapore and Thailand and Indonesia and Australia and ask them hey there's an American naval presence in this neighborhood a good thing or a bad thing and they will tell you no it's a vital thing we need America we need America here because if we lose the South China Sea we will lose any type of commerce trying to control the whole place and the Chinese understand it that's where they're trying to push us out and they're starting to already have the psychological warfare of exactly that hey it's 12,000 miles away it's really Asia what are we involved here for this is another debacle you're already hearing this is another debacle like Iraq in Afghanistan the United States is - look I'm the biggest I'm the biggest proponent of America first South China Sea in the gauge Minh twith China is absolutely vital interesting okay let's go to one other what could I have two more questions one is that why why is the u.s. not had a people management process in the US and what I mean by that is you know you read the DI UX report that I call it Declassified or actually never was classified Defense Department report on the infiltration of China into our research universities in our lab and the weapons lives weapons labs funded by DARPA the Air Force and why have why haven't we put into place a proper people management product look Russ I want you to go back because I don't think people understand these reports these reports are essentially declassified reports that showed that the 300,000 students are here on student visas right and the 10,000 contractors that we have in the weapons labs that you know up to I think it's 2/3 could be intelligence assets right right and in some percentage our intelligence officers are interest and they're working in our labs they're working our labs this is on weapons this technology is funded by our government this is political correctness and greed and avarice writ large how did contractors and let's call him at Booz Allen and McKidd all these contractors how do these contractors on these big government programs get so many Chinese nationals working into our weapons labs our weapons labs are at the cutting edge of national security how did it happen and so this has got to be done right away I don't know why it's been a huge I think bone of contention inside the administration the political correctness of it all Steve emailed the Financial Times of London leaked the other day that my colleague Steven Miller he's a terrific young man actually had the plan in place to get all 300,000 Chinese students out of the country right way to cut the visas off right away not that we're going to execute on it but it was even in the thinking and obviously it got leaked in the in The Times it goes around the State Department cetera right you might look at all the appeasers I am so glad I take great pride that someone like Susan Thornton is now you know owns a farm up in Maine because she was part of this kind of you know rational accommodationist this kind of softness in in the America in the Defense Department in the in the State Department in our intelligence services that basically went along with what try and want to do and look the other way but how do we so I'm not a proponent of throwing all their 349 thousand students here and I know you know I'm not an opponent here's where I am a proponent of if their intelligence assets I want to know that okay what Miller's program was and said hey if we can prove this they got to go home okay but and I'm not even focused directly on China or India or anywhere specifically but why can't we have a policy in with the sovereignty and national security of our own country why can't we say if it's a weapons program you just need to be an American citizen you should maybe should be a natural-born AmeriCorps answering basic fundamental questions that that actually I think that I think actually that's on the book and they get waivers I actually think that I believe that technically when you look in the details that's actually the fact there's kind of waivers given of this because people look the other way okay and so one more one more issue is the Confucius Institutes yes the Confucius attitudes are on of our colleges they're funded directly by the PLA yeah why do I colleges allow some officious instance it would be on VA would be like thee it would be like in China having something funded by the CIA that was directly half of Church Catholic Church we're not the Catholic Church the Catholic Church is kind of deal that let's try no no but there's a huge issue Pope Francis just cut a deal that lets the Atheist that run the the regime in Beijing actually pick our Bishop so the Catholic Church would not be a good idea since they've already Cal toad it would be equivalent of having CIA ad and I have a Student Center that promoted CIA culture right to in China in China yeah okay that ain't happening yeah okay you know what's not happening cuz the Chinese say hey that that's kind of that's not gonna that's not gonna happen because that may affect our sovereignty well how do so give me a better practical you gotta unwind them how I think you just sit there you got to shut them down okay right I think I don't think it's any way I do what I did I think hey this whole thing about you guys people are saying oh well they're not that bad that pushing culture and the help with students learn Mandarin hey there for dance by the PLA they have server rooms in the Confucius Institutes what that F's going oh this is gonna be a shock to the American people working people here's where the American people don't know this because nobody reports it has 60 minutes ever gone had done a Confucius Institute they should yeah but Mike they should have done it 20 years ago yeah the reason this is coming up is that people now fed up with this and that's why in this Trump movement it was Donald Trump and when he came to the government that changed it that now other people and other voices are coming up and you're seeing a real pushback but to allow this to happen at our universities I don't think that looks let's be brutally frank why is it always Hudson Institute that's having miles Kwok or last night Mike Pence you know dr. Pillsbury's there why is it always Hudson Institute why is it not the other Institute's having having you know having these kind of fun because China has has paid many of them the last thing that maybe our clothes on is when Li her that the economic strategist for President Xi yeah and I've had an opportunity to know him and build a little bit of relationship he's a very brilliant guy when he came to do the major negotiation that didn't work out I think it was in June last year he came in the very first day he didn't go to the White House at first he didn't go to Treasury first he shows up in the very first day he spent on Capitol Hill with that with the quote/unquote free traders in the Republican Party remember president Trump's the greatest blowback he got on this was the Republicans yeah it was a Republicans who went crazy all you got to do free trade you got to do free trade all the nomenclature that we've been using in regards to China it's always been the dismissive oh that's just China okay and so all the nomenclatures just been happy talk and the words don't really mean what they are and it's people like yourself as people like miles Kwok is people like dr. Pillsbury that are now starting to question this and I think you see this whole thing that from quote-unquote engagement to conference what they're pinning us on now the new thing is that engagement versus confrontation and we're being painted as the war party right we're the crazy guys want to go to war alright well we want to stop is an economic war that's been against the United States and if you look at the group that's in the you know engagement process all they've been in is being tapped along by China and these strategic economic dialogues that didn't go anywhere for 25 or 30 years and put us into the place where we were dee industrialize by a predatory by a predatory power and then China's predatory capitalism is what they stand on it so I think I couldn't be prouder that President Trump and I think that speech for people have not seen that speech that speech is gonna go down in history as an inflection point because Mike Pence yesterday the vice president I states essentially threw down and said hey no more games we understand what you're doing we understand what you're up to we understand you have every force of you have a full force of government against us and we're gonna counter that and we're gonna win I appreciate that and you know this goes back to when you pull into the Commerce Department right above the entryway were you drive through if you've seen this there's a quote from Benjamin Franklin it says Commerce must be fair and equitable and I think that's where we need to be I don't think we should be overly punitive I don't think we should be combative I think we should say we just need a fair shake at things and what you're saying is there had just we haven't had one and that's something we believe to and the good news is as I think in the last six months to a year culminating with Pence's speech a couple of days there actually a day ago is finally the narratives changing despite all of the efforts from from those in China so thanks for being here today thanks for sharing this with us it was really really undisclosed location I mean we're here with miles beyond the school you know we got a key suppose live-streaming it's constant so I don't know who's more controversial you or miles but uh we'll see soon miles is a whole different league I'm junior varsity compared to that thank you thanks for coming thanks for having me

Channel: Real Vision Finance

Views: 1,154,650

Rating: 4.512167 out of 5

Keywords: Finance, Markets, Economy, Stock Market, Investing, Trading, Financial Literacy, Recession, Interview, Strategy, Facts, Data, Fraud, Short Seller, Real Vision, Equities, steve bannon, kyle bass, china, white house, trade war, us china trade war, china us, geopolitics, china news, personal finance, donald trump, politics, recession 2019, trump, breaking news, news, raoul pal, stocks, hong kong

Id: qH5QzuzD01A

Length: 54min 1sec (3241 seconds)

Published: Wed Aug 21 2019

Reddit Comments

[u/drm_wvr]

No white supremacists

[u/notmefr]

He is a very very smart guy. trusting him is like suicide.

Also, he is not shy of his supremacist tendencies.

[u/deficient_hominid]

A strategist who digests Dharma into Western Catholic framework, worth a listen to better understand certain geopolitics.

Edit: the Left-Right paradigm does not apply to dharma, the Western RW/LW-ers are not friends, should only be temporary allies when it suits Bharat's interests. Eg. Trump or Macron.

[u/aakubhai]

he is white super mist and one of the worst advice to trump administration. i"ve read some parts of his book,he said some of the weirdest and worst things about Indians.

he lost his job and power in republican party,no need to take this shit head seriously.

[u/strhope]

Imagine Indians listening to a White supremacist.

[u/Critical_Finance]

This man has played a great role in making Trump the president

[u/frieddumplings]

tldw?