1 00:00:00,080 --> 00:00:02,400 Speaker 1: Good morning from eastern South Dakota, where I'm visiting the 2 00:00:02,480 --> 00:00:06,400 Speaker 1: Rules of Engagement girls, Avery and Julia, their two sisters 3 00:00:06,480 --> 00:00:09,760 Speaker 1: and their brother. Why were there so many people protesting 4 00:00:10,000 --> 00:00:13,039 Speaker 1: Elvis this past weekend? We went to visit the King 5 00:00:13,080 --> 00:00:15,680 Speaker 1: in June and they said he died like forty years ago. 6 00:00:16,160 --> 00:00:18,919 Speaker 1: Go figure, everyone, have a great day. 7 00:00:21,360 --> 00:00:26,000 Speaker 2: You have to admit Dragon got me. That was fairly 8 00:00:26,040 --> 00:00:27,520 Speaker 2: cleve got me. Gave me a chuckle. 9 00:00:27,640 --> 00:00:30,680 Speaker 3: Yeah, I gave me a chuckle too, So let's go 10 00:00:31,160 --> 00:00:35,080 Speaker 3: that mean to the Chinese Communist Party, one of my 11 00:00:35,120 --> 00:00:40,959 Speaker 3: favorite organizations, is currently holding its fourth Plenary Session of 12 00:00:41,000 --> 00:00:47,519 Speaker 3: the twentieth Central Committee in Beijing. It started today technically 13 00:00:47,640 --> 00:00:51,920 Speaker 3: yesterday for them, it's October twentieth through October twenty third. 14 00:00:52,000 --> 00:00:54,920 Speaker 3: It's a closed door meeting. There'll be about three hundred 15 00:00:54,920 --> 00:00:58,720 Speaker 3: and seventy senior officials and they're focused on finalizing China's 16 00:00:58,800 --> 00:01:04,679 Speaker 3: fifteenth five year plan for twenty twenty six through twenty thirty, 17 00:01:05,840 --> 00:01:08,240 Speaker 3: and they're going through a bunch of realigning of key 18 00:01:08,319 --> 00:01:15,280 Speaker 3: leadership posts within the party and the military hierarchy. The 19 00:01:15,360 --> 00:01:19,840 Speaker 3: plan of this year is especially notable because there are 20 00:01:19,840 --> 00:01:24,000 Speaker 3: a lot of INSI I mean series internal purges that 21 00:01:24,200 --> 00:01:29,720 Speaker 3: are taking place. I've heard Gordon g Chang, someone I 22 00:01:29,720 --> 00:01:33,520 Speaker 3: listened to on podcasts quite a bit, Gordon she g Kang. 23 00:01:33,800 --> 00:01:40,040 Speaker 3: Gordon g Chang is a it is a Sino expert 24 00:01:41,080 --> 00:01:44,520 Speaker 3: who understands an awful lot about how the Chinese Communist 25 00:01:44,560 --> 00:01:50,160 Speaker 3: Party works. And there has been some speculation that Hugenping 26 00:01:50,440 --> 00:01:54,240 Speaker 3: is face that he'll survive, but he is facing a 27 00:01:54,400 --> 00:02:01,720 Speaker 3: huge internal battle. Let's just think about out how what's 28 00:02:01,800 --> 00:02:06,120 Speaker 3: going on in China may relate to some things going 29 00:02:06,160 --> 00:02:11,239 Speaker 3: on here. This requires a little bit of I really 30 00:02:11,240 --> 00:02:14,480 Speaker 3: don't think it's a tenfoil hat, but it does require 31 00:02:14,520 --> 00:02:17,320 Speaker 3: a little bit of thinking about. 32 00:02:18,639 --> 00:02:19,800 Speaker 2: You know, you hear people. 33 00:02:19,560 --> 00:02:24,480 Speaker 3: All the time talking about how Trunk plays four dimensional chess. 34 00:02:25,760 --> 00:02:28,400 Speaker 3: This may be a little bit of four dimensional chess. 35 00:02:30,400 --> 00:02:35,399 Speaker 3: If you look at the China Central Military Commission, that's 36 00:02:35,440 --> 00:02:39,640 Speaker 3: the subset of the Chinese Communist Party, the Central Military Commission. 37 00:02:39,960 --> 00:02:45,080 Speaker 3: Gijing Ping is the Chinese Communist Party General secretary, he's 38 00:02:45,200 --> 00:02:49,960 Speaker 3: the State chairman, and he's the Central Military Commission Chairman. 39 00:02:51,120 --> 00:02:57,960 Speaker 3: He is surrounded by six generals, three of whom have 40 00:02:58,040 --> 00:03:04,079 Speaker 3: been removed so far, who disappeared, including one of the 41 00:03:04,200 --> 00:03:11,520 Speaker 3: Chinese Military Commissions Central Military Commissions Vice chairman. The Minister 42 00:03:11,600 --> 00:03:16,400 Speaker 3: of National Defense has been removed purged. The director of 43 00:03:16,440 --> 00:03:21,080 Speaker 3: the Military Commission's Political work department has been purged. So 44 00:03:21,280 --> 00:03:25,760 Speaker 3: three of the top leaders have been purged. Now just 45 00:03:26,040 --> 00:03:30,600 Speaker 3: follow along with me not saying any of this is 46 00:03:31,360 --> 00:03:36,880 Speaker 3: actually true. I'm saying that, Hm, I find all of 47 00:03:36,920 --> 00:03:43,800 Speaker 3: these movements very fascinating. If we've learned nothing else about 48 00:03:43,800 --> 00:03:48,960 Speaker 3: our reality in recent decades, we've at least figured this out. 49 00:03:50,800 --> 00:03:57,840 Speaker 3: Everything is interrelated. Nothing happens in the world anymore without 50 00:03:58,960 --> 00:04:03,200 Speaker 3: us having some some signal that, oh, that was coming, 51 00:04:04,160 --> 00:04:07,640 Speaker 3: or oh if we had, in hindsight looked at those 52 00:04:07,720 --> 00:04:10,960 Speaker 3: key leaves a little bit differently, we would have known. Well, 53 00:04:10,960 --> 00:04:15,480 Speaker 3: of course this was obvious to us. Nowhere is that 54 00:04:15,560 --> 00:04:19,640 Speaker 3: fact of life more transparent than in the current risk 55 00:04:19,720 --> 00:04:24,680 Speaker 3: to US national security presented by just about everything happening 56 00:04:25,720 --> 00:04:34,440 Speaker 3: inside China these days. I mean everything supply chains our 57 00:04:34,600 --> 00:04:40,000 Speaker 3: ability technologically to develop and be the world's leader in 58 00:04:40,120 --> 00:04:41,320 Speaker 3: artificial intelligence. 59 00:04:43,000 --> 00:04:44,680 Speaker 2: Who's the number one. 60 00:04:44,720 --> 00:04:52,000 Speaker 3: Chip maker that probably provides the most sophisticated computer chips 61 00:04:52,760 --> 00:04:57,040 Speaker 3: that will allow AI. I'm not going to use artificial 62 00:04:57,080 --> 00:04:59,279 Speaker 3: intelligence has too many syllables, So we're just gonna do 63 00:04:59,360 --> 00:05:03,640 Speaker 3: AI that allows AI to do all of the things, 64 00:05:04,680 --> 00:05:08,840 Speaker 3: both good and bad. But I think mostly good. Is 65 00:05:09,279 --> 00:05:12,880 Speaker 3: the Taiwan Semiconductor Manufacturing Corporation TSMC. 66 00:05:15,000 --> 00:05:17,400 Speaker 2: Why do you think that. 67 00:05:19,440 --> 00:05:22,359 Speaker 3: I'm not going to give Biden credit for this, but 68 00:05:22,480 --> 00:05:26,040 Speaker 3: I will give some of his National security advisors some 69 00:05:26,120 --> 00:05:29,600 Speaker 3: credit for this, and I certainly have to give Congress 70 00:05:29,760 --> 00:05:33,880 Speaker 3: some credit for this. And that is the Chips Act 71 00:05:34,040 --> 00:05:39,320 Speaker 3: that said to in particular TSMC, who was already investing 72 00:05:39,440 --> 00:05:43,159 Speaker 3: in fabs that are going to be located near Phoenix. 73 00:05:43,839 --> 00:05:48,160 Speaker 3: I forget whether it's Glendale, but anyway, in the Phoenix 74 00:05:48,240 --> 00:05:51,080 Speaker 3: area building. 75 00:05:50,760 --> 00:05:52,080 Speaker 2: These huge fabs. 76 00:05:52,560 --> 00:05:59,400 Speaker 3: There is entire Taiwanese communities being established in the Phoenix 77 00:05:59,480 --> 00:06:05,800 Speaker 3: area because they you know, they're coming here from Taipei. 78 00:06:06,440 --> 00:06:10,640 Speaker 3: TSMC is bringing their workers here. And then you have 79 00:06:10,839 --> 00:06:15,479 Speaker 3: the company in the Netherlands that creates I don't whether 80 00:06:15,480 --> 00:06:19,760 Speaker 3: you're aware of this or not, but TSMC, because of 81 00:06:19,800 --> 00:06:24,400 Speaker 3: the threat of the Chinese Communist Party and the People's 82 00:06:25,480 --> 00:06:31,480 Speaker 3: Republican Army invading Taiwan, that they have a company in 83 00:06:31,520 --> 00:06:37,279 Speaker 3: the Netherlands that if China starts to invade, will literally 84 00:06:37,320 --> 00:06:46,200 Speaker 3: just kill off everything that TSMC manufactures in Taiwan. That 85 00:06:46,279 --> 00:06:53,520 Speaker 3: company in the Netherlands was recently approached by the Chinese 86 00:06:53,520 --> 00:06:59,720 Speaker 3: Communist Party because they needed help with They claim that 87 00:07:00,440 --> 00:07:05,039 Speaker 3: a chip that they were using had broken, and I 88 00:07:05,120 --> 00:07:08,520 Speaker 3: forget what industry it was in, and so they asked 89 00:07:08,839 --> 00:07:13,040 Speaker 3: the Netherlands company if they would come in and help 90 00:07:13,120 --> 00:07:18,560 Speaker 3: them fix that chip, help repair that chip. So the 91 00:07:18,600 --> 00:07:23,200 Speaker 3: Netherlands sent people over. You know, if they discovered the 92 00:07:23,320 --> 00:07:28,760 Speaker 3: chip wasn't broken, the chip had been disassembled because they 93 00:07:28,760 --> 00:07:33,240 Speaker 3: were trying to re engineer it. They were taking it apart, 94 00:07:33,320 --> 00:07:38,000 Speaker 3: trying to figure out exactly how TSMC had manufactured this chip, 95 00:07:38,680 --> 00:07:40,600 Speaker 3: and of course they didn't want to go to TSMC 96 00:07:40,680 --> 00:07:45,280 Speaker 3: and let TSMC know that, oh, we've taken apart your 97 00:07:45,360 --> 00:07:47,360 Speaker 3: chip and now we're trying to re engineer it so 98 00:07:47,400 --> 00:07:50,400 Speaker 3: that we can steal your intellectual property from you. And 99 00:07:50,440 --> 00:07:53,360 Speaker 3: when you start manufacturing these chips. Now, fortunately this is 100 00:07:53,400 --> 00:07:57,040 Speaker 3: not the highest end chips that will be manufactured here 101 00:07:57,320 --> 00:08:01,560 Speaker 3: that are used in things like ai But nonetheless, the 102 00:08:01,560 --> 00:08:06,080 Speaker 3: Netherlands company recognized what was going on, alerted tsmcs to it, 103 00:08:06,440 --> 00:08:10,160 Speaker 3: and of course now we got a huge conflict going 104 00:08:10,800 --> 00:08:16,200 Speaker 3: between TSMC, in fact, Taiwan and the Chinese Communist Party, 105 00:08:16,200 --> 00:08:22,120 Speaker 3: which is not any surprise. That's an example of how 106 00:08:22,400 --> 00:08:27,440 Speaker 3: dangerously over reliant on an array of energy security and 107 00:08:27,600 --> 00:08:32,760 Speaker 3: national security needs that we have become reliant on China 108 00:08:32,840 --> 00:08:37,199 Speaker 3: for leaving this country both economically and militarily at risk 109 00:08:37,440 --> 00:08:44,320 Speaker 3: to the whims of Eugene King's communist government. That also 110 00:08:44,559 --> 00:08:49,400 Speaker 3: hit home pretty hard earlier this month when China announced 111 00:08:49,559 --> 00:08:54,679 Speaker 3: boldly aggressive moves to restrict exports of rare earth minerals 112 00:08:54,679 --> 00:08:58,680 Speaker 3: and magnets and chips made with them to the United 113 00:08:58,679 --> 00:09:05,240 Speaker 3: States for its military needs. Now that's insanity, utter insanity. 114 00:09:06,360 --> 00:09:08,200 Speaker 3: I don't have all the details, but I can tell 115 00:09:08,280 --> 00:09:12,160 Speaker 3: you that all of the rare earth minerals that we 116 00:09:12,320 --> 00:09:17,800 Speaker 3: need for all of the automobile manufacturing, commuter computer manufacturing, 117 00:09:18,120 --> 00:09:21,520 Speaker 3: our fighter jets, our nuclear warheads, everything that we need 118 00:09:21,760 --> 00:09:25,040 Speaker 3: in this country. Do you know that we have the 119 00:09:25,200 --> 00:09:29,760 Speaker 3: most abundant supply of rare earth minerals in this country? 120 00:09:31,080 --> 00:09:35,880 Speaker 3: So why aren't we using them? Because Congress and the 121 00:09:35,880 --> 00:09:39,600 Speaker 3: Green and Wienies have made it so expensive, so utterly 122 00:09:40,120 --> 00:09:44,480 Speaker 3: ridiculous in terms of mining and extracting and exploiting those 123 00:09:44,600 --> 00:09:48,120 Speaker 3: natural resources that it's become cheaper for us to rely on, 124 00:09:48,360 --> 00:09:51,040 Speaker 3: and of course we've done this to ourselves. We rely 125 00:09:51,120 --> 00:09:53,600 Speaker 3: on other countries for these rare earth minerals when we 126 00:09:53,640 --> 00:09:58,200 Speaker 3: could be doing it ourselves. That's one of the things 127 00:09:58,200 --> 00:10:05,240 Speaker 3: that Trump is trying to reverse. This dependency, which has 128 00:10:05,320 --> 00:10:07,720 Speaker 3: been growing for at least half a century or more, 129 00:10:08,520 --> 00:10:13,640 Speaker 3: but which Trump's predecessors in office, including my old boss, 130 00:10:14,200 --> 00:10:17,720 Speaker 3: have chosen to basically ignore and pass the buck for 131 00:10:17,960 --> 00:10:21,920 Speaker 3: ending this reliance on the Chinese Communist Party. Just pass 132 00:10:22,000 --> 00:10:24,760 Speaker 3: it on to the next guy. Nothing happened while we 133 00:10:24,760 --> 00:10:26,120 Speaker 3: were in office, so let's just leave it to the 134 00:10:26,120 --> 00:10:29,280 Speaker 3: next guy. But now the crisis has arrived at our 135 00:10:29,320 --> 00:10:35,319 Speaker 3: doorstep a fact that we'll force Trump to engage emergency 136 00:10:35,400 --> 00:10:43,120 Speaker 3: measures in order to correct that reliance. Recent days have 137 00:10:43,240 --> 00:10:47,640 Speaker 3: brought news of these military purges taking place inside the 138 00:10:47,679 --> 00:10:52,840 Speaker 3: Communist regime. As Hi jing Ping goes about reasserting his 139 00:10:53,120 --> 00:10:57,480 Speaker 3: primacy over the military establishment, he want to make sure 140 00:10:57,520 --> 00:11:00,960 Speaker 3: that if they try to purge him, that he's got 141 00:11:00,960 --> 00:11:03,080 Speaker 3: control of the military. 142 00:11:03,240 --> 00:11:03,440 Speaker 2: Now. 143 00:11:03,440 --> 00:11:05,679 Speaker 3: One of the reasons for that purge in the military 144 00:11:05,760 --> 00:11:07,439 Speaker 3: bear with me, is we skip back and forth here 145 00:11:07,480 --> 00:11:11,600 Speaker 3: between rare earths in the military. And the reason we 146 00:11:11,679 --> 00:11:15,400 Speaker 3: have to do so is because what's necessary for the 147 00:11:15,520 --> 00:11:20,880 Speaker 3: Chinese Communist Party to take over TSMC or to take 148 00:11:20,880 --> 00:11:26,360 Speaker 3: over and invade Taiwan the People's Republic Army, well, the 149 00:11:26,400 --> 00:11:30,880 Speaker 3: People's Republic Army is the generals have generally been opposed 150 00:11:30,920 --> 00:11:35,319 Speaker 3: to overtaking Taiwan. They don't want to invade Taiwan because 151 00:11:35,360 --> 00:11:38,680 Speaker 3: they know all of the chain reaction that will occur, 152 00:11:39,040 --> 00:11:41,280 Speaker 3: and they're not ready to fight that war. They're not 153 00:11:41,440 --> 00:11:44,920 Speaker 3: ready to fight a what would ultimately, in my belief, 154 00:11:45,320 --> 00:11:48,240 Speaker 3: explode into World War III. They don't want to be 155 00:11:49,880 --> 00:11:53,920 Speaker 3: the match that starts that and nor do they believe 156 00:11:53,920 --> 00:11:59,160 Speaker 3: that they are prepared to deal with South Korea, Japan, Australia, 157 00:11:59,280 --> 00:12:02,800 Speaker 3: New Zealand, the Philippines, and the United States, all who 158 00:12:02,920 --> 00:12:07,640 Speaker 3: will come to the defense of Taiwan. That's why Gugene 159 00:12:07,720 --> 00:12:12,240 Speaker 3: Ping is engaging in these purges. He wants to assert 160 00:12:12,280 --> 00:12:16,920 Speaker 3: his primacy over the military establishment now because of our 161 00:12:17,080 --> 00:12:21,720 Speaker 3: unwise dependency on China, whether that be for rare earth 162 00:12:22,120 --> 00:12:27,760 Speaker 3: or aspirin or antibiotics or anything else. All the crap 163 00:12:27,800 --> 00:12:30,920 Speaker 3: that shows up in Walmart or at Sam's Club or 164 00:12:30,960 --> 00:12:37,520 Speaker 3: cospital or anywhere else. Our unwise dependency on China. This 165 00:12:37,800 --> 00:12:44,200 Speaker 3: sign of instability inside China's government increases our own geopolitical risk. 166 00:12:44,640 --> 00:12:50,360 Speaker 3: As I say, it is all interrelated over on x, 167 00:12:52,360 --> 00:12:57,040 Speaker 3: which posts analyzes driven by AI tech. One account in 168 00:12:57,200 --> 00:13:02,520 Speaker 3: game Macro published a very good piece detailing what's happening 169 00:13:02,960 --> 00:13:05,720 Speaker 3: and why over the and why we need to be 170 00:13:05,760 --> 00:13:08,600 Speaker 3: paying attention to this. It sums the purge up in 171 00:13:08,600 --> 00:13:11,800 Speaker 3: a way that is relatable and easy to grasp, so 172 00:13:11,840 --> 00:13:14,880 Speaker 3: I want to share it. And then a second interrelated 173 00:13:14,920 --> 00:13:19,440 Speaker 3: piece which follows Here you go. Here's what endgame wrote, 174 00:13:21,240 --> 00:13:24,400 Speaker 3: why She's military purges are really happening, and why they 175 00:13:24,400 --> 00:13:25,360 Speaker 3: always happen this way? 176 00:13:26,640 --> 00:13:26,800 Speaker 2: Hey? 177 00:13:26,880 --> 00:13:29,719 Speaker 3: Right, what's unfolding in China right now? The expulsion of 178 00:13:29,800 --> 00:13:33,240 Speaker 3: top generals and a sweeping military purge is part of 179 00:13:33,280 --> 00:13:37,599 Speaker 3: a recurring pattern in Chinese power politics. When the leadership 180 00:13:37,640 --> 00:13:43,439 Speaker 3: feels internal cohesion is weakening or an external confrontation is coming, 181 00:13:44,320 --> 00:13:47,720 Speaker 3: the party Hijin Ping is the chairman of the party, 182 00:13:48,200 --> 00:13:54,520 Speaker 3: resets the ranks. She's current crackdown fits this historical rhythm 183 00:13:54,960 --> 00:14:03,560 Speaker 3: almost perfectly. Here's the full text. I really this is 184 00:14:04,880 --> 00:14:09,280 Speaker 3: it's not technical, but it's you've got to put your 185 00:14:09,320 --> 00:14:16,480 Speaker 3: mindset in Si jene Ping's head, so listen closely. They 186 00:14:16,520 --> 00:14:20,160 Speaker 3: write what's unfolding in China right now. The expulsion of 187 00:14:20,200 --> 00:14:23,520 Speaker 3: top generals and a sweeping military purge is part of 188 00:14:23,560 --> 00:14:28,680 Speaker 3: a recurring pattern in Chinese power politics. When the leadership 189 00:14:28,720 --> 00:14:33,320 Speaker 3: feels internal cohesion is weakening or an external confrontation is coming, 190 00:14:33,680 --> 00:14:37,480 Speaker 3: the party resets the ranks. She's current crackdown fits this 191 00:14:37,720 --> 00:14:42,600 Speaker 3: historical rhythm almost perfectly. This is being advertised that it's 192 00:14:42,680 --> 00:14:47,200 Speaker 3: all about cleaning up corruption inside the People's Liberation Army, 193 00:14:47,840 --> 00:14:51,120 Speaker 3: a story that the CCP has been telling for decades, 194 00:14:51,760 --> 00:14:58,280 Speaker 3: but underneath that it's about control. Every major consolidation phase 195 00:14:58,320 --> 00:15:02,600 Speaker 3: in Chinese communist history has come with purges that fuse 196 00:15:03,080 --> 00:15:07,040 Speaker 3: fear with loyalty. Now did it during the nineteen fifties 197 00:15:07,120 --> 00:15:12,000 Speaker 3: and sixties to harden revolutionary discipline, dun Chalping did in 198 00:15:12,040 --> 00:15:15,720 Speaker 3: the nineteen eighties and the nineteen nineties when economic liberalization 199 00:15:15,840 --> 00:15:21,120 Speaker 3: threatened ideological unity. She is doing it now because his 200 00:15:21,520 --> 00:15:28,760 Speaker 3: version of China's modernization drive, military, technological, and geopolitical cannot 201 00:15:28,840 --> 00:15:34,200 Speaker 3: tolerate uncertainty or divided loyalties at the top. Now I 202 00:15:34,240 --> 00:15:38,320 Speaker 3: would insert here another factor that they don't write a 203 00:15:38,360 --> 00:15:41,080 Speaker 3: lot about, but they do touch on. But I think 204 00:15:41,080 --> 00:15:48,320 Speaker 3: it's equally important. The Chinese economy is virtually an underpression. 205 00:15:49,280 --> 00:15:51,240 Speaker 3: And no matter what I mean, the government's been throwing 206 00:15:51,280 --> 00:15:54,280 Speaker 3: money at the real estate sector. They've been throwing money 207 00:15:54,000 --> 00:15:58,920 Speaker 3: at the military industrial complex. They've been throwing it at everything. 208 00:15:59,240 --> 00:16:01,920 Speaker 3: They've been even throwing it at retail. They can't get 209 00:16:01,960 --> 00:16:06,520 Speaker 3: anything to move. People are fleeing the cities because they 210 00:16:06,520 --> 00:16:09,600 Speaker 3: can't eat, they can't pay their mortgages, they can't do anything. 211 00:16:10,120 --> 00:16:15,760 Speaker 3: It is the Chinese economy is collapsing. In the parenthetical, 212 00:16:16,080 --> 00:16:20,360 Speaker 3: they go on to write this, the context matters. The 213 00:16:20,400 --> 00:16:23,080 Speaker 3: People's Liberation Army is in the middle of the most 214 00:16:23,080 --> 00:16:26,920 Speaker 3: complex overhaul in its history, shifting from a man power 215 00:16:26,920 --> 00:16:31,320 Speaker 3: heavy land based army into an AI driven Hence, that's 216 00:16:31,360 --> 00:16:36,160 Speaker 3: the importance about TSMC and these chips. It is shifting 217 00:16:36,200 --> 00:16:39,200 Speaker 3: from a man power heavy, land based army into an 218 00:16:39,200 --> 00:16:42,200 Speaker 3: AI driven missile heavy force meant to rival the United 219 00:16:42,240 --> 00:16:47,600 Speaker 3: States and its allies. That transformation is expensive, it is opaque, 220 00:16:48,000 --> 00:16:52,960 Speaker 3: and it is rife with opportunities for corruption. When defense 221 00:16:53,080 --> 00:16:57,320 Speaker 3: procurement stalls or funds disappear. Beijing reads it not as 222 00:16:57,360 --> 00:17:01,720 Speaker 3: simple mismanagement, but as a national security risk to the 223 00:17:01,800 --> 00:17:07,760 Speaker 3: Chinese Communist Party. Cheese recent ouster of generals linked to 224 00:17:07,800 --> 00:17:11,879 Speaker 3: the Rocket force and defense logistics suggests he's cleaning the 225 00:17:12,000 --> 00:17:17,840 Speaker 3: chain of command ahead of potential crises in Taiwan, the 226 00:17:17,880 --> 00:17:25,440 Speaker 3: South China Sea, or confrontation with the West. Historically, they 227 00:17:25,480 --> 00:17:31,160 Speaker 3: say these crackdowns also serve a psychological purpose because they 228 00:17:31,200 --> 00:17:35,960 Speaker 3: remind the bureaucracy that the party's survival comes before any 229 00:17:36,160 --> 00:17:43,080 Speaker 3: individual survival. Pure unadulterated communism under mal purges like the 230 00:17:43,119 --> 00:17:48,159 Speaker 3: Cultural Revolution created a state of permanent But they write 231 00:17:48,200 --> 00:17:52,520 Speaker 3: as alertnists, I would have used the word fear, a 232 00:17:52,680 --> 00:17:54,320 Speaker 3: constant state of fear. 233 00:17:57,400 --> 00:18:00,600 Speaker 2: What happens next, Michael? 234 00:18:00,920 --> 00:18:05,000 Speaker 4: Since you bring up Trump playing four dimensional chess, that 235 00:18:05,160 --> 00:18:08,960 Speaker 4: leads me to this. Perhaps the No King's protest are 236 00:18:09,000 --> 00:18:13,080 Speaker 4: because his opposition is playing checkers and they're tired of 237 00:18:13,119 --> 00:18:13,960 Speaker 4: being kinged. 238 00:18:15,119 --> 00:18:20,440 Speaker 2: Just a possibility, Yeah, I think so. Plus they've got 239 00:18:20,680 --> 00:18:24,120 Speaker 2: they What was it. 240 00:18:28,000 --> 00:18:33,200 Speaker 3: In one area where one of the No King's protests 241 00:18:33,760 --> 00:18:36,480 Speaker 3: I'm sorry I don't remember the details, but in one 242 00:18:36,520 --> 00:18:41,280 Speaker 3: area where one of the No King's protests occurred. Seventy 243 00:18:41,400 --> 00:18:45,040 Speaker 3: percent of the people in that area had voted for 244 00:18:45,080 --> 00:18:50,240 Speaker 3: Donald Trump. They're losing and they can't stand that they're losing. 245 00:18:51,440 --> 00:18:57,080 Speaker 3: So back to China. Do you know why I tell 246 00:18:57,119 --> 00:19:02,040 Speaker 3: you these stories about China, TSMS, Taiwan, the South China 247 00:19:02,040 --> 00:19:09,400 Speaker 3: Sea because I do firmly believe that while Russia Ukraine 248 00:19:10,040 --> 00:19:14,879 Speaker 3: could be a tipping point, I think that could be 249 00:19:14,960 --> 00:19:19,600 Speaker 3: a war that would be confined predominantly. Now obviously, if 250 00:19:19,640 --> 00:19:24,280 Speaker 3: we got involved, I don't think that they would try 251 00:19:24,320 --> 00:19:28,920 Speaker 3: to invade this country, but that would be a European war, 252 00:19:29,480 --> 00:19:34,240 Speaker 3: much like the beginnings of World War Two, primarily Europe, 253 00:19:34,480 --> 00:19:38,120 Speaker 3: which I know spread. So it's I'm kind of defeating 254 00:19:38,119 --> 00:19:42,879 Speaker 3: my own argument. I do believe, however, that a war 255 00:19:43,520 --> 00:19:47,960 Speaker 3: that originates with the invasion of Taiwan or the Philippines, 256 00:19:48,200 --> 00:19:52,520 Speaker 3: New Zealand or Australia is going to drag in Japan, 257 00:19:52,680 --> 00:19:57,080 Speaker 3: South Korea, Australia, New Zealand, the Philippines. It will draw 258 00:19:57,200 --> 00:20:01,600 Speaker 3: us in because will be required to defend Japan and 259 00:20:01,680 --> 00:20:06,160 Speaker 3: North Korea, Japan and South Korea, and of course, while 260 00:20:06,200 --> 00:20:13,240 Speaker 3: we have this ambiguity about Taiwan, we'll defend Taiwan primarily 261 00:20:13,320 --> 00:20:16,199 Speaker 3: because it's in our national security interest to do so. 262 00:20:17,760 --> 00:20:21,919 Speaker 3: And what's occurring right now with this plenary that's going on, 263 00:20:22,200 --> 00:20:27,200 Speaker 3: this plenum that's going on in in Beijing right now 264 00:20:29,000 --> 00:20:32,400 Speaker 3: is a great example of how everything is inter related. 265 00:20:33,800 --> 00:20:37,960 Speaker 3: So we started with mal in the Cultural Revolution, trying 266 00:20:37,960 --> 00:20:41,600 Speaker 3: to create a state, a permanent state of fear. Dung 267 00:20:41,720 --> 00:20:47,760 Speaker 3: Chow Ping arrested dissidents. He wanted to keep the reformist 268 00:20:48,040 --> 00:20:54,040 Speaker 3: loyal while he kept the markets open. Under Shi, you 269 00:20:54,160 --> 00:20:57,520 Speaker 3: have a mix of fear and moral theater reasserts the 270 00:20:57,560 --> 00:21:01,159 Speaker 3: party's monopoly over truth and violence. So it's less about 271 00:21:01,359 --> 00:21:06,320 Speaker 3: rooting out corruption. It's really about eliminating independent power bases 272 00:21:06,920 --> 00:21:13,840 Speaker 3: that could act unpredictably if war pressure or this economic instability, 273 00:21:14,240 --> 00:21:19,359 Speaker 3: which both of which currently exists, begins to intensify and 274 00:21:19,400 --> 00:21:25,080 Speaker 3: boils over. In my opinions, She's purge is a pre 275 00:21:25,240 --> 00:21:30,440 Speaker 3: mobilization discipline campaign. The leadership knows China's next phase of 276 00:21:30,480 --> 00:21:34,840 Speaker 3: slower growth, rising unemployment, capital flight, which is you know, 277 00:21:35,359 --> 00:21:41,480 Speaker 3: companies and investors' money is just fleeing China and frankly 278 00:21:41,720 --> 00:21:45,679 Speaker 3: coming into this country, and external containment is going to 279 00:21:45,720 --> 00:21:51,360 Speaker 3: demand extreme internal unity. So purges, as they write, purges 280 00:21:51,359 --> 00:21:55,080 Speaker 3: are a signaling mechanism because they tell the military, you 281 00:21:55,119 --> 00:21:59,440 Speaker 3: answer to me alone, and they tell foreign powers don't 282 00:21:59,520 --> 00:22:04,000 Speaker 3: mistake our internal moves as weakness. Instead, it is a 283 00:22:04,040 --> 00:22:09,480 Speaker 3: form of tightening prior to turbulence, which is an old 284 00:22:09,600 --> 00:22:17,160 Speaker 3: Chinese reflex that merges paranoia and preparation together. The irony 285 00:22:18,119 --> 00:22:21,960 Speaker 3: is that, here's what they write. The more the regime titans, 286 00:22:22,480 --> 00:22:27,040 Speaker 3: the more brittle it becomes. She is trading technical competence 287 00:22:27,440 --> 00:22:31,000 Speaker 3: for personal loyalty, the same trade off that weakens the 288 00:22:31,040 --> 00:22:34,200 Speaker 3: Soviet Union. Yet, for now, the logic makes sense from 289 00:22:34,280 --> 00:22:39,120 Speaker 3: his perspective, because a fragmented or corrupted people's liberation army 290 00:22:39,600 --> 00:22:44,680 Speaker 3: is a far greater risk than an obedient but less 291 00:22:44,800 --> 00:22:51,040 Speaker 3: powerful one in Beijing, and in She's calculus, purity beats 292 00:22:51,119 --> 00:22:56,240 Speaker 3: performance when the stakes are existential, and She's actions suggests 293 00:22:56,640 --> 00:22:58,800 Speaker 3: he believes that moment is close. 294 00:23:03,080 --> 00:23:06,720 Speaker 2: So when these analysts. 295 00:23:07,320 --> 00:23:13,720 Speaker 3: Perform, what they perform for their readers amounts to pattern recognition, 296 00:23:14,560 --> 00:23:18,320 Speaker 3: but on a grand scale that's driven back by Ai. 297 00:23:21,080 --> 00:23:24,560 Speaker 3: It wasn't. Just hours after they published their initial piece, 298 00:23:25,880 --> 00:23:30,160 Speaker 3: the account produced a separate analysis which asserts a potential 299 00:23:30,200 --> 00:23:34,040 Speaker 3: strategic objective emerging behind Trump's deployments of the National Guard 300 00:23:34,440 --> 00:23:41,240 Speaker 3: in Democrat run cities around the country. I find that fascinating. Now, again, 301 00:23:42,760 --> 00:23:48,800 Speaker 3: what endgame does is they use AI to do these predictions. 302 00:23:49,680 --> 00:23:52,960 Speaker 3: So I know that this is I don't want to 303 00:23:52,960 --> 00:23:58,760 Speaker 3: call it a game, but it is the nascent deployment 304 00:23:58,840 --> 00:24:05,359 Speaker 3: of AI to kind of like in wargames. Let's play 305 00:24:05,400 --> 00:24:11,720 Speaker 3: the game on the computer and see where it leads. Now, 306 00:24:13,240 --> 00:24:16,280 Speaker 3: the White House, let's go back to what happened. Hours 307 00:24:16,280 --> 00:24:19,560 Speaker 3: after they publish their first analysis that I just read 308 00:24:19,600 --> 00:24:25,000 Speaker 3: to you, they produced a second analysis, again AI driven, 309 00:24:26,880 --> 00:24:31,360 Speaker 3: and it asserts that there is a broader strategic objective 310 00:24:32,000 --> 00:24:36,760 Speaker 3: from Trump's deployment of the National Guard in just I 311 00:24:36,800 --> 00:24:39,679 Speaker 3: will just give you a little hint that just happened 312 00:24:39,720 --> 00:24:42,160 Speaker 3: to be in Democrat run cities around the country. 313 00:24:43,440 --> 00:24:45,680 Speaker 2: The White House clearly. 314 00:24:45,359 --> 00:24:49,359 Speaker 3: Couches those deployments as strictly focused on trying to tap 315 00:24:49,480 --> 00:24:56,320 Speaker 3: down criminal activity in chaotic cities. But the endgame AI 316 00:24:56,480 --> 00:25:01,800 Speaker 3: platform finds a potential larger objective. It play you know 317 00:25:01,880 --> 00:25:09,040 Speaker 3: what that is keeping our transportation hubs running operative and 318 00:25:09,480 --> 00:25:15,200 Speaker 3: free of these disturbances in the event of a national emergency. 319 00:25:15,800 --> 00:25:19,960 Speaker 3: Here's what they wrote. If you map where National Guard 320 00:25:20,000 --> 00:25:24,000 Speaker 3: deployments have actually happened or been proposed, such as d 321 00:25:24,200 --> 00:25:30,160 Speaker 3: C LA Memphis. Now, they also wanted to do them 322 00:25:30,200 --> 00:25:36,560 Speaker 3: in Chicago and Portland. The courts have paused those, but 323 00:25:36,640 --> 00:25:39,119 Speaker 3: they also want to do them in New York, Baltimore, 324 00:25:39,200 --> 00:25:42,280 Speaker 3: New Orleans, Saint Louis, San Francisco. 325 00:25:41,800 --> 00:25:42,400 Speaker 2: And Oakland. 326 00:25:43,200 --> 00:25:46,399 Speaker 3: When you map that out, I'm this is me talking, 327 00:25:46,480 --> 00:25:52,160 Speaker 3: not the AI analysis. When when you map that out, 328 00:25:53,520 --> 00:25:59,840 Speaker 3: that looks like, oh, that's our internal operating system. Why, 329 00:26:00,000 --> 00:26:03,760 Speaker 3: here's what they write. These dots fall almost perfectly on 330 00:26:03,800 --> 00:26:08,320 Speaker 3: top of the infrastructure and logistic hubs that government and 331 00:26:08,400 --> 00:26:14,040 Speaker 3: think tank studies repeatedly label as nationally critical. The big 332 00:26:14,040 --> 00:26:18,840 Speaker 3: coastal ports of La Long Beach, New York, New Jersey, Oakland, Baltimore, 333 00:26:19,240 --> 00:26:24,120 Speaker 3: the Lower Gulf Terminals moved most of the nation's containers, vehicles, 334 00:26:24,200 --> 00:26:28,800 Speaker 3: and bulk cargo. The New Orleans Baton Rouge Corridor is 335 00:26:28,840 --> 00:26:32,560 Speaker 3: the choke point of the Mississippi where barges carry much 336 00:26:32,560 --> 00:26:38,280 Speaker 3: of America's grain and petrochemical exports. Portland anchors the Columbia 337 00:26:38,359 --> 00:26:43,560 Speaker 3: Snake System, the country's largest wheat export route. Chicago is 338 00:26:43,600 --> 00:26:45,800 Speaker 3: the nation's rail and intermodal nerve center. 339 00:26:46,320 --> 00:26:47,400 Speaker 2: A third of all. 340 00:26:47,359 --> 00:26:53,240 Speaker 3: Freight passes through Chicago. Memphis, obviously with FedEx's superhub, is 341 00:26:53,280 --> 00:26:57,480 Speaker 3: the heartbeat of air cargo along the southern flank. Laredo 342 00:26:57,520 --> 00:27:01,120 Speaker 3: and other border crossings are now how essential to US 343 00:27:01,160 --> 00:27:06,120 Speaker 3: and Mexican manufacturing supply chains. And of course, the DC 344 00:27:06,280 --> 00:27:11,560 Speaker 3: Baltimore Northern Virginia, New York Corridor houses the government, houses 345 00:27:11,560 --> 00:27:17,400 Speaker 3: our capital markets, and houses the digital infrastructure that DHS 346 00:27:17,440 --> 00:27:26,600 Speaker 3: calls nationally critical. Now, the next paragraph hit me pretty 347 00:27:26,600 --> 00:27:32,280 Speaker 3: hard because during my time at DHS, we actually studied 348 00:27:33,080 --> 00:27:37,360 Speaker 3: starting with just the interstate route system. You ever looked 349 00:27:37,359 --> 00:27:40,200 Speaker 3: at a map of the United States with nothing showing 350 00:27:40,240 --> 00:27:43,960 Speaker 3: but just the interstate routes. You know why Eisenhower developed that, right? 351 00:27:44,040 --> 00:27:46,679 Speaker 3: You know why Eisenhower wanted it not so that you 352 00:27:46,720 --> 00:27:49,320 Speaker 3: and I could drive easily from point A to point B, 353 00:27:50,640 --> 00:27:54,080 Speaker 3: but because the military could move from point A to 354 00:27:54,160 --> 00:28:00,719 Speaker 3: point B without having to stop. When federal Here's what 355 00:28:00,760 --> 00:28:05,000 Speaker 3: they wrote. When federal planners talk about continuity of flows, 356 00:28:05,400 --> 00:28:07,600 Speaker 3: these are the places that always show up. A single 357 00:28:07,680 --> 00:28:11,080 Speaker 3: bridge yard or server farm in any of those places 358 00:28:11,400 --> 00:28:15,400 Speaker 3: can ripple throughout the entire economy. We're not suggesting these 359 00:28:15,400 --> 00:28:18,600 Speaker 3: deployments are anything more than what's been publicly stated, which 360 00:28:18,640 --> 00:28:23,600 Speaker 3: is for crime prevention and immigration enforcement. But what's their 361 00:28:23,680 --> 00:28:27,560 Speaker 3: rule about bud pay attention to what comes next. It 362 00:28:27,680 --> 00:28:33,879 Speaker 3: is worth noting how strategically important those particular areas are. 363 00:28:35,520 --> 00:28:39,600 Speaker 3: They write the geography itself. Hence, at a broader logic, 364 00:28:40,520 --> 00:28:45,640 Speaker 3: a quiet focus on securing the junctions that keep modern 365 00:28:45,760 --> 00:28:52,600 Speaker 3: American life running. Holding the major ports, the Mississippi export belt, 366 00:28:52,840 --> 00:28:56,560 Speaker 3: the Chicago rail Nexus, the Memphis Air cargo Hub, the 367 00:28:56,640 --> 00:28:59,760 Speaker 3: Key border crossings, and the DC New York and Northern 368 00:29:00,040 --> 00:29:03,800 Speaker 3: Junior communications and finance core, and you protect the country's 369 00:29:03,800 --> 00:29:09,080 Speaker 3: ability to do what move goods, energy, and information through 370 00:29:09,120 --> 00:29:12,000 Speaker 3: almost any external shock. 371 00:29:12,560 --> 00:29:16,440 Speaker 5: Michael, you're aware that the the No King's rally in 372 00:29:16,560 --> 00:29:23,680 Speaker 5: San Antonio involved vandalism of a church and housing near 373 00:29:24,440 --> 00:29:31,880 Speaker 5: the rally. Pretty predictable, I suppose, huh. 374 00:29:30,320 --> 00:29:35,480 Speaker 3: Yeah, and San Antonio, it's interesting. I didn't think about it. 375 00:29:35,560 --> 00:29:38,320 Speaker 3: I should do that, is dig around and find out 376 00:29:38,520 --> 00:29:42,920 Speaker 3: how many local stories I can find about some violence 377 00:29:43,000 --> 00:29:48,600 Speaker 3: or vandalism, because according to everybody on the cable channels, 378 00:29:49,080 --> 00:29:51,920 Speaker 3: well it was just all peaceful, you know, just people 379 00:29:52,040 --> 00:29:56,000 Speaker 3: like in Colorado, I'm showing up with can goods and ballots. 380 00:29:56,040 --> 00:29:58,040 Speaker 2: I'm sure they cleaned up after themselves too, So there's 381 00:29:58,040 --> 00:30:00,000 Speaker 2: no anything. 382 00:30:00,960 --> 00:30:04,640 Speaker 3: The guy that thinks Trump's a bitch, of course he did. Yes, 383 00:30:08,520 --> 00:30:10,960 Speaker 3: he got mad at the reporter for asking him a 384 00:30:11,000 --> 00:30:13,280 Speaker 3: question he didn't know the answer to, like why you're here, 385 00:30:13,640 --> 00:30:15,920 Speaker 3: and he just got mad and through a Starbucks cut 386 00:30:16,000 --> 00:30:19,880 Speaker 3: down or his Chick fil A wrapper box and threw 387 00:30:19,920 --> 00:30:23,520 Speaker 3: it down to his extra Crispy fries. He threw those away. 388 00:30:25,040 --> 00:30:27,680 Speaker 3: Everything's in a related That's all I want you think about. 389 00:30:28,800 --> 00:30:31,360 Speaker 3: You know, for every action, there's a reaction. One action 390 00:30:31,480 --> 00:30:36,120 Speaker 3: forces an equal and opposite reaction. China's action regarding rare 391 00:30:36,160 --> 00:30:40,880 Speaker 3: earth minerals simply highlights the need for us to react 392 00:30:40,960 --> 00:30:46,560 Speaker 3: quickly to free ourselves from Chinese dominance in that sector 393 00:30:46,600 --> 00:30:52,600 Speaker 3: of global trade. At the same time, chi Jing Ping's 394 00:30:52,640 --> 00:30:56,600 Speaker 3: ongoing military purge highlights the need for the Trump White 395 00:30:56,680 --> 00:31:02,200 Speaker 3: House to make very strategic moves to secure our key 396 00:31:02,440 --> 00:31:08,600 Speaker 3: infrastructure hubs in the event of a national emergency. Now 397 00:31:08,640 --> 00:31:12,920 Speaker 3: I'm not trying to you know, cry wolf here. I'm 398 00:31:12,920 --> 00:31:15,480 Speaker 3: not Paul Revere riding a horse down telling you that 399 00:31:15,640 --> 00:31:19,360 Speaker 3: the Chinese are coming. What I am saying is that 400 00:31:20,400 --> 00:31:24,080 Speaker 3: I'm beginning to think based on my past experiences inside 401 00:31:24,120 --> 00:31:27,960 Speaker 3: homeland security and the kind of planning we did for 402 00:31:28,080 --> 00:31:31,720 Speaker 3: things like the collapse of Cuba, the collapse of Mexico, 403 00:31:32,400 --> 00:31:36,000 Speaker 3: and looking at critical infrastructure, and how do we make 404 00:31:36,120 --> 00:31:41,320 Speaker 3: certain that critical infrastructure, the grid, the highways, the ports, 405 00:31:41,560 --> 00:31:47,400 Speaker 3: the airports, cargo rail everything, how that's protected. Now we 406 00:31:47,520 --> 00:31:50,360 Speaker 3: started that. Now I can't I can account for what 407 00:31:50,480 --> 00:31:52,360 Speaker 3: the hell they did with it after I left, but 408 00:31:52,440 --> 00:31:54,920 Speaker 3: at least we started looking at it. And what I 409 00:31:55,000 --> 00:31:59,440 Speaker 3: begin to see now is huh. Because I've often wondered, now, 410 00:31:59,480 --> 00:32:02,760 Speaker 3: Imphis is a violent place. Memphis has a lot of 411 00:32:03,640 --> 00:32:08,640 Speaker 3: has a lot of crime, as does Chicago, but those 412 00:32:08,640 --> 00:32:15,040 Speaker 3: are also hubs. La Long Beach a hub, and of 413 00:32:15,080 --> 00:32:21,120 Speaker 3: course the Washington New York Corridor a hub. The border absolutely, 414 00:32:21,120 --> 00:32:23,600 Speaker 3: whether he you know, forget about and have to forget 415 00:32:23,600 --> 00:32:27,800 Speaker 3: about free trade, but nevertheless a place where goods and 416 00:32:27,960 --> 00:32:30,320 Speaker 3: parts come and go across the border all the time. 417 00:32:32,360 --> 00:32:36,680 Speaker 3: Maybe what Trump's really doing here is playing for d chess, 418 00:32:37,560 --> 00:32:40,920 Speaker 3: and he's accomplishing two things at once. I think this 419 00:32:41,000 --> 00:32:44,600 Speaker 3: is how the guy's mind works. I think he's looking 420 00:32:44,640 --> 00:32:50,760 Speaker 3: at it and going, Oh, Portland, Seattle, La, Long Beach, Chicago, Memphis, 421 00:32:51,120 --> 00:32:56,280 Speaker 3: New Orleans, the Northeast Corridor. Huh, I can kill two 422 00:32:56,280 --> 00:33:02,040 Speaker 3: birds with one stone here. Now, endgame on X hasn't 423 00:33:02,040 --> 00:33:04,560 Speaker 3: taken their AI to the next step, and they haven't 424 00:33:04,600 --> 00:33:07,120 Speaker 3: tried to analyze it yet. But I want you to 425 00:33:07,160 --> 00:33:10,239 Speaker 3: sit back and try to imagine just how screwed up 426 00:33:10,320 --> 00:33:14,680 Speaker 3: things would be with Kamala Harris sitting in the overlock 427 00:33:15,880 --> 00:33:19,880 Speaker 3: or Joe Biden sitting in the overlock. You ever thought 428 00:33:19,880 --> 00:33:24,560 Speaker 3: that maybe for every reaction, there's a reaction that a 429 00:33:24,600 --> 00:33:27,480 Speaker 3: lot of the reaction we see, like no kings, that 430 00:33:27,560 --> 00:33:31,480 Speaker 3: we see all of the Democrats, you know, just beside themselves, 431 00:33:32,080 --> 00:33:36,480 Speaker 3: is because Trump's actually doing significant things that need to 432 00:33:36,480 --> 00:33:37,840 Speaker 3: be done to protect the nation.