WEBVTT - China! 0:00:10.840 --> 0:00:15.880 Mr Garbutschof teared down this wall. Either you're with us 0:00:16.720 --> 0:00:19.480 or you were with the terrorists. If you got healthcare 0:00:19.520 --> 0:00:21.919 all it, then you can keep your plan. If you're 0:00:21.960 --> 0:00:25.000 satisfied with Trump is not. When President of the United 0:00:25.000 --> 0:00:28.680 States take it to a bank together, we will make 0:00:28.960 --> 0:00:35.000 America great again. You'll never sharend It's what you've been 0:00:35.040 --> 0:00:38.879 waiting for all day. The buck Sexton Show joined the 0:00:38.920 --> 0:00:42.840 conversation called Buck toll free at eight four four nine 0:00:42.920 --> 0:00:47.120 hundred Buck. That's eight four four nine hundred to eight 0:00:47.159 --> 0:00:52.360 to five. The future of talk radio buck Sexton. Yes, 0:00:53.000 --> 0:01:01.520 in our country closed, shuttered, gone six million jobs at least, God, 0:01:02.760 --> 0:01:04.920 and now they're starting to come back. You see what's 0:01:04.920 --> 0:01:08.160 happening with Chrysler, with Fox con with so many other 0:01:08.840 --> 0:01:14.560 companies wanting to come back into the United States. But 0:01:14.720 --> 0:01:18.080 we have one particular problem, and I view them as 0:01:18.080 --> 0:01:23.400 a friend. I have tremendous respect for President she We 0:01:23.480 --> 0:01:27.759 have a great relationship. But there's gonna be some tariffs 0:01:28.200 --> 0:01:30.880 and there's gonna be some pushback on the theft of 0:01:30.959 --> 0:01:34.679 intellectual property. Welcome to the buck Sexton Show, my friends, 0:01:34.720 --> 0:01:38.480 Thank you for being here. The market has had kind 0:01:38.480 --> 0:01:43.039 of an interesting ride today down down seven points, which 0:01:43.680 --> 0:01:47.720 many are understandably a little little freaked out about my 0:01:47.720 --> 0:01:49.560 My four oh one k is now a one oh 0:01:49.560 --> 0:01:53.520 one k uh and and it wasn't much to begin with. 0:01:54.240 --> 0:01:56.560 So it's been a rough been a rough day for 0:01:57.240 --> 0:02:01.280 retirement plans and people with with stock stock park of accounts. Well, 0:02:01.320 --> 0:02:04.760 this was absolutely necessary. Look, yeah, two major things happened 0:02:04.800 --> 0:02:10.480 today with the administration, well with the government. One is 0:02:11.160 --> 0:02:15.080 China tariffs, trade, intellectual property theft, and actually the last 0:02:15.080 --> 0:02:16.480 part of that I think is the most important. We're 0:02:16.480 --> 0:02:19.079 gonna get into that in just a second. And then 0:02:19.120 --> 0:02:25.400 also this omnibus spill, which is a disaster, it really is. 0:02:26.840 --> 0:02:30.840 It's it's frustrating that this is where we are and 0:02:30.919 --> 0:02:36.560 that so many Republicans are comfortable going on TV saying yeah, 0:02:36.600 --> 0:02:40.200 you know, it's great, it's great. No problem. Not nothing 0:02:40.200 --> 0:02:43.160 to see here, folks, No problem. We will talk about 0:02:43.200 --> 0:02:46.240 that too later on the show. I have updates for 0:02:46.400 --> 0:02:50.560 you on the Austin serial bomber. We also have a 0:02:50.639 --> 0:02:54.359 breaking news story on former Director of National Intelligence Jim Clapperman. 0:02:54.400 --> 0:02:57.799 I will talk to you about and the Vegas shooter. 0:02:58.720 --> 0:03:00.720 There's video of him now, and I watched it all 0:03:00.760 --> 0:03:04.919 today and I'll talk to you about that as as 0:03:04.919 --> 0:03:06.560 well as some other topics that will come up over 0:03:06.560 --> 0:03:11.560 the course of our discussions. But first on China. China, 0:03:12.160 --> 0:03:18.880 there you go. The President is pushing back finally against 0:03:19.800 --> 0:03:24.440 our nearest competitor. And there's a lot of freak out 0:03:24.480 --> 0:03:28.600 about this. But let's understand that there is this notion, uh, 0:03:28.639 --> 0:03:31.840 there is this notion that we can be in a 0:03:31.880 --> 0:03:36.360 world where competition just benefits everyone and there's really no 0:03:36.440 --> 0:03:40.240 winners and losers between nation states, and that doesn't make sense. 0:03:40.640 --> 0:03:43.480 It's not really true. Yes, free trade is great. It's 0:03:43.520 --> 0:03:45.560 made a lot of people very wealthy, and the last 0:03:45.720 --> 0:03:49.320 hundred and fifty years has pulled globally more people out 0:03:49.320 --> 0:03:52.200 of poverty than all the years of human history before. 0:03:53.800 --> 0:03:58.560 So I'm all about all about capitalism. I love commerce, baby, 0:03:58.600 --> 0:04:02.640 it's great, But there are other considerations for nation states 0:04:02.680 --> 0:04:06.120 as well. It can't always just be driven by quarterly 0:04:06.160 --> 0:04:11.240 earning statements. And when we're looking at China specifically and 0:04:11.280 --> 0:04:14.880 what they've been doing, now there's a problem. And I'm 0:04:14.920 --> 0:04:19.000 trying to to piece by piece take apart the conventional wisdom. 0:04:19.120 --> 0:04:21.800 I can tell you more or less what a lot 0:04:21.839 --> 0:04:26.520 of conservative journals of opinion out there, various columnists are 0:04:26.520 --> 0:04:28.360 going to say, because it's the same stuff they've been 0:04:28.360 --> 0:04:31.920 saying for twenty years about China, which is, you know, 0:04:32.200 --> 0:04:35.719 let's just trade relationship, everything will be cool, just give 0:04:35.720 --> 0:04:40.120 it time. And things aren't getting better in fact, from 0:04:40.160 --> 0:04:46.240 the perspective of politics in China. From if you're looking 0:04:46.279 --> 0:04:50.360 at this from the angle of is our nearest competitor 0:04:50.400 --> 0:04:53.640 on the world stage becoming a more free and less 0:04:54.839 --> 0:04:58.479 bellicost place or not? Uh, the answer is that it 0:04:58.560 --> 0:05:01.279 is not becoming a more free and less bellicost place. 0:05:02.279 --> 0:05:06.320 So that's it's not working for us. Um it is 0:05:07.080 --> 0:05:10.720 something that needs to be addressed. I would recommend if 0:05:10.720 --> 0:05:13.240 you have some time. This is a little a little digression, 0:05:13.240 --> 0:05:15.920 but it's it's important, it's powerful. I think if you 0:05:16.080 --> 0:05:19.039 have the time to go back, read a bit about 0:05:19.240 --> 0:05:24.640 the Venona project. Lots of books written about it. The 0:05:24.760 --> 0:05:29.760 Venona was started because the well, because we wanted to 0:05:29.800 --> 0:05:33.440 have a sense the US military and national security complex 0:05:33.440 --> 0:05:35.839 wanted to have a sense that's what the Soviets we're 0:05:35.839 --> 0:05:40.599 really up to. And then we figured in terms of 0:05:40.440 --> 0:05:43.039 the Second World War and what the what their plans 0:05:43.040 --> 0:05:46.159 were visavi Germany, where they're going to have a separate piece, 0:05:46.240 --> 0:05:48.480 and and we we kept it going because we figured out, 0:05:48.480 --> 0:05:52.400 wait a second, there's a lot of Soviet agents that 0:05:52.480 --> 0:05:55.479 had penetrated the United States government. Now this is pre internet, 0:05:55.520 --> 0:06:01.840 this is pre mass communication other than radio and printing press, right, 0:06:01.920 --> 0:06:05.800 I mean some some television coming into into the scene 0:06:05.839 --> 0:06:10.200 pretty pretty soon. But you had to have people in 0:06:10.360 --> 0:06:13.800 place to steal a lot of the info that you 0:06:13.800 --> 0:06:18.120 wanted to steal. And the long term ramifications of that 0:06:18.240 --> 0:06:23.400 theft were severe. We know that it accelerated a Russian 0:06:24.279 --> 0:06:28.640 nuclear bomb, for example, by at least I think eighteen 0:06:28.680 --> 0:06:30.880 to twenty four months they estimate, They don't really know. 0:06:31.160 --> 0:06:33.440 This is just an estimate. What how quickly could they 0:06:33.480 --> 0:06:37.880 have gotten there if they hadn't been purloining our nuclear secrets? 0:06:38.680 --> 0:06:40.600 And think about that for a moment. The Soviets were 0:06:40.600 --> 0:06:44.880 actually getting the Crown Jewels stuff. What could be more 0:06:44.920 --> 0:06:50.240 sensitive than our nuclear technology in the you know, late 0:06:50.360 --> 0:06:55.160 nineteen forties, early nineteen fifties, Soviets got into that. They 0:06:55.160 --> 0:06:57.920 had a lot of fellow travelers, people who ideologically were 0:06:57.960 --> 0:07:02.000 aligned with them, be because they felt like the Soviets, 0:07:02.080 --> 0:07:04.640 for one, had been the force that had truly defeated 0:07:04.760 --> 0:07:07.520 Nazi Germany. And this is not talked to kids in 0:07:07.560 --> 0:07:10.400 school these days, but that was common among American leftists 0:07:10.440 --> 0:07:12.520 that it was really the Soviet Union. Now, I know, 0:07:12.560 --> 0:07:16.360 the battlefield losses on the Eastern Front were orders of 0:07:16.400 --> 0:07:20.240 magnitude larger than the Western Front, but they didn't think 0:07:20.240 --> 0:07:22.600 of that as well. The Soviets had a terrible war 0:07:22.720 --> 0:07:25.920 machine to use because of the purges of Stalin. Stalin 0:07:25.960 --> 0:07:29.239 got rid of all the good generals. That was a problem. 0:07:29.520 --> 0:07:31.400 You're gonna fight Nazi Germany, you probably want to have 0:07:31.400 --> 0:07:35.640 your best general's right A Stalin was had already eliminated them, 0:07:35.680 --> 0:07:39.320 liquidated them, and that led to many of the disasters 0:07:39.320 --> 0:07:42.760 on the Eastern Front, but not nonetheless the back to 0:07:42.800 --> 0:07:45.600 the theft of intellectual property that occurred there. It was 0:07:45.680 --> 0:07:49.760 civilization changing. It allowed the Soviets to punch well above 0:07:49.840 --> 0:07:54.120 their weight when it came to the military in particular, 0:07:54.720 --> 0:07:59.840 but also in economic espionage, industrial output, things like that. 0:08:00.240 --> 0:08:05.400 Their system eventually collapsed because it was obviously on faulty foundation. 0:08:05.520 --> 0:08:07.280 And you know what you mean to tell you that, 0:08:08.040 --> 0:08:10.280 but this is still not really understood in the American 0:08:10.280 --> 0:08:13.080 consciousness that that the theft of information from US by 0:08:13.120 --> 0:08:19.560 the Soviets was a a massive national security not just vulnerability, 0:08:19.680 --> 0:08:24.600 but loss. The same things happening with China right now. 0:08:25.480 --> 0:08:28.040 I keep repeating it because it is so important that Chinese. 0:08:28.160 --> 0:08:30.920 We don't even know how much the Chinese are stealing. 0:08:30.920 --> 0:08:35.160 And the difference now is that they don't have to 0:08:35.200 --> 0:08:38.720 have people working in the Manhattan projects, right they don't 0:08:38.720 --> 0:08:42.920 have to, although, by the way, the extent of old 0:08:42.920 --> 0:08:47.040 school Chinese espionage too. I'm sure there's a lot going 0:08:47.080 --> 0:08:49.000 on that not just the public doesn't know about, but 0:08:49.120 --> 0:08:51.640 nobody in this country knows about, including the people whose 0:08:51.720 --> 0:08:57.960 jobs are to prevent any theft of intellectual property or 0:08:58.080 --> 0:09:03.360 or military or intelligency secrets by the Chinese. This has 0:09:03.440 --> 0:09:07.280 been their m O for decades now. This has been 0:09:07.280 --> 0:09:09.720 going on for quite a while, and because of the 0:09:09.720 --> 0:09:12.520 Internet and because of connectivity, a lot of it can 0:09:12.559 --> 0:09:16.920 be accomplished via cyber and what would have taken one person. 0:09:16.960 --> 0:09:19.199 I mean, I've gone back and I've told you before 0:09:19.240 --> 0:09:22.520 about the Metroken Archives. It's worth it. Get it that 0:09:22.559 --> 0:09:24.240 you can get a copy. I think you can even 0:09:24.280 --> 0:09:26.439 a lot of it's been posted on the internet for free. 0:09:26.880 --> 0:09:28.720 You want to see the kind of stuff I'm talking about. 0:09:28.720 --> 0:09:30.840 What what do the KGB really do? What were their 0:09:30.880 --> 0:09:34.880 operations really like during the Cold War? You can find 0:09:34.880 --> 0:09:38.400 out because we have their archive. We have the KGBS archive. 0:09:38.480 --> 0:09:43.040 It was uh, it was published years ago after the 0:09:43.080 --> 0:09:47.640 wall fell. And when you see the extent and also 0:09:49.200 --> 0:09:52.480 honestly the risk taking of the operations they were willing 0:09:52.520 --> 0:09:55.240 to engage in, it's it's pretty breathtaking. But it was 0:09:55.280 --> 0:09:58.760 going after everything because they were trying to beat us, 0:09:58.960 --> 0:10:02.480 and they knew that if they add the economic if 0:10:02.520 --> 0:10:05.440 they had economic advantages military advantages, that was going to 0:10:05.480 --> 0:10:07.920 be critical. You know, we're both big countries with a 0:10:07.920 --> 0:10:11.199 lot of natural resources and devoted you know, devoted populations 0:10:11.240 --> 0:10:16.320 at the time two one ideology or the other. So 0:10:16.440 --> 0:10:19.440 what we see with China right now is at that level. 0:10:19.480 --> 0:10:20.760 We don't think of it that way. We got all 0:10:20.760 --> 0:10:23.280 the free traders people think tanks in DC are sitting 0:10:23.280 --> 0:10:25.160 around talking about how, oh, it's so great and look 0:10:25.200 --> 0:10:27.520 at all the cheap stuff in Walmart. That's true, but 0:10:27.600 --> 0:10:29.440 that comes with a cost, and not just a cost 0:10:29.480 --> 0:10:35.000 to your credit card. It's a cost of the US 0:10:35.120 --> 0:10:38.240 as the global superpower over the long run if we 0:10:38.320 --> 0:10:40.320 don't do something about it, and that is what the 0:10:40.360 --> 0:10:45.199 president is up to now. And go back and look 0:10:45.240 --> 0:10:48.160 at the Clintons didn't want to stand up to China, pushes, 0:10:48.200 --> 0:10:54.640 didn't want to stand up to China, the Obama Obama years, 0:10:54.679 --> 0:10:58.079 no standing up to China. Finally, now we were presidents 0:10:58.080 --> 0:11:00.720 saying we're we're going to change things, and we're gonna 0:11:00.760 --> 0:11:05.800 hold them accountable for this policy of just outright theft. 0:11:05.920 --> 0:11:09.080 It is stealing. It's interesting me that we have a 0:11:09.080 --> 0:11:12.200 country where people seem to understand that if you were 0:11:12.240 --> 0:11:15.520 to take all the you know, if you were to 0:11:15.520 --> 0:11:18.120 to set up your own network and you were to 0:11:18.200 --> 0:11:21.880 call it BNN for the Buck News Network, and all 0:11:21.920 --> 0:11:24.200 I did was just take everything that was on CNN 0:11:24.280 --> 0:11:26.680 and run it on BNN, You'd say, well, you're you're stealing. 0:11:26.720 --> 0:11:29.400 You can't do that. I'd say, well, but does it 0:11:29.520 --> 0:11:31.680 really matter because I just have it and they have it, 0:11:31.679 --> 0:11:33.240 and I'm gonna monetize it and they're gonna have it. And 0:11:33.200 --> 0:11:34.959 And he said, well, yeah, of course it matters. Right, 0:11:35.480 --> 0:11:38.120 It is theft. It is stealing. Although the Buck News Network, 0:11:38.679 --> 0:11:42.280 I think I'm onto something. I think that would BNN 0:11:43.080 --> 0:11:45.160 we could do like a whole series of parody skits. 0:11:45.520 --> 0:11:48.120 And I'm like, let's interview a few more porn stars. 0:11:48.200 --> 0:11:50.600 Maybe they met Donald Trump at one point in time. Hey, 0:11:50.800 --> 0:11:52.560 do you ever meet him? You know, let's go to 0:11:52.600 --> 0:11:54.600 some strip clubs in Florida and just see if anybody 0:11:54.640 --> 0:11:56.559 happens who have ever met Donald Trump. That'll be a 0:11:56.559 --> 0:11:59.560 great assignment for our reporters. That actually happened, by the way, 0:12:00.280 --> 0:12:04.040 at CNN, not at BNN. So there you go. Yeah, 0:12:04.080 --> 0:12:05.959 and the producer Mike is saying that you know, this 0:12:06.000 --> 0:12:08.959 is this we were onto something here, but theft of 0:12:09.000 --> 0:12:14.760 inntellectual property we understand as actual theft and something that 0:12:15.880 --> 0:12:19.800 we people be sued for it and there has to 0:12:19.840 --> 0:12:24.480 be protection of it because otherwise, what's the what's the 0:12:24.480 --> 0:12:26.080 point of R and D, what's the point of putting 0:12:26.120 --> 0:12:29.520 forward all of this, all the resources to create, to 0:12:29.640 --> 0:12:32.400 be a producer if you can just steal, well that 0:12:32.480 --> 0:12:33.959 Chinese even getting a free ride on a lot of 0:12:33.960 --> 0:12:38.120 this stuff for a long time, they've been stealing. That's 0:12:38.640 --> 0:12:42.360 it is theft. It is theft. And our companies go 0:12:42.440 --> 0:12:45.280 up against their companies. They are now putting restrictions on 0:12:45.320 --> 0:12:47.440 the kind of exactly the kind of projects. Remember, I 0:12:47.440 --> 0:12:48.840 think it was a week or two ago I said 0:12:48.840 --> 0:12:53.400 that what the what the Chinese love to do is say, hey, ge, hey, IBM, 0:12:53.640 --> 0:12:55.880 let's do a joint venture. We're going to give you 0:12:55.920 --> 0:12:58.280 access to our huge market. You're gonna sell a lot 0:12:58.280 --> 0:13:00.720 of stuff which will make your shareholders have but you're 0:13:00.760 --> 0:13:03.760 also gonna have to give us your semiconductor technology. You know, 0:13:04.160 --> 0:13:06.840 you're also gonna have to show us how small you 0:13:06.840 --> 0:13:09.760 can really make those microchips for that project or whatever 0:13:09.800 --> 0:13:15.640 the case may be. This is this is meaningful and 0:13:15.760 --> 0:13:18.640 what it what it really comes down to is there 0:13:18.679 --> 0:13:21.760 are considerations that have to go into our discussions of 0:13:21.800 --> 0:13:25.000 trade with China that aren't just about how do we 0:13:25.040 --> 0:13:28.560 make the most money the fastest. You know, you you 0:13:28.920 --> 0:13:33.400 might have a great business plan for selling PlayStation four 0:13:33.440 --> 0:13:36.319 in Iran, but if you try, you're well, actually, I 0:13:36.320 --> 0:13:38.000 don't know what the laws are right now based on 0:13:38.120 --> 0:13:41.520 the Obama air sections, but they're generally speak if you try, 0:13:41.520 --> 0:13:43.400 you're probably gonna go to prison because there's all all 0:13:43.520 --> 0:13:46.240 kinds of criminal restrictions on what kind of business you 0:13:46.280 --> 0:13:51.040 can do with the Iranians. Right, So we understand that 0:13:51.040 --> 0:13:52.840 there's more than just how do you make money here? 0:13:54.040 --> 0:13:56.920 We understand that there is a long term plan that 0:13:56.920 --> 0:13:59.200 has to put into effect. Does that mean it's gonna 0:13:59.200 --> 0:14:00.920 come without some pain in the show? I don't think so. 0:14:01.480 --> 0:14:03.680 I think this is gonna be It's gonna be rough. 0:14:04.760 --> 0:14:07.320 You better strap in here because the Chinese are gonna 0:14:07.360 --> 0:14:11.520 push back. It's like we finally decided no more free ride, 0:14:12.640 --> 0:14:15.880 no more free ride. And a lot of folks who 0:14:16.280 --> 0:14:18.640 just like the status quo because the status quo was 0:14:18.720 --> 0:14:21.880 enriching them personally or riching their business are going to 0:14:23.960 --> 0:14:28.720 kick and scream about this. But we need to understand 0:14:28.880 --> 0:14:31.840 what's really at stake here. And uh, well, I don't 0:14:31.880 --> 0:14:38.160 think that we are quite as on a dangerous path 0:14:38.200 --> 0:14:40.560 as you were with the Soviets, with the with the Chinese. 0:14:40.760 --> 0:14:45.200 Give it some time. History tends to suggest that it's 0:14:45.280 --> 0:14:48.120 unlikely that two superpowers are gonna stay best buddies for 0:14:48.160 --> 0:14:50.920 all that long. We got a whole lot more show. 0:14:50.960 --> 0:14:52.440 I gave you a sense what's coming up. If you 0:14:52.480 --> 0:14:56.120 want to weigh in by all means eight four five 0:14:56.160 --> 0:14:59.320 eight four four n buck, we will hit a break. 0:14:59.360 --> 0:15:01.200 I gotta talk to you you us Omnibus Bill. We've also 0:15:01.200 --> 0:15:05.920 got Gordon Chang who will be joining us shortly to 0:15:05.960 --> 0:15:09.720 talk about what he thinks of all this China. Massy's 0:15:09.760 --> 0:15:13.720 my among my very favorite analysts on all things China, 0:15:13.840 --> 0:15:15.800 so we'll have him joining us a few minutes. Stay 0:15:15.840 --> 0:15:28.840 with me. We're losing three hundred and seventy five billion 0:15:28.880 --> 0:15:31.920 dollars with China. It could be five hundred and four billions, 0:15:32.080 --> 0:15:34.360 depending on the way you count, a lot of different 0:15:34.360 --> 0:15:37.120 ways of counting, but no matter how you count, it's bad, 0:15:38.000 --> 0:15:42.400 and we're doing something that will be the start of 0:15:42.440 --> 0:15:46.040 making trade with China more fair. It was so far 0:15:46.120 --> 0:15:49.400 down and our presidents, frankly, our past president should never 0:15:49.480 --> 0:15:51.960 have allowed this to happen. This has been many, many 0:15:52.040 --> 0:15:56.160 years now. I think there's another another approach or another 0:15:57.280 --> 0:16:00.080 way to analyze what we're doing to China how it 0:16:00.120 --> 0:16:04.920 could respond, which is, you know, how outrage can they 0:16:04.920 --> 0:16:07.160 really be that if they're going to charge a you know, 0:16:07.200 --> 0:16:09.480 a fifteen percent terraf on something, we'll charge a fiften 0:16:09.800 --> 0:16:14.000 terrafons if we catch them stealing our intellectual property, we're 0:16:14.000 --> 0:16:18.240 gonna retaliate. But on the trade issue, where it really 0:16:18.320 --> 0:16:23.440 is about the numbers. Seems to me that this should 0:16:23.480 --> 0:16:26.800 be reasonable minds could prevail here. You know, I don't 0:16:26.800 --> 0:16:29.080 think they will on the Chinese side of things, because 0:16:29.080 --> 0:16:31.560 they like the advantage that they've had and they've got 0:16:31.560 --> 0:16:35.320 their own domestic political considerations to worry about. Very interesting 0:16:35.360 --> 0:16:38.440 I mentioned I like to talk about the Soviets because 0:16:38.480 --> 0:16:41.040 I think that puts it into that starts to put 0:16:41.080 --> 0:16:43.200 us in the frame of mind here where. But instead 0:16:43.240 --> 0:16:45.840 of thinking about it first and foremost as a military 0:16:46.800 --> 0:16:51.280 competition between two superpowers, were an economic competition between two superpowers. 0:16:51.760 --> 0:16:54.600 But this was a quote that I saw online is 0:16:54.600 --> 0:16:57.400 actually in The Times from a former China analyst for 0:16:57.440 --> 0:17:01.760 the FBI who said the following The Times quote. If 0:17:01.760 --> 0:17:04.879 a beach were a target, the Russians would send in 0:17:04.920 --> 0:17:08.240 a sub frogmen would steal ashore in the dark of 0:17:08.359 --> 0:17:11.239 night and collect several buckets of sand and take them 0:17:11.280 --> 0:17:15.879 back to Moscow. The US would send over satellites and 0:17:15.960 --> 0:17:20.480 produce reams of data. The Chinese would send in a 0:17:20.560 --> 0:17:25.040 thousand tourists, each assigned to collect a single grain of sand. 0:17:25.920 --> 0:17:28.360 When they returned, they would be asked to shake out 0:17:28.400 --> 0:17:31.440 their towels and they would end up knowing more about 0:17:31.520 --> 0:17:37.040 the sand than anyone else. In other words, the Chinese 0:17:37.760 --> 0:17:44.119 have infinite patients end quote. Uh, that's what we're up 0:17:44.160 --> 0:17:47.479 against now you're starting now. It all makes sense, right, 0:17:47.560 --> 0:17:51.120 A cyber theft here, economic espionage, They're all the things 0:17:51.119 --> 0:17:55.600 that we're seeing over the long term. China wants to 0:17:55.640 --> 0:17:59.600 be able to dictate global economic policy. China thinks that 0:17:59.640 --> 0:18:03.280 it wood in the future become the country that everyone 0:18:03.359 --> 0:18:08.280 turns to for leadership, for direction, for orders. However, however 0:18:08.320 --> 0:18:12.280 it all shakes out. Um, So I think we need 0:18:12.320 --> 0:18:16.480 to start looking at this in that context, and everything 0:18:16.520 --> 0:18:18.080 I'll started to make a lot more sense. We've got 0:18:18.080 --> 0:18:19.959 Gordon joining us. I know, I meant to get to 0:18:20.000 --> 0:18:23.720 the Omnibus bill. I will right after Gordon joins us here, 0:18:23.840 --> 0:18:27.919 and we're gonna get into this. Look, guys, you know, 0:18:28.160 --> 0:18:31.520 I voted for Trump because he's a vessel for an agenda. 0:18:32.000 --> 0:18:35.639 He's agenda and it needs to be enacted. And I 0:18:35.640 --> 0:18:38.840 don't want to hear all the kind of both sides 0:18:38.840 --> 0:18:40.760 of the mouth talk from Paul Ryan about how you 0:18:40.760 --> 0:18:43.240 know this is a good spending bill, because it's not. 0:18:43.800 --> 0:18:46.600 We'll talk more about that though. Stay with me. I've 0:18:46.760 --> 0:18:51.720 been speaking with the highest Chinese representatives, including the President, 0:18:52.040 --> 0:18:55.160 and I've asked them to reduce the trade deficit immediately 0:18:55.359 --> 0:18:58.920 by one billion dollars. It's a lot, so that would 0:18:58.920 --> 0:19:01.920 be anywhere from twenty five percent, depending on the way 0:19:01.960 --> 0:19:04.960 you figure two maybe something even more than that. But 0:19:05.280 --> 0:19:07.360 we have to do that. The word that I want 0:19:07.359 --> 0:19:12.720 to use as reciprocal. When they charge for a car 0:19:12.760 --> 0:19:16.160 to go in and we charge two percent for their 0:19:16.200 --> 0:19:19.040 car to come into the United States, that's not good. 0:19:19.320 --> 0:19:24.560 That's how China rebuilt itself. President Trump speaking about China 0:19:24.840 --> 0:19:28.679 and tariffs and closing the trade gap earlier today. As 0:19:28.760 --> 0:19:32.440 you know, uh, markets not reacting so well to it, 0:19:32.440 --> 0:19:34.960 at least for today. But we take a longer view here, 0:19:35.080 --> 0:19:37.040 and to help us take that long view, we've got 0:19:37.080 --> 0:19:40.000 Gordon Chang on the line. He is the author of 0:19:40.080 --> 0:19:42.520 The Coming Collapse of China. Also you can go to 0:19:42.560 --> 0:19:45.359 Gordon Chang dot com for all of his latest Gordon, 0:19:45.400 --> 0:19:48.320 thanks for joining. Thank you so much. Buck. What do 0:19:48.320 --> 0:19:50.520 you think about the President's announcement? Let's just start there. 0:19:51.760 --> 0:19:54.360 I think it was absolutely necessary. You know, no one 0:19:54.400 --> 0:19:58.480 wants to um engage in what could be the beginning 0:19:58.760 --> 0:20:01.440 of a very long cam pain and struggle with China. 0:20:01.760 --> 0:20:04.840 But unfortunately, um, you know, we've tried every other thing 0:20:04.920 --> 0:20:08.320 trying to accommodate the Chinese, and it hasn't worked. So, 0:20:08.400 --> 0:20:11.280 for instance, we had that September two thousand fifteen agreement 0:20:11.320 --> 0:20:14.800 between President Obama and Sie Jumping announced in the Rose 0:20:14.840 --> 0:20:18.199 Garden that neither country would steal the commercial secrets of 0:20:18.240 --> 0:20:21.320 the other. Well, you know, the Chinese just continued to 0:20:21.440 --> 0:20:23.760 do that, and so, um, you know, at this point, 0:20:24.040 --> 0:20:26.800 we have no choice but to impose severe costs on China. 0:20:27.080 --> 0:20:30.199 No one likes it, but unfortunately there's no choice. What 0:20:30.200 --> 0:20:32.840 do you think the Chinese reaction to this is going 0:20:32.880 --> 0:20:37.040 to be, Well, they said that they don't want to 0:20:37.080 --> 0:20:40.200 see the start of a trade war, which is incorrect 0:20:40.400 --> 0:20:43.399 because you can accuse President Trump with many things, but 0:20:43.520 --> 0:20:45.840 you can't accuse him of starting a trade war with 0:20:45.920 --> 0:20:49.080 China because the Chinese have been engaged in a trade 0:20:49.080 --> 0:20:53.639 war against us for decades and we have been oblivious. So, um, 0:20:53.680 --> 0:20:55.600 you know, the Chinese will huff and puff, but we 0:20:55.680 --> 0:20:57.919 got to remember they don't really have very many cards 0:20:57.960 --> 0:21:01.560 to play, because last year, eighty eight point eight percent 0:21:01.680 --> 0:21:05.439 of their overall merchandise trade surplus related to sales to 0:21:05.480 --> 0:21:08.920 the United States, and that's up from an already astounding 0:21:08.960 --> 0:21:12.679 sixty eight point zero percent in two thousand sixteen. You 0:21:12.760 --> 0:21:16.600 just can't battle with them a trade deficit country and 0:21:16.680 --> 0:21:19.959 expect to win. Gordon, we know that China has been 0:21:19.960 --> 0:21:24.480 engaging in currency manipulation. It has tariffs up. Trump has 0:21:24.520 --> 0:21:27.080 been sounding the alarm about this actually not just during 0:21:27.080 --> 0:21:30.480 his presidency in campaign, but for a long time before 0:21:30.560 --> 0:21:33.479 that as well. Uh. Do do you think that this 0:21:33.600 --> 0:21:36.000 is going to affect the way that we deal with 0:21:36.080 --> 0:21:38.399 China though? On other issues? I mean, essentially, are are 0:21:38.400 --> 0:21:41.080 they going to make our lives harder now dealing with 0:21:41.080 --> 0:21:43.879 North Korea and in other places? I mean, or is 0:21:43.880 --> 0:21:46.159 this going to be mostly restricted to a trade to 0:21:46.200 --> 0:21:50.320 trade issue? I don't think it will be restricted. You know, 0:21:50.359 --> 0:21:52.520 the US for a very long time has tried to 0:21:52.600 --> 0:21:55.639 stove pipe, as they say, in other words, to not 0:21:55.840 --> 0:22:00.720 let trade disputes effect, for instance, cooperation on climate control 0:22:00.840 --> 0:22:04.480 or whatever. Um. You know, at this particular time, though, UM, 0:22:04.480 --> 0:22:06.679 I don't think the Chinese think that way, and I 0:22:06.680 --> 0:22:09.560 don't think we should think that way either, um. But 0:22:09.680 --> 0:22:12.560 I do believe that if we impose costs on Beijing 0:22:12.640 --> 0:22:15.440 that are so severe that they very well may have 0:22:15.520 --> 0:22:18.520 no choice but to be better on other issues such 0:22:18.520 --> 0:22:23.119 as North Korea. You know, this is gonna get very difficult, UM, 0:22:23.160 --> 0:22:26.440 but we hold high cards. And the only way Chinese, 0:22:26.480 --> 0:22:29.199 the Chinese, can win a trade war with us is 0:22:29.240 --> 0:22:34.200 if we refuse to exercise the political will. Um. That's necessary, 0:22:34.240 --> 0:22:36.560 but we have all the tools in the toolbox, as 0:22:36.600 --> 0:22:38.960 they say, so we should win this one now for 0:22:39.040 --> 0:22:42.280 people out there, just so everyone understands what the likely 0:22:42.760 --> 0:22:45.720 near term ramifications are. And everyone're speaking to Gordon Chang. 0:22:45.760 --> 0:22:48.119 He's the author of The Coming Collapse of China and 0:22:48.160 --> 0:22:51.240 he also writes for various publications. You can see everything 0:22:51.280 --> 0:22:56.920 at Gordon Gordon Chang dot com. Uh Gordon. The paying 0:22:57.000 --> 0:23:01.240 for the Chinese side of the equation will be what, well, 0:23:01.240 --> 0:23:06.280 it could very well be UM throwing their economy into um, 0:23:06.320 --> 0:23:08.560 you know, into chaos and turmoil. Could be the end 0:23:08.560 --> 0:23:11.800 of the Chinese political system as we know it. Um. 0:23:11.880 --> 0:23:14.359 All sorts of things could happen because right now China 0:23:14.560 --> 0:23:17.320 is not growing at the six point nine pace that 0:23:17.359 --> 0:23:19.880 they claim for last year. It's actually growing at less 0:23:19.880 --> 0:23:22.359 than half that which means the U s economy is 0:23:22.480 --> 0:23:26.400 legitimately growing faster than China's. Um. They've got a lot 0:23:26.440 --> 0:23:28.800 of debt. They're accumulating debt at the pace of about 0:23:29.480 --> 0:23:33.359 a year. They're in trouble and UM so anything that 0:23:33.400 --> 0:23:37.720 Trump can do to um undermine confidence in China will 0:23:37.760 --> 0:23:41.600 go a very long way to changing the Chinese political system. UM. 0:23:41.640 --> 0:23:44.959 That's not our goal, of course, but UM, we have 0:23:45.160 --> 0:23:48.040 the ability to put c jumping out on the street. 0:23:48.359 --> 0:23:51.080 What's the good side of this? Now? So let's let's 0:23:51.080 --> 0:23:53.960 say that Trump nax I mean, you already did sign 0:23:54.040 --> 0:23:57.119