broadcasting live direct from our studios in central moscow this is our team glad you're with us russia and china veto the un security council's resolution on syria at a vote in new york moscow wanted all references to regime change taken out of the draft . over two hundred thousand people have braved the bitter cold across russia to ensure their views on national politics are heard one group are demanding fair elections marched through the streets and others rallied in support of the current leadership. and fighting between police and protesters

continues in egypt with twelve people killed and hundreds more injured in the latest crackdown. right now artie's financial group max kaiser discusses the shaft of american assets wealth and jobs because reports next. max kaiser this is the cause the report who got the vapors statement max the vaporized and the deleted it's the american soap opera money from m.f. global feared gone nearly three months after m.f.

global collapsed officials hunting for an estimated one point two billion a missing customer money increasingly believe that much of it might never be recovered the findings so far suggest that a significant amount of the money could have been vaporized yeah this vaporize their one point two billion may have been vaporized now the same people say that they can search through a stack of a billion tweets and find one with some offending text that would necessitate the detention of british people or a u.s. airport the same people who can track a razor that was sold at wal-mart ten years ago in a landfill emitting some kind of or if i did that would account for some inventory adjustment as part of an accounting for wal-mart as part of the overall accounting for that is us economy that is the overall kind for those wall street is your accounting for others constitution are saying that oh one point two billion. i

thought it was a must stop the only one who can get away successfully with that kind of defense are pimps in harlem oh that's right you are pimping for column well they claim that as a result of the chaotic trading the week before the firm collapsed and remember also . we learned that banks can now trade at a speed faster than the speed of light so perhaps they're trying to use physics and quantum physics as a sort of excuse for their reckless behavior that well their crimes don't like shooting or scat but experiment in quantum physics was if the cats share the cats there he's dead he's not dead so they're trading it faster than the speed of light so one point two billion it was a phase shift the money exists but it's in a parallel universe by the way there's a parallel universe called the securities exchange commission apparently you can commit any for confront you want and you don't have to pay any kind of penalty or go to jail certain people of course now jesse's café american looks at this m.f.

global vaporize story and sees essentially a cover up using as well the media the media is complicit in this and allowing j.p. morgan we know that the money has been found in j.p. morgan's accounts that j.p. morgan was coincidentally owed one point two billion dollars m.f. global a despicable state of affairs this entire sharod has been cloaked with the public relations campaign using terms like missing vaporised and mystery to describe the customer assets as if no one really knows where the funds had gone which to see if t.c. has explicitly stated months ago is not the case you know they can have an economy counting procedures that are adequate to track down a bill that member lost seven billion in iraq when with a dry air lifted of seven billion to payoff brothers and one missing donald

rumsfeld wink wink so here you are missing one billion dollars you get a lot of people starving to death in the gutter in america but the collateral damage of care is the losers you mentioned donald rumsfeld and the flu the war in iraq and there were terms like there are known unknowns and unknown unknowns and unknown. unknowns and this is the same sort of excuse that m.f. global and j.p. morgan are you saying it's unknown whether we know whether we took the money or not yet we're not sure whether we stole the money he's just sitting in front of a stack of cash jamie diamond says i don't know who are good a good well by the way you know vulture funds are offering eighty five cents on the dollar for m.f. global customers so though be interesting to actually see these vulture funds you know where you see them shaking down african nations whether or not they could get away with shaking down the third world dictator like jamie diamond right the economic hitmen then the vulture funds that operate in the third world latin

america they go down there they don't get the money that throw a dictator out of a plane down there in central america south america so presumably we're going to see jamie diamond falling from the sky one of these days from one of the bolts or funds or forgot a parachute there is jamie splat well returning to this soap opera of america mega trash fifty million users data set to be deleted. so you know mega upload was shut down by the department of justice they had a ten day warrant search warrant they took all the data they needed and they said here to the host the service providers they said you can delete any data you want now now there's some controversy or not whether they'll allow customers to actually retrieve their data but the fact is joe baca donuts who has his own data upload it's a mega upload he's deleted well that's a pattern of destruction of private property america supposedly the capital system

is built on private property not the communal property of the defunct political systems of bygone days of communalism no no we have private property doesn't make the country so grade all except one we lost the billion dollars for jamie's bonus then we had to steal it from you because oh the mega upload data we had to steal that too because private property is just an idea but we don't respect it here in this country you know hyatt wrote that book the road to serfdom which is supposed to be a treatise against communal property what happens when the so-called lefties take over it turns out he was right except the threat is from the right wing wholesale faffed of all private property so it doesn't fit in with the ideology of america let's kill all the great bull let's go everybody that's the current

white house mode of thinking assassinations and wealth confiscation destruction of private property thank you obama yes well. well actually he's in the next headline speaking of the vaporized and deleted much of the population of america have had their jobs and their wealth and their income vaporized and deleted obama tells woman interest unemployed husband can't find jobs so here's a woman in texas and her husband. is a an engineer and she's asking why he can't find a job jennifer go ask you what kind of engineer your husband is he's a semiconductor engineer the. it is interesting to me that and i'm not what i said if you send me rosebuds resume i'd be interested in finding out exactly. what's happening right there because the word we're getting is that somebody in that kind of high tech field that kind of engineer should be able to find something

. right away you know there are jobs available. describe them but they're in china and india and one of the other great travesties of this age of globalization or non globalization is that americans who want to get those jobs in india and china that were sent to those countries they're not really allowed to go into those countries don't work at those jobs they're stuck in that prison industrial nightmare that is united states of america ending up being incarcerated by corrections corps of america in the prison industrial complex be a good american get some to jail but you can't get a job you can't go to china and india to get a job the wealthy can move their money to china and india my money moves around the world a lot easier than i can believe me when i go to cross the border they stick something up my strange friends saying oh are you really afraid of jamie's because if you're not we're going to come project your strength training all your friends of jamie all out of this country well obama promised that if she sent him her husband's resume he would go looking for

a job for her but he's going to have to go to china of course because despite obama's hangout hope us some a conductor jobs are still going away so the national science foundation reports that domestic high tech manufacturing jobs have declined by twenty eight percent since two thousand some six hundred eighty seven thousand jobs even r. and d. research and development is increasingly being performed over. by a large multinationals three speed report so yes if you can build something for the web it may be easy to score a job at facebook or google or as an app developer but for americans like this woman's husband a semiconductor engineer your chances of finding a job are pretty slim no one should do is take a ball peen hammer or a large phone book and slap them soft on the head really hard to leave some of my unconscious then go on facebook and get on a game like farmville or factory bill or plant

a veil or america bill and pretend to be working virtually in a real go make sure you're not really conscious because you don't want the reality of this to set in and at the end of a day or two you've accumulated enough facebook credits to buy yourself a cup of coffee and then you know go stimulate your brain with caffeine and say look honey i'm working in a factory don't tell her it's a virtual factory in your working you know seventeen eighteen hours a day for a dollar and that might have set or well we talked about the vaporized and deleted but you know matter and energy are neither created nor destroyed the jobs it appears are all sound healthy and well and to have been found china's factories in strong start to two thousand and twelve the chinese manufacturing sector has made a surprisingly strong start the year with domestic orders cushioning the impact of europe's debt woes according to an official survey the purchasing managers index an important gauge a factory growth rose to fifty point five in january from fifty point three a month earlier anything above fifty means manufacturing is growing how many and

chinese as it take to screw in a lightbulb a million but they still have a better job than a million americans well as they say even though europe is collapsing and their imports from china are slowing domestic consumption in china which now have all these great jobs it's growing plus china doesn't want to see the dollar do very well either they'd rather have the euro survive so that's another part of the currency wars. well as the china money report says and i know you're interviewing daniel collins in the second half americans to become share croppers and their own country as printed money boomerangs back to the developed world to buy up companies so you know the big news this week was that sanny a chinese company has is buying putzmeister a german concrete pump maker one of those legendary middle stand companies in germany the heart the backbone of german industrial strength well then

a call and says for decades asia has performed the role of the diligent worker bee without a history of adam smith and free trade they saw how easy it was to game the free trade system to this day koreans do not buy japanese goods and japanese do not buy korean goods neither one will buy us goods the stuff they do want like hollywood movies they just take the us took the brunt of the free trade economic carnage as over fifty thousand factories have closed down in only the last ten years in america no one could labor arbitrage and transfer price their taxes away like corporate america we are still number one in that game right sharecroppers remember warren buffet said a few years ago that america would become a nation of sharecroppers look at up do the search is exactly what he said and he also went to germany hoping to buy some of these middle stand companies he was their member of for a few years looking to buy anything now it turns out that the chinese are actually

buying up those companies another two or three years and as i've been predicting america's number one x. four will become american labor will be cotton pickers or back to the plantation you know but only a few of you can live in the big house all right stay server thank so much for being on the kaiser report thank you max doug away much more coming your way so stay right there. and. well. technology innovation all the developments from around russia we've got the future covered.

welcome back to the kaiser a part of downtown are up at the ballot yeah sharecropping plantation known him american economy ok let's go to shanghai and speak with dan collins of the china money report dot com dan collins welcome back to the kaiser report thanks max good to be back all right dan collins you say that americans are sharecroppers in their own country explain yeah this original data from an article i wrote trying to get my mind around the concept of oh all of these good decades of printed money and trade surpluses are going to get recycled back into the american economy. leave it to us now the many of the politicians and if you thought leaders there believe that we can continue to print money to get our way out of this but what they forget is

it debts have owners and you look at china now with three point two trillion in currency reserves japan over a trillion i believe a lot of this money now sitting in asian central banks are going to fight its way back into united states back in the euro by you know real companies. we saw on christmas this year is two thousand and eleven. japan and china signed a new currency swap. where they said openly and publicly that they want to move their trade into their local currencies and get out of the dollar we're starting to see treasury sales china as lowest moment treasuries in over eighteen months so they're down about one point one trillion. russia's old half their treasuries last year so i think as we start to see that continue dollar debasement coming out of the united states what people enough factored in is what about all of these this money sitting all over the world what's going to happen to it this last week in

germany we saw a chinese company son he purchased for about five hundred million dollars a very large german company and we're going to start to see this we're going to see asian countries start taking this money send it back to developed markets and buy a real companies with it and it's going to be a major trend i think coming in the future all right well in the united states at sam's like they're prepping. the landscape for at these chinese companies to come in and buy. strategic u.s. assets they they have totally destroyed the unions they've introduced the president dr complex make it very easy to put people in prison they have more of a chinese style state capitalism now with the politburo of the federal open market committee it's no longer a free market capitalism so laying the groundwork for a chinese you know setting the table so that the china can come in and buy a company and hit the ground running so to speak without too much problem so it

sounds assumes like america is doing its best to accommodate their new overlords the chinese now many common commentators in america of course dismiss china as the low wage low value manufacturer of global predominance these what are your thoughts yeah there's a lot of. chinese sears goes a recent articles last few weeks in forbes by gordon charles who's a big. chinese here read a book called the coming collapse of china the only problem was he wrote a book in one thousand nine hundred eight. so we look at the structure of the chinese economy what is china export united states what does the united states export to china look at the real numbers the major exports from united states to china last year was cornered so we beings scrap steel and scrap plastic looks more like a eighteenth century economy what we see in united states the other hand what you

see is china exporting their number one export united states is now electronic equipment. manufacturer may factor look tronics so china story twenty years ago on the low wage low value added in oh did serry new order go in many american companies are going to get global competitors coming out of china in future yeah you mentioned scrap metal scrap paper yeah if you look at the list of exports from the top twenty states that export to china from the united states number two or number three on the list is always garbage america's excellent exporting its garbage to china like scrap paper for example which of course china recycles into cardboard cardboard boxes and resells back to united states and has made many many billions of dollars for people over there who are not afraid of doing a day's work of course in america that's not in the cards anymore it's more about

getting that electronic payment down there at the wal-mart to pick up some baby formula now stephen roach and jim rogers are almost alone amongst western commentators in praising the medium to long term for chinese economy and claiming that any short term housing market or economic slowdown will be a soft landing so those guys are in the pro china camp. you're there in shanghai. so it's not it we there whether it's a soft landing or a hard landing you're saying whatever the landing is doesn't make much difference the one clear trend is that they're going to take their cash pile of money. and start buying into countries like the us correct yep salut i think when we talk about the chinese economy a lot of the anti china stuff that relates to housing you know the americans have for twenty years lived in a printed money transfer payment military industrial complex economy they just went through a housing bubble so they believe everybody should have

a housing bubble but they all realize here is half of the homes in china have been paid with cash the other half have at least thirty percent downpayment so there is no credit bubble so to speak in housing. china has experienced some what you could slow down if you could call it a slowdown you know eight or nine percent g.d.p. growth but really what the people forget is that this is an engineered slowdown channel wanted to slow down the economy growing at twelve percent a year it was too fast with the high inflation environment with with all these central banks continually printing money last year a corporate loan now in china is nine percent. there's direct korean laws to stop people from purchasing homes so you can only literally purchase one home right now you can't purchase another one if you already own one so i don't see a troubled economy in county where you people are buying cars and homes for cash and where you have to try to slow down the growth i see the big trouble in united

states where last year we went into a five trillion dollar debt gap adjusted debt which is on balance sheet off balance sheet liabilities to create one percent g.d.p. growth that's more what i'm worried about let's move on to mug all for a second because forbes that mouthpiece of the entranced kleptocracy is recently talking about why china is buying ball because it's capital flight and it's nasr teats again anyway but it seems we hear a lot of people talking about strategically china want to buy gold insulate itself against a collapsing doll. are your thoughts yeah buying gold it you know forces obviously working their own agenda here behind gold in china and capital flight are is actually there's actually no correlation there last week beijing daily reported there was over one hundred million dollars in gold sales in beijing alone they go

upstairs stores headlines out the door and gold is really become a big chinese new year's gift here in china its sales in the first week after new years were up fifty percent from last year this gold is not. going over seas with people leaving planes it's getting put into family has to be handed down generation after generation the capital flight issues are entirely separate issue if you look at the very you know a lot of the wealthy people in china there is a lot of the corruption here no doubt there's a lot of ill gotten gains and a lot of capital flight is due to some people in china they versifying their assets if they're ever. caught or where if you know somebody discovers what what how they've made their money they need to get away plan and there are some people that have prepared that that's where most of the capital flight issues are coming from i have got a couple of minutes left i want to cover some topics here you recently compare the

chinese and u.s. economies but it is the manipulated g.d.p. numbers but on raw data simply wanted to find and collins yeah find g.d.p. is a you know really have some problems with it it's almost an obsession with a with the american academics. but in reality does anybody really look out the window as they fly over the cities in the united states look at detroit cleveland buffalo and now the empty suburbs near vegas where is the economic growth you know i just don't see it i take a look at the numbers you know the u.s. of the fifteen trillion dollar g.d.p. and china has a seven trillion dollar g.d.p. which means united states roughly you know more than twice as large as china but china makes ten times the amount of steel three times as many vehicles they purchase they consume twice as much beer they export three times as much as many

high tech exports as the united states does. three times as much cotton five times as much coal other lists go on and on the so the cell phone markets three times as large so i'm just wondering how you know if we get duct printed my. any government transfer payments what would the g.d.p. of the united states really be you know i think that's really a bubble that nobody sees is that the american g.d.p. is a complete fabrication and i'd also highlight the manufacturing numbers you know many people including academics high level policymakers the next states will tell you well we don't need to worry united states is still the largest manufacturing economy you know the federal reserve has admitted they don't break up the value add in those numbers so you know you know this is nine million people working in manufacturing i can drive within an hour of where i'm sitting right now if i nine million people working in manufacturing there is no way the united states has a larger manufacturing economy than china yet we still live by these allusions on

our numbers but not nobody pretends that america as a manufacturing economy or g.d.p. tied to manufacturing is tied not to making stuff but the blowing stuff up the military industrial complex is a huge part of the g.d.p. and debt which feels the military industrial complex is huge part of the g.d.p. everything shock and awe was a huge g.d.p. booster in america right now we only got a minute left intellectual property you know china makes all the stuff but you know apple computer gets all they ip glory when it's time to going to do their own ip yeah this is the thing china struggles with they know that there. will have to see if they really can turn around i think you know japan got a rep ten fifteen years ago for not having any innovation i think that was largely overblown japanese companies learn to create their own ip korean companies learn to create their own ip i think china is on its way i mean at first when you're

developing an economy you're focused on import substitution and being able to make your own products just based off what's already out there i think now you see a lot of vehicle market you see the major car makers the general motors and ford. are doing a lot of their r. and d. electrical vehicle manufacturing or d.s.p. going to be done in china or other tailor making the cars for china that will then go all over the world so i think chinese companies are behind me they know there and we'll have to see that develop over you know that's really a soft skill and i think we'll continue to see it built over the next decade yeah they're going to be forever behind the curve unless they relax censorship because you've got to be able to say some crazy stuff to come up with some crazy ideas that get patented that drive ip that's all the time we have daniel collins thanks so much for being on the kaiser report thanks very much max and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i'm with my guest daniel collins over there in shanghai going to send an email please do so

at kaiser report r t t v dot ru until next time x. guys are saying bye off.