Latest / UK Column Radio / Why the West Panics Over China's Open-Source AI Revolution | Silk and Steel

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Why the West Panics Over China's Open-Source AI Revolution | Silk and Steel · UK Column Radio

0:00
Speaker 1: I'm glad that you can join me.
0:01
Speaker 2: Carl.
0:02
Speaker 3: I'm glad here. Glad if you hear sake good.
0:07
Speaker 2: Carl Jah and just to bring him in. Carl Jah's
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Speaker 2: host of Silk and Steel podcasts focused on China and
0:12
Speaker 2: surrounding regions and their history, culture, and politics. You can
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Speaker 2: follow Carl on Twitter at Carl Jah. You can follow
0:21
Speaker 2: him on his podcast this is I'm Sorry. You can
0:26
Speaker 2: follow him on his podcast at Steel Silk in.
0:30
Speaker 1: The letter In.
0:31
Speaker 2: You can subscribe and support this podcast on Patreon dot com,
0:34
Speaker 2: slash Silk and Steal Carl. There are several stories to cover.
0:40
Speaker 2: You sent me one which I thought was the funniest
0:43
Speaker 2: thing I had seen, despite the fact that these it's
0:46
Speaker 2: real where it's Chinese Coastguard, Philippine the Philippines Navy fighting
0:54
Speaker 2: with oars on like a little thing. And I was
0:57
Speaker 2: watching that think to myself, this is most ridiculous thing
1:01
Speaker 2: in the world. But they are very serious.
1:05
Speaker 3: It's very serious. It's very serious. It's a major escalation
1:08
Speaker 3: in the in the South China Sea tensions, but it's
1:11
Speaker 3: essentially a stick fights. It has escalated from a water
1:16
Speaker 3: gun fight to a stick fight, you know, like last
1:19
Speaker 3: time they were. You know, it was Chinese Coast Guard
1:21
Speaker 3: water cannon in the Filipino Navy and now they're bashing
1:25
Speaker 3: each other with sticks and and and the Filipino government
1:29
Speaker 3: actually issued a statement saying one of our sailors got
1:34
Speaker 3: hit over the head. And that's that's very serious. I mean,
1:38
Speaker 3: I if I was a Filipino government, I would not
1:41
Speaker 3: admit it because Filipinos are supposed to be good as
1:44
Speaker 3: stick fighting. They have there's a Filipino martial arts all
1:48
Speaker 3: around stick fighting. You know, one my one of my
1:50
Speaker 3: best friends there, buddy, he's like, he's like one third,
1:54
Speaker 3: one one quarter Filipinos, so he actually trained in the
1:58
Speaker 3: Filipino stick fight fights. So that's why I know about it.
2:01
Speaker 3: I'm like, why would you admit you lost a stick
2:03
Speaker 3: fight in the South China Sea and got a clopper
2:06
Speaker 3: over the head.
2:08
Speaker 4: Here's a video, here's a video ago of just your video.
2:19
Speaker 3: Yeah, so this is film frong.
2:22
Speaker 1: This is utterly hilarious.
2:26
Speaker 3: So this is film from the Chinese boats perspective, and
2:32
Speaker 3: you can see the Filipinos are on an inflatable boat.
2:36
Speaker 3: They're approaching the Chinese navy ship. But in the background
2:40
Speaker 3: that much larger rusting hulk. That is a Filipino Navy
2:45
Speaker 3: ship that was on purposely ran aground on second Thomas
2:50
Speaker 3: Schall back in the early nineteen ninety So the name
2:54
Speaker 3: the Filipino Navy ship is called Sierra Madre. He actually
2:57
Speaker 3: used to be a World War Two United States warship
3:01
Speaker 3: and it was given to so after the Vietnam War,
3:06
Speaker 3: US have this all the all these warship in the region.
3:10
Speaker 3: They decide to hand it over to the Filipino Navy.
3:14
Speaker 3: I think I think he might have been given to
3:16
Speaker 3: the Republic of Vietnam initially, and then you know, after
3:21
Speaker 3: Vietnam War, after the fall of Saigog, I'm sorry, liberation
3:25
Speaker 3: of Saigog, and so United States took that warship and
3:29
Speaker 3: handed over to the Philippines and Philippine renamed it Sarah Madre.
3:32
Speaker 3: So by nineteen ninety that that ship was basically a
3:36
Speaker 3: rusty piece of hulk. So what the Philippine government decided
3:40
Speaker 3: to do, They're like, okay, we have a dispute with
3:44
Speaker 3: China on the second Thomas Shaw in the South China. See,
3:47
Speaker 3: so we're gonna We're gonna use the opportunity to run
3:51
Speaker 3: this navy ship aground on the second Thomas Show to
3:54
Speaker 3: stake our claim. You know, Initially Filipino government said, Okay,
3:58
Speaker 3: our ship run aground due to weather. You know, we
4:01
Speaker 3: will toll it, don't worry. But they never told it,
4:04
Speaker 3: and instead they stick. Now there's a dozen Filipino marine
4:08
Speaker 3: station on those on the rusty hulk of World War
4:11
Speaker 3: two era ship to stake the Filipino claims. And then
4:16
Speaker 3: they have to be supplied, you know, they have to.
4:18
Speaker 3: They have to bring the fresh supply in to supply
4:21
Speaker 3: keep them supply. So what the Chinese coast guards start
4:24
Speaker 3: to do is start they start patrolling around the ship,
4:27
Speaker 3: preventing the Filipino Marines to bring in the supplies. And
4:32
Speaker 3: then that's where they get into the water gun fight
4:35
Speaker 3: and the stick fights and and uh so, more recent times,
4:39
Speaker 3: like last year, the Chinese and the Filipino side reached
4:44
Speaker 3: a Dayton agreement. At Dayton Do Agreement, the Chinese like, okay,
4:48
Speaker 3: for humanitarian reasons, will allow those Filipino Navy Navy personnel
4:53
Speaker 3: that got stranded on your ground date ship on the
4:55
Speaker 3: second time a shell to be resupplied, you know, so
4:58
Speaker 3: they stop interfering with that. While But now that Filipino
5:02
Speaker 3: government under Mama Marcos is inviting United States to place
5:06
Speaker 3: missiles on the Philippines aiming toward China. The Chinese Coast
5:10
Speaker 3: Guard is back in the area to enforce their patrols
5:15
Speaker 3: to prevent the Filipino marines to supply those six guys
5:18
Speaker 3: that get stuck on that ship. And and and then
5:23
Speaker 3: like first of all, you know, going back to what
5:25
Speaker 3: I said earlier about Filipino government, why did they even
5:28
Speaker 3: admit that got beaten in a stick fight? Is if
5:32
Speaker 3: you if you saw, if you saw in the video,
5:36
Speaker 3: the Chinese Coast Guard ship is bigger than their inflatable boats.
5:40
Speaker 3: Like why did you send small dinky in inflatable boats
5:44
Speaker 3: with smaller oars when the Chinese side have a much
5:47
Speaker 3: longer stick You know they got the reach. I mean,
5:50
Speaker 3: you send those soldiers to be clobbered over the head
5:54
Speaker 3: so we can capture on camera because they have media. Oh,
5:58
Speaker 3: like they had the filling every angle of how the
6:01
Speaker 3: Filipino sailor got plopper over the head, because that was
6:05
Speaker 3: a feature, not a bug. Because they have all these
6:08
Speaker 3: CNN people, all these media people that went to film
6:12
Speaker 3: exact that exact event, Like they send those Filipino marine
6:16
Speaker 3: and Navy personnel on those stinky little inflatable boats to
6:21
Speaker 3: be clopper over the head so they can capture it
6:23
Speaker 3: for the international media and say, look at the big
6:26
Speaker 3: batch eye and look at they're bullying us again. You know, like,
6:29
Speaker 3: if you they really want to win that fight, you
6:32
Speaker 3: just sending a bigger boats, you know, just sending a
6:34
Speaker 3: bigger boats with a longer stick. It's very simple. But
6:38
Speaker 3: that's not what they're trying to accomplish. What you're trying
6:41
Speaker 3: to accomplish is trying to play up this China is aggressive.
6:44
Speaker 3: That's why we need to invite United States to come
6:47
Speaker 3: here and establish a basis and missiles on our soil,
6:50
Speaker 3: and and and we might have to get in uh,
6:53
Speaker 3: get into the Taiwan fi for some reason that that
6:56
Speaker 3: is a whole purpose of that, that whole uh fight fight.
7:01
Speaker 2: I can't believe they're putting people on that rusty ship
7:05
Speaker 2: and having them just stay there. God, man, can you
7:08
Speaker 2: imagine being the one who gets the responsibility. All right, Bob,
7:12
Speaker 2: it's your turn to go on the rusty ship and
7:15
Speaker 2: to be there.
7:16
Speaker 1: How long are they there? By the way, how long
7:18
Speaker 1: do they have to serve on that ship.
7:21
Speaker 3: Well, okay, that that Sarah Madre has been grounded there
7:24
Speaker 3: since early nineteen nineties, So don't I hope they have
7:28
Speaker 3: a rotation. I hope they have a regular rotation. It's
7:32
Speaker 3: not like those sixth saved six. Guy, I've been there
7:35
Speaker 3: for thirty years because I was fun way.
7:40
Speaker 2: Even if it's a rotation, that's a hell of a rotation.
7:42
Speaker 2: That boat doesn't seem like it's the saftest thing in
7:44
Speaker 2: the world.
7:45
Speaker 3: It's a priven sentence. I man, it's basically you're serving
7:49
Speaker 3: on a prison term. I mean, being in the navy
7:52
Speaker 3: is already bad enough. I mean it's worse when you're
7:56
Speaker 3: you are literally on a sinking ship that was rusting,
8:00
Speaker 3: was falling apart, gradually falling apart and becoming a natural
8:03
Speaker 3: reef uh So yeah, but that's that's that's what it is.
8:07
Speaker 3: And by the way, that the whole Spratley Islands dispute,
8:10
Speaker 3: uh you know, before there was a time when I
8:13
Speaker 3: also bought into like the American arguments like, oh, it's
8:16
Speaker 3: so far from the Chinese mainland, it's a lot closer
8:19
Speaker 3: to the Philippines, so Philippines have a better claim. But
8:21
Speaker 3: when I look into the history. Uh. Now I have
8:25
Speaker 3: a different conclusion because when the Europeans first came to
8:31
Speaker 3: marine times Southeast Asia, they in the area around Sprayley
8:36
Speaker 3: Islands and Park Parasaw Islands in South China Sea. They
8:39
Speaker 3: only saw the Chinese fishermen there. And in fact, during
8:44
Speaker 3: the during World War just before World War Two, the
8:49
Speaker 3: France were worried that the Japanese might take over islands,
8:53
Speaker 3: so they went in and occupy those islands. Says it Uh.
8:57
Speaker 3: Their prison there, garrison there, a prison garrison, same thing.
9:02
Speaker 3: But when they did that, when they did that, they
9:07
Speaker 3: can't supply them so far from French Indo China. They
9:11
Speaker 3: had to rely on the Chinese fishermen to bring in
9:14
Speaker 3: the supplies. Now, there might be several reasons for that.
9:17
Speaker 3: Because in the in the late nineteenth century and early
9:21
Speaker 3: twentieth century, that's before like motor boats were popularized, so
9:26
Speaker 3: you had to sail with wind or muscle power. And
9:31
Speaker 3: at that time, the Chinese fishermen from Highland Island, they
9:35
Speaker 3: were using the utilizing the monsoon patterns in the region.
9:39
Speaker 3: So the monsoon will blow one like from north to
9:43
Speaker 3: south one direction and then south to north in the
9:46
Speaker 3: rest in another half the year. So the Chinese fishermen
9:49
Speaker 3: from High and An Island, they will sail from their
9:51
Speaker 3: island to the spread sprat leys for six months they
9:55
Speaker 3: will do their fishing living there and then when the
9:58
Speaker 3: wind changes, then they go. Now that their speculation. Why
10:05
Speaker 3: back then there were no Filipino fishermen there, you know,
10:09
Speaker 3: despite the fact the Filipino ancestors Astro nations, they were
10:14
Speaker 3: famous seafares that they crossed open ocean from all the
10:17
Speaker 3: you know, they started from Taiwan to the Philippines and
10:20
Speaker 3: all the Indonesia islands, and they went as far as
10:24
Speaker 3: you know, Polynesia, Hawaii, New Zealand and then even Madagascar
10:29
Speaker 3: off coast South Africa. So why didn't they go to
10:32
Speaker 3: those islands. Well, I think it's because most of you know, again,
10:37
Speaker 3: before the motor boats were popularized at that time, there
10:41
Speaker 3: were a lot more fish. There were a lot more
10:44
Speaker 3: fish closer to the coast, so the fishermen didn't have
10:47
Speaker 3: to go far, to go so far to risk their
10:50
Speaker 3: life to go fishing. Whereas in the late nineteenth century China,
10:55
Speaker 3: because the population explosion that happened in China, there was
10:58
Speaker 3: a lot of popular pressure. You know, there's a lot
11:01
Speaker 3: more mouth to feed, so these fishermen will actually have
11:05
Speaker 3: to use weather patterns uh to go to South China
11:09
Speaker 3: Sea to fish for their family. So so that that
11:11
Speaker 3: might but this is a historical this is the historical
11:14
Speaker 3: claim of China over those islands, pointing to like the
11:18
Speaker 3: historical use by the Chinese fishermen. And then in the night.
11:22
Speaker 3: But during that time also Philippine was a colony. First
11:26
Speaker 3: was a colony under Spain and then it was colony
11:29
Speaker 3: on the United States. As in our last show I
11:32
Speaker 3: mentioned when United States defeated Spain in the Spanish American War,
11:38
Speaker 3: the Spanish colonial government handed over the Philippine to the
11:41
Speaker 3: United States and this was codified in the eighteen ninety
11:45
Speaker 3: a Treaty of Paris, which defined what the Filipino territory was,
11:50
Speaker 3: and it was just a square box for the south
11:54
Speaker 3: of the twentieth Parallel and it did not include the
11:58
Speaker 3: Spratley's Islands on the map. Again, the United States made
12:03
Speaker 3: amendment to the Treaty of Paris in nineteen hundred to
12:07
Speaker 3: include several other islands that were previously controlled by Spain
12:11
Speaker 3: but didn't get included in the Treaty of Paris map. Again,
12:15
Speaker 3: those added islands did not include the Sprattlee Islands. So
12:20
Speaker 3: the Philippino no claim to the Spratley Islands actually started
12:24
Speaker 3: in nineteen fifties. So at that time what happened is,
12:28
Speaker 3: you know, there was a Chinese Civil war in which
12:31
Speaker 3: the communist side won in nineteen forty nine, and they
12:34
Speaker 3: Communists took over the Highland Island in nineteen fifty that's
12:38
Speaker 3: the island where most of the Chinese fishermen that that
12:42
Speaker 3: was fishing in Spratley Islands came from. And then when
12:46
Speaker 3: when Communists took over Highland Islands, the Nationalist government they
12:51
Speaker 3: you know, it's pointless to to stuck their garrison on
12:54
Speaker 3: those tiny islands in South China Sea anymore because they're unprotected.
12:58
Speaker 3: So that we drew their gear person around the same
13:01
Speaker 3: time in the nineteen fifties. So then the Filipino moved in.
13:05
Speaker 3: One Filipino merchant, he started to claim this island as
13:10
Speaker 3: his own private, independent kingdom. You know, he claimed this
13:13
Speaker 3: is his his land. He discovered this land, it's his property.
13:17
Speaker 3: Because the nationalists whop just left those islands after a typhoon.
13:22
Speaker 3: And so that's how the dispute got started, and in
13:25
Speaker 3: the nineteen seventies, Filipino government officially lay claim to the island.
13:31
Speaker 3: They claimed they bought those the claim from that Filipino
13:34
Speaker 3: businessman who originally claimed to have his own principality over
13:38
Speaker 3: those little islands. So nineteen seventies when the official dispute
13:44
Speaker 3: began between Philippino on one side and China on the
13:49
Speaker 3: other side, Taiwan is also involved because Taiwan also claimed
13:54
Speaker 3: to be you know, Republic of China. They previously had
13:57
Speaker 3: control over those islands, so they were also part of
13:59
Speaker 3: the dispute that led to kind of the Taiwanese professor
14:04
Speaker 3: in two thousand and oh seven and pointing out, oh,
14:07
Speaker 3: by the way, I did the research on the Treaty
14:10
Speaker 3: of Paris of defining the territory of Philippines, it did
14:13
Speaker 3: not include Spiral Spraley Islands. He also did not include
14:17
Speaker 3: that but painted but but Paines Islands to the north
14:20
Speaker 3: of the Philippines. And now so now now like China
14:23
Speaker 3: is using those historical research, Hey, Philips are not part
14:27
Speaker 3: of the Philippines. And and hey, and and anyway, so
14:31
Speaker 3: this is the historical background of the dispute. Oh, that's
14:35
Speaker 3: really interesting that.
14:37
Speaker 1: Is super interesting.
14:38
Speaker 2: And then of course the US is going to give
14:40
Speaker 2: the blank check to the Philippines that any way they
14:42
Speaker 2: want to act and hence emboldens they so much.
14:46
Speaker 3: I mean, I mean, the the main cause is really big. Okay,
14:51
Speaker 3: So after the motorized both got popularized after World War Two,
14:56
Speaker 3: now the Filipino fishermen can travel more easily. Travel will
15:00
Speaker 3: fund mainland to those islands and it's and also they
15:05
Speaker 3: have to go far because the fishery was getting exhausted
15:09
Speaker 3: near the coastal waters. Right. This is part of kind
15:11
Speaker 3: of the fight for resources in the global commons. This
15:15
Speaker 3: is an area where Philippines and China actually can cooperate
15:19
Speaker 3: because China is the world leader in aqua farming, you
15:23
Speaker 3: know they now China consume most of its fish actually
15:28
Speaker 3: from the fish that was farm along its coast. So
15:31
Speaker 3: this is an area where China can bring investment and
15:34
Speaker 3: technological know how to the Philippines to help the Filipino
15:39
Speaker 3: fishermen to set up these aqua farms along the Philippines.
15:42
Speaker 3: And guess what, China is a huge market. You know,
15:45
Speaker 3: like China consume tons of seafood and recently, because of
15:50
Speaker 3: the tension between China and Japan. China has cut the
15:54
Speaker 3: import of the Japanese seafood, especially after the Fukushima nuclear reactor,
16:00
Speaker 3: and so so there is a lot of demand. If
16:03
Speaker 3: the Philippines and China are on friendly terms, you know,
16:06
Speaker 3: they can work on a joint development of that region
16:10
Speaker 3: u uh and and and then you know, China can
16:12
Speaker 3: share their technologic technology and no house and capital to
16:16
Speaker 3: help the Filipino fishermen to set up these aqua farms
16:20
Speaker 3: in their coastal water and then sell those fish to
16:23
Speaker 3: China and it will be win win situation. But but
16:25
Speaker 3: but this is not you know, Bamba Marco's government not
16:28
Speaker 3: interesting in those type of things, you know, because they
16:31
Speaker 3: Bamba Marco's more interested is how he gets his dad's
16:35
Speaker 3: yield gotten corruption money that had been freezed by the
16:39
Speaker 3: United Government in the previous decades. I mean, we're talking
16:43
Speaker 3: about tens of billions of dollars. That's serious money. So
16:47
Speaker 3: so I mean, that's a that's a big motivating factory,
16:52
Speaker 3: I understand, I understand tends a billions of dollars. That's
16:55
Speaker 3: some serious money. That's that's a lot of blood and
16:57
Speaker 3: sweat for all the you know, average Filipino people that
17:00
Speaker 3: his dad has exploited over the decades acid dictaria of
17:05
Speaker 3: the Philippines and USA literally hold the first strings, like
17:13
Speaker 3: you want this money, you want your dad's crup money, Well,
17:16
Speaker 3: you gotta do what I say.
17:18
Speaker 2: So your point is that basically the US is exerting
17:21
Speaker 2: control over him using the leverage of the money that
17:23
Speaker 2: he effectively for his dad. So and so he's not
17:26
Speaker 2: his own actor. That all things been equal, if it's
17:29
Speaker 2: god man, this is the blank check issue again. If
17:31
Speaker 2: it wasn't for the blank check, many of these conflicts
17:34
Speaker 2: wouldn't be taking place because, as you point out, and
17:37
Speaker 2: because as you were telling me, doesn't kept thinking myself,
17:39
Speaker 2: they really can't solve this like this, This seems to
17:43
Speaker 2: be something that would be right for just coming to
17:46
Speaker 2: some kind of resolution for and yet they're they're fighting
17:51
Speaker 2: over the show.
17:52
Speaker 3: That's just so. So China used to have a a
17:56
Speaker 3: modus uh like what apperandum that was worked out with
18:04
Speaker 3: a previous Filipino government under Do dirtas right, and because
18:08
Speaker 3: Do Dirte's was trying to pilot an independent Filipino foreign policy,
18:13
Speaker 3: that's the independent from the United States. You know, that's
18:16
Speaker 3: why he's trying to improve ties with China, with Russia
18:20
Speaker 3: and United States, and US media absolutely hate him, right,
18:23
Speaker 3: that's why he's got indicted at the International Criminal Core,
18:28
Speaker 3: you know, like like he he got extradited from the Philippines.
18:31
Speaker 3: And now the current president, Bamba Marcos, he is seeing
18:37
Speaker 3: a political huge political fight again his vice president Sarah
18:42
Speaker 3: Do Dirts, the daughter of the former president Do Dirts,
18:47
Speaker 3: and that's that big fight that led to the literal
18:51
Speaker 3: gun fight inside the Filipino government which you never heard about.
18:57
Speaker 3: And so so this is like.
19:00
Speaker 2: I didn't know why they were fighting and I didn't
19:02
Speaker 2: definitely didn't note that it was a political issue between
19:05
Speaker 2: the previous administration in the current.
19:07
Speaker 3: Well, it is. It's current because because when Baba Marcos
19:12
Speaker 3: ran for president at that time, he formed an alliance
19:15
Speaker 3: with Dirte's daughter, Sarah d Dierte. He pledged to continue
19:19
Speaker 3: to Dirts policy uh to where maintaining a friendly relationship
19:24
Speaker 3: with China. That's why Bamba Marco's first trip abroad was
19:27
Speaker 3: actually to Beijing, but soon after he went to Washington
19:31
Speaker 3: and then he changed his tomb like one hundred and
19:33
Speaker 3: eighty degrees and now he's fighting with uh Do Dirte's daughter,
19:37
Speaker 3: Sarah Duderte, who is the vice president of the Philippines,
19:41
Speaker 3: and he's trying to get Sarah Duderte impeached as a
19:44
Speaker 3: vice president. And and this two political clan dynasty are
19:49
Speaker 3: clashing in the in the upper echelon of the Filipino politics,
19:54
Speaker 3: and that resulted in the gunfight in the Filipino Parliament.
19:58
Speaker 3: And this tension with sh just created the perfect distraction
20:03
Speaker 3: for the public from the from their domestic problems. But
20:06
Speaker 3: you know, like like don't don't, don't worry. There's a
20:09
Speaker 3: gunfighting our parliament. Look at what's China is doing that
20:12
Speaker 3: clover our our poor sailor over the head. You know,
20:17
Speaker 3: let's let's let's focus on that. Don't worry about the
20:21
Speaker 3: literal gunfighting our parliament. Yeah, I want.
20:25
Speaker 2: To move to another issue also that seems to be
20:28
Speaker 2: bubbling up. And I saw this, I think this was
20:32
Speaker 2: maybe two or three days ago with this kind of
20:34
Speaker 2: broke when Europe passed another sanction package against Russia, and
20:39
Speaker 2: weirdly enough, in the sanction package against Russia they named China.
20:44
Speaker 1: It's like you're just trying to commit suicide.
20:48
Speaker 2: Re Reiters in many of the articles reported on this also,
20:51
Speaker 2: but basically would have boiled down to I think it
20:53
Speaker 2: was the twenty seventh package of sanctions against Russia and
20:57
Speaker 2: they were going through. I think it was the eleven
20:59
Speaker 2: Chinese company that effectively that they outlined that supposedly was
21:03
Speaker 2: somehow in huts quote unquote with Russia in this case,
21:08
Speaker 2: and so their thought is we're going to now go
21:10
Speaker 2: after China. Also, China's response to this was the effectively
21:14
Speaker 2: re sanctioned and retaliate against Europe.
21:17
Speaker 1: Doing this break this down for US.
21:19
Speaker 2: I think they were let me see according to Reuters,
21:22
Speaker 2: I think they were like eleven different companies. I don't
21:25
Speaker 2: have my glass fourteen right here. So it says banning
21:29
Speaker 2: the export of dual use items to fourteen additional European
21:32
Speaker 2: Union entities with the immediate effect. So basically China retaliated
21:39
Speaker 2: by going after the European Union, putting fourteen European companies
21:43
Speaker 2: on their sanctionalness. And the first thing I thought about
21:46
Speaker 2: this was what does this mean for the war in Ukraine.
21:50
Speaker 2: I mean, much of the drone parts that Ukraine is
21:53
Speaker 2: using are basically secondhand items from China that it's using. Okay,
21:59
Speaker 2: well being stopped for various entities. What does this mean
22:04
Speaker 2: for the war, Well, it doesn't even effective.
22:08
Speaker 3: Oh yeah, I mean like if the if the If
22:10
Speaker 3: China just stops selling the jone parts of Europe, guess
22:13
Speaker 3: what where where where is Ukraine gonna get their components
22:18
Speaker 3: to make their jones? This this is European elites. Uh.
22:23
Speaker 3: Policy has been self defeating for a long time. I mean,
22:26
Speaker 3: they are doubling down on being the puppy dog of Washington,
22:31
Speaker 3: despite you know, Trump publicly humiliate them again and again,
22:36
Speaker 3: because that's the only thing they know how to do
22:38
Speaker 3: is to suck up to Washington and hope that they
22:42
Speaker 3: get better treatment from their daddy, you know, their hope
22:45
Speaker 3: Daddy Trump will will finally come around and treat them nice.
22:51
Speaker 3: But but the problem is that's not what trumpington to do. Uh,
22:55
Speaker 3: you know, and and and and and again. China has
22:59
Speaker 3: poured a lot of investment into Europe, but Europe is
23:02
Speaker 3: right now. UK just recently national essentially seized a Chinese
23:08
Speaker 3: steel plan uh from in UK. Like China has poured
23:12
Speaker 3: billions of dollars to revive this UK old UK steel plan. Uh.
23:18
Speaker 3: They they brought new equipment, a lot of capital injection
23:23
Speaker 3: and keep people on the payroll so they didn't get layoffs.
23:27
Speaker 3: So now the UK is like, oh, thank you, thank
23:30
Speaker 3: you for thirty our company around. Now for national security reasons,
23:34
Speaker 3: we must have our own contoy, our own steel plan.
23:38
Speaker 3: I mean, why did you say that when when your
23:41
Speaker 3: still plan was facing bankruptcy, you know, like like essentially
23:44
Speaker 3: China cut can and now they want to buy the
23:48
Speaker 3: plan at evaluated their evaluated his act price. But the
23:52
Speaker 3: problem is China actually pouring a lot of money to
23:55
Speaker 3: to upgrade the plan, to to to to upgrade the equipment,
23:59
Speaker 3: try to pour way more money than what UK you know,
24:02
Speaker 3: wants to pay for it, which is so this is
24:04
Speaker 3: the plain robbery. And the same thing happened in in
24:07
Speaker 3: Netherlands when the Dutch government uh sees Nespiria, a Chinese
24:13
Speaker 3: chip chip making manufacturer. Again it was a former Dutch
24:18
Speaker 3: uh chip semiconductor company under the Phillips and it was
24:22
Speaker 3: going under bankruptcy. So the Chinese came in, they bought it.
24:25
Speaker 3: They injecting capital, they're putting they they they build research
24:30
Speaker 3: and development centers, they hire more people, and now the
24:33
Speaker 3: Dutch governments, well, it was mostly pressure from the United
24:37
Speaker 3: States in the Dutch government case and they say, oh, sorry,
24:40
Speaker 3: national security reasons because you know, we we just have
24:44
Speaker 3: to we cannot have these Chinese making chips. So so
24:48
Speaker 3: they they took away in Nespiria and that that case
24:52
Speaker 3: is still ongoing. So at one hand, it's complaining China's
24:56
Speaker 3: on trade, uh, you know, trade practices. On other hand,
25:00
Speaker 3: it says, you know, few Chinese investment because you know, anybody,
25:05
Speaker 3: any all these Chinese investors potentially thinking about investing in Europe, Well,
25:10
Speaker 3: if you don't even think about it, because we are
25:13
Speaker 3: gonna take it away from you once you made a
25:16
Speaker 3: formerly bankrupt company profitable again. And then they continually blame
25:22
Speaker 3: their problems on China. They need a big scapegoat because
25:28
Speaker 3: you know, the whole Ukraine War is hurting China European economy.
25:32
Speaker 3: They have that cut off from cheap source of energy.
25:35
Speaker 3: And then Daddy Trump went ahead and did this whole
25:39
Speaker 3: Ung war operation and cut them further off on the golf,
25:43
Speaker 3: gas and oil. So Europe is really getting school right now.
25:49
Speaker 3: They need a scapegoat, and they traditionally they use China
25:52
Speaker 3: escapegoat because what they feel like, oh China is far away,
25:56
Speaker 3: you know. They can't. What are they gonna do? What
25:58
Speaker 3: the Chinese is gonna do? Right, We're gonna they take
26:00
Speaker 3: their their plans, We're going to take over their company.
26:03
Speaker 3: What's Chinese is gonna do?
26:05
Speaker 1: Well?
26:05
Speaker 3: China today can actually do quite a few things. Well,
26:09
Speaker 3: one thing, China can cut off your rare earth supply
26:11
Speaker 3: you know, China still has that control over the rare
26:14
Speaker 3: earth supply chain. And and you know if if and
26:20
Speaker 3: also Chinese, China can restrict their own market to European
26:24
Speaker 3: luxury goods. You know, all these European luxury good maker
26:28
Speaker 3: whether it's cars or or or channel bags or whatever,
26:32
Speaker 3: they they drive huge portion over revenue from China and
26:36
Speaker 3: China Chinese governments say, you know what, Uh, now we're
26:40
Speaker 3: gonna reserve the Chinese market for Chinese product now that
26:44
Speaker 3: they can easily do that, and and and then the
26:47
Speaker 3: and then what and then what I mean like the
26:49
Speaker 3: Chin again, the European leadership they have they have no backbone,
26:54
Speaker 3: and they have no vision. Uh and and that's this
26:58
Speaker 3: is why we Europe it's in the kind of mess
27:01
Speaker 3: it is in right now.
27:04
Speaker 1: No, I agree with you.
27:06
Speaker 2: I mean it's very strange. I mean it seems like
27:09
Speaker 2: like I said, Europe seems to be committing suicide. You
27:12
Speaker 2: pointed it out perfectly. A they cut themselves off from
27:15
Speaker 2: Russian energy. Russian energy was the thing that allowed Europe
27:18
Speaker 2: to be Europe. Now there's the war in the Middle
27:21
Speaker 2: East that Europe can't bring itself to say anything in
27:25
Speaker 2: condemnation of, despite the fact that it's obviously a war
27:28
Speaker 2: of aggression by the US. And to make it even worse,
27:32
Speaker 2: when Rute came to the States, he was trying to
27:35
Speaker 2: mindfenses between Trump and Maloney, saying, hey, Italy helped with
27:39
Speaker 2: the war. Italy helped with the war. Don't hit Maloney,
27:42
Speaker 2: Please don't hit her. Like it was very strange with
27:46
Speaker 2: You're basically trying to show the abouta fides for Hey, Trump,
27:49
Speaker 2: don't be.
27:49
Speaker 1: Mad at us.
27:50
Speaker 2: We're actually helping with the war because Italy did something
27:53
Speaker 2: about using its basis for the war. I guess my
27:57
Speaker 2: thing is they are taking a hit of across the
28:00
Speaker 2: board any other idea that they're going to say, Okay,
28:02
Speaker 2: we're also now I'm going to antagonize China. Just theems
28:06
Speaker 2: to be as use the term again, suicide. What do
28:10
Speaker 2: you make of this? I mean, how could China really
28:12
Speaker 2: invest in Europe if indeed, I didn't even random moment
28:15
Speaker 2: you turn around at the BS, the the US and
28:18
Speaker 2: attack the company that China invested.
28:22
Speaker 3: Yeah. I mean there's a lot of willingness for China
28:25
Speaker 3: to invest in Europe. I have seen by its record
28:29
Speaker 3: over the past. China has invested in in Greece sport
28:33
Speaker 3: after Greece went basically they'll declare bankruptcy, and they have
28:38
Speaker 3: turned it around. They actually turn around that operation. And
28:42
Speaker 3: so I think what going forward, China will probably redirect
28:46
Speaker 3: their investment into more friendly countries. Uh you know, so
28:50
Speaker 3: far China is doing pouring investment into Serbia and also
28:54
Speaker 3: Hungry because these countries are more welcoming and conducive for
28:59
Speaker 3: the China need investment. And they will probably have to
29:03
Speaker 3: hold off on investment in Western Europe until the political
29:06
Speaker 3: climate improves, until they can guarantee their investment will be protected,
29:11
Speaker 3: it won't be seized arbitrarily on some bogus national security reasons.
29:16
Speaker 3: But right now, European Elie strategy is, you know, we
29:20
Speaker 3: got to stick together with uh daddy America. We're gonna
29:23
Speaker 3: go down together. You know that they're they're they're going
29:26
Speaker 3: to go down with the ship. Uh. And and I
29:29
Speaker 3: think that's likely that's going to happen because they try
29:31
Speaker 3: to build a wall around United States and Europe and
29:37
Speaker 3: and and they gonna try to piggyback on what American
29:42
Speaker 3: AI I mean, because they don't have the europe They
29:45
Speaker 3: don't have their own AI uh product. At this point,
29:49
Speaker 3: right now, the world only have two choices, American AI
29:53
Speaker 3: or Chinese AI. Chinese AI much cheaper. But you know,
29:57
Speaker 3: if you want to support sand Outman and the darry
30:01
Speaker 3: you know, you can't always find the more expensive American
30:04
Speaker 3: AI product to support those Silka volley bros. That that's
30:08
Speaker 3: a path that the European leadership is show choosing. So yeah,
30:13
Speaker 3: I don't I don't see. I don't. I don't hold
30:15
Speaker 3: much hopeful Europe. You know, the European leadership is hopeful,
30:19
Speaker 3: hopelessly corrupt, spineless and short sighted.
30:24
Speaker 2: Speculate as the wife for me, I mean, because it
30:28
Speaker 2: is very strange if you think about what is in
30:30
Speaker 2: your best interests, and Europe seems to have prioritize America
30:35
Speaker 2: as as you put it out, they're going down with
30:37
Speaker 2: the vote.
30:38
Speaker 3: Jamar, Jamar, You're making a big assumption. You're making a
30:42
Speaker 3: big assumption that the interests of the European elite is
30:46
Speaker 3: the same as the interests of common European citizens. See,
30:53
Speaker 3: this is the you can't apply the same analogy in
30:57
Speaker 3: the United States. Do the Epstein class reference then the
31:00
Speaker 3: interests of average American found now they neither do the
31:05
Speaker 3: EU bureaucrats they don't really care about wan sing the
31:10
Speaker 3: best interests of you know, the Europe of the European
31:14
Speaker 3: average European citizens. All they care about is maintaining their
31:18
Speaker 3: own privilege, and a lot of their own privilege is
31:21
Speaker 3: hitch upon being America's puppy dog. You know, all these
31:25
Speaker 3: top European bureaucrats they got to their position where they
31:29
Speaker 3: are because they were being groomed from a very young
31:33
Speaker 3: age through all these Atlantis institutions. You know that's backed
31:38
Speaker 3: by Washington. You know, people like Ursula wondering, well, what
31:42
Speaker 3: is her qualification? Right, and her qualification is just be
31:45
Speaker 3: a spokesperson of Washington in Europe, like I have, a
31:50
Speaker 3: lot of them owe their position ultimately to the United States,
31:55
Speaker 3: and they recognize that. So this is why they're going
31:57
Speaker 3: down with the ship. You know, their fortune in their
32:00
Speaker 3: social standing their careers. It's tied with a ship, which
32:06
Speaker 3: is American Empire. So they're they're they're sticking with it.
32:09
Speaker 3: They don't care what happened to uh, to the to
32:12
Speaker 3: the masses, you know, after you know, a prima a
32:16
Speaker 3: p a primad the deluge, you know that, after me
32:19
Speaker 3: the flood, they don't care what happened after word?
32:23
Speaker 1: What's her name?
32:25
Speaker 2: Oh?
32:25
Speaker 1: What is her name? What is her name?
32:26
Speaker 2: She used to be the foreign minister for Germany and
32:28
Speaker 2: Alena Beerbach where she says, I don't care what the
32:31
Speaker 2: Germans think. We're going to continue to get money to
32:34
Speaker 2: your brain likeness. The same thing with mirts, right, It's like,
32:40
Speaker 2: we can't keep putting money into social services.
32:42
Speaker 1: We have to fight a war. It's like, okay, fair enough.
32:45
Speaker 2: I mean, mind you, they are as popular as ponds come,
32:49
Speaker 2: but they do tell you outright. I guess what I'm
32:52
Speaker 2: getting at is, do you look at this as a
32:55
Speaker 2: wall is being put up between spheres of influence like
33:00
Speaker 2: in the since where okay, this is the American sphere
33:02
Speaker 2: or the Western sphere, so in which case Europe and
33:05
Speaker 2: America have effectively became this thinging to themselves, in which
33:09
Speaker 2: case they erect.
33:10
Speaker 1: The wall and I get China, Russia, India.
33:13
Speaker 3: Just what you're describing is what they call the international
33:19
Speaker 3: community in the in the Asian media they call international community.
33:25
Speaker 3: They're always talking about North America, you know, not not Mexico,
33:28
Speaker 3: just United States and Canada and Europe, Western Europe and
33:33
Speaker 3: you know, maybe Japan, South Korea, Australia, right like all
33:37
Speaker 3: these countries they're called. This is it's now the international
33:41
Speaker 3: community versus the rest, which is a global majority of.
33:50
Speaker 1: The global majority. Now then't the way we talk about it.
33:53
Speaker 2: But it is pretty wild that this idea of globalism,
33:58
Speaker 2: the moment that it wasn't necessarily to their benefit, it
34:01
Speaker 2: immediately became okay, we need to partition the world. We
34:04
Speaker 2: have our sphere and you guys have your sphere. As
34:08
Speaker 2: you point out, fifteen percent of the globe, it's the
34:10
Speaker 2: international community.
34:12
Speaker 1: Now it's very weird. I mean, but do you think
34:14
Speaker 1: that's where they're effectively going. This is the linking I.
34:18
Speaker 3: Mean, I mean, yeah, yeah, yeah, this is this is
34:21
Speaker 3: the plan. I mean, it's they've been. They've been. This
34:24
Speaker 3: is why they keep on talking about de risk. First
34:26
Speaker 3: there you go like decoupling from China, and then they're like, Okay,
34:29
Speaker 3: maybe that's too strong. We call it de risking from China.
34:32
Speaker 3: We're gonna do China plus one, you know, move our
34:35
Speaker 3: supply chains elsewhere. Well, it hasn't really worked, you know,
34:39
Speaker 3: so far. All the they have managed to move a
34:42
Speaker 3: lot of labor intensive stuff out of China, you know,
34:45
Speaker 3: for example, twenty five percent of the Apple phone production
34:52
Speaker 3: but to India for example, and they move some of
34:54
Speaker 3: the production to Vietnam. But what really has happened is
34:58
Speaker 3: they move the final assembly to those countries, and these
35:03
Speaker 3: countries still depend on imports of all the components and
35:06
Speaker 3: all the machine tools from China. So their imports from
35:10
Speaker 3: China actually risen because they have to import a lot
35:13
Speaker 3: of components and and and machine tools, and they're adding
35:16
Speaker 3: in like their value add in. The coal supply chain
35:21
Speaker 3: is actually the only final labor intensive piece, whereas in
35:27
Speaker 3: China's case, the China export their own margins keep on
35:31
Speaker 3: rising because because China now they control their own supply
35:34
Speaker 3: chain that they make everything else. So they haven't really
35:39
Speaker 3: been successfully pivoting away from the Chinese supply chain. They
35:43
Speaker 3: just help to push out the Chinese supply chain even
35:47
Speaker 3: further into the world like make these other country now
35:50
Speaker 3: also depending on the Chinese supply chain. And and you
35:54
Speaker 3: know this is a you know, even the US military
35:56
Speaker 3: industrial complex cannot decouple from China, like the really on
36:00
Speaker 3: CEO said, I can't do it. You know, we need
36:03
Speaker 3: our components from China, so so that the anyways, I
36:10
Speaker 3: I don't think that European elite worry about this, so
36:12
Speaker 3: I'm not gonna worry about it either. I mean Europe
36:15
Speaker 3: is screwed. Europe is screwed that because because the elite
36:20
Speaker 3: don't really care about what happened to Europe, you know,
36:23
Speaker 3: they they only care about how to keep their own
36:26
Speaker 3: current position, which again is tied to the United States.
36:30
Speaker 3: And also there's also I think jama there's also there's
36:33
Speaker 3: a sense that we white countries got to stick together
36:37
Speaker 3: no matter.
36:38
Speaker 2: What, you know, anything else, no bullshit.
36:43
Speaker 1: I think it's that, man.
36:45
Speaker 2: I think it's that when when what's his name comes
36:47
Speaker 2: up as Europe is a garden and all this other stuff,
36:49
Speaker 2: and Brute is trying to do everything in this power.
36:52
Speaker 1: I mean call it a grow man, daddy.
36:54
Speaker 2: They stick together even when it's not necessarily in their
36:57
Speaker 2: best interests, and you have to wonder why, what is
37:01
Speaker 2: the motivating factor for these guys stick together?
37:04
Speaker 1: Like this sap from Japan. They it blows down to Canada,
37:09
Speaker 1: the US.
37:10
Speaker 3: Cat Japan gets honorary white men stright.
37:20
Speaker 2: It's like, for the sake of the military involvement, here's
37:22
Speaker 2: your white cart.
37:23
Speaker 3: You could use it, local dealer. Yeah.
37:28
Speaker 2: I think that's what it is. I really do. And
37:30
Speaker 2: I hate to say that, but I think that's true.
37:33
Speaker 3: It's true. I mean, you can't. It's stare you in
37:36
Speaker 3: the face.
37:37
Speaker 1: You know.
37:37
Speaker 3: They don't want them say it. You know. There's a
37:40
Speaker 3: lot of time where I'm trying to be polite about it,
37:43
Speaker 3: but there's no beating around the bush. Come on, it
37:45
Speaker 3: is what it is.
37:49
Speaker 1: I think that's what it is. I really do.
37:51
Speaker 2: I think it's like the white world has to stick
37:53
Speaker 2: together against the Hords.
37:55
Speaker 1: The it's only forty percent of fighting award. The last
38:00
Speaker 1: thing I want to get with you before I let
38:01
Speaker 1: you go is the AI thing I am of mine.
38:05
Speaker 1: That AI is a bubble. I think it will have been.
38:12
Speaker 2: Yeah, and I think China is going to pop that
38:14
Speaker 2: bubble because America is spending like a trillion dollars on
38:17
Speaker 2: AI and China has been able to nail this without
38:21
Speaker 2: spending anywhere near the amount, and the rub is something
38:24
Speaker 2: that you pointed out. Most people don't need the best
38:27
Speaker 2: of anything. Like when I'm going to the grocery store,
38:29
Speaker 2: do I really need the best paper towels? Do I
38:31
Speaker 2: really need the best towels the best Not?
38:34
Speaker 1: Really.
38:35
Speaker 2: Most people get what they require, and companies are the same,
38:38
Speaker 2: especially when you have the situation with America having that's
38:42
Speaker 2: a questionable influence on AI, whereas China has opened the
38:48
Speaker 2: files where people can effectively even see it's like open source.
38:51
Speaker 2: Go into this for me, because China has been nailing this,
38:54
Speaker 2: and you show.
38:55
Speaker 1: Me the Wall Street Journal article.
38:56
Speaker 2: Where they were effectively screaming, you know, regular regular their problems,
39:01
Speaker 2: their problem, the problems are hit.
39:05
Speaker 3: Yeah, it's uh it's it's it's all the euro suspect right,
39:08
Speaker 3: it's Dario, it's San Autman, it's all these Silicon Valley
39:13
Speaker 3: UH tech bros. It's it's crying is crying foul because
39:17
Speaker 3: the Chinese AI threatening their own plan for the future.
39:21
Speaker 3: You know, their plan for the future is you know,
39:24
Speaker 3: it's it's very simple. They plan to construct this world
39:28
Speaker 3: that will be dependent on their own closed AI product.
39:33
Speaker 3: So they they want everybody to use their a AI
39:37
Speaker 3: so they can collect a toe, they can colleck rent,
39:40
Speaker 3: they can just sit back and click rent. That is
39:42
Speaker 3: their goal. This is why they're plowing in the same
39:45
Speaker 3: amount of money. So their business model is like, in
39:48
Speaker 3: the end, everything is going to depend on us. You're
39:51
Speaker 3: gonna have to pay us a fee for access. It's
39:55
Speaker 3: just like you have to. It's like utilities. You know,
39:57
Speaker 3: you use for water, for for for everything. So to
40:01
Speaker 3: live you're gonna have to pay pay us. But what
40:04
Speaker 3: the Chinese open source AI does is like, hey, we
40:09
Speaker 3: you know, you know, the these these guys they charge
40:12
Speaker 3: your arm and leg for the AI, you know, will
40:14
Speaker 3: give you for like five cents, you know, like like
40:17
Speaker 3: practically we're giving you practically for free. And that really
40:21
Speaker 3: freaks them out because that destroyed the total business model.
40:24
Speaker 3: They realize they will not be able to maintain a
40:27
Speaker 3: monopoly after that when when people do have alternative to
40:31
Speaker 3: turn to a much much cheaper Chinese open source model.
40:35
Speaker 3: So they're they're starting to raise concern about how Chinese
40:38
Speaker 3: open source model is dangerous, it's national security issue. But
40:41
Speaker 3: first of all, this is they're They're they're capitalizing on
40:45
Speaker 3: people's ignorance, right, the open source idea, it's more like
40:50
Speaker 3: a recipe. China is sharing with you the recipe. Right.
40:54
Speaker 3: So once you take that open source model, if you
40:57
Speaker 3: host in your own machine, local environment, then it has
41:02
Speaker 3: nothing to do with China, It has nothing to do
41:04
Speaker 3: with the company that originally produced it. You now have
41:07
Speaker 3: the tool in your hand. This is like equivalent of like,
41:12
Speaker 3: you know, China is like the digital Prometheus stealing the gods,
41:17
Speaker 3: stealing the fire from the Silicon Valley self designated gods
41:22
Speaker 3: and giving it to people. And they're freaking out. They're like,
41:26
Speaker 3: how if China does this, we can't be gods anymore?
41:29
Speaker 1: You know.
41:29
Speaker 3: Like our plan was to have like a matrix like
41:33
Speaker 3: world where we are the overlords. We get to have
41:37
Speaker 3: our tentacle insight every aspect of your life because you
41:41
Speaker 3: will depend on us to be on our product. You
41:44
Speaker 3: will be our digital serfs, you know, And that's what
41:49
Speaker 3: it is. Their goal is a plan is for tech feudalism,
41:54
Speaker 3: right with them as a feudal lords at the top,
41:58
Speaker 3: and everybody will be used to pons and serfs. But
42:02
Speaker 3: the Chinese open source model is a serious threat to
42:05
Speaker 3: that because other people's like, why do I need to
42:08
Speaker 3: pay you know, arms and leg for open AI or
42:12
Speaker 3: or for for for anthropics. I can just use a
42:17
Speaker 3: much cheaper open source model, which I can get it
42:20
Speaker 3: for free if I hosted my own local environment. And
42:25
Speaker 3: this is why they're freaking out. They're trying to loop
42:27
Speaker 3: in the US government to ban the use of Chinese AI.
42:31
Speaker 3: You know, like that's always the same story.
42:35
Speaker 1: And just to get this put this in context.
42:38
Speaker 2: The recently I think it was a couple of weeks
42:40
Speaker 2: ago with the US government, I think on a Friday
42:43
Speaker 2: came out and just put some eat it or something
42:46
Speaker 2: out that forced companies, I know what it was, basically
42:50
Speaker 2: saying that BOGT companies couldn't use I believe it was
42:53
Speaker 2: anthrop or one of.
42:55
Speaker 3: The software, Yeah, anthropics, anthropics.
42:58
Speaker 2: And when he did that, it had cascading effect where
43:01
Speaker 2: all of these countries realized they didn't own their own tech,
43:05
Speaker 2: meaning it's shut it off. They weren't able to effectible
43:08
Speaker 2: use its system abroad. And then so you get countries
43:12
Speaker 2: like France like so wait a minute, we don't understand
43:15
Speaker 2: own the thing to which we're basing our companies.
43:18
Speaker 3: You are buying a service. You are buying a service
43:21
Speaker 3: that can be shut off anytime. Yeah, oh the way, you.
43:26
Speaker 2: Don't even know what's in it, Like meaning you're sending
43:28
Speaker 2: your information, meaning all of these secret private things of
43:32
Speaker 2: a company, you're effectively sending as you hit their server
43:35
Speaker 2: with that data and with that information, so A you
43:38
Speaker 2: don't own it, and B you're effectively giving out all
43:40
Speaker 2: your secrets anytime you're doing searches for the AI. It's problematic. Now,
43:45
Speaker 2: you're absolutely right, brothers. And as you point out, China's
43:49
Speaker 2: open source, meaning they opened it so people can take
43:51
Speaker 2: a look at what they're effectively doing when they're building
43:53
Speaker 2: the system itself.
43:55
Speaker 3: And guess what and guess what if you take away
43:58
Speaker 3: all the AI investment in the US economy right now,
44:01
Speaker 3: the US economy would be in recession. You will have
44:05
Speaker 3: zero growth. You will have no growth. All the growth
44:07
Speaker 3: in the US economy currently like two point some percent
44:11
Speaker 3: that is all AI drive, that's all from AI investment,
44:16
Speaker 3: like data building of data centers, right, and guess what
44:20
Speaker 3: the problem with the building. Say, when China build high
44:24
Speaker 3: speed railway back in two thousand and eight, guess what
44:28
Speaker 3: those high speed railway are still in use today. They're
44:30
Speaker 3: still transporting hundreds of million dollars hundreds of millions of
44:35
Speaker 3: people every day. What's going to happen in those data
44:39
Speaker 3: centers in twenty years. Those equipment of nvidio chip which
44:43
Speaker 3: caused an arm and leg to purchase, they become obsolete
44:46
Speaker 3: in like six months and a year, you know, because
44:50
Speaker 3: the technology continually evolving. So all these billions of dollars
44:55
Speaker 3: that are plowing in into building those data centers, they
44:59
Speaker 3: will get appreciate it before they even turn a profit.
45:03
Speaker 3: You know, this is not a you know, nobody is
45:07
Speaker 3: doing this math because they don't want to, because then
45:09
Speaker 3: it kind of just otherwise people will realize it won't
45:12
Speaker 3: justify this kind of crazy evaluation as the Wall Street
45:16
Speaker 3: is projecting for them, because right now they continually demand
45:21
Speaker 3: more and more and more money, because their whole model
45:25
Speaker 3: depending on keep on building more and more data center,
45:28
Speaker 3: buy more and more nvidio, GP youtubs, driving driving up
45:33
Speaker 3: all the prices of memory and to everything. Now everything
45:37
Speaker 3: is serving this aibs. But guess what, They're still not
45:41
Speaker 3: making a lot of money. The amount of the money
45:44
Speaker 3: that make does not even come close to the amount
45:47
Speaker 3: of money that they're pouring piling in and those those
45:50
Speaker 3: their equipment is depreciating very fast in a few years
45:54
Speaker 3: even uh you know, let let's just be conservative. Let's
45:58
Speaker 3: say in four to five year of five years, the
46:00
Speaker 3: current all the computer equipment sitting in the data center
46:04
Speaker 3: will be completely obsolete in five years, like like than
46:08
Speaker 3: what then you need to buy more equipment. I mean
46:11
Speaker 3: it makes a video happy, you know, the video. That's
46:15
Speaker 3: why they're they're buying each other stocks to helping the
46:18
Speaker 3: prop up the AI bubble. Yeah, and video is buying
46:21
Speaker 3: the open ai stocks and the open aiyes, fighting and
46:24
Speaker 3: video stock. I mean, this is like, this is a
46:27
Speaker 3: Shallo game. This is completely rigged.
46:31
Speaker 2: If you look at the financial channels, they keep pointing
46:34
Speaker 2: this out, that they are spending billions in this kind
46:37
Speaker 2: of speculative industry, and as you point out, they're buying
46:41
Speaker 2: each other stocks, and as you point out, we're functioning
46:44
Speaker 2: on that Ponzi scheme of this kind of circular money thing.
46:48
Speaker 2: It's very strange, and yet that is what the kind
46:52
Speaker 2: is propped upon right now.
46:55
Speaker 3: Yeah, this this is no different from the dot com bubble,
46:58
Speaker 3: which you know most of us have already experienced. You know,
47:01
Speaker 3: this this was there go back then was like, Okay,
47:04
Speaker 3: we're going to spend all these money to build these
47:07
Speaker 3: monopolies that eventually we're gonna collect Catau. Well, guess what.
47:12
Speaker 3: The irrational exuberance will go on until you can't you
47:15
Speaker 3: can't go on anymore. At one point the bubble got popped.
47:19
Speaker 3: I don't know when it's gonna happen. It could go
47:21
Speaker 3: on longer than anybody expecting. Can could go on for
47:24
Speaker 3: another year or two. But he cannot go on forever. Man.
47:28
Speaker 3: The money is not unlimited. The money do not grow
47:31
Speaker 3: on trees. A lot of the EI investments, by the way,
47:34
Speaker 3: So we're counting on the money coming from the golf country,
47:37
Speaker 3: from the golf Arab countries. Well where's golf Arab country
47:41
Speaker 3: going to get their money from? Now? You know, Kuwait
47:43
Speaker 3: hasn't sold any oil for a month. The longer the
47:48
Speaker 3: street home move and the hooties that Yemenis are shutting
47:52
Speaker 3: down this red sea because you know, for for a
47:55
Speaker 3: while the Saudis were allowed to pipe oil through their
47:59
Speaker 3: pipeline to the porta yam Boo and ship it out
48:02
Speaker 3: that way. And Port of yam Boo has a capacity
48:05
Speaker 3: about four point five million barrels of oil per day. Uh,
48:09
Speaker 3: and that's that's gone, that's got cut off. And like
48:12
Speaker 3: for a while, the oil price hasn't shot to the
48:16
Speaker 3: stratosphere beyond one hundred and twenty five dollars per barrel
48:20
Speaker 3: is because China. China voluntarily cut their oil imports by half,
48:25
Speaker 3: which is about five point five million barrels a day. Well,
48:28
Speaker 3: guess what with the Saudi oil flow from Portal yam
48:32
Speaker 3: Boos through Red Sea get cut off four point five
48:35
Speaker 3: that's four point five million barrels right there. And and
48:39
Speaker 3: the the UAE pipeline that goes to the portal that
48:44
Speaker 3: also got shot off. That's all that's about one to
48:47
Speaker 3: two million barrels per day. That's already equivalent of all
48:50
Speaker 3: the oil imports that China has cut off. So there's
48:53
Speaker 3: no more buffer. There's no more buffer in the oil market.
48:57
Speaker 3: And at the same time, the oil market has been
49:01
Speaker 3: sustained by all the strategic oil reserves. They have been
49:05
Speaker 3: drawing down their strategic petroleum reserve for the past few
49:08
Speaker 3: but those are running low. United States only have one
49:10
Speaker 3: month left of the crude oil inventory, so so it's
49:14
Speaker 3: gonna get a lot a lot worse, you know, before
49:17
Speaker 3: things get better.
49:19
Speaker 1: Is burning as we speak.
49:21
Speaker 2: Yes, so so so hit the oil fields there.
49:26
Speaker 3: That they the golf Arab countries. They need all that
49:30
Speaker 3: money themselves to repair all the facilities to they don't
49:34
Speaker 3: have any more money for AI. I'm sorry that money
49:38
Speaker 3: is not coming, Carl Man.
49:42
Speaker 2: I always enjoyed these conversations. You always get the best
49:45
Speaker 2: historical contexts and breakdowns. I thank you for this, Carl Jah.
49:51
Speaker 2: Carl is host of Silk and Steel podcasts focused on
49:53
Speaker 2: China and surrounding regions, their history, culture and politics. You
49:56
Speaker 2: can follow Carol on Twitter at Carl Jah. You can
50:00
Speaker 2: follow this podcast on Twitter at Steel, Silk and the
50:03
Speaker 2: Letter In, and you can subscribe and support the podcast
50:06
Speaker 2: on Patreon dot com Slash Silk and Steal.
50:10
Speaker 1: Carl. You're fantastic. You have a good night, man, Thank
50:13
Speaker 1: you for this.
50:14
Speaker 3: Thank you Mark. Anytime I find not that shot.
50:18
Speaker 1: Out, the Carl shot out.
50:20
Speaker 2: The call market is coming up in a moment. But look,
50:24
Speaker 2: Carl is right about the AI stuff.
50:27
Speaker 1: It's a.
50:30
Speaker 2: I don't want to call it a circle jerk, but
50:31
Speaker 2: it's a circle jerk. They're effectively buying each other's stop
50:35
Speaker 2: and investigating in each other's companies in a way that
50:38
Speaker 2: makes it very incestuous, and in a way that makes
50:42
Speaker 2: when you're looking at our market and that market effectively
50:45
Speaker 2: being AI, and then you look at what they're effectively
50:47
Speaker 2: doing well, the economists and the financial analysts are screaming
50:51
Speaker 2: for a reason because they don't necessarily think this is
50:54
Speaker 2: all that sustainable.
50:56
Speaker 1: So there is that