THOSE ARE YOUR HEADLINES.
MARIA: THANKS VERY MUCH.
THE UNITED STATES, THE UNITED
KINGDOM AND AUSTRALIA ANNOUNCING
A NEW SECURITY PARTNERSHIP THIS
WEEK.
IT IS AIMED AT STRENGTHENING
AUSTRALIA’S MILITARY MIGHT AS
THE RELATIONSHIP DETERIORATES
FURTHER WITH CHINA.
TENSIONS IN THE INDO-PACIFIC ARE
CERTAINLY RISING.
CHINA FLEXING POWER TO TAIWAN,
THE COUNTRY’S DEFENSE MINISTERS
SAYS IT INTERCEPTED A FLEET OF
NINE CHINESE WAR PLANES
YESTERDAY IN TAIWAN AIR SPACE.
IS THIS A BULLYING MOVE?
IS THIS SOMETHING MORE?
JOINING ME RIGHT NOW IS DC
INTERNATIONAL ADVISORY CEO,
FORMER RADIO FREE ASIA PRESIDENT
AND FORMER NATIONAL SECURITY
ADVISOR FOR DICK CHENEY, STEVEN
YATES IS HERE.
STEVEN, YOUR THOUGHTS.
WHEN I SAW THAT HEADLINE THAT
CHINA WAS ENTERING TAIWAN SPACE
YESTERDAY I THOUGHT IT WOULD BE
A BIGGER DEAL THAN IT WAS.
WHAT’S YOUR TAKE ON WHAT TOOK
PLACE?
>> WELL, IT IS A BIG DEAL.
CHINA HAS BEEN PUSHING THE
LIMITS OF WHERE THE CENTER LINE
USED TO BE IN THE TAIWAN STRAIT.
IT WAS SOMEWHAT OF AN INFORMAL
AGREEMENT THAT AIRCRAFT AND SEA
VESSELS COULD COME CLOSE TO EACH
OTHER AND SEND HAND SIGNALS TO
ONE ANOTHER AND GO BACK TO THEIR
HOME BASES, SENDING STRATEGIC
MESSAGES.
THIS HAS INCREASED IN FREQUENCY,
INCREASED IN CAPABILITY AND BEEN
INCREASINGLY AGGRESSIVE IN TERMS
OF GEOGRAPHY.
THIS IS DEFINITELY A BULLYING
MOVE AND THE POLITICAL WAR FARE
PARTS OF CHINA’S GOVERNMENT HAVE
BEEN TALKING THIS UP, SUGGESTING
THAT MORE IS TO MANY COME IN
THIS REGARD.
MARIA: YEAH, IT’S I GUESS NOT
UNEXPECTED, GIVEN THE WEAKNESS
THAT WE ARE SEEING COMING OUT OF
THE UNITED STATES, RIGHT?
I MEAN, IF CHINA WANTS TO MAKE A
MOVE ON TAIWAN, THEY WANT TO DO
IT WHEN THEY EXPECT THE U.S. IS
EITHER OVERWHELMED WITH OTHER
ISSUES OR THAT THE U.S. PERHAPS
WON’T GET INVOLVED.
DO YOU THINK THAT THE TIMING OF
THIS IS BECAUSE OF THAT REASON,
WEAKNESS IN THE UNITED STATES?
>> THEY CERTAINLY SOMEWHAT OF A
GO SIGNAL FROM THE DEBACLE THAT
HAS UNFOLDED COMING OUT OF THE
MIDDLE EAST.
THE UNITED STATES GOVERNMENT
SEEMS VERY, VERY DISTRACTED AND
IN SOME WAYS INCOMPETENT AND
THERE’S NOW INCREASED DOUBT
ABOUT WHO EXACTLY IS IN CHARGE
OF OUR ARMED FORCES AND THE
CHAIN OF COMMAND.
ALL OF THIS JUST SOWS DIVISION
WHICH JUST BRINGS GRINS TO THE
CCP.
MARIA: MEANWHILE, THE CCP
CONTINUES ITS INCREDIBLE
BEHAVIOR, SUBSIDIZING COMPANIES,
DISAPPEARING PEOPLE.
THERE ARE CONCERNS MOUNTING
AFTER BEIJING TOLD MAJOR BANKS
THAT ITS SECOND LARGEST PROPERTY
DEVELOPER, EVER BRAND, WILL NOT
BE ABLE TO PAY ANY INTEREST
PAYMENTS BEGINNING NEXT WEEK.
THE COMPANY’S LOCAL BOND TRADING
SUSPENDED TODAY AFTER PRICES
FELL.
ASIAN STOCKS HAVE BEEN IMPACTED
ON THE CCP’S CONTINUED
CRACKDOWN.
AND I JUST WANT TO SAY THAT
THERE ARE REAL IMPLICATIONS IN
THE UNITED STATES AS WELL FOR
THIS EVER GRAND STORY.
THIS IS A LIST OF THE TOP MUTUAL
FUND HOLDERS OF EVER BRAND.
VANGUARD INTERNATIONAL STOCK
INDEX, VANGUARD INTERNATIONAL
STOCK INDEX TOTAL, EMERGING
MARKETS, VANGUARD, DFA EMERGING
MARKETS CORE EQUITY PORTFOLIO,
VANGUARD GLOBAL.
ALL OF THESE MUTUAL FUNDS HOLD
EVER BRAND.
ARE YOU EXPECTING A BIG IMPACT
FROM THIS CHINA PROPERTY GIANT
ADMITTING ABOUT THIS DEBT CRISIS
IS UNDERWAY? BY THE WAY, THERE ARE PROTESTERS
BY THE WAY, THERE ARE PROTESTERS
HEHEBESIEGING THE HEADQUARTERS O
EVER BRAND RIGHT NOW.
THE GAMING SECTOR IS STILL
FEELING THE PRESSURE.
SHARES OF MACAU CASINO OPERATORS
DOWN AS MUCH AS AS A THIRD OF
THEIR VALUE YESTERDAY AND THE
SELLOFF IS CONTINUING THIS
MORNING WITH THE WYNN RESORTS,
LAS VEGAS STANDS AND MGM DOWN 1
AND-A-HALF TO 3% RIGHT NOW,
STEVEN.
>> YEAH.
WELL, I THINK WE HAVE FOCUSED,
APPROPRIATELY, ON A T ROT OF
WHAT CHINA’S -- LOT OF WHAT
CHINA’S BEEN DOING WITH WOLF
WARRIORS, SOME OF THE MILITARY
AGGRESSION EXTERNALLY.
WHAT THAT DOES, IT DRAWS
ATTENTION AWAY FROM SOME
PROFOUND PROBLEMS INSIDE OF
CHINA WHICH MAY EXPLAIN TO SOME
DEGREE THE AGGRESSION THAT WE
SEE ON THE OUTSIDE.
THIS IS A MAJOR, MAJOR TEST OF
CHINA’S FINANCIAL SYSTEM, THE
WHOLE QUESTION OF IS SOMETHING
TOO BIG TO FAIL IN CHINA IS
SOMETHING THAT HAS NEVER REALLY
BEEN ANSWERED TO THIS POINT.
IT ALSO SHOWS WHAT A LOT OF US
INCLUDING THIS PROGRAM HAVE BEEN
WARNING ABOUT, THAT A LOT OF OUR
FINANCIAL INVESTORS IN THE
UNITED STATES RANGING FROM
TEACHERS’ PENSIONS TO MUNICIPAL
BONDS TO A WHOLE HOST OF OTHER
INSTRUMENTS HAVE MASSIVE
EXPOSURE IN A SYSTEM THAT ABIDES
BY NONE OF THE STANDARDS THAT WE
REQUIRE IN OUR OWN MARKETS SO
THAT IMBALANCE PUTS AN
UNNECESSARY RISK OUT INTO OUR
MARKET, NOT JUST THEIRS.
MARIA: YEAH.
I WAS TALKING WITH A SOURCE
YESTERDAY AND CHINA’S REAL
ESTATE MARKET OBVIOUSLY HAS
BECOME BIGGER AND BIGGER PART OF
ITS OVERALL GDP.
THE REAL ESTATE HAS BEEN A
DRIVER OF THE ECONOMY.
IT ROSE FROM 5% OF GDP IN 1995
TO MORE THAN 13% IN 2019 OF
WHICH 70% IS DEVOTED TO RES
RESIDENTIAL BUILDING.
THIS IS GOING TO HAVE AN IMPACT
ON THE CHINESE ECONOMY AND
LIKELY THE ENTIRE WORLD ECONOMY.
REAL QUICK, BEFORE I MOVE ON,
CHINA’S BIGGEST MOVIE STAR WAS
ERASED FROM THE INTERNET.
WE ARE STILL TRYING TO
UNDERSTAND WHY.
HE SPENTSHE SPENT SO MUCHTIME AS
WITHERSPOON OF CHINA IS HOW THE
WALL STREET JOURNAL EXPLAINS WHO
SHE IS.
SHE DIRECTED AWARD WINNING FILM,
SHE SOLD RECORDS, POP SINGER,
BUILT A LARGE FOLLOWING.
MAYBE THE BIGGEST MISS THE TAKE
SHE MADE WAS INVESTING IN JACK
MA AND INVESTING IN JACK MA’S
ALIBABA.
SHE’S BEEN DISAPPEARED FROM THE
INTERNET.
YOU CAN’T EVEN GO TO HER FAN
PAGE AND SEE ANYTHING ABOUT HER.
IT’S COMPLETELY BLANK.
WE DON’T KNOW WHAT SHE DID BUT
THE CCP IS DOING WHAT THEY CCP
DOES AND JUST DISAPPEARING
PEOPLE IF THEY ARE NOT IN LINE
WITH CCP RULES.
YOUR THOUGHTS?
>> IT’S QUITE REMARKABLE.
I YOU MEAN, A LOT OF US WHO HAVE
STUDIED THE CCP FOR MANY, MANY
YEARS YOU KNOW THAT THIS IS AT
ITS CORE AN EVIL ORGANIZATION
AND YET PEOPLE CAN MAKE A LOT OF
MONEY FOR A PERIOD OF TIME AS
LONG AS YOU’RE IN THEIR GOOD
GRACES BUT YOU FLY TOO CLOSE TO
THE SUN AND YOUR WAX WINGS WILL
MELT QUICKLY.
SO WHETHER YOU ARE GAMING IN
MACAU OR INOF VESTING IN REAL
ESTATE IN -- INVESTING IN REAL
ESTATE IN CHINA OR YOU’RE
ENTERTAINMENT OR TECH OR MOVING
SUPPLY CHAINS OUT OF CHINA, ALL
OF THIS IS GREAT MONEY UNTIL THE
CCP SAYS YOU’RE DONE.
AND THE CURTAIN COMES DOWN VERY
QUICKLY, WITHOUT WARNING.
MARIA: THAT’S WHAT HAPPENED TO
JACK MA.
HE WAS GONE FOR THREE MONTHS.
NOBODY SAW HIM, HEARD FROM HIM
AT ALL.
WE DON’T EVEN KNOW HIS
WHEREABOUTS RIGHT NOW.
BEFORE YOU GO, REAL QUICK ON THE
AFGHANISTAN MESS AND GENERAL
MILLEY AND THIS PHONE CALL THAT
HE HAD WITH HIS COUNTERPARTS IN
CHINA, ARE WE GOING TO SEE ANY
ACCOUNTABILITY FOR ALL OF THESE
MISSTEPS?
WHAT DO YOU THINK ABOUT MILLEY
AND ABOUT THE AFGHANISTAN
WITHDRAWAL?
>> WELL, I THINK THE POLICY
DIRECTION OF ENDING THE WAR IN
AFGHANISTAN IS CORRECT AND I
THINK THAT MANY, MANY PEOPLE
HAVE MADE THE POINT, IT’S THE
WAY IT’S BEEN DONE THAT IS
PROFOUNDLY BAD AND DANGEROUS.
SOMEWHAT SIMILAR WITH THE PHONE
CALLS.
THE FACT OF THE PHONE CALL IS
NOT THE ISSUE BUT HOW THIS WAS
DONE COMES DANGEROUSLY CLOSE TO
TREASON, IF IT DOESN’T CROSS THE
LINE.
IN MY EXPERIENCE, IT’S EXTREMELY
UNUSUAL FOR ANY ADVISOR TO THE
PRESIDENT OF THE UNITED STATES
TO BE ENGAGING THEIR
COUNTERPARTS ON SOMETHING AS
SENSITIVE AS THIS WITHOUT THE
PRESIDENT KNOWING BEFORE, DURING
AND AFTER.
SO THIS WORK-AROUND TO SHIELD
OUT THE REST OF THE NATIONAL
SECURITY TOP LEADERSHIP AND THE
PRESIDENT GOES COMPLETELY
CONTRARY TO WHAT THE ROLE AND
MISSION IS FOR THE CHAIRMAN OF
THE JOINT CHIEFS OF STAFF.
I DON’T THINK HE SHOULD HAVE HAD
THE JOB TO BEGIN WITH.
THAT WAS A PROBLEM OF PERSONNEL
BEFORE.
BUT HIS ACTIONS I THINK ARE
TREASONOUS, ARE INAPPROPRIATE
AND THEY SEND THE WRONG SIGNAL
TO CHINA.
NO ONE IN THE RIGHT MIND THOUGHT
DONALD TRUMP WAS ABOUT TO ATTACK
CHINA.
WHY TAKE THAT BAIT?
WHY ENGAGE IN THIS CHARADE?
MARIA: IT’S UNBELIEVABLE.
THE BIGGEST MISSTEP IN MY VIEW
IS BAGRAM AIRBASE BECAUSE CHINA
WANTS TO MOVE LIGHT INTO THIS
STRATEGICALLY LOCATED AIRBASE.
WE HAVE LOST OUR EYES AND EARS
IN THAT PART OF THE WORLD.
WE ARE COMPLETELY DARK WHICH IS