The U.S.’s Dangerous Relationship With China
Author Peter Kiernan discusses the state of America’s global financial relationships.
- Duration 7:58
- Date Mar 1, 2012
Author Peter Kiernan discusses the state of America’s global financial relationships.
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Morning's pleasure being here Mario I'm great thanks sort of spirit of Goldman Sachs I am a card carrying member of that discredited class -- what did you do that are.
I -- delivered everything but I was investment banker for months of advising big corporations.
Sold did you go to prison or did you just leave there are I gotta clean -- -- about a dozen years ago auto that I took the cure.
-- -- -- -- -- The book is essentially about how you lead in uncertain times any -- who were act passed so that would say what are ten issues -- -- -- we got to face we prioritize them and go after.
That's something we used to do as a country we don't do it anymore.
So all -- explain to me about becoming China's -- until the dilemma we have with China is we're in a co dependency with them.
We buy their cheap goods and they provide us with debt and we have to -- about 42% of our budget every year and you know how wise is it to have your number one trading partner be your number one lender at the same time.
So what can so it's you're armored truck sales about those children trump actually silence I don't know what Schwartz has about it so we -- -- we we should tell that we're gonna put up -- -- that turned him all solve -- I think it's high time that we had a real conversation.
This has been a rigged this in every game for a long time may devalue their currency 1994 by 50% one day.
Since that time we lost six million manufacturing jobs they've made ten.
It's time for talk way way past time for assaults sort of -- things trump discretion on not one of those -- or such discretion about.
-- -- and businesses want to close this month sentence.
What are they gonna do which element a couple of Poland and well here's here's the dilemma -- eight the year the dilemma is great thing happened last year General Motors made it back to number one that was a great day for America -- Wall Street coming back GM coming back those employees should feel great they sold nine million cars that was a great day for them a great day for our country.
Two and a half million of those cars.
Were sold to China.
-- a tango China they're gonna be in airline to us for the rest of our lives.
On a government bailed out Wall Street around carcass should just horrible approvals I did I did listen when we don't know how -- Wall -- You know look there's a great big fire the greatest fire ever saw.
I was only on Wall Street for 20/20 five years with the greatest fire ever saw and we had to put the fire out.
Now a lot of people come back afterwards and said do you you know quite a bit of water damage and their right OK we we to Wall Street -- -- the collective apology but at the time.
There was no other option and TARP I don't know how out of that moved on Wall Street just on the message -- them well I think you have to divide into two buckets one is that people who -- The other people who just a bad guys and they should be punished I think there will be or some -- well I'll leave that to that.
The authorities to figure out but the -- or why we're why we're near -- -- you know by I don't know or you don't I know there are some who were I'm not -- -- no names named no names to name.
But I will say that are much like our targeted during November and -- wanted to I don't know you're just not a trusting guy you know I'll.
And so all much bigger market isn't there -- guided every murder was so and I think I think I got an immunity pass your arms and rough guys on Wall Street there -- says a rough place but you know what they're also a lot of dumb guys and that's the bigger bucket and I think an off lot of people who -- down there -- just plain stupid myself included.
Didn't realize the risk didn't analyze what could go wrong.
And I it affected us in China today truth because to that time you know we were arrogant mr.
Lawrence and the -- we have these derivatives is kind of mysterious -- -- capital markets.
Best left to the experts.
Two years later we're down on bended knees -- -- bail -- -- you know we're we're -- -- and so now something interesting is happy talk to the forty something CEOs over there.
Right now that they understand capitalism better than we -- they believe their capitalism is gonna be.
More effective than ours and in the G-7 G-8 they expect fully -- G1 wonderful thing.
One of the things that almost everybody spiritually -- doesn't know -- -- Walsh has been held accountable.
You know it's extraordinary isn't it I think the SEC is getting on to some recent sort of trading ground.
-- dial looks like notre brutal just mirage -- heard of such Roger Roger I don't know how you -- I mean I'm -- Comodo.
I let you like that dialogue and development mean governments.
Don't like -- the -- -- of being blown away in handcuffs.
Of -- readjust after brutal all right we did you have a split screen we are concerned and we've separated at birth there we're talking hundred Karen has embarked -- becoming China's bitch.
But -- market gestures should avoid -- back to -- -- being held accountable -- I was just gonna say it's high time that they war I think there are people who basically bent the law there -- dozens of cases of insider trading in their prosecuting and they're gonna get them.
So all night you -- -- -- verse talks are essentially -- -- -- -- in the book and -- -- Like I couldn't figure out why other -- -- this are directed to implement or correct well if that's it added virtue that's great the president I would.
Little kinder to what -- some others -- as a point.
The point was that.
We came from -- world -- there -- three networks and the news got delivered basically sanitized completely objective with no influence or color.
And then with the emergence of the cable industry suddenly there was a lot more -- a lot more channels than they were dying for content.
Just about that time.
There were out and radio land lots of people who were basically practicing -- different craft which is bring in their own opinions their own ideas and our interpretation of the news and it turned out that that was appealing.
There's a gray line -- -- wild and never confuse the public interest with what's interest into the public and what was happening over a lot of these folks were getting.
Lots of traction with the public and that is essentially what fomented the news talk phenomenon that we're seeing today so becoming China's -- was written for our.
Average forks or -- it is actually written for average folks I think what I'm really asking for people who do -- re frame their relationship with their government that they're basically instead of letting the government tell you how it's going to be.
We have ten challenges let's let's focus them.
Let's have Obama be last -- elected -- we have no idea where they stand on China we've had when he Republican debates.
All I know is about -- sex life and how much Mitt Romney wants to -- I don't know anything about health care a lot of the key issues were facing because it's just not cover.
So I about it officer and event government could approach and running -- an abrupt.
Oh gosh you know I think the president's gonna get -- great tail wind because economy is gonna turn.
You know never getting -- bet against the fifteen trillion dollar economy and we're stern sees signs of spring and I think if made is the nominee and I presume he's gonna be.
He's gonna have a tough fight.
If there was a class and improper in college minute -- gone and half.
He's the worst I've ever seen an open field running trying to get off descriptive I don't know how he's gonna do -- -- -- going to economy is gonna -- -- the Boehner I think it's slowly but surely gonna get you you simply look everywhere and you see little signs of spring.
That -- cross currents if the Iranians close the straits of Hormuz I think it's all bets are off I think a lot of things in Europe are still.
Far from figured out the Greeks -- many gifts and we got to Wear them.
Been able to get booked on shows like FOX & Friends her system that is showing no children born in America you -- I think frankly -- of the more precious in my vocal this is subtitled a student of a bit more you know or my looks one of the -- -- a look at guys -- such a minute while not be of service about.
Is that there's -- -- -- -- officials you know the title is keeping us some shows but you know obviously you can look at this 12 ways either I've got something to say around the -- western civilization and people come -- -- both sides of that and -- -- -- that.
While some messes up that vote for children's reports of some sort of scholarship to go on demand -- honor.
I'll tell you sent me they've heard what -- can we get him on that show.
I'll weekly chart now we're -- -- -- -- male gorilla of the -- thank you very much of.