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Thought North Korea is -- dictator Kim Jung ill on a marathon trek across China where he actually had a meeting with the Chinese President Hu Jintao.
-- weeklong visit for Kim Jong -- now Gordon Chang is the author of nuclear showdown North Korea takes on the world among other books and he joins us.
With maybe a little bit more on what this open meetings might mean what does it mean for us -- these two get together do you think.
Well -- these two are really trying to talk investment -- blood between themselves but for us it really is geopolitical security because.
I think that China and North Korea -- -- lure us back to the six party talks from those talks have been fruitless they started in 2003.
They haven't met since 2008.
And as they continue to talk in these these format what happens is Kim Jong-Il is able to improve his missiles.
That means in about five years he'll be able to landed -- in the continental United States this is a -- -- as they -- he improves -- -- right because you know these talks have been going on and and Kim -- is not gonna give up his nuclear weapons focus not gonna give up his missiles gives him more time and gives him more -- to perfect as missiles now he's talking to a leader -- -- on his way out in China Italy new president coming in to replace -- to tell but.
In what type of a country -- -- you've been making the case as a set among other -- she'd actually written a book about it the coming collapse of China.
-- China is essentially gonna collapse or maybe at least slow down -- do you still see that really know.
Clearly the Chinese economy has been slowing down really more than a year -- GD righty has been coming all they're doing some of that -- purpose they because they -- growing -- too quickly and right because they over stimulated their economy and now they've got a really persistent inflation problem that they don't know how to deal with you know and they over stimulated their economy they created asset bubbles and inflation.
And now they -- the prospect really slow growth and higher inflation and that's the worst of all possible -- stagflation but slow growth -- a long there's a long way to go in China this -- for us in their financing our debt and with one of many reasons but.
What slow growth in China what does that look like I mean what would slow growth in China -- certainly not the same as what we it would consider slow growth here I'm sure yet.
Mean slow growth for the Chinese and 7% 5%.
But you got to remember that the last time they had a really serious inflation problem which was the middle of the 1990s.
Growth went to about zero in 1997.
-- -- -- stagflation now all of a sudden I mean that's a little stretch -- failure except if you got 1213%.
Inflation right now they've got about 11% and it's gonna get worse this summer with the drought you don't think they can manage it.
I think that -- really hard time because their political system right now is going into this transition leaders aren't gonna take the steps that are necessary to deal with inflation.
And so it's gonna get out of control and it matters for us why.
-- well I think that essentially the Chinese economy sinks -- -- we're gonna panic but it really don't.
Not that important for us because we have a big internal economy.
And you know we don't really depend on a lot of the -- OK so that is interesting and that's a wider conversation which we can have again did you think we can we can -- Gordon good will you again.
Gordon Chang joining us.
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