The following interview was done on September 27th, 2019 but only recently made available to the public. While watching this interview, please remember, almost all of DC and Wall Street adores China and refers to Russia as the boogeyman. As a country, we would not be at this stage of confrontation with China if it had not been for President Donald Trump. If we could have moved the DC/NYC establishment to understand our bigger problem with China, it would have been easy to partner with Russia to confront the growing threat of China. Organizations like The Atlantic Council and our own “stuck in the mud” bureaucrats have harmed US Foreign Policy and cost us 3 years of progress in stopping China.
This interview is extraordinary because it combines Kyle Bass’ expertise on China finance/monetary supply with the expertise of Air Force General Robert Spalding, who was THE Advisor to the Joint Chiefs on China and accompanied Chinese Generals to Mar-A-Lago during the first meeting between Xi and Donald Trump.
The interview is 58:38 long, please bookmark and watch at your leisure.
Robert Spalding has written a book called “Stealth War” on “How China took over while American Elites Slept”.
Background on Spalding:
In 2001, the year China entered the WTO, Spalding was chosen as an Olmsted Scholar, one of three people from each branch of the military, to learn Mandarin and go live in China for two years, as the USA Department of Defense Attache to China. He attended the Defense Dept’s language school in Monterrey, and lived in eastern Shanghai for 2yrs (2002-2004), traveling the country and was exposed to top levels of Chinese government, and our government.
Spalding discusses his original impression of China; love for the people, food, industriousness, prosperity everywhere….. and how his impression of China has changed over the years.
By 2004, returning back to the USA, Spalding joined the Council on Foreign Relations (I know, I know), where he met business leaders and became alarmed by their attitude on China. Think about a man whose entire life was expertise in the military, suddenly exposed to the inner workings of Business School #101. It’s a completely different mindset and skill set. Spalding realized how naive he was, and how diplomats + the biz community had been fooled by China.
Robert Spalding has taken a massive “red pill” and is fully aware of China’s threat to the USA and the rest of the world. Chairman Xi talks about free trade and “globalism” on a public stage, with profit as a motive. As Americans, we think free trade is a good thing and along with trade comes personal responsibility, ethics, rule of law, contracts, etc. Since Nixon opened China, our leaders thought exposure to western democracy would “rub off ” on China and they would become more like us. The exact opposite has become true. China takes our money, hollows out America, and is exporting their censorship/communist values to the West. Keep in mind, this interview was done BEFORE the NBA incident.
What we are only becoming aware of is that the Chinese are still communists and will never change…… The Chinese did adopt our profit motive but cast aside everything else so prevalent in a democracy/republic. The CCP controls everything in China and their goal is to “control the narrative”, governing how one thinks and speaks. Sound familiar? No criticism of the party or established narrative is allowed. Again, sound familiar?
The interview includes eye-opening discussions of the PLA and the CCP within China and how the censorship and control over the people overrides everything in China, from the significant to the mundane. The stories will jolt one’s senses.
China’s Underlying Motives:
Privately, Chinese officials will admit their primary goal is to dominate the world. They believe they have endured a “Century of Humiliation” which is our fault, the fault of the USA, because they were the big player for thousands of years and they will be again. Their goal is to use our own greed against us, bankrupt us, and force us to submit. Americans who became billionaires working in China, are so entrapped by fear of losing their wealth, they now openly advocate for the Chinese System. They’re too far gone. Again, look at the NBA, Nike, the US Chamber of Commerce, or Michael Bloomberg. These billionaires run directly contrary to US national security interests and casually sell out to China.
Organ Harvesting: It’s real.
The UK recently had a tribunal, presided over by the same guy who did Slobodan Milosevic’s war crimes trial. They interviewed hundreds of people who escaped from the camps in Xinjiang as well as physicians who performed organ harvesting. The report and findings can be located on (ChinaTribunal . com) and……. be prepared. In fact,the CCP removes organs from people who are still alive, merely paralyzed…. and they have a nice new crematorium.
Organ Harvesting is so pervasive in China, one can now make an appointment for a heart transplant. Think about this for a minute. In the USA and other countries, to receive a heart transplant takes extensive testing/cross matching and the recipient goes on a waiting list. When the organ suddenly becomes available, the recipient must act quickly, fly to the location, or the heart is flown with all due speed. In China, wealthy Chinese and foreigners can make an appointment, a month in advance, because the CCP has cross-matched, the tissue, bloodwork, ultrasounds, the DNA, of all their prisoners…….. and they know exactly the person who has the necessary organs. It’s quite lucrative. Imagine that one.
It’s now suspected as many as 3 million Uighurs and other religious “undesirables” are held in internment camps in northwestern China. Many of them are Christian, “prisoners of conscience”, create a “buffet line of organs” for the PLA/CCP. Again, the Chinese regime adopted our profit motive, and cast aside everything else which goes along with it; human rights, civil liberty, rule of law, self determination, ethics.
The only country to BLOCK organ transplants from China or travel to China for organ transplants is Israel, because the heart surgeon in Israel who was counseling an ill patient learned his patient “had an appointment in China next month”….. which meant someone was going to die…. on a schedule. Israel blocked China organ transplants.
Wrap your head around the idea that there are no ethics or rule of law in China. Again, this is purely about profit. The generic drug supply in the USA is about 80-90% Chinese origin and is also tainted with carcinogens. The same factories which produce blood pressure meds also produce Chinese Fentanyl, and about 90% of the heroin and fentanyl in the USA is straight from these factories (southern border, US mail, or express scripts out of Canada). It accounts for about 40K deaths a year, on purpose, from China. In fact, the Chinese have genetically altered the poppy plant so now, they can grow it year round = more opioids.
AND —- Spalding notes, the 40K deaths a year came after China took 70,000 factories, 3.4 million manufacturing jobs, plus the accompanying service sector, about 13 million jobs in total, eviscerating employees healthcare and retirement funds, destroying those American communities…… and then shipped in the drugs to kill the people, our fellow Americans.
The DEA/FBI responds, “China has been most cooperative”, because one or two people go to jail, a DEA bureaucrat receives an award for his investigation, but the criminals in China are released in a few weeks. The chemical makeup of the drug is then slightly altered and thus, the Chinese factories are able to maintain a few steps ahead of the DEA in the USA. In the USA, because we hold people personally responsible, we are conditioned to charge, legally, the individual. That’s not the way China works. Robert Spalding posits, until we charge the country, the shipping line, seize Chinese assets in the USA, the problem of fentanyl will continue.
Lack of Transparency Helps the CCP Maintain Control:
Imagine for a moment, 1.4 billion people who only watched CNN, or for that matter, FOX News. Imagine only one source of state news, one narrative, being pushed, and if anyone searches for truth, begins to tip over the rocks, that person is penalized. Yeah, we’re beginning to see it here in the USA with our media and the persecution of Repubs/Trump Supporters, but imagine no other lines of communication in an entire country, and it’s been going on for a generation. The CCP has been very successful in stopping the ability of people to think for themselves, everything is locked down physically and electronically.
……… Which is why Hong Kong is such a nightmare for them. The videos, cameras, are everywhere and eventually smuggled out. The Chinese can’t control the rebellion in Hong Kong, whereas they CAN successfully hide 3 million prisoners in Xinjiang.
Why Don’t We Understand China? How Did Our Leaders Get It So Wrong?
Spalding tells an anecdote of his first meal in a Chinese restaurant and how he was disappointed by no fortune cookie. He didn’t realize the fortune cookie was an invention of a Japanese guy in San Francisco and not indicative to China, but it made a larger impression on him. HE was supposed to be an expert on China, and he had no idea about China. He was naive.
Expanding the idea of American Leadership naivety, Spalding looks back. When the Soviet Union fell apart, the Chinese Communists began to engage with American Republicans and Democrats. Our leaders went to China on junkets sponsored by the Communist Chinese…… and our leaders only saw what the Chinese wanted them to see. The rose-colored glasses were pervasive.
Spalding sums it up succinctly. American politicains and biz leaders had the 40yr idea that more American exposure in China would open China up, make them more like us, and that China wanted to be like us. Yet, no one ever went to the Chinese and said, “Hey, do you want to me more like the USA?”, because if anyone did that, the Chinese would surely reply, “Hell no, we don’t want to be like you at all……… we want to dominate you.”
Bass and Spalding tell the famous story of Bloomberg’s epic background piece on Xi’s family, how wealthy they were, when Xi first came to power. Bloomberg was warned, don’t talk about Xi or you will be penalized…… and they shut down Bloomberg’s terminals in China for a while. Now, Bloomberg is self-censored and frankly, attacks anyone who is anti-China. Easy peasy, eh? China cowed Bloomberg, and China didn’t fire a shot. Again, pure greed, the profit motive, won out, even though all other morals and ethics we know of went out the window.
How Do We Fix It?
Overall, we must be much more tough on China. We need to penalize the CCP, the party, and not individuals, as the CCP is the overlayer on anything Chinese. China will counter, as they always do, “How can you attack 1.4 billion people and think we’re all mean/bad/organ harvesting/hacking USA defense contractors?” This is how the CCP hides behind the population. In other words, we’re “racist” if we object. Sound familiar?
First example is fentanyl. When the huge shipment of fentanyl 31K metric tons, was found in Philadelphia, we should have taken action. Stop all Chinese ships, none can dock, will be turned away for a month, levy hundred million dollar penalties, against China, shipping lines, and seize assets owned by Chinese entities in the USA.
In other words, the USA needs to play hardball with the CCP, because the CCP runs everything in China. Forget about individual cases or charges. Charge Huawei, instead of the princess who is being kept in Vancouver.
How China Silences Dissent Within The USA:
Astonishing story. Spalding was with the Chinese delegation when Xi met with Trump at Mar-A-Lago. After the summit, Spalding was on the plane from south Florida back to NY, to catch another plane onward to China.
Spalding was on the plane. The Chinese Generals were up front. Spalding was in back with a bunch of Chinese nationals who were bandaged and kind of roughed up, etc. They were talking in Chinese and since he speaks the language, he struck up a conversation. Come to find out, when Xi or another notable travels overseas, a call goes out to Chinese students and nationals within the foreign country. Their duty is to line the path of Xi and suppress all dissent or protests along the way. They are trained/ordered/commanded to surround the protesters and quash all dissent…….. within another country……. in this case, within the USA. Thus, when a Chinese leader comes to the USA, he establishes a “zone” of China’s rules on OUR soil. Guess we now know why AOC and her greenies are not protesting at the Chinese Embassy.
Kyle Bass asks why we didn’t arrest anyone. Spalding responds, shockingly. Many of the wrongs of China could have been addressed over the decades, by prior administrations. Yet, our government excused ALL the wrongs of China because of other priorities —- We excused ZTE because the State Dept wanted help from China to suppress North Korea, on Climate Change, etc.
Hmmm, is that the reason President Trump went after Kim Jong Un so quickly? To remove the bargaining chip China held? And withdrew from the Paris Accord? Makes sense…….
Can We Coexist With China?
No, not as it stands currently. “Reformers” in the Chinese Communist Party only want to kill us more slowly than the hawks. Bass was mildly shocked. To drive home the point, Spalding comes around again to the CCP Constitution, thousands of pages, a little known document, called Document #9. It’s the exact opposite of America’s Bill of Rights. The Chinese think our Bill of Rights would destroy the Communist party (interesting) and therefore, their citizens intentionally do not have these Bill of Rights. Moreover, it is the job of the CCP to counteract those rights (our freedoms) overseas as well — within our country. In the USA, our Constitution/Bill of Rights ensures a system so perfect no one party has overall control, but if the citizens deem it necessary, we allow for overthrow and repositioning of our government.
And in a modern world, Spalding posits, whereas we rely on our second amendment for ultimate self defense, an equalizer, what the Chinese are doing is MORE dangerous because of 5G – because the Chinese could influence us to shoot our neighbor — or ultimately, we cannot protest or overthrow an entity who lurks behind a wall of the internet and a surveillance state.
The problem of China developing 5G is monumental. If China installs networks in the 90 countries who have already signed on, the Chinese will export THEIR values (no Bill of Rights at all) to 90 countries. In this way, citizens will voluntarily give up their free speech, their freedom of religion, for more money and a better social credit score. The ability to influence is also the ability to oppress.
On top of the 5G network, the Chinese will build business platforms dependent on communication flowing on their networks……… which will grow and quickly dwarf the likes of (FANG) Facebook, Amazon, Netflix, Google. To compound the problem, all the data will be owned by the Chinese……….. as well as the ability to bill all those people in 90 countries, which is access to a whole lot of money…….. and how China can possibly get out of their currency overvaluation. Companies like Alibaba (billing) and Tencent will emerge and own the platforms AND the pipe of delivery. See the problem?
Spalding also elaborates on how the USA used to spend 2% of GDP on Research and Development, to places like NASA and Bell Labs, which drove our economic prosperity. All the guys who took us to the moon, went to school and worked on projects, funded by the USA government. At some point, late 1960’s, after we started spending money on entitlements and welfare, the USA decided private sector should do the R&D. We also ignored our infrastructure. Unfortunately, the private sector built factories, cities, ports, roads, in China…….. and not in the USA, and they did it with OUR money, to the detriment of our citizens.
The Chinese easily stole the technology from Bell Labs, and other high tech or manufacturing firms within the USA. Don’t just think it’s CCP members hacking our data, either. Sometimes, the CEO’s willingly turn over the tech, because the Chinese adopted “profit motive” from the west.
Eventually, China bankrupts the USA, just like we did to the Soviets. It’s what China wants, absolute submission.
Will Our Moral Compass Emerge?
We wonder…. was the NBA confrontation the spark? At what point do we begin to put a price on free speech or all of our Rights? In fact, it has perplexed the Chinese with the current protests in Hong Kong. Seems like the Chinese thought the people of Hong Kong would naturally want to drift towards China, fold within China, become just another city of China. They don’t understand those in Hong Kong who refuse to give up their freedoms…… because the CCP thinks they are so cool, “Who wouldn’t want to be us, the great and omnipotent CCP?”
Spalding hesitates and cautions us. It would be so easy to not look under the rocks, to not question, to go along and get along. Look at what it’s like to live in Hollywood right now as an actor….. go along and get along. Look at our college campuses and imagine what it’s like to be a conservative humanities professor….. go along to get along. Look at our Thanksgiving table, as we voluntarily silence ourselves to not cause controversy, so we are not ostracized by our own families. It’s seductive, it’s easier………. go along to get along. We’re giving up everything we hold dear and everything for which our ancestors fought.
Like President Trump has noted, his administration would be so much easier without the need to confront China. He could have ignored the problem as past Presidents did. But it’s not the right thing to do.
President Trump is the perfect person, with extensive history as a businessman dealing in China, who rents commercial space to the Bank of China, to finally confront the Chinese and ensure prosperity of the USA.
The key is to control China’s access to US Dollars. No one else wants China’s currency because no one else trusts China. It’s true, China is about 15% of the world’s economy, but only 9/10th’s of 1% of the world’s international transactions settle in Chinese Yuan. It’s funny money. They have to have our dollars to import the goods they need. Without the USD, their economy comes to a standstill.