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Save up to 40% your first year. Visit lifelock.com podcast terms apply. Welcome to the PDB Situation Report. I'm Mike Baker, your eyes and ears on the world stage. All right, let's get briefed. We're kicking off today's show with a close look at Donald Trump's Cabinet picks. And some of those selections could shape America's approach to China. Now joining us is author and good friend of the show, Gordon Chang. He'll be providing his expert analysis on what these choices mean for the US China relationship later in the program. In what's becoming an ongoing issue for America's military, and this is very interesting, three bases in the UK used by the US Air Force are getting buzzed by unidentified drones. We'll talk to retired US Army Colonel John Mills about that. But first, today's situation report. Spotlight. Donald Trump's Cabinet choices are sending a clear signal about his administration's approach to China. Two appointments stand out. Senator Marco Rubio, of course, for Secretary of State, and billionaire investor Scott Besant for Treasury Secretary. Now, Rubio has built his reputation as a staunch critic of Beijing, often highlighting its human rights abuses and military aggression in the Indo Pacific, well, he's not wrong. As Secretary of State, he would likely steer US Diplomacy toward a more confrontational stance against China. On the economic front, Scott Besant's nomination as Treasury Secretary, well, that suggests an equally firm approach. A strong proponent of tariffs, Besant has argued that they're essential to countering unfair trade practices, a strategy that aligns with Trump's previous policies on China. Now, these selections underscore a broader strategy to Confront China on multiple levels, from diplomacy to trade to security. For more on this, let me bring in Gordon Chang. He's the author of a great new book. It's called Plan China's Project to Destroy America. You can check him out on X. Gordon G. Chang. Gordon, thank you very much for joining us again today.
Gordon Chang
Oh, well, thank you, Mike Gordon.
Mike Baker
We managed to do it. We survived the election. You know, he's pretty much settled into his nomination picks, and that's where I'd love to start today, is to get your assessment from sort of a forward look towards the China US Relationship. I'd like to get your assessment of his key picks. And maybe we start with secretary of state, we start with treasury secretary, and then just kind of roam wherever you want to on that one.
Gordon Chang
President Trump's picks indicate that he's going to, first of all, go for tariffs, which we saw in the beginning of this week with the announcement of 25% tariffs on Mexico and Canada and the additional 10% tariffs on China for fentanyl. And clearly, Trump is probably going to add some more tariffs on China as well. This is important because it's going to rearrange trade flows around the world. And because of that, I think these picks are good ones because we're talking about people who will support his tariff initiative. So I think, you know, when you look at the treasury, his nominee Bessette probably was a little bit reluctant about tariffs to start out with. But there are, there is reporting that Trump insisted that he support tariffs should he nominate him. And so this is going, I think, in the right direction. And of course, you have China hawks, you have China hawks at the State Department, Marco Rubio, and as National Security Adviser, Michael Waltz. So right now, the president has made it clear where he's going, at least as a first position in his administration.
Mike Baker
Do you imagine with the tariffs? Because I've heard a lot of talk about, you know, their use as a negotiating tool. Do you get the impression that a lot of this early talk related to the tariffs is more about positioning for trade talks down the road, or do you think they're actually serious about just laying these on right from the outset?
Gordon Chang
Probably both. You know, a lot of people talk about these tariffs as negotiating tools, and Trump has used that, you know, in his first term, he imposed the 25% across the board tariffs in 2018. And in the beginning of 2020, he had his phase one trade deal, which I think was a mistake. But nonetheless, you can see that the tariffs set the stage for that agreement this time yeah, he could negotiate them. But we've got to remember that during the campaign, he talked about tariffs continually. And it wasn't just sort of off the cuff talk. He actually discussed McKinley and the effect of the McKinley tariffs on the American economy. And that shows that he's actually done a lot of learning about this because this is a president who obviously believes deeply in rearranging trade through these levies.
Mike Baker
Now, last time we talked, Gordon, you said something that I thought was fascinating and you've alluded to it in the past. But I'd like to talk about a little bit more in light of folks like Waltz and Rubio being put in for confirmation in these important positions. And what you had said was that China essentially is on a war footing with the West. It's just that the west doesn't either understand that or chooses to ignore it for whatever reason. You obviously were in favor, based on what you've just said, of folks like Rubio being in these positions. But what are you seeing or what are you hearing from the Chinese regime side in these early days? I know we're still well away from the inauguration, but have they been positioning or saying anything or setting the table for this incoming administration?
Gordon Chang
What's fascinating, Mike, is that throughout this month, we have seen China go uncharacteristically quiet in its peripheral seas and airspace. And that's a real indication that the regime in Beijing is very concerned about Trump. They're giving him a wide berth. They don't want to take him on, at least at this stage. And that's a real indication of, I think, a realization in Beijing that they have got to please Trump. So at this time, at least, and I don't know how long this will last, but at this time at least, things are going fairly well. You know, we've also seen some other things in China setting the stage. So, for instance, again, throughout this month, China has been forcing down the value of the renminbi. That looks like anticipation of a trade war with the United States or in anticipation of very high tariffs. When we go back to 2018, when Trump imposed his Section 301 tariffs, China picked up somewhere between 75 to 81% of the cost of those impositions. And this time they have even more incentive to do that. So I think that this move to force down the value of the currency is a real indication that they're getting ready, as you say, setting the table. So it's not just geopolitically, it's also from an economic point of view as.
Mike Baker
Well, to what degree? And let's imagine that we, we get into a trade war, right? That that relationship continues to, you know, escalate in terms of tensions. We get into a trade war. To what degree do you imagine the Chinese regime would, would use their advantage that they have in terms of, let's look at a variety of things, refining of rare earth minerals or their pharmaceutical industry. We saw that during the pandemic, right? How, how our supply chains have a real reliance in certain areas on Chinese production. So, I mean, I think there's, there's a lot of complexity here and things that we need to worry about other than just are prices increasing on certain goods.
Gordon Chang
Well, China has already imposed export embargoes on certain rare earths, and they could that. And as you point out, during the early years of the pandemic, or early months of the pandemic in 2020, they threatened to cut off pharmaceuticals. Got to remember that, yes, we have got to buy, but also China's got to sell. So I think what would happen would be if they were to say, impose export embargoes on pharmaceuticals, we'd still be able to buy Chinese pharmaceuticals. We may not be able to buy them from the Chinese directly, but we can buy them through third parties. Go back to 2010. China imposed an export ban on rare earths to Japan. Japan actually just bought them directly from Chinese state owned enterprises which had to sell despite the embargo. And the embargo lasted a month or two and then Beijing just capitulated. So I think we'd probably see the same thing here. If China were to impose export embargoes on the US they might be more determined with us than they were in 2010, but nonetheless, the market is a global one and we'd be able to source what we need. Higher price initially, but we'd be able to do it.
Mike Baker
Mike, that assumes that things don't get out of control, I suppose, right? I mean that, you know, if, if things really head south, then to what degree are we. Let's just keep looking at pharmaceuticals because that did create such a concern during the pandemic. And the pandemic is an ancient history, although people seem to be acting like it was or acting like we're not going to have another one. And of course we will have another pandemic. So if things really head south in this relationship between China and the US And I know I'm, you know, it's all speculation, but there's a real problem there. It seems if they say that's it, and as you refer to it export embargo on, on key pharmaceuticals, you know, antibiotics and sedatives and other things.
Gordon Chang
If things really go south, and there's a possibility of that, of course China probably wouldn't be in a position to export stuff even if it wanted to. Yeah. And we would suffer mightily, especially pharmaceuticals, which is an indication, a warning to us that this is something that we need to do on an emergency basis. We should have done this a long time ago, but nonetheless we have that critical vulnerability.
Mike Baker
Do you imagine. I haven't asked you this question in the past, but where are you on that? Do you believe fundamentally that we're not going to get in some sort of kinetic situation, we're not going to get into a shooting war with China, but that we, you know, I mean, where do you think this is going? Because I. My impression from what, how you just answered that was that you're a little hesitant to imagine that we would actually get to that point.
Gordon Chang
Bottom line, we need to be prepared for China to do anything at any place, at any time, because Xi Jinping is under domestic pressure and he can lash out. And we got to remember that in Beijing today, only the most hostile answers are considered to be acceptable. And I don't know if he can control escalation. Having said all that, at least at this moment, China is not ready to go to war. It's not ready to go to war because the senior leadership of the pla, People's Liberation army is in disarray with all of these purges which are continuing. Also, we have a Chinese military that just doesn't want to go to war, which is the reason why we've been seeing the removal of officers who are opposed to war. And we also have a Chinese military that, although it has a lot of shiny new weapons, is not confident because they, you know, they have not fought a war since 1979. In that 1979 war, their first string army got beaten up by Vietnam's third string. We saw real failures of command in 2020 when China launched a surprise attack against India in Galwan. This doesn't look good for the Chinese military. Also, we know the Chinese people don't want war right now. This is a populace that is really angry at the leadership and they're in no mood to go after and kill people, especially people that they consider to be Chinese. In other words, people in Taiwan. People in Taiwan don't think they're Chinese, but the people in China do. And the people in China do not want a war, especially with Taiwan. And then you got to remember one other thing. For Xi Jinping to launch a big war, combined, air, land, sea operation, he's got to give some general officer, some admiral or some general total or almost total control over the People's Liberation army, making that person the most powerful person in China. Xi Jinping doesn't trust his general officers even in the best of moments. He's certainly right now not going to trust any other figure to make that person more powerful than he is.
Mike Baker
As you're saying that, what popped into my mind is sort of the top line similarities between how you're describing the failures in command and control, the mistrust of generals between Xi Jinping and Vladimir Putin. Gordon, if you could stay right there, we'll take a quick break and then we'll be right back. Hey, Mike Baker here. Well, we did it. We survived a historical election. You might have heard something about it. Now, sure there's going to be some change in the White House. There always is in between administrations. But the fundamentals, well they haven't really changed. And the problem is the dollar is in decline with the US adding now get this $100,000 in debt every second. Think about that. $100,000 in new debt every second. It's unsustainable. Meanwhile, BRICS nations have introduced what they call the unit catchy name, a new global currency pegged 40% to gold and 60% to BRICS currencies which could mark the beginning of a global monetary reset. So you ask yourself what to do about it. Well, here's what I'll tell you. Call the proud Americans of the Patriot Gold Group today before it's too late. Mention PDB and you'll always get best in class service from patriots protecting patriots. Now Patriot Gold Group has the no fee for life IRA where your IRA or 401k can be in physical gold and silver and you may be eligible for the no fee for Life IRA on qualifying rollovers. Call 1-888-870-5457 for a free investor guide. And Patriot Gold Group might I say is consumer affairs top rated gold IRA dealer get this for seven years in a row. Call 1-888-8705457. Feel your Max with Brooks running and.
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Gordon Chang
You were doing now.
Mike Baker
Welcome back to the PDB Situation report. Joining me once again is the author of a terrific book, Plan China's Project to Destroy America. Check it out. Go to your bookstore. I'm not sure bookstores still exist, but wherever you get your books, go get it. Plan. Read China's Project to Destroy America. Gordon Chang. Gordon, thanks again for sticking around with us. A bunch of questions here, but you said something just before the break that I found very interesting. You said when discussing the situations amongst the Chinese leadership in Beijing, only the most hostile answers are acceptable. What do you mean by that?
Gordon Chang
Right now I think that Xi Jinping has configured the Chinese political system in a way which is really belligerent. Got to remember that he, when he became China's leader in 2012, he inherited a consensual political system where no Chinese leader got too much credit or too much blame. But by taking power from everybody else, he's created a lot of antagonism among senior figures. And he has made nationalism to be something that defines his rule, which means that only hostile answers are considered as acceptable because he has set markers for himself. He set them over Taiwan, Japan, Philippines, elsewhere. So if he goes back on it, which I think he's trying to do now, but when he goes back on that, other people are going to hold him to account for that. So this is something which is when.
Mike Baker
You say, Gordon, I'm sorry for interrupting. When you say going back on that, do you mean you get the sense that he's perhaps trying to moderate his position? And if that's the case, why would he be doing that?
Gordon Chang
Yeah, I think, well, certainly this month we have seen him moderate his position. And he's doing that, I think, because as I mentioned, he does not want to take on Trump right now. He doesn't think China's ready. And you know, we've seen Xi Jinping basically being afraid of Trump. That started in April 2017, when Xi was at Mar a Lago. And remember, at dinner, Trump stood up and said, I've just launched 59 missiles on Syria. Syria, by the way, is China's friend. And Xi Jinping was disrespected big time by Trump. And Xi was quiet. I think he was flummoxed. He did not know what to say. He could not respond. And that fortunately set the tone between the United States and China for the four years of Trump's first term. Now you're seeing Xi Jinping seeing something that he really didn't want, a return of Trump to the Oval Office. So I think that, you know, what we have seen at least this month, is Xi Jinping cooling it. This may not last, probably won't last. But at this point, I think that Xi Jinping is trying to walk it back. And that's going to be hard for him because as I mentioned, he's created all of these markers for himself, and they are the test of his legitimacy. And so with a very nationalistic wolf warrior foreign diplomacy, as they call it, that means he may not be able to control escalation. And as I said, only the hostile answers are considered to be acceptable ones.
Mike Baker
What about the population in general? I mean, it's a fascinating insight that you've just laid out for, for Xi Jinping's view on Trump, but what about, what are the pop. What are the people of China? What's the population think about Trump? What's their view in the first term?
Gordon Chang
They love Trump. They love Trump not because of what he said or what he did. Matter of fact, they didn't like what Trump said or did, but they liked his being unfiltered, being free, being spontaneous, being a human being. That is in comparison to Xi Jinping and especially his predecessor, Hu Jintao, who just basically lifeless. The other thing that they loved about Trump was that he took on the elites and won. And that gave them inspiration that they could do the same thing in China with the elites that they really, really hate. So from a style point, style points, Trump was just very popular in China. And by the way, that fed into the Communist Party's deepest fear about the United States. Communist Party believes it is in an existential struggle with the US and it's not because of anything that our leaders say or do, but it's because of who we are. You have an insecure regime in Beijing, is worried about the inspirational impact of our values and form of governance on the Chinese people. And Trump just makes this so much worse for the Communist Party.
Mike Baker
And how filtered is the news at this stage of the game in China?
Gordon Chang
It is filtered. China realized, the regime realizes that they can't keep out all news. So what they do is they spin it. They spend an extraordinary amount of effort putting news into context because they realize that one way or another, it does seep in. But yeah, they're trying to censor things. CNN will go off the air at times because the regime doesn't like what they're hearing. You know, they do still have the great firewall, which is the world's most sophisticated set of Internet controls. They don't try to keep out everything because they know that they can't be North Korea, but they are moving in that direction. And that's why Chinese netizens say that they are West Korea.
Mike Baker
You mentioned North Korea there. That raises an interesting question. For a long time, the thought process, at least in the west and certainly in the US Seems, have always been if you need to affect change in North Korea, you in a sense have to go through China, right, And exert pressure on China to then exert pressure on North Korea because of their relationship. Is that true? I mean, how much leverage, how much influence does the Chinese regime have over Kim Jong Un? And I'm asking that question. Obviously, because of the deepening relationship between Kim Jong Un and North Korea and Putin and his war effort in Ukraine.
Gordon Chang
China has enormous leverage over Kim Jong Un. It chooses often not to exercise it. But when China really wants something, it gets what it wants. You know, you have a lot of people in New York and Washington who say the Chinese and the Koreans hate each other and they've hated each other for centuries. Yes, all of that is true. But Kim Jong Un knows that the survival of his regime depends on China. As they say, you know, Russia is the ambulance, China is the hospital. Also, that's true for Russia. And I think Xi Jinping believes that he not only has enormous leverage over his friend Kim in Pyeongyang, but also his friend Putin in Moscow, because Moscow is only in this war because of Chinese continued assistance. If China cut it off, you know, Ukraine would win fairly short order. So right now there is, I think that this whole notion that China is upset about the growing relationship between Russia and North Korea, I think that's wrong. I think that actually the sale of shells, short range ballistic missiles, provision of troops, all of this, I think, was masterminded by China.
Mike Baker
That's really interesting because shortly after the news broke that North Korean troops were heading towards Russia for training and then deployment out on the Front lines. China's limited statements about it indicated that, well, we didn't know anything about it. You know, don't, don't, you know, don't ask us that. We're unaware. But what you're saying is in reality, there's very little likelihood that that would have taken place without both their understanding and possibly their approval.
Gordon Chang
And by the way, we got to remember that North Korean troops have been in Ukraine for a very long time because, you know, they've been, the, the North Koreans have been selling the shells and the inter. The short range ballistic missiles, and they've had North Korean logistics people there. And there are even reports that a long time ago North Koreans were killed in Ukrainian attacks. Now, what was new is that you have the four combat brigades, so that's about 12,800 troops. And with a promise that war will be coming, you know, people are talking a hundred thousand or so, we don't know where this will end. But yeah, this has been going on for a long time. China also has had advisors in the front lines because they've been supplying drones and other stuff. So of course the Chinese know the North Koreans have been there or months.
Mike Baker
One last question, Gordon, being mindful of your time. Just recently, the Chinese regime's defense minister refused to have a conversation with Boyd Austin, US Secretary of Defense. And there had been a lot of talk within the Biden administration over the past year about how we've rejuvenated this military to military conversation, which is important, I mean, which we need to maintain. There always has to be a channel of communication. But moving forward with the inauguration and then the Trump administration settling in, do you imagine that in the near future there could be a direct meeting between Trump and Xi Jinping?
Gordon Chang
Sure. You know, Trump always talks about negotiating with foreign leaders. You know, these military to military channels, Mike, I don't think that they're important. And the reason is the Chinese talk when they want to talk. They don't talk when they don't want to talk. The presence of, you know, a hotline or an established military communication channel is completely irrelevant. I mean, you. We don't have what is necessary, which is the cell phone numbers of, you know, our counterparts, because no Chinese general, no Chinese admiral will talk to us until they know the firm direction from the Politburo Standing Committee. So you can have all the established channels you want. They're not going to speak to us. And that's been the history of these hotlines that we have had with China. They don't speak with us until the direction has been set at the top of the political system. So let's stop chasing these Chinese generals and admirals. You know, if they want to talk to us, they have our phone numbers. The area code is 202. You can talk anytime you damn well please. But just call us, because we're not going to chase you to the ends of the earth to make ourselves in an inferior position. And by the way, the Defense Minister of China is not Lloyd Austin's counterpart. The Defense Minister in China is a much junior official to Lloyd Austin. So Lloyd Austin, he shouldn't be trying to talk to the Defense Minister. He should be trying to talk to his real counterpart in the Chinese system. His real counterpart is actually Xi Jinping in his role as Chairman of the Central Military Commission of the Communist Party. And Lloyd Austin should insist on speaking to Xi Jinping when they have quote, unquote, counterpart discussions.
Mike Baker
Yeah, I don't see that happening. And also, the clock's running out with the new administration coming in. Speaking of which, I can't believe they haven't called you for a senior foreign policy position, Gordon. But I would sit by your phone because that may well happen. Gordon Chang, author of a great new book. Go out and get this book. It's called Plan China's Project to Destroy America. Listen, Gordon, I can't thank you enough. Great friend of the show, and I hope next time we call, you'll. You'll pick up the phone and we'll have you back.
Gordon Chang
I certainly will do that, Mike. And by the way, on that other point, I've already got one boss, and I don't think I need another one.
Mike Baker
Yeah, I know that. I know the feeling. We're in the same boat, man. Listen, thank you very much, Gordon. I'll see you again.
Gordon Chang
Thanks, Mike.
Mike Baker
Coming up next, an alarming trend. Unidentified drones overflying US Military bases. Yeah, I'd call that alarming. Raising serious questions about aerospace security and what's being done to stop it. We'll have more on that with retired Army Colonel John Mills when we come back. Hey, Mike Baker here. Look, if you're tired of the same old coffee from those mega corporations. And you know the ones I'm talking about, right? Pushing their WOKE agendas. Well, listen up. It's time now to take a stand and support a brand that truly embodies American values. Of course I'm talking about blackout coffee. They stand with hardworking Americans who believe in family, faith and freedom. They roast some of the most incredible coffee you'll ever taste, and using only premium grade beans that are roasted and shipped to you within 48 hours. Right? Listen, that 48 hours they're in the roaster and then suddenly they're on your porch. Then you do it. You put them in your mug and Bob's your uncle. For the cold brew fans, Blackout Coffee is now also excited to announce the launch of their two new ready to drink cold brew coffee latte options. Don't settle for less. Make the switch to Blackout Coffee. You won't regret it. Head over to blackout coffee.com PDB and use the code PDB for 20% off your first order. That's 20% off your first order. That's blackout coffee.com PDB and again, the code is PDB. Join the movement and taste the difference. Remember, with every sip, you're supporting a brand that stands for America. And around these parts, as we say, be awake, not woke. Ford Pro Fin simple offers flexible financing.
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Right now at Blinds.com rules and restrictions may apply. Welcome back to the PDB Situation Report. I want to turn now to an ongoing challenge for the US Military. Unidentified drones overflying or buzzing American bases. Last week, small Unmanned Aerial Systems drones were spotted over and near three Royal Air Force bases in Eastern England that are used by the United States Air Force. Now, the Air Force confirmed the incidents at RAF Lincoln Heath, Mildenhall and Feltwell with sightings occurring between the 20th and 22nd November. Now, as of now, it's unclear whether these drones were hostile or part of some other activity. Perhaps hobbyists. But with both the US and UK acknowledging the incidents, this raises serious questions about airspace security around critical military installations. Yes, it does. And it raises the question, what are the militaries doing about it? Well, the news comes just weeks after the Pentagon confirmed that for 17 days last December. A fleet, not just one. I'm talking about a fleet of unidentified drones flew over Langley Air Force Base and Naval Station Norfolk, the world's largest naval port. So somewhat important, what's going on here? And why does the US Military seem unable to defend the airspace around the installations? Well, those are very good questions, and I'm glad you asked. For more on this, we've got retired Colonel John Mills with us. He's the former director of cybersecurity policy Strategy and International affairs at the Department of Defense. And you can't fit that all on one business card. And he's the host of in the Situation Room. You got to check that out, please. It's on Patriot tv. Colonel Mills, thanks very much for joining us.
John Mills
Hey, Mike, thank you so much not to be on your show again.
Mike Baker
Let's dive into the drone situation. I. I'm somewhat confused, as is most of America, when you've got drones flying over sensitive and classified sites, why we just let it happen? And then we say, well, we don't know what their intent is? Well, well, yeah, of course we don't, because we're not doing anything to stop it, it seems. Am I wrong?
John Mills
Well, Mike, I actually happen to work, have worked this issue for a number of years. I read press releases very closely because I've done a number of press releases in my career. And you have to read every single word because there's so much legal nuance built into those press releases. But and also on metrics, three data points mean a trend line. We now have three data points. Ampton Roads, Newport News, Virginia beach in December of 23. Earlier in November, Picatinny Arsenal up in New Jersey. Now we have the UK bases. Now in the press release, what got my attention was they used the term that the drones flew over the three UK facilities, which I think was Milden Hall. I think it was Lake and Heath Mill, Lake hall and one other, Feltwell, which is a kind of logistics space. I'm not sure that even has a Runway, but they flew over the fence line. This is extremely important because in New Jersey and then just the 17 nights in December 23rd, I don't believe they actually ever crossed a DOD or US US government fence line. Very important, especially in the American airspace environment, because it's all about roles and missions between the different departments and agencies. And what I worry about, I believe this was a state actor, is China is not just ripping off our classified stuff. They actually read our laws, policies, and regulations closer than we do and analyze them better.
Mike Baker
Than we do now.
John Mills
The running joke on the inside was, well, if they do that, we'll just rip it off through our signals intelligence and then we'll read it and we'll understand it too once they do their analysis. But they understand the gaps and seam lines and who's doing what in the domestic air space. In the UK they said they actually flew over the facilities. Not apparently. Now in the Virginia beach area, you got a US government facility you may be familiar with way in the upper left. And then you have Cheetah Manix, then you have Yorktown Naval Weapons Station, then you got Langley, you go all the way down to damn Nat Gannex, where we have a very sensitive special operations facility. I don't believe they flew for 17 days. I don't believe they actually flew over a DOD or US government facility. But they very, they were testing us.
Mike Baker
But now, I mean people look at that, right, and they say, well, why aren't we shooting them down? And the typical answer, at least in the US is well, it's, it's, you know, out of concern over civilian, you know, security and safety. Are there protocols currently in place or are we just playing catch up? But are there protocols in place that you know of that allow for a shoot down of unauthorized, whether it's a drone or anything else on a classified or secure facility?
John Mills
Well, without revealing the classified information, there is a smattering of facilities that have approvals to engage through various methods. Okay. And I'll just leave it at that. It can't be a smattering. It has to be pervasive. So there are a handful now there's four and I think it was the Congressional Research Service did a great piece. Look up CRS's report on domestic airspace and countering drones. There's four US government agencies that departments, agencies have authority. First is Department of Energy, but it's, it's at very specific locations like the Nevada Test Site. Okay. Then you have the Department of Defense, which has mature procedures and capabilities at a very small number of facilities. Okay. And I'm not going to say which ones. Then you have Department ofjustice/dhs that have legal authorities over special situations such as the air airspace over the White House, which is actually the one airspace sector that is not managed by the faa, but managed by Secret Service, obviously. But you have national sensitive security events which is, are declared such as the State of the Union, the Super bowl. And that's where FBI that has a very robust counter drone. But again they, they have to be. It just we don't have a pervasive agreed upon. And this is the domestic airspace. This is not a forward operating base in Iraq or Syria where we set up the Centurion system, which is the army version of the Navy Gatling gun. That thing works awesome. You know what?
Mike Baker
I've got one at home. Yeah, yeah, I've got my very own at home. Yeah, it's fantastic for home defense. Couldn't ask for anything more.
John Mills
Yeah, I mean, it works great. But firing 20 millimeter rounds over desert space to zap an incoming mortar round or a small drone or a big drone, no problem. Firing a stream of 20 millimeter rounds over residential area, that's a really bad idea. Okay, that is not going to end well. So we have to develop a protocol for alerting. Alerting and not just that the government agency is responsible, but also the local civilian population. We might have to bring back the old air raid sirens that used to go off at 12:00 noon Wednesday during the Cold War. We might have to bring those back. All those things have been. I actually got an old one in the, in the workshop over here. Those sirens.
Mike Baker
Yeah, look, I'm, I'm old enough to, I'm old enough to remember those air raid siren drills and also ducking cover under your school desk. And I remember one of my buddies, as we were sitting under our school desks, I think it was. I forget what year I was in, looking at me and saying, I don't think this is going to protect us. And I was like, well, you're, you're obviously headed towards great things because you're a genius, son. But look, I, I think we do have the technology. I mean, my understanding isn't without going into gruesome sources and methods, but we do have the technology without firing off rounds to stop drones, and we have that ability. I guess the question keeps coming back to the same thing, which is. So if that's the case and they're engaged in, if we imagine they're engaged in surveillance, if they're engaged in intel collection, if they're engaged in just an effort to test what our reaction is, because that's also extremely important to know what the other side is going to do in any given scenario, then the idea that we are not at the top of our game and just because it's infuriating, if we have these incidents and in the uk, you know, days after the officials are saying, well, we really don't know what the intention was, I'm left speechless. How does the US Military and our allies how do we not have protocols in place, as you pointed out, that are not just sort of case by case or for certain facilities to say no, this is, you can't do this. Whether you're a hobbyist or whether you're the Chinese regime or anyone else.
John Mills
This is industrial grade. These are not a bunch of hobby shoppers. General Kelly described what he saw, and again, they never crossed the fence line at Langley. This is Langley Air Force Base, not Langley CIA headquarters. I've had, there's some folks have been saying they've been flying over CIA headquarters. Wrong. Langley. This is Langley Air Force.
Mike Baker
Oh, no, trust me, John, if they flew over, if they flew over Langley headquarters, the CIA facility, you know, we've already got protocol out there. What happens is all, all the interns run out and throw classified documents up in the air towards the drones and, and that's, that's our plan, probably be.
John Mills
More effective than what we have in place now. I mean, this is, this is, this has been a debating society for the last two years at the White House in interagency proceedings. This is one of the things in the first 60 days of the Trump administration, we got to come to closure. It's always about roles and missions, roles and missions, who is responsible for what. And we got to settle this. This debating society is over. I've been in too many of these meetings at the Eisenhower Executive Office building in room 4405 not to be too specific. You know, these debating days are over and we've got to cut this out. Define roles in mission, the domestic airspace and execute. And we got to do it quick.
Gordon Chang
Now.
John Mills
Kelly described this as a large 20 foot wing, fixed wing drone mothership. And then shepherding a group of industrial grade quadcopters. These are like agricultural grade quadcopters. And just that description itself in my mind, I'm going, wow. I mean, you got two different flight types of flight vehicles that don't normally, you know, work cooperatively together, but they were. And wow, was this thing launching and recovering the quadcopters. This is crazy. And hey, this is all about, well.
Mike Baker
Those setups, those swarms. When you look at the technology involved in those swarms sometimes, and you look at, again as you described it, a mothership, which you know, is capable of command and control of the swarm and can provide a variety of assistance, in a sense, right. To the mothership. Does to the swarm. It is astounding what's possible. But then again, I keep coming back beating that dead horse here, John. I keep coming back to how has the US, with all our abilities, and we are very, very good, how have we not? Because I think, and maybe I just answered my own question, our science and technology capabilities are outstanding. Our ability to put in place protocols, because that involves humans and it involves bureaucratic meetings, which, as you pointed out, you sat through way too many of them. That seems to be where the log jam is. Colonel, if you'll stay right there, we've got some terrific sponsors. We're going to have to go to them right now, hear from them, and then we'll have more on this story. I've got some other questions for you.
Gordon Chang
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Mike Baker
Okay, thank you.
Gordon Chang
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John Mills
How did you.
Gordon Chang
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Mike Baker
I am so happy.
Gordon Chang
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John Mills
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Gordon Chang
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Mike Baker
Hey, Eric Bolling here, inviting you to check out my new podcast, Bowling, where.
Gordon Chang
We deliver a daily dose of uncensored, unfiltered truth.
Mike Baker
My new show is based on the bedrock of democracy, free speech. Every day. I promise to expose those who misinform, edit and push outright lies for their own agenda on Bowling. The truth is always our top priority. So don't wait, listen and subscribe to Bowling Right now, wherever you get your favorite podcasts. Welcome back to the PDB Situation Report. I'm joined again by Colonel John Mills, US army retired and host of in the Situation Room. You should check that podcast out. All right, well, John, let's. We've been talking about the drone swarms. For me, it's incredibly frustrating just because of our lack of action. But let's pivot to something else that's been somewhat covered. Not much, but we've talked about it on the PDB for sure, and it's happening at our ports here in the US at a variety of ports. And here it is. This week, the U.S. coast Guard, right, they rolled out a new cybersecurity directive. I'm sure you're fully aware of this one. It's aimed at Chinese made ship to Shore cranes which some officials see as potential backdoors for national security vulnerabilities. Now what that means is essentially in layman's terms is you know, Chinese cranes for ship to shore operations at U.S. ports account for about 80% of our crane operations. Think about that. And there's a good chance, and by that I mean there's every chance that the Chinese regime has been using that opportunity to place espionage equipment basically on these cranes for their own purposes. What are your thoughts on this?
John Mills
Oh absolutely. These CPMC Corporation is the Chinese company that has 80% market share on, on world on on port cranes, those iconic cranes you'll see at the ports. And as we re industrialize America we're going to get American made cranes or from and or trusted nations with trusted source componentry. But right now ZPMC has a stranglehold, 80% market share. These cranes are IP enabled which means they are endpoints on a worldwide network. Anything that is IP enabled is essentially a listening post or an observation post in military or intelligence terms. I mean this is stupid. I mean I was pointing this out like three years ago and everybody's going oh no, there's no way anybody could be coming through the network to that endpoint. These cranes are replete with listening audio with cameras. So you know the mss, you know sitting, sitting in Shenzhen, China, you know they're just having a failed field day, you know, eating their popcorn, coming in, doing their shift and just watching everything that's going on at our port. They go what is being loaded on what ship? And they're also in the log Inc network which is the worldwide network for transportation movement. So they know by manifest what is on what ship or aircraft. What could possibly go wrong here?
Mike Baker
I'm fascinated when you would talk about this years ago when you would point this out. Was it just that they didn't believe that the Chinese regime would be engaged in this sort of information collection or they just didn't understand the process and the technology involved.
John Mills
It's just gross ignorance and also it is the latent but hopefully it's going away. The effect of oh you brought up China, you're racist. It is that dicrt cancer? No, it's stupid. We've shown it in so many ways except for election machines because election machines are secure but everything else has been broken into. But election machines are secure. And my thesis is well if that's the case the election machine companies should be putting, they, they should, we should be using their equipment for national nuclear command and control because they are the only things that haven't been broken into. Everything else has been broken into. We got type, you know, Salt Typhoon, Flax Typhoon, Volt Typhoon. Those are the Chinese intrusion sets.
Mike Baker
Yeah.
John Mills
In the last last few days, have you been having network issues with your phone, with your computer? About a 90% chance it's related to Assault Typhoon. Ladies and gentlemen, if you're IP enabled, you are an endpoint.
Mike Baker
No matter how bad the network gets, I can still get my tick tock, which, which keeps me happy. Look, the, the idea, I think part of the problem is, is this, this mindset that. How to put this. Look, I spoke with Gordon Chang earlier and he's a terrific friend of the show as well. And Gordon has a point, which is the Chinese regime, in a sense is on a war footing with us, and they have been for a very long time. And part of that is information collection, part of that is economic espionage. Part of that is hoovering up everything possible about what the US Is doing and what our allies are doing. And so the idea that people might not think that the Chinese regime, with all their aggressiveness, wouldn't be interested in our supply chains, which is, you know, the ports, the US ports play an incredibly important role, obviously in US supply chains, which then play an important role in keeping America happy is astounding. So it's very disappointing to hear that you've been pointing this out and that others have been pointing it out, I'm sure. And yet we're just now talking about it as if it's a brand new issue.
John Mills
There was a culminating point, I think In December of 23, the National Defense Authorization was passed. And really it went right over most people's heads. Section 1088 said we have to do a national cyber tabletop exercise on the security of domestic critical infrastructure in case of conflict with China over Taiwan. So clearly those in government now. I was actually working for somebody, was a little bit related to the 1088 exercise. But this is all it's clear. It was the FBI director who earlier this year, Ray, who's going to be run out of office on January 20. But even he said this, it's called advanced Force operations. This is preparation for conflict. And everybody said, that's interesting. What's next on this? What's next?
Mike Baker
Yeah. Oh, we got drones, we got drones flying over our bases. Well, what else do we have going on? Did you see the game the other day? Yeah, there's a, there's a lack of concern over a lot of these things that I hope will be a Point of focus in the, in the new incoming administration. Look, John, I mean, I'm sure you're aware too, it's not just the crane operations, right? And, and, and yes, okay, the government said we're, we're trying to do something about it. We put some tariffs on these cranes that had no impact because the port association then complained about rising costs instead of being concerned with national security. But if you look at telecoms equipment and you look at the amount of Chinese telecoms equipment that has been utilized over many years now, and particularly with regional telecoms providers, it's the same issue. And no surprise, a lot of that telecoms equipment is set up somewhat close to U.S. military bases here in the.
John Mills
U.S. yeah, well, Huawei routers, Lenovo computers, and DJI drones are all part of the collection architecture for China. Get a grip on reality. And where did they learn this from? They learned it from us. Okay? Come on, you gotta be kidding. The original supply chain attack was the 82 blowing up of the Siberian pipeline. I mean, come on. They, the Chinese watch and learn everything we do, and then they play it right back at us tenfold without any legal guardrails or bumper cushions. Come on, this is ridiculous. Now with the ZPMC cranes, you say, okay, they're spying on us. Well, we'll just tape over the cameras or we'll use advanced cybersecurity methods.
Gordon Chang
Okay.
John Mills
Yeah, right. How well has that worked out? But, okay, so what can you do remotely? Well, one of the things you can do remotely is you can override the safety features of the zpmc because one of the things they're constantly assessing on that crane is safety standards for center of gravity. Well, one of the things you can do with the trickery is you can trick the system into thinking it's maintaining its center of gravity, is they're moving those counterweights as that crane reaches over the ship and lifts, you know, a 60 ton, a 60 ton container. You know, those, those weights are sliding to maintain that center of gravity. You override that, next thing you know, the crane, everything's good. Everything's good. Wow. And you want that, you know, you know, 500 ton crane is now toppled over onto the ship. And you just put that berth out of commission and that ship for six months for the cleanup. You can reduce the dual thing. In 2009, there, there was a Russian dam, a spinning thing, center of gravity. You mess with that spinning thing, that turbine at that Russian dam. I'm not saying we did that, but, you know, that thing, next thing you know, you got a 500 ton turbine, pop, shooting out of its mount into the ceiling of the, of the, of the dam and falling down and destroying the dam. I don't know how that happened. I mean, things happen. But you know, so you can reach into cyber.
Mike Baker
I gotta tell you, John, things. Well, John, I'm just glad that you, you clarified that a spinning thing is a turbine because, you know, we're very focused on technical terms here on the situation report, so we want to make sure we get it right. Look, no, you're raising, I mean, you're singing to the choir with me, John. I've been, I've been banging on about, about the aggressiveness of the Chinese regime and their theft of intellectual property and their economic espionage. People say, well, why, oh, you know, why should we even care if, if they've got equipment sitting on our cranes and our ports and you know, they're watching flow of goods as well. I mean, everything is of interest to them from an intelligence perspective. Right? They hoover it all up and then they figure out how important it is and they utilize it either for military purposes or for their state sponsored entities. It doesn't matter. We seem to be behind the curve once again. It kind of goes back to the drone conversation. We just had the same issue with the cranes. Whether it's that or the telecoms equipment or whatever, we just seem to be behind the curve and understanding how aggressive the Chinese regime is. And that's not racist to your point. The Chinese culture is fantastic. The history is amazing. The people are great. It's the regime that we're talking about here, folks. All right, listen, John, I hate to say this, but we are out of time. And so that means I've got more questions for you. That, that just means you're in an unfortunate position of having to come back on the show at some point.
John Mills
No. Looking forward to it, Mike.
Mike Baker
Yeah, absolutely.
John Mills
We lot more we can talk about. Thank you so much.
Mike Baker
Absolutely. Colonel John Mills. Really appreciate you stopping by. And again folks, check out John's podcast. It's called in the Situation Room. And thanks again for stopping by, sharing your expertise. All right, that is all the time we have for the PDB situation report. Now if you have any questions or comments, please reach out to me at pdb@thefirst tv.com. the entire PDB production team loves hearing from you and I mean that seriously. Every couple of days, don't forget Carl. Mel, man, he's a great guy. He stops by our secret lair, which is of course under a dormant volcano, and drops off another mailbag stuffed full with your thoughts and questions and your faxes and your postcards and your emails. And then we get busy selecting the best questions and compiling those into our monthly Ask Me Anything episodes. And remember, if we happen to select your question for the AMA episodes, not only do you get the satisfaction of having your question answered, but you also might receive some some very cool PDB swag. Except for the fact that our swag department hasn't finished designing and ordering the swag yet. But other than that, it's a good idea and to listen to the podcast of the show ad free. Become a premium member of the President's Daily brief by visiting pdbpremium.com I'm Mike Baker. You know the drill. Until next time, stay informed, stay safe, stay co Black Friday is coming. And for the adults in your life who love the coolest toys, well, there's something for them this year too. Bartisian is the premier craft cocktail maker that automatically makes more than 60 seasonal and classic cocktails each in under 30 seconds at the push of a button. And right now Bartisian is having a huge site wide sale. You can get $100 off any cocktail maker or cocktail maker bundle when you spend $400 or more. So if the cocktail lover in your life has been good this year or the right kind of bad, get them Bartesian at the push of a button. Make bar quality Cosmopolitans, Martinis, Manhattans and more all in just 30 seconds. All for a hundred off. Amazing toys aren't just for kids. Get a hundred off a cocktail maker when you spend 400 through Cyber Monday.
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The President's Daily Brief: PDB Situation Report | November 30th, 2024
Host: Mike Baker
Guest: Gordon Chang (Author of Plan China's Project to Destroy America)
Additional Guest: Colonel John Mills, US Army Retired (Host of In the Situation Room)
Release Date: November 30, 2024
In this episode of The President's Daily Brief, host Mike Baker delves into critical issues shaping U.S. national security and international relations. The primary focus centers on former President Donald Trump’s strategic appointments and their implications for U.S.-China relations, alongside escalating security concerns involving unidentified drones over U.S. military bases in the UK.
Mike Baker opens the episode by analyzing President Trump's recent Cabinet selections, highlighting two significant appointments:
Marco Rubio's Appointment: Rubio is recognized for his firm stance against Beijing, particularly concerning human rights abuses and military aggression in the Indo-Pacific region. Baker suggests that Rubio's role will likely steer U.S. diplomacy toward a more confrontational approach with China.
Scott Besant's Appointment: Besant's nomination signals a robust economic strategy against China's unfair trade practices. A strong advocate for tariffs, Besant aligns with Trump's previous policies aimed at countering Chinese economic maneuvers.
Quotes:
Gordon Chang's Analysis: Gordon Chang commends the appointments, emphasizing their support for Trump's tariff initiatives. He notes, “President Trump's picks indicate that he's going to, first of all, go for tariffs... this is important because it’s going to rearrange trade flows around the world” ([04:57]).
Strategic Moderation: Chang observes that China has adopted a more subdued posture in response to Trump's administration, evident through reduced activities in peripheral seas and airspace. This behavior signifies Beijing's cautious approach, aiming to avoid direct confrontation while preparing for potential economic conflicts.
Economic Maneuvers: China's recent devaluation of the renminbi is interpreted as a strategic move anticipating a possible trade war with the U.S. Chang states, “China has been forcing down the value of the renminbi... it’s rearranging trade flows” ([07:04]).
Quotes:
Preparedness for Conflict: Chang emphasizes the need for the U.S. to be prepared for any aggressive actions from China, given Xi Jinping's domestic pressures and the rigidly nationalist stance of the Chinese leadership.
Chinese Military State: Despite advancements in military technology, the Chinese military faces internal challenges such as leadership purges and a lack of recent combat experience, which may hinder their ability to engage in large-scale conflict effectively.
Public Sentiment: Interestingly, Chang notes that the Chinese populace holds favorable views of Trump, not for his policies, but for his unfiltered and anti-elite persona. This admiration poses a threat to the Communist Party's control, as it inspires Chinese citizens to distrust and challenge their own elites.
Quotes:
Incident Overview: Recently, small Unmanned Aerial Systems (UAS) drones were detected over three Royal Air Force bases in Eastern England utilized by the U.S. Air Force—RAF Lincoln Heath, Mildenhall, and Feltwell. Similar drone activities were previously reported over Langley Air Force Base and Naval Station Norfolk in the U.S.
Colonel John Mills' Insights: Retired Colonel Mills expresses concern over the lack of effective protocols to counter these drone intrusions. He highlights that current measures are fragmented and insufficient, with only a few facilities having the authority to engage unauthorized drones.
Quotes:
Challenges Identified:
New Cybersecurity Directive: The U.S. Coast Guard has issued a directive targeting Chinese-manufactured ship-to-shore cranes, which dominate 80% of U.S. port operations. These cranes are susceptible to being used as espionage tools, providing China with real-time intelligence on port activities and supply chains.
Colonel Mills' Analysis: Mills underscores the significant security risks posed by Chinese-made cranes, which are IP-enabled and can serve as listening or observation posts. He criticizes the industry's slow response and the overarching complacency towards such vulnerabilities.
Quotes:
Potential Risks:
The episode underscores a pivotal moment in U.S.-China relations, with strategic Cabinet appointments signaling a confrontational approach. Concurrently, emerging security threats—ranging from drone intrusions to cyber espionage at critical infrastructure points—highlight the urgent need for comprehensive defense protocols and cybersecurity measures.
Final Remarks: Mike Baker emphasizes the importance of recognizing and addressing these multifaceted threats to safeguard national security and maintain global stability. The discussions with Gordon Chang and Colonel John Mills provide a nuanced understanding of the complexities involved in countering Chinese strategies and ensuring the resilience of U.S. infrastructure.
Key Takeaways:
Notable Quotes with Timestamps:
This comprehensive summary encapsulates the pivotal discussions from the episode, providing listeners with an in-depth understanding of the evolving U.S.-China dynamics and the pressing security challenges facing the United States.