July 6, 2023 - Bannon's War Room
47:56
Participants
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| This is what you're fighting for. | ||
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unidentified
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I mean, every day you're out there. | |
| What they're doing is blowing people off. | ||
| If you continue to look the other way and shut up, then the oppressors, the authoritarians, get total control and total power. | ||
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unidentified
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Because this is just like in Arizona. | |
| This is just like in Georgia. It's another element that backs them into a quarter and shows their lies and misrepresentations. | ||
| This is why this audience is going to have to get engaged. | ||
| As we've told you, this is the fight. | ||
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unidentified
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All this nonsense, all this spin, they can't handle the truth. | |
| War Room, Battleground. | ||
| Here's your host, Stephen K. Bannon. | ||
| A firestorm has engulfed Washington, D.C., and they're on break right now. | ||
| They're going to be back next week, and we know that from Comer and the Oversight Committee, there are going to be a lot of depositions, increased investigations, because this audience has got the bayonet to the back of the Republican investigators that are not prepared to let up. | ||
| It's Thursday, 6 July, Year of Our Lord. | ||
| We're going to have now, we're going to walk through the indictment of Sequoia Capitol, Kevin McCarthy's role in suppressing this investigation at the House Intelligence Committee, also other Democrats involved in this. | ||
| As Janet Yellen's over kowtowing to the Chinese Communist Party, you have to understand how you're being sold out here in the United States. | ||
| We're going to take the complete hour and break this down. | ||
| You've got Frank Gaffney, you've got Brian Costello, Colonel Derek Harvey, Others, they're going to go into detail of this. | ||
| So right now, I want to turn you over to the great team at the Committee on the Present Danger. | ||
| Your head is about to be blown off by what you're about to hear. | ||
| This is about Sequoia Capitol, the Republican Party, the House investigations, why it has been suppressed, why it's been canceled. | ||
| You're going to see it all here in the War Room. | ||
| Our first panelist who has served in these many roles is Brian Costello. | ||
| He is a very seasoned financial advisor and chartered financial consultant, as well as a man who has a considerable aptitude for forensic analysis, as we will find out now in the course of his remarks. | ||
| Brian, welcome to this very important Presentation of the case against Neil Shen and Sequoia Capital. | ||
| The floor, sir, is yours. | ||
| Thanks very much, Frank. I've been a big fan of the committee's work, so it's an honor to be joining Colonel Harvey, Sam, and you in this webinar. | ||
| I think the easiest way for me to kind of educate people on what I uncovered is going on here is just to tell the story. | ||
| But I do want to start with a quote, building on what you said, that what we're seeing right now, in particular, I think, with Sequoia Capitol, was actually predicted by Alexander Hamilton. | ||
| So back in Federalist Paper, 1787, December 14th, which ironically happens to be my birthday, so maybe that's coincidental, he put together an excerpt essentially contrasting Republicans and monarchies in terms of their susceptibility to foreign influence and corruption. | ||
| And the one thing he argued very effectively with examples is that republics, despite their many advantages, are more prone to foreign corruption because their more democratic, open nature provides an easier inlet for outside influence. | ||
| And I'll dovetail right into Sequoia and kind of how I uncovered this and what I saw, because I think this, he explained it nicely in this. | ||
| So we're actually seeing this play out with the Chinese Communist Party. | ||
| So one of the things the Chinese Communist Party does Is they use market access and investment opportunities to bring our elite into their financial success. | ||
| And so this isn't intuitive for a lot of people, but having a technology entrepreneurship background, I've raised venture capital before. | ||
| So everybody hears this word venture capital and they hear investors, but it's important for, and Neil Shen works for Sequoia Capital. | ||
| Who is arguably the top technology investor in the world. | ||
| And he's a global steward of the entire firm, as you said. | ||
| But he also has a dual world, which is working specifically for a body of the Chinese government, which we'll talk about called the National Committee of the Chinese People Political Consultative Conference. | ||
| So... What venture capitalists do is they don't just provide... | ||
| A lot of times we discount what they do because we talk about them as investors, but having raised venture capital before, they're not just investors, right? | ||
| They become part owners in these companies. | ||
| So America's top companies, Apple, Tesla, Instagram, all these companies receive money from outside investors. | ||
| They then sit on the board, and they provide strategic advice to the companies, and they provide network access, they provide know-how, and that's extremely valuable. | ||
| When you're running a company and you're trying to build in a new emerging technology area like artificial intelligence, to have an advisor who sees lots of companies Who sees what their business models, their strategies, who the customers are that are being aggressive, expanding in that space. There's a tremendous amount of information there. | ||
| So when you've seen things published over the years, over the last several years, well, Neil Shen Neil Shen from Sequoia Capital, he just makes the investment decisions in China. | ||
| We don't do it in the US. That is substantially discounting the value that venture capitalists provide that they know. | ||
| So let's give it a little example, right? | ||
| One of Sequoia China's investments was a company called DGI, a drone company. | ||
| There's also been a number of spin-offs for that drone company related to autonomous technology and LiDAR sensors and a bunch of stuff. | ||
| And I'm sure Colonel Harvey will get into the military civilian fusion stuff a little bit that's predominant in China. | ||
| But DGI became the top... | ||
| Consumer drone distributor in the US, and it also penetrated a lot of government agencies, including the FBI, the military. | ||
| That did not happen without the help of Sequoia Capital US. And maybe the help was as simple as, They had the name of the preeminent investor in US technology, or maybe it was more deep in that they were actually making phone calls and saying, hey, we're behind this company. | ||
| But the reality is you cannot look at these entities as separate because the value isn't just the investment dollars and who makes the decision. | ||
| Nine-tenths of the value comes in building these companies after the investment's made in terms of what the firms actually do for these guys. | ||
| So venture capital is very important in all our emerging areas. | ||
| Semiconductors, artificial intelligence, autonomous technology. | ||
| These are areas we're head-to-head with China. | ||
| So I happen to uncover, and part of this is I'm a business guy, right? | ||
| I'm not a politician. I was actually doing business. | ||
| We're looking to do business with China back in 2015. | ||
| So not some xenophobe. | ||
| I thought like the rest of the world, 1.4. | ||
| You know, I didn't have access to obviously the military inside folks like Colonel Harvey would have. | ||
| But I thought 1.4 billion people burgeoning middle class market becoming more like us. | ||
| Why not participate in that? | ||
| I went to take an investment from a Chinese company. | ||
| They didn't fund the investment after signing the documents. | ||
| I ended up in a breach and fraud lawsuit. | ||
| And then I discovered that Neil Shen, with two of his cohorts, was actually behind this company and their ownership was being concealed through a shell. | ||
| And having worked for a Sequoia portfolio company at one point in my career, understanding their dominance in the industry, knowing that Neil Shen was the top investor in the world, I found this very alarming. | ||
| And then started to uncover that actually the company itself, which was a publicly traded New York Stock Exchange, Chinese wealth management company, was committing fraud. | ||
| And they played a significant role. | ||
| And the company is now actually bankrupt. | ||
| So everything I submitted to the government proved true. | ||
| And this company, besides trying to make technology investments in their investing in my company, Was also playing a significant role in the real estate collapse in China. | ||
| And they had been concealing it for years. | ||
| And this wasn't complex. | ||
| Like, I uncovered this by just taking the manner and characters and putting it in by the research engine and tracking it while we were in a lawsuit with the company. | ||
| So I eventually settled the lawsuit via mutually acceptable settlement agreement in 2020. | ||
| And it was in federal court in California. | ||
| But I became... | ||
| It became really interesting to me that somebody like Neil Shen from Sequoia Capital was brazen enough to be committing or alleged to be committing frauds in U.S. capital markets. | ||
| And why was everybody turning the other way on this? | ||
| I had submitted the information to the Securities Exchange Commission and then uncovered a few other companies with the same two individuals he was involved with. | ||
| And it was baffling to me. | ||
| And then what I started to understand was, in 2018, Mr. | ||
| Shen was put on what's called the National Committee of the Chinese People Political Consultative Conference. | ||
| I believe this is a body of the Chinese government. | ||
| It doesn't make him an agent of the Chinese government. | ||
| I firmly believe this makes him part of the Chinese government. | ||
| And there have been numerous quotes by Xi Jinping, by former Foreign Minister Wang, even when they met with Anthony Blinken, have talked about the importance of this organization in providing strategy and guidance to the Chinese Communist Party. | ||
| So I think when people say he's an advisor to the Chinese government, that isn't taking into, or that Neil Shen's an advisor to the Chinese government, that isn't actually taking into account how the Chinese government works. | ||
| Right? Where he's put on this National Committee of the Body, he's one of the only Venture investors and private equity investors as Xi Jinping's trying to drive entrepreneurship and he's constantly with top members of the Politburo and even Sequoia. | ||
| At one point, he employed from 2017 to 2021. | ||
| Well, Politburo member number four's daughter. | ||
| So there's significant relationship with Sequoia, Neil Shen, and the Chinese Communist Party. | ||
| And if you look at some of Sequoia's videos and the two partners that ran the firm, Doug Vioni and Michael Moretz, they reference a lot their success in China because of their relationship with the Chinese government. | ||
| And I just looked at this thing and said, you know, if you think about Harry Markopoulos, who is a whistleblower on the Madoff stuff, he just looked at it and said, this is statistically impossible. | ||
| You cannot... | ||
| You can't perform at this level for this long, providing no transparency related to your financial model. | ||
| You just can't outperform the market like that for that period of time. | ||
| And he kind of identified that Madoff, the limited information. | ||
| He actually called this the mosaic theory, You have a bunch of little pieces, you put it together, and you can draw no other reasonable conclusion. | ||
| And I actually read his book and looked at his stuff. | ||
| So I looked at this and said, okay, we have a member of the Chinese government working for America's top technology investor. | ||
| With public videos that they are giving him access to everything. | ||
| So he has access to something called SMS, which is a Sequoia management system, which is where they collect valuable information on all their companies. | ||
| So this includes companies like NVIDIA, the top chip company in the world, was a Sequoia investment. | ||
| 23andMe, genomics testing. | ||
| Social media companies like Instagram and other companies like this. | ||
| So here we are providing information. | ||
| America's preeminent venture firm is providing information, support, know-how, access, contacts, political cover, and helping to build companies that directly compete with U.S. companies in our most sensitive areas. | ||
| And the whole thing is discounted by, well, he's a separate fund. | ||
| Well, if he was a separate fund, you look at this, and he works for the Chinese government, he really truly was separate. | ||
| It's actually, and maybe Sam can comment on this later, it actually should be investigated as a Title 18 corporate espionage issue. | ||
| You cannot provide access and information to a portfolio of US companies to a member of the Chinese government. | ||
| So I kind of uncovered this thing, unfolded at a time. | ||
| It made no sense that in a highly risky space, the top investor in the world year over year was Neil Shen from Sequoia, and he also worked for the Chinese government. | ||
| This seemed obvious to me. | ||
| And what I believed happened was he got so brazen in terms of how they were buying off the Chinese government, he decided he didn't have to follow the rules when they listed companies in US markets. | ||
| And that's where I uncovered it. | ||
| I uncovered what I believe is one of the most substantial security fraud rackets ever executed. | ||
| And the victim of this is the American people. | ||
| And the American people, many don't even realize it because it's their pension funds, it's their retirement accounts that are invested in these companies where the CEO or the executives or the folks like Shen and some of us, what I've alleged is co-conspirators like Charles Kao who runs companies called Sina and Weibo, Xin Zhao who ran a company called eHouse and was involved in a number of other companies with these two. | ||
| I believed That they just became so arrogant in the process because what they were doing in terms of his employment with Sequoia and his relationship with the Chinese government was so brazen. | ||
| Nobody would possibly go after him for security market frauds as well, too. | ||
| So they started stealing money from the American people. | ||
| So when I covered this, I went to the Securities Exchange Commission and nothing was done. | ||
| Both chairmen. So Jay Clayton, who also had a significant relationship with Sequoia and Shen because they're one of the investors in Alibaba. | ||
| And Jay Clayton was the lawyer for Alibaba. | ||
| And then Chairman Gensler, who you can now look at the data on Gensler. | ||
| You have two years of data. And I was told this at the time. | ||
| That he was told to go soft on China and not confront China. | ||
| And you can look at two years of data now almost in the SEC, and he's tried to go after everything else, but for some reason isn't in China. | ||
| And to the theme of this webinar, you look at his public calendar, and he's also meeting with people, often meeting with people like Hank Paulson, who's very well known as, you know, Working very closely with the Chinese Communist Party. | ||
| So we have our head of the Securities Exchange Commission is meeting with a representative, Hank Paulson, of the Chinese Communist Party, often while he's covering up substantial crimes by the top investor in the world, alleged crimes by the top investor in the world in China. | ||
| And like you can't even make this stuff up. | ||
| So I've been able to document the facts. | ||
| Once it was pretty clear the SEC was going to do nothing, I had two brave former agents who are actually the individuals who, they're Conor Intel, one's an attorney, help me take and ingest the claims into the FBI and the Department of Justice. | ||
| And they had several meetings directly with multiple agents in the Washington field office. | ||
| The information came from me. | ||
| The supervisory special agent in charge of this particular group Transfer the case to Maine Justice, DOJ, which the Department of Justice says they're no longer doing, transferring field office cases. | ||
| And the claims there, which had national security ramifications, capital market fraud, all sorts of aspects of this economic warfare were being arranged, were suppressed. | ||
| They ran away from them. They shut down the DOJ-China initiative. | ||
| And, you know, I've now, and hopefully this venue and other venues have felt like we need to take the story to the American people. | ||
| The American people need to know that their congressional offices know this, that the congressional offices know this is going on. | ||
| It's doing catastrophic damage to the country economically and our national security. | ||
| And it's important, at the very least, is, you know, we can just come out and explain to everybody what's going on if the government isn't going to do their job. | ||
| So I can turn it back to you. | ||
| There's a lot there, a lot to unpack, Frank, but I figured best to just give some people some insight into the story. | ||
| I think this is hugely helpful, Brian. | ||
| I mean, your timeline and your personal engagement in various steps along the trail really does expose how Neil Shen It was essentially weaponizing Sequoia and its various management capabilities and data and insights to the benefit of the Chinese Communist Party. | ||
| Thank you for that. United States Army retired. | ||
| He is a man who has served not only with great distinction in the uniform of our military, but also in a variety of civilian roles, notably as a special assistant to President Donald Trump, | ||
| And as a regional director on the National Security Council during his presidency, and also as a senior aide and very important chief of investigations for Devin Nunes, at the time the chairman of the House Permanent Select Committee on Intelligence. | ||
| Subsequent to leaving government, he has Remained very active in the public policy arena. | ||
| In fact, he has entered the political arena and is now an elected member of the Washington County, Maryland County Council. | ||
| He's speaking in his own capacity, of course, in this program. | ||
| And we've asked him to address what I think can properly be characterized, as we will learn, through a damage assessment. | ||
| We've asked Derek to provide. | ||
| Is the great tech heist of the Chinese Communist Party at the enormous expense of the American people and, as Brian Costello has said, their economy and their national security? | ||
| Colonel Harvey, it is great to have you back with us on this program. | ||
| The floor is yours, sir. | ||
| Thank you, Frank, and thanks to Brian for that excellent lead in on the background and just some quick background before I answer the specific questions that Frank has laid out for me. | ||
| In early 2021, Ranking Member Devin Nunes decided that we as Republicans on the House Intelligence Committee should focus more deeply on China's efforts to influence, through various means, America's elites, And its industrial leaders and its economic leadership. | ||
| And so we launched an investigation. | ||
| And during that investigation, as we were looking at the venture capital arena, I stumbled across Brian and he became one of many of our sources. | ||
| Now, The key thing here is it's been well known in the U.S. intelligence community about what China is doing. | ||
| And I'll just take a moment to read from our House Intelligence Unclassified report on China's malign influence activities to influence U.S. corporations. | ||
| And the intelligence community is very clearly the DNI under President Trump put out that the US firms are voluntarily sharing key technologies and helping China to acquire technology and sensitive intellectual property. | ||
| The companies are receiving guidance and direction from the Chinese government to influence business operations, their investment strategies, and the strategic direction. | ||
| That the Communist Party members are serving on U.S. company boards and act as senior company executives to advance Chinese initiatives. | ||
| And that U.S. companies are modifying their corporate operations and messaging due to Chinese government intimidation. | ||
| And that American businesses are hoping to present China to the world in a positive light. | ||
| And those are just a few of the highlights, okay? | ||
| And that's from the intelligence community. | ||
| And so we decided, with the direction of Congressman Nunes, to focus on China. | ||
| And Congressman Nunes has long had a history of being focused on the rise of China and the threat it posed to America's economic interest and its national security interests. | ||
| And so going back to 2012, he was Focusing on developing insights and pushing the intelligence community to understand what the Chinese government and its subsidiaries in the so-called private world were doing to advance China's sway in places like Europe, | ||
| Africa, etc., in communications and technology and And all of this was subsidized by not just the Chinese government, but orchestrated through the Chinese Communist Party and how it controls industry. | ||
| And just keep in mind, we all know this, but for many that are probably just now listening in, don't realize that there really are no such things as Chinese private companies. | ||
| That, you know, they are in fact, you know, they have to do and say and act as the Chinese government directs. | ||
| And we've seen nothing but more pervasive controls and laws like the latest state security laws that have been passed that even crack down more on those areas. | ||
| So our investigation, which began in 21, concluded in this one sector of venture capital and banking that Sequoia Capital is the prime example, we called it the starship, of Chinese efforts to influence American banking, investment capital, as well as its gaining access to American R&D. And that's quite a statement. | ||
| We looked at 10 different sectors through our effort, not looking at the companies per se, but looking at how China was trying to influence and leverage these companies through elite capture and how they conducted their business with them. | ||
| Part of it is, you know, Sequoia Capital, for example, would be the gatekeeper for access into the Chinese market. | ||
| Because they're so well connected with the Chinese Communist Party, they can establish the ground rules that will determine success or not and determine access or not. | ||
| And with the coveting of access to the Chinese market, they were in quite a significant role. | ||
| Neil Shen popped up on our radar screen because we thought it was odd, as Brian said, that we would have a member of the Chinese Political Consultative Committee, a Chinese citizen, a Chinese Communist Party member, a strategic economic advisor to President Xi, being one of the three most important leadership team of Sequoia Capital. | ||
| So we started to focus in on Sequoia more so because of that. | ||
| Beijing was interested in acquiring capital investment for its state-of-the-art R&D, but also in trying to understand what America was doing. | ||
| And as Brian explained, you know, venture capital firms, not only like Sequoia with their SMS system, which is the Sequoia management system, they would document and capture all this information on all these startups. | ||
| Because they had access to the viewing rooms. | ||
| startups and other companies that want this investment, offer a lot of insights as to what they're doing. | ||
| And that has tremendous value in and of itself. | ||
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War Room Battleground with Stephen K. Bannon. | |
| So, you know, these financed activities in R&D, corporate initiatives, and bringing technology to China has enabled China, writ large, to capture 73% of the high impact R&D in the modern economies. | ||
| And to establish, according to think tanks that are respected, a commanding lead in defense-related research and development in 19 of 23 critical categories. | ||
| That can be in hypersonics, it could be in underwater technologies, it can be in quantum physics, that type of thing. | ||
| But it's essential to launching your economy forward and also for accelerating your defense capabilities. | ||
| And these can seem relatively benign. | ||
| For example, in the e-commerce arena and understanding how to manage logistics, you know, our technology, our state-of-the-art approaches to those things get transferred to a company in China through Through Sequoia Capital, and that company is then, you know, two or three years later, migrating those insights, that technology, and how to do business to the Chinese People's Liberation Army. | ||
| So, you know, it can be something that looks benign, but it becomes significant if you're enhancing their logistics ability in significant ways. | ||
| So I think that's an important element there. | ||
| I would go on to say, just in contrast, that with what they're doing in these areas, You know, China, I'll just take a step back from Sequoia Capital and talk about for the moment that the R&D is also advantaged in China because we have 400,000 Chinese students attending our universities and our PhD programs and master's programs, | ||
| mostly in STEM, the science and technology areas. | ||
| We would never have allowed that with the old Soviet Union. | ||
| I think at the most we had 12 students from the Soviet Union participating in advanced degrees in America and they weren't in the STEM fields. | ||
| And we did a compare and contrast effort as part of our Trying to build an understanding of what was going on with China compared to the Soviet Union. | ||
| We have many Chinese citizens with green cards that have graduated from our universities that work for a number of years at our national labs. | ||
| They're not given access to classified information, but then they migrate back to China. | ||
| And just working at the labs can give them insight and know-how and And a background that will enable them to bring those skills back to China. | ||
| We also lose out because Sequoia Capital and others like them are funneling the money into China for R&D and state-of-the-art industries, and we're losing the opportunities for that investment to go into our companies here, creating jobs and building our economy and building our defense industrial base. | ||
| So any way you look at it, you know, those types of activities don't pass muster from our view. | ||
| And we know that when we were working on this with the House Intelligence Committee, that we were constantly communicating with FBI agents and securities and exchange personnel who were concerned about the lack of enforcement. | ||
| And the effort by the FBI in particular to not go after these types of more difficult targets that are doing significant things in the economic arena like Sequoia Capital and the allegations against Neil Shen. | ||
| And it caused us to ask the question, why? | ||
| Why are they focused on professors at a university that forget to fill out a form, but they're not going after, in any serious way, major crimes. | ||
| And, you know, the agents would tell us, we don't need new laws. | ||
| We don't need new authorities. | ||
| We just need leadership in the FBI and DOJ to actually act on the laws that we have and to give the agents the authority to pursue the cases. | ||
| And once they're pursued and developed for DOJ to take action or for the Securities Exchange Commission to take action. | ||
| So that's what caused us to move on this this issue in a significant way. | ||
| And we drafted a report and we drafted 10 different reports on 10 different sectors in the American economy that were being penetrated and influenced in significant ways. | ||
| But the most important one by far was the banking and venture capital one, with Sequoia Capital being the starship of this effort. | ||
| And that effort continued through Devin Nunes' tenure, but he resigned effective the end of 2021, and Mike Turner took over. | ||
| And by the end of the month of January, he shut down the China Initiative that was being undertaken by the House Intelligence Committee. | ||
| And He let everyone go who had been working on that issue, as well as the Russia hoax investigation. | ||
| So we could talk more about Mike Turner and his political leanings and his desire to protect the elites that have been co-opted or coerced, but I will stop there with that introductory comment. | ||
| Well, Harvey, thank you very, very much. | ||
| This strategic damage assessment of what has been perpetrated in the course of what I'm calling the great technology heist by the Chinese Communist Party is incalculably important. | ||
| And we'll tease out, I think, a bit more detail from you in the course of some Q&A and back and forth with your colleagues. | ||
| We're going to turn next over to a man who has contributed mightily to the work of the Committee on the Present Danger China, and specifically to this webinar series. | ||
| He's been active on a whole host of issues, in part because of his previous life experiences as an army officer and as an undercover operative for some 20 years for the Central Intelligence Agency. | ||
| It happens that Charles Sam Faddis has also, in the course of his public service to our country, been a prosecutor as a JAG officer in the Army, but also as an assistant attorney general in Washington State. | ||
| And we've asked Sam to do what he does so well, which is to help us Synthesize a lot of information that has been presented by Brian Costello and by Derek Harvey and to put it into the context That we're working through in the course of our indictment, | ||
| namely prosecuting, at least in this court of public opinion, the individuals who have been identified as contributing materially to the weakening of the United States in varied ways, but specifically related to technology. | ||
| And simultaneously greatly enhancing the power of the Chinese Communist Party and the Chinese government and, of course, its military arm, the People's Liberation Army. | ||
| Sam Fattis, we're hoping that you can Expose further to the audience the nature of the Shen Sequoia and Friends betrayal of America and how we might prosecute the case most effectively. | ||
| Thank you, sir. Over to you. | ||
| Thank you, Frank. Look, I think when we're talking about Shen and this whole business with Sequoia, that what strikes me as with so many things that you and I talk about all the time is that the evidence is clear. | ||
| The facts are clear. | ||
| I mean, we can see in broad daylight, in black and white, if you will, What is transpiring, and yet we're sort of working overtime, or certainly a great number of people are working overtime, to pretend like they can't see it, that it's not what it obviously is. | ||
| So let me take a step back, just, you know, provide context and then move on to my conclusions. | ||
| Jumping the Wayback Machine for a minute, roughly. | ||
| Back to the spring of 2003, I was up in the mountains of Kurdistan with my team, 10 Special Forces Group was there. | ||
| We begin the war against Saddam Hussein. | ||
| Well, we begin the overt war against Saddam Hussein. | ||
| Okay, so in the north at that point, what this boils down to is the Iraqis occupying positions that probably were close to obsolete in 1914. | ||
| Trench lines and fortifications and so forth. | ||
| And us sitting up on ridgelines with complete situational awareness, to use the military jargon, in other words, we can see them, we've got aircraft, we understand everything, we can hear their comms, just before we get to the sources we have inside. | ||
| And we are essentially calling in fire on their positions, more or less sitting there Relaxed, watching JDAMs come down from B-52s that you can't even see, and land in perfect lines along clearly marked positions. | ||
| And as horrible as this is, entire Iraqi regiments Just vanishing, right? | ||
| Because they literally have no response. | ||
| I mean, other than running away, which ultimately they begin to do, they are powerless because we have not just the high ground in the sense of literally being up on the ridgeline or up in the air, but the high ground technologically that is insurmountable for them, right? We have this capacity. | ||
| And that's just an example. | ||
| of how we fight wars, as you well know now, and what we sort of presume going into any conflict. | ||
| We have this overwhelming technological superiority. | ||
| Now, keep in mind that the technology that I just described, while it was unavailable to the Iraqis, It's not really cutting edge. | ||
| I mean, in the sense of like 2023 or even 2003 technology. | ||
| We're talking late 20th century technology, really. | ||
| And yet it's completely beyond the capacity of our adversary. | ||
| We think of this, we just sort of use this as bedrock in contemplating military engagements anyway. | ||
| In Afghanistan, even if we ultimately fail on the mission, from a military engagement standpoint, we are always arriving on the field with capacities that are unavailable to our adversaries. | ||
| Okay, we get that. | ||
| The Communist Chinese get that. | ||
| They're not just our adversary. | ||
| Chinese Communist Party is our enemy. | ||
| They are zeroed in on this. | ||
| Again, there's no ambiguity. | ||
| They have announced as a national policy seizing of gaining the advantage in name any high-tech Any high-tech area, particularly those that have to do, that have military applications. | ||
| And as was said by one of the previous speakers, keeping in mind, there is no division. | ||
| There is no division between civilian and military in the totalitarian communist China. | ||
| Okay, so that's their policy. | ||
| This is critical. | ||
| Nothing could be more important to them Then putting themselves in a position where they take away that advantage, which, by the way, is the foundation of our entire national security because we don't pretend to be able to match, say, the Communist Chinese in terms of manpower, in terms of the numbers of anything we're going to put onto the battlefield. | ||
| The entire foundation of our national security is we have to retain this advantage, and they have made Crystal clear that they intend to take it away from us. | ||
| They are moving on an industrial scale, whole of government program. | ||
| We've talked many times about elite capture, the extent to which they are buying and gaining control over people, politicians, government officials. | ||
| But bringing this down to Shen and Sequoia, From my perspective, what am I seeing? | ||
| I am seeing a guy who is, as has already been said, is part of the Chinese Communist Party. | ||
| He is the Chinese government. | ||
| He doesn't just have friends in it or connections to it. | ||
| He is acting at its behest. | ||
| And he has pumped ungodly sums of money directly into All of the aspects of the Chinese economy That the Chinese rely upon to take away this military advantage and put them in the position of being able to defeat us on the field of battle. | ||
| Keeping in mind, this is not just catching up on technology we already have. | ||
| The real cutting edge of this is where we're going. | ||
| The things that have not yet been fielded, that maybe are just beginning to be trotted up. | ||
| So we're not just talking about them being able to Have their own JDAMs. | ||
| We're talking about things that will transform the future of warfare and put them in the position where we're the ones that look like the Iraqis did in 2003, still fighting like it's 1914. | ||
| So the next war begins. | ||
| I mean, I think we could safely say in some ways the war has already started, but the next war is underway. | ||
| Our GPS doesn't work. | ||
| There is no GPS system for a whole host of reasons. | ||
| They technologically take that out. | ||
| Our communications are gone. | ||
| Our power grid goes down. | ||
| The stock exchange is offline. | ||
| Our whole banking sector is down. | ||
| This is before we even get to kinetic action, right? | ||
| Before we get to sending carrier battle groups to the bottom and turning Guam into a smoking room. | ||
| Biological weapons. Something like COVID, but something that kills one out of every three people. | ||
| All of these are possible using technologies we already know that we're working with, and we got this guy who's been running around using our money to fund the Chinese efforts to gain this critical advantage over us. | ||
| I mean, we literally have been letting this guy Use our money to build the war machine that the Chinese can destroy us with. | ||
| And we are way, way behind the curve, in my estimation, in terms of just facing the fact that this cannot be allowed to continue. | ||
| And obviously, not just Neil Shen, but anybody like Shen or anything approaching this. | ||
| I mean, this cannot stand. | ||
| Sam Fettis, thank you. | ||
| As always, you have handsomely synthesized, as I hoped you would, many of the facts that are now, as you point out, clear, indisputable. | ||
| And helped put them in the context of their implications for our national security. | ||
| I think it goes without saying, especially given the civil military fusion, as the Chinese communists under Xi Jinping practice it, that it translates into strategic advantages on the commercial or economic side, as well as, of course, on the military side. | ||
| But I think your point That what is now decidedly at risk, and it's not just your observation or Derek Harvey's professional judgment, or the rest of ours for that matter. | ||
| This is a now, I think, pretty well documented Fact base as put forward by the Australian Strategic Policy Institute and the American Enterprise Institute here in the United States in terms of the kind of cumulative impact on the qualitative edge That the United States military has relied upon long before 2003, | ||
| during the Iraq war, as you say, very explicitly, and subsequently to both try to deter adversaries from acting aggressively against us and to defeat them if need be. | ||
| This is why I'm so proud to be one of the co-founders of the Committee on the Present Danger with Frank Gaffney, Brian Kennedy, and others, the job they're doing. | ||
| This is going to be huge news when people get back next week to Washington, D.C., because this is going to be one of the parts of the element. | ||
| We must reinitiate The investigation of Sequoia Capital, Neil Shen, and these individuals right now. | ||
| This is a national security issue, and it is unacceptable that all the hard work this audience did to put the Republicans in charge, this is what shows that you're not controlled opposition. | ||
| This shows that you're trying to get to the heart of the matter of what the problem in the country is. | ||
| We can't have an illegitimate regime like the Biden regime kowtowing to the Chinese Communist Party right now and have so much of what's happening with the PLA and the Chinese military being financed, particularly artificial intelligence and these other advanced weapons systems, with pension money of workers, of folks in the United States of America. | ||
| It's unacceptable. There is an active investigation that was shut down by the House Intelligence Committee on this very topic. | ||
| And Republicans in charge are the ones that shut it down. | ||
| Mike Turner shut it down at the direction of Kevin McCarthy. | ||
| We have got to get to the bottom of this. | ||
| Okay, tomorrow morning on the show at 10 a.m., I'm going to have a lot more to say about this and others. | ||
| Dr. Peter Navarro is going to start off with me, but we've got a lot more to go through. | ||
| Geopolitically, the capital markets, the finances in the country and the world, everything's on the line right now. | ||
| Everything's on the line. You see an invasion of the southern border. | ||
| You see the beginning of a civil war in France. | ||
| You see this debacle in Ukraine that you're asked to send another $100 billion to. | ||
| All the time, they're kowtowing to the Chinese Communist Party and paying for the military. | ||
| I'll get back into all of it tomorrow morning at 10 a.m. |
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