Poor Man Survival
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The China Threat
When a nation stops producing its own goods, its decline is assured…
That’s what both my economics professor and political science professor assured us in college along with the admonishment that our nation should never become dependent on other nations to produce our goods and services. Unfortunately, we’ve allowed that to happen thanks to idiot globalists. Trump is correct to smack the Chinese who have been screwing America AND we need to get on the manufacturing ball again and BEGIN again to become a self reliant nation!
The following is an important wake-up notice for America from several of my sources:
TRADE WAR PANIC hits the markets and apparently is responsible for the ongoing downturn in the US and world general stock market indices. This illustrates the way the mainstream media tends to work where the big news story of the day is used to explain the direction of a market, with the same news usually spinned as an explanation for either when the market goes up or down! And Mays big news story to explain the downswing is the latest saga in the US / China trade war, namely increased tariffs from 10% to 25% to kick on $200 billion of Chinese goods today (Friday 10th May) triggered by China trying to pull a fast one on the US by backtracking on earlier promises, which illustrates that NO ONE can trust what China says, not even the worlds Super Power!
What's actually surprising is how clueless the mainstream financial media truly is in terms of what drives markets and trends, well it shouldn't be so surprising given that the media is basically populated with journalists trained to churn out highly convincing polished commentary even if it is usually of no practical value.
So the mainstream media still fails to understand that the Trade War with China is a PERMENENT FIXTURE, as part of a mega-trend of the worlds existing super power (United States) in conflict the emerging super power (China) that will ultimately result in outright military conflict.
China is busy building the infrastructure for it's Empire right across the world, fundamental to which is the One Belt Road and deep sea ports. That includes nations such as Pakistan (Gwadar) as China effectively lays down the blue prints for its Empire, which just as the British Empire went from a series of trading companies to outright colonialism and theft of territory then so will China's trade roads and ports form the basis of a future Chinese military empire.
Now none of this is new of what Trump has done and what China is doing in the South China Sea, as in two pieces of in-depth analysis I set forth what I expected to follow in the US China War Mega-trend posted BEFORE Trump took office which are just as valid today as when first posted for the TREND firmly remains in the forecast direction! Trade, Economic, Cyber, Market, Corporate, Territory, Nuclear!
[Source-Market Oracle, Great Britain]
Standing up to China will be extremely painful economically. And at this stage of our society, Americans are not even equipped to handle a low level of economic pain.
They have been flooding our shores with cheap goods produced by government-subsidized businesses, and they have been getting exceedingly wealthy as a result.
We can either allow them to keep taking advantage of us, or we can stand up for ourselves.
According to the latest numbers, we bought 539.5 billion dollars worth of goods from China last year but they only purchased 120.3 billion dollars worth of goods from us. For years they have been slapping enormous tariffs on us, stealing our intellectual property and making it exceedingly difficult for U.S. businesses to do business over there.
Meanwhile, they have been flooding our shores with cheap goods produced by government-subsidized businesses, and they have been getting exceedingly wealthy as a result.
So we can either allow them to keep taking advantage of us, or we can stand up for ourselves
The Trump administration can’t back down now, or else it would lose all credibility.
An extended trade war would mean big trouble for global financial markets. Over 2 trillion dollars of global stock market wealth has been wiped out so far, but that is nothing compared to what could be coming…
The trade war between the United States and China is back on. So far, markets haven’t sustained huge losses. That will change if tensions continue to escalate.
With higher tariffs coming into effect, the next risk analysts see is a complete breakdown in negotiations between Washington and Beijing.
“If the deal totally falls apart, we think there’s a pretty big chance of a market correction,” said Ryan Detrick, senior market strategist at LPL Financial. US stocks could fall as much as 5% over the next month, he added.
It looks like we should all get prepared for an extended trade war, and this trade war is going to affect you and your family in a number of different ways.
First of all, we should all expect significantly higher prices at major retailers…
American retailers and manufacturers were largely able to absorb the 10% tariff — narrowing their profit margins — negotiate offsetting price cuts with Chinese suppliers, import a big stockpile of goods before the tariff took effect, and spread the added cost across many products. But a 25% duty is too much to camouflage with such tactics and a big chunk of it is expected to be passed to U.S. shoppers.
In particular, price increases will be felt most acutely at large retail chains such as Wal-Mart that purchase goods in massive quantities from China. Needless to say, this will hurt those at the bottom of the economic food chain the most.
Secondly, this trade war will potentially result in a loss of jobs and income for many Americans. In fact, the Trade Partnership estimates that 2.1 million U.S. jobs will be lost if Trump’s next round of tariffs is imposed…
If Trump slapped a 25% tariff on the remaining $325 billion in goods the U.S. imports from China, it would cost the U.S. 2.1 million jobs and the average family of four more than $2,000 a year, according to the Trade Partnership analysis.
Thirdly, economic growth would definitely be impacted by an extended trade war. The following bit of analysis comes from CNN…
And then there’s the “extreme scenario” of full-blown, multilateral trade war. In this scenario, Oxford Economics modeled the impact of the U.S. putting 35% tariffs on all Chinese imports and 25% auto tariffs globally, plus 10% blanket tariffs on all other goods imported from the EU, Taiwan and Japan — with all countries retaliating in kind.
The firm calculated this would result in a 2.1% hit to U.S. GDP in 2020, pushing the economy into recession later this year. China’s economy would contract by 2.5%, while Europe and Japan would see average GDP losses of 1.5% and world GDP would be reduced by 1.7%.
China hosted more than 40 world leaders in Beijing this week for the second international forum on the Belt and Road Initiative (BRI) – with Vladimir Putin as the guest of honor. Axios’ Mike Allen wrote, “When you can get that many powerful people to come to you in Beijing, you're starting to look a lot like a superpower.”
Dave Lawler with Axios also notes that the BRI infrastructure effort is only one part of “China's plan to supplant the U.S. as the dominant global superpower within the next three decades.” In addition to the BRI, China’s aggressive tactics used in the race to 5G, the militarization of the South China Sea, the theft of intellectual property, and discriminatory business practices all work collectively to advance China’s economic, military, and political influence across the globe.
China is the most serious and formidable competitor that the United States now faces. It is essential to examine Chinese tactics and strategic thinking to better position the U.S. for this new era of competition. It will affect the future of our country for generations to come.
One of the most revealing comparisons to Chinese strategy is the game wei qi, which is said to have originated in China thousands of years ago. Wei qi – more commonly known by its Japanese name, “go,” in the West – is a game played with two players using a checkered board lined with 19 horizontal and 19 vertical lines. One player has 180 white round stones and another has 181 black round stones. The players take turns placing their stones on the board one at a time on the intersections of the checker lines. The goal of the game is to capture the most territory either by encircling empty spaces or your opponent’s pieces on the board. The player with the most territory after all the pieces have been played, or after both players pass on their turns, wins.
Go is an incredibly complex game due to the number of possible moves and board configurations. As the game progresses, there are multiple invasions, engagements, fights, and confrontations between players that occur in all different areas of the board at the same time. Moreover, it is a lengthy game that requires players to capitalize on short-term victories – but to never lose sight of the long-term strategy.
In a paper analyzing Chinese strategic thinking, Dr. David Lai, now the research professor of Asian Security Studies at the Strategic Studies Institute of the U.S. Army War College, argues that the Chinese approach to strategy is reflected in go. The American approach to strategic thinking, Lai argues, is reflected in chess.
American strategy relies on our technological superiority and capabilities. The U.S. focuses on force-on-force competition that seeks the result of total victory over the opponent. In chess, there are pieces that are more powerful than others that are deployed with the objective of capturing the opponent’s king. Every move is directed toward protecting your own king and seizing your opponent’s. In this way, chess is narrowly focused.
Chess players must also preserve their stronger pieces to keep the balance of power in their favor and ensure a better chance of victory. The player with the most powerful pieces in play during the game will likely win.
Henry Kissinger notes in his book, On China, “If chess is about the decisive battle, wei qi is about the protracted campaign.”
In go, every stone is equal. Players can unleash massive amounts of potential power by creatively and tactfully placing their stones. All stones that are placed on the board work in close connection with one another, as each individual is a part of a larger, bigger strategy.
Moreover, in go there are multiple campaigns, pursuits, battles, and maneuvers happening at the same time across the board. As the board is constantly changing in complex, subtle, and dynamic ways, players must always have a sharp awareness of the overall situation. Due to the number of possibilities where players can place their stones and the limited number of stones available, players must know when to fight for or defend territory. More importantly, they must know when to let it go.
In an evenly matched game, go is a competition of simultaneous incremental victories. Total, decisive, and complete defeat of an opponent is not typically an attainable objective. Usually, games are won by just a few points.
Dr. Lai notes that playing go with a chess approach is dangerous. Similarly, it will be dangerous for the U.S. to continue to approach the challenges we face with China without understanding and seeing the totality and breadth of their strategy.
China has already placed numerous stones on the board – such as artificially low Huawei 5G equipment prices, government loans to Belt and Road countries, building islands in the South China Sea, and forced technology transfers.
These stones work together in pursuit of various territorial acquisitions that will (in partnership with other stones) yield 5G dominance, control of the South China Sea, and economic superiority.
We must examine all of these campaigns – in addition to others – collectively. We must understand this go-based approach, rather than look at each endeavor as an independent challenge. Each of China’s campaigns work in concert with one another and will ultimately result in China’s emergence as a global hegemon. China’s current aggressive tactics will eventually undermine the United States, jeopardize our security, hurt our economy, compromise our values, and alter our way of life.
Those trying to understand the challenges that the United States now faces with China need to learn how to play go. The National Go Center has very helpful resources and events for players of all levels.
Moreover, the United States must develop an American-based strategy in this new era of competition that is focused on our strength, capabilities, ingenuity, and American spirit. Only then can we ensure that that the U.S. will emerge prosperous, successful, and stronger than ever.
What will it be like if the internet America invented and designed is replaced in the next technological cycle by one that is controlled, developed, implemented, and managed by the Chinese?
This is a real possibility we must confront – right now.
The danger of America giving up and allowing the Chinese to win was driven home by a senior United States government official this week. The Washington Post published a story headlined: “U.S. officials planning for a future in which Huawei has a major share of 5G global networks.”
The newspaper quoted Sue Gordon, the principal deputy director of national Intelligence saying, “[w]e are going to have to figure out a way in a 5G world that we’re able to manage the risks in a diverse network that includes technology that we can’t trust.” She added, “We’re just going to have to figure that out.”
I read this while I was having highly productive talks about China, 5G, and Huawei in the Netherlands in a series of conversations arranged by US Ambassador Pete Hoekstra, a former chairman of the House Intelligence Committee. In six different meetings, I communicated what I have been told is the absolute position of the President, the Vice President, the National Security Advisor, and the Secretary of Defense. Furthermore, I have been told that the head of the National Security Agency and the head of the Defense Intelligence Agency have both been very clear that Huawei is an enormous national security threat.
I have been focusing on this growing challenge for months, and I devoted two episodes of my Newt’s Worldpodcast to 5G, referring to it as the 4th Industrial Revolution.
The Trump Administration position has been that 5G is extraordinarily important and so powerful that Huawei and China cannot be trusted to run it. Administration officials have gone all over the planet urging countries to block Huawei technology in their networks because it poses a national security risk. I was in the Netherlands urging the Dutch to block Huawei and develop a European alternative with Ericsson, Nokia, Samsung, and advanced secure 5G technology from the United States.
So, while I was advocating the rejection of Huawei, The Washington Post reported an administration official suggesting that we have to learn to live with it.
In all fairness, the story was simply reporting the confusion, incompetence, and hostility which has characterized the Department of Defense bureaucracy’s inability to act effectively against the Chinese threat.
For months, the President and his senior national security team have been clear that America must be proactive and aggressive in meeting and quickly overmatching the Chinese challenge.
Meanwhile, for months, senior bureaucrats at the DOD have been blocking any effective response.
The large, older telecommunications companies have been encouraging the bureaucrats to take a slow motion, risk averse, “don’t worry about Huawei” approach. They have also been deliberately distorting the ideas of reformers and misrepresenting a proposal for a wholesale network as a plan for government-run nationalization of the American 5G network.
However, the reformers – the people who are most committed to defeating Huawei – are totally committed to a free market system funded by private capital and implemented by private companies.
Those seriously analyzing the Huawei threat believe that only a wholesale approach (which allows every company to share spectrum in a competitive environment) is capable of dropping prices enough to undercut the Huawei strategy of buying business through Chinese government-subsidized special deals.
I want to be crystal clear: The stakes are enormous. It represents the greatest American technological failure since the Soviets launched Sputnik.
Now, I know a great many people are thinking, “what’s the big deal? Who cares if China builds out the global internet through Huawei’s 5G network?”
The answer is: A Chinese internet should be totally unacceptable to everyone who believes in freedom.
As I said, again and again, in the Netherlands: China is a Leninist totalitarian state. The Chinese government has put at least 1 million Muslim Uighurs in concentration camps. It regularly locks up Catholic priests and bishops. It has outlawed the Falun Gong and persecutes them. It recently put the most popular movie star in China (and therefore the world) under “residential surveillance,” or house arrest, for months without trial. It is developing and implementing a “social credit” system which will track the private behavior of 1.4 billion people and judge them without trial.
Xi Jinping is chairman of the Central Military Commission, General Secretary of the Chinese Communist Party, and President of the People’s Republic of China, in that order.
His military commission post is most important because the People’s Liberation Army is first and foremost an extension of the Party – not the government.
Xi’s number one duty is to the nearly 90 million members of the Chinese Communist Party (by contrast President Donald Trump received 63 million votes).
In excerpts from a 2013 speech that were just released this week, Xi made the case for the life and death struggle between Chinese Communism and the West. As Xi said:
“Our party has always adhered to the lofty ideals of communism. Communists, especially leading cadres, should be staunch believers and faithful practitioners of the lofty ideals of communism and the common ideals of socialism with Chinese characteristics. The belief in Marxism, socialism, and communism is the political soul of the communists and the spiritual prop of the communists to withstand any test. The party constitution clearly stipulates that the highest ideal and ultimate goal of the party is to realize communism.”
In a nod toward Karl Marx and Friedrich Engels, Xi told the Party Central Committee:
“Facts have repeatedly told us that Marx and Engels' analysis of the basic contradictions in capitalist society is not out of date, nor is their historical materialism view that capitalism must die out and socialism must win. This is an irreversible general trend in social and historical development, but the road is tortuous. The final demise of capitalism and the final victory of socialism must be a long historical process. We should have a deep understanding of the self-regulation ability of capitalist society, fully estimate the objective reality of the long-term dominance of western developed countries in economic, scientific, technological and military aspects, and earnestly prepare for the long-term cooperation and struggle between the two social systems…”
Xi concluded the Chinese people and the Chinese Communist Party must “continuously build socialism with superiority over capitalism, and continuously lay a more solid foundation for us to win initiative, advantage, and future.”
Huawei is a brilliant example of long-term planning and a decisive effort to “win initiative, advantage, and future.”
If the United States does not get its act together, we should expect to suffer a strategic defeat in the emergence of a Chinese controlled internet which may define the next half century.
Vice President Pence’s speech to the National Space Council last Tuesday captured the right sense of urgency and willingness to change organizations and innovate despite the bureaucracy.
The 5G challenge is an even more immediate crisis than securing our leadership in space – and American leadership in space is critical to our ultimate survival as a nation.
We need the Trump-Pence team to drive into the bureaucracy the Churchillian motto of “action this day.”
Bureaucrats who don’t take beating Huawei seriously should be replaced until we find a team capable of winning for America and for freedom.
Freedom Self-Reliance Action
I’ve always wondered why it is CA will stop us at the border of AZ and search us for fruits and vegetables, not allowing us to bring any into the state but love to allow illegals to enter without any kind of health screening or criminal background checks? CA is an anti-freedom, restrictive state which virtually ignores your right to bear arms and now one cannot even sell pocket knives to CA residents [a warning notice now appears on many mail order catalogs that knife sales are prohibited to Californians]!
Yours for smarter living,
Bruce ‘the Poor Man’
Additional FREE Resources
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Emergency Preparedness on a Budget
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