beer virus 2

BEER VIRUS 2

I would like to try to question the common assumption that China is desperate for American business and will kiss our ass because she needs to unload tons of plastic crap onto our shores in order to survive economically. I can't refute the myth, because we don't know China's strategic timeline. But I CAN guarantee you a jelly filled donut that China knows a hell of a lot more about running a country than Orange Man or Black Jesus combined ever did, and that she understands how dangerous that dependency is, if it is even still a problem. China looks to the future and plans.

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Meanwhile, America keeps fornicating the small dog as she only focuses on the next quarterly bonus. To save one half cent on each item sold, to buy more hookers and blow, our Dear Leaders cling to JIT Inventory, which will act as the equivalent of an EMP detonating over Kansas. The only thing they learned from Y2K was that they got rich off of another economic bubble. I look at almost any item in my stockpile and I notice I have more in stock than the grocery store. On some things, more than all of them combined.

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You do the math. Anyway, to continue with China, Europe and Africa combined almost total the amount of imports from China that America receives. That was from figures two to three years ago. Now, does anyone remember that trade war we are conducting with China? Anyone? Bueller? That means we have been getting LESS from China. At the same time, China expands via its Belt & Road the number of countries it is strengthening its economic ties with. While Russia trades natural gas for manufactured goods with her. Is it just me, or does it sound like China is detaching itself from us?

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Those Treasury Bond holdings that China has? She reduced that substantially. The only reason she holds what she does is because she needs them to buy oil from the exporter nations still under the US hegemony. And those bonds are all very short term ( she got out of long term a very long time ago-no fool she. If a relative gave me a ten or twenty year bond, I would stock that with my toilet paper ). Every time Orange Man gloats in front of the camera how he is punishing China in the trade war, you should have been thinking, “oops! China is now even LESS reliant on us as we aren't buying more crap”.

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When China stops buying any of our soy beans, I'm glad. We need to keep our food here, as well as stop importing any more Eaters. But that has a cost, in Chinese independence from us. And as China sees a manufacturing slow down from demand destruction, that too is less dependence. Those Corporate Clowns that lay everybody off to save a few bucks because more money must go to pay off debt? They are reducing the amount of paying consumers. Which means less imports from China. Which means Chinese Independence from us economically.

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We are killing ourselves here, as usual. We are our own worst enemy. Granted, we may have zero options to do otherwise, but that isn't the point. The point is that we have given China no choice but to plan around not having us as a customer. The dependence has been reduced over the years. I don't think she is even worried about it any more. She might even be using the decoupling as a military weapon. Will she hurt herself? I don't know, will she? Or is it a great way to clean out her own deadwood, the overcapacity issue she has had for many years?

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Much has been made of the lack of Chinese quality, and it is hard to argue with that. But perhaps that was intentional? After all, China CAN build quality, if that is what her customers demand. She builds the requests from crap to quality. Japanese started out after World War Two building flimsy plastic crap, and look where they are today. Not to imply Chinese will ever equal Japanese, as the Nips have a long standing cultural affinity towards perfection. Just that the Chinese learned from the best on jump starting a minor economy into the big leagues.

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Now, if you were to look at business as war, strategically your industrial economy would look like a weapon. Use it to bring in capital to strengthen your economy, to defend it by playing the pliant fool. If you chose, deliberately, to make that plant and infrastructure lower quality, you could built it lightening quick and dirt cheap. It served its purpose, getting you from rice farming to building a world trade network that brought in the worlds wealth ( it is thought that China has WAY more gold than reported, just as the US has WAY less than propagandized ). China has once again fooled the world empire Rome into sending her all its gold.

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You remember that little kerfuffle called the Opium War, don't you? England wanted all of China's silver ( a huge percentage of the worlds holdings ). She enlisted ALL the other industrial western powers in occupying China and draining her treasure. Do you think China is blind to her own history? She knows the value of industrialization as a weapon. All she did was “flip the bitch”, using the same weapon the westerners employed at one time. I can guarantee you that if any power understands Peak Oil, China does.

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She understands the temporary nature of industrialism, as she has always understood the power of exporting goods she has in abundance for precious metals. “That She Has”. Let that be understood. She had very little oil. A good portion of the coal she had was used ( keep in mind, soft low energy coal produces mostly pollutants and has limited utility, and is about all that anyone has left in quantity ). She won't make our mistake of being ruled by the availability of oil. Or of England's reliance on both coal and North Sea oil.

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It is easy to be caught up in American Exceptionalism. It is an easy way of denying reality, of pretending that our time hasn't passed into the twilight. It is also an illusion, anymore. The sooner you see that we are a washed up and denuded power, the quicker you see the trajectory we are on. Pretending China still needs us is American Exceptionalism. I WANT it to be true. But it isn't. Our collapse is baked into the cake, and if you know that you are prepared for our Balkanization and impoverishment. You don't have to like reality to understand its power over you. I'll continue tomorrow.

( .Y. )

( today's related Amazon link click HERE )

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note: DZ, thank you for the generous PayPal donation-who da man?
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note: don't believe gold and silver production has fallen off a cliff?  View this article ( HERE ) and look at the first chart in the article.
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