In an attempt to consume more US Dollars China Devalues its currency, the stupidity of the Chinese Communist Party – May 20, 2019,

He who consumes is at the mercy of he doesn’t need to consume, the Chinese people are a great people, however, their Government that represents them aren’t so smart. Has the Chinese Communist Party done a great job in comparison to other dictatorships? Of course, they have, but let’s not assume that any wealth China has created as wealth that wouldn’t be more plentiful if the Chinese Communist Party didn’t exist. China via their government has inadvertently destroyed their chances of becoming the preferred fiat currency of the world, with their recent move to devalue their currency in pursuit of consuming more U.S dollars.

So as many people are aware, Donald Trump has put more tariffs on China simply because of China’s intellectual property theft history as well as China’s massively profitable tariff environment, which of course is the reason why so many companies end up in China, to begin with. Because in case you’re unaware, what Tariffs typically do is they force a company to move their headquarters to China if they want to sell their items to the Chinese market tariff-free, this, of course, opens those companies up to intellectual property theft.

Now, my personal opinion has always been that Communism doesn’t revolve around individualism which is an ideology that’s rooted in respecting private property. Communism is rooted in a concept that for the greater good all the people should give up their individual rights to serve the collective, this is obviously why when you go to most communist or heavily socialist places, that people can be rather robotic, standing out could get you killed and scrutinized in a communal tribe, whereas you individualism is often praised in a society that revolves around protecting property rights.

So as most people know, in China you can’t own land, you can only rent land, so right off the bat, if you know anything about real money chasing freedom, you’d know immediately that in a fiat monetary system that was first embraced in China, China is creating a bad cycle for themselves and their currency, by devaluing their currency for opposition based purposes. What I mean by this is let’s say, people were beginning to hoard Chinese Yuan or were even considering switching the U.S Petrodollar for the Yuan Petro Dollar, well what the Chinese Communist Party just did by devaluing their currency is show the world how unsafe their money would be if the Chinese Yuan was the top tier reserve currency.

Furthermore, property rights, this is a huge topic for people who even consider themselves socialists. Most Western Socialist don’t want to have the government confiscate their private property. Humans all over the world whether they love or hate the United States hold the US dollar with high regard because with all of it’s imperfections t represents a persons ability to purchase PROPERTY. By China devaluing their currency for POLITICAL reasons it’s a sign that their central bank doesn’t operate independently. While Barack Obama was in power, Obama supporters hated the U.S Federal Reserve, because the people didn’t see Obama and the Federal Reserve as one entity.

Even right now, Jerome Powell and Donald Trump aren’t exactly seeing the world eye to eye, with everything Trump has done Powell has exactly capitulated. The Presidency of the United States and the Federal Reserve are still viewed separately. Even when Trump complains, the assumption is Jerome Powell will do what he believes is in the best interests of the country. Also, the Democrats who oppose Donald Trump are still viewed as a political party with some say in how the country is run, the supreme court also functions as another authority to give any democratically elected leader from becoming a dictator. Whereas in China, the only person the outside world knows is Xi Jinping and although some people might like this, the free market doesn’t.

The free market or the market in general only like Xi Jinping if he can get them positive profitable results, that help their bottom line. If Xi Jinping ever becomes unprofitable the market will turn it’s back on him. As big as China is, it should be noted that China is often not making things, they’re often the place for final assembly. Although items might be stamped as Made in China, the materials often came from other parts of the world, ended up in Chinese factory and then were shipped out via the economies of scale advantage China has over the rest of the world. So, if the world assumes that China can’t be replaced, or can’t lose steam they’re sadly mistaken.

Also the Chinese people because of their inability to own property in China, tend to leave China the first chance they get, cashing out their Chinese Yuan in pursuit of a currency that allows them to own real estate. China is escalating its own demise by devaluing its currency to consume more U.S dollars, but you see what choice does it have? Communist and dictators, in general, have to look strong, remember people allow these dictators to function primarily because the dictators assume to have everything under control, but you see the problem with centralized control always revolves around hyper-inflation.

A peoples inability to have or own any property in time results in economic chaos, because property represents stability, retirement, hyper-inflating a currency equates to a delaying retirement, I hear many people saying to themselves well isn’t that happening in western countries? Yes, but in western countries owning property, if you’re smart and know how to leverage equals to a stable retirement, property ownership, can actually outlive money, because with land you can grow your food, build your home do your own type of trading, but if your government strips you of your ability to own any property essentially making you a renter of everything and your currency is hyper-inflated, plus your leadership doesn’t revolve around any type of democratic process, well my dear reader, you start to see how once great nations turn into hell holes.

Now, I’m not saying that this move by China to devalue its currency is going to have a devastating impact, all I’m saying is end this talk about the Chinese Yuan becoming the new petrodollar or the Chinese Yuan replacing the U.S dollar. No, the real threat China is creating is the illusion of our dependence on them. The world’s dependence on China revolves around laziness and our inability to have honest conversations about the role of Government. There are things that the Free market do a lot better than the government and the Western World needs to have an honest conversation about what those things are.

Why Yuan at Seven Would Risk Further Inflaming Trade Dispute – Bloomberg.com

A $19 Billion Test Is Coming Straight for China’s Battered Yuan – Bloomberg.com

interesting times ahead.