The Chinese Communist Party and Property Rights: Why China’s plan for global domination is a Marxist Disaster – March 2, 2021,
It’s not about what people say, it’s about what people do. It’s all about property rights at the end of the day and as I’ve written before in the past, the Chinese Communist Party has a huge problem and revolves around the Chinese People and their consumption rates.
The Chinese People, for the most part, don’t like their government, they tolerate their government, because, well what else are they going to do? You stand up to a government as big as the Chinese Communist Party and you get stomped on, so most Chinese People make do with the hands they were dealt.
But this presents a huge problem for the Chinese Communist Party because most people around the globe refuse to hoard Chinese Renminbi, some will trade with the currency for above-average returns, but this becomes a problem because unlike the U.S dollar which is hoarded and in many instances treasured, the Chinese Central bank and their derived financial products resemble a liquation sale.
Business people are going to China for the discount and nothing else. What this means is if the Chinese economy crashes, the Communist Party crashes with it. As I’ve stated in all my posts, people forget the wealth derived from China comes almost entirely from their ‘free market zones’ the Communist Party if a business is more bankrupt than the United States.
What this ultimately equates to is China doing what every other central bank does, which is prop up the U.S dollar. This is a blessing and a curse to the United States. It’s a blessing if you do international trade as a U.S business person, it’s a curse if you’re a U.S citizen who does commerce only in the United States, especially as a Wage earner.
Because with these money printing powers, the U.S government can service its debts with money not derived via productivity or trade. So in the real economy, this won’t necessarily IMMEDIATELY equate to price inflation, but it will lead to a more expensive government.
What I mean by this is that the cost of living in the United States with U.S dollars will rise, while the U.S dollar globally remains strong and even more beneficial for people using U.S dollars outside of the United States. This concept s hard for most people who don’t do international trade to grasp.
America is the rare nation of the world that has a consumer-driven economy, however, American politics is one of confiscation. Because of the U.S constitution, there are LEGAL ways to avoid government overreach, but that privilege is afforded to Americans who can afford those costs.
In China, there exist no legal loopholes. Jack Ma who is one of the richest men in the world, can not escape the power of the Chinese Communist Party(CPP), a similar dynamic exists in Russia. We’ve all seen the video of Vladimir Putin bullying rich men in Russia.
The REAL Private Sector Economy is deflating – Government Stimulus or Die!
Why this is significant, is that if you’re a person of modest wealth, you’d probably have lower morale as a Chinese citizen than you would an American citizen, because you know if you speak out against the Chinese government you’re going to jail or you’re going to die!
A lot of Chinese people save their money in a currency that is not the Renminbi, this is one of the reasons why the Chinese Communist Party was eager to annex Hong Kong! Oddly enough soon after annexing Hing Kong and allowing Bitcoin miners into China, The CCP released their own digital currency.
Now obviously a free Hong Kong would prove extremely problematic for Digital Yuan, but an annexed Hong Kong gives a different appearance. All that aside, with all the tensions between the U.S and China, China finds itself in a bind, because a commodity-based currency would destroy the CCP, and unless forced to do so, nobody wants to hoard Chinese currency.
This entire world we live in revolves around property rights, taxation in all of its forms is theft, and the mere fact that you still hear people in the year 2021 saying raise my taxes is an indication that most people don’t understand that the mere idea of property rights in a market system is VOLUNTARY ideal.
Once you initiate force to achieve an arbitrary political objective, you’ve indeed dug your own grave, it’s just that bear jumps out the window! So when you build a society to nowhere while digging your own grave, the economic crash is endless.
The real economy all over the world is deflating, however, fiat money gives us the illusion that the economy is inflating and possibly headed for hyperinflation. There only exists hyper-inflation in a politicized world with a politicized monetary system. There’s only one problem in a commodity-based monetary system and that problem is deflation!
Life is about to get more expensive during a deflationary economic cycle! Stimulus or Die!
China unlikely to wield U.S. bond weapon as tensions stay high | Yahoo
Interesting times ahead!