Does China Need The U.S or is the Chinese economy better off without the U.S economy, the lesson from Germany – September 5, 2019,

Currently Germany has over 82 million people, currently, the USA population exceeds 300 million people. Germany similar to China is still a manufacturing powerhouse, not only in Europe but Worldwide, native Germans have very high IQ’s and for the most part, are highly educated, this, of course, translates to their consumers being accustomed to higher quality items and having a good understanding of the marketplace. Part of the reason the European Union exists is to serve German interests, why? Because most of Europe, if the Euro currency were to dissolve, Most European nations wouldn’t be able to afford German manufactured goods.

When other European nations had their own currency, Germany had a difficult time selling things, not because other Europeans didn’t like them, but because other European nations put up trade barriers. devaluing your currency is a trade barrier, tariffs are trade barriers a European Union with a common currency solved that problem for Germany and now they have a larger supply of European buyers, but what’s starting to happen in the EU is that other EU countries are having a hard time keeping up with the Germans.

Gold bugs often forget why there was a demand for a Fiat monetary system. In simple to understand terminology, some nations have extremely low economic IQ’s and in order to balance global economies, financial wizardry has to come into existence. Well, fortunately under this new monetary system America benefits greatly because American economists figured out that higher point of sale taxes in a fiat-based system has a damning effect on consumer behavior.

Well, in most parts of Europe Austerity measures is an unacceptable solution to economic problems and therefore point of sale taxes or regressive taxes is the tax of choice, this, of course, drives up prices and creates a sluggish economy. Now, if you at least understand Austrian economics, you eventually come to the conclusion that manipulating the money never works, however, the house of cards can remain intact as hyperinflation doesn’t occur. So in short to answer the question, the reason China is locked and boxed with the U.S economy is that there is no better option, Communism isn’t exactly a structure of Governance that leads to competent INNOVATIVE leadership.

Let’s say China decided to flood Europe with products, well have people seen how many tariffs already exist in the European Union in 2019? The problem with most people who exist in the Financial sector is that it’s hard for them to see the world from a manufacturing perspective, the stock market financial guys aren’t paying the tariffs directly, so in their minds, the European, Asian or African trade barriers don’t exist. Tariffs are the main reason Africa is the poorest continent in the world.

Do you not think China would be even more aggressive investing in Africa? Africa has trade barriers on China too. Stephen Myrow from my vantage point, probably spent most of his life as a Bean counter. I find his argument in the video titled “Myrow: China may find it can live without the U.S.” very silly.

China can pretend all it wants, China needs the U.S and will always need the U.S as long as the Chinese Communist Party exists. China isn’t known for high-quality manufacturing, and even if it is, you have to remember that Communism, doesn’t allow novelty or innovation, being innovative in China could land in you prison and the Chinese government has 99% conviction rate, no person in their right mind is going to make China the leader of the Free world, the market would turn to Gold before that happens and gold is barter and bartering leads to a taxation with representation system failure.

interesting times ahead