The Economic Reason China Wanted To Extradite Hong Kong Citizens – September 8, 2019,
I’ll keep this post short and straight to the point and leave a video, you may want to consider watching to validate my argument. If you’re wondering why China wanted to The Economic Reason China Wanted To Extradite Hong Kong Citizens into mainland China, has to do with money leaving China. It’s a common practice for people in Mainland China to use Hong Kong as their means to ESCAPE the Renminbi.
It makes me laugh whenever people ay China is going to take over the world anytime soon, without using force. Because even the Chinese want out of China, sure many Chinese are Chinese Communist Party supporters, but given the option, most want to leave, even when they publically show their support for the Chinese Communist Party. If China ever went to war and was met by fierce opposition, based on what I know about war, most soldiers will deflect, don’t make the mistake of comparing the Chinese to the Japanese. Similar cultures, but different principles. Big government, especially big oppressive Government is tolerated as long as a better option doesn’t exist.
As a Chinese person grows out of the Chinese Communist Party brainwashing their minds begin to wonder how they can get out of the thumb of communist oppression, if not them their child.
Bartering the Renminbi in Hong Kong
Gold bugs, you know the Peter Schiff types, that view the world entirely from the mind of Libertarian American, forget that China historically has mastered the skills necessary to survive in a market society. Jews and the Chinese, stick them in any system of governance and they’ll find their way to assemble some form of power in that economy, why? Their culture is embedded in the Art of Bartering.
So as an example a person from Mainland China trying to escape hoarding the Renminbi, which if it was a free-floating currency would be a joke, use their artificial buying buyer to barter themselves to their desired currency. They might purchase Gold, Silver or something of precious value, that’s easy to sell. Ever noticed that the Chinese open a lot of businesses? Well, a huge portion of the bartering process in many ways excludes money being exchanged for money if a particular consumer good is selling like hotcakes and terminal is paying you Hong Kong dollars instead of Renminbis…
Now, in Canada as an example, if you have any friends in border control, you might learn a few things about the Chineses and suitcases full of Canadian currency. People in China have been using every means in their disposal to purchase real estate in as many Western Countries as they can. In Canada as an example many protections exist to prevent deflation in that countries real estate market, therefore a place like Canada becomes an ideal location to flip a property and exit the Canadian market with cleanly washed Canadian currency, that if it were up to the Chinese Government would still be valued in the Chinese Yuan (Renminbi).
The above example is a widespread problem, so much so that there are Chinese businesspeople who intentionally don’t want to grow their businesses too large to avoid gaining the attention of the Chinese Communist Party. Money laundering is a widespread problem in China and Hong Kong is a major player. This is why the Chinese Communist Party has been very delicate with the Hong Kong protests. If this type of attention gets to the mainstream media, people will start to ask questions about the Renminbi, people already don’t hoard Chinese Yuans imagine when they figure out that the Chinese people don’t want them either? World’s second-largest economy, are you sure? By what metric? By the Chinese Communist Party manipulating the financials?
Big government is always inefficient if China was competiting on a level playing field their entire economy would have to correct. When I write about Donald Trump refinancing America’s debts, China is at the heart of it, but also the European Union and countries like Canada, Australia and India also aren’t in good shape either. Now, one could argue, blame the worlds economic woes on America, but as it stands now America has the closest thing to a free market in the entire planet. Furthermore, let’s not underestimate the U.S Military, the American citizen is still armed, it’s not like a foreign invader is going to walk into America without a fight.
Not to mention America is still a SYMBOL of Freedom, now I get it, America is far from perfect, but it’s the best option the world has at the moment. The video below is worth watching, not to say that individuals in the video came to the same conclusion I come too, but the information is very useful as it’s a reminder that mainland China still hasn’t opened up its books and money, the physical cash, that Asians are known for hoarding are not being hoarded in Renminbis.
Will a Currency Crisis Bring Down China? (w/ Kyle Bass & Raoul Pal)
Interesting times ahead