Ep. 467: Of Course You Know, This Means War – What Peter Schiff doesn’t seem to understand about the Market and China – May 14, 2019,

This post is in response to Peter Schiff’s podcast, The Peter Schiff Show Podcast – Episode 467
Recorded May 13, 2019. First thing I’d like to say is Peter Schiff as far as educating his audience goes is by far one of the best in the world period. He loves to talk, he’s a great debater and he’ll bring the fight to you anywhere at any time. This post shouldn’t be considered an attack on Peter Schiff, it’s just an area that I’d like him to expand on, because I think he’s taking a purist approach to a problem that’s more than just money.

So, in the video/podcast above, Peter Schiff takes the approach that Trumps tariff and trade war against China is all about the money, he makes his stance clear that America has more to lose than it has to gain by having a trade war with China, he makes an argument that China would be better off if it didn’t hold U.S debt, he basically makes the argument that Donald Trump’s tariff policies will end in disaster for the U.S. the problem I have with Peter Schiff’s argument is that he often ignores demographics and ignores the oppressive policies of the Chinese Communist Party. I work with Chinese people, namely, upper-middle-class Chinese people and you know what they want? Their own private property, guess what Chinese people can’t do in Mainland China? Own property, they can lease property for a specified period of time, but they can’t own property, so guess what Chinese people do, the moment they get the chance? They buy property abroad, meaning they’re often hoarding the currency of other nations.

Now, guess what often goes overlooked about the U.S dollar? How often it’s used outside of the U.S, it’s used on vacation, it’s respected all and typically accepted all over the world, guess what else America does? Presently America is the policemen of the world, a burden yes, but guess what privileges this gives America globally? Angel investors, whether Libertarians want to admit it or not, you pull U.S troops out of a lot of these countries and ISIS type militia groups will appear all over the world. There’s this myth, the U.S dollar as the world is structured today can fall without the entire monetary system as we know it, being destroyed.

The U.S loses reserve status, this entire fiat monetary system is finished, no China won’t emerge, Chinas’s internal market is still closed for business, China still steals intellectual property, although socialism and Communism are basically the same things, most modern day Leftist don’t see the correlation, in fact, most Leftist via China as a capitalist nightmare and Trump as an equal to a dictator. I say this because even Leftists will, for the most part, reject the rise of China, when they feel it becoming a threat to them. Europe is already rejecting ass migration, currently, China isn’t on most people’s radars because the Islamic and African threat seems to be more problematic, but as the problem because less of a National issue, China will again start to get the world’s attention.

Is Trump doing what I wish he would do? No! of course not, but he sure is doing a lot, he’s bringing issues to the forefront that even if he loses will sound the alarms to the rest of the world as China gets increasingly aggressive to achieving its goals. Recently North Korea fired a missile, oddly enough it coincided with the Chinese Communist Party releasing information to the public that it would not back down to Trump. Trump is unveiling what China is doing, the world which even included the Leftist media are becoming aware to Chinese deception, the Democrats haven’t condemned Trump regarding China very much, instead, they’re now focusing their attention to Trump’s taxes. Why I bring this up, is because although on the surface it appears that Trump may, in fact, lose this trade war, what difference does it make? If the Chinese have to go through other channels to sell their goods to the United States, it actually exposes them to more hardships.

Internally, the Chinese are known as savers, auto-loans haven’t really taken off in China, one of the reasons the Chinese demographic saves is because most want to get the hell out of China or get their children out of China, an oppressive regime is an oppressive regime, you can’t pour syrup on shit and call it pancakes. PROPERTY RIGHTS AREN’T respected in China, if the Chinese Yuan rises, it’s a horrible thing for them, it means they have to compete on a level playing field, could this cause an economic disruption to the American consumer? Sure it can, but the wants of the U.S shouldn’t be confused with American needs.

America doesn’t need China, American consumers do want what the Chinese have to sell, but typically it’s just that, it’s a want, it’s typically not a need. Textiles from China is a huge industry and one that would hurt America in a trade war, but let’s not act like America’s need for Chinese textiles isn’t based on laziness or regulations that make it more profitable for Americans to have things manufactured overseas. Renegotiation of America’s debt could be a possibility in the event of a crash, does Peter Schiff assume that Donald Trump won’t take it there? If it’s one thing Donald Trump knows about, it’s bankruptcy court. Whether people want to acknowledge it or not, Donald Trump is in a win, win situation.

Trump simply came along at the perfect time, it’s hard for most Libertarians to understand because their point of view is typically rooted in finances, but that narrow world view often doesn’t allow them to think outside box. Bartering isn’t only about money, bartering is life, it’s everything, you barter for affection, you barter favors, you can even barter your own luck. Is the world ready for a China lead Republic? Are the Chinese people oppressed because of money or because of Chinese Communist Party policies? Wha do Chinese people typically do once they’ve made a lot of money, do they invest in China or invest abroad?

Does the world really want Chinese Fascism? Will the world realistically embrace hammer and sickle? I appreciate Peter Schiff but I think at times he can get a bit emotional based on the history of his dad, who like me was against Income taxes. In Europe, VAT and other consumer-based regressive taxes are the norms, which is why in Europe their consumers don’t consume as much as American consumers consume, because in America some U.S State doesn’t even have sales taxes, which of course helps to fuel consumption, which of course is very appealing to developing nations who don’t have to worry as much about a ridiculously high barrier to entry into the U.S market. This strategy by the U.S to make Income taxes the tax of choice has been beneficial to the U.S consumer, furthermore because tariffs are taxes used to ward off perceived external threats, businesses may in time decide to locate their company in a place that has free trade with the United States.

Business people hate complications, especially government related complications, that often lead to delays or inconsistencies in costs and pricing. Being that China is openly saying that they don’t give a damn about intellectual property, what’s more than likely to happen if the U.S keeps it’s a barrier to entry high against China, notice that even the Democrats don’t seem to be opposed to a tariff tax, if other countries become a port of entry to the U.S for China, won’t those companies force China to lower their prices? or force the Chinese to lower their currency? Has Peter Schiff not looked at Chinese debt? Yes, Trump isn’t perfect, but you gotta give the 45th and possibly the 46th president some credit, because similar to Peter Schiff he’s bringing the war to China.

Interesting times ahead