Monday, April 18, 2016

Analyzing Trump On China

Deng Xiao-ping, circa 1979, when he finally overcame the Maoists, toured USA, then visited with Lee Kuan Yew of Singapore, some Hong Kong Billionaires and others and consulted on how to play his hand.

Brilliantly! USA was in the early but irreversible stages of lending malcredit at usury and the hollowing out of USA industry, small manufacturing first, then big manufacturers was well underway.  It would be merely a few years before USA needed massive new factories and management to COPY what USA makes in state of the art new factories.

The great roll-up of the family-owned USA small business occurred over the 1980s, with the capitalists and the communists co-operating in the collectivization of the USA economy.  Get big or get out is the stated economic policy of the USA.

For those unemployed new welfare programs were created, students loans could be given to create the impression of advancement, and Starbucks became the new hiring hall.  Whoever you are, no matter your circumstances, the Man can make up some life-support system for you, and simply put it on the tab of future generations, since there is no rational limit on malcredit.  If and when a culling is necessary, why, we have Obamacare ready.

Now comes comments from Trump:
And I'm not angry about China, in fact I respect them, I made a lot of money with China... I'm not angry at China, I'm angry at our leaders for being so incompetant that they allow it to happen. 
And I said this as part of my response to the Wall Street Journal when they just called.
I said, in the history of the world, this is the greatest theft ever perpetrated by anyone or any country, what China has done to us. 
It is the greatest single theft. They have taken our jobs, they have taken our money, I mean I see the empty buildings all over Staten Island... I see them all over... Really really sad. That's not going to happen anymore with me... 
The truth is, we have all the cards.
So he starts off right, merely stating knowing the score, he too played his cards right.   He also notes the problem is the USA, not the Chinese.  Just so. The he switches "...what China has done to us."  But Trump, they played their hand to the objective detriment of USA just as you did, so by the same token, you condemn yourself.  This of course is lost on the crowd cheering Trump waving red meat of blame China.  The Chinese see what he is doing, telling the Chinese Trump understands perfectly well what is going on, AND Trump is waving red meat in front of his adoring crowd, who haven't a clue. China gets Trump, helps him by objecting to him, and are no too worried that USA will ever be a viable threat.

China has as many empty building as USA, and as many problems.  But China can say to its youth, "go west, young man!" with its Belt and Road initiative integrating Beijing with Berlin.  Indeed, an ancient fairy tale "Journey to the West" is getting multi-decade continuous play in China.

USA has no such West, unless you mean analogously "war."  That is all USA does now, and that is not working out so well as an economic policy.

We do hold all of the cards, since China still copies and we can get creative.  But under capitalism, with our banking system and IPR, it is not possible in USA for good ideas to move forward.  Mag Lev comes up, it gets crushed by "self-driving cars."  New medicines and cures advance, Big Pharma shuts them down.  People try to protect nutritious food, they are thrown in jail for patent infringement.  Countless creative people have fallen through the looking glass of their smartphones, likely never to return.  People with smartphones have no idea what they are missing.

Sure, if we were to deregulate banking, medicine, education, and get rid of our IPR regime, we could be free, just, prosperous and peaceful.  But no, check out this youtube.

Marvin Gaye and Stevie Wonder saw all this long ago, at the beginning:

And of course...

 Feel free to forward this by email to three of your friends.


Anonymous said...

Hi John, what is your take on this:

Nordstrom is cutting hundreds of jobs, confirming a terrifying new trend among wealthy shoppers:

Nordstrom is one of my target specialty retailers, should we specialty product entrepreneurs be worried?