Kyle Bass interviews infamous Chinese businessman Guo Wengui, also known as Miles Kwok, to hear a series of ‘shocking’ accusations against the Chinese Government and Party. Kwok talks about the workings behind several recent high-profile news items and touches on the CCP’s management of the economy. He also makes an alarming forecast about Alibaba co-founder Jack Ma. Filmed on October 5, 2018 at an undisclosed location.
My comment: China’s foreign currency reserves DO NOT sit within China, but in special accounts at the ledgers of foreign central banks. US dollars owned by the Chinese [in reserves and treasuries] sit on the Federal Reserve’s ledger! These accounts can be frozen or deleted outright, if there’s sufficient political will for such an action, just like the US and the UK did with Venezuela’s foreign assets. China’s economic model rests on being a huge net importer of aggregate demand. China’s physical output capacity is unquestionable, it’s a fact. To say that the Chinese economy is fake is nonsense. As for the amount of bad loans Chinese banks make, what’s so surprising? Look at all the bad debt, at all the derivatives in Western countries. China isn’t in danger of insolvency. The Government spends and taxes in its own fiat currency. It can operate with negative equity, denominated in its own currency, indefinitely. The CCP makes an assassination look like an accident. The US-Israel Deep State makes an assassination look like a suicide [if Epstein’s death wasn’t faked]. His prediction that the CCP is going to collapse in two years time is pure fantasy.
I find it amusing that rich businessmen associated with governments unloved by the Western Establishment are called oligarchs, but if these oligarchs are critical of their own governments and friendly toward the Western Establishment, they are deemed as honest merchants, honest entrepreneurs, and even whistle blowers. It doesn’t matter that the Saudi regime violates human rights and liberties, that it tortures and kills people – it doesn’t matter because the Saudis treat oligarchs well. And that’s what matters in the eyes of the West. We don’t have a problem with your methods, with your crimes, so long as you show respect to our trans-national ‘business community.’
Kyle Bass, even though expressing doubt over some of Kwok’s claims [in some cases pure slander, like the reference to Hu Jintao] didn’t ask for any type of proof. It’s no secret that corruption and violent score-settling exists among and between China’s elites within the political sphere and the bureaucracy [the party-created and state-created oligarchs]. But why must we act so surprised, as if these things don’t happen in our own countries too, I don’t know?
By now, it should be relatively clear that many of the leaders of the Hong Kong protests are controlled and directed via the network of United States intelligence agencies and NGO apparatus for the purpose of protecting its corporate tax haven, keeping a friendly outpost on the Chinese border, and sowing seeds of discord within China itself.
However, the protesters are absolutely right in their concern for what will happen if they become part of China – i.e., another human tragedy that is the result of Communist authoritarianism exhibited by the Chinese government.
Thus, both the official and the mentioned unofficial demands are entirely reasonable. The people of Hong Kong must not be forced to live oppressed under authoritarian Chinese rule. Because the US has its own interests that do not involve freedom or human rights, it would be wise of the Hong Kong protests to abandon their Western-backed opposition leaders and find real organic leaders that are not taking orders from the West. They should, however, continue to press for the rights they have and the rights they deserve.
On this season finale special episode of Going Underground, legendary journalist and film-maker John Pilger rounds up all the latest issues. John describes the current state of global affairs as in a state of warfare, warning that the ‘coming war on China’ has now arrived. He also discusses the Hong Kong protests and why they have grown, along with US involvement in the unrest. He discusses the collapse of the INF Treaty and the beginning of a new arms race with Russia, amid a situation where he describes it as Washington’s goal to break up the Russian Federation under Putin. He also warns of the increased risk of nuclear war as nuclear superpowers such as Pakistan and India are also entering major tensions between each other. John Pilger also discusses his concern with John Bolton being in charge, and how Brexit has created mass-distraction in the UK from the most pressing of issues at home (such as austerity and the NHS) and abroad. He slams sanctions on Venezuela and Iran and also updates us on the condition of Julian Assange, after he visited him recently in Belmarsh prison.
My comment: Pilger, in not too many words, reveals his disappointment with Bernie Sanders and the others, the so-called Democratic Socialists – which he correctly labeled as social democrats. While on this subject, I can’t help but point out the utter idiocy of rebranding social democracy, liberal social democracy to be more precise, into ‘democratic socialism’ by people who claim to represent the Left. Socialism – the social state – by definition, implies democracy. Even an absolutist ‘social monarchy,’ like that envisioned by Ferdinand Lassalle in the 19th century, would hold elections, in which the people get to have a say on how the country’s run. Whether elections would be real, or just for show, that’s another matter entirely. But I digress…
On the issue of China, Pilger’s forecast is right as can be. Not only is Trump’s change in relations with Beijing bipartisan in Washington – despite PR attempts to the contrary, aimed at the brainwashed US public – but Trump’s zealous supporters, who are critical of the establishment, are applauding the trade war and supporting the Hong Kong protests. Alex Jones propagates the idea that the Chinese are deliberating hurting US farmers, in an effort to destroy the United States, and invokes Thomas Jefferson’s wisdom that it’s the farmers who will provide the bulwark against the country’s collapse. Jones’ falsehood is that he portrays the Chinese tariffs on US food as completely unprovoked, rather than retaliatory. I don’t understand the need for all these lies; because tories are going to vote Trump anyway, even at the cost of a recession. Or maybe that’s not really the case? And US farmers are wise on Trump’s tariff war implications? In that case, in makes sense for Zionist manipulation agents like Alex Jones to make use of this sophistry and square all the blame on China. There’s many a reason to bash the Communist Government, but at the end of the day, this particular issue is a matter of Chinese national sovereignty. How would they feel if a separatist current manifested itself in message and action in say, Hawaii – and the Chinese stated they supported the separatists? It’s incredibly hypocritical. Moving on… I enjoyed Pilger’s nuance on the Hong Kong protesters. He said that there are legitimate concerns and grievances among the population, and it’s not all an artificial uprising sponsored by the West. The world is definitely getting more volatile, and I personally have little faith in the European establishment to break away from Washington’s ruinous, syphilitic schemes.
The Duran’s Alex Christoforou and Editor-in-Chief Alexander Mercouris discuss the economic and political divorce unfolding between the US and China. President Trump announced last week he would add 10 percent tariffs on $300 billion of Chinese goods starting on September 1st. The move covers all goods the US buys from China. In response, Beijing allowed its currency, the yuan, to weaken to more than 7 per 1 USD, a level many analysts considered important. Trump called the slide in the Chinese yuan “a major violation.” For the first time in 15 years, the US Treasury Department proceeded to name China a currency manipulator.
My comment: Alexander Mercouris is right on the benefits inherent to mutually assured deterrence. I believe the divorce between the two super-powers is inevitable as well. And just to be clear, even though the process kicked off under Trump’s term, it was taught out well before he took office. That’s why US trade sanctions and military escalation have bipartisan support; and why pro-peace voices are labeled as “Putin stooges.” I’m also disappointed by the Chinese… they continue to put the exports sector ahead of domestic consumption. What’s the point in another devaluation of the yuan vs the USD? You retain your chunk of the US market. For what purpose? All dollars owned by the Chinese as checking and saving accounts at the US central bank are at risk, given the geopolitical situation between the two. It’s high time China recycled some of its trade surpluses in other countries, to the benefit of foreign exporters and their own citizens.
With regard to the European Union. I’m highly skeptical of any major divergence from Washington’s dictates. Western Europe is US military occupied territory. The US can strangle Europe in more ways than one – and its propaganda outlets are stronger than ever. National intelligence services of EU member states are in the USA’s pockets. A military switch of allegiance would result in economic warfare, sabotage, and widespread unrest. Regardless of who’s in the right or wrong, those who control the propaganda machine control the narrative. And unless there’s a massive economic crisis, no significant geopolitical shift will occur. The unipolar moment is gone; and new alliances are shaping the world…
While everyone is bemoaning the US Administration raising tariffs on the ‘usual suspects’ and placing new tariffs on new players, like India, nobody’s talking about the situation’s upside or the upside’s potential to grow over time.
We constantly hear the mainstream bang in our heads the importance of trade, international trade in particular – bilateral agreements being seen as out of fashion. But we rarely hear the domestic market being brought up at all. Aren’t countries exposing themselves to numerous risks of varying degrees and different natures by allowing the unhindered flow of international capital to dictate their fate? Aren’t we, the people at grassroots, tired of politicians apologizing to trans-national companies about how they can’t give them sufficient tax breaks and other privileges in order to sway them to dismantle operations somewhere else and open them up here? Aren’t we tired with corporations outsourcing every little thing? Aren’t we tired of the narrow-minded focus on lowering costs while completely ignoring the necessity of giving people good jobs that pay big wages, from which workers can spend enough to secure better lives [without needing to use credit cards] while also allowing them to leave some money idle on their balance sheet for rainy days? [i.e. to postpone consumption into the future].
The home market is the most important of any nation, and for decades the prevailing orthodoxy is that capital knows best, that capital subservient to the Globalist outlook of world affairs. It’s dangerous to allow people to vote on their own fate. It’s dangerous to give people bargaining power, because then the State will surely become tyrannical as a result, will ‘oppress’ big capital, and that tariffs and Government industrial subsidies just end up raising prices, hurting the poor the most. I’m tired of this false empathy. The same analysts who are shedding [crocodile] tears for the poor and slamming tariffs are the same ones who, for decades, have relentlessly tried to conflate the stock-market with the real economy. Manufacturing jobs are vanishing? That’s great for the country, because the stock-market’s going up. Wages are stagnating, while big corporations have record profit? That’s great, because the stock-market’s going up and you can import very cheaply from China. Who decides international trade? Some democratic, accountable, and transparent forum? Of course not.
Richard Wolff, a Marxian economist, often tries to confuse the audience by conflating tariffs with economic warfare, citing WW1 and WW2 as the byproduct. It’s nothing short of sophistry. A tariff is slapped on foreign goods meant for the domestic market, with the aim to protect the market share of domestic firms and thus grow domestic industry, in both size and specializations [diversification]. It’s not the same as economic warfare. It’s not the same as stopping foreign economic agents and states from doing business [buying and selling] with third parties. It’s not the same as freezing or confiscating assets owned by foreign entities. It’s not the same as denying foreign shippers the right of passage or the right to dock, or seizing their cargo.
The argument about how much revenue tariffs can or can’t bring in is a red herring. The purpose of Government money taxation is threefold: a) to create permanent demand for Government currency, giving it thus extrinsic value, and allowing the Government to provision itself with labor and materials b) to drain income out of the economy, regulating thus the levels of Aggregate Demand and keeping prices in check c) to penalize and or incentivize various socio-economic activities and behaviors.
With the right type of taxation in place, economic agents pursue productive [wealth creative] activities, as opposed to unproductive ones [wealth extractive], and they are thus able to meet their tax obligations. The State’s goal should be wealth creation, full employment, and price stability. Real constraints for a sovereign state are: available land, available labor, available materials, and technology level. There will always be enough Government funds for this project or that program, so long as there’s political will for it.
Aren’t we tired of demand leakages at home, which make the country run far below maximum capacity? Aren’t we tired of exporting net aggregate demand, so that foreign actors can use those funds to bid up our asset prices? Aren’t we tired to compete against foreign enterprises who underpay and overwork their labor and rape the environment? Aren’t we tired of eroding national sovereignty by surrendering more and more of the country’s economy to trans-national, foreign interests? Let’s have businesses, large and small, invest in capital equipment and labor training, instead of expecting the State to do all the heavy lifting by itself, so that capital can get away with higher and higher markups while investing less and less. Let’s promote an economy in which land and labor are placed before finance – and in which finance serves public purpose, instead of subverting it.
Comparative advantage is a state of affairs that works for the wealthy. So-called free trade has worked out great for those at the top, but not for those at the bottom. Mainstream media and mainstream think tanks portray less educated workers as stupid and dangerous [dangerous for the well-to-do woke], because they favor tariffs. They never mention the fact that this particular trade policy falsely touted as “free” has been used as a most proficient weapon against them in class warfare. Offshoring and outsourcing didn’t lower total production costs. More so, the national system of production was rendered more vulnerable and risky [in civilian and martial terms] when we take into account the loss of critical manufacturing facilities and know-how.
“Free” trade was quite good in transferring income from labor [direct human production factors] to the managerial classes. The lower working classes aren’t stupid or insane. They recognize the changes of the last two decades haven’t helped them and wish for a new deal. China’s admission to the WTO, in spite of it not meeting the criteria, was a big factor in the decline of manufacturing jobs.
Liberals and SJWs who insist the Trump phenomenon was caused by the racism of white, straight, men in the US are lying through their teeth. While much focus was put by Trump, Sanders, and others on NAFTA for its negative impact on US jobs, the major culprit was China. Many US factories that moved to Mexico did so in the logic of matching prices from China.
Professor Brad DeLong explained how the Ricardian [mythology] view is unrealistic and why it favors the rich.
“[…] comparative advantage is the ideology of a market system that works for the interest of the wealthy. For comparative advantage is the market economy on the international scale, and the market economy is […] a collective human device for satisfying the wants of the well off, and the well off are those who control the scarce resources that are useful for producing things for which the rich of the world have a serious jones [fixation].”
In the early ’90s, more and more manufacturing jobs in the United States went overseas. The trend amplified, as entry-level jobs in some white-collar professions like the law now share the same fate. In the realm of software, few positions are left in the US, which will be ceded to experts in India, because the ideological consensus holds that the training of a new generation of specialists at home is untenable. Meanwhile, countries like China, South Korea, and Japan – who practice protectionism – don’t have to worry about such issues. “Protectionism causes depression” is nothing short of fear-mongering. People at grassroots recognize this scam without being savvy in trade and econ theory. They vote on instinct and their instinct is correct.
Mainstream economics, the foundation of policy-making in most countries, isn’t grounded in scholarship. It’s propaganda, highly valued bs because its proponents put out fancy equations when challenged. There’s nothing wrong with their math, but everything’s wrong with their assumptions. See one stark example here.
Tariffs are one way to strive for economic and geopolitical independence, but they’re just an instrument. The larger scheme has to rest on investment, training, diversification, and development. A nation’s true wealth rests in the full and multifaceted development of its productive powers, not its current exchange values. A nation must never sacrifice the former for the latter, for the promise it will be assured an important and comfy role as a mere cog in the grand scheme of Globalization. Autarky or efforts toward autarky have been described by the mainstream and the wannabe anti-mainstream as the goal of racists, nazis or fascists, and misanthropes.
The hypocrisy is telling, no? It’s good for a household to be independent from the grid [from everyone else] in terms of electricity; but when countries attempt economic independence [through their State institutions and policies], it’s bad and dangerous – it’s a case of tyrannical Government, led by racist extremists. According to these enlightened Globalists [some of whom are capitalists, some socialists, and others, mixed – like DiEM25], a country, any country, should always be dependent on another’s labor, another’s equipment, another’s fuel, another’s know-how, another’s military. To try and minimize those relations of interdependence is a crime… a declaration of war against civilization itself. To these humanist jackals I say, don’t worry, you’ll all get comfy, prestigious jobs as controlled opposition in the next paradigm; so spare us the hyperbole, the doomsday scenarios, and your demonization of independent, national, political economies.