« prev   random   next »

6
0

The largest intercontinental transfer of wealth in history: from US middle class to China's middle class

By Patrick follow Patrick   2021 Apr 15, 5:29pm 319 views   17 comments   watch   nsfw   quote   share    


https://www.americanthinker.com/articles/2021/04/guns_of_april_and_global_war.html

The effect of this intentional ostracism has been to push Russia closer to communist China and into adversarial brinkmanship with U.S.-E.U. interests.

Likewise, by largely ignoring China's decades of human rights abuses and normalizing trade relations at the turn of the millennium in an effort to tame a large but poor communist country through globalization and cultural assimilation, the United States has instead elevated China to an economic powerhouse increasingly capable of bending the West to its will. After hollowing out America's manufacturing and industrial capabilities and orchestrating the largest intercontinental transfer of wealth in history from America's post-WWII middle class to China's emerging middle class, the U.S. now finds itself in a defensive geopolitical posture with a combination of national debt, crumbling infrastructure, and dependence on Chinese raw materials and imports endangering America's rules-based international order. ...

Both China and Russia are deleveraging from American dollars, increasing their gold stores, and preparing for a future when the dollar is no longer the world's reserve currency. Without that ace in the hole, the U.S. loses not only its ability to continue printing and spending money without enduring the normal consequences of monetary devaluation and collapse but also its ability to inflict financial sanctions as a way to "club" other nations into obedience. A Sino-Russian alliance that utilizes Russia's oil, coal, and natural gas leverage over Europe and its outsized military capabilities; China's manufacturing dominance and Belt and Road Initiative extending across and linking Asia, Europe, Africa, and South America; and both nations' wealth of natural resources puts them in a strategic position to forge a stable gold-backed digital currency that will instantly interconnect most of the world's population.

It is in this volatile reshuffling of global power that an often addled and confused Joe Biden attempts to confront the military chess moves of Russia and China...
1   farmer2021   ignore (12)   2021 Apr 15, 9:33pm     ↓ dislike (0)   quote   flag      

I think it is not happening.
When I visited last time China few years ago all the people I met had 2-3 homes and they had no plans of renting them out in the fear of trashed by renters.
(Wasted investment in long term just for pure speculation )

Stock ownership is low and almost zero outside of big cities.
It is hard to discern between private or CCP owned business.

All the world is fleeced by elites. Middle class is shrinking everywhere.
3   HunterTits   ignore (4)   2021 Apr 16, 11:09am     ↓ dislike (0)   quote   flag      

Even though I am following Scott Adams, his tweets never show up on my notifications. They've shadow banned him.
4   Patrick   ignore (1)   2021 Apr 16, 11:32am     ↓ dislike (0)   quote   flag      

Yes, he pointed out their shadow ban himself I think.
5   HunterTits   ignore (4)   2021 Apr 16, 11:32am     ↓ dislike (0)   quote   flag      

Patrick says
to forge a stable gold-backed digital currency


This has been debated ad nauseum on PatNet. The particulars of how such a thing would work.

Namely, what is the definition of 'backed'. Does it mean that every digital coin is backed by physical gold somewhere? And how is the warehousing and security of those gold deposits paid for? A recurring demurrage fee on that digital currency? How it is it audited? How does one redeem digital currency for the gold?

I can think of a method...its the same one that existed before. Private banks would hold the gold in their local reserves in return to be able to issue the digital currency backed thereof. They would handle redemption as well.

Another is that gold backed bonds would be issued in the digital currency and the banks can keep those in their reserves just like they keep T-bills. Or a combination thereof.

But both cases would leave the gold vulnerable to government seizure like FDR and other commies have done.

Or 'backed' just means a declaration from the digital currency issuer, much like the Rentenmark was declared to be 'backed' by Germany's land and factories. People excepted that, btw. But then again they were reduced to barter after hyperinflation wiped out the previous currency so...

Linking physical assets to a digital currency is not as easy as one makes it out to be writing articles like that. Cute buzzwords, that's it.
6   Patrick   ignore (1)   2021 Apr 16, 11:34am     ↓ dislike (0)   quote   flag      

I agree. Most money is simply debt.

You don't have money in the bank. The bank just has a debt to you.
7   HunterTits   ignore (4)   2021 Apr 16, 11:37am     ↓ dislike (0)   quote   flag      

Patrick says
You don't have money in the bank. The bank just has a debt to you.


And you still would unless you pay the bank to just secure your money, like you pay them to secure a safety deposit box. That was the original concept of banking by the goldsmiths back in the 'day', after all. Lenders were other people, not the banks.
8   Eric Holder   ignore (0)   2021 Apr 16, 11:56am     ↓ dislike (0)   quote   flag      

HunterTits says
Namely, what is the definition of 'backed'


Means everybody will just believe CCP that they are good for it.
9   Misc   ignore (0)   2021 Apr 17, 3:44am     ↓ dislike (0)   quote   flag      

We currently have the best monetary system the world has ever had.

Gold does have some limited industrial uses, but for all practical purposes it is worthless.

Eventually with monetary systems, there comes a time when the system simply needs more money. With our current fiat system, this is easily done with the press of a few buttons. Under a gold regime, if the world-wide population increases by 2 billion people, then the amount of gold that would need to be mined would be staggering just to keep the same level of prosperity for both the increase in population and the propensity of a certain percentage of the world -wide population to save gold for themselves.

The mining of gold is mostly a wasted activity, as again there is very little actual value to the metal.
10   Onvacation   ignore (7)   2021 Apr 17, 8:26am     ↓ dislike (0)   quote   flag      

Misc says
Gold does have some limited industrial uses, but for all practical purposes it is worthless.

Really?

Does copper have any value?
11   Onvacation   ignore (7)   2021 Apr 17, 8:32am     ↓ dislike (0)   quote   flag      

Misc says
The mining of gold is mostly a wasted activity, as again there is very little actual value to the metal.

I would agree that mining gold is labor and energy intensive but people still buy it. If it was not so rare and precious it would be used a lot more.

So if gold has "very little actual value" what do you think actually has value?

My wedding ring is the only gold I own.
12   HunterTits   ignore (4)   2021 Apr 17, 3:17pm     ↓ dislike (0)   quote   flag      

Eric Holder says
Means everybody will just believe CCP that they are good for it.


Like they believe all of China's economic stats?
13   HunterTits   ignore (4)   2021 Apr 17, 3:18pm     ↓ dislike (0)   quote   flag      

Misc says
We currently have the best monetary system the world has ever had.


No, we don't. We have the one that is least fucked up compared to all the others.
14   HunterTits   ignore (4)   2021 Apr 17, 3:21pm     ↓ dislike (0)   quote   flag      

Misc says
Under a gold regime, if the world-wide population increases by 2 billion people, then the amount of gold that would need to be mined would be staggering just to keep the same level


That's not how modern gold-BASED money systems work. Not since the second half of the 19th century. Bank of England had less than 25% gold in reserve to back the pound, for example. As long as the price rule is maintained, they can print as much money as the market demands. If demand for the money drops relative to demand for gold the bank just withdraws money in circulation (sells bonds it has, etc). Which means that is why nobody but small countries can have gold-BACKED ones as you describe.

The person who wrote this article thus doesn't know jack shit about what a gold 'backed' currency is. Most economists don't, believe it or not.

But besides all that. One doesn't need to expand money supply. Prices will just fall via low levels of deflation over time. Savers benefit immensely.
15   Eric Holder   ignore (0)   2021 Apr 17, 10:12pm     ↓ dislike (0)   quote   flag      

HunterTits says
Eric Holder says
Means everybody will just believe CCP that they are good for it.


Like they believe all of China's economic stats?


Yep, exactly like that.

about   best comments   contact   one year ago   suggestions