I knew that this week was going to be weird because it started off weird.
On the floor of the Italian Parliament, Bill Gates was accused of intentionally looking to reduce the world population by 10-15%. There were politicians, and you can watch it on youtube, who immediately protested to protect him. Why not let the investigation take place for they have no answers unless they are being paid to have none.
The US Senate approved by unanimous consent legislation that could bar some Chinese companies from being listed on U.S. stock.
The bill would require companies to certify that they are not under the control of a foreign government, but obviously there is way more to it.
I grew up in a communist country and I know it first hand – EVERYTHING is under control of the party. That’s the very definition of the communist system, that’s how the CCP (Chinese Communist Party) stays in power.
So the US now has the power to chase out any Chinese company that happens to be listed in New York, the most liquid stock market in the world, and China will retaliate in the effort not to lose face.
It is useful to look this way at what’s coming – China’s main customers are entering a serious recession and the Asians have no domestic demand, except a few cities on the East coast. Say, the foreign demand goes down 20% which likely means about 100M jobs lost in China. How long before these people will be on the streets rioting? What is the brilliant plan to deal with that? Increased oppression works for a while, but not for long. And there is no back up plan.
Let me tell you what I learned in life – if you don’t have a back up plan, you don’t have a plan. I’d say I am a little concerned of what’s coming, and if somebody says they’re a little concerned – that means they’re very concerned. And if they say that they are concerned means they’re desperate.
The Japanese can one day wake up on the wrong side of the bed, scream banzai! and shut the whole Chinese economy down, given the strength of their navy and easy access to oceans, two factors that China doesn’t have. Cut off the supply and delivery lines, that means. It could be a matter of weeks.
Here is my take on it – if your company has a business with staff in China, now is the time to get them the hell out of there.
America will re-industrialize, and we will do it fast, and the rest of the world will have a reality check.
The so-called “developing countries” need to get their affairs in order. You look at sub-Saharan Africa – it’s a royal mess and no leadership.
Who should solve it for them? The Americans used to care but they do not anymore.
You’ll miss them when they’re gone.
In Western Europe the political leadership is nowhere to be found since the problems started, and things go bump in the night..
Tom Kubiak is the author of The Traveler