Frankenstein’s Monster: How our ‘elites’ made China scary…

Dear Reader,

We talked last week about 9/11…

And I didn’t want to dishonor the memory of friends we lost by bringing this up then.

I’ve been thinking about another event that happened in 2001 that very few people remember… on the 11th of another month.

Something that has had an even greater impact on the United States and the world – by a factor of 10.

So that’s what I’m talking about in today’s Diary

On December 11, 2001, three months after 9/11…

China was allowed into the World Trade Organization.

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===

The elites in both parties – Bill Clinton shepherding China through the WTO and George W. Bush signing the final deal – had their hands in creating what would become a “Frankenstein’s monster” of our biggest competitor.

Now, this has had a bigger impact on the United States and the world than anything Osama bin Laden could have dreamed of.

This was establishment thinking – the elites actually believed that if we make this giant rich…

If we open our capital markets to them…

If we show them the playbook…

That they would become our benign little buddies.

And, even more offensive, the elites of this country actually thought that China would become democratic.

This shows me a couple of things…

First, a shocking lack of humility – that you actually think you understand another country – really, another civilization…

Where you think they’re going to become democratic, when nothing in their history suggests that.

Countries that are invaded and have enemies all around them tend not to become democratic – they tend to become autocratic.

The population of those countries tend to select “strong-men” – think Russia, Poland, etc.

To have the arrogance to think that China would become democratic?

I mean, some of the top minds of this country at the time were actually saying, China will get rich, then they’ll become democratic.

Secondly, they thought China would follow international rules. Ha!

These elites didn’t grow up like me, I can tell you that…

The neighborhood I grew up in, Queens, NY, in the ‘70s – it was all about the playground, right? When a big, new strong kid came into the neighborhood, you had to settle the pecking order immediately.

These ‘elites’ were so out of touch with the way real people act, the way real power is distributed, that they actually thought that this big giant would just take the second or third pecking order. It shocks the mind.

I bring this up because last week it was announced that Volkswagen was going to do something that it’s never done before in the history of Germany…

They’re announcing layoffs for the first time because of all the Chinese exports flooding the German market.

Now, Germany is in a very tough position here…

They sell a lot to China, so they don’t want to slap tariffs on China too much, because if they do that, China’s going to slap back.

One of the right things that the elites in our country have done is they haven’t made us that dependent on exports to China, which reduces their leverage with us.

So there was somebody in our government at the time that must have had some kind of a brain – who must have foreseen that this was a possibility…

That we’d not only strengthen and enrich China and lift them up out of poverty, which is great, but that we could actually create a Frankenstein’s monster of our biggest competitor who now is breaking free and wants to do what it wants to do.

I am not, I repeat – I am not anti-Chinese. That is simplistic and stupid; that is beneath the quest for truth that we find ourselves on at this stage of our lives.

I am pro-American. Pro-defending this country.

This is where I am coming from. Not anti-anybody.

I believe in live and let live and have everybody do what is in their best interest.

I am just talking about what is in our best interest.

And I think about if we were to have a conflict with China, how that might play out.

See, a lot of people believe the Nazis beat France in WW2 because they had better weapons.

But that’s not true. Both militaries were evenly matched, for the most part.

So how did Germany beat France in just six weeks? 

Speed and mobility. They used their weapons better and faster. That’s the key to success in warfare.

The good news is that China knows this. A recent report written by one of their military think tanks shows that…

one new U.S. weapon has them worried. That’s because it’s the fastest and most mobile weapon ever produced by a human.

The Joint Chiefs of Staff call it “unstoppable.” 

The Independent reports, “You won’t even see it coming.”

Forbes says the U.S. military plans to deploy “an arsenal of these weapons.”

We did a full 100 page write-up of the small company that makes this crazy new weapon it in our latest report on the defense sector.

You can get access to it right here.

“The Buck Stops Here”

P.S. On a personal note, I want to wish our members Harold and Mona a happy anniversary.

Their anniversary was last week – 52 years. It’s a miracle in my view, to share a life with someone for 52 years, so I just wanted to say, happy anniversary.

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