Dear Reader,
One of the best things about my job is I get to communicate with people all over the world.
Some have become friends over time.
It’s kind of like having pen pals.
I get to share my passion for the stock market and valuing businesses, plus geopolitics and biotech and all these other things…
And I get to geek out with other people who enjoy this stuff.
I get a lot of questions and letters from people who genuinely challenge me and make me think. I’ve developed relationships with some.
I practically tap dance to work 7 out of 10 days – I feel really very grateful that God has put me on the earth to do this and share this and that I get to do this.
Today I want to talk a little bit more about China.
Foreign Affairs Magazine published a critical update to the “China Shock” this month.
As we’ve discussed, China’s economy is slowing down dramatically.
And instead of getting its consumers to spend, China has been pushing its manufacturers to produce more.
This has created problems.
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The Military’s Secret New “UFO WEAPON”
CBS News Reports: “It’s an entirely new type of weapon.”
The NY Times Reports: “No existing defense can stop it.”
The Pentagon says, “It’s Our #1 Priority.
Huge Pentagon contract could spark huge gains on a small defense contractor that will help build it.
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What a lot of folks don’t know, when you look at America, England, France, Germany – all the Western countries and the rise of populism – is that this really grew after China entered the World Trade Organization in 2001.
Bill Clinton and George W. Bush both shepherded China into the WTO, allowing them to start trading with America, Germany, France, UK – all these Western countries, with low barriers.
And what happened is China sucked millions of jobs out of these nations.
I remember my father-in-law used to work in the garment district in New York.
For 20, 30 years he had his own business.
And from the minute China got into the World Trade Organization, there would be no tariffs on the garment trade. That job got sucked right away to China.
All across the United States, millions of people have lost their jobs – by some estimates as high as 7 million people.
This first “China Shock” has driven the rise of opioid use, the rise of populism, and anger at the establishment. Not just in America but across the West.
And this month’s Foreign Affairs article talks about a “China Shock 2.0.”
What they’re saying is China is trying to do that again.
Because their economy’s so weak, they’re trying to flood all Western countries with goods like electric vehicles and many other things.
And basically what that does is bankrupts American companies. It takes more jobs away from the United States, England, Germany, France – Western Europe, and shifts them over to China.
A lot of folks have asked me about tariffs and what I think about the electric vehicles China’s pushing in.
I think their electric vehicles are great. I’ve never been a tariff guy – I’ve always been a free trade guy…
But you have to protect certain industries.
For example, during WWII our car manufacturers made our tanks. Every country needs critical materials and critical infrastructure to manufacture in case of a war.
The China Shock is very, very real and I’m afraid that “China Shock 2.0” pushes China to do two things as their economy struggles:
First, China pushes to blow away Western economies.
Second, a weak economy with high youth unemployment like 25% makes the people of China stop believing in the Communist Party to do their job and employ them…
And when the Communist Party gets attacked – when the credibility of dictatorships and autocracies is challenged, they tend to go to war.
This is one of the major risks that we face in regard to Taiwan…
Because folks, let me tell you right now – it’s not in the mainstream press every day but there is a low-level conflict every day happening in the South China Sea right now.
China is crossing Japanese airspace. It’s ramming boats into Philippine boats. Raising all kinds of trouble out there.
So this is part of a continuation of discussions that I’ve been having with several members about the China threat.
China’s weak economy increases the chances they will point to an outside reason to go to war, just to deflect blame away from leadership over there.
So we are in very dangerous times in my view.
China has recently launched an attack against the heart of the U.S. financial system.
This attack could quite literally send retirees into poverty.
I recorded this video on what’s happening in the China fight and how to protect your family.
Watch my China video here for all the facts.
Then let me know what you think.
“The Buck Stops Here”
P.S. The Biden administration is hiding this news before the election.
Don’t get caught sleeping on this. Get the facts here.
