Two Paths Forward with China – The Good and The Bad

Since a few things became clear to me last year, I’ve consistently forecasted a significant worsening in U.S.-China relations and remained adamant that all the happy talk of trade deals and breakthroughs is just a lot of hot air. What first appeared to be a unique quirk of Donald Trump has morphed into bipartisan consensus in Congress, and clear signs have emerged that the general public has likewise become alarmed at China’s growing global clout.

Due to this, as well as a litany of other factors outlined in prior posts, it’s highly unlikely the current trajectory will reverse course and result in a return to what had been business as usual. Instead, we’re probably headed toward a serious and historically meaningful escalation of tensions between the U.S. and China, with what we’ve seen thus far simply a prelude to the main drama. If I’m correct and the ship has already sailed, we should focus our attention on how we respond to what could quickly become a very dicey scenario filled with heightened emotions and nefarious agendas. There’s a good way to respond and a bad way.

In our individual lives we face various daily challenges, but every now and again something really big hits us, a personal crisis of sorts, and how we respond determines much of our future. The same thing happens to nation-states, particularly in the current world where virtually all human governance is structured in a highly centralized and statist manner. When such an event hits nation-states the public tends to be easily manipulated into a state of terror and coerced into granting more centralized power to the state, an unfortunate state of affairs that accurately summarizes the reality of 21st century America. With each crisis, the empire has grown stronger, the public weaker, and two decades later we find ourselves in a neo-feudal oligarchy where one half of the public is at the other half’s throat for no good reason. This is what happens when you respond poorly.

Three major crisis events have rocked the U.S. this century, and much of the public has embraced, or at least accepted, the worst possible response in all cases. The first was the attacks of 9/11, which officially ushered in the modern national security surveillance state and all but obliterated the 4th amendment. The second was the financial crisis, where the response from Bush/Obama was to bail-out the criminals, destroy any semblance of the rule of law by jailing zero Wall Street executives, and to ensure the Federal Reserve (and mega-banking institutions in general) became stronger and more powerful than ever. Finally, there was the shock election of Donald Trump. Rather than take his ascendance as a warning about centralized power, the faux “resistance” has been obsessed with removing him, celebrating intelligence agencies/military aggression, bemoaning free speech, and rehabilitating George W. Bush. Three crises, three horribly destructive responses. This entire century has been an unmitigated march in the direction of stupidity.

I’ve become convinced the next major event that’ll be used to further centralize power and escalate domestic authoritarianism will center around U.S.-China tensions. We haven’t witnessed this “event” yet, but there’s a good chance it’ll occur within the next year or two. Currently, the front runner appears to be a major aggressive move by China into Hong Kong, but it could be anything really. Taiwan, the South China Sea, currency, economic or cyber warfare; the flash points are numerous and growing by the day. Something is going to snap and when it does we better be prepared to not act like mindless imbeciles for the fourth time this century.

When that day arrives, and it’s likely not too far off, certain factions will try to sell you on the monstrous idea that we must become more like China to defeat China. We’ll be told we need more centralization, more authoritarianism, and less freedom and civil liberties or China will win. Such talk is nonsense and the wise way to respond is to reject the worst aspects of the Chinese system and head the other way.

If you’re horrified by China’s human rights abuses, then push for an end to murderous U.S. wars/coups abroad based on lies. If the Chinese surveillance panopticon concerns you, we should move in the exact opposite direction with less corporate and state surveillance. If China launches a state-sanctioned digital currency system designed to monitor, and if desired, restrict transactions, we should reject this and embrace open, decentralized and permissionless systems like Bitcoin. We should fight lack of freedom with more freedom.

Given our track record this century, I’m skeptical Americans will respond in a positive and productive way to increased tensions with China, though I hope we can finally face a challenge without cowering in fear and surrendering more freedom in order to feel safe and powerful. I hope we can recognize that empire is not an asset, but a liability. That empire strengthens the state and weakens the public. I hope we can be wise enough not to embrace further authoritarianism to defeat authoritarianism. For once this century, I hope we can respond in a thoughtful and intelligent manner.

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– Michael Krieger

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20 thoughts on “Two Paths Forward with China – The Good and The Bad”

  1. There was a lot “we” written in your post but I can’t remember anyone asking for my opinion or input. There is an us and a them/they.
    The american people are mere spectators in this government. Virtually nothing the people want comes to fruition. TPTB march to their own beat, irrespective of our thoughts or concerns. BTW, I agree with what you said otherwise.

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    • I share your view. The people did not respond to these crises, those in power did. Talking points were crafted and the media used to manage public opinion. I specifically recall polling be *against* TARP…did this stop Congress and Bush2 from enacting it? Google the Princeton study which demonstrates voters have miniscule influence over public policy. The responses to these crises were not miscues…they were a intentional. They weren’t driven by popular opinion…they were imposed on the populace. To speak of a collective “we” as in the USA (government and its people) is now preposterous.

  2. Not one of your best Michael. Apart from the forlorn hope that Americans might react in an un-American way next time, you don’t need to study China to find examples of authoritarianism that you could learn from.
    When people accuse others, they only reveal their own character.

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  3. Michael – given your wealth/education, it’s not likely you’re exposed to average Americans who are completely ignorant about geo-political affairs. In fact, they’ve been zombified by the corporate media that spews out lies every day while refusing to spend even a millisecond on growing poverty, near-serfdom jobs, and the criminals of Big Pharma, Oligarchs like Bezos, Gates, Jamie Dimon – the list is endless.
    We appreciate your concerns about citizens, but The Empire is reaching its Rubicon with NO chance of ever reforming itself.
    Dr. Michael Hudson is our best (honest) economist. He’s also a historian of how empires fall. Giovanni Arighi published books, too, on this phenomenon. Please read their works.

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  4. What the hey? Sometimes we fall back to previous thought patterns but usually quickly realize the error. Way back in late 1976 the film ‘Network’ was released and Ned Beaty delivered a stunning soliloquy “…you are an old man who thinks in terms of nations and peoples…” China and the USA are ultimately controlled by the same entities and their owners! Kurt Nimmo just nailed it at his blog.

    These peoples are now on the verge of forever coming under the dictates of a one world government run by a few in their own interests. Controlling the entire human economy and all resources. This is already being done under well connected but disparate institutions like the BIS, IMF, UN, OCED and a seeming multitude of other organizations and NGOs.These few think of all the world’s human population as a resource and NOT as human beings with a high level of consciousness. Rather with a attitude identical to any slave master from anytime in history.

    As a refresher here is that clip from the film ‘Network.’

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  5. Agree that the next “event” will involve China and it will be fairly easy to pull off with their current bogeyman status. Both the red/blue teams agree that China is bad. Steve Bannon is probably the chief China basher at the moment, so the MAGA crowd would be on board. Traditional red teamers are always up for demonizing an enemy and since Obama, blue teamers have become much more obedient warmongers. Everything’s already set up for this.

    All this China hatred is silly, but that’s beside the point. Our two huge problems are the Fed and the MIC, which China is obviously not responsible for. Our elites don’t like China because they’re a growing economic and military threat, meaning they are not completely under our control. Any semblance of a multi-polar world is unacceptable to us, even though it would be beneficial to ordinary Americans. The fall of the USSR made us far more tyrannical at home and abroad.

    I’d like to think Americans can see past media induced hysteria, but our track record is abysmal. With Trump beating the drums, even a lot of the America-first crowd would fall in line. Anyone asking questions would be labeled a crazed conspiracy theorist (of course) by the MSM and a traitor by the MAGA people. Beware when red and blue hold hands!

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    • “All this China hatred is silly”. Seriously? Fentanyl, primarily shipped in from China is responsible for the death of perhaps 50,000 Americans annually. Is that silly? Politicians are lining up to score sweetheart deals with China that further demolish manufacturing here in America. Former Secretary of State John Kerry pushing for climate change regulations down our throats, while China gets a pass as we silently observe them create more coal powerplants. It would be silly to kill the profits from Chinese business deals when those in DC are making such sums at the expense of middle America. Silly, indeed.

    • Steve, that’s a confused post. I didn’t realize China was forcing us to do deals with them. If you’re concerned about middle America, perhaps you should direct your ire at the people selling it out, rather than the people on the other end of the agreements. I also hope you realize the destruction of this country is a combined red/blue effort.

      We can’t claim to care about fentanyl after facilitating the heroin boom in Afghanistan for nearly 20 years, nor after pushing opioids on the public Purdue-style. They even air commercials promising relief for opioid-induced constipation during football games! Plus our vaunted War on Drugs is an obvious sham meant to curb freedoms and introduce elements of a police state rather than combating actual drug usage, which is why it never succeeds in its stated goals.

      Our problems are caused by people here, not some inscrutable foreigners we’re taught to distrust. Scapegoating only serves to obfuscate the issue and mislead the public, which explains why our media happily plays along.

  6. Michael, the word you are looking for is;

    SECESSION.

    SECESSION will free millions, perhaps billions, of people from The FED & the MIC.

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  7. If America, it’s people & commander in chief were serious about holding China’s feet to the fire, all they would have to do is put a 10,000 percent tariff on EVRYTHING UNDER $20 !! .
    Granted this would put WALLMART , DOLLAR TREE, DOOLAR STORE , and many other merchants who peddle plastic crap that usually ends up in landfills ( a month later ) out of business.
    How serious are we as a populous ? The major trade with China is not “ high end electronics “ but the mountainous heaps of garbage they are burying North Americans in every single day !
    Want to get serious with China … simply look inwards and ask the question , am I ready to do without all this crap ?? I think you’ll find the answer to be a resounding NO !! … such a sad reflection on where we stand as gluttonous consumers of useless crap !!

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  8. Elizabeth Warren wants to do away with the electoral college?? What the hell is she thinking?! Has she learned nothing from Trump’s election, the screaming of the disenfranchised flyover deplorables? Someone should tell her to delete Hillary’s contact info and block her number. This is not a winning strategy. We should be grateful that Warren is so misguided, since she strikes me as more politician than leader. Not what we need right now.

    Yes, like @Steve, I was a little unnerved by the repeated use of the “we” term used to assign a shared responsibility for our current predicament.

    You’ve all heard the expression “garbage in, garbage out”, a well-known software maxim highlighting the fact that one cannot expect a high-quality, meaningful result when faulty data is used as input. That said, the vast majority of Americans are still trapped in the Matrix, our banking/oligarchic operating system that foists on the public a simulated democracy, simulated knowledge via corporate media and education, and simulated morals/ideals via pop culture. Garbage In -> Garbage Out!

    I’m not advocating victimhood here, but shouldn’t the lion’s share of responsibility be assigned to our leadership? Or should be expect the average citizen to produce a high-quality result despite being fed a false reality as input? What we need is a new operating system, not an upgrade. I’m thinking 1789. Anyone with me?

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  9. 9/11: false flag or inside job to setup the dictatorship
    so called 2008 crisis: totally created second step towards dictatorship
    2016 elections: and Trump: next step?

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  10. Tengen, what Trump should have done was inform Jinping that unless the Chinese stopped infringing on US owned patents and IP, then all Chinese owned patents and IP, were fair game, and the US Patent Courts would not enforce them if they were stolen by US individuals and companies.

    Instead, he decided to start with the “Trade War” tariffs approach.

    Jinping is a neo-Maoist. He will eventually sink his own ship.

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  11. Excellent assessment, Michael, thank you and I admire your optimism that USA will respond “intelligently”. I believe that 9/11 was the catalyst in USA for a national trauma and since then America has been suffering the effects as described:

    “If you’ve experienced an extremely stressful or disturbing event that’s left you feeling helpless and emotionally out of control, you may have been traumatized. Psychological trauma can leave you struggling with upsetting emotions, memories, and anxiety that won’t go away. It can also leave you feeling numb, disconnected, and unable to trust other people. When bad things happen, it can take a while to get over the pain and feel safe again”
    Source:
    https://www.helpguide.org/articles/ptsd-trauma/coping-with-emotional-and-psychological-trauma.htm

    America needs group therapy on a nation scale. My book, “The Financial Jigsaw” Part 2 describes some of these effects and what to do about it. A free PDF of the Introduction is available on request to:
    [email protected]

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  12. Since the start of the trade war I’ve believed it’s been intended as a soft take down of China. For 30+ years the plan was to go soft on China and let them develop hoping that they would ease up and become more like Hong Kong or Taiwan as the effect of capitalism worked its magic. Most Favored Trading Nation status, exemptions from environmental rules as a developing country, easy on the WTO rules, overlooking technology theft, etc.

    Then they grabbed the Spratly Islands and I think the US woke up. China has only become more emboldened with its soft colonialism in Africa and other susceptible, developing areas like Sri Lanka. To some in the US, China must appear to have an uncanny similarity to Imperial Japan circa 1935. And when I drive by the Chinese Consulate I see the Falun Gong protestors there and am reminded of the stories of organ harvesting from political prisoners.

    The Democrats haven’t said peep about Trump’s trade war despite it being the single largest policy issue in his presidency. So they’re fuly on board with it and that means the security organs are too. No one in the US government is under any illusion that China is now a serious threat. If it is a face-off then China will lose for sure. There’s a handful of reasons but the most predominant is their currency. It’s basically worthless as you are forbidden from buying anything of real value with it.

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