The Chinese are not only fully awake but fully cognisant of the Anglo-Saxons’ wiles in the debt, and semiconductor sectors, as well as in honey, Hello Kitty and all others.
“Let China sleep. For when she wakes, the world will tremble”. Although The Dictionnaire Napoléon attributes this apothegm not to the great Napoleon (who loved a good bon mot almost as much as he loved a good battle) but to British actor David Niven playing the British Ambassador during the Boxer rebellion in the 1963 Hollywood blockbuster 55 days at Peking, it matters not.
China has arrived and she is shaking up the world to a degree not even her Japanese neighbour achieved during Japan’s recent years of economic glory. That being so, we must gauge the force of this Godzilla who, horror of NATO horrors, is not only brokering peace in the Middle East but, more to the heart of this essay, is honey-laundering atop a mountain of debt that has our NATO overlords sweating bricks.
First stop is honey. China has agreed to annually import some 50,000 tonnes of honey from sanctions-struck Iran, which needs every nickel and dime it can scrape together. Because the Iranian bee industry, as this informative article explains, has huge upside potential, I am happy China is helping Iran’s 140,000 beekeepers stay afloat. Whereas in Western countries, bee-keeping is generally a side product some farmers engage in, in Syria, and I imagine, in Iran, bee-keepers follow their nomadic bees about as they migrate from one locale to the other; as Iran, for example, has over four times the amount of flower species Western Europe has Iran, like Syria, is a veritable heaven on earth for bees. Although NATO’s Syrian war of extermination has severely disrupted Syria’s bees and Syria’s bee-keepers, this Sino-Iranian deal shows there is hope for the bee-keepers of Iran, Iraq and Syria and, for that, I could not be happier.
Allied to that, China, the world’s largest honey producer, is accused of dumping its own honey onto the international honey market and thereby undercutting the EU’s 60,0000 bee producers and, crucially, Ukraine, against which Western countries have no hope of competing, at least on price.
But, in China’s defence, it must be said that such activities are part and parcel of today’s international “rules based order” systems of trade. Here, for example, is a report of Irish farmers managing Saudi Arabia’s massive cattle farms. Global beef production has changed and one either goes for the quantity that Saudi Arabia and Bill Gates’ own mega farms represent or one goes for quality, for such things as Kobe beef, Irish whiskey and French luxury goods.
Irish whiskey, which is a much finer product than the cough mixtures sister Scotland palms off to an unsuspecting world, is important to our analysis as Ukraine’s rotund Ambassador to Ireland has demanded Ireland boycott its own Irish whiskey, boycotting being a tactic the Irish not only invented but excelled at. Leaving aside that ignoramus and all other considerations, if Ireland can grab back some of the market in China (and Russia) from the Scots, that would be a good thing because China, whether the CIA likes it or not, is the new Roaring 20s Japan.
That means the Chinese have a lot of money to splurge on Irish whiskey, French luxury goods and Hello Kitty. As the Japanese, during their golden years, accounted for over 70% of Louis Vuitton’s global sales, Irish whiskey producers, French luxury goods’ makers, Iranian beekeepers and the custodians of Japan’s kawaii culture cannot ignore China.
The Chinese pay for all their Hello Kitty merchandise, their Scottish cough mixtures and their French perfumes by exporting stuff, things like bullet trains that they reversed-engineered from Japan’s Mitsubishi Heavy Industries. Because China is growing so fast, there are opportunities galore there in everything from honey and Kobe beef to Volkswagen cars and aircraft carriers, all of which China, with its reverse-engineering hacks, can pay for with its export surpluses or by taking on some debt.
As with honey, so also is China a major agricultural producer in her own right and her farms range from the very primitive to state-of-the-art wonders that match anything the Netherlands, or even Bill Gates’ sinister mega-ranches have to offer. China’s main constraint in this respect is its waters are in the wrong place and it is not at all clear that the Qinghai-Tibetan Plateau, its traditional water source, will cover its future needs.
To tackle that and countless other development bottlenecks China, to accommodate the growing expectations of her countless masses, must invest heavily on a scale the world has never previously witnessed. And it must borrow heavily too as borrowing is a means of spreading investments one might not otherwise be able to afford over longer terms.
And that brings us to China: The Root of Madness, the CIA’s 1967 Cold War documentary “explaining” China through the CIA’s prism. But China must be explained through a Chinese, not an American prism and, if CIA spy Theodore H White, who produced that garbage, had bothered to read Chairman Mao, he would have come across far more references to ancient Chinese dynasties than he would to Karl Marx or Freddy Engels.
Because White’s Anglo-Saxons fret far too much about China’s debt policies rather than their own, we will now compare and contrast one with the other. Traditionally, there were two basic economic systems, the German-Japanese system where banks and borrowing were the financial engines of their sure but steady growth and the Anglo-American system where the riskier, roller-coaster stock market ruled the roost. China’s approach to debt, yet again, is best described as Japan’s on steroids.
In the United States, to coin a Napoleonic bon mot, debt has gone from the sublime to the ridiculous. The vultures’ Klondyke that was payday lending, where the Anglo-Saxon poor, living from pay cheque to pay cheque, paid unsustainable loan-sharking rates to their creditors, has been replaced with predatory smart phone apps, where poor Americans are now reduced to buying their meals on credit and paying through the nose for them, as Uncle Sam catches them in micro debt traps from which there is no escape.
At the macro international level, African and other nations have long been stuck in a similarly slick debt trap they too have no means of escaping, not least because the IMF and the World Bank, their supposed saviours, were tasked ab ovo with keeping them enslaved to Uncle Sam and his Anglo-Saxon partners in crime.
Whatever one may think about the Bible, Proverbs 22:7: gets it right when it proclaims that “The rich rules over the poor, and the borrower is slave of the lender”. That has certainly been the case in Africa, as it is now in tiny Ireland, which was forced, almost at gunpoint, to take on over 40% of the EU’s debt, and Ukraine, which is currently fighting Russia on a maxed-out credit card.
That credit card will have to be cleared by Ukraine handing over its crown jewels to BlackRock, Vanguard and its other creditors and by paying interest on the mountains of debt it has racked up to fight its unwinnable war. Exxon-Mobil, Chevron, Halliburton and Uncle Sam’s other seasoned vultures are already in advanced discussions to run Ukraine’s energy industry and the leprechaun vultures of Vichy Ireland have pledged to exploit (“rebuild”, as they call it) Ukraine’s Rivne Oblast region as part of their reward for propping up Zelensky’s rump Reich and sniggering at those tens of thousands of young Ukrainians slaughtered to make these scams possible.
Rustem Umerov, who heads Ukraine’s State Property Fund (SPF), claims there are more than 3,500 companies which are listed as state-owned, with almost 1,800 of them bankrupt and non-functional. The list for a privatisation fire-sale to Zelensky’s Western allies includes distilleries and grain elevators, which could be of interest to investors, as well as hundreds of abandoned facilities, which will be given away for nickels on the dollar. Umerov is hoping to earn over $400 million by selling an elite set of companies ranging from a fertilizer producer to utilities, smelters and an insulin maker. Ammonia maker Odessky Pryportovy Zavod, titanium producer United Mining, Zaporozhye Titanium-Magnesium Plant, insulin manufacturer Indar, and power generator Centrenergo PJSC will be among the first to be sold at knock down prices and up to $200 million of state-owned land is ear-marked to follow shortly afterwards. Because Russian speakers have no rights in Ukraine, the Demurinsky Mining and Processing Plant, which develops reserves of titanium-zirconium sands and which is owned by Russian tycoon Mikhail Shelkov, is also scheduled to be sold. Rusal’s Nikolaev alumina refinery is also scheduled for “privatisation”, as is the confiscated property of Russians Vladimir Yevtushenkov and Oleg Deripaska.
The Chinese system, with its supposed Muslim, Tibetan, Hong Kong, Taiwan and Hello Kitty issues, operates a trifle differently from Zelensky’s Ukrainian gangsters and there is no real point in getting our Chinese-made knickers in a twist about any of it. All of NATO’s faux Chinese concerns are blowbacks from the growth of China‘s economy and the end of the easy money that flowed from America’s property and dot.com bubbles. Because Easy Street is over, the Yanks must now re-discover The Zen of Working Hard even though, like their European vassals, they are no longer up to the task. The Chinese, like the Japanese workers of Toyota or the Koreans of Kia Motor Works, just plod on and on, accumulating wealth, Iranian honey and other delights for their children and, given her demographics, her children’s children. And good on them.
This is not to say that every Chinese, Japanese or Korean citizen has been a winner but their systems have been designed to give the greatest possible opportunities they can to the greatest number of their citizens. Though the Chinese love gambling, they have not followed Uncle Sam’s casino capitalism model but, like the post-War Japanese, they have instead worked hard and likewise pulled themselves up by the bootstraps.
And, just as Japan was once the major player in long-term sovereign debt, so now has that poisoned chalice passed to Beijing. If Pakistan, Sri Lanka, Mozambique, Zambia and Grenada wish to escape from the debt burdens Uncle Sam has saddled them with, they must look to Beijing. And while China has played hard-ball, they have been nowhere nearly as harsh as Elliott Investment Management and other American critics of China that picked Africa cleaner than might a flock of ravenous vultures.
But what of China, with its sweet tooth for Iranian honey, its Scottish cough mixtures and its Hello Kitty regalia? The Chinese government is tasked with allowing its citizens enjoy such fruits of their labour, whilst maintaining its armed forces to defend its citizens and instituting a system that allows China earn the wherewithal to pay for all such frivolities. Given China accounts for a fifth of the world’s population, that is a huge task, human resource and financial management on truly Biblical scales the world has never previously witnessed.
And, as with Japan during its golden years debt, albeit with Chinese characters, is an integral part of that process. Though personal, institutional and government debt in China are all huge, should we really be as concerned as our narcissistic Anglo-Saxon overlords are about it?
I think not. Debt, the Anglo-Saxon economists tell us, offers us more choice, the ability, for example, to get a mortgage loan on a house, rather than forever renting or living in a roadside wigwam. Debt, lots of it, allows Americans to send their kids to College which, depending on what they study, may or may not be a good investment. Of course, it also allows the Yanks to buy lots of Chinese goods from Walmart but let’s just take that as a given of Americans’ consumer fixations.
All the more so as China is also buying into the consumer craze. Chinese citizens are even hiring American women to bear their children which the CIA’s Heritage Foundation believe is a national security risk. Although it is fine and dandy for Americans to rent Ukrainian wombs, the burgeoning Chinese-American “rent-a-womb” industry, in which ageing Chinese couples draft fertile American women to give birth to offspring with U.S. citizenship is, they say, not playing to the CIA’s rules based order, whose lack of logic China’s economic ascent has placed under immense strain.
Surrogate babies are just one symptom. America is not only one gigantic debt mountain but its debt markets dwarf its stock markets, which are the world’s biggest. The Japanese (again) long saw this and that there were, for them, easy pickings to be had by lending to American states and cities on the correct presumption that the U.S. government would not allow those states and cities to go bankrupt. The Japanese who, like the Koreans and Chinese, are diligent savers, have been keeping the U.S. economy afloat for decades now with their soft loans which, like all loans, must be paid back eventually.
But what of the Chinese? U.S. Secretary of the Treasury Janet L. Yellen has acknowledged the threat China poses to U.S. hegemony (the rules’ based order as the Anglo Saxons call it) and the need to contain China by sanctions, by controlling intellectual property rights and by bad-mouthing them in NATO’s media over human rights and the plight of panda bears.
This is, again, a re-run of America’s post oil crisis attack on Japan because Japan has the art of car-making down to a tee. There is simply no way the Americans, the Germans or the Scandinavians can compete with the Japanese auto makers or, indeed, the Chinese, who are not only the new Japanese but who have entire armies of engineers improving the efficiency of cars and everything else they produce.
And that includes Taiwanese microchips, which Uncle Sam clings to as a drowning man might cling to a straw. As no country, from the Sumerians of antiquity to the Anglo-Saxons of our own era, has managed to monopolise a particular technology forever, Taiwanese microchips are, as the late Chairman Mao might have put it, a competitive paper tiger, childish Japanese origami that will vanish with a gust of divine wind.
Uncle Sam thinks differently and has ordered its Taiwanese and Korean colonies to stop selling semiconductor chips to China. America has also demanded that German companies Merck, and BASF, which supply Asian chip-makers with critical chemicals for production, follow the example of the Dutch who, on the Yanks’ orders, have severely restricted exports of their semi-conductors to the Middle Kingdom.
Though NATO, like Samson of old, hopes these export restrictions will cripple China’s ability to develop advanced technologies, as well as its capability to produce semiconductors, the tide of modern history, where competitive advantages cannot be held for long, suggest this pathetic boycotting will fail. Despite China being Berlin’s most important trading partner for the seventh year in a row now, because Germany remains a grovelling slave to America, we can assume the Pentagon will get their way here and further damage Germany (and the Netherlands). Talk about global supply chain hara kiri by those emasculated oafs!
NATO should, of course, have let China’s semiconductor industry sleep. Beijing has launched a national security review into Micron Dram, one of three dominant players in the global memory chip market alongside South Korea’s Samsung Electronics and SK Hynix. As with Louis Vuitton, so also is it with Dram, where mainland China and Hong Kong generates 25 per cent of its $31bn annual revenue. If Korean President Yoon Suk-yeol accedes to Uncle Sam’s request to ban the sale of their microchips to China, then he is even more stupid than any Irish sniveller who boycotts Irish whiskey on the word of the obese Ukrainian grifter, who has the gig of loud-mouthed Ambassador to Vichy Ireland.
Although the Pentagon believes that their competitive edge in microchips will stave off the Chinese dragon, that is not where the true fight is. The fact of the matter is the United States and its puppet allies long ago exported the whole logistics chain to China and thereby made China the world’s logistical hub, its Middle Kingdom if you will. Not only is that almost impossible to undo but there are over a billion Chinese who have a vested interest in maintaining that emerging status quo that so upsets our Anglo-Saxon friends.
Gold, by way of illustration of that latter point, is the easiest of metals to work with and it is the first metal mentioned in the Bible (Genesis 2:11-12). And, though gold jewellery is almost universally popular, the North Italians are the world’s best at fabricating gold, simply because they have long held the logistical hubs, even from long before Romulus and Remus founded Rome.
Although American puppets like Ursula von der Leyen can threaten hell and damnation on the Chinese economy, German and French automakers are making more coin by producing cars in China than they are in Europe. Why? Because China has the logistical hubs and one part of China is not squabbling with another for the right to produce hub caps, as the various European states do with each other. Europe is an organisational mess and China, as with Japan’s Hello Kitty and auto industries, is not.
And, when we ask whether the Biden family’s control of the semiconductor industry can stop China, we have to conclude that it cannot and, again, Japan shows us why. When the Europeans first reached Japan, they brought muskets with them to The Land of the Rising Sun where such a technology was unknown but where the Europeans were amazed that Japanese steel was far superior to anything they had previously encountered in Borrell’s European garden.
The Japanese, who had never previously clapped eyes on a musket, not only solved the crucial European problem of how to stop rain destroying the gun-powder but, within six months of first clapping eyes on them, were exporting muskets throughout the rest of Eastern Asia. Following the 1904/5 Russo-Japanese war, the Japanese determined that they would have to match the German Leica company in terms of lenses. Not only did the Japanese match them but they far out-paced them in less than half of the time they had allocated to that objective. If the Americans think they can stop the Chinese semiconductor tide, they best import some more Chinese or Japanese brains because it is plain as day they have a critical shortage of grey matter, as well as a profound ignorance on how inter-connected the intermediate industries of China, Korea and Japan are.
The Chinese economy, their national pay packet if you will, continues to increase, by an impressive 4.5% in the first quarter of 2023, as it happens, meaning it is in a better position to pay off or roll over any outstanding debt and, of course, to buy more whiskey, more French perfumes and more Hello Kitty kitsch.
Yankee land, meanwhile, just prints more dollar bills and spends a staggering $500 billion annually servicing their debt, even as they imagine China would not develop a debt market of their own and thereby sink the American smoke and mirrors economy. For the fact of the matter is China’s debt is not a problem and will not be a problem as long as China can manage it. And so far, as with Japan, there is no sign of a major crisis. For the Good Ship China, it seems to be steady as she goes and to hell with Moody’s and the other partisan naysayers.
To illustrate China’s strength, let’s once again turn our eyes towards Japan, whose currency is the yen. Upon hearing that yen meant circle in English, American war lord Douglas MacArthur decreed that there would be 360 yen to the Yankee dollar. It is currently trading at 135 to the dollar, which is well within its recent trading band. The Chinese yuan is at 7 to the dollar and it too is within recent trading bands. China, however, is in a much stronger position than the U.S. or any of its satrapies to push the yuan, and therefore the dollar, any way it pleases. The boot is, in other words, increasingly on the Chinese and not the NATO foot.
Here, in conclusion, is 1900 footage of a French damsel in Saigon throwing Vietnamese children grain, like they were foraging chickens. The Anglo-Saxons should know that those days are, thanks to the armed might of South East Asians and their allies, gone and, thanks to the economic might of those countries, they are not returning. The United States, together with its German, Dutch and other vassals, best acknowledge and live with that fact or be prepared to take a turn at foraging themselves when their own stupidity collapses their own side of the global economic system. As for the Chinese, they are not only fully awake but fully cognisant of the Anglo-Saxons’ wiles in the debt, and semiconductor sectors, as well as in honey, Hello Kitty and all others.
By Declan Hayes