China is currently the second largest economy in the World where hundreds of millions of people have been lifted out of poverty and has become a powerhouse in our modern age. However, to achieve this, it has devalued its currency and run up enormous levels of debt. It now has to deal with this mounting debt and at a time it appears that its economic growth is beginning to slow down.
China’s economic reform was initiated by and credited to, then leader Deng Xiaoping in 1978, where he turned the country away from the old-style communism and the policy of collectivisation which had led to an impoverished and inefficient economy. The transformation focussed on agricultural reform, private sector liberalisation, industry modernisation and its opening to international trade.
In a speech today marking 40 years since China introduced major economic reforms Chinese President Xi Jinping has vowed that his country will not develop at the expense of other nations but added that the global superpower would not be told what to do by anyone. His exact words were;
“no-one is in a position to dictate to the Chinese people what should or should not be done”.
He added; “China would “never seek global hegemony” and would contribute to a “shared future for mankind”.
Now what are we to make of this. Well let’s be under no illusion here. China has, throughout much of its history played ‘the long game’. Whereas we in the West look at quarterly profits, China is more concerned with decades. The question we in the West have to face, is, can China be believed to want a system of co-operation and unity, and if so, should we participate?
Well ask yourselves these relatively simple questions (and there are many more than we are asking here):
- Why has China over many years thought it appropriate to steal the west’s Intellectual Property Rights?
- Why does China adopt such a heavy hand in cracking down on political dissidents?
- Why has it militarised islands in the South China Sea threatening its Asian Neighbours?
- Why is it helping major infrastructure projects in Asia and Africa saddling them with billions of debt, to the Chinese nation?
- Why is it keen to jump into markets and Institutions and Treaties that the US and other Western Governments have left?
- Why has it forged such close relations with what we in the West term a ‘Rogue Nation’e. Russia
- Why is it so keen to gain such vast levels of physical assets in the West, integrate itself into economic systems and play a leading role in Climate change when it is one of the worst offenders?
Can this Country, possibly soon to become Empire, truly be trusted? What should be the West’s reaction to it? Is President Trump right in imposing tariffs against it and more importantly will they work or will he back down? Have we reached the stage whereas the West’s very economic survival is predicated on the growth and successful development of China? How will its recent slowdown affect us, and could it lead to a World recession?
These are the sort of Political, Geopolitical and Macro Economic questions we should all be asking ourselves and attempting to find answers to. We are all involved in this channel because we are interested in gold and silver and precious metal investments and holdings. However, when discussing whether we should buy this coin or that bar or whether David Morgan is right in his forecasts, we must also not forget; who and what has probably one of the most significant impacts on our current and future holdings.
This channel is about gold and silver and precious metals but also about so much more. Our Inner Sanctum has only just begun but soon these topics will be discussed in full and by experts in the field. Not like the Young Turks who cover their partisan Democrat biased topics or like Fox News which blindly supports the Trump and Republican agenda regardless.
Yes it does matter whether you have enough gold and silver for the future and yes it does matter how you store or hold them, but the essence of our futures lie in a whole lot more – a greater awareness of our world around us, a greater appreciation of our and other’s motives, goals and ambitions and a greater understanding of what truly affects the way we live our lives and the inheritance that our children receive.
Should we trust China – You decide, and if not, what should we do about it – this and similar global questions are the core of our essence and hopefully it will become yours too.