As a result, the Fed is forced to print money in order to pay for things. Federal governments around the world are under the illusion that they can grow money on trees, and if you can't do that, then use money printing machines.
This profligate printing of money has created inflation--year after year--over the past 60-70 years. National deficits have become a regular expectation of governments and administrations. If it doesn't run a deficit, something must be wrong. Keynesian economics has become an acceptable economic principle and dogma.
How did it all get to this stage? It was when Americans began favoring the granting of 'Most Favored Nation' status (MFN) to the Peoples Republic of China. Why? Shareholders of corporations saw an opportunity to make money hand-over-fist. Eyeballs enlarged upon seeing dollar signs from cheap Chinese labor.
First, despite the Peoples' Republic of China's failure in upholding human rights, and second, its Maoist authoritarianism, America and the West decided to close one eye and roll the dice. It took a chance despite knowing full well that the PRC could not truly turn into a democratic republic or genuinely take on free market capitalism.
Yes, Deng Xaio Peng did open the country up to producing for America and the West. When this happened, even Chinese citizens were wondering if Deng was genuine. Many did not trust the Communist was being real. Looking back decades later, this created millions of jobs for the poor of China. People flocked to the cities for work. Gradually, China became the number one industrial nation of the world.
It understood that using state-sponsored market capitalism and government-corporate partnership was the key to its economic success. However, China did not turn into a democratic republic. It did not become westernized in its human rights. Are Uyghurs in Xinjiang better off today? Do your research.
However, the middle-class knew that this was a compromise. In reality, compromise is not enough. Today, America and the West has been paying a very heavy price. It has suicided the stability of the middle-class and killed off millions of industrial jobs. This was the beginning of America's collapse.
America and the West have been hypocritical. On one hand it accepts the PRC's anti-democratic rhetoric and practices. On the other hand, it was antagonistic with Communism (Vietnam, North Korea). What was once seen as Leninist, Stalinist, Maoist and Marxist has become silently acceptable.
It attempted to enslave Maoist nations like China and used it to produce cheap goods. As a result, it created a top-tier competitor that has now becomes its main rival.
In reality, China no longer cares about what America thinks. It knows that its hypocrisy is just a facade. It has accepted China's autocratic style of governance. Americans can say all it wants but it is benefiting from its essential enslavement of people to produce its cheap goods.
Despite what American thinks or believes about what is not healthy for democratic and free nations, the cheap goods that China has been producing all these years have been a like cheap drug. The cheap addiction to cheap goods has given us a permanent high.
Our materialistic masses are permanently addicted and China knows it. The people are permanently hooked to this cheap drug and will not let it go. There would be serious withdrawal symptoms.
Socially, America has also forfeited its position as a leader-nation in the world. Countless families have fallen apart. Husbands and wives, mothers and fathers have separated and gone their own ways. Instability is now the norm. Society is essentially broken. Children and young people are sexually confused. Men no longer know how to be men and leaders of the family. Radical feminism has turned women against motherhood.
The population of white men and women are shrinking. If it weren't for new immigration, the United States would be rapidly shrinking. The USA is not alone. It has the EU by its side in this. Even some developed Asian nations are now shrinking fast, and families are falling apart.
Most American people do not believe inflation will ever be reigned in. Inflation has been increasing-- especially in the last year since Covid-19 pandemic and U.S. President Biden. Spending is hopelessly out of control. It cannot afford to pay for Covid expenses. As a result, western economies will worsen and hasten an economic collapse.
Like it or not, there will be a new world order. The next century will likely belong to China, then perhaps later, India. The cost of production of a basket of goods are still relatively low in comparison to Americans. There will be no way the United States will be able to compete with China.
China can only grow stronger--economically, socially, politically, industrially, and militarily. It is producing absolutely everything except for oil and food. China cannot make oil and cannot grow food. It does not have enough farm land or natural resources. Hence, it is continuing with its Belt and Road Initiative. It has no other choice.
China's growing worldwide influence is a result of its Belt and Road Initiative. It is making friends and gaining more political and political allies around the world. It is building infrastructures that some nations cannot build themselves.
China's military has been growing stronger year after year. It will eventually overtake the United States in the near future. China has built the strongest navy in the world. Its army and air force are not far behind. Its space program is nearly becoming a rival of NASA.
China's social influence worldwide is gaining ground. It still has no where else to go but up.
K.Anthony Sam
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