The Coming Collapse of Communist China

jcollinsCultural, Economics, FREEPOM, Geopolitical74 Comments

JC Collins

A few years following the collapse of the twin towers the world was almost unrecognizable from what it had been at the end of the 20th Century.  After grunge, techno, the explosion of websites, Yahoo, Amazon, Supersize Fries, and Bill Clinton, anything seemed possible. The lackluster years of the late 1990’s ended with the birth of the music sharing platform Napster and an unremarkable Y2K event.  The future strangely seemed both mundane and hopeful. Everything changed with the bombing of the U.S.S. Cole in Yemen’s Aden harbor on October 12, 2000.

At the time, I was in Las Vegas attending the largest mining expo in the world.  News of the Cole bombing quickly spread and my first thought was that it was only the beginning.  There were those of us who understood on some intuitive level that something bigger was about to happen, but we couldn’t understand the full magnitude of what was to come.

On the morning of September 11, 2001, a mining co-worker, who was meant to be flying up to Canada from Dallas, called to inform me he wasn’t going to make it as all flights were grounded.  Planes had crashed into the World Trade Center.  That was how I heard about the largest news event since the fall of the Berlin Wall and the collapse of the Soviet Union.  Most of us either raced home or to the nearest boardroom with a television to watch the unfolding events on CNN.  Like everyone else that morning, we knew in our guts that things would never be the same.

Three months after those events, on December 11, 2001, China became a member of the World Trade Organization (WTO).  The argument was that allowing China to enter the WTO would encourage Beijing to adopt liberal economic and democratic norms.  This of course would never happen.  By 2004 Chinese infrastructure projects were using up so much steel and rubber that the cost of large mining trucks and the massive tires which fit on those trucks had skyrocketed.  It was said that China was building the equivalent of three Chicago’s every 12 months.

Within just a few years after the return of Hong Kong to Chinese rule everything had completely changed.  The World Trade Center was gone, China was a member of the World Trade Organization, America was at war in the Middle East, and the China miracle was being propelled by the expansion of American debt.  That’s how fast the world had been transformed.

The role of China becoming the worlds largest creditor nation as America was becoming the largest debtor nation was not an accident.  It was by design and was needed in order to keep the global system of banking and commerce moving forward.  The Asian Currency Crisis of 1997/1998 signaled that the growing imbalances and existing exchange rate arrangements with the US dollar were beginning to cause massive liquidity constraints.  It became clear that an alternative arrangement would be required, but it would take another decade, and crisis, before the monetary policymakers in Beijing began to understand the financial predicament, they were in.  The development of the New Belt and Road Initiative was a possible solution.

China welcomed the opportunity to expand its own credit markets and modernize the country in a fraction of the time it took Western nations in the last century.  The expansion of their own domestic credit market, and membership in the WTO, allowed China to take on ever more increasing amounts of American sovereign debt.

The basic mechanics revolve around the role of the USD as the primary global reserve asset and China’s acquisition of those dollars through balancing trade accounts, or balance of payments. Those dollars need to be invested into dollar-denominated securities, or Treasury bonds, in order to maintain the exchange rate arrangement between the renminbi and dollar.

The major defect in the global monetary framework is that the dollar supply must continue expanding in order to meet global liquidity demands for a growing global economy. The problem is that the dollar is not a true global currency and is in fact the domestic currency of one nation used in a global capacity.  The expansion of the dollar money supply, or excess dollars, through this trade mechanism, must not be allowed to return to America’s domestic economy or it will cause financial trouble in the form of uncontrolled inflation.

China uses these dollars to both purchase US Treasuries and expand its own domestic currency supply.  Taking on, in turn, the inflation created by the expanding dollar money supply.  Since China’s membership into the WTO its foreign exchange reserve account has exploded with dollar-denominated securities.  These foreign exchange reserves have also increased from 16% of China’s GDP to well over 45% of total GDP.  Total China debt-to-GDP ratio has doubled to 300% in the same timeframe and its total public and private debt now rests around $34 trillion. This is a solid indication that taking on US debt has allowed China to expand its own economy through multiple avenues

Consider that the total U.S. debt is around $22 trillion with a debt-to-GDP ratio of 105.4% as of 2017. It is expected that this number should continue to decrease as overall U.S. GDP continues to grow under the Trump mandate.  Compare that to China’s debt-to-GDP ratio of 300% and who do you think is in the stronger position?

To make this point, on Monday, June 24, 2019, a U.S. judge found three Chinese banks in contempt for refusing to comply with subpoenas in an investigation into North Korean sanctions violations.  The three banks are under threat of now having their U.S. dollar accounts terminated by the Justice Department or Treasury Department. Cutting these Chinese banks off from the U.S. financial system.  All three banks immediately suffered stock price drops. Once again indicating who has the stronger position.

This is just a basic summary of the monetary mechanism which exists between the world’s largest debtor nation and largest creditor nation.  All other monetary and financial metrics, including global imbalances and liquidity shortfalls, are squeezed in-between these to polar positions.  Nothing will change or improve within the global monetary system without a change to this arrangement.

After the financial crisis in 2008 the Chinese started calling for an alternative to the USD as the global reserve currency.  The position from Beijing was that a viable alternative could be evolved from the Special Drawing Right (SDR) of the International Monetary Fund (IMF).  The SDR is a claim on currency and not an actual currency itself and would not provide enough liquidity to meet global demands in a reserve capacity.  The claim is for currency which makes up its value composition, or otherwise called basket of currencies.  Back in 2009 these currencies were the USD, British pound, euro, and Japanese yen.  China was promoting the idea of adding the renminbi to the SDR composition to begin the transformation of the SDR into a true global reserve asset.

Throughout the years I wrote extensively on this topic and covered much of the ground of what a transformed SDR would look like and how SDR denominated “substitution accounts” could be used to exchange excess USD reserves for SDR reserves.  Eventually the renminbi was added to the SDR composition and it appeared that China’s move on the IMF and the SDR could very well be the direction the monetary world moved.

(Note:  There is a lot of confusion about the terminology around the Chinese currency.  Some refer to it as the renminbi or RMB, while others call it the yuan.  It is both.  RMB is the name of the actual currency while yuan is the unit of measurement.  It is the same as the relation between the British Sterling currency and its unit of measurement the pound.  In America the name dollar is used for both.  The RMB has both offshore and onshore currencies which only complicate matters further.  The offshore RMB was meant to protect the Chinese domestic market from foreign speculators as it attempted to internationalize its currency.  This strategy has failed and will now be one of the contributing factors to the collapse if China’s banking industry.)

Another event which happened after the last financial crisis was the birth of Bitcoin (BTC) and cryptocurrency.  Bitcoin flew under the radar for years as it built up a large tech following, and its value grew.  It was, for all practical purposes, the maximalists answer to corrupt banks and the growing world debt problem.

Over the last ten years the cryptocurrency market has expanded as hundreds of new digital assets were born and proposed use cases for those assets spread.  BTC value exploded making millionaires and billionaires in what seemed like overnight.  Newcomers poured into the crypto market hoping for quick gains and wealth.  Eventually somewhere around 70% of Bitcoin mining moved to China in search of low energy costs.  Technically speaking, China controls the majority of the Bitcoin network’s collective hashrate.

China also accounts for a large volume of BTC trading.  This volume increased as Chinese exchanges lured investors with 0% trading fees, which the People’s Bank of China (PBOC) would later regulate against.  This forced some trading volume from the Chinese market and it had a modest impact on capital outflows from China, which was the core objective for Beijing, as some of China’s wealthiest private business interests were moving capital offshore and around the world, in order to avoid the credit bubble which was forming in the mainland.  These interests moved a large percentage of it into real estate markets around the world, like New York, Vancouver, San Francisco, Sydney, and Toronto.

It is important to note that these real estate markets are now bloated, and valuation reversals have already begun. This is also true for mainland China markets as well.  Maybe even more so.  We are starting to see Chinese money being pulled from these “offshore” markets and this money could very well start finding its way into the Bitcoin and crypto markets from both inside and outside China.  Central bank policies and stumbling bond markets would normally provide the alternative to real estate but we are entering a period where the perfect situation is developing for capital to flee real estate, avoid bond markets, and pour directly into the crypto market, with some overflow moving into gold and other precious metals. Stock markets may move marginally higher during this transition, but those markets are in the high range of valuation (and under enhanced risk) while crypto is still in the early phase of adoption and remains in the low range of valuation for the time being. This will change substantially in the next 6 to 12 months as the developing fundamentals of the crypto market take root and expand across investor demographics and industry sectors.

Outside of monetary and financial concerns, China also has deep cultural and political fault lines which will move suddenly and dramatically under the right conditions.  The Communist Party of China (CPC) maintains tight control over these fault lines and uses technological surveillance tools to keep the different cultural fragments aligned with Party policies.  But as the recent million plus protests in Hong Kong showed, the people have means of organizing and planning while remaining invisible to those tools.

More worrisome for Beijing is the divisions within the CPC itself.  There is still a vast number of party members who are past President Jiang Zemin faithful’s and don’t agree with the direction which President Xi Jinping is taking the country. These divisions are magnified when you consider that there is also a fragmentation between the CPC and the People’s Liberation Army (PLA).  There are many crossovers between the CPC and the PLA but when the fault lines begin to move the PLA will take on a much different scope then it currently maintains.

The PLA controls much of that Chinese business interests both inside and outside China.  But it isn’t the only one.  The is also the China Poly Group Corporation which owns hundreds of subsidiaries in such diverse industry sectors as construction, real estate, resource extraction, fishing, military and entertainment firms.  Then there is the China International Trust and Investment Corporation (CITC) which runs in the same sectors.  All support one another but will also compete with one another given the right situation and aligned interests within the CPC itself.

Early in 2019 President Xi Jinping was appointed “President for life” which to the informed analyst is a clear indication of weakness as opposed to strength.  Such a move was meant to stifle any opposition from within China to Xi Jinping’s rule and avoid any fragmentation of the CPC around the cultural or business fault lines.  A strong case can be made that this appointment was the first step towards the collapse of Communist rule in China.

As the recent protests in Hong Kong have shown, Beijing is not as strong as many would have considered.  America under the Trump administration is taking a much more pro-Taiwan approach and is quickly strengthening relations.  China, for all its projections of strength and stability, has never moved to take full control over Taiwan because it knows that such a move would unravel the precarious relationships and fault lines within the mainland’s political and business interests.  These relationships remain to such a level that both Hong Kong and Taiwan are beginning to benefit from the U.S. trade war with China as companies move from the mainland.

The New Silk Road Initiative, or otherwise called the Belt and Road Initiative (BRI) strategy started by China in 2015 is now encountering problems as countries which joined the project and incurred massive amounts of debt to fund the development of ports and other vital infrastructure, are now expressing disappointment with the pace and returns to date.  This debt-trap diplomacy by Beijing to consolidate economic and geopolitical power was once considered to be unshakeable but it is now only a few Chinese bank failures away from taking multiple nations down the road of ruin alongside it.  The debts in these developing nations is unsustainable, and they could just as easily pull China down with them as the opposite.

Once bank failures start to spread across China the cultural, political, and business fault lines will rupture and the Communist Party of China (CPC) will tear itself apart as the vying factions fight one another for power.  Under such a scenario the assets owned by the PLA and others outside of China may very well be frozen or confiscated by governments around the world, like America, in order to create leverage over the PLA and ensure that Chinese weapons systems and nuclear missiles remain protected and secure.  The PLA can also be leveraged to turn its focus and scope inward to ensure that the revolution doesn’t become too violent and that any transition in power would be somewhat orderly and fast.

Much like after the collapse of the Soviet Union, there will be instability in China as new alliances and fault lines are developed.  The full transition to democratic norms and open markets will take some time but the real impact will be felt around the world as those nations which once had strong relationships built with the CPC will find themselves having to re-evaluate their geopolitical strategies.  Russia and Iran will be the two impacted the most.  The BRICS alliance is already all but dead as India is ahead of the game by offering incentives to companies leaving China because of trade tariffs imposed by the Trump administration.

The writing is on the wall across multiple fronts.

It’s June 26, 2019 as I write these words.  Change is happening before our eyes across the geopolitical and monetary worlds.  So much is happening so fast and few analysts and media presenters are putting the pieces together.  The explosive growth of the crypto market is just one prime example of how key indicators are being ignored across vast sectors.  This is where we loop back to the beginning of our own analysis.

Massive global changes almost always center around large monetary changes and shifts in how the wealth of the world is managed and moved.  Our time is no different.  The imbalances in the dollar-based monetary system has found a solution in the form of digital assets and digital ledgers.  Blockchain solution companies like Ripple have been working with government regulators, central banks, and monetary policymakers for years on developing these solutions.  This fact has been grossly missed by most armchair and mainstream analysts.

Decentralized ledger and cross-ledger solutions have been developed which will replace the sovereign USD reserve function with non-sovereign and non-reserve capabilities to move value around the world and balance payments in seconds at fractions of the cost.  Even the IMF itself is working with Ripple and other blockchain companies on these solutions.

China had pushed hard for the SDR to become the dollar alternative but now even the IMF themselves appear to be moving towards a digital ledger solution to replace the traditional reserve role of the dollar and other Western currencies.  This would suggest that China is running out of road and will soon find its banking industry collapsing from within as the USD-polar monetary framework which it depended on for its “miracle” growth is now being replaced with a real and tangible alternative.  The Communist Party of China will not survive this transition but China itself will both survive and thrive in the years after.

Ripple and other blockchain companies are partnering and aligning with banking and business interests in China because of the size of that market.  These interests will re-align with the realities within China as the Communist Party collapses and capital outflows and inflows search for new roads.  Bitcoin itself will be one of these roads and could very well see that cryptocurrency reach astronomical valuations as capital flees a fragmenting China.

Don’t blink because the world is about to change.  - JC

JC Collins can be contacted at jcollins@philosophyofmetrics.com

This article is copyrighted by POM Media©2019. As non-Premium content, it can be shared and reposted without further permission.

74 Comments on “The Coming Collapse of Communist China”

  1. Fascinating piece JC thanks, it is great to see you writing on macroeconomics again.
    There is lots to comment on here but the first thing I would like to ask you about is the shift in the overall POM thesis. For me what came through clearest during the first several years of POM vis-a-vis currencies was that you anticipated:
    1. a depreciating USD, and
    2. an appreciating CNY.
    The thesis being that this would be necessary to correct the imbalances that have accumulated over the years. However with the rise of crypto as a potential alternative "solution", each relevant article you publish appears to be moving away from one or both of the above. Or am I misreading here?
    As you say the world is changing very rapidly and I for one would be grateful if you could further comment on this perceived shift or evolution of the overall thesis.
    As ever, such comment will not be taken as financial advice. And neither will your hint of BTC to da moon! 😉

    1. The core need for the USD to depreciate and the RMB to appreciate hasn't changed. In fact, the tariffs which Trump has put on China serve as a de facto depreciation and appreciation which is serving the same purpose. At some point, the exchange rate arrangements between the currencies will have to be adjusted and tariffs ended. This could be the source of the statement by Trump (and others) about having "a level playing field". The reserves themselves will have to be dealt with and we have previously reviewed how the substitution accounts could be used for this purpose. With digital assets, there are alternatives taking shape but we'll have to wait and see how some of these shake out.

      The one thing I would consider is a short-lived revolution in China will have a large impact on the RMB. How quickly China recovers will determine which direction the currency moves.

      1. Many thanks JC for clarifying that. To echo Dane's comment, this article in my opinion is one of your best "big picture" pieces and I will have more to say on it after another reading, thanks again.

  2. Nice one pal. I love the life in your writing. The way the thesis flows and adjusts over time to reflect the worlds actions. Your ability to see and weave so many fragments together to create such a "big picture" view is a work of art my friend. Thank you for sharing this art with us.

  3. Dear Mr. Collins:

    I wholeheartedly agree that ,"The explosive growth of the crypto market is just one prime example of how key indicators are being ignored across vast sectors". I can also clearly understand why " Ripple and other block chain companies are partnering and aligning with banking and business interests in China because of the size of that market".

    I have no doubts that block chain companies will massively expand the crypto market as all fiat currency based economies are imploding from the weight of historical heights of debt. I am a macro as well as micro systems analyzer, as you also appear to be. Thus, I strongly suspect that you are keenly aware that the foundation of all fiat currencies are based upon lies, illusions, and brute external forces as the points of weapons.

    From my perspective, Crypto currencies will eventually and completely fall prey to the same lies, illusions, and brute external forces as nefariously created fiat currencies. However, there will be even greater pernicious threats against humanity. Although fiat currencies have some physical appearances and facilitate local commerce and trade, crypto currencies are 100% electronic and invisible. Vapors of any substance have greater mass than crypto currencies. Thus all crypto currencies completely depend on the uninterruptible flow of electricity and internet services along with the utilization tools as reliable and non-corrupted cellphone phones, PCs, or chips internally embedded into human flesh. The recent near total electrical power outages in three South American countries, multiple electrical services interruption all about the USA, and the massive Verizon service outages all long the eastern seaboard of the USA as far south as the District of Corruption, very clearly demonstrates the vulnerabilities of any economy completely relying upon crypto currencies.

    I have no doubts that the powers that should not be desire and plan for all human chattel to be implanted with an electronic chip for control of commerce purpose and "for the common good". However, the expanded use of crypto currencies will be just another and more effective and powerful socially engineered program in these directions.

    Thus in short order I strongly suspect the crypto currencies will be a "currupto" currency and means for greater and greater nefarious controls of the masses.

    Cui bono? Follow the money!

    Respectfully yours,

    Ozymandias

  4. JC, Great geopolitical post. I love it. I have seen seveal analyst mention that China's Gold holdings are much larger than most expect and that they will use these to back their currency at some point? Gold also seems to be breaking out of a 6 year basing pattern now. Any thoughts on the viability of China using Gold to stabilize their financial system?

    https://schiffgold.com/key-gold-news/china-adds-gold-to-reserves-for-fifth-straight-month-ups-pace-of-buying/

    Also, BitCoin & Cryptos seem to have found at least a short term top based on an Analyst I follow who spotted the 4 Year low in Crypto's in Dec 2019. He is still very bullish longer term but sees a pullback starting.

    https://surfcity.co/2019/06/26/bitcoin-gbtc-midweek-update-3/

    1. Gold won't help their banking system or prevent cultural and political fault lines from rupturing. I doubt they will back their currency with gold anyway. I doubt any nation will to be honest. Gold standards are deflationary and no government will want to saddle their domestic economy with deflation at a time when global liquidity needs to explode to meet global growth demands.

      As for the crypto market, we are in the early phase of a new bull run. We are seeing a slight pullback today after Bitcoin ran up thousands of dollars in just a few days. This pullback will reverse in short order and the bull run will continue. I'm of the opinion that technical analysis of the crypto market doesn't work as the fundamentals of that new asset class have not been organically determined yet.

  5. How do you know all that? Without a doubt the best in depth analysis I've ever seen anywhere anytime. The history, the present and clear vision of the near future. On the mark as evidenced by your current Tanzania tweet. Amazing post, I believe being around here for awhile now helps me to appreciate just how amazing it really is.

    This just as comment

    "The role of China becoming the world's largest creditor nation as America was becoming the largest debtor nation was not by accident. It was by design......"

    I makes me wonder just how much the leaders of China or maybe better said the "figurehead" leaders really understand about how the International Banking Cabal works. Thoses wizards at the top of that ultimate pyramid scheme, do they really know what they are doing? Or are they operating off a formula/equation that allows them to take advantage any mix of circumstance? More likely they are good at scrambling, just like many of the rest of us.

    So there is no free lunch. Did China bite of more than they could chew? Or were they fed more than they could digest?

    PTM

    1. Hey Peter here is an idea on China. If we consider for a moment that President Xi is aligned with...lets just say US interests could he then be helping China shed or evolve away from the Communist Party of China (CPC)? Back in his thirties he spent time in the heartland of America with a family in Iowa. He seems to have some sort of attachment to that experience as evidenced in this article.

      https://www.cnn.com/2016/12/07/asia/china-iowa-xi-jinping-branstad-trump/index.html

      Could the world be attempting to transform communism in China? If so to what? Would a lifetime president help that transformational process?

      😉

    2. Pieter:

      In response to your question, " do those wizards at the top really what they are doing?", the answer is, 'YES!'. Their ultimate goals are clearly known to them. Specific employed methods are not as important as their ultimate goals. Thus, and to address your rhetorical question, " "they" are operating off formulas and equations that allows them to take advantage any mix of circumstance". "They" are quite calculating, but flexible and patient if events are being directed toward their ultimate goals.

      The "they" are the agents of the "Crown Beast" as Mr. Collins has so aptly characterized in past post.

      On this planet, there have been and still are ongoing, evolving, and dynamic conflicts for balances between the negative powers of darkness, evil, and base consciousness and the positive powers of light and higher consciousness. These same struggles on this planet are internal and external.

      We are living in very interesting times of great changes and evolution. I identify these changes as phase shifts involving multiple circles. It has always been the dynamic interactions and reactions of circles within circles. Around and around we go..............still.

      You are also correct, "there is no free lunch".

      "Did China bite of more than they could chew? Or were they fed more than they could digest?"

      The answers are "Yes!" and "Yes!".

      Cui bono? Follow the money (or energy transfers)!

      Ozymandias

  6. Thank you, JC,

    This was highly informative and really outstanding and the incredible predictions regarding China's future in your article are highly likely to have already started. This article filled the gaps in my understanding of the underlying reasons and causations on how China became equal to the United States in economy and tech. Yet, China's current situation reminds me of the muscular guys you meet in sports halls/Gym who have used anabolic steroids/Testrone and look fantastic but their tremendous muscle mass is not as a result of heavy workout but as a result of the chemical intervention and once they stop the hormone intake, they will go back looking as they were before i.e. not puffed up and muscular! I think the backlash as your wise words suggest may be ugly given that events in HK has been getting ugly and it is very likely that it will spill in the mainland!

    Allowing a Communist state to join the WTO and knowing that WTO is essentially an organization that sets the rules for "Capitalist" nations was probably the stamp that ensured China in order to receive The transfer of technology to allow a fast process of Industrialization, something that would have taken maybe 100 years organically!

    The remarkable achievement of the money cabal appears to be their precision control of how much and how fast (or slow) a nation can industrialise or deindustrialize through money control and flow of technology. Clearly, the United States from the same period had been through the De-industrialization all by design. China practically makes everything that people use in America. In the '60s and '70s, I still recall people loved everything that had "Made in America". Shirts, shoes, radio, TV, cars, Fridge freezers and everything that you may find in today were the US made. Today, you can be certain that all of the above items are made in China and at the same time, the average American worker has been getting poorer whilst we have more Millionaires in China than anywhere else, all happened from the 90s onwards!

    This morning I read the first few paragraphs of an article in Foreign Affairs magazine with this title:
    "Trump’s Trade War Is the Wrong Way to Compete With China" and I recommend reading just the first few paragraphs to appreciate who is behind the rapid industrialization of China and at the same time the De-Industrialization of the US. If you recall, Hillary Clinton famously said in a speech at CFR that the location of CFR is so convenient for her since she can walk up to the CFR building and receive the instructions from this liberal and globalist Think-tank...she was not even trying to hide the influence of this entity even, which is remarkable indeed.

    The article: "Trump’s Trade War Is the Wrong Way to Compete With China"

    https://www.foreignaffairs.com/articles/china/2019-06-25/trumps-trade-war-wrong-way-compete-china?utm_medium=newsletters&utm_source=twofa&utm_content=20190628&utm_campaign=TWOFA%20062719%20Trump%E2%80%99s%20Trade%20War%20Is%20the%20Wrong%20Way%20to%20Compete%20With%20China&utm_term=FA%20This%20Week%20-%20112017

    https://en.wikipedia.org/wiki/Foreign_Affairs

  7. "President Trump Pursues Smart China Strategy Heading Into Meeting With Xi Jinping"

    This just came out of the White House and it deals specifically about China.

    “At President Trump’s planned meeting Saturday with Chinese President Xi Jinping at the G20 Summit in Japan, Trump is expected to continue to advance a strategy that his administration introduced in his first six months in office: viewing China as a strategic competitor to the United States and its allies,” writes Dr. Nadia Schadlow, Senior Fellow at the Hudson Institute, in Fox News.

    “This shift from an enabling posture to a competitive strategy was a response to years of Chinese Communist Party efforts to shape the international system in a way that disadvantaged the United States on trade and advanced China’s authoritarian system.”

    https://www.whitehouse.gov/westwingreads/

  8. Once again, brilliant article, a great deal of thought and analysis has obviously gone into it. I fully agree with the majority of it. Please permit me some respectful scepticism on certain aspects however as I throw some contrary thoughts into the mix.
    No timeframe is given for the “coming collapse” – the final line of the article seems to imply it could be imminent, but that may not have been the intent. I am “boots on the ground” here, and there is little sign of it. True, there have been a few cracks appearing recently in the edifice, and these things can happen very fast, e.g. the fall of the Berlin Wall seemed to come out of nowhere. As far as I can tell at the moment any discontent in the population is aimed primarily at the US and Trump’s tariffs. This will of course continue and increase the longer the trade war goes on. Furthermore, such anti-US sentiment will certainly continue to be encouraged by the CCP and will be very useful because at the first sign of revolution the obvious move will be to transition the trade war into a hot war. That would be the last throw of the dice for the current regime, they would either be ruined or galvanised.

    The way I see it there are 3 key things the CCP needs to keep under control, and thus far has proven remarkably adept at doing so (of course the usual caveat applies, past performance is no guarantee of future performance!):
    1. The exchange rate
    2. The real estate bubble
    3. Unemployment
    Let’s look at them in turn. The exchange rate is important not only in terms of export competitiveness, but also the risk of capital flight. Falling RMB = massive money flows outwards, despite capital controls (BTC being one of the major conduits as we know). Still plenty of FX reserves to defend it for the time being though. People have been recommending shorting the CNY for a few years now (Kyle Bass comes to mind). For the most part they have been burned and gone quiet on the subject.
    The real estate bubble is a seemingly perpetual concern and there are signs of a slowdown. Not for the first time though. Beijing seem able to turn various faucets on and off to sustain prices or restrict growth with (so far) an enviable degree of control. The fact that the land and much of the construction industry is state owned certainly helps. Some reasonably up-to-date data:
    https://tradingeconomics.com/china/housing-index
    https://fred.stlouisfed.org/series/QCNR628BIS
    As is well-known, real estate is the investment of choice for virtually the entirety of China’s wealthy and middle class, NOT the stock market which is tiny in comparison. So a true collapse of the bubble would indeed cause massive unrest; Beijing knows this and therefore dedicate themselves diligently to controlling it. They do “let the air out” from time to time but then with a slight policy tweak everyone tends to “BTFD”. I see no obvious reason why this won’t continue for the foreseeable future. Chinese money has nowhere else to go really. However the dynamic can change if sustained deleveraging becomes fashionable I guess. A tumbling CNY would also be a problem.
    Unemployment is of course the other thing that could potentially create mass protests, and here the trade war is obviously a major factor. It is hard to get a handle on this because whatever data exists is most likely all but worthless. Clearly a long drawn-out trade war will cause more and more manufacturers to move production overseas. Beijing talk tough but they must be getting very worried by now. Although progress is being made, they have not been able to transform into a consumer economy fast enough. One can imagine there will soon be nationalistic propaganda appearing exhorting all to buy Chinese-made products only. Let’s see what happens at the G20 but I struggle to see a way out for China without unacceptable loss of face. This is why I fear Rickards may prove correct, he has been saying for years now: currency wars -> trade wars -> shooting wars.

    Regarding the banking system, many western analysts fall into the trap of looking at China as a fully capitalistic system, but it really isn’t. In many respects it is a centralised command economy and therefore the rules of the game are different. The largely state-owned banking system will not be allowed to collapse on its’ own (sure with economic WMD from the US it can’t be ruled out, but at that point we are likely talking WW3 scenarios). Debts will be written off. Money will be printed to backstop the system. The enormous gold reserves might even come into it. Whatever it takes.
    Yes the system is stressed and debt loads excessive, it looks unsustainable. But remember Japan. Their debt load has looked impossibly high, for decades, and yet they muddled through. I haven’t checked the data but I believe it is similar in that most of the debt is domestic rather than foreign-held.

    I’m afraid generally China bears are too prone to wishful thinking, confirmation bias etc. We are all susceptible to that, including myself.
    Anyway I hope my counterpoints add to the debate and I am not denying that China’s economy faces truly gale-force headwinds. As the saying goes the China bears will continue to be wrong…. until they’re not.
    As for internal fracture of the CCP, I cannot give much comment and really appreciate your insight JC on that. Yes, mayhaps this is the way it will end, destroyed from within.

    1. Dear Red Jon:

      I have visited and studied portions of main land China and Hong Kong. They are two different worlds. Although, I admit that I am not as familiar with the lands and people as yourself. However, my experiences and observations are that the primary focuses of the CCP are to remain in control and power by maintaining very tight controls over 1.2+ billion Chinese. Economic developments and expansions are just means to their primary ends.

      The CCP now have multiple dragons by their tail and are struggling how to maintain their controls. Dragons tend to be very destructive and unpredictably violent once disturbed and angered.

      Relative to CCP investments, the ChiComs have been utilizing their reserve of US T-Bonds to purchase municipal utilities and properties in the Demonrat and CommieRat controlled cities of the US, along with massive acres or farm lands all over the USA and especially "FederalLy Owed Lands".

      The ChiComs have also been using their reserve of US T-Bonds to invest in and develop hundreds "Tax Free Trade Zones" and "Tax Free Industrial Zones" thorough the western and southern States of the USA. As a consultant, I have visited and inspected several of them.

      As for the ChiComs, they want tangible assets for their collection of rapidly devalued and worthless T-Bonds. They also want vast amounts of raw materials, foods, and agricultural products to maintain their economy and to feed their people and animals. The output of hay fields, corn fields, and alfalfa fields thorough the US being exported to China are some example. Meat processors as Smithfield Foods, Inc are owned and operated as one of many subsidiary of WH/Shuanghui/Shineway Groups of China. One of many examples.

      We imported finished manufactured products and the US gave them printed promissory notes against the backs, sweat, and labor of future Americans. As as consultant, I have also inspected and advised at many import/export facilities as the ports of Long Beach and Los Angeles, Commiepornia. Over the past fifteen years I have personally watched hundreds of thousand of filled shipping containers imported from China being off loaded for distribution all over the USA. Some of the largest container ship can carry up to 20,000 containers. An average sized container ship can easily transport 10,000 containers. Conversely, those same containers are returned to China from the USA empty. We import finished and manufactured products and export nothing but air within the same containers. The ChiComs are attempting to obtain as much valuable as possible during the slow burns of economic declines in the USA.

      Ozymandias

      1. Thanks Ozymandias, I am loving your colourful nomenclature 🙂
        According to POTUS some of those empty containers are now going to be filled with "farm products" when shipped back to China. The G20 talks seemed to be an exercise in can-kicking. On the face of it, Trump turned down the heat when he could have turned it up. My take is he just doesn't want to crash the stock market until after he gets re-elected. To mirror JC's wording, it is clear who is in the stronger position, Trump is the one in control of the trade war and he is totally dictating the pace of this process to suit himself.

  9. "Communism is a disease of the heart, the Japanese are but a disease of the skin"

    -Chiang Kai Shek

    "After Sun's death, Chiang Kai Shek became the leader of the KMT. Unlike Sun, he expelled Chinese communists from the party and led a successful unification of China. During Chiang's ruling, there were two main threats to his party the Japanese, and the Communists. Chiang initially focused on the communist threat rather than confront Japan directly, a choice that angered many of his supporters. Ultimately, he betrayed the First United Front by purging the Communist, and broke the Second United Front of 1941 whilst there were foreign enemies."

    https://www.sutori.com/item/chiang-kai-shek-communism-is-a-disease-of-the-heart-the-japanese-are-but-a-dis

    Tough to say which side Xi is on. He's "serving as general secretary of the Communist Party of China (CPC)" and is also "Described as a Chinese nationalist"

    It seems China has been in this position before though. A quick read of this Wiki page is quite enlightening https://en.wikipedia.org/wiki/Chiang_Kai-shek

    Then compare that with Xi's Wiki page https://en.wikipedia.org/wiki/Xi_Jinping

    With the Hong Kong protests gaining momentum if it spills over into mainland China Xi may be forced to dissolve his relationship with the communist party like Chiang did back in the 20's. The falling out led into a civil war in China where Chiang eventually lost. Maybe the Nationalist Party will win this time around depending on which side Russia supports. Russia is a different country now so maybe it will lean away from the communist party this time.

    If the three banks who had a judgement ruled against them are communist run banks it could serve as a strong blow to the communist party if a civil war should arise. Man it seems like Reagan vs Communist Russia 2.0 only this time it's Trump vs Communist N. Korea and China. Heck if we look at the actions of the Marxist Dems in the US they could even be seen as a defacto communist party too? Trump against the world of communism 😉

    https://www.youtube.com/watch?v=GBkT19uH2RQ

    Here is a documentary on the first round with Chiang that aired back in the 60's.

    https://www.youtube.com/watch?v=E0_JofhuqfM

  10. Yes Dane, Xi is an enigma, tough to read. Indeed one of my friends once commented "I wouldn't want to play poker against him!"
    Regarding the HK protests, I am not sure they are gaining momentum currently, but could easily flare up again. Of course Beijing censor and suppress the news and will do everything they can to make sure what happens in Hong Kong stays in Hong Kong!
    There was a report on ZH a few days ago about the blatant propaganda going on, that a spokesman for China's Foreign Ministry referred to the protests as pro-extradition! Now that's what I call Fake News!
    I haven't heard anything about whether the subject of HK came up at the G20?
    It seems to me that for now just enough concessions have been made to mollify the protests. But there is clearly a groundswell of anti-Beijing public opinion that is going to continue causing the CCP major problems. The days of their pick Carrie Lam could be numbered, and the process of replacing of her will have to be handled with extreme care to say the least.
    Chiang KaiShek retreated to Taiwan, and that is another potential flashpoint of course. If the CCP do find themselves in need of a distraction due to unrest on the mainland, invading Taiwan (for which detailed plans are no doubt already in place) would be a ready-made gambit.

    1. Hey redjon. Yes a retreat to Taiwan was also reflected in that documentary I linked. Very interesting documentary by the way.

      Also I present some Hong Kong escalation for your viewing pleasure. 😉

      https://www.scmp.com/video/hong-kong/3016729/clashes-between-anti-extradition-bill-protesters-and-hong-kong-police-july

      Japan's prime minister Shinzo Abe brought Hong Kong up at the G20.

      https://www.scmp.com/news/hong-kong/politics/article/3016518/g20-activists-call-world-leaders-osaka-press-xi-jinping

      1. Yeah, commenter's curse, that was kicking off as I typed those very words! Will be interesting to see where HK goes from here. I think Lam has to make very clear that the extradition bill is dead and buried, never to return. But I am not sure even that is enough. The protesters want her gone. And if she walks, then what? Like I said it is going to be very hard for Beijing to manage.
        I shall watch that doc when I get the chance, thanks!

        1. Lol. I hear you redjon. Seems an all out convergence on...at least some part of China doesn't it? I see a similar pattern of a particular "mindset" (crown beast) that the world is policing and thus attempting to bring back into balance with all that is good in the world. Time will tell us how it all unfolds my friend. Until then I'm buying more XRP 🙂

        1. Lol. Re: draining of the swamp...I wouldn't get your hopes up pal. Of course time will tell, but folks like that don't usually pay for their transgressions in this world.

          1. The theory is that Trump was unable to act whilst the Mueller investigation was ongoing, but now that's over he can get down to business. The timing also suggests that various dems are going to be implicated and the ensuing public revulsion would all but guarantee Trump's re-election. Not that that's in much doubt around here anyway.
            But you're right Dane we probably shouldn't get our hopes up too much

  11. It is my limited understanding that when a person is initiated into a high level society, the beginning requirement is for the initiate to be walked into the initiation by a high level member.

    Only rumor has it, that Brad G. was walked into a high level meeting on the arm of Cristy L. and sat at THE table for the ceremony.

    This from bearableguy123

    "The BIS meeting of May 14, 2019. was the day that Ripple crossed the Rubicon.The Old Kingdom was begrudgingly facing the fact that they had to change. The king, who wasn't AC, was in the room that day and was quite perturbed. Help was needed and when all eyes turned to Leguarde with Brad on her arm like a prom date, Mizaru was kicked out of the room.

    TickTock
    https://youtu.be/L3Cb7yuvc1c

    Such fun, adventure, and excitement this journey has provided. With a look into our own souls and a glimpse into, what were, at least for me, secret societies and their machinations.

    Thanks J

    I'm not sure how this "brick" fits

    Pink Floyd - Another Brick In The Wall (HQ)
    https://youtu.be/YR5ApYxkU-U

    PTM

    1. "Secret societies and their machinations." HA! HA! HA! Yes sir, in deed!

      Kabbalistic Visions, Jewish Mysticism, and Masonic Machinations hidden in plane sight.

        1. Pieter:

          Kindly be assured that I was NOT laughing at you.

          I found humor in what you wrote.

          Kindly indulge me. I do not laugh often enough.

          Oz

    2. Just for clarity. I think it is a mistake to condemn such a broad spectrum of people and beliefs based on the corruption of the narrow mindset that gives so many a bad name. Here is a great example of what the "true Mason" lives for.

      “The true Mason is not creed-bound. He realizes with the divine illumination of his lodge that as Mason his religion must be universal: Christ, Buddha or Mohammed, the name means little, for he recognizes only the light and not the bearer. He worships at every shrine, bows before every altar, whether in temple, mosque or cathedral, realizing with his truer understanding the oneness of all spiritual truth. All true Masons know that they only are heathen who, having great ideals, do not live up to them. They know that all religions are but one story told in divers ways for peoples whose ideals differ but whose great purpose is in harmony with Masonic ideals. North, east, south and west stretch the diversities of human thought, and while the ideals of man apparently differ, when all is said and the crystallization of form with its false concepts is swept away, one basic truth remains: all existing things are Temple Builders, laboring for a single end. No true Mason can be narrow, for his Lodge is the divine expression of all broadness. There is no place for little minds in a great work.”

      ― Manly P. Hall

  12. "How China Continues to Look at Iran"

    https://mei.nus.edu.sg/publication/insight-208-how-china-continues-to-look-at-iran/

    This is a really fascinating study of Sino-Iranian relationship and the impact of the Silk Road, or should I say the revival of this ancient trade route in which Iran is the lynchpin that connects Eurasia to Western Europe as well as to Far East Asia and specifically to China's sphere of cultural, political and trade influence. In this way, the recent actions by P.Trump admin regarding JCPOA and everything for that matter that relates to Iran is of importance in this regard which may actually assisting nations to move into the multipolar world that we have talked about here at POM extensively in the past. Therefore, it is possible that the Chinese interest in setting up the trade routes in Asia as well as in Europe (Italy is one) may be a p[art of everything we are witnessing right now. This also includes the breakup of the Communist Party over China AND the potential regime change in Iran from the deep-state run Islamo-Marxist aka the Islamic Republic of Iran.

    Two statements by two world leaders regarding the end of Socialism/Liberal world order (NWO) by President Trump and President Putin in the past couple of months may be the statement that carries in its payload the news that both China and Iran will go through. This is important to consider since the collapse of the Communist Party apparatus in China and a similar hand over of power in Iran from the deep state operatives to a civil or secular governance may be what is required for the advancement of the Silk Road project that is free from the Liberal world elite's manipulations and more importantly their control. Both Iran and China are and have been controlled by world banking and the technocratic elite who attend Davos and the Bilderberg meetings for the past several decades. Therefore, it is possible to assume that the recent chaos in Hong Kong may be the method to bring down the Communist Politburo of China and return the power as well as the administration of the trade and commerce from the Communist Party to the civil society and patriotic entities in China. The same also can be said about Iran because, since 1979, around 80 per cent of the Iranian economy is being owned and controlled by the IRGC (Pasdaran) and their associated "foundations". In both cases of Iran and China, almost every aspect of life and commerce is under the direct control and ownership of one ruling entity and any transfer of power will actually mean a blossoming of trade, commerce as well as liberation fo the people in both these countries. I believe that multipolarity is the new method of governance and it will also mean the return of power and future to the rightful owners of this planet i.e. the 7-8 Billion, people who are ruled by a psychop[athic cabal who have penetrated in every nations, religion and society and their expertise is penetration into each, thus taking control of the lives of the people. I, therefore, believe that we may witness the end of the Communist party control in China and the end of Islamist Shia Mullah's control in Iran who came to power with the direct assistance of the world liberal elite and the superbly organized Iranian "Tudeh Party" in 1979. The only purpose of communism and how it was created was to kill, subjugate and steal money and property from entire nations and to destroy the Middle-Classes, hence creating a two-tier society of the super wealthy elite and the 99 per cent destitute peasant class. This is the legacy of Communism in Russia where they killed 60 Million Russians and confiscated their property and wealth to the new banking family elite who now control the Technocratic empires today. In the case of Iran in 1978, some 3 million of the most educated and wealthy Iranians left Iran with the majority leaving their property to be taken over by an Islamic-Marxist cult, all so that Globalism to begin and to take roots.

    To appreciate why Marxists and Karl Marx used the term, Bourgeois as his enemies and his hatred of them, we can really see he saw his enemies as the "Middle-Class" and NEVER the rich and wealthy because they wealthy funded his efforts to remove the Bourgeois classes altogether. The removal of the Middle-Classes is repeated ever since and any tax rise by any leftist organization is in line with Marx's dream. Interestingly, the term means the "people in the cities" since rural people were the peasant classes and Marxism equally hates the lower classes too but they need them to create a Marxist state. We can clearly see who is behind this dark and sinister ideology, can we not?!

    In the case of the Tudeh PArty pf Iran after WWII, the founders were all the nobility of the previous dynasty and all wealthy landowners. Can you see the similarities in the US/European super wealthy and their total obsession with Marxism/Collectivism? Hollywood superwealthy are all Marxists, you have to go the roots of this sinister religion that replaces the divine with an all-powerful GOVERNMENT...

    https://en.wikipedia.org/wiki/Bourgeoisie

    https://en.wikipedia.org/wiki/Tudeh_Party_of_Iran

    Wish you all a very Happy 4th of July

    And GOD BLESS you all

    1. Hello, my Dearest Pieter,

      He probably did go insane given the fact that the Liberal elite who were eager to establish the NWO and initiate the technocratic age by installing their own puppets everywhere including Iran in the shape of Mullahs and not to mention their own creeps in charge of the entire deep-state (C_A) funded tech and corps, had planned since the early 50's to bring him down. Remember that he was the legitimate King as per the 1905 Iranian constitution, (since fall of 1941 ) which was drawn up as a result of the constitutional revolution at the time (1905) of the Qajar dynasty whose offsprings had hatred towards the new dynasty i.e. Pahlavis. Mossadegh was a Qajar prince of the previous dynasty whose attempt was to bring down the secular Pahlavis dynasty and they succeeded by cooperating with the liberal elite only to establish an Islamist regime which the Islamist Qajars were also one!

      Carter Administration was planning to hand him over to the rabidly insane leftists in Iran so they would hang and torture him publically. I am certain had I gone through such psychological torture, I would have gone insane. To get a glimpse of how he was treated by the American leftist lunatic Jimmy Carter, please have read of the piece in Wikipedia about his final days and remember that the Shah was supposedly the greatest ally the US had in the West Asia region at the time where the Soviet Union was relentless in domination of the entire region. The Shah would have thought if they treat their best ally this way, what would they do to their enemies? I suppose, we have lived through the constant war period of the liberal elites since the 1980s with such noble leaders like the Clintons, the Bushes, the Obama, Tony Blair et al. I wonder of the world was somewhat less violent had the Soviets had stayed longer and the Shah had not been taken out!

      Another thing to remember is that at the time the real danger to the world was Soviets and Pan-Islamism had not been "created" by the globalist psychos of the world. Who knows!

      https://en.wikipedia.org/wiki/Mohammad_Reza_Pahlavi

      Wish you a nice evening my friend.

  13. My Carpe Diem, Dear Friend

    I like to think I have at least maintained the gist of what you have so generously given me over these last few years. Between you, my own research and the personal friends I've made from Iran, my scope of the ancient Persian empire and today's state of Iran been greatly expanded. I can't thank you enough.

    We, you and me followed the Pahlavi dynasty back to the turn of the 20th century, through the 1920's and the eventful 1930's into the 1950's up, into 1979 thru to this present day.

    That said, I don't believe I would be honest with you or myself, if I didn't just straight out say Shah P. was showing signs of insane level egomania as far back as 1967.

    For evidence I suggest this from 1967, about the time I believe he began to lose his grip on himself. Battling psychopaths as if in some weird competition, each ego driven to attempt to prove just how crazy they are. When it comes to bat shit crazy, you best just stay at home when you go playing pomp, against the Queen of england and her crew. The Shah P. in over his foot tall or more crown, encrusted with 3380 diamonds, as he slow marched without clothes down the promenade. What was up with that? Or much less watching his wife, the beautiful Queen Farah attended with ladies of the court carrying her 26 foot long train, all jewel encrusted, black mink, trimmed in white ermine.They damn sure were a handsome couple. I'll give them that. How about those horse drawn gold gilded carriages. The whole affair looked pretty crazy to me.

    A little over a decade later Shah P. finds himself without a country, dying of cancer, flying around looking for a country that will allow him to land his plane. I agree with you that that set of circumstance would drive one mad. However I further suggest the Shah was already headed to hatter like mad years before. King of kings indeed.

    Shah Of Persia's Coronation + State Opening of Parliament (1967)
    https://youtu.be/i9Hli7rWMUg

    I do not know, but I've heard it said Shah P led his beloved Iran into modernity to fast while attempting to rule like an ancient king. Even with things like free education, with university students receiving payment to attend and other forward thinking social programs, subsidized food and housing. The effects of his ego driven rule was to all but make it for naught.

    In the end I do not think he even saw his spectacular demise coming. He was full crazy by then.

    What would Iran be today if the CIA would of permitted The Shah P. to continue his reign? Hard to say, with the creeps at CIA changing regimes as snakes shed their skin. We do know it is a mess at present, hopefully the great and noble people of Iran will find a prosperous path into the future.

    PTM

  14. Thank you Dearest Pieter,

    I sincerely believe that the study of history and philosophy helps us to understand our condition as a species and to use cinema as an analogy, perhaps we can say that history is the running movie and philosophy and more importantly, symbology is the subtitle of the movie. All this helps us to understand and appreciate all the why's and how's since we can appreciate the underlying meanings and significance of any historical characters/leaders and their alleged behaviours, both negative and positive. The problem with leaders and historical and current characters are that they are exactly like every one of us and they act and behave according to their own conditions and educations but more importantly their historical conditions. In this way, the late Shah of Iran, President Nixon, Carter, Reagan, Bush I & II and perhaps the most notable of our time, President Trump and lets add the British Queen also have nuances, quirks and let's say weirdness that I or any person might have but each of them are under some sort of magnifying glass and these negative traits/behaviours is displayed publically so much that people begin to see them as very strange or totally innocent and angelic, all depending on who writes their history!

    The Coronation that you mentioned in 1967 sounds and looks Over the top to all Europeans and western people since in their the "mad hatter" opinion is formed during that past 400 years of colonial period where the West was the victor and the western man is conditioned to believe that at no other time in history any empire had amassed so much wealth and opulence and as such it is strange to see a West Asian King such as the Shah of Iran to "impersonate" a British monarch! The fact of the matter is that almost everything the British monarchy does is only the repeat of the Persian and to some extent the Roman pageantry and state rituals. Let's look at some historical evidence for what I am saying as it may sound like an exaggeration but allow me to explain. The Imperial horse cart and the crown has an ancient symbolic meaning in the human psyche and none of the Shah's ceremony is strange to an Iranian or for that matter a person of that period of course if only they were educated at a radical Marxist or Islamist "education' that is ALL the Western universities of the era to this date!

    Firstly horses were domesticated by an Iranian speaking people according to the Kurgan theory in modern Ukraine, so was the invention of the horse cart, saddles and show heels for the purpose of horse riding, pants (trousers), and all manners of pageantry and opulence and to our modern standards may look extremely glitzy. The Iranian Achaemenids dynasty and the subsequent Parthians and Sassanids were extremely wealthy and had elaborate laws and state rituals that were later copied by other subsequent empires and monarchs in both Europe as well as Asia. State banquets and such other ceremonies were observed with clockwork precision in that period which was the envy of the counterpart empire of their period. Britain in that same period was extremely poor and backward and as such, the world civilization was in the Eurasian lands were Iran ruled. It is said that when Alexander invaded and broke through the Persian capital Persepolis, he placed the entire gold reserve of the Achaemenids on 30,000 mules/camels to fund his campaigns in Bactria/Central Asia and northern India which were under the Persian rule. Such level of wealth and power had gone to dust in an ancient empire as Iran was but revived somewhat in 15 century again during the Safavids and Iran was at that period extremely powerful again but went to a downward slide when the Russo-British great games and the age of colonization began when Iran was ruled by a weak and fanatic Qajar dynasty. Iran at this period lost much of her territory that created many of the current nations around Iran and Russo-British warfare and alliances placed Iran in a very weak position.

    I would like to encourage you to take a look at the Iranian National Jewels and research the idea of where "Crown" really comes from and I can tell you it was not a British invention but more so of a Eurasian origin if not wholly Iranian. The term "Tiara" is of Iranian etymological roots. State banquets were standard practice in Iranian for the past 2500 years and if anything the idea was taken to Europe and elsewhere from this origin. So as you can see, nothing the Shah of Iran did is extraordinary or even eccentric since he practised the state rituals of his ancestors but the Western liberal media and hateful Marxist-minded historians saw all this as a sign of a madman and they called him irrational, emotional, megalomaniac etc. etc. Oh wait, are we seeing a parallel here? I mean what do they call Donald J Trump by not calling him, racist, crazy, sexist, mob boss etc. etc.? Are you getting my drift dearest, Pieter?

    The great Russian author Leo Tolstoy said this about history 'History would be a wonderful thing – if it were only true.'. The truth of what he says is that we should study and observe and make up our own minds as sovereign beings without the propaganda of "Historians" and currently the "Mainstream Media" (aka Fake News). Can we say that both the late Shah and P.Trump actually have done some good for their people? The answer is all dependent on your worldview and to agree on what is good and what is bad. The late Shah looks crazy perhaps because we have all been conditioned in believing that all that crown jewels belonged to him, not true I am afraid, it belongs to Iranian nation/people. I also believe the British crown Jewel collections belong to the British people and not the Queen or her family and as sovereign kings and Queens, such ceremonies are part of their culture and not out of place or strange at all. I also thought that a large majority of the American MSM have boycotted the great 4th July celebration and I am going to suggest that all of them and predecessors felt exactly the same about the Shah of Iran for the exact accusations. Nothing changed in 50 years I Guess then 🙂

    Wish you a great Friday, my friend.

    https://www.youtube.com/watch?v=LHthRsAiAzo

    https://en.wikipedia.org/wiki/Iranian_National_Jewels

  15. Dear POM family,

    Some years ago, a noble friend forwarded me this incredible histomap (History map) of the past 4000 years of human civilization which was created in 1931. In so many ways, such information is not presented to our young generation as Western academia has been in a psychotic frenzy to eradicate OUR collective history. All attempts in removing statues, in Virginia & other US states of the noble founding fathers of the US is in line with Marxist Revisionism and follows the same degenerate logic of scrapping all history. In their corrupted and degenerate minds, a human population without a history can be directed like sheep to a slaughterhouse, which is sadly true. Therefore, the task of teaching our children, grandchildren and the next generations of humanity is to pass on the knowledge of our collective history and our achievements as a species regardless of race, colour and creed. A healthy society and as individuals, we need to know and have access to our ancestors' memory and wisdom without which, we will be no more than cattle or Robots and if you are seeing non-stop attempts by technocratic lunatics in bringing about Artificial Intelligence and law-abiding Robots you will know where it's all coming from. I absolutely believe humanity has a spark of the divine in his/her soul and as such their corrupt and dark plan will go nowhere.

    http://www.businessinsider.com/john-b-sparks-histomap-shows-4000-years-of-world-history-2015-6

    This is the map where you can zoom in and read the details here:
    https://www.davidrumsey.com/luna/servlet/detail/RUMSEY~8~1~200375~3001080

  16. My Carpe Diem
    Indeed I do gather your drift. I'm not much for bowing or bending a knee, but I will proudly give you a nod of my head in aquience.

    I went online to order a John B Sparks histpomap, I found them to expensive. A bit of a humorous aside, I also found a bed comforter with the JBS histomap on It. I thought it would be great fun to sleep under a map of such history. Alas, it was also too expensive.

    Your response gave me a much deeper and appreciative understanding of pomp and the circumstance that surround it. I love this journey.

    So many add ons +++.

    "Long did the mighty Stagirite retain
    The universal Intellectual reign
    Saw his own Countreys short-liv'ed Leopard
    Slain;
    The stronger Roman -Eagle did out fly,
    Oftener renewed his age, and saw that Dy.
    Mecha itself, in spight of Mohumet possest.
    And chas'ed by a wild Deluge from the East.
    His Monarchy new planted in the West.
    But as in time each great imperial race
    Degenerates, and gives some new one place:

    As always my Dear Friend
    I thank you
    PTM

    1. Hahaha, Goodness Gracious me!

      I must admit to you Pieter, I thought you are joking about the "bed cover" at first but I did type "bedcover Histomap" and I found this you and had a good laugh.

      https://roostery.com/p/wyandotte-duvet-cover/2308094-the-1931-histomap-by-saraicapael

      Now, I want to find the full suit, shirt, tie and all, ...or even the Histomap underwear for those special and historical moments 🙂 LOL

      It is always a pleasure to exchange with you my Dearest Pieter and it is an honour for me to be friends with you and all the noble POM family.

      PS. Please, if you find other stuff made with this pattern please let me know. 🙂

    1. Hmm. June we saw the above transpire. Now today this happens...

      July 9 - "China's development can't shut out the rest of the world. The world's development can't shut out China." - Chinese vice president Wang

      https://postcourier.com.pg/china-vice-president-says-world-cannot-shut-china/

      Five hours ago...July 9 - "President Donald Trump on Tuesday said India has long had a "field day" imposing tariffs on American products, which is "no longer acceptable" to the US. "

      https://economictimes.indiatimes.com/news/economy/foreign-trade/donald-trump-again-blasts-india-over-tariffs-says-not-acceptable/articleshow/70145742.cms

    1. Yes that may satisfy some people but not the hardcore activists.
      Notably there have also been protests taking place in recent days at the train station in Kowloon which is the terminus of the high speed rail link to the mainland. The aim apparently being to raise awareness and overcome the censorship of the news by making sure tourists from the mainland know what's going on and hopefully will then go home and talk about it.

      1. Yes, I saw a video on that the other day. Only two of about ten mainlanders interviewed had any idea of the protests at all. So this transfer of knowledge may spark an informational explosion back on the mainland.

        https://www.youtube.com/watch?v=arNiV5_W5Ck&t=290s

        Then here was a nice perspective from the Hong Kong side of things.

        "How China Subverts Freedom with the "United Front""

        https://www.youtube.com/watch?v=bkSFvveVQbk

        and another Hong Kong perspective

        "Hong Kong Christians and the Protest Movement |Cardinal Zen"

        https://www.youtube.com/watch?v=ed74Lb20UiE

  17. "U.S., Germany slam China at U.N. Security Council over Xinjiang: diplomats"

    https://www.reuters.com/article/us-china-usa-rights-idUSKCN1TX2YZ

    The Western Chinese province of Xinjiang is predominantly populated with a Sunni Muslim of Turkic ethnicity, also known as "Uyghurs". Their language and customs are almost identical to any other Turkic population in Asia as well as Azerbaijan of Iran and the independent Azerbaijan Republic (Ex-Soviet Republic) and to modern Turkey. Beijing or Peking as it was called back then, somehow had great difficulties in assimilating these people into the Communist ideology ever since the Communism became the ruling ideology of People's Republic and this problem is persistent to this day. One way, the Western elite have been working on was to create a Pan-Turkic ideology that encompasses both the Shamanic belief system of the Turkic people and blending it or fusing it with hardcore Islam. This weapon against Communist China had been used to control the PRC by instilling in the minds of the PRC's leaders that the West is capable of making the Uyghur population to rise up and cause serious damage to Beijing by rebellion to their rule. This is where the charismatic character and all made up and fully funded (by C_A & friends!) US-based comes in handy via a Turkish cleric as Fethullah Gülen.

    Such characters are always prepared and well fed for a moment when the target nation, in this case, China needs to be pulled back and slowed down in case they forget who placed the keys of power in their hands. It is interesting that in all such movements as Pan-Islamic, Pan-Turkish, Pan-Kurdish or for that matter any such groups are funded and supported by a powerful entity that provides endless cash and in this case the fire of "resistance" in Xinjiang is lept alive by a toxic combination of ethnic nationalism (Turkish) with hardcore religious fanatism (Islam). Mr Gülen covers these two aspects and he can apply his toxic ideology to any land where the people happen to be of Turkic extraction and Muslim at the same time. The present President Erdogan of the Turkish Republic defeated a Coup by his countryman's supporters, Mr Gülen who lives in exile in Pennsylvania rather remarkably.

    Mr Fetulah Gülen applies his toxic ideology through his religious schools in the US, Europe and Asia. However, with the new administration in the US under President Trump and knowing that President Putin is not in favour of any ideological sabotage of a nation through Islamism or Communism it remains to be seen, whether damaging CCP will involve PAn-Turkic with Pan-Islamism!

    https://en.wikipedia.org/wiki/Uyghurs

    https://en.wikipedia.org/wiki/Fethullah_G%C3%BClen

    https://www.conspiracyschool.com/blog/uighur-nationalism-turkey-and-cia

  18. Hi Dane,

    Yes, that's the meeting and thank you for putting the clip of the meeting. My first impression was that it made me think of a "job interview" going by the two important figures sitting face to face with an assistant placing pen and paper in front of Mr Putin but I am undecided if this is the case, who is interviewing whom here! I know very little about the history of the Vatican Church and its relationship with the Russian Orthodox church only that Moscow became the important centre for Christian orthodox after the collapse of Constantinople to the Muslim Turks (Ottomans) in 1453.

    Also, important to recall the fact that the Russian Orthodox Patriarch Kirill had a meeting with Pope Francis back in 2016. More fascinating was when Russian Patriarch Kirill visited Antarctica about a week after. The schism between the important centres of Christianity may have come to an end with some understandings. The potential outcomes may range from (and I am speculating here as always!) a denuclearization of the planet to disclosures of technologies and even may be of the existence of extraterrestrials, commonly known as UFOs. Otherwise, it may be just agreeing to accept each other's powers, limitations but more importantly responsibility and not mention the desire to survive!

    Nevertheless, these meetings are extraordinary and almost entirely because of a paradigm shift since 2016 when President Trump became the 45th US president. We are living in interesting times...in the realms of a Chinese curse, perhaps 🙂

    https://www.telegraph.co.uk/news/worldnews/europe/russia/12162705/Patriarch-Kirill-meets-penguins-in-Antarctica.html

    https://www.ncronline.org/news/world/russian-orthodox-church-considers-ban-blessing-weapons-mass-destruction

  19. Thank God I made it out and back. I found myself lured in and almost trapped in the Epstein envelope. I fear I was drawn in by my salacious nature(dirty old man)and stayed way to long. I escaped due to my disgust with how the MSM on both sides were spinning it, and being able to recognize the beginning feelings of despair. Whew, that was close.

    So I came back to the POM and reread JC's post and all the comments that followed. About half way thru, I found myself wondering if any CIA research/analysis dept., or any high level CFR type think tank could produce a better work product. I don't know, I've never been in either place, I kind of would like to be a fly on the wall in such a place. I feel a little bit like a fly on the wall here on the POM, especially when I tease some response with one sentence statements like,, you know the Shah was nuts, or why are you laughing at me. That's just the fly coming off the wall and buzzing around being a pest.

    I moved the XRP market all by myself the other day. I made a small buy and have watched the price fall back to .36 since. LOLOL.

    PTM

  20. Thanks for sharing this news Carpe Diem, terrible and disturbing as it is.
    Yes she was a fine occult researcher and both you and I mentioned her work in previous POM comments, perhaps a couple of years ago. A sad loss indeed; at least this tragic event serves to remind me to read her major work which judging by the reviews will be incredibly fascinating:
    https://www.amazon.com/Clock-Shavings-Tracy-R-Twyman/dp/0692277773/ref=cm_cr_arp_d_product_top?ie=UTF8

  21. I'm three chapters into this book Bully of Asia Why China's Dream is the New Threat to World Order by Steven Mosher.

    So far it provides some great insight into the bigger picture. Not that he spells it out but the information he provides is a piece in which applied to the whole of the mind one can create links to the rest of what is going on. For instance China's greatest fear is disorder and chaos which is why they run a totalitarian type of rule over their people. To me Trumps supposed unpredictability is an antithesis to order...at least on the surface 😉 Another tidbit that he throws out is China's history of being the first hedgeman in the world and their desire to regain that status over the world under the guise of a peaceful and harmonious unification of order and obedience.

    Here is a decent review.

    https://japan-forward.com/book-review-bully-of-asia-are-japan-the-u-s-ready-to-stand-up-to-china/

    China's hedgeman ways were brought to heel with the opium wars of long ago. Could we see the uprise in opiate use here in the United States these days as a similar plot disguised through the opioid painkillers pumped out through the pharmaceuticals? Could the rise in marijuana legalization in the west be a move to counter these opioid painkillers and free people from those opioid addictions?

    1. Thank you, Dane, for introducing this great book,

      I read many years ago either in a book or online about the British colonialists' plan/ideas to replace the African population with Asians specifically with the Chinese. However, Indians were chosen and encouraged to settle in Africa and other British colonies elsewhere also such as the West Indies/Caribbean region. To the British colonial officers, Indians were closer to the British intelligence than the Africans and as such, they thought that Indians would manage the affairs in the British system in Africa in managing the Post Office, Railway and other administrative offices in their African colonies which were vast.

      The discovery of Opium as a tool of subjugation was used extensively by the British in Asia as well as Africa. The British colonisers discovered that Opium will make the natives dependant as well as it will multiply their muscle output in the beginning phases of using the plant. It is believed that the Chinese and Indian workers on the railway and telegraph network of the era were given a good ration of opium for increasing their performance and to later make them obedient and dependent workers. Somehow, Africans were not interested in Opium and evidently, it is an Asian/European kind of drug and consequently not black African thing!

      The following is an excerpt of the book written in 1976 (page 733) "The Poppy is Not an Ordinary Flower: A Survey of Drug Policy in Iran" (Fordham Law Review)
      The book is available as PDF and online here: https://ir.lawnet.fordham.edu/cgi/viewcontent.cgi?referer=https://www.google.com/&httpsredir=1&article=2202&context=flr

      "In 1862, Nasir ad-Din

      Shah [Qajar dynasty of Iran] granted the British owned Indo-European Telegraph Company

      the right to build a telegraph line across the country. While the line

      was being constructed, British officers provided opium to their Persian

      workers free of charge together with instructions on how to use it.

      "Later, they sold opium to the people at five grams for a half a penny

      and bought back the smoked residue for five pennies.122 4 It is obvious

      that these British officers wanted to make it profitable for the Iranians

      to smoke opium, because an opium user received more for the dross

      than he paid for the opium."

      Opium as all other medicinal plants have each a role in the education of the humans as well as other mammals and other species. Opium's role is to sedate, hence the reason for its invaluable offering as a method in medicine for thousands of years. Yet, on the other side of the spectrum of its purpose, it ends up literally owning its victim by making the person dependent that it finally destroys the person using the plant's sap excessively. Each nation according to their geography, history and climate would use a variety or a few of such plants. The British colonisers through their agents that travelled from time to time, had mapped an exact and precise weaknesses and strength of each nation and region before embarking on subjugating that region. It is possible to assume therefore that the CCP is following in the paths cleared for them by the Crown Beast system that had been residing in Britain and previously in Venice and all stem from Phoenicia with a religion and cult rituals rather unique that is practised to this day.

      The book and the review which our wise and educated friend noble Dane provided, suggests to me that China is a Crown Beast system hatching eggs in China and if I recall, it was Dane who suggested this a while ago and I can see that he is correct in his assessment. Moreover, if you recall a discussion panel Euriasioan Media Forum which I introduced back a couple of months ago where
      Steve Bannon's was talking about the One-Belt-One-Road by CCP when he said the roots of the project (1:25:00 onwards, see the full discussion below). Bannon said that this project isn't even for the benefit Chinese people but it follows the "British East-India company" model and for the elite - State Capitalism (by CCP state capitalism, financed by the West, for-profit!). I can also see that both the author of this great book by a China expert. Steven Mosher was indeed a US Naval officers (possibly Naval Intel!) and very likely to have been working alongside Steve Bannon as their thinkings on the matter are almost identical. This major undertaking that CCP poses to the world stability is very real and it is fortunate that the Trump administration is taking this very seriously.

      I also believe that the recent opiate addiction is a typical Crown Beast system of subjugation and it had been tried many times in many other places.

      https://www.youtube.com/watch?v=_D8wSUVVChE&t=3s

      https://en.wikipedia.org/wiki/Steven_W._Mosher

  22. Thank you Redjon for putting the link of her book,

    I read the book a year or so ago and I found the material and dialogue to be extremely interesting and I learnt so much about occult beings/entities such as Baphomet and others. This book IMHO is groundbreaking because it explores first hand the mysteries as described in the book description you kindly included. What she basically achieved and recorded in this book is important because she literally opens the possibilities for anyone to explore all the so-called mysteries and to appreciate that contacting the other side i.e. the occult characters is not supernatural and absolutely possible. Contacting a deceases person (spirit) on the side is possible and there are tools and methods that anyone can learn to become a medium.

    The late Tracy Twyman was a real and authentic researcher of the truth and she was extremely brave in attempting something which we are all told not to do and look into. I, therefore, agree with about reading the book and her other books and talks still available on youtube and her website. She was one of a kind and her transition is a big loss. Here's a short clip about her work which a fan made a few hours ago in her memory where some aspects of her occult investigation in the symbolism of the Dollar sign which goes back to very ancient history. There are many of her own clips and interviews available on youtube.

    https://www.youtube.com/watch?v=CNLWQ3bHbMw

    1. Thanks CD, that's all the endorsement I need, I am placing the order and looking forward to reading it. Will check out the clips too, thanks.

    1. Lol, you and your loaded questions Peter. 😉 Who were the ones being blackmailed? Clinton? Spacey? Royal family? Is anyone who is soulless ever free Peter? 😉

    2. Big big trouble Pieter, or so we are led to believe. Yuuge trouble even 🙂
      As one pundit mentioned, this has the potential to develop into the biggest scandal in US history.
      One theory is this is how Trump gets to Hillary. We shall see....

    3. Good Morning Dearest Pieter,

      Your question is something that I also am curious about and no doubt any person who is following the current events. I found the following photos in the link below as well as some information regarding the "Island" and the operatives of this place extremely interesting. In case, you have not seen the dark & dystopian movie "The Island (2005)", I can recommend it as it somewhat relates to the negativity surrounding Epstein's paradise (or Hell for the victims!).

      https://archive.fo/AlRTz

      Ghislaine Maxwell
      Private helicopter pilot
      Trained EMT
      Qualified ROV
      Submarine pilot
      Fluent in 4 languages
      Worked w/Google on nonprofit project TerraMar selling parts of the ocean to people
      https://twitter.com/CARRIE4TRUTH/status/1150525235755704321

      Complete Tour of Jeffrey Epstein's Little Saint James Island in US VI
      https://www.youtube.com/watch?v=OzZBF9P74wo&feature=em-uploademail

  23. CD and I was doing some light research yesterday based from a tweet he saw where someone claimed to see evidence of a US navy plane leaving Sirri Island, Iran.

    https://twitter.com/GDarkconrad/status/1150024780965449728

    We weren't able to validate that claim beyond the tweet itself and this video,

    https://www.youtube.com/watch?v=CnKZ-6fr0wA

    but did find some interesting things about Sirri Island.

    We discovered that "The terminals at Kharg, Lavan, and Sirri Islands, located in the Persian Gulf, handle almost all of Iran’s crude oil exports"

    https://www.eia.gov/beta/international/analysis_includes/countries_long/Iran/background.htm

    We also found some time ago "Iran has deployed Chinese HY-2 "Silkworm" anti-ship missiles along the Iranian coast of the Persian Gulf, on Abu Musa island, on Qeshm Island and on Sirri Island." Also that "As of March 1995 there was one Seersucker cruise missile on Sirri Island that was moved there around October 1994."

    https://fas.org/nuke/guide/iran/facility/sirri.htm

    With Iran's recent broadcast of refining its uranium to weapons grade material one doesn't have to leap very far to consider the possibility that a nuclear warhead could be retrofitted onto that cruise missile.

    1. As per Dane's posting regarding the curious details in the tweet by the guy who follows aircrafts routes, got both Dane and myself intrigued as to how and why a US Navy aircraft (USMC) to be either flying off or flying over an Iranian island in the Persian Gulf which is heavily protected and highly strategic! The clip that Dane put up regarding the "secret" meeting of Islamic Republic elements and the US gov may also provide a clue to this riddle. Thank you to Dane for his diligent research in the background to this joint effort.

      If you recall, last year we were told that the US military had several meetings with the IRGC (Revolutionary Guards) in several locations as Lebanon, possibly Syria (and Iraq) as well as in Oman. The news item whether reliable or not somewhat suggests one or several meetings had gone on with US Gov elements with the Islamic Republic's Javad Zarif who is US educated and has family in the US (as almost ALL Islamic Republic leaders/officials do!). To add another pixel in this picture, we were told by QAnon on 8 May 2018 of the following in Q drop 1320 as follows:

      Today, EVIL lost control / leverage of Iran.
      Today, POTUS took control of Iran.
      https://qmap.pub/

      So now the question may be, what if the US forces loyal to POTUS are gradually taking control of what was the globalist/deep state locations, INSIDE Iran where the elements of the Deep State were positioned? What if things had already started to change last June and after this QAnon update? What if all that we hear on the news regarding, Iran is a puppet show, hence not the real news? Would the losing side elaborate or advertise their loss?! Remember, the Islamic Republic (IRI) has locations in Syria that do a lot of nuclear enrichments! Also worth repeating that IRI is indeed a Deep State operated with MANY sites inside Iran and scattered elsewhere. There are similarities between IRI and NK but both created for different purposes.

      After all, wasn't this the possible method in the case of North Korea too? Isn't the best method of winning a war is by actually not starting or becoming engaged in a war? We should remember that the Islamic Republic has many vulnerabilities and serious and fundamental issues and the greatest one is that of legitimacy internally and perhaps this is why the MSM corrupt establishment had been trying to portray the Islamic Republic as a form of "Islamic Democracy"!! How the dark magicians weave a new reality for the masses and supported and propagated by the modern ruling elite & the Bastions of "knowledge", the corrupt Academia! The Islamic Republic was created not as a proper government but rather as a reactionary globalist movement posing as a legitimate government which had been operating as a pirate state in concert with the Southern despotic and equally corrupt pirates posing as governments in the Persian Gulf region. The return of the most powerful and the oldest nation-state as Iran to normal governance will end ALL Piracy whether in the Carabians or anywhere else for that matter and POTUS and his team know this very well.

      So now, with the revelations of the Epstein Island, some elements of deception that is rather ancient come to the surface. Add NXIVM cult to this and perhaps a few others, and the Light of TRUTH shines on the ancient depravity slowly but surely...

      We are hearing reports of the 21st century Pirates, and their patch of land in the middle of the water (Middle of nowhere really) in the form of Islands and how do they relate to what we are witnessing in the world today? The history of the Persian Gulf Islands may provide a similarity in that they were all used by pirates for the past 3000 years if not longer as recorded by Assyrians and others. So with that in mind, I posed the following questions to myself and I will share them as I do not have a real answer but lots of questions and I hope these questions point to some reasonable answers in seeing the parallels of the Persian Gulf Islands with Epstein's. I also would like to add that the recently created "nations" as Qatar, UAE, Dubai etc. are on the same principle of Neo-Pheonician city-states where Slavery, Human trafficking, Gold/drugs, money laundry and excessive depravity are built in their creation. IRGC (Revolutionary Guards) are and have been making a profit with interacting with all the newly established city-states along the southern shores of the Persian Gulf. "Islands" are the primary source and a convenient no man's land for all the above.

      So with that long-winded intro, my questions are as follows:

      What if "islands" are the no man's land where pirates used to make a remote location for refuelling and distribution of their illicit merchandise as well as the "exchange" meeting spot?
      What if the human trafficking modern-day merchandise with an estimated revenue of $150Billion annual profit is/ was a source of income for the globalist elite?
      What if the only issue being fought to the death in US Congress by the Democrats, that is the "illegal immigrants at the US border" is related to the only remaining source of income for their other "project(s)"?
      Why POTUS Executive Order to end ALL Human Trafficking is possibly the end of the illicit source of revenue for the elite?
      What if the control of the narrative through controlling and censoring real information in Wikipedia is their survival?
      What if nothing has changed and ALL the islands are still used for the same purpose?

      Piracy in the Persian Gulf
      https://en.wikipedia.org/wiki/Piracy_in_the_Persian_Gulf

      https://www.whitehouse.gov/briefings-statements/president-donald-j-trump-taking-action-end-human-trafficking/

  24. If the US economy is the best its ever been, the US dollar is the strongest its ever been, prices for goods are not increasing because China is subsidizing companies exporting to us to offset the imposed tariffs and there is no inflation; why has the cost of my groceries gone up 50 to 60 dollars per week?

    1. You know given the above comment and golds inverse relationship with the USD we can paint a picture in contradiction to what Trump keeps saying regarding (USD being stronger than it ever has been, tariff costs not being extended to consumers and no inflation).

      In 2016 an ounce of gold was valued at $1090 plus or minus $10. Today at the time of this comment an ounce of gold is valued at $1,423.

      If we look at the mechanics of the inverse relationship of gold and the USD we can determine that the value of the USD has actually been decreasing in relation to other currencies around the world.

      "-A falling dollar increases the value of other countries’ currencies. This increases the demand for commodities including gold. It also increases the prices.

      -When the U.S. dollar starts to lose its value, investors look for alternative investment sources to store value. Gold is an alternative."

      https://finance.yahoo.com/news/why-gold-us-dollar-inverse-170016117.html

      Just some food for thought 😉

      1. Lol, well actually there is another possibility. Other countries currencies could be increasing in value while the USD is remaining the same. This could give the same effect as a decreasing dollar in regards to the inverse relationship between the dollar and gold. 🙂

  25. I see what you are saying JC and agree that fiat will fade over the coming years rather than collapse, but the number of years is hard to estimate. In the meantime could we possibly see a transition something like;

    1. A return to gold backed currencies to “level the field” in regards to country currency values which could then eliminate the need for trade tariffs and balance out the trade deficits/surplus’ over time?
    2. The USD retracting its world reserve currency function?
    3. XRP/Ripple acting as the exchange mechanism for international trade payments and such.
    4. Giving the world time to institute regulation for crypto and digital assets to “level the field” in the new digital economy.
    5. Gold could then be the hand off mechanism of value into digital assets as fiat fades into history.

    Or is there more of a possibility of;

    1. The USD keeping its reserve status and all the trade tariffs remaining in their attempt to balance trade deficits/surplus’
    2. XRP/Ripple taking a small share of the worlds exchange demands only to grow through time to eventually handle all of the worlds exchange needs as fiat fades into history.

    Both scenarios provide an organic approach of transition or transformation. I know I’m a small mind in this grand picture so I’m just throwing out what I can. An attempt at using this noggin for good thinking.

    Oh and I’m curious as to how gold will be effected as the world transitions into the digital world of things. I think I got that USD/gold inverse relationship (as USD value increases gold value decreases and vice versa) “The inverse relationship remains because: A falling dollar increases the value of other countries' currencies. This increases the demand for commodities including gold. It also increases the prices.”

    But it’s not quite that simple is it? Value will do what it does in relation to the USD, however there is nothing to explain what will happen when fiat fades into history. Given the above inverse relationship logic what if all the other countries fiat transforms into digital currencies as the USD falls in value thus forcing other countries into digital currencies instead of gold and when they have transitioned then the USD transforms? Would this hinder the logic of the inverse relationship and keep gold value stable through the transition or fading of fiat currencies? This idea might work with the second scenario above also.

    I know I'm a pain but pain is good isn't it? Shows growth...maybe 🙂 If you could find a few minutes to share your thoughts I would be grateful and it would help to know which direction to invest my research cravings 😉

  26. People's Liberation Army joint military exercise on Germani soil and for that matter at the heartland of the EU is not reported by any of the MSM, except for Russia Today! This comes at the time when NATO's future is uncertain and coincides with Turkey actually commissioning their S-400 from a non-NATO and an adversary of NATO. The question that may be considered relevant is whether Germany with the other partner, France want to align the creation of the "EU Army" with China by letting China continue with the Belt-and-Road initiative in Europe?

    Another very important event is the selection of the ex-German defence minister as the new EU President. An ex-Defence Minister as the new EU Führer is a bad sign that Brexit may never actually happen, even though the majority of the British people actually voted in a democratic system for an exit. Next, will be the involvement of the British military in the EU army. Wants that happens, the British Pounds may go and from Great Britain will only remain, Britain...

    Strangely, Napoleon and Hitler (French & German) tried to unify Europe and failed so it will be interesting to see how far the Globalist Leftist Europeans will be able to bring their wet dreams into reality!! Is China about to help the EU leftists? After all, the Chinese army was trained by the NAZI regime in the 1930s and the industrial might/vehicles of PLA has a major input from the Federal Republik for a very long time!

    https://www.nytimes.com/2019/07/16/world/europe/ursula-von-der-leyen-eu-president.html

    https://www.youtube.com/watch?v=Q9GRsWiYbM0

  27. Meet the EU Boss/overlord (over lady?!) 🙂 Ursula Von der Leyen?

    I always use Wikipedia as a reference source but I am always aware that Wikipedia is a globalist consensus joint and it often omits facts. However, the details of this lady as per what is currently on Wiki tells the reader that she is an elitist, if not aristocratic and had always from a young age had "security details" around her. What is even more strange is that she comes from a "Slave owning" family in America who helped the British! She also appears to be paranoid about being kidnapped in the '70s because of her father's position! She had to change her name and leave Germany to go and live in London and study at the Marxist training school aka "London school of economics" where Soros and other globalists got their "education". all fine & dandy.

    After reading her bio, it is possible to assume that the EU is on a self-destruct path with so many entitled elitist/globalists in charge. The future of Europe is RED.

    https://en.wikipedia.org/wiki/Ursula_von_der_Leyen

    https://www.telegraph.co.uk/politics/2019/07/17/fanatical-von-der-leyen-final-nail-coffin-shambolic-eu-democracy/

  28. I think America may collapse before China does. China uses public banking, and public banking is better for the whole country, economically and socially, than private banking, which is only good for mostly the top 1% or maybe a trickle down to the top 10-20%. This whole thing about going after China is interesting. China isn’t communist anymore, they are authoritarian capitalists. Basically fascist with a public banking system, while on the other hand the United States is fascist with a private banking system. And this private banking system controls the most of the world. It’s goal: To destroy the middle class of america and eventually the middle class of the rest of the world and create a two tier system with the top 1% owning most of everything, with everyone else at the bottom. Of course in 30 years, around 2050, when the robots are doing most of the work, they won’t really need the bottom 80% of people, so they will probably get rid of the bottom 80%. I am not saying this is good or bad, just probably what will happen.

    1. I don't think either will collapse. China's hedgeman are looking to take as much land as they can. The CCP are influencing the world by purchasing (through their party loyal hedgemen) China's fake promotion of peace and harmony, which much of the world is buying. The masses are waking up though and beginning to see through the vaile. I think they are seeing just in time to thwart the Chinese agenda of ruling the world. This agenda goes back many years and is sewn into the Chinese culture so they can't help but think it.

      There propaganda has influenced many, they have used Americans weakness of ignorance to instill Nazi tactics to extremize Americans now calling themselves Antifa to rise against the very beliefs and norms that have made America what she is. They are trying to dismantle America from within. But America is showing her resistance. Like him or not Trump is transforming the lowest common denominator of the American populous to awaken and use their brains.

      Earth once had only one landmass called Pangea. She divided that landmass up and separated them in an effort to insure that life would survive even if one land mass would cease to exist. Yes all land masses are one and from the same source but they are divide to ensure the survival of life itself. So is the human race.

      To evolve we should recognize and accept our differences by anchoring within our sameness. One race...the human race, with all our differences. What "bridges" us, is our sameness of all being human. That bridge should connect all our individual "walled gardens" so we can cohabit this one place of life, our school, our home...earth.

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