Our plan for this week was to issue a Global Report on the questions nearly everyone is posing today: What’s Next? Whether you are an investor, manager, politician, or just plain curious, the world is waiting and worrying about the answer to that question.
But something happened during my writing of this issue which changed both the size of the task, and its subject importance. In starting with what the media call the Trade War, and which we call the Tariff War, it rapidly became clear during research and pattern analysis that these titles and thoughts were insufficient to the challenges the world now faces.
Why are so many things going wrong at once? Why are so many areas of enterprise and investment suddenly fraught with concern and uncertainty?
Are there, in fact, ANY areas of current living that are not?
It was at this point, after much serious thought, that I came to the conclusion that we are not even in what we’ve been calling an “economic war.”
Specifically, one should ask, Why do countries go to war? Answer: Money, power, territory. China’s model has provided a path to all three, without firing a shot. In fact, in the traditional sense of war, it is the last thing China wants (since it would lose).
If one fights wars to get these three things, and China has found a way to get them without traditional warfare, where does that leave us? First, that China will never declare war with its victims; after all, it needs them. And second, that we should, if not declare war, at least recognize that we are already engaged in a state of war.
And while I deeply respect those in the Pentagon and armed forces everywhere, who insist on using the term only when live ammunition is involved, next week we will be describing the fact that we are now at war.
I am writing to you on a Friday, a day one does not dedicate to the publishing of important issues. I would ask you to forgive us therefore for putting this discussion forward until early next week, when I hope you will take the time to read your next volume of the Global Report: “SNS: At War.”
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AT WAR: PART I
“The supreme art of war is to subdue the enemy without fighting.” – Sun Tzu (545 BC–470 BC)
When one of your neighbors, who has always been poor, suddenly starts showing off fancy cars, boats, and major house improvements, it’s jarring when you discover that he’s running a crack house. Sure, the all-night neighborhood champagne pool parties are fun, but it doesn’t bother you that much when the police finally haul him away in a windowless van. Things will not be the same – but that is, you realize, a very good thing.
Two weeks ago, we released the once top-secret cabinet-level briefing book by Evan Anderson titled “Theft Nation.” We sent it to all SNS members for free, and for free redistribution, which was quite a discount to the price the day before on the SNS website: $5,000 per copy. We did this because it was time that everyone have all of the information available on China’s illegal and fraudulent national business model. This work had long ago been recognized by the top China experts at the US Department of Justice as the best work ever done on the subject. My friend Sir Richard Dearlove, past head of Britain’s MI6, characterized my description of the problems posed by China’s actions as “the best briefing on China I’ve seen in a non-classified setting.”
When we started the SNS division called INVNT/IP (Inventing Nations vs. Nation-Sponsored Theft of IP, www.invntip.com), very few knew about China’s practices (i.e., no one in the media) or their costs or effects on their trading partners (victims). Today, everyone is fairly well informed.
Given that state of improved understanding, it has been hard to comprehend the casual disregard that global corporations and country leaders alike have shown after learning that a major global player has literally stolen its way into its current wealth state. Specifically, China:
• Uses fraud in its banking and markets as a regular course of business;
• Has a plan (Xi’s “China Dream”) to dominate all other countries and markets; using the fruits of this fraud and IP theft;
• Is putting millions of Uighurs into concentration camps;
• Is polluting the planet at record levels;
• Is driving dependent nations into debt traps; and
• Is working to tighten an economic noose around the planet, strangely called “Belt and Road.”
And then there’s the military and territorial expansion …
In general, global corporations work hard to protect China’s interests through intensive lobbying in their home countries, in return for near-term earnings – even as China plans to kick them out and ultimately destroy them. In general, country leaders pretend China is just another country, just like the rest of the G20, when it’s anything but.
Today, China and its model are a threat to every other nation on the planet. Luckily, someone finally had the insight and courage to stand up to this bully, after years of intentional ignorance by his antecedents. Trump may have bad hair and act like a jerk most of the time, but no one in the world has a more intelligent or effective China policy. And let’s be clear about this – the US actions to counter China’s current model don’t just benefit the US; they benefit every other country in the world.
The timing of last week’s “Theft Nation” release seems, in retrospect, rather perfect: since then, the world has caught fire with news of a series of new actions and reactions as the US increases pressure on China, and China tries to evade the need for changing its model. After all, when you’ve been robbing undefended victims for decades, it’s hard to go back to real work like the rest of the suckers who invent things for a living.
This week, in Part I, we’re going to take a high-level look at what we might expect next in currencies, markets, trade, and politics; and, in a further effort to create a “level-set” for all of those in the media (and those who consume it), to move the discussion away from Trump’s tweets and toward the global struggle between China and its victims that we are all now experiencing directly.
Next week, in Part II, we’ll provide maps, charts, pictures, and additional text describing China’s war plans and activities.
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Here’s an opening idea: what the media has decided to call a “trade war” is not a trade war. It’s just a war. It’s a world war between two opposite models and cultures, often perceived through trade issues but actually based on a plan for global domination of people, markets, countries, and cultures. And, as in World Wars I and II, this is not a story of two sides disagreeing; rather, as with both of those wars, it is the late unveiling of the ill intent of one nation to dominate all others. In the short term, the only difference is that, since China has yet to create a military that could stand up to the US, it has chosen to avoid physical fighting entirely, to achieve war’s ultimate benefits (gains in economics, power, and territory) without firing a shot.
