China Wages Economic War

#3 of the Seven Things You can't Say about China

It all started in 2000 when China was granted most-favored nation status with hugely generous trading terms. Of course, China pinky swore to play by the rules - international rules. Guess what - shocker, they lied. In the words of Lenin: "Capitalists will sell the rope by which we will hang them" Too true.

Now China steals trillions. Through theft of intellectual property and developing technologies, below cost pricing, blockage of US and international imports and currency manipulation. Their modus operandi - Lie, Cheat and Steal.

To start the Yuan has been massively undervalued. Wages in China are less than Bangladesh. 40% of all Chinese companies are controlled by the CCCP. No matter how big your corporation is you can't compete with the Communist Party. Chinese companies that operate at a loss are backstopped. China now produces more cement, steel and ships than the REST of the WORLD COMBINED. Chinese companies are subsidized to the tune of $400 billion a year and that number is growing.

Then there are the conditions. Millions of rural farmers are denied social services so they must go to work in factories. 90% of Chinese groundwater is undrinkable and half of river water. Can't even be used to irrigate crops. 500,000,000 Chinese die every year from air pollution. Meanwhile we are regulated to death.

Back to #2 for a sec - Taiwan

Taiwan lies 100 miles off the coast of China. It is where the Nationalists retreated when they lost the Chinese Civil War to Mao and the Communists. It has long been considered strategically significant. MacArthur called it, "The unsinkable aircraft carrier..." Without its control, China's ability to project its power beyond its shore is compromised.

Three times China went to the brink of war against Taiwan. Each time they backed down because of the US. But make no mistake it is lurking. Inexorably it seeks to increase its influence and eventually control. In 2022, China flew into Taiwanese airspace 1700 times. More than the previous three years combined. Testing, probing.

Taiwan spends only 2.6% of its economy on defense. China outspends Taiwan 25 to 1. And, we know where the US stands.

Cotton reports that in "war game simulations, I never saw a happy outcome." The former Vice Chair of the Joint Chiefs after one such war game said the US, "...performed laughably. The Chinese ran rings around us." In a 2023 simulation, the Chinese successfully landed 80,000 troops on the island.

Better get those TSMC chip factories up and running in AZ damn soon.

The bipartisan Intellectual Property Commission reports we lose $225-600 billion in patents, trade secrets, blueprints, sensitive data and formulas every year. Mostly to China. This theft occurs through cyber hacking, of course. It also occurs via thousands of Chinese spies in our universities, government research labs and corporations. And it occurs because we just give it to them as the price for doing business in China. Dupont, GM, IBM, Google are just a few examples of US companies that turned over sophisticated technology and designs in return for being able to operate in Communist China.

Green is New Red

And we played right into their hands. As Biden spend billions on green energy guess who benefitted with their subsidized industries. Yup, The Reds. In 2000, the Chinese produced 1% of the world's solar cells. Today they produce 80% soon on its way to 95%. Trump imposed hefty tariffs to level the playing field. China responded by shipping through Southeast Asian companies. They got caught and guess who waived the penalties? Crooked Joe Biden.

Today China produces 60% of wind turbines, 2/3 of electric vehicles and 80% of electric batteries. Green is the new Red. And another US industry bites the dust.

And China has no compunction about interfering directly.

They banned salmon from Norway because the Nobel Peace Prize was given to a Chinese human rights advocate.

Bananas from the Philippines, pork and canola from Canada, Australian beef and cotton, Japanese seafood, Taiwanese fruit and fish, Czech pianos, and so on.

They use bans not just to punish but as weapons. They cut off the Japanese auto industry from rare earths. They threatened to do the same to the US. Many of the pharmaceuticals on which Americans depend come from China. Last year, the state media speculated the if supplies were interrupted, "The United States might sink into the hell of a novel coronavirus epidemic." And you wonder if Covid came from a Wuhan lab?

Finally there is the well-chronicled Belt & Road Initiative.

Modern day version of the Silk Road. China goes into a poor or lower middle income nation (150 of them now) and finances an infrastructure project. The majority of these are fiscally unsound. Like the $210 million airport in Sri Lanka that serves 7 passengers a day. Or the Belgrade to Budapest rail line that will take 2500 years to show a profit. Or the railway to nowhere in East Africa. So far, the BRI represents an investment of $1 trillion or 7X that of the Marshall Plan.

China provides total financing, which most nations can never pay back. They then bring in Chinese contractors and Chinese workers, so the money flows back to China. Local industries are hollowed out and nations are saddled with crushing debt.

China's plan? As Vito Corleone famously said, "Someday, and that day may never come, I will call upon you to do a great service for me." Oh you can bet - that day will come.

Up next - #3: China has Infiltrated Our Society.

Gettin' Schoolin' Right in Cajun Country.

As reported the educational performance of US kids is pathetic (#40 in the world) and continues to sink. No telling how much damage this will ultimately wreak on American prosperity in the decades to come.

Does, however, seem like progress is being made in that world renown educational bastion - the Bayou.

The Pelican State was the rare bright spot on the NAEP results, jumping from 49th place nationwide to 32nd in overall scores. Louisiana was the only state to recover its pre-pandemic scores in reading, actually improving 6 points above its 2019 results.

So, what is the magic elixir? Ed Superintendent Cade Brumley ascribes progress to "just getting back to basics".

Among other education initiatives, Louisiana’s Legislature in 2021 implemented Act 108, mandating that all early-grade teachers, from kindergarten to third grade, complete a course on the “science of reading.”

This intense, research-based training focuses heavily on methods to teach phonics and phonemic awareness — old-school principles that many educators have abandoned in favor of highly deficient “balanced literacy” principles like memorization, “picture power” and guesswork.

Louisiana isn’t just succeeding in reading — its students’ math results are up too. Math scores for Louisiana fourth-graders “were top five in the nation for math growth,” the state’s department of education boasted.

To emphasize the critical importance of math basics, “We’ve done symbolic things, like shipping old-school flash cards with math facts to every elementary school in the state,” Brumley told the education website The 74.

Perhaps more important, Louisiana passed a state law requiring in-school “high-dosage tutoring” services for kids in kindergarten through grade 5.

“Every student in those grades who is not proficient in reading or math has to receive high-dosage tutoring throughout the week to improve outcomes,” Brumley said. 

It’s not rocket science — in fact, it’s the way schools used to be run until they became overwhelmed with trendy ideas and filled with teachers looking to indoctrinate kids with political thought instead of the ABCs. Or, as we used to call it - the 3 Rs - readin', ritin', rithmatic.

Louisiana’s education initiatives go hand in hand with transparency. Kids are given literacy tests throughout the year, and parents are informed of the results of these assessments, so there is no surprise if their kid is struggling.

In another huge change, Louisiana is working to end social promotion, the practice of just moving kids along to the next grade if they aren’t performing at grade level. A new state law mandates that third-graders who are far behind their grade level in reading must repeat the year, and Brumley is encouraging a “merit matters” philosophy in every grade throughout the state. 

It should be obvious (except to Liberals) that kids who can’t do the work in one grade shouldn’t automatically move up to the next — but for so long, this is exactly what has happened in schools across the country.

Thanks to subscriber John for this input.

In a somewhat related vein, I have, for some time, been a fan of providing kids with better tools for learning. Proven techniques to increase the acquisition, retention and recall of information - facts, data, knowledge. I was enlightened about the power of learning proficiency by a dear friend several years ago. Think about it. Isn't learning a skill of potentially enormous value? Don't we have scientific proof how to optimize learning? Techniques for note-taking, reading for critical retention, test prep skills, etc. I think every student entering the 4th grade should be mandated to take a course in Learning Practices.

Yet nowhere is the science of learning taught to our young students.

Had Your Fill of Elections?

Don't look now but there's another biggie about to happen. Under the cloak of darkness - in the Badger State.

Obviously we all focus most of our anguish over the composition and actions of Congress and the White House. More and more, it seems the third branch of our government, the Judiciary, offers real leverage too. Those silly old judgeships about which at least I am so uneducated and pay so little attention..

The future direction of the Wisconsin Supreme Court hangs in the balance. As usual the contestants are a Pro Trump, America first conservative and a Woke activist. The liberal candidate, Susan Crawford, has promised redistricting to shift two House seats to the left, overhaul of abortion laws and a bunch of other draconian actions. Even though judges are supposed to uphold the law, not takes sides and remake it.

Monies are pouring in from leftwing sources. The usual suspects - Soros, Pritzker etc. Turnouts for post Presidential judicial elections in April are famously low. This is what the left is counting on to swing the court their way.

Day after day, we see examples of left leaning courts using judicial power to thwart the will of the American voters. Heck, just the other day an Obama judge ordered Trump to return the Tren de Aragua gang members he was deporting to El Salvador. Now what American in their right mind would order the Commander in Chief to BRING BACK proven murderers and rapists who were here illegally? C'mon man.

Keep an eye on the courts. As mentioned, the SCOTUS could be a busy beaver as it is forced to weigh in on countless leftwing efforts to forestall the Trump machine and deny voter's will.

Could Have Been Home Months Ago

Elon Musk offered Biden the services of Space X to bring home the stranded astronauts MONTHS AGO. His offer was rejected for political reasons. America first.

It was Nixon Said It First

I was under the impression that the term "Peace with Strength" was coined by Ronald Reagan. As you know, it is the foundation of foreign policy for the current administration. Turns out its first utterance was not by Reagan but by Richard Nixon when positioning his decision to extend a hand to China. As you will recall, it was Nixon and Kissinger who opened the door for China to become a world trade partner.

Although he left in utter disgrace, I always believed Richard Nixon was a deep and savvy thinker. His foreign policy was based on three principles:

1. Peace through Strength

2. Shared Respect

3. Determination to Negotiate.

   
   

Sound like anyone you know? I get a charge out of all the talking heads who criticize Trump for his handling of the UKRAINE end the war initiatives. They accuse him of being tough on Zelensky while treating Putin with kid gloves, even being soft.

Such pandering dummies. Did they never hear of low-hanging fruit? In a negotiation where you have one party who is an ally and the other an enemy, it is just common sense to shape the ally's position first. It is also common sense that treating one's adversary with respect is the better way to exact cooperation. Something about flies with honey.

Houthis Matter

When I first heard of the Houthi rebels in Yemen staging attacks on foreign ships in the Red Sea, I thought little about it. A rag tag bunch of terrorists - how much damage can they do? Even though Iran is backing. China too.

Well, not the case. By effectively closing the Red Sea as a shipping lane for international goods traveling worldwide, ships must now travel around the horn of Africa rather than through the Red Sea then the Suez Canal into the Mediterranean. This adds 10-14 days to each voyage and massive amounts of extra fuel. 90% of ships now avoid the Red Sea. Results?

• The average cost of a shipping a 40-foot container has risen from $1500 to $3000.

• It costs the journey of an average container ship $1 million more in added fuel.

• Inflation rate will increase by 33%.

• 30 Ships have been majorly damaged by Houthis drones (remember who makes them).

• All toll, there have been 174 Houthi attacks on US warships and 145 on commercial vessels since 2023.

• Normally the Suez Canal handles $1 trillion in goods per year. Today it is close to zero.

So now I understand better why President Trump gave the order to take the Houthis out. Wonder why the Euros never stepped up. Isn't the Med closer to them? Another fun fact, on average a $50,000 missile is needed to shoot down a $50 Chinese-made drone. Never mind the drones, time to erase the guys launching them.

It's Official - Iran's Behind It All

Following a year of significant setbacks in the Middle East for Iran with its proxy forces flagging in the Gaza Strip, Lebanon and Syria, Tehran is leaning on its influence over the Houthi terrorist group in Yemen to carry out its offensive aims. 

According to findings just obtained by the Iranian resistance group called the People’s Mojahedin Organization of Iran, not only are some of Iran’s most senior military officials in its Islamic Revolutionary Guard Corps (IRGC) involved in Houthi decision-making, but Iranian Supreme Leader Ayatollah Ali Khamenei has his thumb on the deadly group. 

President Donald Trump’s recent threats against Tehran over its sponsorship of the Houthis are supported in the report, which claims well-placed sources have confirmed that one of the most senior commanders in the IRGC’s Quds Force – the elite branch of the Iranian military – is "directly commanding Houthi activities."

Another Trump Win...this time in Mexico

An extraordinary episode in the two centuries of Mexican-American relations unfolded on Feb. 27, as aircraft of the Mexican state flew northward to various locations across the United States. They carried within them 29 of the most-wanted Mexican-cartel leaders hitherto held in their own country, and now remanded to the justice of the Americans. 

Most meaningfully, the aging Rafa Caro Quintero stepped off a plane to the welcome of the DEA and DOJ personnel whose colleague, Enrique "Kiki" Camarena, he murdered 40 years before. Arraigned the next day in a U.S. federal courtroom, Caro Quintero was shackled with Camarena’s own handcuffs.  The United States has waited a long time for him, and for the many other cartel lords and killers who now come into our hands. 

The questions are why Mexico has waited, and why it no longer waits, if only in these specific cases. Caro Quintero and the other 28 cartel leaders had been prisoners of Mexico for years, and the United States had been requesting their extradition for years. In 2022, the Biden regime even gave the Mexican government a list of desired extraditions, including Caro Quintero – but the previous year, 2021, had seen the lowest level of Mexican extraditions to the U.S. in 15 years, and things would not improve so long as Andres Manuel Lopez Obrador remained president.

The source of the delay is no mystery: Obrador and his ruling Morena coalition transformed Mexico into a leftist one-party state with long-standing ties to narco leaders, most notably within the Sinaloa Cartel. This Mexican state-cartel synthesis, called by the White House "the intolerable alliance," effectively precluded meaningful and strategic cooperation between the two nations against its criminal cartels. 

What has changed? In a word (actually two): Donald Trump. Trump has long believed a deal was possible. He now possesses an accurate assessment of the Mexican state’s basic nature, and is making policy accordingly.

Only Trump could give the Mexican government these kind of stones (aka cojones). Yeah for tariffs. Little doubt that was the leverage! Now we get to talk directly and hopefully extract treasure troughs of useful info.

The Turning Point

...in Kamala's demise may well have occurred on that cesspool of all talk shows, The View. When she was asked what many called the "money question:" What would she have done differently from President Joe Biden? She responded, "There is not a thing that comes to mind."

Can you imagine that? Underwater in the polls, the incumbent tossed to the curb and Kamala proposes to do everything the same. Brilliant.

Of course, there was another factor. Trump gave American's concrete reasons to vote for him. Kamala? Not so much.

Scary Stuff

Of course, we are all aware of the dangers associated with hacking and cyber crime. I recently had to shut down a PNC account, reroute deposits and bill pays and get a new debit card. Scam was so real when I showed the PNC bank manager the texts I was getting she thought it was legit. She called the associated number. They called her a be-atch and hung up. She said she spends 80% of her days sorting out scams for her clients. They are getting so damn good. Lord knows how many times I've replaced credit cards.

The following podcast relates an example. Happened to a Disney employee through his company as well as personal accounts. Cost him his job. Worth a listen if you'd like to a taste for how much damage this stuff can wreak.

https://www.wsj.com/podcasts/the-journal/the-download-that-led-to-a-massive-hack-at-disney/50791f04-b675-4e9e-a033-7c4d37cd523b

Evil Elon

Makes you sick, no? Dems and LSM all of sudden hate Elon. The guy who voted for Hilary in '16 and Biden in '20.

The guy who just brought home the astronauts Biden abandoned in space. The guy who did more for climate change with electric cars than any CEO on the planet. The guy who gave internet to devasted communities via Starlink. The guy who's trying to alleviate mass transit congestion with tunnels.

So, what's the problem that Libs are burning Teslas and shooting bullets at Tesla dealerships? That leftwing talk shows are cheering when Tesla stock takes a dip?

Oh, it must be because Elon is trying to cut the billions in taxpayer monies that are going down the drain due to government waste, fraud and outright theft.

Or could it be because he saw the light and decided the only realistic path forward to save America runs through Trump? Duh.

Education leaders say Trump dismantling key government agency ‘will save education’ (FN: Headline)

Earlier this month, the Trump administration announced a dramatic "reduction in force" of the federal Department of Education and detailed plans to reduce the size of the agency by over 50% from around 4,133 to around 2,183 employees Trump has previously said he wants to "close up the Department of Education" entirely and "move education back to the states."

Ryan Walters, Head of Public Schools in OK, said, "I was very sharp in my responses of why are we talking about transgenderism in an Algebra One class? Like there's no connection between the two, but it shows you how far they were willing to go with their woke ideology, with the strategy to undermine American society, undermine the family unit.

Test scores have all gotten worse since this disruption occurred," he explained. "Nearly every society factor has gotten worse. You look at teenage suicide. You look at teenage drug use. You look at the disintegration of the family unit. All of these things coincided in part with the creation of the federal Department of Education and the rise of the teachers’ unions."  

"Since the creation of the Department of Education, student achievement has only declined," new Education Secretary Linda McMahon said. "We've got a real crisis on our hands. I think the fact that the majority of American children are not learning to read is one of the biggest national security threats that we face as a nation."

Data from the National Assessment of Education Progress, commonly known as the Nation’s Report Card, shows math proficiency at 39% for 4th graders and 28% for 8th graders. Reading proficiency isn’t much better, at 31% and 30% respectively.

Have a nice weekend.