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The World Turns on China – Prepare for a Geopolitical Recession

In the next 10 years, all global systems will break apart and follow the model developed by the United States, or a new system developed by China. These systems will be the internet, telecommunications, new military treaties, and finance. There will be a polarized world and China, like the 1970s Soviet Union, will see its economy become more isolated and its internal political system fragmented. There is a reason President Xi made himself President-for-Life recently. China may possibly face shocking internal and external struggles in the future. Prepare yourself. 

The 1970s Soviet Union was a rising power, while the United States was said to be the fading power and the natural state of the world would be that the United States would give way to Communism. President Ronald Reagan was elected and reminded the world that it would take 40 years to defeat Communism, but he did it in only eight years. This was because the Soviet Union was built on a  hopelessly inefficient economy, a Soviet Command Style economy that was doomed to failure. Despite building state-of-the-art submarines, tanks, and fighter jets, the Soviet citizens were waiting three hours in lines, fighting for bread, cigarettes, and vodka. Under the Reagan pressure, the Soviet system collapsed. 

Fast forward to the 1990s, and the rise of China, with many prognosticating it dwarf its neighbor, as well as other nations in the region, known then as “Asian Tigers”. China was moving onto the world stage and like the 1970s Soviet Union, it seemed to be invincible, a powerhouse that would take over Asian economy first, then the global economy. The China Push as we at Classiarius call it was to take control of the immediate surroundings, the South China Sea, while it invested in Africa to ensure a non-stop flow of raw materials and commodities, while it focused on manufacturing and becoming the factory of the world. In the 1990s, China declared economic war on its Asian neighbors and the United States, and now, all of these countries, Japan, Vietnam, South Korea, Australia and a growing list of others have suddenly taken notice. As a response, the elected officials in all countries are looking at China through a very different lens – they are signing new sets of economic, trade, and military treaties amongst themselves, and China is being left out in the cold. It is now desperately gobbling up islands in the South China Sea and challenging Japan, Vietnam, the Philippines, Malaysia, Thailand, and Indonesia for territory while and ever watchful  United States is signing military treaties in combinations of US-Japan-India-Australia – again for the sole purpose, as it has from the end of WWII – to contain China. 

Please see our recent video on the Unsinkable Aircraft Carrier. 

JMB

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Classarius is the only data driven news for blockchain, cryptocurrencies and technology from investment professionals.
Disclaimer: We do not provide investment advice or strategies, this article is not intended as such but only to provide you the reader with information. Please conduct your own research before any investment of any kind.

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