Dear Reader,

The globalist dream for China has ‘crashed and burned’, says Jim Rickards in today’s Daily Reckoning Australia, as the US and other Western nations turn their backs on the communist country.

The US may have washed its hands of China, but that doesn’t mean the situation at home is any better. In fact, social unrest is at an all-time high in many American cities.

And according to Jim, there’s more violence on the way — regardless of who wins the election in November.

By the way, if you want to hear Jim’s views on the Australian economy, register here for a free webinar run by our friends at the DG Institute.

Read on for more.

Cheers,

Shae Russell,
Editor, The Daily Reckoning Australia

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The Shape of Things to Come

For almost 20 years, the myth of a ‘rising China’ and the ‘Chinese century’ has been gathering steam. Of course, the US is recognised as a superpower now, but its days as the greatest power in the world were numbered, according to this myth.

China was prized both by US manufacturers for its cheap labour and by US consumers for the cheap prices on Chinese exports (never mind that the goods were shoddy with few exceptions and often fell apart not long after you removed them from their glossy clamshell wrappers).

The globalists praised the advent of highly integrated supply chains and just-in-time logistics that would bind global economies together and pave the way for One World governance, taxation, and money. There was only one problem with this…

The narrative was completely false

Chinese labour is running low because as many as possible have already moved from the country to the city. Tight supply chains proved fragile as we saw during the COVID-19 pandemic when the US could not get protective gear made in China, and China threatened to cut off exports of antibiotics to the US. Our craze for cheap Chinese goods meant that China piled up over $1.4 trillion in US Treasury notes, which makes China our biggest creditor.

Beyond that are horrific human rights abuses such as organ harvesting (without anaesthetic) from political dissidents, concentration camps, re-education camps, forced abortions, forced sterilisations, firing squads, and more.

The Silicon Valley CEOs simply turned a blind eye in pursuit of profits. The cost in lost US jobs was catastrophic. The China myth has now been revealed to be a fraud, as explained here.

China has shown its true colours by suppressing freedom in Hong Kong in violation of a treaty with the UK that was supposed to run until 2047. China’s military is weak, its economy is bloated with unpayable debt, and it is alienating potential friends from Australia to Japan (and beyond).

The globalist dream for China has crashed and burned. Good riddance.

Meanwhile, in the US…

25 May 2020 was the day George Floyd died at the hands of Minneapolis police. The police officers were fired and charged with various crimes, including second-degree murder. That criminal case is now taking its course. Peaceful protests broke out across the country, demonstrating against the Floyd death, but also other deaths at the hands of police and racial inequality in general.

Unfortunately, the peaceful protests were accompanied almost immediately by violent actions, including smashing windows, looting stores, burning buildings, and physical assaults on the police and innocent civilians. The protests have continued, and so have the riots.

Over at the Washington Examiner, they describe how rioters set fire to the Police Association office building in Portland, Oregon on 18 July. Disturbances have continued in Portland. The federal courthouse there was threatened with destruction.

President Trump sent in domestic law enforcement personnel under the jurisdiction of the Department of Homeland Security to protect federal property, including the courthouse. Surveillance in unmarked cars, tactical weapons, and camouflage uniforms were all used to facilitate the deployment of law enforcement and to help make arrests of those promoting the violence.

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Whoever wins the election, there’s more violence on the way

It would be nice to think that the violence was winding down since 25 May and the pockets of violence like in Portland were the exception. That is not the case.

It’s true that there is less violence now than in early June. That’s partly due to Biden signing on to the radical agenda and his big lead in the polls. The radicals see that they may get what they want (including a radical VP selection) and reason that there’s no need for violence if they can advance their agenda through a Biden White House.

That’s at best a truce. If Biden wins, the demands will ratchet up (they always do when you’re dealing with ideologues and revolutionaries). If Trump wins, the radicals will conclude they have nothing left to lose (and won’t wait four more years) and will unleash a new wave of violence almost immediately.

Either way, there’s more violence on the way. Investors need to avoid urban commercial real estate since it will suffer from migration by those looking to escape chaotic cities. Some allocation to the traditional safe havens of gold, cash, and Treasury notes will also serve you well.

All the best,

Jim Rickards,
Strategist, The Daily Reckoning Australia