By SIMPLICIUS, THE THINKER*

Janet Yellen sent to China to plead for face-saving slowdown

1.

The US' growing urgency to “contain” China's development was starkly revealed this week when Janet Yellen arrived in Beijing for what turned out to be an execrable beggar's walk. Just days before her arrival, she had stirred the critics with her historically memorable exclamation that China was now operating with “excess capacity” [“overcapacity”] (!!).

What is excess capacity?, you ask. It's a new expression for me too, so let's consult the dictionary together.

overcapacity, noun, (1) When the increased economic activity of an insolent and upstart nation utterly humiliates the reigning hegemon's own tottering economy, causing the many expensive dentures and porcelain implants of the ruling class gerontocracy to rattle and squeak with moral indignation and jealousy. (1b) An undesirable situation that causes Janet Yellen and Nancy Pelosi's stock portfolios to sag like a pair of botoxed jowls.

It's true... my dictionary may be slightly different from yours, I have a rare edition. That being said, are we on the same page? Excellent.

The above definition may not be in the language of the regime's new official pamphlet, but it is safe to say that inept US leaders are inventing creative new euphemisms to describe China's total stripping and subversion of the economic order. But if you were skeptical about the meaning behind the laughable solecism “overcapacity” [“excess capacity”] by Janet Yellen, her speech on China confirms precisely what is on the regime’s mind: “China is now simply too big for the rest of the world to absorb this enormous capacity. Actions taken today by the PRC could change world prices…”

And the bomb: “When the global market is flooded with cheap Chinese products, the viability of American companies is called into question.”

Well, I would say. The important distinction to note in the above statement is that, for a long time, the nickname “cheap” used to describe Chinese products often referred, and covertly, to their customer service, in the secondary sense of the definition. Here, Janet Yellen is referring to “cheap” as price: the distinction is significant because it refers to the fact that Chinese manufacturing processes have simply far exceeded efficiency in the West, as recently highlighted by electric car factory videos from Xiaomi with its own native Giga Press, which it claims is capable of producing a car every 17 seconds.

The fact is that China is simply overtaking the decrepit, deteriorating United States in every respect and panicked elites have sent Yellen to China to plead for a “slowdown” that will not embarrass them on the world stage.

How is China doing this? Let's look at some of the most striking ways.

2.

First of all, it has become almost an old-fashioned cliché to observe: “the US finances wars, while China finances development”. But this is really true. Think about this for a moment:

The above reflection is factual: the Esquire reported that research from Brown University concluded that the US has spent an ineffable 14 trillion dollars on wars since 11/XNUMX: “Take, for example, wars. In total, according to Brown University's Costs of War project, the USA spent more than 8 trillion dollars in two decades fighting its post-11/14 wars. But more than that, literally, Brown researchers discovered that the Pentagon has spent $XNUMX trillion since the start of the War in Afghanistan as part of a new search about the destination of the money. In other words, who benefited from the profits of war? The answer is: defense contractors, who received between a third and half of that money” (https://www.esquire.com/news-politics/a37575881/14-trillion-defense-spending-costs-of-war-project/).

And yes, the current US debt is a whopping 34 trillion dollars. This means that almost literally half of all current US debt has been spent on endless, senseless, genocidal wars in the Middle East.

The US wasted all its blood and treasure on the war. Imagine what the US could have built with 14 trillion dollars? Where could the US be in relation to China with that amount? As someone noted, the US could very well have built its own own “belt and road” initiative with this money, connecting the world and reaping incalculable benefits.

China has not spent a penny on wars and invests everything in economic development and the well-being of its own people.

China is taking the lion's share of construction projects in Africa.

Chinese companies accounted for 31% of African infrastructure contracts valued at $50 million or more in 2022, compared with 12% for Western firms, according to a new study.

It is worth noting that in the 1990s, around eight in 10 infrastructure construction contracts in Africa were won by Western companies.

The statistics illustrating this fact are endless:

What makes this historic misappropriation of American funds more tragic is that nothing This was done for the benefit of the American people. The entire operation was carried out by an ethnic cabal within the US government, with allegiances only to Israel, and no one else. I am speaking, of course, of the PNAC [Project for the New American Century] clan, which masterminded the entire scope of the 21st century wars, which have plunged America into deplorable shame and misery, irreversibly eviscerating the country and dilapidating its global standing. These wars had nothing to do with America's interests or national security and did nothing more than make Americans less safe and the entire world more dangerous and unstable.

China does not have this problem: there is no hostile “outside” group parasitizing its country's leadership, literally assassinating (JFK) and blackmailing its presidents (Bill Clinton). China can therefore focus on the interests of its own people.

And yes, for those wondering, it is now proven that Lewinsky was a Mossad trap used to blackmail Clinton into agreeing to various Israeli demands regarding the Oslo Accords, the Wye River Memorandum, etc.

The fact is that Israel is a destructive parasite that sucks the lifeblood out of America, causing its host to wage unnecessary wars in its name that have completely eliminated any competitive advantages the country could have had over its Chinese “rival.”

3.

As a corollary of what was stated above, beyond the simple kinetic nature of wasteful wars, America wastes an exorbitant amount of money just in maintaining and conserving its global hegemony. The reason is that it costs a lot of money to “enforce the law”, forcing the vassals who hate us to comply with it.

China does not form vassals, it forms partners. This means it spends comparatively much less spreading its influence, as such influence features compounding abilities due to the fair bilateral nature of China's agreements. The US has to spend comparatively inordinate amounts of blood and treasure to maintain the same level of “influence”, because this “influence” is completely artificial, concocted from a poisonous mix of fear, strong-arm tactics, and economic terrorism that leads to a detrimental reaction to the US economy, etc. In short, these are mafia tactics rather than true business partnerships.

A big difference between China and the US is that China is open to sharing the land, willing to prosper together with the US. On the contrary, the US is not willing to give up its global domination:

This fact was highlighted by Graham Allison, creator of the expression “Thucydides Trap” in relation to the USA and China. A Thucydides Trap, as some will know, describes a situation in which an emerging power begins to displace an established global power and how, historically, this almost always leads to a major war. To popularize the theory regarding the US/China, Graham Allison used the historical example of the Peloponnesian war, in which a cautious Sparta was forced to face the emerging power of Athens.

Graham Allison was recently invited by President Xi to a forum of US business leaders, where Xi told him directly:

Contrast President Xi’s generous statements with those of tempestuous, guilt-ridden, bloodthirsty conniving Western “executives.” In fact, Xi called for more exchanges between China and the US in order to entwine the two countries in mutual understanding, to avoid the Thucydides Trap (https://youtu.be/3jY_Xrvp0xg):

This is the enduring image of what global leadership and the principles it embodies should truly look like.

However, when we think about America's progressive decline, the only image that comes to mind is that of a cornered, wide-eyed rodent, bitterly frightened but dangerous, conspiring on how to inflict harm and suffering on the world in order to mask your own decadence.

4.

The United States government does a serious disservice to its own development by falsifying all of its economic accounts. At times and to some extent, all countries do this – and given the US's notoriously frequent accusations of China in this regard, one might think that China is the most flagrant violator – but in fact no one does. does more than the current US regime.

The recent “jobs” report, touted as a major victory by the Biden administration, was a shameful hoax. The administration presented important employment figures:

But ultimately, all of the jobs were part-time, federal jobs, or illegal:

In fact, the US economy is in an atrocious situation, with very high inflation.

Here's Jesse Watters revealing this: “The Fed chairman just confessed that #Bidenomics is just a job fair for migrants. In fact, there are a million fewer American citizens currently working than in 2020.”

Biden created 5 million jobs for migrants! Therefore, do not be fooled by their propaganda that is spewed out by the liberal machine. You don't matter!

The data is even more interesting when compared with the economic situation in China. As explains the next tweeter: “Although Chinese incomes are lower than American incomes, Chinese people have much higher net worth than Americans. As? They own apartments at a much higher rate and with much more equity than Americans. The view of the mean and median is even more beautiful. This chart is pretty much the only thing you need to understand about the difference between the economies of China and the United States. But you really need to understand it and have a deep understanding of its meaning.”

The number of people who own their own home in the US is falling precipitously to around 60%, while in China it is currently above 90%:

5.

This naturally raises the question of how China can do these things while the US cannot. One of the answers comes of this fascinating explanation which shows that, contrary to the West's image of China as some kind of rigidly authoritarian system, forward-looking President Xi Jinping is actually using very advanced models of economic experimentation to keep the Chinese economy so innovative, agile and flexible as possible.

In short, an in-depth study of thousands of official documents shows a huge increase in language promoting economic experimentation in directives issued under Xi Jinping.

Added to this is the most important point of all: that, under the presidency of Xi Jinping, China began a meticulous plan to contain financialization and speculation of the “Western model” in its economy. This is where it starts to get important, so buckle up.

One of the good analysis of this issue is presented here by Chinese academic Thomas Hon Wing Polin, which is based on this recent article:

The article provides a brief history of financialization, from Genoese bankers to modern times, noting the historical cycles that precipitated America's current deterioration: “Observers of current American hegemony will recognize the transformation of the global system as a function of American interests. Maintaining an ideologically charged 'rules-based' order – ostensibly for the benefit of all – falls squarely into the category of confluence of national and international interests. However, the previous hegemon, the British, had its own version that incorporated both free trade policies and a corresponding ideology that emphasized the wealth of nations over national sovereignty.”

When describing the cycle of financialization and its relationship with the death of empires, the article makes reference to the case of Great Britain: “For example, the hegemon in office at the time, Great Britain, was the country most affected by the so-called Long Depression of 1873-1896, a prolonged period of malaise that saw Britain's industrial growth slow and its economic position decline. Arrighi identifies this period as the 'signal of the crisis' – the point in the cycle at which the productive vigor and financialization sets in.”

“And yet, as Giovanni Arrighi quotes David Landes' 1969 book, Prometheus Unchained, “as if by magic, the wheel turned.” In the last years of the century, business suddenly improved and profits increased. 'Confidence returned – not the patchy, evanescent confidence of the brief booms that had punctuated the gloom of previous decades, but a general euphoria such as had not prevailed since… the early 1870s… Across Western Europe, these years live in memory like the good old days – the Edwardian era, la belle époque'. Everything felt right again.”

“However, there is nothing magical about the sudden recovery in profits,” he explains. John Arrighi. What happened was that “as its industrial supremacy waned, its finances triumphed, and its services as shipper, trader, insurance broker, and intermediary in the world payments system became more indispensable than ever.”

In short: as an empire dies and loses its industrial and production capacity, finance takes control, giving rise to huge bubbles of false speculative money that give the brief appearance of economic prosperity – for some time. This is what is currently happening in the US, which is drowning in its self-created agony of debt, poverty, corruption and global destabilization.

One thing to note – if I may make this not-so-brief aside – is that the entire Western system is based on institutionalized economic sabotage and subversion of the developing world. Books such as the following address some of these aspects:

The rise of the underground economy: The book reveals how the United States' underground economy evolved in parallel with its legitimate economy, exploiting loopholes and taking advantage of secret jurisdictions to facilitate illegal activities such as drug trafficking, weapons smuggling and money laundering.

The “dark” side of globalization: Mills challenges the prevailing narrative of globalization as a force for progress, highlighting how it has facilitated the expansion of illicit networks across borders and allowed criminal enterprises to flourish.

The complicity of financial institutions: The author examines the role played by major financial institutions in enabling money laundering and illicit transactions. It emphasizes the need for stricter regulation and accountability to prevent banks from becoming facilitators of clandestine activities.

I challenge you to read the notes on National Memorandum 200 if you haven't heard of it yet: https://en.wikipedia.org/wiki/National_Security_Study_Memorandum_200

By the way, John Michael Greer just write a new column about the neologism he himself coined: Lenocracy, which derives from the Latin “leno” for pimp; that is, a government run by pimps, or pimpocracy.

His definition of pimps, in this case, is that of intermediaries who are the classic rent thieves – or rentier class – who extract economic rents without adding any value to the economy – all Michael Hudson territory, for those in the know.

Follow me, I promise all this will form an overview of China.

John Michael Greer characterizes “pimps” as basically all unelected, bureaucratic, red-ribbon-weaving, blood-sucking money vultures, killing growth and livelihoods, each of them nibbling at the carcass of the working class, demanding a small transactional fee at every step of the business routine in Western nations, particularly in the USA. This situation has served to stifle the average small business or entrepreneurship in general, not to mention the large venture capital investors who are, for the most part, subsidiaries of global financial and investment companies. This is part and parcel of the country's lethal “financialization”, which has been the bane of its future.

Returning now to Thomas Hon Wing Polin's summary and his relationship to the subject. He watches: “It is noteworthy that the leadership of the Chinese Communist Party has recently launched a major initiative to transform China into a 'great financial power', with a financial system 'based on the real economy'. This would be the antithesis of Anglo-style economic financialization -American".

The author uses the following article:

                                 

Read the last part: “…leaving aside pure profit-making.”

Pay attention to this great move:

“Beijing is moving forward with this epic project. China's 461 trillion yuan ($63,7 trillion) financial industry and its regulatory regime will take high priority in a broad economic reshuffle engineered by the country's top leadership, with the sector reshaped to serve national goals such as sustainable growth and advance in the global technological race”.

Are you already starting to notice? If not yet, here's the final kicker: “Specifically, he promised to intervene in Wall Street-style practices considered unsustainable and crisis-prone, and move toward functionality as a primary value for the financial system, rather than profitability.

It also demanded that Chinese financial institutions have 'greater efficiency' than their counterparts in the capitalist world and provide inclusive and accessible services in the pursuit of common prosperity.”

“Like it or not, banks and other supply-side institutions should expect top-down directives and reviews led by the Central Financial Commission,” said Zhu Tian, ​​professor at China Europe International Business School (CEIBS).”

“Reforms have long been needed to benefit the real economy,” Hu said.

And here it is. Essentially: China is creating a revolution, charting a new financial path away from the wild excesses of the West in a bold new direction. Finance that benefits the real economy, the common man, the people. This is what the fig leaf Rothschild-driven 'shareholder capitalism' aims to to be, or better yet: pretend to be.

It's hard not to wax poetic about these developments, because they are truly groundbreaking. China is paving a new path for the entire world. The Chinese banking sector is now by far the largest in the world and President Xi Jinping has wisely put his foot down with a bold edict: we will not follow the path of destruction chosen by the West, we will forge our own new path.

It is an iconoclastic revolution, which breaks paradigms and puts an end to six centuries of domination of world finance by the Old Nobility, from the Genoese bankers allied with the Spanish Crown to the Dutch and later English banking system, which continues to enslave the world and is designated by a variety of names in the dissident sphere: from Hydra, to Leviathan, and Cthulhu, simply: Kabbalah.

All these 600 years are going up in smoke with China's repudiation of the “old standards”, which privilege predatory, deceptive and extractive terms and practices, intended to benefit only the elite class of the Old Nobility. The Chinese system is true stakeholder finance: the government will force bankers to submit to its will, ensuring that finance first serves the common good and the people, rather than speculation, financialization, capitalization and all the other wicked inventions of the western Old Nobility class.

Start like this:

“…bringing an end to the age of greed is a good thing.”

Best of all: “The government called on banks to abandon Western-style ethics and adopt a perspective in line with broader economic priorities.” It's a revolution in progress.

But if you're thinking that my dramatic flights above are a little too close to hyperbole or idealism, you might be right. I, of course, continue to proceed with caution; We cannot be sure that China will be successful in its great demolition of the old paradigm. But all signs so far point to early success, and, most importantly, it is clear that China has a leader who fundamentally understands these things at the deepest level. Not only are Western leaders unable to conceive of the complexities involved in controlling capital, they are unable to do so for the simple fact that they are completely bought and paid for. by representatives of this same class of capital. The cabal of capital is so deeply and institutionally embedded in Western governmental systems that it is simply impossible to imagine them being able to see “the forest for the trees” from within the forest itself.

By the way, in view of the above, here is the truly desperate, pathetically envious and face-saving Western attempt to tarnish and mischaracterize China's new direction:

Like this:

The text above is particularly surprising in its admissions. Read carefully: “European and North American market economies are struggling to survive against China's 'very effective' alternative economic model, a top US trade representative warned, according to Euractiv.

Katherine Tai told a conference in Brussels on Thursday that Beijing's 'non-mercantilist' policies will cause serious economic and political damage unless they are countered through appropriate 'countermeasures'. Tai's statements were made at the start of the EU-US Trade and Technology Council (TTC) in Leuven, Belgium.

“I think what we see in terms of the challenge posed to us by China is… the ability of our companies to survive in competition with a very effective economic system,” Tai said in response to a question from Euractiv.”

In short: China is not playing fair – in fact, it is prioritizing its people and its economy over financial speculation, which makes its companies outperform ours!

But what she is actually saying gets to the essence of the difference between the two systems. The trade official described China as a system “that we define as being non-market, as being fundamentally powered in another way, against which a market system like ours will have difficulty competing and surviving.”

These are code words: what she means by “market” is capitalism free market, while China uses more of the central planning system, as we have already mentioned. Recall that I recently published complaints from Western officials that their companies are unable to compete with Russian defense manufacturers due to their “unfairly” efficient “central planning” style.

Also in this case, what is meant is that the Chinese government creates directives that disregard “market logic” and aim to directly improve the lives of ordinary citizens. In the West, this does not exist: todas as Market decisions are based solely on the speculations of completely unrelated financial companies, and are exclusively at the orders of a small group of the financial and banking elite at the top of the pyramid.

You see, the US is threatened because it knows it can never compete with China fairly by stifling or containing its own greedy financial elite – which leaves only one way to keep up: sabotage and war.

This is the real reason why the US is desperate to foment a Chinese invasion of Taiwan through various provocations, including sending weapons. Just as the US used Ukraine as a battering ram to bleed and weaken Russia economically by disconnecting it from Europe, the US hopes to use Taiwan against China. They would like to foment a bloody war that would leave China dejected and economically backward, to give some breathing space to the US economy, which is failing and being suffocated by greed.

But this is unlikely to work – China is too cunning to take the bait and fall into the trap. It will wait patiently for things to work out, allowing the US to drown in its own poison and endless betrayal.

No, there won't be any Thucydides Trap – it's too late for that. The Trap worked for Sparta because it was still in its prime and was able to thwart Athens. The United States is in terminal decline and would lose a war against China, which is why it hopes to stage a proxy war, cowardly using Taiwan as a battering ram. But China can read these desperate motives with the clarity of finely enamelled porcelain.

*Simplicius, The Thinker is the journalistic pseudonym of an American military and geopolitical analyst.

Translation: Fernando Lima das Neves.

Originally published on the author's page [https://simplicius76.substack.com/p/yellen-dispatched-to-beg-china-for].

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