NY Times Blames Whittle, Crowder, Shapiro, Molyneux, YouTube, for Making Alt-Right Radical


Published on Jun 11, 2019

 

 

Report: John Durham Questioning CIA Officials About Intelligence Community Assessment…


The New York Times has a report this evening surrounding U.S. Attorney John Durham questioning CIA officials about the origination of the Trump-Russia investigation.

However, a closer look at the substance underneath the NYT reporting and it doesn’t actually look like Durham is questioning the CIA about the investigation itself; rather it appears he is questioning the CIA about how they came to the conclusions within the January 7th, 2017, Intelligence Community Assessment, or ICA.

(New York Times) […] Mr. Barr wants to know more about the C.I.A. sources who helped inform its understanding of the details of the Russian interference campaign, an official has said. He also wants to better understand the intelligence that flowed from the C.I.A. to the F.B.I. in the summer of 2016.

During the final weeks of the Obama administration, the intelligence community released a declassified assessment that concluded that Mr. Putin ordered an influence campaign that “aspired to help” Mr. Trump’s electoral chances by damaging Mrs. Clinton’s. The C.I.A. and the F.B.I. reported they had high confidence in the conclusion. The National Security Agency, which conducts electronic surveillance, had a moderate degree of confidence. (read more)

Questioning the construct of the ICA is a smart direction to take for a review or investigation.  By looking at the intelligence community work-product, it’s likely Durham will cut through a lot of the chatter and get to the heart of the intelligence motives.

CTH has previously outlined how the December 29th, 2016, Joint Analysis Report on Russia Cyber Activity was a quickly compiled bunch of nonsense about Russian hacking. The JAR was followed a week later by the January 7th, 2017, Intelligence Community Assessment.   The ICA took the ridiculous construct of the JAR and then overlaid a political narrative that Russia was trying to help Donald Trump.

The claims within the ICA were/are completely silly, and manufactured specifically to present a political narrative intended to undermine President-elect Donald Trump.  The ICA was the brain-trust of John Brennan, James Clapper and James Comey.  NSA Director Mike Rogers would not sign up to the “high confidence” claims, likely because he saw through the political motives of the report.

Apparently John Durham is looking into just this aspect:  Was the ICA document a politically engineered report stemming from within a corrupt intelligence network?

The importance of that question is rather large.  All of the downstream claims about Russian activity, including the Russian indictments promoted by Rosenstein and the Mueller team, are centered around origination claims of illicit Russian activity outlined in the ICA.

If the ICA is a false political document…. then guess what?

Yep, the entire narrative from the JAR and ICA is part of a big fraud. [Which it is]

More Tech Manufacturing Companies Exit China – Nintendo and Sharp Plan Exits…


Against the intense leverage being applied by President Trump, last week Beijing doubled-down and threatened punishment against any company that would leave China and begin manufacturing elsewhere.

The totalitarian response was predictable and expected.  However, also predictable was the corporate response to the threats.

As we shared:  “China is counting on prior western investment being so significant that a corporation will be reluctant to withdraw. However, in this outlook Beijing seriously underestimates the free market because communist controlled China doesn’t understand the action of a inherently free market.

The first loss is the best loss. If walking away from an investment provides more financial security and stability than attempting to retain a grip on a tenuous position – corporations will walk away.” (more)

Now today – “Nintendo Moves Some Switch Production Out of China”:

TOKYO— Nintendo Co. is shifting some production of its Switch videogame console to Southeast Asia from China to limit the impact of possible U.S. tariffs on Chinese-made electronics, said people who work on Nintendo’s supply chain.

It is another example of manufacturers adapting to the tariff threat. Taiwan’s Foxconn Technology Group said Tuesday that it was ready to move assembly of Apple Inc.’s iPhones out of China if necessary, and Japan’s Sharp Corp. , which is controlled by Foxconn, said last week that it planned to move production of personal computers to Taiwan or Vietnam.

Kyoto-based Nintendo has traditionally relied on the Chinese factories of contract assembly companies to make its videogame hardware. That includes the Switch console, introduced in 2017. (more via WSJ)

As President Trump highlighted on May 13th, over time (and it won’t take long) there would be an exodus of multinational manufacturing away from China.  Corporations will shift their purchase agreements, manufacturing and assembly plans to ASEAN countries outside the investment ‘risk zone’ that is now China.

Notice some of the nuance (specific references) within President Trump’s tweets. Japan (Shinzo Abe), Vietnam (President Trang Dai Quang), South Korea (KORUS), Philippines and India are positioned to pick-up business

While the Red Dragon does the only thing the Red Dragon knows to do, we enter the phase when corporate interests, particularly multinationals, recognize China is a communist state-run, controlled-market, system.

The reaction from China is immensely predictable; and creates a downward spiral.  If any corporation is perceived as working against the interests of the state; the state will take control of the corporate interest.   What western business interest would want to do business within China when that reality is the landscape of every economic decision?

The willingness of China to self-immolate is the golden arrow in President Trump’s economic quiver.  The inability of China to modify itself based on downstream economic outcomes is the inherent weakness… Overlay that weakness with the zero-sum outlook and you get this quote from Chinese State-Run broadcast:

…“If the US wants to negotiate, our door is open. If you want to fight, we will fight to the end.”…

Think about the logical reality of this statement as expressed.  Put another way: ‘if you agree to our terms we will work with you; however, if you don’t agree to our terms, we will self destruct.’  That’s the economic reality of the zero-sum dragon mindset.  This inevitable position is what CTH has been outlining for several years.

President Trump has walked Chairman Xi into a trap. There is only downside for China in the current dynamic. In an effort to avoid the downside, China will bleed cash to retain their economic position…. However, this can only last so long.

David ShoelessJoe🇺🇸@yohiobaseball

.@TheLastRefuge2 The food price index in May jumped 7.7% year-on-year, the fastest pace since January 2010 and higher than April’s reading of 6.1%.
China’s factory inflation slows as production eases but food prices surgehttps://mobile.reuters.com/article/amp/idUSKCN1TD08M?__twitter_impression=true 

China's factory inflation slows as production eases but food prices surge

China’s factory inflation slows as production eases but food prices surge

China’s factory gate inflation slowed amid sluggish commodity demand and faltering manufacturing activity, slowing from a four-month high in the previous month and fuelling worries growth in the…

mobile.reuters.com

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It always appeared that President Trump was fully prepared for this outcome. In hindsight it looks even more obvious how President Trump engaged with China while fully expecting to end-up with a direct and adversarial outcome.

Long before media pundits starting noticing/considering how serious President Trump was about structurally resetting the entire landscape of a U.S-China trade relationship, President Trump quietly and methodically laid the groundwork with personal visits to: Prime Minister Shinzo Abe (Japan); President Moon Jae-in (S-Korea); President Tran Dai Quang (Vietnam); and President Rodrigo Duerte (Philippines).

The November 2017 tour of Asia was President Trump traveling to meet directly, face-to-face, one-on-one with the manufacturing heavyweights of Southeast Asia.

President Trump has positioned this geopolitical trade reset perfectly. Trump began with the end in mind and is now applying Chairman Xi’s own “us -vs- them approach” toward confronting China. The supply chain investment Beijing needs to sustain itself is now being controlled by elements outside China. Beijing responds by attacking those in the international community who control the investment.

As things go forward, China cannot sustain a long-term economic conflict with the U.S. As each day passes the ASEAN alliance will see their investment grow as companies pull-out of China and invest in S-Korea, Vietnam, Philippines, India etc. The GDP of our allies (including Mexico) grows, and the controlled GDP of China, as an adversary, shrinks.

The confrontation between China’s communist controlled economy and the U.S. free market system is the most significant geopolitical event since the collapse of the Soviet Union. The consequences from this reset are far reaching, and extend beyond the tens of trillions of dollars within the combined economies.

The entire system of global trade and supply-chain economics has entered a state of flux.

This will not end well for China.

Watch as time goes along and more companies, and nations, slowly walk toward the exits with China. There is just too much inherent financial risk.  China will have to make a deal fast yet their outlook, their inherent disposition, does not permit them to enter into a deal where they will lose status; and President Trump is in no hurry.

President Trump knows the strength of our U.S. position is that our economy is deep and wide.  The U.S. is a self-sustaining economy.  Almost 80% of our internal production and manufacturing is purchased within our own market.

In the big picture – economic strength is an outcome of the ability of a nation, any nation, to support itself first and foremost. If a nations’ economy is dependent on other nations to survive it is less strong than a nation whose economy is more independent.

The reality of China as a dependent economic model (heck, they cannot even feed themselves) puts them at greater risk from supply-chain consequences Trump is controlling and delivering.  President Trump’s strategic use of geopolitical economic leverage is working by weakening the Chinese economy from multiple simultaneous angles…

Chairman Xi has met his match.  While President Trump keeps pouring vociferous praise upon the Chinese leader; again, the exact same approach customarily used within China’s  own cunning economic strategy; Trump is simultaneously delivering an economic death by a thousand cuts.

Incredible.

The First Indochina War


Published on Jul 7, 2009

George C. Herring, emeritus professor of history at the University of Kentucky, lectures on “The First Indochina War, 1946-1954,” as part of the W&L Alumni College titled “Vietnam: A Retrospective.”

 

 

What If There Were No Prices? The Railroad Thought Experiment


Published on Nov 5, 2015

What if there were no prices? How would you use available resources? To appreciate why market prices are essential to human well-being, consider what a fix we would be in without them. Suppose you were the commissar of railroads in the old Soviet Union. Markets and prices have been banished. You and your comrades. Passionate communists all. Now, directly plan how to use available resources. You want a railroad from city A to city B, but between the cities is a mountain range. Suppose somehow you know that the railroad once built. Will serve the nation equally well. Whether it goes through the mountains or around. If you build through the mountains, you’ll use much less steel for the tracks. Because that route is shorter. But you’ll use a great deal of engineering to design the trestles and tunnels needed to cross the rough terrain. That matters because engineering is also needed to design irrigation systems, mines, harbor installations and other structures. And you don’t want to tie up engineering on your railroad if it would be more valuable designing those other structures instead. You can save engineering for other projects. If you build around the mountains on level ground. But that way you’ll use much more steel rail to go the longer distance and steel is also needed for other purposes. For vehicles, girders, ships, pots and pans and thousands of other things. Which route should you choose for the good of the nation? To answer, you would need to determine which bundle of resources is less urgently needed for other purposes. The large amount of engineering and small amount of steel for the route through the mountains, where the small amount of engineering and large amount of steel for the roundabout route. But how could you find out the urgency of need for engineering and steel in other uses? Find out more as Professor Howard Baetjer Jr. from Towson University explains market prices through the railroad thought experiment.

Jordan Peterson: 5 Hours for the NEXT 50 Years of Your LIFE (MUST WATCH)


Published on May 24, 2018

Jordan Peterson’s Life Advice Will Change Your Future. Be sure to use the Video Guide listed in the description to watch this motivational speech! Subscribe for Motivational Videos Every Weekday, Helping You Get Through The Week! http://bit.ly/MotivationVideos Special Thanks To Jordan Peterson for allowing us to share! YouTube: https://www.youtube.com/user/JordanPe… Twitter: https://twitter.com/jordanbpeterson Support his Patreon: Patreon: https://www.patreon.com/jordanbpeterson Video Guide: 00:08 Sacrifice Current Impulses For Future Gratification 05:37 Don’t Strive For Happiness 09:56 King Of The Losers 12:06 Start Your Day By Cleaning Up Your Room 17:44 Your Story Means Something 29:33 Meaningful Experiences Matter 36:30 What To Aim For In Life? 59:12 The Danger in College 1:15:09 Dealing With Chaos 1:22:36 How To Interpret Dreams 1:30:13 Your Untapped Potential 1:39:41 The Buddha 1:52:12 Responsibility 2:03:37 Creative People 2:15:00 How To Listen To People 2:24:57 Relationship Advice 2:32:37 Potential Mate Traits 2:42:42 The Hero Myth 3:18:27 How To Motivate Yourself 3:26:14 Food Of The Gods 3:31:52 Religious Experience 3:38:10 Psilocybin 3:42:40 Mystical Experiences Through Psychedelics 4:09:39 Psilocybin and DMT 4:17:27 Nietzsche’s Beyond Good And Evil Special Thanks To Jordan Peterson for allowing us to share! YouTube: https://www.youtube.com/user/JordanPe… Twitter: https://twitter.com/jordanbpeterson Patreon: https://www.patreon.com/jordanbpeterson Follow us on: Instagram: http://bit.ly/2rhGNMY Facebook: http://bit.ly/2r85DC3 Twitter: http://bit.ly/2qir5TO —————————————-­­————————- Help us caption & translate this video! http://bit.ly/Translate4Motivation

Modified Declassification Expectations Amid Clarity of Purpose from Ratcliffe…


When previously questioned by Catherine Herridge about timing for declassification of documents President Trump noted “when they need them“.  Within the response, who “they” were was never clarified; but the later directive to empower executive branch cabinet member AG Bill Barr provided a more clear reference.

In the legislative branch representatives Mark Meadows, Doug Collins and John Ratcliffe are the primary House members who were clearly helping to organize timing and distribution.  Additionally, AG Barr has appointed a prosecutor in John H Durham to review the overall DOJ, FBI and intelligence community activity.  Obviously Durham along with Inspector General Horowitz would benefit from declassification of documents in both of their reviews.

Earlier today John Ratcliffe outlined his view of U.S. Attorney John Durham as a benefactor of the declassification insofar as he would gain information for his review.  Interestingly Ratcliffe noted Durham was essentially a ‘special counsel’ and could use access to documents as a tool toward a grand jury review [ergo DOJ declassification would be needed].

Along with noting the likelihood of Durham’s intent, Ratcliffe seemed to temper expectations of any upcoming publicly visible declassification.

The possibility of Durham exploiting/using documents declassified by his boss, AG Bill Barr, would suggest some of the material may not be made public; indeed that’s the inference from Ratcliffe earlier today as he outlined to Maria Bartiromo.

If accurate, it is worthwhile considering what *could be* publicly declassified by AG Barr, and yet not run afoul of any investigative value for Durham.   Example: the declassification of the Rosenstein scope memos to Robert Mueller (no longer a reason to be hidden) would not seem to materially affect the investigative intents of Durham.

So considering investigative value, what documents could be purposefully made publicthat would not impede Durham?

Here’s the list of material possible for declassification. This was the original list as outlined in 2018:

  • All versions of the Carter Page FISA applications (DOJ) (FBI) (ODNI).
  • All of the Bruce Ohr 302’s filled out by the FBI. (FBI) (ODNI)
  • All of Bruce Ohr’s emails (FBI) (DOJ) (CIA) (ODNI). All supportive documents and material provided by Bruce Ohr to the FBI. (FBI)
  • All relevant documents pertaining to the supportive material within the FISA application. (FBI) (DOJ-NSD ) (DoS) (CIA) (DNI) (NSA) (ODNI);
  • All intelligence documents that were presented to the Gang of Eight in 2016 that pertain to the FISA application used against U.S. person Carter Page; including all intelligence documents that may not have been presented to the FISA Court. (CIA) (FBI) (DOJ) (ODNI) (DoS) (NSA)  Presumably this would include the recently revealed State Dept Kavalac email; and the FBI transcripts from wiretaps of George Papadopoulos (also listed in Carter Page FISA). [AKA ‘Bucket Five’]
  • All unredacted text messages and email content between Lisa Page and Peter Strzok on all devices. (FBI) (DOJ) (DOJ-NSD) (ODNI)
  • The originating CIA “EC” or two-page electronic communication from former CIA Director John Brennan to FBI Director James Comey that started Operation Crossfire Hurricane in July 2016. (CIA) (FBI) (ODNI)

Additionally, since the 2018 list was developed, more information has surfaced about underlying material.  This added to the possibility of documents for declassification:

♦ President Trump can prove the July 31st, 2016, Crossfire Hurricane counterintelligence operation originated from a scheme within the intelligence apparatus by exposing the preceding CIA operation that created the originating “Electronic Communication” memo. Declassify that two-page “EC” document that Brennan gave to Comey.  [The trail is found within the Weissmann report and the use of Alexander Downer – SEE HERE]

♦ Release and declassify all of the Comey memos that document the investigative steps taken by the FBI as an outcome of the operation coordinated by CIA Director John Brennan in early 2016.  [The trail was memorialized by James Comey – SEE HERE]

♦ Reveal the November 2015 through April 2016 FISA-702 search query abuse by declassifying the April 2017 court opinion written by FISC Presiding Judge Rosemary Collyer. Show the FBI contractors behind the 85% fraudulent search queries. [Crowdstrike? Fusion-GPS? Nellie Ohr? Daniel Richman?]  This was a weaponized surveillance and domestic political spying operation. [The trail was laid down in specific detail by Judge Collyer – SEE HERE]

♦ Subpoena former DOJ-NSD (National Security Division) head John Carlin, or haul him in front of a grand jury, and get his testimony about why he hid the abuse from the FISA court in October 2016; why the DOJ-NSD rushed the Carter Page application to beat NSA Director Admiral Mike Rogers to the FISA court; and why Carlin quit immediately thereafter.

♦ Prove the Carter Page FISA application (October 2016) was fraudulent and based on deceptions to the FISA Court. Declassify the entire document, and release the transcripts of those who signed the application(s); and/or depose those who have not yet testified. The creation of the Steele Dossier was the cover-up operation. [SEE HERE]

♦ Release all of the Lisa Page and Peter Strzok text messages without redactions. Let sunlight pour in on the actual conversation(s) that were taking place when Crossfire Hurricane (July ’16) and the FISA Application (Oct ’16) were taking place.  The current redactions were made by the people who weaponized the intelligence system for political surveillance and spy operation.  This is why Page and Strzok texts are redacted!

♦ Release all of Bruce Ohr 302’s, FBI notes from interviews and debriefing sessions, and other relevant documents associated with the interviews of Bruce Ohr and his internal communications. Including exculpatory evidence that Bruce Ohr may have shared with FBI Agent Joseph Pientka. [And get a deposition from this Pientka fella] Bruce Ohr is the courier, carrying information from those outside to those on the inside.

♦ Release the August 2nd, 2017, two-page scope memo provided by DAG Rod Rosenstein to special counsel Robert Mueller to advance the fraudulent Trump investigation, and initiate the more purposeful obstruction of justice investigation. Also Release the October 20th, 2017, second scope memo recently discovered.  The Scope Memos are keys to unlocking the underlying spy/surveillance cover-up. [SEE HERE and SEE HERE]

It would appear the scope memos, Kavalec memo, original FISA application and transcript of Papadopoulos conversation with Halper etc. could be released without impeding a grand jury review (hinted by Ratcliffe today).

While CTH would argue that full public declassification of everything would be a better approach; thereby allowing Durham to use any/all evidence therein; I also accept that protecting the “FISA enabled” institutions is not considered in our preferred approach.

Protecting the *legal and national security value* of an appropriately applied “FISA process” seems to be key institutional objective for the principals (Barr, Coats, etc.). As such, there is an institutional tendency to defend process. It’s a tightrope.

If the Barr perspective includes the need to retain legitimate national security value within the processes previously abused, Barr may mitigate what is released.  Again, a tight-rope where ‘We The People’ are expected to trust yet another official.

CTH accepts the possibility of honorable intent within Bill Barr, cautiously.  The ‘trust’ bank account is overdrawn.  Perhaps that’s why very cautious optimism, with frustratingly tempered short-term expectations, is the prudent analytical perspective.

Then again, ‘We The People’ have no more tongue to bite…. A constitutional republic can only accept so much demonstrable corruption before all hell breaks loose.

I hope AG Barr understands this.

BARR: And look, I think if we — we are worried about foreign influence in the campaign? We should be because the heart of our system is the peaceful transfer of power through elections and what gives the government legitimacy is that process. And if foreign elements can come in and affect it, that’s bad for the republic. But by the same token, it’s just as, it’s just as dangerous to the continuation of self-government and our republican system, republic that we not allow government power, law enforcement or intelligence power, to play a role in politics, to intrude into politics, and affect elections.

JAN CRAWFORD: So it’s just as dangerous- So when we talk about foreign interference versus say a government abuse of power, which is more troubling?

WILLIAM BARR: Well they’re both, they’re both troubling.

JAN CRAWFORD: Equally?

WILLIAM BARR: In my mind, they are, sure. I mean, republics have fallen because of Praetorian Guard mentality where government officials get very arrogant, they identify the national interest with their own political preferences and they feel that anyone who has a different opinion, you know, is somehow an enemy of the state. And you know, there is that tendency that they know better and that, you know, they’re there to protect as guardians of the people. That can easily translate into essentially supervening the will of the majority and getting your own way as a government official.

JAN CRAWFORD: And you are concerned that that may have happened in 2016?

WILLIAM BARR: Well, I just think it has to be carefully look atbecause the use of foreign intelligence capabilities and counterintelligence capabilities against an American political campaign to me is unprecedented and it’s a serious red line that’s been crossed.

JAN CRAWFORD: Did that happen?

WILLIAM BARR: There were counterintelligence activities undertaken against the Trump Campaign. And I’m not saying there was not a basis for it, that it was legitimate, but I want to see what that basis was and make sure it was legitimate.

JAN CRAWFORD: So–

WILLIAM BARR: That’s one of the, you know, one of the key responsibilities of the Attorney General, core responsibilities of the Attorney General is to make sure that government power is not abused and that the right of Americans are not transgressed by abusive government power. That’s the responsibility of the Attorney General.  (Transcript source)

Venezuela Collapse Explained


Published on Feb 26, 2019

Venezuela – The Fall of an Oil Empire explained by Patrick Bet-David. Subscribe now. For a FREE PDF of these points, text: 747-260-8461 or visit: https://www.patrickbetdavid.com/venez… Recommended – order the book: All The Shah’s Men https://amzn.to/2T14A5l Recommended Video: DNA of an Entrepreneur https://www.youtube.com/watch?v=o3pSO… About Venezuela: Venezuela is a country on the northern coast of South America with diverse natural attractions. Along its Caribbean coast are tropical resort islands including Isla de Margarita and the Los Roques archipelago. To the northwest are the Andes Mountains and the colonial town of Mérida, a base for visiting Sierra Nevada National Park. Caracas, the capital, is to the north.

The Only Number That Matters


Published on Mar 7, 2016

For more information, go to http://worldcyclesinstitute.com/the-o… Ever heard of the numbers of nature? You really need to know about them because they’re in everything … plants, animals, the human body, artwork, our DNA, the stock market, the planets … you name it, nature’s numbers are there somewhere. The guy that discovered them 900 years ago is the man from Pisa. No, not your Pizza delivery guy … Pisa is a city in central Italy famous for the leaning tower and this man … Leonardo Fibonacci … nice Italian sounding name. These numbers of nature were so revolutionary, that they bear his name even today. It starts with a simple sequence of numbers … here’s how they work: You start with 0 and then 1 and then you simply add the last two number together to get the next … so 1, 2, 3, 5, 8, 11 and so on. Now when you divide any number by the one following it, you get what we refer to as the Golden Mean … .618. It’s also called phi. This is the number that’s in everything … It’s all through nature … it’s all through the stock markets … it’s in our DNA … it’s in music … and it been in architecture since before it was discovered. For example, the Parthenon… one of Greece’s most prized assets … if it’s not now owned by Germany …. It was built in the 4th century BC … many centuries before Fibonacci. And yet it seems to be proportioned closely to the golden mean. The lower portion is about 62% of the total height. The reciprocal is .382 and together, these two numbers occur over and over in artwork because we humans find the ratio pleasing. Something as simple as playing cards, for example. You can then take that “golden rectangle” to humans. It frames the face and positions the eyes, nose, and mouth. The belly button seems to generally divide the body into the golden section. You have 5 fingers, each one with 3 bones perfectly proportioned to the golden mean. You’ll find the golden mean in our DNA. You can see the numbers of nature at work in sunflower leaves. They arrange themselves in Fibonacci layers. There’s the Fibonacci spiral, evident in hurricanes … and sea shells. It goes on and on. In the stock market, when stocks are trending, the waves they form are in ratios of phi. You find it over and over again and many traders use it to trade quite profitably. So, the markets are not random, as so many think. They’re quite predictable. And where could these ratios in nature that we find everywhere on Earth originate Well, let’s look to the heavens. The planets are more or less separated in distance by the golden ratio. They actually follow more of a sine wave. But if you were to take the distances and average them, you’d find they come out to 1.618 … phi! We know that we’re affected by electromagnetic waves from the planets … we just don’t know exactly how we’re affected. But that’s a thought from another video. Is God a mathematician? Well, there’s certainly order to the universe and as we delve deeper and deeper into science, we’ll no doubt find more of the answers.

 

Beijing Begins Predictable Totalitarian Response…


All your interests are belong to us…. There was previous discussion of how Beijing would respond if/when their economic interests were challenged. In essence, the prediction was that China would drop the panda mask and revert back to their oppressive totalitarian tendencies.

It is an interesting dynamic because the more the communist state moves to punish and control western business interests, the less likely any western investment flows into China. It’s a simple question: Why would anyone want to engage a business relationship inside a totalitarian system that could move at any moment to control your business?

(South China Post) China will publish a list of “unreliable” foreign entities deemed to have damaged the interests of Chinese firms – a move set to ratchet up tensions in its escalating conflict with Washington, after the US government blacklisted Chinese telecoms giant Huawei.

The Ministry of Commerce said on Friday that it would blacklist foreign businesses or individuals that violated market rules and contractual obligations, or took “discriminatory measures” to hurt Chinese business rights and interests, as well as national security and interests.

Specific measures for those on the list would be revealed “in the near future”, said ministry spokesman Gao Feng.

Gao said the “unreliable” blacklist would be based on China’s foreign trade, anti-monopoly and national security laws, and it would target entities that had blocked Chinese businesses out of non-commercial concerns. (read more)

The Red Dragon is going to do what the Red Dragon does.  Thus begins the phase when corporate interests, particularly multinationals, recognize at its core China is a communist state-run, controlled-market, system.

The reaction from China is immensely predictable; and creates a downward spiral.  If any corporation is perceived as working against the interests of the state; the state will take control of the corporate interest.   What western business interest would want to do business within China when that reality is the landscape of every economic decision?

The willingness of China to self-immolate is the golden arrow in President Trump’s economic quiver.  The inability of China to modify itself based on downstream economic outcomes is the inherent weakness… Overlay that weakness with the zero-sum outlook and you get this quote from Chinese State-Run broadcast:

…“If the US wants to negotiate, our door is open. If you want to fight, we will fight to the end.”…

Think about the logical reality of this statement as expressed.  Put another way: ‘if you agree to our terms we will work with you; however, if you don’t agree to our terms, we will self destruct.’  That’s the economic reality of the zero-sum dragon mindset.  This inevitable position is what CTH has been outlining for several years.

China has no cultural or political space between peace and war; they are a historic nation based on two points of polarity.  They see peace and war as coexisting with each other.

Chinese engagement stems from a belief that opposite or contrary forces may actually be complementary, interconnected, and interdependent in the natural world, and they may give rise to each other as they interrelate to one another.  However, it must benefit China. 

Peace or war. Win or lose. Yin and Yang. Culturally there is no middle position in dealings with China; they are not constitutionally capable of understanding or valuing the western philosophy of mutual benefit where concession of terms gains a larger outcome.  If it does not benefit China, it is not done. The outlook is simply, a polarity of peace or war.  In politics or economics the same perspective is true.  It is a zero-sum outlook.

As soon as an internal business interest, or an affiliated business relationship, is considered to be a compromise or loss to Beijing, the enterprise is destroyed.

Who decides? The communist regime.

Thus President Trump only has to position U.S. policy to benefit non-engagement with China (see Huawei); and China will respond by destroying any affiliated business they view as participating in, or supporting, the adverse policy. Beijing cannot help itself. The dragon will act as a dragon will act.

President Trump has positioned this geopolitical trade reset perfectly.  Trump is applying Chairman Xi’s own “us -vs them approach” toward confronting China. The supply chain investment Beijing needs to sustain itself is now being controlled by elements outside China.  Beijing responds by attacking those in the international community who control the investment.

This will not end well for China.

Watch as time goes along and more companies, and nations, slowly walk toward the exits with China.  There is just too much inherent financial risk.