20190721 - Naive or foolish? The problem is not about economy or technology
It is about social justice and wealth equality, in every election or leadership change, be it merchantilism or predatory capitalism or socialism.
Three decades gone since 1989. Now we have a shrinking Russia economy still suffering from American-led invasion syndrome and spending more on defending than feeding themselves, an US economy with its public debt ALONE greater than its GDP to keep all bubbles inflated for a reelection, a China economy inflated by largely debt-driven vacated realty and record breaking realty price to income ratio, and a Taiwan economy twisted by artificial low interest rate in favor of export, heated stock markets and realty for the top 10%.
The shrinking and vanishing middle class in Taiwan has profound effects on the strength of Taiwan microelectronics industry. It also indicates the shrinking supply of technology talents from Taiwan to China. Lack of strong well educated middle class is the reason why China cannot design, develop, and manufacture its own CPUs/GPUs completely independent of x86 and ARM architectures, and why it remains a highly skilled copycat powerhouse with lots of irrelevant patents.
During the coming downturn of global bubble burst, China finally has a chance to redistribute sickly-concentrated wealth equally to its population to avoid class struggle in any form and shape, as in Taiwan, and lay the foundation for advanced open standard microelectronics. Economic liberty is crucial as political tightening in maintaining the current prime of China. For the great social benefits, freedom of economic and technological thinkings are persistently encouraged and permitted within the boundary of socialism. All individual benefits are alighned to social benefits ruthlessly without any compromise.
China will be vulnerable to Anglo-Japanese predatory invaders if it fails to develop a fully independent microelectroiics ecosystem with Russia, Germany, India et al. Quantum and fusion are important but microelectronics are critical to everyday life, let alone all future defence battles conducted by robos only.
Corruptions jeopardizing the social well-being cannot be tolerated. China should make extremely clear to those individuals who have ANY debt-financed asset outside of China that they are to liquidate and retrieve the capital back to China economy, or be exterminated along with their familes. This is critical time and critial actions are required to recoup the lost GDP sustance, about 16% of the nominal figure.
Wealth inequality is the real only hurdle for integration between Mainland and Taiwan. Beware of those who studied in US/UK. They have been brainwashed to drive two Chinas toward more wealth inequality, a critical essence of merchantilist capitalism. For instance, monetary policy is a typically effective tool to amplify wealth inequality.
All religions were designed to destroy human intelligence and manipulate human greed and fear. China has been too loose on any religions. Religions have always been the conductive media of foreign subversion. As younger Chinese become Americanized in ways of zero saving, debt-indulging and materialism, thus mentally hollow, they also become much more velnerable to Americanized religions heavily connected to money collecting goals. Consumerism is the worst choice to inflate the economy. Economic liberty must be matched with political tightening and religion suppression in China, to maintain the unique conventions of Chinese culture and persistent economic prosperity.
China still has the chance to resolve its debt crisis before its GDP growth rate drops below its inflation rate and follows the tragic path of Japan and US. QEs, rate cuts or any monetary BS are just slowing down the downfall as every descently educated person knows.
While US/UK/Canada Anglo alliance is trying with best efforts to cut off energy from West Asia to Europe, Germany in particular, to break the future integration of Germany, Russia, India and China for greater economic prosperity, China needs to strengthen its financial structure quickly by allowing massive public/private bankruptcies when its growth rate is still high enough to withstand the restructuring countering the impact of forthcoming US financial collapse. Bringing down debt/GDP from 300% to 100% in five years should be achievable for China.