‘China Is Not Our Problem’: We Need To Collaborate in Space and on Belt and Road
“China is not our problem,” tweeted President Donald Trump today as Treasury interest rates plunged into recession territory, Germany’s industrial economy was reported contracting, and the Wall Street stock market plunged 800 points.
That was completely true, contrary to the propaganda over Hong Kong coming from London and from the U.S. Congress.
The President was reacting as the financial media screamed today that the Treasury’s “main yield curve” (the 10-year vs. the 2-year note) has inverted, giving the sign of recession. Treasury’s 10-year note interest was at 1.56%, just 0.07% above its lowest ever, while the 30-year bond yield is lower than ever before. Clearly neither saving nor productive investment is going on—business capital investment actually shrank in recent months. American workers’ real weekly wages are now down for the year after falling −0.3% in July, and all measures of freight traffic have dropped along with total industrial production. Waiting ahead, through a forest of bankruptcies of overindebted companies, is a financial crash.
The second part of the President’s tweet, “Our problem is with the Fed,” is beating a—literally—dead horse. The central banks endlessly kept interest rates near zero and printed masses of new money for Wall Street and London to speculate the “everything bubble” into being for the next crash. Fear of that crash—not fear of President Trump—is now driving them back down to zero and negative rates.
Unless—something is done to create investment in new, revolutionary industrial technologies, high-technology economic infrastructure, and rapid productivity growth—generating the new value from human creativity to overcome the bankruptcies and bursting bubbles.
“Not enough China” is a way to see our problem. In the simplest sense, the world’s leading engine of economic productivity and growth since the 2008 crash, has been cut off from trans-Atlantic economics by investment bans, trade war, and refusal to join its Belt and Road infrastructure great projects in Asia, Africa, and Ibero-America. China’s currency has been speculated down in value, cutting its investment capabilities.
But the solution to “our problem” is at a higher level of human endeavor.
To get out of this mess, more collaboration is needed with China, India, and Russia in a new international crash program to achieve Moon-Mars missions and breakthroughs in fusion power, along with plasma and laser technologies. These nations can lead others in creating a new credit system for international joint investments. They develop nuclear technologies; they reject the Green mania that gives up human lives to “save the planet.” They foresee the human race further developing not only this planet but also others.
President Trump spoke, after the Aug. 3-4 mass shootings in the United States, of the difficult necessity of “changing the culture.” This international Moon-Mars and fusion power fast-track program will bring out the creativity, the productivity, and the optimism of especially younger Americans, that he had to be looking for.