American election

Adam_Smith_The_Muir_portraitOk, listen. The greatest knife that mr. Trump right now holds to the throat of ms. Clinton is the understanding of economy.

This is where he has his number one chip; he is a businessman, and where ms. Clinton is he weakest, she is a teacher.

Well, first of all, the great news is, mr. Trump is not a national economist, so the understanding of international trade is not his strongest. The bad news is, ms. Clinton has not really grasped the true mechanics of international trade, and hence is vulnerable here.

Ok, being of a great line of teachers myself, my own mother was a teacher, her father and mother were teachers, their parents were teachers and so on for five generations, let me give you a crash course in international business understanding.

There are two axis in trade; First there are the ideas of free trade. Secondly the national production environment.

The idea of free trade is, that a larger area of trade where nations trade internally will benefit all. In essence what happens is, that a large area of trade gives the producer the possibility to specialise, and then still make a profit because there are more buyers.

Let me give you an example. The good manufacturer of robot parts mr. Smith plans to produce a specialised robotarm to make pigeon cages. Since few people use pigeon cages, only if China is a part of it, there will be a market big enough.

In history however the idea of free trade was a part of the expansion of the British empire. The way it worked was by opening up new markets, in the colonies for british goods. Remember the British empire was mainly run and expanded by British business and banking.

In essence the superior goods of the Brits outperformed the local goods of the colonial markets, bringing af hefty profit to the investors.

This is actually the story behind the link between the critique of Wall Street and its colonial aspirations, though unfounded now when there are no more British Empire.

But, you see, the free trade ideas are really colonialism clothed in finer garbing.

Today the world is different, the time of the weak colonies in terms of production methods are over, and free trade is not such an economic wealth bringing thing to the empire. Not anymore. The world has changed.

The new situation is, that the rest of the world has catched up. Especially China has done it, and then, with a few tricks up its sleeve, has bested us.

You can call it poetic justice, that a former colony has bested its master and is now using its own weapons against it, Jiu jitsu.

But the fact of the matter is, that free trade or no free trade, China has emerged as a competitor to the hegemony of British/US sway over the Asian hemisphere.

This is a problem short term and long term. At the end of the day, we should not be so naive as to believe that there is a higher justice to the power play in the upper hemisphere of superpowers, there is only one rule; rule or be ruled. There can be some soothing influences as religion and the UN, but at the end of the day it is all about military power.

This is where it all ends; military might. Because as mr. Obama says we are heading for at war with China. They are challenging us, and we need to respond. This war will not be with islamic terror capabilities, that is needle attacks, but a conventional war with arms.

This is what you should focus on and think on, what about the war with China?

I mean mr. Trump can talk about trade agreements, but if we have a war with China going on, who cares?

So be specific about this, be honest about it. Say it as it is, we are heading for at war, this means several things.

1. We need to disentangle ourselves with China in terms of production, economy and trade.
2. We need to prepare for the war in terms of military buildup, that is start thinking about a possible war with China.
3. We need to close the gap to Russia, because we cannot fight a two front war, and fighting Russias humongous nuclear warhead arsenal is not in our interest.

One of the things Barack and I have worked on is the cyberwar, China has been using its hackers to sift information and data from our weapons producers, this has been stopped now, but we still need some years to be prepared.

There is another chapter on business production and loyalty that I will cover in the next posting, an area of study that has boosted the American production in Baracks presidency.

G-d bless the will to be a very good teacher.

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