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The Stasi Surveillance is the most repressive and oppressive surveillance system ever operated

Many people around the world do not want a surveillance society, but the truth is that it has never been easier to follow different people 24/7/365. Many are looking to Communist China, and its tactics and impact on society.

But surveillance isn`t something new. The Nazis did it. So did the Communists in East Germany. The Nazis had Gestapo, while the Communists had Stasi, and Stasi is the official name for Ministerium fur Staatsicherheit (German: «Ministry for State Security»).

Stasi was a secret police agency of the German Democratic Republic (East Germany). Furthermore; the Stasi was one of the most hated and feared institutions of the East German communist government. It all started after World War II: in 1950, and it lasted until the end in 1990 (after the fall of the Berlin wall in 1989).

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The difference between Gestapo and Stasi is that Gestapo had 40,000 officials watching a country of 80 million, while the Stasi employed 102,000 to control only 17 million. One might add that the Nazi terror lasted only twelve years, whereas the Stasi had four decades in which to perfect its machinery of oppression, espionage, and international terrorism and subversion.

By at least one estimate, the Stasi maintained greater surveillance over its own people than any secret police force in history.

The Stasi employed one secret policeman for every 166 East Germans. By comparison, the Gestapo deployed one secret policeman per 2,000 people.

Stasi agents infiltrated and undermined West Germany`s government and spy agencies.

The Stasi was much worse than the Gestapo, if you consider only the oppression of its own people, according to Simon Wiesnthal of Vienna, Austria, who has been hunting Nazi criminals for half a century. But, why was the Stasi so extremely good?

Many of the techniques used by the Stasi had actually been pioneered by the Nazis and in particular the Gestapo. They relied heavily on information-gathering and intelligence in order to create an atmosphere of fear and to get citizens to denounce one another. It worked extremely successfully. But, why did they do it? What was the goal of the Stasi?

The goal was to destroy secretly the self-confidence of people, for example by damaging their reputation, organizing failures in their work, and destroying their personal relationships. Considering this, East Germany was a very modern dictatorship. The Stasi didn`t try to arrest every dissident.

They had many different tactics, including questioning, repeated stop, and searches, strange noises on telephone lines, and conspicuous visits to the workplace so that bosses and colleagues were aware of the police interest.

The Stasi steamed open letters, copied them, filed them, and sent them on. They went into homes when people were out and bugged them. They tapped into the phone infrastructure of the building, maintained contacts and occasionally cooperated with West German terrorists.

The Stasi`s function was similar to the KGB, serving as a means of maintaining state authority. This was accomplished primarily through the use of a network of civilian informants. KGB also invited the Stasi to establish operational bases in Moscow and Leningrad to monitor visiting East German tourists.

The Stasi also acted as a proxy for KGB to conduct activities in other Eastern Bloc countries, such as Poland, where the Soviets were despised.

Due to their close ties with Soviet intelligence services, Mielke referred to the Stasi officers as «Chekists». In 1978, Mielke formally granted KGB officers in East Germany the same rights and powers that they enjoyed in the Soviet Union.

Between 1950 and 1989, the Stasi employed a total of 274,000 people in an effort to root out the class enemy. In 1989, the Stasi employed 91,015 people full-time, including 2,000 fully employed unofficial collaborators, 13,073 soldiers and 2,232 officers of the GDR army, along with 173,081 unofficial informants inside GDR, and 1,553 informants in West Germany.

Regular commissioned Stasi officers were recruited from conscripts who had been honorably discharged from their 18 months’ compulsory military service, had been members of the SED, had had a high level of participation in the Party`s youth wing`s activities, and had been Stasi informers during their service in the Military.

The candidates were then made to sit through several tests and exams, which identified their intellectual capacity to be an officer and their political reliability. University graduates who had completed their military service did not need to take these tests and exams.

They then attended a two-year officer training program at the Stasi college (Hochschule) in Potsdam.

By 1995, some 174,000 inoffizielle Mitarbeiter (Ims) Stasi informants had been identified, almost 2,5% of East Germany`s population between the ages of 18 and 60. 10,000 Ims were under 18 years of age.

From the volume of material destroyed in the final days of the regime, the office of the Federal Commissioner for the Stasi Records (BstU) believes that there could have been as many as 500,000 informers.

A former Stasi colonel who served in the counterintelligence directorate estimated that the figure could be as high as 2 million if occasional informants were included.

Full-time officers were posted to all major industrial plants (the extent of any surveillance largely dependent on how valuable a product was to the economy), and one tenant in every apartment building was designed as a watchdog reporting to an area representative of the Volkspolizei (Vopo).

Spies reported every relative or friend who stayed the night at another`s apartment. Tiny holes were drilled in apartment and hotel room walls through which Stasi agents filmed citizens with special video cameras.

Schools, universities, and hospitals were extensively infiltrated.

A large number of Stasi informants were tram conductors, janitors, doctors, nurses, and teachers. Mielke believed that the best informants were those whose jobs entailed frequent contact with the public.

In some cases, spouses even spied on each other.

The roles of informants ranged from those already in some way involved in state security (such as the police and the armed services) to those in the dissident movements (such as in the arts and the Protestant Church).

Information gathered about the latter groups was frequently used to divide or discredit members. Informants were made to feel important, given material or social incentives, and were imbued with a sense of adventure, and only around 7,7%, according to official figures, were coerced into cooperating.

The Stasi had files on everyone. They spied on almost every aspect of East German`s daily lives, and they carried out international espionage. It kept files on about 5,6 million people and amassed an enormous archive. The archive holds 111 kilometers of files in total.

The Stasi was the official state security service of East Germany, the German Democratic-Republican in short the GDR. The Stasi`s motto was «Schild und Schwert der Partei» (Shield and Sword of the Party).

«The Party» was the ruling Socialist Unity Party of Germany.

The Stasi perfected the technique of psychological harassment of perceived enemies known as Zersetzung, which is a term borrowed from chemistry that literally means «decomposition». Chemical decomposition means chemical breakdown.

For example, the stability of a chemical compound is eventually limited when exposed to extreme environmental conditions such as heat, radiation, humidity, or the acidity of a solvent. Because of this chemical decomposition is often an undesired chemical reaction.

The goal was to paralyze people, and it could do so because it had access to so much personal information and to so many institutions.

By the 1970s, the Stasi had decided that the methods of overt persecution that had been employed up to that time, such as arrest and torture, were too crude and obvious. Such forms of oppression were drawing significant international condemnation.

It was realized that psychological harassment was far less likely to be recognized for what it was, so its victims, and their supporters, were less likely to be provoked into active resistance, given that they would often not be aware of the source of their problems, or even its exact nature.

International condemnation could also be avoided.

Zersetzung (decomposition) was designed to side-track and «switch off» perceived enemies so that they would lose the will to continue any «inappropriate» activities.

Anyone who was judged to display politically, culturally or religiously incorrect attitudes could be viewed as a «hostile-negative» force and targeted with Zersetzung methods.

For this reason members of the Church, writers, artists, and members further developed in a «creative and differentiated» manner based upon the specific person being targeted i.e. They were tailored based on the target`s psychology and life situation.

Tactics employed under Zersetzung usually involved the disruption of the victim`s private or family life.

This often included psychological attacks, such as breaking into their home and subtly manipulating the contents, in a form of gaslighting i.e. Moving furniture around, altering the timing of an alarm, removing pictures from walls, or replacing one variety of tea with another, etc.

Other practices include property damage, sabotage of cars, travel bans, career sabotage, administering purposely incorrect medical treatment, smear campaigns which could include subversion, wiretapping, bugging, mysterious phone calls or unnecessary deliveries, even including sending a vibrator to a target`s wife.

Increasing degrees of unemployment and social isolation could and frequently did occur due to the negative psychological, physical, and social ramifications of being targeted.

USUALLY, VICTIMS HAD NO IDEA THAT THE STASI WERE RESPONSIBLE.

The victims didn`t know what was happening. They were confused, and everybody around the target could watch as he or she crumbled under the relentless pressure of state harassment. Zersetzung was designed by the Stasi, and it was a form of psychological harassment to wreak havoc on an individual, without any need to arrest or torture the target.

Many thought that they were losing their minds, and mental breakdowns and suicide were sometimes the results. There is ongoing debate as to the extent if at all, to which weaponized directed energy devices, such as X-ray transmitters, were also used against victims.

A direct-energy weapon (DEW) is a ranged weapon that damages its target with highly focused energy without a solid projectile, including lasers, microwaves, particle beams, and sound beams. Potential applications of this technology include weapons that target personnel, missiles, vehicles, and optical devices.

The main goal was to give the victims a lot of pain because that was much better than putting them in prison and torturing them. One of the symptoms was called the Havana syndrome. It was a syndrome of medical symptoms reported by US personnel in Havana, Cuba, and other locations, suspected by the National Academies of Sciences, Engineering, and Medicine to be caused by microwave energy.

Some common bio-effects of non-lethal electromagnetic weapons include difficulty breathing, disorientation, nausea, pain, vertigo, and other systemic discomfort.

Interference with breathing poses the most significant, potentially lethal results. Light and repetitive visual signals can include epileptic seizures. Bection and motion sickness can also occur.

After German reunification, revelations of the Stati`s international activities were publicized, such as its military training of the West German Red Army Faction. Stasi experts also helped train the secret police organization of Mengistu Haile Mariam in Ethiopia.

They helped Fidel Castro`s regime in Cuba. Stasi officers helped in the initial training and indoctrination of Egyptian State Security organizations under the Nassar regime. They helped to create secret police forces in the People`s Republic of Angola, the People`s Republic of Mozambique, and the People`s Republic of Yemen.

The Stasi organized and extensively trained Syrian intelligence services under the regime of Hafez al-Assad. They also helped to set up Idi Amin`s secret service. They helped the President of Ghana.

Documents in the Stasi archives state that the KGB ordered Bulgarian agents to assassinate Pope John Paul II, who was known for his criticism of human rights in the Eastern Bloc, and the Stasi was asked to help with covering up traces.

The Stasi in 1972, also made plans to assist the Ministry of Public Security (Vietnam) in improving its intelligence work during the Vietnam War.

That was then, but how is it now? We must ask ourselves how our own society is built. The Stasi had a system for monitoring telephone conversations, but if they could do it in the 70s, what can be happening even today? What about social media, emails, smartphones, and computers.

A lot of people believe that China`s social system is scary. But that system is not only about China. It`s in many other countries in Europe and America. They have surveillance cameras, face recognition, and the requirements to always praise the government. It sounds like an Orwellian nightmare come true. Or a Stasi system of surveillance.

China`s social credit system affects freedom of speech, resulting in censorship and self-censorship, ultimately silencing any form of opposition. But this is not only about China. The web itself is a surveillance machine. As it stands today, you are what you click.

Once you`re logged on to your computer and have access to the internet, the system will see what you are doing, and you will be tracked by your browser, by third parties, by cookies, and by almost all the sites you are logging into.

The data you give the third party for free is aggregated and a profile about you is being created. Most of the information you give away for free is being used for targeted advertisements. But it could well be used to create a so-called Social Credit System.

Once all the data is collected, the profile is created, and it can be very difficult to change your own profile. Your profile of yours will lead to real-life consequences.

In addition, China has set up more than 100 so-called overseas police stations across the globe to monitor, harass, and in some cases repatriate Chinese citizens living in exile, using bilateral security arrangements struck with countries in Europe and Africa to gain widespread presence internationally, according to CNN.

The State Security Ministry is the principal civilian intelligence, security, and secret police agency of the People`s Republic of China, responsible for counterintelligence, foreign intelligence, and political security. The MSS is active in industrial espionage and adept at cyber espionage.

A document from the US Department of Justice described the agency as being like a combination of the Central Intelligence Agency (CIA), and the Federal Bureau of Investigation (FBI).

Many foreign analysts describe the Communist «Part-State» and its security agencies as being left without a real ideology, relying only on repression and the stoking of Chinese nationalism, more recent works, however, highlight the increasing importance of Marxism-Leninism in the worldview, internal culture and self-image of the CCP security apparatus; Vladimir Lenin and Mao Zedong remain the central influences, although classical Chinese thinkers such as Sun Tzu are also studied.

1,412 billion live in China. How many agents do they have? Only 87 million live in Iran, and they have its own Islamic Revolutionary Guard Corps to protect the priests at the top. It is a multi-service primary branch of the Iranian Armed Forces. Active personnel last year was 210,000, while 60,000 was paramilitary forces.

According to BBC, the UK is preparing to formally declare that Iran`s Islamic Revolutionary Guard Corps (IRGC) is a terrorist organization. It follows a similar decision made by the US in 2019. After a popular antigovernment protest in Iran, the number of people killed by security forces has increased.

The state of human rights in the Islamic Republic of Iran has been criticized by Iranians and international human rights activists.

The Stasi was one of the most hated and feared institutions of the East German communist government. Nor is CCP so popular. Iran`s Revolutionary Guard is also unpopular. The funniest thing is that they are all funded by «the people».

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shinybull.com. The author has made every effort to ensure the accuracy of the information provided; however, neither Shinybull.com nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities, or other financial instruments. Shinybull.com and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Russia marks National Unity Day on 4 November as a replacement for Soviet-era commemorations of the 1917 Bolshevik Revolution

Russia is a big country, but like many other countries, it also has a dark side; The Communists. Lenin killed Tsar Nicholas II and his family and stole the country. A story most of the Russians aren`t proud of. The Communists was the worst terrorist organization ever. What they did was big crime.

The abdication of Tsar Nicholas II on 15 March 1917 as a result of the February Revolution ended 304 years of Romanov rule, establishing the Russian Republic under the Russian Provisional Government in the lead up to the Russian Civil War.

In 1918, the Tsar and his family were executed by the Bolsheviks and the 47 surviviors of the House of Romanov`s 65 members went into exile abroad. (If you are interested in that story you can watch it on Netflix).

Putin are interested in the history of the Tsar family called Romanov and want to celebrate what they started hundreds of years ago. What Lenin and his army did was crime and that is nothing to celebrate.

That`s why Putin in 2005 created Unity Day, also called Day of People`s Unity or National Unity Day in Russia which is a national holiday held on November 4.

It commemorates the popular uprising which expelled Polish-Lithuanian occupation forces from Moscow in November 1612, and more generally the end of the Time of Troubles and turning point of the Polish-Muscovite War (1605-1618).

The day`s neme alludes to the idea that all classes of Russian society united to preserve Russian statehood when there was neither a tsar nor a patriarch to guide them. In 1613 tsar Mikhail Romanov instituted a holiday named «Day of Moscow`s Liberation from Polish Invaders».

It was celebrated in the Russian Empire until 1917, when it was replaced with a commemoration of the Russian Revolution.

Unity Day was reinstitued by the Russian Federation in 2005, when the events of the year 1612 have been celebrated instead of those of 1917 every November 4 since. The day is also the feast day of the Russian Orthodox icon of Our Lady of Kazan.

The holiday replaced the Day of Accord and Reconciliation, established by former President Boris Yeltsin following the collapse of the Soviet Union, which was itself a replacement for Revolution Day. Huh….what a mess.

President Vladimir Putin reestablished the holiday in order to replace the commemoration of the October Revolution, known as the Day of Great October Socialist Revolution during Soviet period and as the Day of Accord and Conciliation in post-Soviet times, which formerly took place on November 7.

Putin`s decision angered some sections of the public, particularly the Communist Party, who continued with celebrations on November 7. Putins`s predecessor, Boris Yeltsin took a limited action of changing the name of the holiday, by completely removing it. It goes back and forth.

So, after Lening and his criminal gangsters killed the Romanov family and overthrow the centuries -old monarchy, Russia emerged from a civil war in 1921 as the newly formed Soviet Union. The World`s first Marxist-Communist state. It became one of the biggest and powerful nations in the world until it collapsed in 1991.

The United Socialist Soviet Republic (U.S.S.R), was made up of 15 Soviet republics; Ukraine, Uzbekistan, Armenia, Belarus, Azerbaijan, Georgia, Estonia, Kazakhstan, Latvia, Kyrgyzstan, Lithuania, Russia, Moldova, Rajikistan and Turkmenistan. They were occupying nearly one-sixth of Earth`s land surface.

Radical Leftists revolutionaries overthrew Russia`s Tsar Nicholas II and ended centuries of Romanov rule and that was the beginning of the Russian Revolution in 1917. The Communists called the Bolsheviks established a socialist state.

The civil war started and it was a war between the Communists and the Capitalists. The Red Army was backed by the Bolshevik government. They defeated the White Army backed by a large group of monarchists, capitalists and supporters of other forms of socialism.

The Bolshevik`s had a secret police called Cheka in a periode known as Red Terror. They carried out a campaign of mass execution against supporters of the czarist regime and against Russia`s upper classes.

But Lenin past away in 1924 and Joseph Stalin came to power. The dictator ruled by terror with a series of brutal policies, which left millions of his own citizens dead. Stalin transformed Soviet Union from an agrarian society to an industrial and military superpower.

Stalin had a lot of plans, and focused on collectivizing agriculture and rapid industralization. Before World War II, Stalin enforced the collectivization of the agricultural sector. Rural peasants were forced to join colective farms.

People that owned land or livestock were stripped of their holdings, and hundreds of higher-income farmers, called kulaks, were executed and their property confiscated. The Communists believed that consolidating individually owned farms into a series of large state-run collective farms would increase agricultural productivity. But the opposite was true.

The productivity dropped and this led to a devastating food shortages. Millions died during the Great Famine of 1932-1933. The U.S.S.R denied the Great Famine in many years.

The Ukrainian famine (Holodomor) is also known as «starvation» and «to inflict death,» claimed the lives of nearly 4 million people. That`s 13 percent of the population. At that time, it was many protesters, and like other Communists in this world, the dictator didn`t like that.

Stalin eliminated all opposition to his leadership by terrorizing Communist Party officials and other public through his secret police. This is how a totalitarian policestate is working.

600,000 Soviet citizens were executed during the height of Stalin`s terror campaign known as the Great Purge between 1936 and 1938. Millions of people in Soviet were deported, or imprisoned in forced labor camps, also known as Gulags.

Soviet defeated Nazi-Germany at the end of World War II, but Americans and British feared the spread of communism into Western Europe and worldwide. So what did they do?

In 1949, the United States, Canada and its European allies formed the North Atlantic Treaty Organization (NATO). They formed an alliance between countries of the Western bloc and NATO was a political show of force against the U.S.S.R and its allies.

The Communists didn`t like that, so the Soviet Union in 1955 consolidated power among Eastern bloc countries under a rival alliance called the Warsaw Pact, and that started the Cold War.

The Cold War would persist in varous forms until the fall of the Soviet Union in 1991, and it was a power struggle waged on political, economic and propaganda fronts between the Eastern and Western blocs.

But Stalin past away in 1953, and Nikita Khrushchev rose to power. He became Communist Party secretary in 1953 and premier in 1958. This is the man John F Kenndy had a lot of meeting with. Why? Khrushchev installed nuclear weapons just 90 miles from Florida`s coast in Cuba. He instigated the Cuban Missile Crisis in 1962.

Khrushchev made a lot of refoms that made Soviet society less repressive. He criticized Stalin for arresting and deporting opponents and took steps to raise living conditions, freed many political prisoners, lossened artistic censorship and closed Gulag labor camps in a time called de-Stalinization.

Deteriorating relations between the Soviet Union and neighboring China and food shortages across the U.S.S.R eroded Khrushchev`s legitimacy in the eyes of the Communist party leadership. Members of the Communist Party removed Khrushchev from office in 1964.

Later on, another communist party politician rose to power. Mikhail Gorbachev came to power in 1985. He introduced two sets of policies he hoped would reform the political system and help U.S.S.R become a more prosperous and productive nation. These policies were called Glasnost and Perestroika.

Glasnost was a plan for political openness. It adressed personal restrictions of the Soviet people. Glasnost eliminated remaining traces of Stalinìst repression, such as banning of books. Newspapers could criticize the government, and parties other than the Communist Party could participate in elections.

Perestroika was a plan for economic restructuring. Soviet Union began to move toward a hybrid communist-capitalist system. (This system is more like the system we see in China today). The communists created a committee called Politburo. They would still control the direction of the economy, but the government would allow market forces to dictate some production and deveopment decisions.

Gorbachev came to power only 6 years before Soviet Union collapsed in 1991. It started in the 1960`s when the Communists Party elite gained wealth and power while millions of average Soviet citizens face starvation. Soviet citizens didn`t have basic needs such as clothing and shoes.

The divide between the extreme wealth of the Politburo and the poverty of Soviet citizens created a backlash from younger people who didn`t like the Communist Party`s ideology as their parents had. On top of that, Soviet faced foreign attack on the economy.

President Ronald Reagan isolated the Soviet economy in the 80`s from the rest of the world and helped drive the oil prices down to the lowest level. When the gas revenue dropped, the U.S.S.R began to lose its hold on Eastern Europe.

Gorbachev`s reforms didn`t work well and did more to hasten the collapse of the Soviet Union than to help it. They started to lose control over the Soviet people and that was the beginning of a new movement in the Soviet satellites of Eastern Europe.

In 1989, a political revolution started in Poland and that spread to other countries that led to the toppling of the Berlin Wall. On Saturday it is 30 year since the destruction of the wall that divided Berlin physically and ideologically from 1961 to 1989.

By the end of 1989, the U.S.S.R had come apart at the seams. An unsuccessful coup by Communist Party hard-liners in August 1991 sealled the Soviet Union`s fate by diminishing Gorbachev`s power and propelling democratic forces, led by Boris Yeltsin to the forefront of Russian politics.

In 1991, Boris Yeltsin rose to power, and served ass the president of Russia until 1999. Though a Communist Party member for much of his life, he came to believe in both democratic and free market reforms, and played an instrumental role in the collapse of the Soviet Union.

Boris Nikolayevich Yeltsin was the first freely elected leader in Russia`s 1,000-year history. He became well known for railing against corruption and fired hundreds of lower-level functionaries.

Gorbachev`s Glasnost and Perestroika program had hoped to change but not destroy the Soviet Union, but he resigned on December 25, 1991, and 6 days later the Soviet Union officially dissolved and was replaced by a political weak Commonwealth of Independent State that Yeltsin had established along with his counterparts in Ukraine and Belarus.

With the Soviet Union out of the way, Yeltsin eliminated most price controls, privatized a slew of major state assets, allowed for the ownership of prive property and otherwise emraced free market principles.

Under his watch, a stock exchange, commodities exchange and private banks all came into being. As president, Yeltsin broke from his Soviet predecessors by generally supporting freedom of the press, permitting public criticism and letting Western popular culture seep into the country.

After surviving impeachment proceedings, Yeltsin disbanded the communist-dominated parliament in September 1993 and called for elections to a new legislature.

A new man came to power. Vladimir Putin rose to power when Boris Yeltsin announced his resignation on December 31, 1999. Yeltsin handed off power to Putin, his chosen successor and the last of his prime ministers, who granted him immunity from prosecution. Since 1 January 2000, Vladimir Putin has been Russia`s president. And he is very popular.

Putin is considered to be the most powerful leader in the world and his Unity Day is the beginning of a new era in Russia. Unity Day calls for tolerance between various ethnic and religious groups in the Russian Federation.

The Romanov family was backed by the Orthodox Church and so are Vladimir Putin. Lenin and his terrorist group of Communists killed thousands of priests and burned and bombed hundreds of churches in Russia. We can now see what values Putin stands for.

There are some pople that don`t like Putin, but they are few. And they are Nationalists. On the Unity Day they are marching in Moscow and it`s called «Russian Marches.» But the Nationalist marches have been losing popularity in recent years. Last year, only 400 people turned up and that is down from 25,000 in 2011.

Unity Day, held on November 4, was established in 2005 by President Vladimir Putin as a replacement for Soviet-era commemorations of the 1917 Bolshevik Revolution.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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The United States are growing faster than China

The world`s biggest economy is the United States followed by China, and sooner or later, China will replace the locomotive and be the biggest economy in the world. You can delay it, but it will happen in this century anyway.

They are both in conflict with each other with tariff tensions and a trade war. A strategy that is bad for both of them in the long run. The U.S is waiting for China to come to the table and make a fair deal. Today is the first day of talks to renegotiate the trade dispute between them. A deal that President Donald Trump repudiated.

Take a look at the chart above. Surprisingly, the U.S is more productive than China. Twice as much. The US economy advanced an annualized 3,4 percent on quarter in the third quarter of 2018 while the Chinese economy grew by “only” 1,6 percent quarter-on-quarter in the three months to September last year.

The Chinese economy is slowing and this has been going on for a while. But it`s not because of the trade war. China obviously have some problems and the China-U.S tension is one of them, but this is not the first time China and the U.S are in conflict with each other.

Deng Xiaoping and President Jimmy Carter signed a historic accord in 1979 and then reversed decades of China-U.S tension. Deng Xiaoping was a Chinese revolutionary and veteran of the Communist Party and he was eager to adopt capitalist methods and reforms in order to stimulate economic growth and restore confidence in the party.

Today, China has embraced capitalism but remains Leninist at heart. The founder of the Soviet Union, and his Bolshevik revolution, Vladimir Lenin changed China`s economic and political landscape.

Lenins Russian revolution in 1917 have a causal relationship with the birth of Chinas Communist Party in 1921 and the founding of the People`s Republic of China in 1949. As Mao Zedong once said: “The salvoes of the October revolution brought Marxism-Leninism to China.”

Lenin has played a much bigger role in China than Karl Marx and Friedrich Engels. The wholesale execution of enemies inspired Mao`brutal dictatorship and his launch of the Cultural Revolution under the theory of “continuous revolution under the dictatorship of the proletariat.”

Now, China has changed dramatically since Deng Xiaopings free-market reforms and Maos terrifying Leninist experiment in utopia. Now, China is the world`s second largest economy. 70 percent of the “socialist” economy is privately owned and nobody have more billionaires than China right now.

China is more a Leninist capitalist state than a Marxist socialist one. 800 million people in the middle class has jumped on the consumerism train in only a couple of decades under the stewardship of communist totalitarianism. Leninism`s lasting legacy.

On the other side, China has a debt crisis and a real estate bubble, so the question is; when will China collapse, and will it cause a global crisis? China is declining and it will continue to do so. Lending money to Kenya or Venezuela to name a few, are putting them all in a debt trap and it remain to see that Beijing can afford it. I`m in doubt.

Xi Jinping and his leaders know that they are in a very weak position, so they have to come to the table and make a deal with the U.S.

The stock market is in a correction territory at the moment. Investors have priced in two rate hikes this year and some U.S-China tension fear, but Trump reports “Big Progress” in trade talks with China were top trained negotiators came to the table earlier today.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

 

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