QUESTION: Marty; I keep in mind when the Chinese language central financial institution stated they have been utilizing capital stream evaluation which is your mannequin. You stated China can buy US debt straight from the Treasury and never the NY bankers. They did that in a matter of weeks. So once they say they’re on the precise facet of historical past, are they speaking about your mannequin forecasting they’ll exchange the US because the monetary capital of the world?
NH
ANSWER: You must perceive that Asians imagine in cycles. They’re a part of their faith. Richard E. Nesbett wrote an fascinating e book entitled “The Geography of Thought, How Asians and Westerners Assume In a different way … and why.” He attributed his work to a Chinese language pupil who stated, “You understand, the distinction between you and me is that I believe the world is a Circle, and also you assume it’s a line.” He goes on to cite him:
“The Chinese language imagine in fixed change, however with issues at all times transferring again to some prior state. They take note of big selection of occasions; they seek for relationships between issues; and so they assume you possibly can’t perceive the half with out understanding the entire. Westerners reside in an easier, extra deterministic world; they concentrate on salient objects or individuals as an alternative of the bigger image; and so they assume they’ll management occasions as a result of they know the foundations that govern the conduct of objects.”
In my 40 years of coping with governments, I NEVER needed to clarify cyclical principle in Asia – solely to American & European who do assume at all times on a linear foundation. They apply this to evaluation like local weather change. The temperature has risen say 5 levels on years and so they challenge that out and say we are going to all die in 7 years. NEVER does the West ever forecast cyclically – it’s at all times linearly.
China perceive cycles – we don’t. They perceive the rise and fall of empires, nations, and metropolis states. They perceive that Communism failed for it tried to defeat human nature. They see the long run cyclically and that’s what they’re saying that they are going to be on the precise facet of historical past. They know the West is crumbing from inside. The time that the US palms that title to China is upon the doorstep. The West has carried out nothing however attempt to pressure their concepts upon everybody abandoning freedom and so they have launched the cancelation tradition. We now have misplaced all of the values that made America nice. It’s time for Europe and American to die the identical approach all empires die, by their very own hand of suicide.
China being on the “proper facet of historical past” means they know america is declining and they’ll step into the void. They will “really feel” it with or with out my fashions.
