On the show, I try to articulate my position which is that if the yields crash down, the Fed will not have a choice but to pause or pivot.
Insight Into The 20th Party Congress
The second half of this episode is dedicated to three clips from “Lei’s Real Talk ,” a YouTube channel that reports on events in China. Lei is a financial professional turned independent journalist. She has a deep experience with China, Chinese culture, Chinese politics and censorship. I thought her insights were extremely valuable.
First, Lei goes over the additions made to the Chinese Communist Party’s (CCP) Constitution, which was voted on immediately after Hu Jintao’s public purging on the last day of the Congress.
The additions included:
Making Xi Jinping synonymous with the CCP; no one in China can question Xi without questioning the party itself.
Adding language about Taiwan, with caveats that can be interpreted any way Xi wants.
Shifting the CCP’s economic focus to the domestic economy and placing exports as a way to boost domestic supply and demand.
The second clip was a history lesson about how the CCP views Xi Jinping within their internal historical accounts (a characteristic of Marxism is rewriting history). Lei says that the top strategist to Xi compared Xi’s rise to power as on par with Mao in 1935 and Deng Xiaoping in 1978. These two events were framed as saving the party from collapse. Now, Xi is seen as “saving the party from collapse.”
At the end of this second clip, Lei gives her opinions of what this means for the near term in China. She concludes there will be more purges, much tighter economic controls and China will basically become “a super-sized version of North Korea.”
In the last clip, Lei answers a question from her audience about whether the CCP truly thinks these reforms will lead the country to becoming the global hegemon or if they are happy with No. 2 status. Her answer is blunt: The CCP doesn’t care about the economy. The economy is by far a secondary concern to the party and power. They believe so much in Marxism that they will push forward and try to impose it domestically and abroad.
This is a guest post by Ansel Lindner. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.
