Journalist Greg Hunter describes the movie Crazy Rich Asians as not only being funny and clever and lovely but also instructional. In many ways analogous to China and American financial realities of today.

China has blown past the U.S. in so many ways. The Financial Times just published a piece on the future of war that described the different approaches to technological development between the East and West. It quoted a senior national security official speaking of how the U.S. has wasted years on wars in the Middle East and Afghanistan, occupied by fighting low-tech conflict against people who lob rockets out the backs of trucks, while China’s getting really busy and savvy and catching the U.S. military capabilities in almost every conceivable way.

China has vowed to draw equal with the U.S. in artificial intelligence within two years, overtaking it by 2025, and becoming the dominant world force by 2030. This is no small ambition. “Whoever becomes the leader in this sphere will become the ruler of the world,” Russian President Vladimir Putin predicted last year.

If you have been studying their investments in technology and the application of technology that’s been made by China and Asia over the last fifteen years – in just high speed trains alone – then you’d know they’ve blown right by us here in America. And the thing about Crazy Rich Asians is you can see in a movie, without even going to Singapore, the extraordinary financial and technological achievements being made by the fastest growing pool of wealth in the world.

REMEMBER, THERE’S NO DEMOCRACY IN CHINA

Asian financial advancement may sound all wonderful and great, but it’s important not to forget that there’s no such thing as democracy in China. They burn bibles and demolish Christian churches. Chinese dictator for life, Xi Jinping, has overhauled the Communist state constitution, scrapping term limits, giving the Chinese president a mantle of power which Pentagon officials say approach that of an “emperor”.

Even billionaire hedge fund magnates concur finding the Chinese global approach to economics to be more than a little distasteful. One year after slamming Facebook and Google at Davos 2018 as being a “menace” and “monopolistic” and predicting it’s “only a matter of time before the global dominance of the U.S. IT monopolies is broken,” George Soros took aim at what he considers to be an even greater threat to his pocketbook: China.

“China is not the only authoritarian regime in the world but it is the wealthiest, strongest and technologically most advanced,” zerohedge.com quotes Soros as saying about Beijing. “This makes Xi Jinping the most dangerous opponent of open societies.”

Soros also warned that China’s increasing use of AI and a social credit system to monitor its citizens – sound familiar America? – could result in the most ruthless yet technologically advanced authoritarian regime in history. He also proposed solution to the hot button problem: crash China’s economy and market, a favorite Soros “solution” to a nation with which he finds disagreement.

Investment adviser Catherine Austin Fitts believes that Chinese financial power is being wielded intentionally to insert Asian technological experts into strategic outposts within our economic infrastructure. “I’m not saying I’d want to live in China. But you know in fact I think the reason there was such an effort to bring the estate tax down – is there’s a tremendous effort to recruit, whether it’s the wealthy families, or the IT and technology experts – there’s an incredible effort to recruit those people into the United States. And they want to come because it’s a more attractive lifestyle and there’s a lot more freedom,” she tells Greg Hunter of USAwatchdog.com.

That’s one of the things we’re having to deal with right now. Because the housing market is softening, with so many Americans living out their ‘American Dream’ on the streets or in their cars, having found themselves ‘priced out’ of home ownership by the wealthy Asians moving in. And you’ll see this not just happening in America, you’ll see this all around the world. And it only promises to get more profound as the Asian explosion grows more prosperous for those who invest in it.

Their attitude is if you’re never going to pay back any of the national debt then you might as well just keep spending, building a solid global financial infrastructure, and raise the value of the Asian work force and China’s share of the global reserve currency.

“You can imagine if the wealth that has happened from going from a per capita income in China of $5,000 to $15,000, imagine what it’s going to be like when it goes from $15,000 to $60,000,” Austin Fitts says. America’s middle class will basically become nonexistent.

WE LIQUIDATED OUR MIDDLE CLASS

So what is all this leading up to? Are we going to see a hot war?

There’s all these trade wars and trade talk going on as President Trump attempts to rebalance the global trade picture. As Catherine Austin Fitts sees it, when we started to invest in China in the early 90s, and China developed, China basically financed America keeping our “false prosperity going” and we built the manufacturing industry in China.

“We basically made it possible by – we buy treasuries then we pay Chinese manufacturing companies to make stuff Walmart then sells. And it deflated the value of labor and it deflated the cost of consumer products and it basically kept the American consumer going for ten to fifteen years. The American consumer also financing it with the housing bubble,” Austin Fitts says.

And we kept it going by liquidating a lot of our manufacturing infrastructure. Basically what we did is we kept it going by ‘dumbing down’ America financially, and liquidating a lot of our family net worth.

“So we liquidated the middle class in a way that kept their (American consumer) false prosperity going for some period of time. But it was very deflationary for labor. Now China is not interested in financing America, they’re interested in financing their own growth on ‘the Silk Road’,” Austin Fitts says.

And that’s not deflationary, that’s inflationary. Because now they’re competing with us for global resources and they’re not financing our continued financial game. So they’re rebalancing away from dependency on the United States and the United States has put itself in a deep hole that we’re still fighting to get ourselves out of. And President Trump’s trying to a certain extent to dig the country out of the hole by moving manufacturing back to the U.S., and North America in general..

“Now what we managed to do was we managed to move a lot of pollution to China. So China has some serious environmental problems because essentially we exported our pollution. Now with robotics and advances in material science and 3D printing etc. we can move a lot of that back without having a lot of pollution. And so we’re doing that,” Austin Fitts says.

And of course busting the unions. “We busted the unions,” she says. “So we’re moving that back down and that’s all part of the rebalancing.” What happens next is anybody’s guess.

BUT COULD THERE BE WAR?

But could there still be a hot war?

Austin Fitts believes China’s military is more than up to the task. “What China did is China took that manufacturing and is now making very big bets on building their military. And if you look at their plans for building their military and building liquidity globally, one, they’re trying to build a currency that can function for a much higher percent of the market share of reserves and reserve currency. And they’re trying to build a global military that will support that, including a global satellite system and a navy that can control the ceilings in the South China Sea,” she says.

History tells us that the U.S. started their prosperity several centuries ago on a similar path to build a reserve currency when it finally got control of the ceilings in the Caribbean, and if China gets control of the ceilings in the South China Sea, and they continue to build liquidity on the global reserve currency, “then you’re talking about potentially somebody that could really cut into the market share of the dollar,” Austin Fitts says.

And so whether it’s building out of the ‘Silk Road’ or controlling the ceilings of the South China Sea you’re talking about some serious competition for the U.S. “So what Trump is saying is we’re financing somebody who’s now moving to take away our reserve currency status and our military supremacy and we’re basically financing that. And that’s got to change and that’s got to stop,” Austin Fitts says.

And so what America’s president is trying to do is to rebalance and give the reserve currency more strength and take some of that strength away from China and that’s why the squabble over the South China Sea. So the South China Sea will grow as one of the planet’s hottest spots that we’ll have to pay close attention to during this developing global financial saga.

CHINA IS NO LONGER FINANCING OUR FALSE PROSPERITY

The bottom line is the fantasy is over for the American consumer, for the bubble of false illusion of our being a prosperous nation has now popped. China is no longer financing our false prosperity.

China has become a serious competitor on the global stage for reserve currency, for control of global ceilings, and for economic supremacy. While China was building an AI and high tech juggernaut, American tax payers watched our government get bogged down in the Middle East costing us more than $7 trillion. China has been able to come up to speed on AI and high tech much faster than we thought they could, and we’re battling to try to catch up.

That’s one of the reasons the Trump Administration continually talks about tech and Who’s the leader in tech? and Trump screams at the tech companies and then talks about a “Space Force”. It’s because ultimately if you look at the control points in the global economy space and high tech are going to be two of the most important ones, and we’re not close to leading in either.