Tariffs

How can you tell which country has the stronger economy?

Economy of scale 101: if you produce for a bigger market, you produce in greater quantities. This reduces production overheads per item, allowing you to have lower manufacturing costs per product. Also, it allows you to keep a lower profit margin per item while still earning more on the overall volume. This makes your product cheaper to the consumer, who will therefore prefer it, all else being the same.

Countries with bigger internal markets tend to have manufacturers who are producing for those bigger markets, and therefore have the lowest prices. When such big countries export to the smaller countries who don’t have such economies of scale, they can keep the prices so low, it completely suppresses the manufacturing in the smaller countries, because they cannot hope to be competitive with the technologically superior and cheaper results of strong competition on a big marketplace; it’s like introducing more highly evolved animals to some island that was geographically separated and shielded from the competition that produced better living things. In order to survive, a small country introduces tariffs to make the imported products more expensive and level the playing ground. The bigger country then complains internationally that free trade is great, freedom is wonderful, there should be no borders that separate people, and all other bullshit that is meant to increase pressure on weaker countries to remove tariffs and allow the invader’s products to dominate their markets and destroy their manufacturing industry. Once everyone’s manufacturing is destroyed, the prices will of course be raised.

I’ve been repeating for years that American whining about free borders and free trade has only one purpose, to pressure weaker countries into allowing America to flood their markets with American products, counting on the fact that nobody can retaliate and flood American markets with cheaper products because nobody can match American economy of scale, because they manufacture for a very competitive market of 300 M people. They didn’t really count on China because they saw it as basically their own offshore factory, with labor and location outsourced in an extension of American manufacturing sector’s effort to keep the prices down. What happened is of course that China learned how to make their own products even cheaper than the China-manufactured American products, while keeping the quality the same, or actually stepping it up, because where there’s manufacturing, there’s also experimentation and research that ends up evolving better technology.

That’s why Huawei is a problem for America. It is now actually a manufacturer of superior 5G technology that America cannot match. The roles have turned and now America is a technologically weaker country whose marketplace is to be conquered by a stronger country’s superior products. Also, a technologically superior country that controls the infrastructure can use said infrastructure for its own nefarious purposes if it so desires. America is used to being in that position, but as soon as it smelled the coffee and understood that China is going to replace it in this position, it started raising hell about unjust this and that and switching from a globalized free market paradigm to a “we must protect our small and weak country from stronger countries flooding our market with their products”. It’s really funny to watch.

It also explains why China is now rooting for free trade, no borders and broader international cooperation and other nonsense. It calculated that it has the technological upper hand and nobody can successfully compete with it on its own market, while it can out-compete anyone else. It’s like the osmotic pressure: you can have a porous membrane that allows two-way flow of liquid, but the liquid will always flow in the direction of lower pressure.

Trump’s statements that China is going to pay those tariffs and not the US citizens is of course a blatant lie. Of course the US citizens are going to pay those tariffs, that’s how tariffs are supposed to work. China is not going to reduce their prices for that amount, that’s impossible. The irony is, China will now benefit from all the open borders and free trade infrastructure that the Americans pushed for when they thought they will forever remain the dominant manufacturing and technological power, and they can’t just say it was all horseshit intended to collapse our borders, destroy our manufacturing sectors and make us American colonies. No, it will be “yellow man bad”.

 

Method to the madness

When I wrote in that previous article about how America uses AI and supercomputer simulations of socio-economic systems, something clicked: “wow, that actually explains why their geopolitical moves look so idiotic”.

Let me explain.

America makes chaos in the Middle East, destroying Libya and Syria. America switches focus to North Korea, stirs up the conflict almost to the point of war, then starts peace negotiations, but then freezes them because it doesn’t actually want peace there. It stirs up a civil war in Ukraine, creates a chaotic state and freezes it, not allowing it to be solved. It creates chaos in Venezuela by introducing sanctions that make sure the situation can’t be improved, and then tries to introduce their asset Guaido as the new “president”, making sure the government of the very incompetent communist Maduro is de facto cemented in place because patriotism. They pressure Europe to start importing economic migrants who are sure to create chaos and disruptions and possibly throw Europe into civil war. They stir up conflict with China over whatever – Taiwan, some islands in South China Sea, economy, trade. They wage systemic psychological warfare against Russia, to the point where their politicians are cornered into either recommending total war with Russia or be labelled Russian assets.

It all looks crazy, as if they are going around the globe and intentionally stirring up conflicts, not allowing conflicts to be resolved peacefully, and rotating them in circle, shifting attention from one to another with no apparent goal other than increasing the intensity and amount of the global anxiety level.

And then it clicked: it looks like something you would have in a simulation: a scalar labelled “anxiety level”. A simulation tells you that you need to increase the global anxiety level and keep it within a range, and then your operatives get orders to stir up shit all over the world, including pulling Trump’s strings to go do something (or his daughter is going to have an unfortunate accident). What’s going on doesn’t make any sense otherwise because it all looks as if CIA is being run by idiots, but if it’s actually being advised by a simulated system with specific goals in mind, and if the simulation tells them that they need certain parameters within certain ranges in order to get desired effects, and the system monitors the social network for feedback on the emotional states of both the general population and specific groups, this chaotic madness is exactly what it would look like, only there’s method to the madness.

The more I think of it, the more it looks like Alex Jones actually had the right idea about what’s going on, only he’s too unhinged to explain it properly so it sounded crazy. It all looks like someone hired very intelligent futurologists to plot a pathway from the present day to some very distant future where mankind either sheds the flesh and is pure AI, or exists as hybrid biotech merged with computers, and colonizes planets orbiting the nearby stars. The simulation was probably trained by feeding it the information about the past, and when it became capable of reliably “predicting” the present, they started trusting it with predicting the future, and I would guess this has been going on for a while and they train the AI with feedback from the reality, which revises the projection of the future. I would expect the simulation to inform them about divergencies – for instance, if you want to get your kind of future, you need to change certain things in the real world to steer things in a different direction, and then human agents get instructions on what to aim for, and then we get to see politics that looks insane, but it’s only insane if you think it’s done by humans who do things based on emotions, for instance if you think that Trump is tweeting his nonsense based on his emotions and thoughts, and not because he’s instructed to do something by his handlers in Langley, who are instructed what to do by the deep strategy team.

So, basically, it’s the futurologists directing the machines that treat humans like predictable entities, basically a herd of cattle that will respond positive to green pastures and negative to cattle prod, and can be steered easily in certain directions, and the only opposition to this are the human geo-strategic teams, primarily in Russia, who are so far incredibly disciplined in diffusing this chaos and are instructing other countries and promoting restraint.

Undercurrents of doom

Some or all of you must be thinking that too many “unrelated” things are going on for it all to be either accidental or in fact unrelated.

There seems to be a clear message out there that this world is coming to an end, and everybody should prepare, get their shit together and be ready to leave at any time.

Also, there are things clearly going wrong with the world, making the status quo untenable. I will list the short and long term problems in no particular order.

The Western civilization is falling; the scourge of feminism produced a temporary increase in economic output at the price of doubling the workload per family at half the pay per breadwinner, and also reduced the birth rate to the lowest in the world, while the concept of universal human rights prevents the wealthy Western countries from shielding themselves from the influx of migrants from countries with high birth rates, who are essentially parasites unable to contribute anything of value to the West, and their only intent is to harvest the resources that are exposed due to the West’s ideological vulnerability. The ideological concepts of progressivism, of replacing the religious foundations of the West with secular ones by introducing the concept of “human rights”, brought the entire civilization to the point where this concept will either be recognized as fallacious and deadly and thus rejected, or the entire civilization will collapse from both internal and external pressures. One thing is certain: the men in the west will not offer their lives in defense of a feminist civilization that openly rejects their essence. The civilization will fall without any defense, and the “powerful and emancipated” feminist women will be bought and sold on the Muslim slave markets of the future Europe. When Islam conquers the West, it will be nothing but darkness and death until the end of time. There is no culture that became Islamic and then stopped being Islamic. The only way that happens is when the Muslims are militarily defeated and purged from a territory, but once a population contracts the mental disease of Islam, it cannot be cured. The same applies to other mental infections, such as Christianity or Communism. The Christian ethics, according to which the poor are inherently virtuous compared to the rich, refuse to die once planted, and were simply recycled by Communism. Once a population contracts Communism, it refuses to be cured, because it implicitly assumes to have a high moral ground. East Germany is a wonderful example. Similarly, once someone contracts Islam, some implicit assumptions about the nature of the relationship between human beings and the transcendental are basically impossible to remove, and those happen to be the most harmful ones, such as the assumption that God wants/demands human submission. Once that’s implicitly accepted, it’s game over for the human spirit.

The world is dying. The layout of the tectonic plates, as of some 65 MY ago, opened up the circumantarctic sea current which plays a role that can most accurately be described in thermodynamic terms as a method of pumping fluid through a heatsink, after first circulating it through all the heat exchangers. Every single time in the history of the planet when ocean could circulate freely around one of the poles, it ended up with a planetary glaciation, which ended only when the layout of the continents due to slow geological forces rearranged the land mass in such a way as to impede the Coriolis-driven free flow of sea water around the poles. It takes a while for the planet to cool down, and this time it took 65 MY, but a few MY ago the process accelerated so much that almost all the buffer gasses leeched out of the atmosphere and into the ocean, to the point where Milankovitch cycles actually started throwing the planet in and out of periods of glaciation. This is a fatal threat, because historically speaking glaciations are extinction level events for hominid species, and this Pleistocene glaciation cycle is only an overture to the runaway glaciation, where Milankovitch cycles are no longer sufficient to bring the planet out of glaciation, at which point the ice covers the entire surface of the planet, and stays there until the tectonic plates shift again to impede the circumantarctic watercooling pump. It’s quite ironic to see all the fuss about global warming on a planet that is on its death throes due to runaway cooling. The only thing that could actually save the planet is if the Andes were crushed and used to fill in the gap between Antarctica and South America. I’m not sure that the current trend of replenishing the buffer gasses with industrial output will have any permanent effect, because the actual cause of the problem is geological. It might turn back the clock and give the world a few more millions of years of borrowed time, and then again it might produce a large Dansgaard-Oeschger event that might actually accelerate the process of cooling. The thing is, nobody knows, because the climate models are just not good enough; too many thermodynamic buffers and accumulators, and the system is inherently chaotic. The long term prognosis is unchanged: unless by some miracle the increased CO2 output manages to stabilize the climate on the pre-Pleistocene levels, almost all life on the Earth’s crust will be extinct in the timeframe of a couple of millions of years. Humans will be extinct much sooner than that.

We are in a critical phase of the West where the perfect storm is brewing, the kind not seen since the collapse of the Roman Empire. America obtained total control of the global economy, and holds the world hostage with a combination of economy and technology. Those forces are straining and will inevitably collapse. I can’t see America going down into the night without a fight, and my analysis is that what we are seeing since the 2001 in the world are merely steps America is taking to make sure that the collapse goes down on their own terms, and that they are the ones set up to emerge as the leading power once again when the nuclear dust settles. Russia appears to have complete understanding of the situation and seems to be spreading this understanding among other powers, and their strategy is to not take the bait, buy time, prepare in all possible ways, and turn what America planned as a game of chicken into a bull fight, where the bull of America keeps charging and provoking conflict, and the matador of Russia skillfully evades, dodges and absorbs, until the bull tires out and is reduced to just standing there for the kill. America is doing its propaganda thing, but for the first time in history it’s not working, because you can’t convincingly portray someone as aggressive when he’s objectively trying to avoid conflict at all cost and you’re the one charging at him and poking at him for years, trying to provoke a retaliatory strike in vain. This game, however, will soon end, because American economy is on borrowed time since 2008. The people who kept it running for so long are incredibly smart, incredibly competent, and they have immense means at their disposal. The fact that they kept it up for so long, despite the terrible cost inflicted to America’s geostrategic position by the fact that Dollar was openly used as a weapon, is testimony to their competence. However, the others are not stupid either. If anything, the Russians are smarter, and the Chinese are not far behind either, especially since they are consulting with the Russians and coordinating strategic moves. It’s quite difficult to de-dollarize your economy and do it in such a way as not to provoke total confrontation with America before the process is done, but people doing it are very good at what they are doing. From what I can see, the experts on both sides are incredibly smart and they are not really making unforced errors in this complicated game of chess, but I don’t see many ways of it ending that don’t include a nuclear war. At one point, America will run out of time, and will be forced to initiate a conflict regardless of whether their psychological warfare against Russia and China was effective; they would prefer to play the role of a good guy defending the free world from the evil forces, but if that doesn’t work, they will still strike openly as a power-hungry empire that doesn’t want to go down quietly. The inherent arrogance of America makes this inevitable.

Society is at the point where the combination of increasingly totalitarian states and pervasive technological surveillance all but guarantees complete and permanent loss of personal freedoms, as well as the loss of ability to manifest forms of society that politically diverges from the form that is presently in power. Essentially, the West is turning into a form of Stalinist Soviet Union, but armed with cameras on every corner, and AI that looks through all those cameras, as well as those on the satellites and drones. People sense this somewhere, and while some rationalize and justify, and others murmur in protest, everybody understands that doing something about it will come at incredible personal cost. However, at a certain point everybody will rise up at once, as was always the case in the end of all totalitarian systems of the past. People who are in power today will end up like Nicolae and Elena Ceausescu. However, this is not inevitable, and it’s quite possible that everybody will live on like cows on farms – captive, controlled, comfortable and powerless to change anything. But they will proceed to like the trending things on Facebook and Twitter, thinking they are changing the world, and they will trade Bitcoin, thinking they are wealthy. People fear strong AI because they think the machines will end up ruling the world, but I think Frank Herbert was closer to the reality of what is to happen: it’s not the machines, but people in control of the machines, who will enslave you, and the stable end-results will be either the Brave New World, or a Butlerian Jihad. The lesson of Herbert’s Butlerian Jihad? “Thinking” machines are just something other people use to enslave you.

But there is something more important at play in the background, something that is actually important, and yet even if I told you what it was, which I in fact already have, nobody would take me seriously, so I won’t even bother. It’s not as if words or belief will affect the outcome.

Some thoughts

I’ve been thinking about several things that are difficult to categorize, so I’ll write about all of them at once.

Why smart people make mistakes, for instance people predicting collapse of the global Dollar-based economy for years already, and evidence appears to contradict their predictions. It’s quite simple, really. They understand the deep underlying reality of the situation, but they underestimate the significance of other factors, such as meddling and interventions of very powerful players who desperately try to at least postpone the breakdown, if not completely alter its form. It’s only logical, if you assume the prediction is correct. It then also follows that the people in power will see what’s going on, and they are not going to take it sitting down. They are smart, and they have huge means at their disposal, and they have absolutely nothing to lose. They will print tens of trillions of fake digital dollars that will buy out the dollar bonds and then annihilate both. They will print a hundred paper-gold bonds for each gold bar, and sell them quickly to induce panic, and then when people start selling the actual physical gold, buy it with the fake Dollars they printed out of thin air, and then justify the printing of those Dollars with the newly acquired gold backing. Print trillions of dollars but suppress the price of dollar-backed oil, among other things by faking the existence of supposedly huge shale-oil supplies which are in fact thin air. Cripple the rest of the world with artificial roadblocks infiltrated into the payment system so that everybody else is fighting an uphill battle compared with the American companies. Print huge amounts of fake money and infuse them into your own technological companies to give you the upper hand. Print huge amounts of fake money and invest them into equally fake companies just to get them an IPO and bloat the GDP, retroactively justifying the printed amount with GDP numbers. Emit huge amounts of cheap credit into the economy to keep it on life support, while making the rest of the world pay for it, and if someone objects, threaten them with sanctions and war.

Most smart economists understand that the foundations of the Dollar and the American economy itself are untenable, and yet they fail to understand the lengths to which the players who created this system will go to defend it. Also, they see that the collapse will be a great disaster, yet they fail to actually use this as a premise and think from the position of the people in power who see the same thing, but also have the mechanisms at their disposals to do the otherwise unthinkable things – create a war that will hide and transform the collapse, from the “emperor is naked” testimony of fraud and theft that is the basis of the modern America, into a completely different narrative, that of “evil enemies of democracy” who attack and subvert America at every angle, to the point where they caused the great economic collapse itself, at which point America had no choice but to retaliate with nuclear weapons, but alas, it incurred heavy casualties, and all this chaos and destruction is actually someone else’s fault.

I actually think everybody was right – the people who see the geostrategic situation and understand that it is precursory to nuclear war, the people who see the foundations of the Dollar economy and understand that it is untenable and collapse of the debt economy is inevitable, the people who sense unclear doom and prepare, the people who fear the technocratic surveillance state, the people who fear the collapse of the Western civilization and its moral and intellectual foundations. They are all right, and it’s all happening on the same vector. It’s just that they underestimate the people who are actually guiding the process.

They are not stupid, and regardless of what they are telling you, they themselves understand perfectly well what’s going on, they have excellent analysts, military strategists and economists at their disposal and when they make and implement plans, they are incredibly more far-reaching and layered than most people are willing to accept. Imagine what would be going on if I was in charge of this thing, and if I had the wealth and power of America at my disposal to implement everything. I would be playing at 20 chessboards at once, with hundreds of people as smart as myself delegated to specific tasks. If you think you would be able to see what I’m doing from the outside, or predict events based on some part of the pattern you’re perceiving, then you’re naïve beyond belief. I would cook up specific points of chaos in order to divert attention of all other players, play feints and counter-feints intended for obscuring the sight of their analysts, introduce dozens of legitimate issues they can’t ignore while not being sure which one is the real attack-vector, and I would have a perfectly calm mind while stirring up the fogs of war that increase other players’ emotional potential, making their thinking slower and more inert, more prone to distraction.

That’s why smart people make mistakes. They don’t understand the power and ferocity of the guiding intelligence of the enemy. Sure, it’s easy to say it’s naïve to perceive the economy in the state of deep manipulation for decades and pretend there’s nobody at the wheel, that it’s just instinctual trading, reflex of self-preservation of the bankers, greed and power, but it’s actually emotionally preferable to the recognition that it’s all the result of people smarter than yourself at the wheel, with all the power in the world at their disposal, and that most of the events that seem unrelated are actually intelligent moves, most likely aided by artificial intelligence which simulates moves and their likely effects for the players, so that they can pick the best strategy against the simulated rational self-serving opposition.

If you gave me a trillion dollars, that’s what I would do – have the game-theory experts design and supervise the acres of supercomputing technology running AI software, and have it running a very detailed simulation of the real world, displaying the probable responses of all the world powers, set up the scenario very similar to the actual state, and then run millions of various scenarios, until you map out those with the highest probability of you ending up on top. If you think they are simulating the climate, and not simulating this, with all the computer game technology being there for decades, where you can run a combination of Civilization, Sim City and Starcraft on computers the size of a smaller city, running tens of thousands of teraflops-level computation units in parallel, well, let’s say I’m not betting high by predicting this. The thing is, human emotional responses are easy to predict, and it gets easier the bigger the group, so it actually gets easier when you’re trying to work on a nation-level. You give the computer the option to tweak variables, and it will end up with something that will look very weird, disconnected, not at all like figures on the same chess board, the way computers come up with weird optical designs when you apply them to making lenses. However, when you actually grind that weirdly looking piece of glass into the aspheric shape recommended by the computer, you see that it actually works.

That’s my problem with the AI. The computers themselves are incredibly stupid, and are no danger. However, when you take those computers, with their enormous quantitative power of simulating trillions of outcomes and pruning the tree of options until you get something that’s useful, and give them to extremely smart people, who work for extremely evil people, you end up with a nightmare of incredible proportions.

Liberty and safety

Whenever a government introduces some totalitarian measure that infringes upon liberties and freedoms of all, they justify it with “safety for you and your children”. Every single restriction introduced, from speed bumps and surveillance cameras to financial restrictions, is justified with either “need for law and order”, implying that only a criminal would oppose it, or “safety of your children”, implying that you must be incredibly irresponsible and callous to oppose it.

My comment on that is very simple. Regarding “safety” I will quote Benjamin Franklin:

“Those who would give up essential Liberty, to purchase a little temporary Safety, deserve neither Liberty nor Safety.”

Regarding criminality, people implicitly act as if the laws introduced by the state are the laws of God, not something voted on by a bunch of incredibly corrupt people in the parliament. Every evil thing imaginable can become a law, and actually was law at some point in time. In America, the blacks were counted as three fifths of a person and were legally considered property. In the Third Reich, the Jews, Slavs and other “undesirables” were legally stripped of all rights and property and “disposed of” in death camps. It was all perfectly legal, so you might understand my cynicism regarding human laws. I might obey them for fear of reprisals, but I have little inherent respect for them.

Regarding surveillance, I urge you to study the history of the Hollerith (IBM) punch card computers in the Third Reich. Please do, don’t take my word on it. People didn’t object to the census performed by the Nazis because they implicitly assumed that it would be impossible to analyze all those mountains of data and figure out whose third cousin is a Jew. Unfortunately, they didn’t understand that the Nazis had the technology to do just that, and with very little work. They categorized the data in computationally-friendly forms and used the mechanical punch-card computers to do the work. After that, they very accurately knocked on people’s doors and brought their precisely targeted victims to the death camps. But don’t believe me, because apparently nobody does, I’m supposed to be the one everybody doubts. Just do your own fucking homework and understand what those cameras on the streets, “for the safety of your children”, are actually for. And understand that “money laundering” is a code for “saving your money from forced confiscation by the state”. Every single measure against “money laundering” and “financing terrorism” will be used against you, when you try not to pay the 75% tax, or when you are designated a “right-wing domestic terrorist” because you don’t want your children to be indoctrinated with pro-Muslim or gender-fluid brainwashing at school.

But first, you need to be ready to sacrifice your lives, and the lives of your children, for liberty. Remember that there are no human rights. It’s a “social construct”, as the leftists like to say. There are now “human rights” because the law says so. The laws are changed in “emergencies”.

So, if someone wants to introduce some restrictive measure for the “safety of your children”, and you say “no thanks, I’ll take my chances”, do you understand what kind of hell will break loose?