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Economic Trends: China’s Crumbling Economy

buildings

China’s crumbling economy originated in the 1980s when China was opening up its economy to the rest of the world by creating special economic zones and implementing the one-child policy, which crippled China’s birthrate with social engineering.

The Chinese did this due to the communist philosophy, which enabled the state to interfere in individual’s lives due to the belief that the collective comes before the individual.

One of the critical battles during the Cold War from 1945 to 1989 was the battle between collectivism and liberal and economic capitalism, which saw the individual succeed but with the collective state-managed controlled economy stagnate and ultimately fail.

The Chinese political leadership chose to charter a third way, not communism with Chinese characteristics but capitalism with Chinese features, due to the underpinning ideology behind the Chinese Communist Party, which has been proven to be the wrong way to manage a nation.

That is why the Chinese Communist Party only maintained its legitimacy for its economic success, not through ideological frameworks of capitalism versus communism, due to China being a market-driven, not a state-driven economy, since the 1980s.

Xi Jinping: Economic Trends and China’s Crumbling Economy

CCP’s Decision-making

At the end of the Second World War, the global population was 2.3 billion; by 1980, it was over 4.4 billion people. This marked a doubling of the worldwide population, with the baby boomers born between 1946 and 1964.

This led to growing fears in the economic and academic community that humanity would experience global famines and mass starvation, which was prevented due to the creation of genetically engineered crops and improved technologies.

The Chinese Communist Party had the information in the 1960s and 1970s that they were heading towards mass famine and that the globe was not built to support a global population of over 7 billion, with the world’s current population at over 8 billion.

They were also heavily influenced by a view of eugenics and communist ideology but from the viewpoint of state intervention in people’s lives to stop China from starving to death.

These fears were ultimately unfounded and were essential to understand throughout the 1950s and 1970s; there were mass fears of global famine and global cooling, which were the global warming climate change fears of the 1970s.

Deng Xiaoping: Economic Trends and China’s Crumbling Economy

Deng Xiaoping

In the early 1980s, China began the process under the leadership of Deng Xiaoping to open up the Chinese economy to foreign investment and begin developing a sophisticated market-based economic system for China, which was still being loosely controlled and monitored by the Chinese state.

China implemented this strategy because economics in the Far East was heavily influenced by the attitude exported from Japan, particularly in their reindustrialisation after its destruction and defeat in World War II.

Japan also industrialised in the late 19th century and conquered Korea and large chunks of China, which was only possible through state intervention and using debt to finance and grow Japan’s economy.

Furthermore, Japan has few natural resources, which drove the need for state intervention and the use of debt and imperialism to expand its economy.

The Japanese use the economy as a political end, not how the West uses it. It is a purely economic tool based upon principles of the free market for the Chinese; they adopted this viewpoint that the economy serves political ends and not vice versa.

Deng Xiaoping began opening up the Chinese economy to foreign investment offshore from the border with Hong Kong, which was still controlled by the British and its crumbling empire. It was handed over to China in 1997, marking the historical end of Britain’s empire.

The city chosen to open up the global economy only had a population of 330,000 people, which was tiny by Chinese standards; in 1980, China became the first nation to be home to over 1 billion people.

In the 40 years since Shezhen opened to the rest of the global economy, its economists exceeded that of its nearest neighbour, Hong Kong, in 2018, and the city is now the eighth largest city in the world at over 13 million people.

Shenzhen: Economic Trends and China’s Crumbling Economy

Impact on China

There are significant economic and social consequences of China’s opening economy and the development of the cities, with 65% of its population living in cities and 50% of its population moving to cities throughout the 1990s.

This was the largest migration of people in human history and marked the turning point in China from an agricultural economy to a manufacturing and industrial economy in the past 40 years.

There are two critical long-term economic impacts of this choice.

China experiences seven generations of economic development within one generation and experiences the same demographic decline experienced by other industrial nations rather than being spaced out over seven generations. Still, it is happening now in one generation.

When nations move from agricultural to industrial economies, people move to cities, and that’s when children become a liability and expensive; in the short term, previously, children were a free form of labour, but in small city apartments, they become a financial liability.

This is why nations, once they begin industrialisation, have a collapse or decline in their birthrate; for example, the United Kingdom’s birth rate declined over seven generations, which kept the overall population stable, and the UK started down that road in 1769.

India is another recent industrialising nation still behind China in industrial capacity and still has a good birthrate, which is just at replacement levels at 2.5, though some data says it is lower; this is an indicator of a historical trend of industrialisation, which leads to the collapse in the birthrate.

Old Chinese Man: Economic Trends and China’s Crumbling Economy

China’s Housing Crisis

China’s economy is functioning in one continuous economic input, and that is the continued phenomenal growth of the Chinese economy that is being powered by its industrial capacity and potential as well as internal factors that artificially raise its growth.

The construction is being promoted in China due to the artificial inflating of its GDP numbers, which has led to China building 65 million houses with a population the size of France with no people living there.

This inflation in the Chinese housing market could lead to an economic crash. The 2008 banking crisis and the 2007 and 2006 US mortgage crisis will look like not much of a big deal.

From the beginning of the recession in December 2007 to its official end in June 2009, real gross domestic product (GDP) — i.e., GDP as adjusted for inflation or deflation — declined by 4.3 per cent, and unemployment increased from 5 per cent to 9.5 per cent, peaking at 10 per cent in October 2009.

Real gross domestic product (GDP) fell 4.3 per cent from its peak in 2007Q4 to its trough in 2009Q2, the largest decline in the postwar era (based on data as of October 2013).

The unemployment rate, which was 5 per cent in December 2007, rose to 9.5 per cent in June 2009 and peaked at 10 per cent in October 2009.

This is just information about the United States, how it affected the rest of the world, how future crashes will be affected by China, how it will be unprecedented in financial history, and how it will affect the global economy.

Chinese citizens cannot invest their savings in assets outside of China due to restrictions made by the Chinese Communist Party that limit the flow of capital outside of China.

Therefore, to invest for retirement, Chinese citizens put their money in the Chinese stock market when there is an oversupply of housing and insufficient demand, which makes it incredibly unlikely that they could use the savings invested in property to live a comfortable retirement.

This leads to a considerable possibility of a Chinese financial crash triggered by the Chinese housing market’s overproduction of housing due to incentives not made by consumers but by the Chinese Communist Party due to state intervention in the economy.

Remember that for the Chinese, economics does not serve the purpose of the economy; it serves the purpose of political aims, which is, again, a different viewpoint than what is predominant in Western nations.

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 Brazil’s New Tropical Strain of Wheat

agriculture arable barley blur

Brazil may have found a new strain of wheat that could revolutionise the global power imbalance between the global North and the global South. 

The global North by nations that industrialise, and let’s primarily in the 19th century, with the British Empire being the first nation to go down the road of industrialisation beginning in the 1760s though historians debate the start date.

The nations that make up the global North are primarily nations that were part of the United States alliance to defeat the Soviet Union from 1945 until the collapse of the Berlin Wall in 1989 and the fall of the Soviet state in 1990. 

As for the Global South, these nations tend to be African nations, China, India, Eastern European nations, South American nations and the Russian Federation. However, these definitions will be debated whether China is a developed nation or a developing country. 

Nations not part of tropical zones and traditional farming economies have been typically more successful than nations that rely on other food produce and animal husbandry to survive. 

The tropics are the regions of Earth surrounding the Equator. They are defined in latitude by the Tropic of Cancer in the Northern Hemisphere at 23°26′10.5″ N and the Tropic of Capricorn in the Southern Hemisphere at 23°26′10.5″ S. 

The tropics are also referred to as the tropical zone and the torrid zone. Which, in layperson’s terms, is pretty much the nations within the centre of the earth if you are viewing the tropical area from a map. 

With the breakthrough in wheat development, Brazil introduced a new wheat strain that can thrive in tropical climates, paving the way for self-sufficiency in just five years! Discover the incredible breakthrough that could change the game for agriculture. 

However, the Geopolitical Analyst Peter Zeihan stated, ‘It will be two years to see if the new wheat works’.

sunset cereals grain lighting  Wheat
Photo by Pixabay on Pexels.com

 The Balance of Power

Nations like Brazil may no longer depend on food imports but become self-reliant with food production within their countries.

A lack of dependency on grain imports from places like Ukraine, the United States and its corn belt and Russia are high grain producers.

With nations like Brazil with tropical climates having the possibility of self-sufficiency, this provides the opportunity for these nations to wean themselves off dependency on other states.

Nations don’t have friends; they have interests; each country competes in either hostile or friendly competitive nature to become a dominant power in their region or aspirations like China and India to become regional or global hegemonies.

It will be quite some time to see whether or not the new Brazilian strain of wheat will be successful, but with globalisation breaking down, this will be a godsend to states that are more dependent on global trade for national survival.

If the nation is not food sufficient, then that nation in a deglobalised world will face starvation and governmental collapse nations like Saudi Arabia, Jordan, and other desert kingdoms depend on international trade and the continued survival and maintenance of their populations.

Sources

Britannica Corn Belt region, United States link

National Geographic Tropics link

Zapp Brazil Develops Tropical Wheat and Predicts Self-sufficiency in 5 Years link

Tweet CZapp link

Spiegel Brazil Has High Hopes for a New Strain of Wheat link

Zeihan on Geopolitics Brazil’s Game-Changing Wheat: A Revolutionary Shift in Global Power || Peter Zeihan link

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The End of Germany as We Know It

neuschwanstein castle

Germany faces three major problems, with two currently out of Germany’s control.

No matter what happens, we will be witnessing the end of Germany as we know it over the next three decades and the end of the German ethnicity and culture within our lifetime.

Either way, Germany grew as a culture and nation, and we know today won’t be here by the end of the century.

The three issues that will cause the end of Germany are its declining demographics, which have been declining for over a hundred years; Germany has been over-reliant on natural resources from the Russian Federation and sending its manufacturing to China.

The final issue affecting Germany is its energy policy; with Germany having had multiple coalition governments with the Green Party of Germany, it has closed down other avenues for energy generation in favour of green energy.

At best, green energy, which is nuclear, solar, wind and other natural sources, only makes up 10% of Germany’s energy consumption.

This doesn’t make green energy bad, but only solar energy works where it’s sunny and wind where it’s windy. If you’ve ever been to Germany, it is not a very sunny place, so solar energy is not viable to replace traditional fossil fuels.

The problem with many European nations and other Western nations is the ideological gap between what works, what the voters want and reality. In this century, the nations that will prosper the most will be those plugged into reality.

The End of Germany as We Know It

Choices Germany Made

The reason Germany is staring down the barrel of a gun and seeing the destruction of its ethnic group within this century is due to choices made by the German government, German manufacturing and the choices of the German people not to reproduce.

These historical and demographic trends have affected Germany for over a century and since the fall of the Berlin Wall in 1989. During the Cold War, Germany chose to maintain positive relations with the Soviet Union and eastern Germany.

The positive outcome of this experience was that Germany was reunited in 1990. From this experience, Germany hoped that the Russians and Chinese would transform from a totalitarian regime committing mass murder and genocide governments.

However, the Germans have chosen its two main trading partners, Russia and China, and cut ties with the United States even though the Americans are not the evil Empire.

With the war in Ukraine since February 2022, trade relations between the Russian Federation and Communist China collapsed immediately after trade sanctions started in Russia; the Germans opted to move predominantly to China as a trading partner.

Unfortunately, the Germans are finding out you cannot guarantee support and cooperation from dictatorships and totalitarian regimes, and now they have to pay for the consequences.

partenkirchen old town and mountains
Photo of Germany

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Deglobalisation: The US Withdrawal as Global Protector

america ancient architecture art

The driving force behind deglobalisation is the decrease in the size of United States destroyers in terms of the available numbers to patrol global shipping lanes and protect international shipping not just for the United States and its allies but also for non-aligned nations, including Russia and China.

As of writing, the United States has 150 destroyers and 11 supercarriers, insufficient to protect the global oceans. Its leading American allies, such as the Japanese, began a rearmament programme to protect their national interests.

As globalisation breaks down because the USA is no longer interested in maintaining a globalised international economy, the US allies will begin rearming themselves and pursuing a more independent foreign policy strategy.

The United States does not need globalisation even though it will lead to higher living costs and inflation as it brings its industries and manufacturing back to America.

Furthermore, the United States is a continental economy, meaning unlike smaller nations that have fewer resources, the United States doesn’t need globalisation.

Deglobalisation and Globalisation: Yalter Conference

Why America Created Globalisation

Unlike the British Empire during the age of the Pax Britannica from 1815 to 1914, the British pursued a free trade policy and the development of the first version of globalisation to enrich the English economy and expand its influence globally.

The British needed its empire to become wealthy by trading in foreign markets within the imperial system that the British and other imperial powers created in the 18th, 19th, and early 20th centuries.

Furthermore, Britain is an island nation much smaller than its neighbouring European rivals and tiny compared to the United States. For the British to be a relevant power and successful, it relied on international trade and shipping.

The United States never needed globalisation and only created globalisation as we know it; the end of World War II in 1945 was to buy an alliance and win the Cold War against the Soviet Union, which lasted from 1945 to 1989 and the final collapse of the Soviet system in 1990.

With the end of the Cold War, the United States’ incentive to maintain globalisation is fading, and the growing disinterest of the United States since 1992 is leading to a deglobalisation of the international world order.

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Japan’s Rearmament

mt fuji

For people interested in the Far East, Japan’s rearmament is one of the biggest news stories to hit the region. It is historically significant for the Japanese, with their pacifist constitution being in force since the end of the Second World War in 1945.

On September 16, 2022, Fumio Kishida, the Prime Minister of Japan since 2021, released three new versions of national security documents focusing on national security, national defence strategy and national defence programme.

The papers are the first significant change to Japanese defence policy since 2013; documents are also blunt regarding the threats facing the Japanese home islands being described as ‘the most severe and complex security environments as the end of World War II’.

One of the fundamental changes they made to the Japanese military budget was a move away from spending 1% of the national GDP, and national defence was the standard North Atlantic Treaty Organisation convention of 2% of GDP.

Currently, as a share of GDP placed in context, the United States of America only spends 3.1% of national GDP and is expected to decline to 2.8% by 2033. The current economy of the United States is currently at in terms of GDP $26.854 trillion. In comparison, Japan’s GDP is at $4.4 trillion and is the world’s third wealthiest nation.

Regarding Japan’s chief Pacific rival, the Chinese government announces defence expenditure information annually.

In March 2023, China announced a yearly defence budget of RMB 1.55 trillion ($224.8 billion)1, marking a 7.2 per cent increase from the 2022 budget of RMB 1.45 trillion ($229.6 billion).

Japan’s Rearmament

Why Japan Wants to Rearm

The current president of Japan is pursuing the rearmament and re-militarisation of his nation, which is quite surprising due to Fumio Kishida supporting policies of nuclear disarmament and coming from the piece wing of the Liberal Democratic party (自由民主党, Jiyū-Minshutō).

Three massive geopolitical threats threatened the survival and independence of Japan, with the Japanese government calling the Chinese ‘greatest strategic challenge ever to securing the peace and stability of Japan’.

The other two significant threats to the Japanese were the North Koreans and Russians. People in predominantly Europe forget that Russia stretches from Eastern Europe to the Japanese archipelago with the Sakhalin Island.

The Japanese did not favour rearmament and remilitarisation for two fundamental political reasons. First, Japan lost World War II and the United States in retaliation rather than trying the Japanese culture or its independence as a people.

America opted for a truly American and unique strategy to integrate Japan into the global economy, maintain Japanese identity and enforce a Japanese peace constitution.

An essential tenet of the pacifist constitution is Article 9 of the Japanese Constitution, which contains the No war clause.

It occurred on May 3, 1947, immediately after World War II. The text of the article of the Japanese Government formally renounces war as a right of sovereignty and refuses to settle disputes using military force.

The second or most fundamental reason the Japanese did not maintain a strong military was the security provided by the United States during the Pax Americana.

Unfortunately, the Japanese know Americans are no longer interested in global affairs and being the world’s policeman.

Since the election of William ‘Bill’ Clinton in 1992, American presidents have been increasingly focused on internal American politics, and the American public has voted for increasingly isolationist presidents.

George W. Bush went against this mould primarily due to the wars in Afghanistan that focused American political presidential leadership mainly in that part of the globe, which prevented George W. Bush and his successors, Barack Obama and Donald Trump, from focusing on the Pacific.

It must be stated that it wasn’t Donald Trump and his successor, Joe Biden, that saw American foreign policy moving from the European continent to the Pacific.

Even with the seachange, the American Navy has consistently shrunk since the end of the Cold War in 1989 and no longer can secure the world shipping lanes.

According to the geopolitical analyst, author, and YouTube Peter Zilhan, America’s allies increasingly have to fend for themselves in a more chaotic and disorganised world.

Japan’s Rearmament

Why Japan Needs Weapons

With the USA being overstretched with the war in Ukraine and when it comes to pursuing a naval policy with the US destroyers down to 150 and a focus on supercarriers, which are nation killers are not practicable when it comes to protecting the world’s oceans, Japanese must rearm.

With this environment, North Korea, China and Russia have more missile capability than the Americans and Japanese have in that region.

Japanese coastal defence missiles are currently limited to a range of just 200 km; even the air missiles Japan has acquired from Norway are only capable of 480 km.

This is not something the Japanese can tolerate any longer, with the Japanese planning to at least have the capacity to launch missiles able to reach targets at least 16,000 km, which is far enough to give the Japanese the capabilities to attack Beijing and Pyongyang in retaliative strike.

The Japanese government that the only reason they would ever use this capacity in a first strike and not a retaliative strike would be if they had solid Intel that North Korea, China or Russia was planning to attack Japan or its allies in the Pacific.

Opening phases of Japan’s rearmament were the purchase of Tomahawk missiles from the USA and a focus on domestic production within the Japanese home islands.

Furthermore, the Japanese government has contracted Mitsubishi Heavy Industries to produce a Japanese homegrown type XII missile.

The Japanese government is moving quickly in a missile-buying bonanza to become less independent internationally from outside sources inside the Japanese home islands. Sipri stated that Japan gets 80% of its missiles from the USA.

Japanese are running out of Babies: Japan’s Rearmament

Problems With Japan’s Rearmament

The Japanese plan to rearm has one massive problem: the rearmament programme’s ability to have the population size necessary to fight a war on the battlefield and within industries.

Japan’s objective to improve the security situation in the region may not be feasible with Japan’s declining demographics, and its military has a problem with over 16,000 positions that cannot be filled.

If the Japanese cannot replace personnel, it is doubtful they could automate in time with the projection of the Chinese invading Taiwan within the next five years, nor is it possible to increase its birthrate in time.

The Japanese birthrate has been below replacement levels since the 1970s, partly due to the oil crisis in the early 70s and the issues in Japan and the ones being faced by most developed and industrial nations throughout the world.

The Japanese issues are caused by modern lifestyle, culture, and other factors that cannot be easily fixed, which Japan has been trying to fix for over three decades.

An option the Japanese could use is immigration. Unfortunately for Japan, South Korea and China, these are Monotonicity. Unlike their Western counterparts, they don’t have the option to bring immigration due to their protection attitudes to their culture.

Westerners, particularly people part of the Anglosphere, who are the English-speaking peoples, may perceive this as racist because if they moved to these nations, no matter what they do, they would never be considered Chinese or Japanese.

Western countries deduce they have this attitude toward culture. Still, it was decided politically and culturally to move away from a monoculture into a multicultural society, which these nations, as stated above, don’t have that option as a means to regrow the population numbers.

China is running out of Babies: Japan’s Rearmament

Chinese Internal Issues

The geopolitical analyst and author Peter Zilhan predicts that this decade will be China’s and Russia’s last decade as a serious international power, and he gives two main reasons for this.

The first one is a terminal demographic issue in these two nations that won’t start to recover until the twenty-second century.

The second reason is that the Russian Federation cannot maintain its multi-ethnic empire without a sufficient population, and the Chinese Communist Party (CCP) is unlikely but possible to maintain CCP leadership.

For these two reasons, war with China or Russia is highly possible.

Within the context of this article, China is the biggest problem for Japan.

The Chinese Communist Party is facing a perfect storm with an undercounting of its population by at least 100 million and China missing over 80 million women who have never been born due to the impact of the one-child policy.

The one-child policy was implemented due to the CCP’s ideology that allowed for state intervention, state eugenics and the overall attitude that the state has the right to play an active part in its population’s lives.

Because of these beliefs, the one-child policy, which started in 1979, limited Chinese couples to only one child due to the fear of mass starvation.

The long-term impact of that policy 40 years later is that millions of girls that could have been born have been aborted due to the desire to continue on the family name in the Chinese society that is more favourable to males.

Also, due to China’s declining demographic, it is a country that is getting old before it can get rich, in contrast to its neighbour Japan, which faced the same issue and has faced the same problem since the 1990s.

However, the Japanese managed to reindustrialise and revitalise its economy after it was devastated during World War II and became wealthy enough to pay for its increased ageing population.

As for China, it has run out of time with its Boomer generation hitting retirement this decade and the bulk of them most likely being dead by 2040.

What this means for the China Communist Party to survive even though it will most likely lose any foreign war with the United States and its allies.

There is a solid amoral case for the Communist Party.

Even if it lost the war, it got to choose the time and place of its defeat and dictated the narrative of Chinese history after the event, where the Chinese Communist Party’s priority was survival.

The Chinese Communist Party have rewritten history before with China’s so-called hundred years of humiliation from 1837 to 1949, which is based partly on historical nonsense.

China has been divided for at least half its existence throughout its long history, if not more, depending on how you view Chinese civilisation.

It has repeatedly collapsed, faced rebellions, and has seen Southern China repeatedly breaking away from the North.

Chinese history is long and complicated, and the public only tends to get a slim-down version. Very few people understand the strong ethnic divide between northern and southern Chinese, according to Jerrard Diamond, author of Guns, Steel and Germs.

As for the CCP, it is to survive. If this means at least half a billion dead Chinese, according to Peter Zilhan, that is something they can live with.

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Why Are Americans Jumping Ship

shallow photography of usa flag

The question needs to be asked why are Americans jumping ship and leaving California, New York and other cities in the United States for new locations? 

This is internal migration within the United States of America, not migration to other nations, particularly the English-speaking world and Europe. 

People migrated due to better economic prosperity or an escape from persecution immigration to the United States since the 17th century experienced waves of immigration from war-torn Europe, particularly the English exporting its religious extremists to the North American continent. 

People also tend to move locations due to economic prosperity and the perception of a better future, an example of this is the gold rush of the late 19th century to California. 

Now America is experiencing a new rate of internal migration, with over 600,000 people leaving the state of California and New York in 2022.

portrait of a female model wearing a black top
Photo by Korede Adenola on Pexels.com

Americans Jumping Ship to New Locations

In recent years 88 United States cities with a population of over 250,000 of these, 77 of these have experienced a shrinkage of the population or a slowdown in growth due to the mass exodus from American cities, which is having companies desperately trying to hold onto talent found within cities. 

Cities are economic powerhouses where traditional manufacturing exists, and greater access to Labour can be harnessed within one location. 

If we look back to the 19th century, 80% of people lived on farmland and sustained themselves through agriculture, and today people working in agriculture in developed countries hover around 4% of their population. 

With 77 of the 88 cities having low productivity or a loss of population, the United States may be experiencing 87.5% of United States cities in serious trouble in coming years. 

The reason why there may be trouble is without a young population that is paying taxes and keeping the local economy running, the local legislators and governments of the cities and states, depending on how internal taxation works within the United States, the cities and government benefits will no longer be sustainable in the long-term. 

Without taxation, there can be no government programs or benefits because, without taxation, there must be services that keep modern cities running.

skyline photo of empire state building in new york city
Photo by Roberto Vivancos on Pexels.com

The 2008 Credit Crisis

In the year 2000, the trend for people to move away from cities began with bankers lending to People who would not traditionally be able to afford mortgages to buy houses in the suburbs. 

The moment these mortgage interest rates went up meant that certain people never paid back their mortgages, triggering the 2007 housing crisis, which collapsed the global economy in 2008. 

During the 2008 credit crunch, banks lost over US$1 trillion in bank loans and toxic assets; between 2007 and 2009, people were kicked out and forced to leave their properties where they were forced to move back in with their parents, moving to apartments or alternative living arrangements like being homeless. 

After the 2008 credit crunch and collapse of the US housing market in 2007, cities began to grow again due to a lack of options or options being taken away so that people could no longer live in the suburb. 

Due to this devastating event and lack of access to credit, the millennial generation put off raising families and made more significant focus on their careers. 

However, according to geopolitical analyst and political analyst Peter Zeihan, the millennial generation is the most underqualified in United States history. 

This levies the underskilled workforce the USA need to run its economies, and by the time the next generation is ready, it will be in the 2040s in terms of overall skills in years the millennials have at least lost half a decade. 

From 2021 to 2022, the United States experienced a decline in city populations of 0.95%; this is the first time in recent American history that its cities have experienced a population decline.

new york city queensboro bridge in urban area
Photo by Samson Katt on Pexels.com

The Loss of Population in American States

With Americans jumping ship of its 50 states, these are the divided territories of the United States governed by each state under the leadership of the central government led by Washington DC in the office of the president of the United States of America. 

Of these 50 states in 2022, California, New York, and Louisiana experienced the most population loss from their states of population. 

In 2022, California lost 343,000 of its current population, 39.2 million, to internal migration within the United States of America. 

New York lost 300,000 of its current population of around 19.8 million, and Louisiana lost 46,600 people, with its overall population of approximately 4.6 million, to internal migration within the USA. 

The trend of people leaving these three states began in 2020 with American citizens trying to escape large cities due to the COVID-19 pandemic and lockdown, which some individuals saw as draconian and infringing on American liberties. 

For People who are not American, it is essential to remember the context of the founding of the United States in rebellion against its whole nation Great Britain starting in the American Revolutionary War from 1775 until 1783, with the United States declaring its independence in 1776. 

With this history, the United States population is naturally in certain areas of its people, and political culture is antic central government authority because it was a central authority which the founding fathers and the 13 colonies rebelled against in 1775. 

A further example of Americans being firmly against the central government’s power is during the American Civil War from 1861 to 1865 when the southern states rebelled against the US federal government based in Washington over the divide between state and federal government’s rights. 

Another interesting fact to highlight about this event is that American politics allows large-scale disputes, at least on paper, to be resolved through an armed conflict like the Civil War rather than have issues resolved peacefully. 

This is baked into the American political culture that these kinds of conflicts can be resolved at the point of a bayonet. 

It’s also important to highlight that the New York state area of New Jersey lost 64,200 people to migration in 2022, and Connecticut lost 13,500 to migration. 

The fall in these populations can be linked to the financial services that dominate these states’ economies, and with people not moving back to big cities having experienced the countryside or urban areas, it is seeing the wealth transfer out of major cities. 

This can be further seen in Massachusetts, which lost 57,000 residents in 2022 to internal migration. 

Losses of these populations in New York and Massachusetts could be a precursor of economic depression in the Northwest of the United States, with the New York economy making 8% of the total USA GDP and Massachusetts making up 3% of GDP. 

This means these two states are worth 10% of the American GDP. The continuing population loss will lead to lower tax revenues, many cities cannot run their public services, and the local economy will collapse if this trend is not reversed. 

There is a strong correlation between people leaving states with big cities, with Illinois losing 141,600 and Pennsylvania 40,000 people to migration within the United States. 

Also, eight out of the ten largest cities in the United States have recently lost some of their population; these states which are losing people to internal migration are New York, Philadelphia, Los Angeles, Houston, San Diego, Dallas, Chicago and San Jose.

Sources and Biography

https://www.cbsnews.com/news/states-where-americans-are-moving-florida-texas-north-carolina-south-carolina/

https://realestate.usnews.com/places/rankings/fastest-growing-places

https://www.nasdaq.com/articles/nearly-1-4-americans-are-looking-to-move.-these-are-the-cities-theyre-leaving-and-why

https://www.npr.org/2021/03/14/975826704/why-america-is-moving-money-space-family-lifestyle

https://www.axios.com/2023/01/31/cities-pandemic-moving-trends

https://www.forbes.com/home-improvement/features/states-move-to-from/

https://news.yahoo.com/americans-moving-urban-counties-141924038.html

https://www.theatlantic.com/newsletters/archive/2022/04/metro-areas-shrinking-population-loss/629665/

https://theweek.com/travel/1020498/why-are-americans-moving-south

https://www.pewtrusts.org/en/research-and-analysis/blogs/stateline/2022/03/23/the-pandemic-prompted-people-to-move-but-many-didnt-go-far

https://www3.forbes.com/money/the-u-s-states-people-are-fleeing-and-the-ones-they-are-moving-to-version-5-ifs-vue-mn-wnb-2/

https://www.nar.realtor/blogs/economists-outlook/where-people-moved-in-2022

https://www.cbo.gov/publication/58612#:~:text=Population%20Growth.,per%20year%20over%20that%20period.

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Ukraine War: Winter 2023 and 2024

person in jacket running on snow covered ground

If you have been following my writing since July, you may remember me writing about the Russians targeting power grids and other energy sources during the winter of 2022 and 2023; the Russian Federation did this during the initial Ukraine war launched in February 2022.

The Russians targeted Ukrainian energy due to the complete logistical disaster because Russian mechanised units ran out of fuel for their vehicles and had to withdraw from northern Ukraine back into Belarus.

Due to the Russian military’s failures and corruption, they had to start using siege tactics because if the Russians did not defeat the Ukrainians on the battlefield, they would try to freeze them to death.

Furthermore, the Russians are deliberately targeting the Ukrainian ability to feed themselves and export agricultural products around the world, which could lead to a mass famine of at least 400 million people, primarily affecting China and the nations like Niger and Nigeria.

As of September, Putin has sufficiently disrupted Ukraine’s grain exports and agricultural sector. Meanwhile, the Russians were bolstering their wheat exports, so global supply has held steady, and prices are still down.

However, relying on Russian grain is unreliable due to the high potential of sea conflicts, privateering, or other factors that could disrupt Russian grain from the Black Sea to the rest of the world.

Eduard Zernin, head of Russia’s Union of Grain Exporters, cited a potential aggravation of what he called ‘hidden sanctions’ that ‘may lead to an increase in freight and insurance costs’ for Russia.

This ‘will be reflected in the price level of wheat and other grains on the world market’, Zernin told Reuters.

Give some perspective on the importance of Russian grain. Russia is the largest wheat exporter in the world, followed by Canada and the United States. Three countries export more than 20 million tons of wheat: Russia, Canada and the United States.

Russia accounts for nearly 24% of the top 20 largest wheat exporters.

To secure the screen supply, the best option, though it may be unrealistic due to a lack of political will in the West and both American political parties, Democrat and Republican, being hotly divided on the issue of Ukraine due to some Americans viewing the conflict as a foreign war.

The infrastructure development option is building railway networks connecting Europe and the grain from Ukraine to transport agricultural materials.

As the temperatures shift, we will see the Russians change their strategy again. They will transition from attacking Ukrainian agricultural infrastructure to targeting the power grid, but just because the Russian focus has shifted doesn’t mean grain markets will be stable.

Ukraine War

Donate To Ukraine Links

United24 link

Come Back Alive link

Nova Ukraine link

Razom link

The $1K Project for Ukraine link

Hospitallers link

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Chinese Housing Crisis

person cycling with cart on alley

The Chinese political system over this decade will be critical for whether or not it will collapse its political system in its current form due to the series of crises hitting the Chinese state, such as China’s terminal demographic decline, its housing crisis and the breakdown of globalisation.

It would be idiotic to predict the future of China’s political system throughout its long and bloody history of over 3,500 to 4,000 years.

China is full of historical examples where it collapsed as a united political entity only to be reunited.

Also, this being the modern world and factoring in modern technologies, it is unpredictable to see what will happen and that the crises could be delayed.

The Chinese housing crisis is caused by China’s investment-based economic model, which means resources and capital flow towards the development and construction within China, artificially raising national GDP.

Investing in infrastructure leads to economic growth, and better infrastructure helps to build any economy; this is the basis of Adam Smith’s Wealth of Nations, published in 1776.

Also, since 1980, China has transformed itself from an agricultural economy into an industrial and urbanised economy within 40 years, with its population going from 80% of its people living in rural areas to now living within inner cities and urban areas.

Despite the success in China being replicated in South Korea and Japan, the investment model of investing in infrastructure is not sustainable and can lead to stagnation, which Japan has experienced for over 30 years.

Unlike the Chinese, the Korean and Japanese private investment models could balance out its economy in international investment opportunities and outsource its manufacturing abroad due to Japan suffering terminal demographic decline.

Unfortunately, the Chinese capital flight restrictions meant they looked for alternatives to invest their capital in the Chinese housing market.

The issue with the Chinese housing market and why it’s facing a housing crisis is that there is enough housing for twice the Chinese population, and the Chinese have overbuilt by 200%.

Furthermore, the Chinese citizens dumped their life savings into housing, generating the world’s most massive overbuild. As China collapses and people’s money is tied up in this useless real estate, it doesn’t take much to imagine what happens next. Let’s say Xi might be losing some of his fan base.

People typically invest their capital into housing costs under normal circumstances because the housing price doubles an average every 20 years.

As long as there is a high demand for housing, housing prices continue to increase.

Unfortunately, the Chinese housing crisis is caused by too much supply, which means that the worth of properties will decrease, making people’s investments into the housing market a net loss and the possibility they can sell their property and live off their savings becoming increasingly remote.

Chinese Housing Crisis

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The Death of Conservatism

two women kissing while wrapped in rainbow flag

What does it mean to be Conservative, and how does it mean different things to different people’s indifferent nations, different cultures, different legal systems, and differences in how their societies are governed and the historical background of their nation?

A Conservative from the United States or the Western world in ultraconservative nations like Iraq, Iran or Saudi Arabia will be seen as radical leftists.

Conservatism also means many different things to people on politics’ left and right sides.

On the left, a Conservative is somebody who favours small government and low taxes and is in favour of liberal economic policies and religious conservatism.

In contrast, a Conservative may view a liberal or leftist as somebody who wants to tax the rich, destroy normative and cultural institutions, and see the elimination of a nation’s identity.

This can be seen strikingly in 2015 when Canadian Prime Minister Justin Trudeau declared his country the world’s first post-national state while defining Canadian values.

This means that Postnationalism or non-nationalism is the process or trend by which nation-states and national identities lose their importance relative to cross-nation and self-organised or supranational and global entities and local entities.

What Justin Trudeau and other liberals are aiming for is a world of their nations not having ties to their historical past and their cultural legacies, in this case, the Anglo-Saxon past and the history of English.

To a lesser extent, nations such as America, Australia, Canada and other postcolonial countries of the conservative and social traditions developed and created in England.

These institutions are the English common law and legal system that is not top-down but bottom-up when it comes to creating and implementing laws, not from a higher authority but from an authority from the People.

The Death of Conservatism: the Decline and Fall of the Roman Empire

The Lesson from Edward Gibbon

Edward Gibbon is a historian and author from the 18th century. He created his most famous work, The Decline and Fall of the Roman Empire, where he discusses why the Roman Empire fell and how this was linked to the failure to pass on the cultural legacy of Rome to another generation.

He strongly linked the death of conservatism in antiquity and the early mediaeval ages to the fall of the Roman Empire.

His reasoning can be linked to people in our time not having children, who are not creating a family unit and a social and educational environment where a legacy of culture, nationhood, and belief in their own home nation identity is not passed on to their children.

This is why people like Justin Trudeau and people educated within liberal educational systems don’t see themselves as English, American, Canadian or other because they were raised to be individualistic and not part of a community.

You may be familiar with this, but you must ask yourself if you have a father, mother, brothers, uncles, or other family connections worth my titles and descriptions.

Suppose these connections are fragile and can easily be broken. This is a sign of the failure of intergenerational families from the Silent Generation that fought during World War II from 1939 to 1945.

The succeeding generations of boomers, Generation X, Generation Millennials, and Generation Z, have failed to pass on the baton of culture, civilisation, and other legacies of their societies to the next generation.

According to historian David Starkey and the Conservative philosopher and politician Edmund Burke, Conservatism is each generation passing on the legacy of previous generations and the institutions created for each succeeding generation.

Conservatism is not the absence of change, merely the conservation of national identity and ensuring there is a nation and a better society and that each subsequent generation is simply the custodian and protector of that legacy for England; this has been happening for over 40 generations.

For the Chinese, that would be 66 to 88 generations.

Here is an excellent Greek proverb that may explain it far, much better than I can: the importance and death of conservatism in liberal societies: ‘A society grows great when old men plant trees in whose shade they shall never sit.’

The proverb speaks to public service, to actions that benefit others, not oneself.

The Death of Conservatism

Liberalism is the Death of Duty

What does it mean to have a liberal society, and how to be liberal is to be free of social constraints, which include the family and other constraints that can be positive, such as fatherhood and devotion to the family? Liberalism is the focus on the individual over society as a whole.

Economic and social liberalism has strengthened since at least the 18th century. It can be argued the reason for its success can be seen in its poster child of liberalism, the United States and the British Empire.

To varying degrees of success nearly 300 years, the most dominant nations on this planet have been nations that part of the Anglo-Saxon culture grew and had the legacy of liberalism and freedom baked into their political systems.

This freedom has seen the rise of their economies and the development of unprecedented technological change since the ending of World War II in 1945.

But with the stated liberalism is the death of duty and lease to people’s liberation, which is both good and bad, you cannot be a liberal if you are a mother or have commitments to something beyond your wants and desires.

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Geopolitics: How British Build a Global Empire

beige cat with gold colored crown

All nations expand, die or prosper due to the environment of their geography, which we call geopolitics, which affects how policies are made and what countries can practically accomplish.

For instance, if a nation historically did not have access to coal and steel, it would not industrialise.

For England and the greater United Kingdom, made up of England, Scotland and Wales, its geography does not give a fantastic advantage that enabled the British to build the world’s largest empire ever or will ever be.

For the British Isles, half of its landmarks are mountainous, particularly in Wales and Scotland, which is why, even to this day, they have lower populations than different parts of the United Kingdom.

England’s biggest county, Yorkshire, has over 5.4 million people, a larger population than Scotland and the principality of Wales, with Wales’s population of over 3.1 million and Scotland’s population of just under 5.4 million.

Overall, the English population is over 55 million, which dominates the political union of Great Britain and Northern Ireland.

This is one reason why federalism will never work for the English constitution because for that system to work, England must be suppressed, according to the historian David Starkey.

This is all related to geopolitics because the much smaller population in England and Wales is because, in the case of Wales, it is much smaller than England, and both kingdom and principality are mountainous, making it much harder for agriculture.

It was not until the Industrial Revolution that the population in England reached over 6 million, and it was not until the Napoleonic wars that inflation went into two digits.

The demographic change was due to the Industrial Revolution, and the agricultural revolution of the 18th century meant that England could sustain a much larger population.

Geopolitics: British Global Empire

The Politics of Great Britain

When reading this, you may wonder why I write about England and Great Britain as two different entities; the truth of the matter is that the English constitution is not a union of nations but a union of Parliament with the act of Union in 1707.

The Scottish were given higher representation in Parliament and maintained a separate legal system based on Roman law and not English common law, an education system, a Presbyterian church and, in contrast, the Anglian Church.

This was because the Scottish nobility failed in building their colonial empire and needed England to pay off their debts.

The second reason was that the Scottish population in 1707 was around 400,000, compared to 6 million people in England.

The final reason the English were so interested in pursuing a Parliamentary union with the Scots was because, historically, Scotland was the back door and invasion route into England.

The Scots had invaded northern England before the Norman conquest in 1066 and historically allied with the French to force England to spread its resources by fighting two-front wars with France and Scotland.

On a final note, people within and without Great Britain often forget that to the rest of the world, the British are British.

Still, within the union itself, its peoples are Welsh, Northern Irish, Scottish and English, with separate histories, languages and cultures.

There is a political reckoning that needs to happen for the regions of Great Britain to understand their place within the British constitution and where they stand culturally.

The people of Scotland have a choice regarding how much they wish to be English or Scottish, which is a significant factor in the Scottish National party’s and the fight for independence for the Scots.

According to the geopolitical analyst Peter Zilhen, they have a choice to make regarding the cultural union within Great Britain.

Geopolitics: Great Britain

British Geopolitical Advantage

Within the island of Great Britain, you are never more than 70 miles away from the coast; this has historically meant that England had access to capable seamen that could be used for international trade and the defence of England.

Historically, from the Norman conquest in 1066 until the rain of England’s 1st Tudor king, King Henry VII, from 1485 to 1509, the English navy only existed as a means of transportation between the kings of England and their much richer continental holdings in France.

What this meant geopolitically was that English kings, until the rain of the Tudor dynasty from 1485 to 1603, were not interested in developing their navies to defend the English coast, which enabled during the Hundred Years War from 1337 to 1453 French armies to attack and invade English coastal cities and towns at least 50 times.

The Hundred Years War and England’s defeat in the conflict in 1453 meant that England became untethered to the European continent, and it took until the rain of King Charles II of England and the brief English Commonwealth in the 17th century for England to focus on naval power.

British policies focused on the high seas provided a quantitative and qualitative advantage for British power. For instance, Louis XIV of France’s 400,000-man army could not invade England due to security provided by the English navy that was not even 80,000 strong.

Furthermore, English sailors could fire three shots per Spanish or French gunners, effectively doubling English firepower.

As continental armies got bigger, reaching the Hundred thousand mark in the 16th century, England, with a much smaller population than France at over 25 million, was larger than Russia in the early 19th century and had the largest population in the European continent.

The British were not able to compete on the European continent or willing to invest in its land-based military due to the army being seen as a force of tyranny that suppressed the freedom of the English people, which was used by Charles I, Oliver Cromwell, King Charles II and King James II to suppress English freedoms.

What this meant for the British was that rather than pursuing continental holdings, the English opted for colonialism, control of the world seas and trade routes to enrich themselves.

The wealth extracted from England’s colonial empire could fund the enlargement of the British Navy and keep France contained to the European and African continent in the 19th century.

The English in the 18th century successfully removed French influence from North America, the Indian subcontinent and the Far East; this was possible because England was primarily a maritime power; in contrast, France was tied to the European continent.

Throughout the 18th century, France spent 45 years at War and had to maintain an army of over 400,000 and, during peacetime, at least 150,000, making France priority on maintaining its army at the expense of naval development.

Industrial Revolution

The Industrial Revolution

The home of Industrial Revolution began in Great Britain in 1769 with the implementation of the first steam engine.

Britain would create wealth through the technology of steam and the development of manufacturing.

Historically, economics was the process of household management, according to philosopher Aristotle or the administration of limited and finite resources.

What the British could do with the Industrial Revolution was to create continuous wealth, which meant it could improve its prosperity and had the cash to finance the enemies of France, building its empire and using geographical and industrial advantages.

The British Empire was able to do this because the Empire reached the height of its power in the late 18th and early 19th century due to this process happening during the Industrial Revolution.

In contrast, the Spanish Empire built its empire from the 16th to the early 18th century with gold and silver from South America.

The Spanish bought the goods and services it needed by giving precious metals in exchange, which destroyed the European gold and silver markets and led to high inflation, and that’s how the Spanish destroyed their economy.

In contrast, the British Empire began to rise to power in the 18th century in the middle of the Industrial Revolution, which meant that its economy was based upon liberalism, free markets and the creation of wealth, which was the first time this happened in human history where peoples became more prosperous.

Since the Industrial Revolution, life expectancy, technological advancement and the ability to generate wealth through specialisation enabled the British Empire to be the first nation to industrialise, which was a massive quantitative and qualitative advantage.

Economically and in some cases literally, the British were bringing guns to a knife fight.