As Nvidia and American Artificial Intelligence peaks globally, and the true Covid Crash and subsequent bear market finally arrives, China will emerge from the Great Storm as the future and both the only short and long-term investment game in town.
Another of America’s creditors in the last Financial Crisis, Warren Buffett, is now actively selling down his stake in the at the time high-profile rescue asset of Bank of America as well as having sold half his Apple holdings in the accumulation of a record $350 billion in cash reserves. Berkshire Hathaway also has substantial investments in Alibaba and JD.com, while this is also the case for Michael Burry (“Big Short” investor) and David Tepper who also are backing Baidu in addition.
While initially beginning in 2018 with the Trade War, Co-vid has effectively acted as a catalyst and watershed moment precipitating a historic bear market that has driven individual stocks down to rock-bottom including Alibaba, JD.com, and Baidu who serve as the Magnificent Seven’s long-term global competition.
Paradoxically whilst China’s bear market kept going and is still at rock bottom, Western ones were stopped half-way short to engineer the greatest bull-run by point index increase ever (followed by Covid’s own bull-run) that have created historic booms powered by the Magnificent Seven off the back of the ‘arrival’ of AI, the digital economy, and wider Fourth Industrial Revolution.
The aforementioned historic busts were seen in 2021-22’s bear market off the back of the highest inflation since the 1980s as a product of pent-up consumer demand and savings (US government stimulus) from locking down to manufacture a vaccine in a historic overreaction to a cold/flu-like virus (coincidentally originating in China) with a maximum 0.4% death rate without any vaccine, 1% as fatal as immediately predicted, and only infected 10% of the world (with at worst a 96% chance of surviving scaling up to 99.6% overall).
Covid has produced many geopolitical achievements such as ousting Donald Trump in his re-election year, slowing down the Belt and Road Initiative by devastating the global economy through supply chain disruptions from locking down, and causing the Ukrainian and Gaza wars.
In 2022 half the world, including China, was still stuck in lockdown and heavily restricted at the least, whilst there was an urgent need to repair the damaged Russian economy (who will be next after Israel?) and perhaps more importantly restore Putin’s damaged reputation as a strongman after all the public face-mask wearing. Putin has also strongly asserted that part of the invasion is to take control of US laboratories on Ukrainian soil that are manufacturing actual real lethal viruses that are far more dangerous than Covid.
Whilst the CCP is still in power, Covid has acted as a catalyst in the rapid deterioration to the point of near-breakdown in relations between China and the US not seen since the height of the Cold War.
What America and China are hiding exactly about Covid is most certainly the elephant in the global geopolitical room. With Trump back in power, and RFK Jr in support, the Covid Curtain is about to be peeled back.
Fatally for the US, Xi and the CCP have survived Co-vid, while Huawei is back from the commercial dead, and Donald Trump is even back in power once again to truly bring Co-vid full-circle in a quite stunning turnaround in one of US history’s great comeback stories from surviving a handful of lawsuits, an impeachment, and not one but two assassination attempts, as well as unprecedented modern Democrat coup on its sitting president and only victorious electoral nominee, with a heavy assist from Co-vid, in the past three elections.
History as they say is defined by the actions of great leaders, and just like with Reagan and Gorbachev, America may well need Trump, supported by Elon Musk, to work with China more than it has led the world to believe.
Trump would end the Ukrainian War for example and can make the tough sacrifices all peace deals require otherwise Putin could actually decide to attempt to take Kiev, as well as much more, in a self-fulfilling prophecy while the new US president is well aware that Nvidia and Apple are dependent on TSMC and Foxconn supply and the continuation of aggressively enacted AI chip sanctions against China could well produce a modern Japanese AI Autarky moment over Taiwan unless this part of the CIA’s cunning overarching strategy to engage China, Russia, and Iran, the new ‘Axis of Evil’, into ‘hot’ wars.
George Kennan’s Long Telegram produced the CIA, Truman Doctrine, and Marshall Plan and America’s containment strategy to combat the Soviet Union and the Chinese are history’s great survivors and led the Ancient World for much of global history with a projection of $15 trillion larger GDP by 2050 that is greater than any lead the US has ever enjoyed; even in the post-Cold War ‘Unipolar’ era as world history arrives at a pivotal global crossroads.
As this generation’s Long Telegram, only Digital Dragon Dynasty can fully explain the Chinese Challenge. America may believe it has a ‘Manifest Destiny’ but it is quite literally in Chinese and ancient history’s DNA for China to lead the world.
Chinese GDP for 2023 has been revised to 7.2%, and with 5% officially for 2024, not only means China has averaged 5% annually since Co-vid but now since reopening is averaging over 6%. The clock is ticking for American global leadership and the Countdown to the Chinese Century has begun.