Hey, in this video, we're going to be talking about China and Taiwan in the United States and potentially a disastrous mistake that I believe our Administration is making by allowing something to happen. That, in my opinion, it's just really bad timing and bad form. And that specifically based on the following chart, this chart right here suggests that there are three scenarios for inflation in 2023 and they are heavily heavily heavily impacted. Uh, and I'm falling off the screen there by China Take a look at these scenarios here: if China has a strong reopening and all of a sudden 1.4 million more Chinese start traveling and we see a lot more of that sort of an estimate right now and we get a lot more Chinese activity in the market.

We could actually prop up inflation substantially. Inflation could stay between five and six percent in the United States That's a problem because that means more aggressive fed, for longer, more pain, you get a disorderly coveted zero. Uh, uh. you know, like a disaster where they keep going on lockdowns, they keep things held down.

You could actually bring inflation down to two percent in America or you stay at the Baseline. We're around three and a half percent. So I've said this before, but I believe that China will be an anchor for inflation for the world. And for America the longer they stay locked down, ironically, the more inflation comes down faster.

But I'll tell you if China reopens strongly and inflation pops up and China gets pissed because of what you're about to hear in this video here. and we're not focusing on the things that could actually drive inflation down. we in my opinion are making a massive political mistake that could have massive Economic Consequences And you're going to understand a lot more about this when you combine this inflation chart that I just showed you and this sale that is about to take place led by of course the Biden Administration Now look I'm no politician, but I feel like I know negotiating and I'll tell you I think it is a bad time at a time when China is going to be pivotal to our economic success or failure in 2023, at a time when China is literally coming out of some of the worst protests they've had since Tiananmen Square as the country is now calling for the resignation of Xi Jinping in frustration over coveted lockdowns at a time where China's economy is probably in recession even though the official numbers don't say they are and at a time where lockdowns are so bad that countries horrible not just countries, countries are upset in China, but companies are fleeing China iPads are now going to get made in or assembled in India iPhones might get assembled in Vietnam where more than 80 percent of them were assembled by Foxconn China Before that, folks, this is probably the worst time in my opinion to be flashing in front of the Chinese that we are now selling 100 Lockheed Martin Patriot missiles to Taiwan now in case you don't know, Patriot Missiles were designed back in the 1980s to shoot down enemy airplanes. Today they are used to shoot down enemy airplanes, but also to shoot down ballistic missiles and even the longer range intercontinental ballistic missiles.

These are those big missiles that you see that ballistic ones are the big missiles you see like North Korea Iran and China kind of scoot around on those large trucks and they stand next to them and they have those giant missiles on the big trucks. Well, those are slower moving missiles that can go very, very far. They can destroy things with pretty good Precision Uh and they don't have to be nuclear, although they can be. They can destroy things like aircraft carriers, airports, weapons.

Depots They can cause a lot of freaking damage and they can travel at different heights in order to counter-attack those. We use what are known as Patriot missiles. They drive around on trucks as well and you kind of set them up in their own little Depots They come with five main parts. You've got the missile, you've got the launcher which which also happens to transport and game.

You know the missile and holds the missile, You've got a radar antenna, you've got an equipment truck that's kind of where the the staff goes into and aims the darn thing uh, it or locks it on, that is and the power plant. The Patriot missile doesn't have to actually be fired directly at an incoming enemy missile, and that makes it great and versatile for deploying very quickly. It sort of adjusts as it travels, but this thing can be locked onto ballistic missiles at a 50 mile range. you can't even see that far.

And what's really incredible as these Patriot missiles are fast, They fly high, and they could be twice as fast as ballistic missiles. These are really, really powerful missiles and now we are selling 100 of them to Taiwan for wall Lockheed Martin is for 882 million dollars. So these weapon systems will come with software upgrades. uh, system upgrades for existing missiles, upgrading everything to the Pac-3 system.

Apparently these are these are the most advanced missiles. These are what we in America use for surface-to-air missile defense Surface Two uh aircraft defense. whatever and this all happens is happening based on a 2010 arms deal that we agreed with for arms sales with Taiwan so that Taiwan could defend itself against China. Now look, things relaxed after Biden Met with Xi Jinping just a few weeks ago and Biden said look, there's no imminent Invasion China's not imminently invading Taiwan even though tensions got pretty high there for a moment because of some of the things that Beijing said, uh, but but look, I think the last thing we ought to do is strengthen these tensions at this this point when I think what's more important is we focus on uh, well, a trade.

We should be focusing on trade and economies. Now don't get me wrong, I Understand the Taiwanese are looking to express their sovereignty, but at a time where there's no imminent sign of invasion, it seems a little insensitive while China is down to be negotiating the sale and publicizing it. Now just my take. But here's what else is happening in the face of China In the face of China Taiwan is currently trying to negotiate a trade agreement with the United States and hopes to sign a Free Trade Agreement by November 2023..

now, the likes of that potentially happening maybe aren't that great given that we've got a split Congress Whether or not whatever happens in Georgia tomorrow ends up in the favor of Democrats or Republicans doesn't really matter. Donald Trump Pulled us out of the Trans-pacific Partnership in 2016, said instead we would introduce bilateral trade agreements and guess what kind of trade agreement we got with Taiwan Well, we really didn't Instead, Taiwan taxes our Imports at a five percent value-added tax. and then of course there's a trade fee of a few basis points. On top of that, there are luxury alcohol poor Duty and other taxes that can be as high as 10.

On top of that, things we import from Taiwan like semiconductors could receive a 6.34 uh, Baseline tax. And really, the the problem here is is that Well everybody's trying to focus on getting inflation down and economies propped up and China's in a really weak place. I a little bit feel like this arms deal is a middle finger to China Now I Think we could probably cause more damage and I'm not an expert on this. Okay, I I Understand, there are reasons for uh, you know, military protection, although the United States can kind of uh provide that without necessarily selling it right.

But I think my personal opinion right now the focus of our presidential Administration should be how can we work with China and Taiwan to relax trade tensions So that way we can reduce inflation taxes create a deadweight loss on the economy. Taxes right now appear to be a higher issue, and inflation appears to be a higher issue to the lives of ordinary Chinese Taiwanese and Americans and people around the world then quite frankly, intercontinental Ballistic missiles. Then again, of course we've got Rocket Man over in North Korea going a little blue launching the most missiles he's ever launched in a single year to date thus far, which is not great. But the reality here is personally, I'm not the biggest fan of hearing about 800 almost a billion dollars of missiles being sold to Taiwan but I think there are other things we should be focused on right now.

Just my take again. I'm not a politician, but a little bit frustrated by this. Let me know what you think in the comments down below.