Well, it's been three years, but it seems that the people of China have finally had enough in scenes we haven't seen since the Tiananmen Square protests. Thousands of people took to the streets of Shanghai and other major Chinese cities to openly protest against the Chinese government. That's crazy. That's an act of true desperation in a place like China where criticizing the government can easily cost you your life. And since this is an extremely chaotic situation right now I Want to explain to you what's going on? how bad is it? what's going to happen next? What are the implications on the U.S Stock Market Do this economy. There's a lot to cover in this video. But before we start the video: I Want to talk to you about today's sponsor a free research tool for investors called Tandy's Now as you can see, we live in a absolutely crazy time right now and making sense of this chaos is critical for any good investor. That's just facts. 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Get attendees for free right now by using the link below. Using this specific link is actually going to help my channel, but you don't have to do it, just get attendees. Thank me later and now let's go back to the video. So the first question here is how serious this is. Well, it seems very different than the normal kind of run-of-the-mill Channel Chinese Protests we've seen in the past. This ain't some sort of a regional protest. this thing is going. National Now such a large-scale display of defiance is not something we've seen since 1989 in which the famous Caniman Square protest took place. The second question here is why now and where this is going to end. The simple answer is that the Chinese economy is in shambles and life for everyday. Chinese People have become unbearable unseverable. The loss of basic freedoms due to covet Zero policy was just the straw that broke the camel's back. Now look, China is no longer the poor, isolated country. It was 40 years ago. Forget about that. China is now the world's second largest economy, which was completely Unthinkable just a few decades ago. But here's what most of you in the west don't know. in reality China is dealing with severe existential economic problems and their citizens are paying the price every day. Yes, China's GDP is the world's second largest after that of the United States. But guess what? China's per capita per person GDP is about eight thousand dollars a year. Imagine living on eight thousand dollars per year China is not an economic Juggernaut Behind the world's second biggest GDP figure, there are hundreds of millions of extremely poor people who China needs to feed and locking them down and starving them to death is not the way to do it. You see as China's economy kept maturing its GDP growth kept slowing down and down significantly. It went from 14 2007 to an estimated three percent this year. But that's even assuming you believe the figures coming out out of China. The zero covet policy was just the last example of why Chinese government is abusing its citizens. Over the past 10 years, the Chinese government has been consistently rolling back economic and social reforms. Look at the cancellation of the ant IPO The Disappearance of Jack Ma the cancellation of DD Global How about the Evergrant crisis from a few months ago? Remember that one Evergreen was just a symptom of a Ponzi scheme that is the Chinese Real Estate Market, which which is literally one third of their GDP Oh, how about China's battle against demographic decline? That one is not doing so hard as well. In 1980, the median age of Chinese citizens were 21 years old. Right now, it's 38 and it will be 50 years old On average within 30 years. the proportion of elderly Chinese of 65 years and older was just nine percent two years ago. Right now at 14 in two years, and at this pace, by 2050, 30 of the entire Chinese population will be 65 and older. 40 percent of Chinese are not working in 2022 and it's about to get worse. The Aging population increases Healthcare expenses. It increases pension costs the same time reducing productivity, tax, revenue, savings, infrastructure Investments These negative effects on Chinese economic growth are going to be substantial as years progress. They're getting worse and worse and worse every freaking year, especially on top of a beaten down Ponzi scheme real estate market and now zero covet policy. But instead of addressing these issues basically feeding people and keeping the lights on President XI decided to tie his whole Legacy around a zero covet policy. You see, President XI has put his entire personal prestige on top of the zero covet policy. The success of it, even when it's clear it's literally destroying his economy and killing his citizens. Sure, the trigger for this protest was some sort of a fire that killed 10 people in the building that has its exit sealed with wires allegedly due to a covet lockdown. a horrific story, but this was just the volcano eruption waiting to happen. This was just the spark that started the fire. So the big question is what happens next. I Don't think these protests will come anywhere close to toppling the regime right now, but I think that this is the beginning of the end of the CCP and China As we know it, it's probably going to take decades to happen, but this is the day when it actually started. Obviously there's a lot of on YouTube You see a lot of thumbnails of people talking about China collapsing in 20 days and that's all a bunch of horseshit. that's not happening. but right now what you're seeing is the beginning of the formation of a Chinese resistance move within the population. This is the first time we've seen that in 40 years. Eventually people will break and they will protest. So I don't know how long it takes, but this is the beginning of the change that we're hoping to happen in. China The problem is that this whole process, while it's going to be very important for China's future over the next 30 to 50 years, is going to cause a lot of pain globally, especially to the Us over the next few years with China lockdowns with the protests with all the mess that's going to be in China, it's not going to be good for the U.S The U.S inflation is based on our ability to manufacture cheaply in China And when that's not the case, the inflation in the US is going to get worse. Not to mention the fact that anybody who invested in China as far as foreign investments is pretty much screwed. Look at: Apple They have everything in China Tesla has a big factor in China but they've Diversified to other countries as well. That's going to change. China is going to lose a lot of these foreign investments At this point. Investors are saying well, I'm not putting my money into China because it's just too crazy. It's unpredictable. It's look, what's going on there. Warren Buffett is slowly selling out of Byd. Charlie Munger is slowly selling out of Alibaba. That's just the beginning. That's just the canary in the coal mine and that's going to cause a process that's super important for the Us, but it's going to be painful at first. It's going to be domestication of production back into the US. For those of you who don't remember, ever since the 90s, the US have systematically shipped out its entire production capacity outside the US and into China. You know the numbers make sense. It's the cheapest way to do it. So let's go balls deep into this. That was a historical mistake, as we now know, and with this deglobalization process That we're seeing right now happening with China, Russia and Ukraine, there's going to be a lot of domestication of production capacities. Back into the U.S The problem is, it's going to cost you a lot of money as a consumer, because re-domestic any production processes back in the US is going to cost you a lot more money, The products are going to be more expensive, Inflation is going to be more persistent, and it's going to take a while for us to develop the workforce to retrain them. Machinery This whole thing takes time take years. So although this is a blessed change as far as the U.S ability to produce locally and not just be a services-based economy, it's going to take a while for the pain to subside and inflation is going to be quite persistent because of the over the next few years. So the Fed's hope of going to two percent inflation in the next year or two is not such an easy task given what's going on right now in China And that's why you're seeing the stock market become a little bit more tumultuous over this whole story. just my two cents. Let me know in the comments if you agree with me, if you disagree with me, and I'm happy to read your comments good or bad. See you next video.