China Can’t Even Afford iPhones: Understanding how the game has been played and will be in the future

I warned everyone, China the big communist country had nothing without the United States. They would have no leverage in trade talks and their inflating economy was purely fictional, created by global efforts to prop them up. I’ve especially pointed this out when box office talks about movie releases have studios paying more attention than they should about the communist country’s ability to make or break a movie. Back when a big movie like E.T. The Extraterrestrial came out in the 1980s nobody cared if anybody in China saw the movie and it was considered a success. So what has changed in the three decades since is purely an internal communist push through American education to give China a seat at the economic table that was entirely made up by political forces trying to change the kind of world we all live in. They wanted to say, “look, China is killing all of us, so we need to be more like them.” And that was how communism was being pushed into western culture. If everyone wanted to compete in the modern economic world, they’d have to get on board with that line of thought. But, as I said from the very beginning, it was all made up crap.

I can see why everyone believes that China is or was going to be the big world power to chase. The Children’s Museum in Indianapolis as in other places as well has a huge dedication to the new China economy tying to prepare young people on how to live in that type of world. By the time I had seen the exhibit it was already aging so it was a little easier for me to see than the millions of visitors who had been there before me. If the topic of economic power and global politics was not the topic of the average family’s dinner table, then most people wouldn’t think much of it. However, in essence, the Chinese economy was never going to be all scary and domineering of all cultures on earth. The way our school systems proposed the problem was a lie from the start, China was never going to dictate the way we live life in American and that smoky reality that they had been trying to create with our young people came to a crashing end with the rise to power of President Trump, who knew better. Anyone who understands markets and money could see the problem but often those types of people are not allowed anywhere near political policy making, that is until one of them managed to get elected into the Executive Branch, which destroyed near six decades of planning by the political insurgents working against American sovereignty in full pursuit of globalism managed by China.

Personally, I love Apple products, my wife just bought the latest iPhone from them. They are an American company that has been pushing great technically innovations. They are too liberal for me, and I don’t think Tim Cook is a very good CEO, but the company itself is a good one as it was created by Steve Jobs. And I get it, there are only so many Americans who can buy iPhones, so the billions of people in China is a lucrative market, just as movie companies have fallen into that trap, but the entire industry is built as a sand castle meant to look impressive long enough to trick the world into accepting communism before the real waves of economic power came along and washed it all away. Thank goodness that happened much earlier than projected with the election of President Trump. Due to the continuing trade war the Chinese people just aren’t riding the wave of extra money that had been fueling a fifth of all iPhone sales pushing Apple stocks down 5.1% for the week as investors had to brace for the loss in projections. When people don’t have the expendable income to buy an iPhone it is an excellent measure of their economic health so there is no way that the “state” of China can hide the problem because the sales are published by an American company.

Of course, Apple’s not happy about it, they feel they need to have a rate of growth that can continue to support their trillion-dollar evaluation and in order to do that they literally need to touch everyone on planet earth in some way or another, so it’s a tough gig. Apple can’t afford to have too many political opinions and to divide up their bases. They trust that conservatives will buy their product because what they have is the best, so they do lean left. And like Google, all the big tech companies had been thinking that China was the way the world was going so they started kissing up to them over a decade ago. But Apple should have never counted on a fifth of their entire market to come from that region of the world. Apple phones are too expensive for a country that relies on its economic power to be stolen from other places and given to them through politics, which is exactly what has happened. American companies were penalized with burdensome regulation so they fled to Asia and took those jobs to those economies. But the origin market was North America where the goods were really purchased. The only big difference was that instead of products being made in America and then being sold back to America, the products were made in other parts of the world and sold back to America. Trump fixed that problem by stopping the cause, over regulation and tax incentives which is why over 300,000 jobs were created in December with a GDP rate of nearly 4% to finish out the year. Meanwhile, China can’t even afford to buy iPhones.

There were a lot of villains in on the game but that’s not important now. China has to steal intellectual property because their communist system does not spawn creativity just as it doesn’t elsewhere in the world. Great thinkers and dreamers like to get paid for their unique visions. They don’t do it for free which is why China has a major creativity problem. All things in business come from creativity, so a society that isn’t very creative is not going to have a strong economy. China could never steal enough intellectual property to stay relevant in an economy now led by the United States again. They are going to gradually fall further and further behind because all their economic gains were created by stifling America with policy and regulation and giving that opportunity cost to China so that the chess board of the world could change. But it was all built on phony values and now Trump has played the card everyone was afraid he would, and China is falling apart.

China always depended on the American economy for its sustenance. What they had was not real value but stolen. And that’s what everyone is having a hard time coming to terms with. China was not a superior culture dominating economics, they were just a third world country artificially made first world with looted wealth from the west so that the idea of communism would be accepted by all global markets. Apple knew it, so does Google, and now they are paying the price for hedging their bets. If Tim Cook were a good CEO he would have started backing off expectations the moment that Trump entered office because anybody aware of the situation knew what was going to happen. Now its time to pay, and likely time to get a new CEO.

Rich Hoffman

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