China Was Just Sent Back to the Dark Ages | US starts aggressively cutting ties

Key Takeaways

the U.S just said we're going to the Future and China can't come you may have heard that China is having a hard time right now droughts social unrest collapse of the real estate Bubble Plus a lot of other stuff but on top of it all the US just made a move that will send China back to the Dark Ages this may not seem like a huge deal right now but I think this event will be in the history books you see there's a new technology emerging right now that will change the world Elon Musk once said that it's much more dangerous than all the nuclear bombs and the US just kneecapped China's ability to pursue it in this video we'll also talk about a few industries that you can invest in that will likely see massive growth please hit Thumbs Up And subscribe so I can keep you up to date on this AI so you probably are aware that AI technology is advancing rapidly like any exponential technology it increases little by little at first and then rapidly takes off we've been hearing about AI for a while now but the real life applications that are beginning to hit the market are proving how valuable it can be now you've seen robots running around doing backflips you might be aware that the writing AI is getting to the point where it's difficult to differentiate it from Human writers AI created artwork is winning art competitions and is completely mind-blowing I'm not an Art Expert if there is such a thing but the images produced to me personally are stunning more so than most human generated art and it can be created by giving it a one sentence prompt for example do you want to see Da Vinci style sketches like the Vitruvian man but of a spaceship no problem these images are generated by AI with just a simple prompt AI is also helping us to unlock the power of the human genome super Computing Ai and genomics will likely completely change How We Do Healthcare Google had a breakthrough in 2022 that I believe will allow it to build automated factories that build and assemble stuff without humans I think their approach will be to just work on machine learning and then sell that software to businesses and governments so that they can produce anything they want without paying for human labor now automated war machines and drones powered by AI I'm sure you can imagine are extremely powerful for any country to have so AI is huge and it's coming fast it's the future of tech computer chips just like oil Powers a lot of our industry across the globe and is in massive demand in a similar way computer Chip's power AI applications meaning that it's a scarce resource that is needed to make all the stuff work chips are the new oil and the ability to acquire or manufacture chips will determine if a country will be able to participate in the AI Revolution China had big plans for expanding various Tech application in transport agriculture robotics biotech military Etc and for all this it needed a massive consistent supply of chips now China is able to produce a lot of stuff they can buy import and put it all together but one area where China is weak is creating Innovative Tech that's where they're trying to get to but they're not there yet they don't have the tech the skilled workers they don't have the capability to manufacture all this themselves here's a quote from an analyst on the situation we remind investors that Chinese companies have been trying for more than 20 years to catch up to large non-chinese companies with little to no success he's referring here specifically to computer chip production the biggest producers of chips are Taiwan and South Korea Taiwan produces something like 90 percent of the world's Advanced chips it produces 65 of the world's semiconductors but ninety percent of the really advanced stuff that is needed to power super computers and AI but the US is the world's unchallenged leader in semiconductor design we still design innovate and create all this Tech is it cheaper to have it physically produced elsewhere we can produce the blueprints if you will we can also make the final products we just can't make it as cheaply here as other places can make it so now the US wants to bring chip manufacturing back home it wants to bring back the jobs the skills the factories and also to make sure that we have access to these chips in case something happens to Taiwan Secretary of State Anthony blinken sent China's plans to Annex Taiwan move much faster than anticipated our military Intel is really good they seem to know about Russia invading Ukraine long before it happened and I would not be surprised if they are spot on about this so something is pushing China to up its timeline to take Taiwan Taiwan produces 90 of advanced computer chips so this looks like a multi-step plan by the US to make sure that we are the world leader in computer chip production step one is that lawmakers quietly begin putting to together the chips act that will heavily fund us companies that build chips as well as fund research and development Step 2 Nancy Pelosi starts furiously buying and selling stock to maximize her profit from this act being passed step three the chips Act is announced and step four the China chip ban is put into effect China problems so this will put a massive hurt on China at a time when they are really in a tight spot they have a massive demographic problem they are likely at the peak of their population and it will rapidly decline by close to half over the next 80 years the population is very old and the young kids are tired of the pressures they face to be productive let it rot is a New Movement by the Chinese youth which signals that they are fed up and no longer willing to work and pursue their economic goals and just grind a way to achieve the economic objectives needed by the country Chinese real estate was a massive bubble and actually calling it a Ponzi scheme would be a better word since developers would often take payments for properties that were not being built or delayed indefinitely here's a quote developers raise huge amounts of money from customers to basically fund the purchase of the next construction projects this continues on and on before it has got to the size that it has it's not strictly a Ponzi scheme in the asset management sense the Madoff Style but they're essentially using clients money to fund the next project so yes it's the standard definition of what that means the property markets account for anywhere between 20 to 30 percent of China's gross domestic product this is a huge proportion compared with other large economies Chinese don't invest in the stock market for the most part here in the US we have well-regulated transparent and more or less honest Capital markets AKA Wall Street where anyone can invest in sharing the profits of American companies in other places in the world that is not the case and Chinese companies are notoriously Shady their financial documents are often made up numbers there was a story while back where a teacher here in the US who was incentivized for her students to do well on certain standardized tests would complete any questions that the kid would not fill in that they didn't have time for the teacher would fill it in with the correct answer so for example on a 100 question test most kids only had enough time to complete some portion of it let's say most completed the first 80 questions or so and and left the final 20 blank so she would go in and complete the last 20 percent now you could not know if each individual test was faked in this way or not but when you look at the overall test scores and specifically on the distribution of right and wrong answers a really funny pattern emerges because you had the kids getting wildly different results in the first 80 questions versus the last 20. some kids might incorrectly answer on average one of five questions on the first part but then they would have 100 accuracy on the last 20 and this happened for nearly every student there was this natural distribution in the beginning the type you would expect to see if the kids are answering and not cheating and then the last part where the teacher steps in that was abnormal distribution it was 100 correct all the time so there's this abnormality on the last part of the test it's similar with companies if you take a large number of companies you compare for example their profitability you expect to see a wide range of profitability some do well some lose money you expect to see something like a normal distribution when you look at the Chinese stocks it looks unnatural it looks like if a company had a negative quarter or a negative year oftentimes some of the numbers are fudged to make them positive the distribution looks normal for all the companies whose net profits are above zero and then very unnatural at anything below zero meaning we expect to see more unprofitable companies but we don't so we know some things are off even though we can't know specifically what and that's not just the business sector during 2020 the Chinese government would put out this data on how many cases and deaths they had from the virus there were some people on Reddit that started pointing out that their data was almost exactly like the formula that you would use to model the spread so they would just get the numbers from formulas and then report those so Reddit people would actually be able to predict the numbers that child report before they reported them so this is important to understand that any all numbers that come out of the China are suspect or as the kids would say sus so because of this a lot of people started investing in real estate buying homes instead of investing in the economy or in stocks and stuff like that and now now that final Safe Haven where they could put all their wealth and fortunes that's gone at the same time right now in 2022 China is facing a massive Water emergency there's a massive crop shortfall Xi Jinping admits that they could face a massive food crisis in 2022. the people are mad you've probably seen the bank runs that are happening there people stopped paying mortgages when they realized that many cases the property that they put down payments on they were never actually built they were just used to continue to build up the Ponzi scheme and now that is rapidly falling apart since people are no longer willing to pay into it so there's a lot of bad stuff that's happening there and it can potentially get a lot worse over the next few years as everything shakes out at the same time us believes that China will invade Taiwan and we also might see a lot of backlash from these chips ban that were just announced and since China's the world's Factory this is where we produced most of our Goods whatever happens there will affect the US and the rest of the world the good news here is that we're going to see more and more of a shift to domestic manufacturing as well as a much bigger focus on AI and super Computing here in the US it's possible that we saw a peak of globalization pre-2020 and now more and more countries are realizing how fragile their systems are if they completely rely on foreign Nations to produce their technology to supply their electricity and gas and energy Etc we will likely see the U.S pouring billions and trillions into Shoring up our domestic production so military biotech robotics energy all of these will see a massive influx of money once we're on the other side of this inflation recession if you like this hit like And subscribe I would love to hear your thoughts drop some knowledge bombs in the comment section below please click another video of mine so I can continue infecting your mind with profit generating ideas my name is Wes Roth thank you for watching