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Kathleen Weber's avatar

One small quibble: Xi did not crack down on Hong Kong because there was unrest there. Xi introduced massive changes to the Hong Kong system and the people reacted with unrest.

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rahul razdan's avatar

You seem truly depressed. Perhaps an alternative point-of-view.... we are in the golden age of mankind.... in general, people are wealthier, more powerful, and healthier than at any time in history. On Trump and Trumpism, it seems to be a reaction to long neglected problems and current orthodoxies/priesthoods

1) MAHA: was the previous system, especially in the US, promotive to health. Poking a bit in this direction seems to make sense. I don't mind the debate on this important topic. We are headed towards a world of health ownership by the individual (vs doctors).

2) Shared Defense: A bit more shared investment in defense seems like a good thing. I can certainly understand the irritation to the European rhetoric of 6-week vacations/full healthcare.

3) Shift of focus from Europe to Americas: Obviously, what happens in your neighborhood impact you way more than some far off place. Mexico is far more important to the US than anyone in Europe.

4) Education/Research: again... was the current system really working... poking a bit at reforming it makes a lot of sense. Education/Research has been a huge success and that success has bred arrogance and a lack of willingness to adapt.

5) revenue mix: Shifting the federal revenue mix from primarily income tax to some level of sales tax (tariffs), fees (everywhere), and using the US government balance sheet ... it is an interesting experiment.

Overall, I think the problems being "poked" are the right ones. Are the solutions proposed the right ones, I have my doubts, but a little experimentation is not a bad thing. The political opposition would be wise to directly address these topics as well. On governance, we do need to close the loophole of "taxation without representation" with the tariffs. Trump seems to have found a loophole which he is exploiting... I guess from years of practice in real estate.

Finally, on Russia, I just wonder if the Ukraine war is actually a process of "de-fanging" a very negative influence in the world. On China, they are navigating a massive number of problems (demographics, debt crisis, massive increase in defense spending, etc). Even their successes (EV as an example) have deep issues with profitability. Buffett just disinvested from BYD. Over the last 50 years, the world has built a dependency on low-cost, low-margin, dirty industries from China. As they try to leverage that "strength," alternatives will be built. It might get a little rough in the transition, but nothing prevents the movement elsewhere.

Overall, there is a lot of churn, but the world is not a bad place.

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