{"id":26746,"date":"2021-07-10T08:43:42","date_gmt":"2021-07-10T08:43:42","guid":{"rendered":"https:\/\/thepatientinvestor.com\/?p=26746"},"modified":"2021-07-12T03:22:50","modified_gmt":"2021-07-12T03:22:50","slug":"what-would-putin-do","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2021\/07\/10\/what-would-putin-do\/","title":{"rendered":"What would Putin do?"},"content":{"rendered":"<p>The Communist Party of China has an unwritten contract with the 1.4 billion people living under its rule: they will tolerate living under an autocratic regime provided that the CCP delivers economic prosperity. So far the CCP has delivered in spades. A never-ending economic boom, fueled by exponential debt growth as investment in productive infrastructure grows ever more challenging.<\/p>\n<p>But they are now familiar with the law of diminishing marginal returns: governments can&#8217;t just keep spending on infrastructure without falling into a debt trap. All the low-hanging fruit have been picked and new infrastructure projects offer lower and lower returns as spending programs continue.<\/p>\n<p>That was probably the primary motivation for the CCP&#8217;s Belt-and-Road Initiative (BRI): to source more productive infrastructure investments in international markets. But the COVID-19 pandemic brought the BRI to a shuddering halt and the CCP is unlikely to maintain its exemplary growth record &#8212; no matter how much they fudge the numbers.<\/p>\n<p>Xi Jinping is faced with an impossible task: how to placate 1.4 billion people when inflation sends food prices soaring and ballooning debt precipitates a sharp rise in unemployment and falling wages. The CCP has been preparing for this very eventuality for some time. Investing billions in surveillance and social credit systems, brutal crackdowns on religious organizations and minorities, suppression of democratic forces in Hong Kong, the latest take-down of tech giants &#8212; Jack Ma&#8217;s Ant Group and Tencent Holdings &#8212; which could form a focal point for democratic opposition, and beefing up internal policing. These are not the whims of an autocratic regime but a desperate attempt at self-preservation. China&#8217;s internal security budget is even bigger than its military budget (<a href=\"https:\/\/youtu.be\/BKL3k9Zrjpk\">WION<\/a>).<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2021\/xijinping.jpg?w=512&#038;ssl=1\" alt=\"Xi Jinping\"  \/><\/p>\n<p>Behind that inscrutable facade, Xi Jinping is a worried man. Even with all the technology and forces of suppression at his disposal, confronting an angry population of 1.4 billion people is a daunting task. In his darkest hours he must have asked himself the question: WHAT WOULD PUTIN DO?<\/p>\n<p>Even if you don&#8217;t believe the RT hype of the bare-chested deer hunter, judo expert and chess grandmaster &#8212; a combination of Chuck Norris and Garry Kasparov &#8212; you have to give Vladimir Putin credit for surviving 20 years as the head of a murderous regime where only the strong and completely ruthless stay alive.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2021\/putin.jpg?w=474&#038;ssl=1\" alt=\"Vladimir Putin\"  \/><\/p>\n<p>What would Putin do? The answer must have hit Xi Jinping like a 500 watt light bulb: INVADE CRIMEA. Vladimir Putin enjoyed record popularity at home (if you can believe Russian opinion polls) after invading Crimea. Despite the economic hardships that the Russian people had to endure from Western sanctions. The only force more powerful than hunger is a wave of patriotic nationalism.<\/p>\n<p>Now being the canny fellow that he is, Xi figured that Crimea was too far away to be much use. Luckily for him, there is a handy substitute. An island of 23.5 million inhabitants, living under a democratically-elected government, only 180 kilometers away, across the Taiwan Strait.<\/p>\n<h2>Conclusion<\/h2>\n<p>We expect the CCP to fuel a wave of nationalist fervor to distract the 1.4 billion people living under their harsh rule from the economic hardships they are about to endure. Conflict over Taiwan is an obvious choice.<\/p>\n<p>At present the PLA is conducting daily incursions into Taiwanese airspace, to map ROC air defense systems and wear down defenders with &#8220;response fatigue&#8221;.<\/p>\n<p><a href=\"https:\/\/twitter.com\/MoNDefense\/status\/1404746574089969665\"><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2021\/2021-07-09-roc.png?w=525&#038;ssl=1\" alt=\"ROC Reports Incursion by 28 PLA Aircraft\"  \/><\/a><\/p>\n<p>The CCP would not want to interfere with the Beijing Winter Olympics but may use it as a distraction &#8212; straight out of Putin&#8217;s playbook.<\/p>\n<p>Melik Kaylan at <a href=\"https:\/\/www.forbes.com\/sites\/melikkaylan\/2014\/07\/16\/the-re-invasion-of-ukraine-putins-sense-of-timing\/\">Forbes<\/a>:<\/p>\n<blockquote><p>I can say one thing about Vladimir Putin without fear of contradiction: he cares about timing. When he\u2019s up to no good, he loves a sleight-of-hand distraction in global headlines. In 2008 [invasion of Georgia], the Beijing summer Olympics served as cover. More recently, the Sochi Winter Olympics ended just three days before Russia marched into Crimea.<\/p><\/blockquote>\n<h4>Notes<\/h4>\n<ol>\n<li>The 2022 Winter Olympics &#8212; also known as <em>Beijing 2022<\/em> &#8212; is scheduled to take place from 4 to 20 February 2022.<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>The Communist Party of China has an unwritten contract with the 1.4 billion people living under its rule: they will tolerate living under an autocratic regime provided that the CCP delivers economic prosperity. So far the CCP has delivered in spades. A never-ending economic boom, fueled by exponential debt growth as investment in productive infrastructure &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2021\/07\/10\/what-would-putin-do\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;What would Putin do?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[41,26,29],"tags":[663,892,4983,4982,3006,3324,4984,3614,3779],"class_list":["post-26746","post","type-post","status-publish","format-standard","hentry","category-china-hk","category-russia-former-ussr","category-the-big-picture","tag-china","tag-crimea","tag-pla-incursions","tag-republic-of-china","tag-russia","tag-taiwan","tag-taiwan-airspace","tag-vladimir-putin","tag-xi-jinping"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What would Putin do? - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What would Putin do? - the patient investor\" \/>\n<meta property=\"og:description\" content=\"The Communist Party of China has an unwritten contract with the 1.4 billion people living under its rule: they will tolerate living under an autocratic regime provided that the CCP delivers economic prosperity. 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The CCP sets the target for GDP growth at the start of each year but China has a low level of consumption relative to GDP (due to exceptionally low wage rates), so the only way to meet these targets is through exports (which is\u2026","rel":"","context":"In &quot;China &amp; HK&quot;","block_context":{"text":"China &amp; HK","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/china-hk\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":26571,"url":"https:\/\/thepatientinvestor.com\/index.php\/2021\/06\/30\/china-retail-sales-and-credit-contraction\/","url_meta":{"origin":26746,"position":1},"title":"China retail sales and credit contraction","author":"Colin Twiggs","date":"June 30, 2021","format":false,"excerpt":"Chinese retail sales are falling as credit tightens. Leland Miller at China Beige Book: \"It is hard for people to understand how hard China is squeezing credit.....Parts of the economy are going well but for any durable recovery you need consumption to come back, you need retail and services back.....\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":9425,"url":"https:\/\/thepatientinvestor.com\/index.php\/2014\/03\/08\/china-will-never-support-putin-on-crimea\/","url_meta":{"origin":26746,"position":2},"title":"China will never support Putin on Crimea","author":"ColinTwiggs","date":"March 8, 2014","format":false,"excerpt":"Offering the people of Crimea a referendum -- on whether to secede from Ukraine and join the Russian Federation -- may appeal to Vladimir Putin but he should not expect support from China. For two very simple reasons: Hong Kong and Taiwan. China claims these two territories as part of\u2026","rel":"","context":"In &quot;China &amp; HK&quot;","block_context":{"text":"China &amp; HK","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/china-hk\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":37245,"url":"https:\/\/thepatientinvestor.com\/index.php\/2022\/09\/10\/putins-war\/","url_meta":{"origin":26746,"position":3},"title":"Putin&#8217;s war","author":"Colin Twiggs","date":"September 10, 2022","format":false,"excerpt":"\"The economy of imaginary wealth is being inevitably replaced by the economy of real and hard assets\". https:\/\/youtu.be\/dSxE4x5pfjg Vladimir Putin gave some insight, last week, into his strategy to force Europe to withdraw its support for Ukraine. It involves two steps: Use energy shortages to drive up inflation; Use inflation\u2026","rel":"","context":"In &quot;Russia &amp; Former USSR&quot;","block_context":{"text":"Russia &amp; Former USSR","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/russia-former-ussr\/"},"img":{"alt_text":"Robert Habeck","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2022\/2022-09-09-habeck.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":24301,"url":"https:\/\/thepatientinvestor.com\/index.php\/2021\/02\/27\/copper-retreats\/","url_meta":{"origin":26746,"position":4},"title":"Copper retreats","author":"Colin Twiggs","date":"February 27, 2021","format":false,"excerpt":"Commodity prices such as Copper have been boosted by massive infrastructure spending in China -- with the CCP intent on meeting GDP targets despite weak private demand -- and cutbacks in global production caused by the COVID-19 impact on mines around the world. Speculation further boosted demand, fueled by low\u2026","rel":"","context":"In &quot;Copper&quot;","block_context":{"text":"Copper","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/gold-commodities\/commodities-gold-commodities\/copper\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":26272,"url":"https:\/\/thepatientinvestor.com\/index.php\/2021\/06\/12\/china-enacts-anti-foreign-investment-law\/","url_meta":{"origin":26746,"position":5},"title":"China enacts &#8220;anti foreign investment&#8221; law","author":"Colin Twiggs","date":"June 12, 2021","format":false,"excerpt":"The CCP has again shot itself in the foot. Following the dismal failure of \"wolf warrior\" diplomacy -- provoking strong push back from a number of countries -- the CCP has rushed through new laws to counter the rising foreign sanctions. From Trivium China: On Tuesday, we told you about\u2026","rel":"","context":"In &quot;China &amp; HK&quot;","block_context":{"text":"China &amp; HK","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/china-hk\/"},"img":{"alt_text":"CCP","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2021\/ccp.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2021\/ccp.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2021\/ccp.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/26746","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=26746"}],"version-history":[{"count":12,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/26746\/revisions"}],"predecessor-version":[{"id":26791,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/26746\/revisions\/26791"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=26746"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=26746"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=26746"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}