Submitted by Peter Pham, Managing Director of One Road Research, first part of a two-part special report on the Perestroika Deception.
Take a moment to consider that for the past 75 years, nearly all conflicts around the world fundamentally stem from the US, Russia and China. From the fall of the Berlin Wall to the tragedy of Tienanmen square, we were all lead to believe that Gorbachev had helped usher in reforms that have changed the world.
As Russia and China ramp-up their relations, we see that what was once old, is new again. This is part of a subversive strategy developed by the world’s largest intelligence state - Russia... Now headed by former intelligence officer Vladimir Putin.
The Soviet Perestroika
The USSR’s perestroika plan or “restructuring” eased previous restrictions and allowed market-based trade. All to make socialism work more effectively for its citizens. Yet perestroika is widely considered to be the death knell of the Iron Curtain, as it increased the political, social, and economic tensions that were plaguing the communist nation.
What if we were all deceived by a subversive attempt by the players in this Great Wall of Deception to be complacent economically, socially and politically?
The Soviet-inspired perestroika system lives today.
Liberalization False Flags
While in power, Deng Xiaoping ushered in a series of reforms, leading to the One Country, Two Systems theory. This leaned heavily on the steps of the Asian Capital Development model, and state-sponsored capitalism was born. China gained Western sympathies by restructuring in exchange for global access and lifted sanctions.
With ACD, China grew its economy and rebalanced the global economic power in their favor by systematically outflanking western perceptions and priorities for its own benefit.
How is this achieved?
By taking advantage of the world's strong shift towards globalism, China transformed...
And grew their manufacturing base to become an export powerhouse for the large Western consumer base. This is the root cause of the global economic war today.
But when you look at China now, with all the authoritarian actions — the restrictions of rights and information, unfair economic practices, the rising inequality, and state-sponsored "gulags" — something becomes very clear...
It was never possible for China to incorporate capitalism as the west understands it. Nor was it ever intended. It's something new altogether...A Great Wall of Deception.
The Emperor Has No Money
China's Open Door Policy allowed foreign investment into China via special economic zones, which were free of many bureaucratic regulations. Areas such as Shanghai, Shenzhen, and Guangdong became large engines of growth for the national economy.
Many in the west embraced these developments with open arms.
Today, through various global and peace-oriented initiatives, the West has been deceived into favoring a form of a global 'perestroika' as the vessel for global prosperity.
For decades, governments such as China, Vietnam, and former Eastern Bloc nations have utilized state sponsored capitalism, providing the impression of liberalization and decentralization.
Since World War II, the United States has cut import tariffs considerably. Since 1970, the US tariff rate has stayed below 10%, and decreased further in the subsequent years. This encouraged globalization, but also allowed others to game the system to their advantage.
China took further advantage by joining globalization initiatives such at the WTO. By playing within the system, these actions legitimize autocratic nations such as China in the eyes of the West. In China, FDI investment and the Shanghai index witnessed dramatic jumps following liberalization announcements in the PRC.
Perestroika initiatives uplifted former Eastern Bloc countries as well, as these former communist nations sought to reenter the global economy. FDI inflow for Eastern Bloc countries also ramped-up significantly across all former Soviet-influenced nations from the very start of the USSR collapse.
These are all part of the Great Wall of Deception, and have been granted the boons of open trade, increased FDI, and large economic growth for the small price of attempts at market liberalizations.
The Foundation of the Trade War
The problems occur when the participating nations abuse the system already in place. China’s brazen manipulation of the system and the one-sided trade is what laid the foundation of the current US-China Trade War, as increased tariffs and sanctions are ideal ways to balance the playing field.
Other issues arise from this new paradigm. As these states become more prosperous, they begin to increasingly misallocate funds, all in the attempt to look out for the central state rather than the companies.
In my next message, we’ll be going further into this idea, exploring how developing nations seek to use the current world system to their advantage and the investing strategies the reader needs to implement in this New World Order. And with that, I leave you with one of my favorite clips: Dostoevsky's Grand Inquisitor from the Brothers Karamazov :