America mostly dodged the Bidenomics bullet, but we’re not out of the woods yet. China’s unraveling economy offers a stark warning: bad economic ideas don’t simply fade away.There will be more Bidenomics bullets in our future – here’s what to watch out for…
By Peter Reagan
There’s an old analogy that’s probably overused: “I just dodged a bullet.” (If you’re not familiar with it, means “I barely missed devastation.”)
It could mean “I almost made a big mistake by buying that lemon of a car,” or it could mean ” I nearly married the wrong person who turned out to be truly awful. It could mean “Mr. Madoff’s presentation was really impressive, but I just didn’t have any liquid cash to invest with him”
In any of those scenarios, you’d likely feel a sense of relief once you realized how close that you had come to what would have turned out to be a disaster situation for you.
And that’s exactly what Americans should be feeling right about now. They should be breathing a sigh of relief that the occupant of the White House changed this year.
Now, to be clear, I’m not being political here. I’m only talking about economic policy and its effect here.
Collectively, the American people dodged a bullet by not having to endure four more years of Biden’s policies.
Now, some may not be familiar with the details to understand why I say that, so, let me step back and talk about a different economy so that we can have some perspective to better understand the situation.
By the end of this article, it will be clear why we’re talking about another country’s economy and what it means to you. So, with that in mind, let’s talk about…
China’s struggling economy
The mainstream legacy news media seems to love to talk about how vibrant and healthy the Chinese economy is under the Chinese Communist Party (CCP). They do this so much that some have speculated that the mainstream media here in the U.S. is part of the CCP’s propaganda wing.
Now, I haven’t been privy to any meetings of either the media or the CCP, so I can’t confirm or deny that accusation.
What I can say, though, is that things aren’t so rosy in China’s economy right now. Daniel Lacalle, contributing to The Epoch Times, writes,
However, the combination of rising debt, a constantly weakening currency, and the escalating bankruptcy and working capital issues could potentially bring [China’s central-planned neo-Keynesian model] to a collapse, even in the absence of an official recession.
As we’ve seen with China and other countries running on a Keynesian economic model, this kind of situation can be sustained for a short time, but it eventually comes back to bite them in the backside.
After all, what is Keynesian economics but a variation on the bad thinking on monetary policy that is part and parcel of Marxism?
And it’s that bad thinking on monetary policy that is one of the primary reasons that Marxism fails. Every time.
But I digress…
China’s economy is struggling right now because it is being run on the assumption that certain economic and monetary fallacies are true.
The thing is, the CCP isn’t the only group involved in running a superpower that bought into that thinking.
How the U.S. almost faced China’s problems
As I said, China’s problems aren’t unique to them. Other countries have tried that bad thinking before, and some have tried to implement that into the U.S. economy, too.
Specifically, the previous administration. (That’s not to say that the Obama administration and Ben Bernanke in particular didn’t make very similar mistakes.)
Yes, I’m saying the same terrible Keynesian thinking that the CCP is dealing with right now was also the thinking behind Bidenomics.
It’s not just me saying that, though. Daniel Lacalle, this time contributing to The Mises Institute, writes:
One of the biggest problems of [the Biden administration’s] neo-Keynesian approach to government budgets is that it leaves households with less money in real terms, and the “anti-inflation” measures increase debt and inflation.
Living through it over the past several years, it’s not hard to see the similarities: pretend that money is limitless, spend it that way, drive down purchasing power of the consumer (through inflation), act like everything is rosy and that anyone saying otherwise is a partisan hack or, worse, a traitor to your country.
Looking at it this way, you can almost see why some people accused Biden of having “inappropriate” and “concerning” ties to the CCP (Again, I have no way to verify that was or was not true).
What is clear is that Bidenomics not only didn’t work but it also hurt the U.S. economy. Just the increase in inflation was staggering!
And considering the potential economic recession, or possible oncoming collapse, of the CCP’s economy, it’s pretty clear that Trump taking back the White House was the American people dodging the economic bullet that was Bidenomics.
But there’s an important warning in all of this
Yes, the Chinese Communist Party’s economic policy is terrible (They’re communists, after all. You didn’t expect good economics from them, did you?)
Yes, the economic thinking behind Bidenomics was measurably and demonstrably terrible.
And, yes, thankfully, Trump’s economic policies are the complete opposite of anything even remotely considered by the Biden administration.
Remember, though, that there are a lot of people in the world, and, sadly, that means that there are a lot of foolish people in the world (at least when it comes to the economic policies they support).
And some of those people can vote now while others will be able to vote in the future.
Which means that terrible neo-Keynesian economic policies could be back on the menu a few Presidential administrations from now.
After all, if you don’t know any better, Keynesian economics sounds good. It just isn’t good.
And that’s why you absolutely cannot depend on politicians and bureaucrats, or even “the government” in general terms, to make sure that the economy runs well and smoothly and that our future economic policies will be rational and intelligent ones.
One thing that history shows over and over and over is that too many people don’t read history, don’t learn its lessons, and go on to make the same mistakes that history documented many times over.
No, you can’t depend on them to make sure that you and your family are secure and financially safe. But you can act to protect your family.
How? By diversifying into inflation-resistant assets like physical precious metals. You can strengthen your savings against recessions (while preparing for the next Bidenomics bullet).
You can start your research and due diligence by getting our free 2025 Precious Metals Information Kit right now.