Guideposts: China, America, and a Global Surge of Innovation Part I

You are receiving this email because you signed up to receive our free e-letter Gilder's Guideposts, or you purchased a product or service from its publisher, Eagle Financial Publications. [Gilder Guideposts] [Technology Report]( [Tech Report PRO]( [Moonshots]( [Private Reserve]( Guideposts: China, America, and a Global Surge of Innovation Part I by George Gilder 04/10/2024 SPONSORED CONTENT [A.I. Pioneer Issues Urgent Warning to Americans]( According to one early A.I. pioneer: "You can either use this as an unfair advantage to grow your wealth, or you can let it ravage your retirement savings. There's no middle option." [Click here to learn more while there's still time.]( Amidst the global economic cacophony of off-key men and nations, and despite the global COVID-19 overreaction, China’s economic trumpet still resonates. Across its economy, from coal and nuclear innovation to venture capital and artificial intelligence chips, China defies the Western themes of monetary obesity, “climate change” energy sabotage, “diversity” merit suppression, stultified political schooling, nationalist mandates, edicts, and tariffs. Economists and pundits may be baffled by it all. But China is actually leading the world economy in a more sane and salubrious direction away from money printing tides, environmentalist lunacy, diversity mandates, and tumorous bureaucracy. Counting state and local spending and U.S. regulatory overreach, China may even lag the United States in per capita government expenditures and in bureaucratic mandates. We assume that the United States has a freer economy than China’s. That assumption ignores the massive U.S. web of controls across labor, information, and energy markets that have effectively nationalized the U.S. financial, media, and energy industries. China is even better at handling domestic terrorist threats than is the United States, which uses bombs abroad and subsidies at home to deal with people explicitly committed to killing its countrymen. In a world of slowing economies, China’s official gross domestic product (GDP) growth rate remains exceptional, approaching an official 5%, remarkable on its own. Merely half China’s annual growth rate during the heady days of 1980-2010, China’s estimates are as credible as other governments’ claims. But peel back the layers, and a different narrative emerges. [Millionaires Will Be Minted OVERNIGHT]( Legendary tech futurist who predicted the rise of Amazon, Netflix, and Apple YEARS in advance now says: “The biggest, most profitable technological advances in the future will ALL stem from this single breakthrough. Millionaires will be minted overnight.” [He’s revealing EVERYTHING here.]( Let’s debunk the GDP delusions of Western economists. The GDP, that venerable but vain metric computed in scores of Washington bureaucracies, counts bureaucratic spending itself as worth its cost but misses everything important in the economy. It’s akin to gauging a symphony’s value by counting the notes and even amplifying the noise. Enter William Nordhaus, the Nobel laureate and Yale professor. His brainchild—time prices—launched a more accurate and revealing metric back in 1991. In an essay entitled “Do Real-Output and Real-Wage Measures Capture Reality? The History of Lighting Suggests Not,” he showed that Western economic data completely fails to measure innovation. The ultimate test of innovation is productivity: workers and entrepreneurs achieve more output in less time. Fiat money is irrelevant as a measure of real growth. What matters is that workers can buy more goods and services with less minutes and hours of labor. Imagine a marketplace ruled by time, not currency. A loaf of bread? Ten minutes of labor. A smartphone? A week’s worth of life. Registering a silent universal negotiation between minutes and material, time prices capture the essence of economic transactions in any place or era. By the time-price measure, China’s economy continues to outperform. My new book, “Life after Capitalism,” soon to be published in China, reveals the basics of this unnoticed theme: “Wealth is knowledge, growth is learning, money is time.” The neanderthal in his cave, as the great Thomas Sowell observed in 1971, commanded all the physical resources we have today. The difference between our age and the stone age is entirely the growth of knowledge, which we call learning. [3 Steps for Surviving the "Perfect Storm" Market Crash]( Recent moves by the Fed could wipe out billions of dollars in the market…worse than the .com bubble, housing meltdown, or covid-crash combined. Navigating this requires more than gut instinct; it calls for the sophisticated edge that artificial intelligence trading software provides. [Learn to Protect Your Money Ahead of Any disastrous Event for FREE >]( If growth is learning, the real economic growth of China expresses the learning process of its workers. By manufacturing goods for other countries, the Chinese necessarily undergo the most effective of learning regimes—actually building, part by part, process by process, the technologies of the world. As the United States has allowed its schools and universities to sink into a morass of political bureaucracy and ideology, the Chinese also teach a large share of all the world’s engineers and laboratory workers. The West cannot outsource manufacturing and engineering education to China without the Chinese learning our techniques and technologies and then improving on them day by day. In our amazingly self-defeating “China Initiative,” we have even taken to forcing Chinese students in the United States to return home to China. Summing up all these effects, the West exploits Chinese manufacturing skill and technological innovation more than the Chinese exploit our intellectual property and technological standards. In our perverse “climate change socialism,” we suppress innovation in the United States and push it to China. Per hour of work, Chinese workers wield purchasing power like never before. Providing manufacturing and technological innovation for the world, their toil yields exponential returns. Contrary to GDP’s staid metrics, China’s growth has outpaced even South Korea’s formidable economy by some 50%. It’s not a statistical quirk; it’s a testament to the emancipation of the Chinese spirit in a four-decade eruption of creativity, curiosity, discipline, and resilience. While Americans prattle about stolen intellectual property, as if you can steal economic growth, China forges ahead in its laboratories and factories, learning new things for the world. To monetary economists, inebriated by currency trading at a rate of some $10 trillion a year, economic data is summed up as “inflation” or “deflation.” But deflation, born of innovation as in China, can disclose cost reductions and productivity leaps. The Chinese worker, increasingly unshackled from rote peasant labor of little yield, now produces a constant growth of knowledge and learning. Perhaps the most important learning in more than 50 years, however, has just come from a Chinese-American partnership that would shock and outrage the angry nationalists and nationalizers of both countries. But that story is for part II, next week. P.S. Want to learn more about VERSES? I just finished a video interview with Gabriel René, the CEO of VERSESAI and the executive director at the Spatial Web Foundation. We had an illuminating discussion on how it is helping to lead the artificial intelligence revolution. [Click here to watch it!]( To become a member of my Moonshots trading service, which is solely dedicated to finding companies like VERSES, [click here]( Sincerely, [The Editors] George Gilder, Richard Vigilante, Steve Waite, and John Schroeter Editors, Gilder's Guideposts, Technology Report, Technology Report Pro, Moonshots, and Private Reserve About George Gilder: [George Gilder]George Gilder is the most knowledgeable man in America when it comes to the future of technology and its impact on our lives. He’s an established investor, bestselling author, and economist with an uncanny ability to foresee how new breakthroughs will play out, years in advance. George and his team are the editors of Gilder Technology Report, Gilder Technology Report Pro, Moonshots and Private Reserve. About Us: Eagle Financial Publications is located in Washington, D.C. – only a few blocks from the Capitol. Our products have been helping investors build their wealth for several decades. Whether you’re a long-term investor or short-term trader, you’ll find the right strategy for you, including how to earn more steady income to spend now, preserve and grow your capital to enjoy later, and whatever other investment goals you have. Visit Our Websites: - [StockInvestor.com]( - [DividendInvestor.com]( - [DayTradeSPY.com]( - [CoveredCall]( - [MarkSkousen.com]( - [GilderReport.com]( - [BryanPerryInvesting.com]( - [JimWoodsInvesting.com]( - [InvestmentHouse.com]( - [RetirementWatch.com]( - [SeniorResource.com]( - [GenerationalWealthStrategies.com]( - [InvestInFiveStarGems.com]( - [[YouTube] Visit our YouTube Channel - Eagle Investing Network]( To ensure future delivery of Eagle Financial Publications emails please add financial@info2.eaglefinancialpublications.com to your address book or contact list. View this email in your [web browser](. This email was sent to {EMAIL} because you are subscribed to George Gilder's Guideposts. To unsubscribe please click [here](. If you have questions, please send them to [Customer Service](mailto:customerservice@eaglefinancialpublications.com). Legal Disclaimer: Any and all communications from Eagle Products, LLC. employees should not be considered advice on finances. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized advice on finances. Eagle Financial Publications - Eagle Products, LLC. - a Salem Communications Holding Company 122 C Street NW, Suite 515 | Washington, D.C. 20001 [Link](