Key to China’s Power: An Army of Geologists

How can America possibly compete with 10,000 Chinese geology majors? [The Rude Awakening] April 07, 2023 [WEBSITE]( | [UNSUBSCRIBE]( Key to China’s Power: An Army of Geologists - Sean is off this Friday, so Byron once again rides to the rescue! - How many Chinese geology majors does it take to put the US out of business? - If America planned like China, there would be a scientist behind every blade of grass. [Biden Caught Red-Handed!]( [Click here to learn more]( Biden, AOC and all of their Democratic cronies were just caught RED-HANDED… Selling YOU and every American patriot despicable LIES about [so-called “green energy”](. This is the biggest “SCAM” in the history of this great country. Not only is “green energy” unreliable and inefficient… It’s also [DANGEROUS in ways you didn’t even KNOW](. Today, one man is daring to speak the truth… And revealing the secret to profiting from Biden’s ultimate blunder. [Click here to discover the TRUTH about Biden’s “Green New Scam”…]( And learn how YOU can profit from its spectacular failure. [Click Here To Learn More]( [Byron King] BYRON KING It’s Good Friday and Sean Ring is taking time off with his family. He asked if I’d cover for him and I’m happy to do so. First of all, greetings to everyone. Across the world, most markets are closed for Easter. Plus, it’s Passover for Jews and mid-Ramadan in Islam, which means that many people have throttled back for a few days. We can defer market commentary to next week, and then get back to figuring out which big bank will fail next, if not opine on President Trump and his legal travails in the Banana Republic of Manhattan. Today, let’s think on the big side and discuss China, and her fast-growing national power. That’s worth some time, right? (Hint: yes.) I’ll tell you a story that explains how at least some of that power came about, with reference to China’s deep and very serious educational system. And I hope you come away with improved understanding of the unfolding future. A Convention of Really Smart People My tale begins 16 years ago, in April 2007 when I attended a convention of really smart people, namely an energy conference in Long Beach, Cal. There, I made an eye-opening discovery – to me at least – about China. And it remains pertinent, especially considering what has happened in the intervening time. Back then I wrote about what I learned, in one of my old newsletters called Whiskey & Gunpowder, if you’ve been around for a while. I discussed what I called China’s “armies of geologists.” And here are some of the key points. The Long Beach event was the annual convention of a professional group called the American Association of Petroleum Geologists (AAPG), of which I’ve been a member since 1977. (Yep, I’m that old.) Attendance was about 6,000, mostly oil- and gas-focused geologists from around the world, and others who work in related fields that range from service companies to government and academe. One thing that struck me about the assembled throng was how collectively well-educated the whole group was. Many members of AAPG hold one or more master’s degrees in scientific and technical fields. The numbers of Ph.D.s, combined with the broad spectrum of research fields, was entirely impressive if things like that impress you. So, the Long Beach Convention Center overflowed with smart people, dripping with ample amounts of academic wax and ribbons. Which brings me to the next part of the story. Meet Mr. Wang, Marine Geologist The AAPG event offered several field trips, and I signed up for one to visit historic oil sites in the Long Beach environs. Because yes, despite California’s current opposition to fossil fuels, the Long Beach-Los Angeles region is serious oil patch going back over a century, with deep petroleum legacy and plenty of geology on display if you know where to look. The trip involved travel to different locales in a bus, which is how I came to be sitting in a seat when a guy walked up and asked if the adjacent seat was taken. I said no, he sat down, and we introduced ourselves. The gentleman was Mr. Wang, a professor of marine geology from what he called the “University of Geoscience” in Wuhan, China. (Yes, that Wuhan.) We began talking about geology, shop talk basically. And quickly, I figured out that this fellow had an excellent grasp of his field. I asked Mr. Wang about his university in Wuhan. Among other questions, how many students attend the Wuhan University of Geoscience? “Oh, about 20,000,” he replied. I was stunned. “You have 20,000 students majoring in geology?” I replied. He paused for second, and then smiled. “Sorry, no,” he replied. “I didn’t mean to mis-speak. Many students study other fields besides geology, such as physics, chemistry, biology.” So I asked again, “Well, how many people do you have studying geology?” “Hmmm…,” said Mr. Wang. “About 10,000.” Again, I was stunned. They have 10,000 students studying geology? And a similar number in physics, chemistry and biology? Holy Smokes! I did some quick math in my head. My immediate sense was that if you took the top 500 colleges and universities in the U.S. and added up all the geology or earth science majors, you would still not reach 10,000. But here was one university in China with a clearly massive program. Curious, I wanted to know more. “So, 10,000 geology students? In what aspects do these people pursue their studies?” Mr. Wang thought for another few seconds and replied, “We teach necessary scientific background such as math, chemistry, and physics. Then we teach geological concepts like stratigraphy and mineralogy and structural geology. We move students into specific fields such as oil and gas geology, petroleum engineering, mineralogy, mining geology and engineering, civil engineering, geological engineering, marine geology, geochemistry, geophysics, and other fields that branch out from those subjects.” “Do your students have jobs when they finish their studies?” I asked. “Absolutely,” replied Mr. Wang. “Our students graduate, and many go on to obtain advanced degrees in China, as well as in Australia, Europe, and the U.S. We also send many students into the oil and gas industry, mining industry, and engineering fields. We have graduates working at geological projects everywhere; all across China, and as far away as Arabia, Africa, South America, and even performing research in Antarctica.” Impressed, I queried Mr. Wang some more: “Since you have 10,000 students, is your school the main school for the study of geology in China?” “No,” he replied. “Ours is one of three geoscience universities in China. Two other universities are comparable to ours. And many other universities have their own college of geology. Beijing University, for example, is a very great school that is attended by many of the best students in China. It has a college of geology with about 4,000 students.” I followed-up: “Can you give me some idea of how many students study geology in China today?” Mr. Wang thought for a moment. “If you add them together,” he said, “about 40,000 or 50,000 study geology at the university level. Maybe more, but I don’t want to give a number that’s too high.” After a pause, Mr. Wang added: “Importance of geology begins at the top. The Premier of China, Wei Jiabao (China’s premier at that time, in 2007; BWK), is a geologist, by the way. He worked as a geological surveyor in his youth.” [Patent #11,219,620: The Most Valuable Patent In History?]( I believe this could over time become the single most valuable patent in history. [That’s because this patent is just some of the exciting work being done by a company which is developing treatments for one of the biggest and most common diseases in America…]( A disease which impacts 54 million people, or about 26% of the adult population in America. Whatever you do, do not let this opportunity pass you by. [Click here now for the details.]( [Click Here To Learn More]( Are You Impressed Yet? Okay, think about that. In 2007 the then-premier of China was a geologist, and about 50,000 students studied geology. That was 16 years ago. Now, let’s say that China has graduated 10,000 geologists per year. Multiply times 16 equals 160,000 geologists, and I’m being conservative. Per my research in 2007, that 50,000 number in China was over 20 times the number of college students studying geology in the U.S., which included significant numbers of foreign students enrolled at U.S. institutions. Meanwhile in 2007, according to the National Science Foundation (NSF), U.S. universities granted fewer than 500 advanced degrees in geology, and that number included related degrees in petroleum engineering. About half of those degrees were awarded to foreign nationals. So, the raw numbers were that China had 100 times that U.S. number in the geology pipeline. Recently, I tried to update the U.S. numbers. Sad to say, NSF data cuts off after 2012. Still, those U.S. government numbers list about 1,600 master’s degrees and just under 700 Ph.Ds. in 2012, but the data lump together the field of geology with atmospheric and ocean sciences, which means that we don’t really know how many new, true geologists are coming down the line. Still, it’s not out of line to make a comparison. In military terms, the U.S. trains geologists by, at best, the platoon- or company-size. The Chinese crank out geologists by the division, if not by the scale of an army. Indeed, China’s collective army of geologists is comparable in size to the U.S. Marine Corps. Why Is This Important? For many decades – let’s use the 1960s as the start – earth science has undergone continuing evolution if not revolution. That is, geology has many sturdy old, traditional elements like sediments, paleontology, hard rock (igneous/metamorphic), structural, mineralogy and such. Then in the 1960s-70s came the intellectual leap of viewing the earth as a dynamic system, in which processes deep in the mantle and even core drive surface events. Think in terms of plate tectonics, midocean ridges, or vast mountain and volcanic ranges like the globe-circling, Pacific Ocean rimlands called the “Ring of Fire.” Plus, take these earthly developments into outer space and apply them to planetary science. People write volumes describing scientific upheaval based on stunning advances in earth and beyond due to improved data gathering, storage, analysis and signal processing. In general, geology is about understanding earth as a system, or more accurately as a system of systems. While anymore the field incorporates entirely new realms, such as interactions between the atmosphere, hydrosphere, biosphere, cryosphere, solid earth, and near space. All this, and geoscientists play critical roles in recognizing the extent and magnitude of human impact on the entire earth system. It’s no stretch to say that this immense new scope of earth study has been enhanced via the growth in knowledge of processes on other planets. The bottom line is that advanced nations require significant numbers of people who understand at least the basics of geology, let alone the hard stuff. The more, the better some might say; and certainly, it’s going to be better for the nation that trains up armies of geoscientists. Consider energy resources like oil and gas, or indispensable industrial elements like iron, aluminum, copper, nickel and many more. Everything from your iPhone to your car to your microwave oven is made out of metals or other materials. Somewhere and somehow, some geologist had to find the ores and minerals whence all else comes. It’s also no stretch to say that the future of modernity depends on how well people can locate and develop necessary resources. In other words, societies that want to remain on top in the future had better graduate more than a few geology majors from the academic sweatshops; the more the better. In 2007 I wrote: “We live in a world in which the Chinese are training the scientific and technical cadre that will go out into the world and, one way or the other, find what their country needs and bring it home. There are armies, and then there are armies of geologists.” Looking back over 16 years, Mr. Wang’s astonishing numbers about China’s geology programs have played out across the world. Today, you’ll find Chinese geologists on every continent, in almost every nation, looking at every possible energy or mineral play. And their mission is quite well-defined: to locate deposits and arrange to bring energy and mineral value back to China. On a personal level, I myself have encountered Chinese geologists in my travels, as far afield as Ecuador and Eritrea, South Africa to Brazil, Madagascar to Manitoba, Australia to Alberta. I mean… They. Are. Everywhere. Also, in 2007 I wrote that: “China’s massive educational effort to train geologists and related scientific personnel for the future indicates a national desire to… adopt the best scientific knowledge of the West. … Because China intends, in its own unique way, to be among the prevailing civilizations of the future.” Well, yes. That was China’s well-formed, up-and-running plan back in 2007, and it appears that they are still executing on it. Keep it in mind as you enjoy the Easter weekend. And as I said at the beginning, we’ll get back to our own world next week, a world in which priorities are quite different to what we see out of China. Thank you for subscribing and reading. Best wishes… [Sean Ring] Byron W. King In Case You Missed It… The World Is Dropping the Dollar [Sean Ring] SEAN RING Good Morning Reader, Happy Thursday! I’ve had a hell of a time writing the Rude this week. The idiots in DC, NYC and elsewhere in the Lower 48 have lobbed grapefruits down Broadway to yours truly. Whether it’s the Democrats inadvertently re-electing Donald Trump, Alvin Bragg proving that graduating last in law school still makes you a lawyer or Chicago electing an even worse choice than Madame Fishface, America has not disappointed this week. Elsewhere in the world, while America is distracted turning itself into a dystopian amusement park, the Chinese government is stepping up to be the next Nobel Peace Prize winner. But before I tell you about peace-loving Pooh Bear, let’s get a bit of history in. [DEADLY Secret Biden Doesn’t Want You To Know]( [Click here to learn more]( While Biden, AOC and the rest of the Dems will swear up and down that “green energy” is a godsend that will cure all of the world’s energy problems… [The truth is MUCH more sinister…]( In fact, not only is “green energy” completely unreliable… It’s also DANGEROUS in ways they WON’T tell you about! [Click here NOW to learn the TRUTH, before it’s too late](. [Click Here To Learn More]( “It’s Not Worth a Continental!” Unfortunately, my beloved library is still in Cebu, Philippines, where I had to leave it due to the insane transportation costs that followed the government-induced private sector shutdown of 2020-2021. My in-laws are dutifully minding my library, shelves and reading chair until later this year, when Pam flies back to her native country to retrieve them for us. That’s why I can’t pinpoint the exact page where the phrase “not worth a Continental” jumped out at me. Growing up in Joisey and believing that America was always the richest country in the world, Ihad no idea what that phrase could possibly mean. From [Clifford F. Thies, of AIER]( In 1775, practically at the outset of hostilities, the Continental Congress authorized an issue of $2 million in paper money. By the end of 1776, $25 million was in circulation, already at a 30 percent discount relative to silver. By the end of 1777, $38 million was in circulation, at a 70 percent discount relative to silver. By the end of 1779, $192 million was in circulation, and $1 in paper money was worth only 1 or 2¢ in silver. The states were issuing their own paper money, contributing to the inflation. With so much paper money, prices were skyrocketing, and specie was being hoarded. At one point, George Washington, commander of the Continental Army, remarked that a wagon load of money would not buy a wagon load of provisions. Innkeepers, merchants, and farmers were refusing to do business in terms of money. In October 1779, the Continental Congress requested not money from the states, but actual supplies – such as corn, wheat, hay, and oats – in order to support the armies in the field. What was that paper money that depreciated off a cliff? They were called the Continental Dollars. And since a wagonload of them were worthless, anything that was deemed worthless was “not worth a continental.” Sound familiar? - The Mississippi Bubble - Weimar Germany - Gideon Gono’s 100 trillion Zimbabwe Dollar Note Mark Twain was right: history doesn’t repeat, but it rhymes…. Especially financial history! But how much does it rhyme? Will the latest version of the United States Dollar follow its Continental Dollar ancestor into worthless oblivion? The World Is Dropping the Dollar Like a Bad Habit All week, you’ve probably heard news like this: - [Will a new BRICS currency replace the dollar?]( - [China and Russia working on alternative to SWIFT (the USD payments system).]( - [Malaysia and India will bypass dollar.]( - [The most traded currency in Russia is now the Chinese yuan.]( - [Brazil and China will settle their trade in yuan, not dollars.]( Theoretically, there’s no reason for any of these countries to use the dollar. Except, their own currencies trade like they’re jumping on trampolines. So it’s difficult to maintain a solid rate. The USD was attractive because the US, in better days, had the strongest economy, military and institutions. But so mismanaged has been the dollar, whether by the Fed ratcheting up rates too quickly or the USG weaponizing the dollar by first sanctioning and then [confiscating Russia’s assets]( that the world is sacrificing stability for a leap in the dark. Because that’s what it is. To be fair, I have no idea what this new system would look like… and neither does anyone else. That’s why I think most of these moves have been made bilaterally. A bunch of things will be tried, and whatever works out the best will be codified into the BRICS “legal code.” But why is this such a disaster for Americans? Follow The Money This week, Saudi Arabia and Iran are meeting in Beijing to solidify a new relationship. I don’t know if Emperor Pooh Bear can pull off the miracle of making 1,500 years of hatred disappear. But he’s going to try his damnedest. Saudi Arabia has already agreed to trade its oil for China’s yuan. Let's write that again, for those who just blinked really quickly… Saudi Arabia has indeed agreed to trade oil for yuan. All sorts of questions pop up from just that one bit of news. Aren’t Saudis supposed to sell their oil for USD? Isn’t that what “petrodollar” means? If they’re not selling it for USD, is Sleepy Joe even aware of it? And perhaps most importantly… If the Saudis are taking in Chinese yuan, then where are they going to invest those yuan? That answer is obvious, isn’t it? They’ll invest those yuan back into China, just like they were doing with the USD and USA for nearly 50 years. That’s why these headlines make so much sense: [headline] Credit: [Bloomberg]( But this is just part of the problem. The second order effects are even worse. The Real Problem Let’s set the terms. Taxation is robbery. Inflation is theft. We’re dealing with the latter. The USG subsidizes the economy via inflation. The government literally steals from you by printing money. Here’s how: the Fed prints money and delivers that via the commercial banks to the USD users. That’s you… and all the foreigners who want USD. There are more dollars outside the United States than inside the United States. And normally, this doesn’t matter. Because you don’t benefit from “reserve currency” status. The government and the banks do, because they print $100 bills for $100 worth of goods from foreigners. The thing is, it only costs them 15 cents to print that $100 bill. That’s what we call seigniorage. And it’s the single greatest scam ever invented. You’re just the middleman through which the dollars flow. You get none of the $99.85 profit. And again, you don’t care. You don’t feel it. You go to the outlet stores, buy an SUV-load of “stuff” you think is marked down and off you go. But here’s where the problem comes in: when the foreigners decide they’ve had enough of the scam and then send all those dollars back. Those dollars build like a 100-foot wave and come crashing back into the domestic economy. Domestic prices skyrocket because there’s a tidal wave’s worth of dollars chasing far too few goods. Not only that, but do you really think your taxes pay for your military? Of course not. There’s simply not enough revenue to pay for all of it. That’s why the Fed needs to print, print, print. Those printed – one might say “counterfeit” – dollars spread the cost of the military around to everyone. Think of inflation as a tax that the central bank levies instead of a legislature. It’s a disaster for the lower classes because they get “taxed” out of existence. That’s why the Fed’s reaction to all this matters so much. They’ve got to make sure inflation doesn’t get out of control… but they still need some to pay for the “goodies” the government can’t tax you on. If you’re not prepared, your loaf of bread will require a wheelbarrow worth of paper to pay for it. But we’ll get you prepared in a second, because I think it may get even worse… The Peace Deal According to the Global Times, Emperor Pooh Bear invited the Saudi Arabian and Iranian delegations to Beijing today to discuss detailed arrangements to resume ties. [Liu Zhongmin]( a professor at the Middle East Studies Institute of Shanghai International Studies University, practically snorted: It is obviously difficult for the West to understand the fundamental reason why China can successfully promote the reconciliation between Saudi Arabia and Iran, because China follows a diplomatic concept and policy that is completely different from the West's Middle East strategy and policy, and is different from the West's behaviors that divide the region, incite camp confrontation, and promote so-called democratic transformation as well as harmful practices such as proxy warfare. Here's my question, and I’m just thinking aloud here. Feel free to call me crazy. Do the Chinese want to build an oil pipeline from Saudi through Iran to China? One already runs from Saudi through Kuwait to Iraq. The Chinese would just need to extend it. This would lower costs and avoid hostile navies like the US and UK. Saudi would get the yuan, Iran would get an enormous transit and insurance fee and China would get its oil. This would also bring China’s Belt and Road Initiative closer to fruition. That would obviate Alfred Thayer Mahan’s sea-based world and usher us into the age of Halford Mackinder’s land-based World Island. I’m not sure, but forgive me for thinking there’s an ulterior motive. Wrap Up My erstwhile colleague Jim Rickards has been talking about gold forever. And now it’s time to act. In fact, he predicts gold could soar as high as $15,000 thanks to an announcement coming from the Fed on May 3. It’s not too late to protect your purchasing power and get in on gold’s huge run. [Click Here for More Details.]( Silver also looks like a great bet right now. We can see the upside all the way to $50 or higher. And, if you’ve got room left, a bit of Bitcoin can also help you avoid inflation. For Bitcoin, you’re not swinging for the fences. Just a bit of protection. And remember, it’s Bitcoin. No shitcoins! You’ve got time, but the sooner you act the better. This is a lot to take in, but I want to make it clear: something big is brewing here and it doesn’t look good for the everyday American. So let me know how you feel about all this (or any other topics you want covered) by emailing me [here](mailto:feedback@dailyreckoning.com). And have a wonderful Easter weekend! All the best, [Sean Ring] Sean Ring Contributing Editor, The Morning Reckoning feedback@dailyreckoning.com [Paradigm]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2023 Paradigm Press, LLC. 808 Saint Paul Street, Baltimore MD 21202. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. To end your Rude Awakening e-mail subscription and associated external offers sent from Rude Awakening, feel free to [click here.]( Please note: the mailbox associated with this email address is not monitored, so do not reply to this message. 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