(Warroom)—Rich Stern of the Heritage Foundation and former Congressman Dave Brat explored the trajectory of China’s economic transformation on Friday’s WarRoom, warning that Beijing’s return to central planning under Xi Jinping is crippling domestic growth but enhancing strategic military and industrial power. China’s massive industrial subsidies—disguised as economic stimulus—are now serving as covert military investments. While China sacrifices long-term economic health, it gains near-term advantage in global manufacturing, rare earths, and strategic infrastructure. Meanwhile, the U.S. lacks a coherent vision to counter this threat, exposing national vulnerabilities in the face of a highly centralized, authoritarian strategy.
China’s Economic Shift: From Market Reform to Command Control
Rich Stern opened the conversation by contrasting China’s past economic model with its current trajectory under Xi Jinping. From the late 1970s through the early 2000s, China adopted market-oriented reforms, welcomed Western capital, cut taxes, and slashed red tape. This hybrid economic approach, Stern noted, was largely responsible for China’s stunning four-decade growth spurt.
However, under Xi Jinping, that trajectory reversed. Xi publicly committed China to a Marxist-Leninist path, rejecting price mechanisms and market signals in favor of state control. Stern described this shift as a form of “economic self-sabotage,” noting that China’s growth rate has halved, and nearly a third of Chinese companies are now dependent on state subsidies just to survive.
Subsidies as Strategic Weapons
A central theme of Stern’s warning was the real purpose behind China’s ballooning industrial subsidies. He estimated that China may be spending as much as $2 trillion annually—a sum comparable to the entire U.S. manufacturing sector’s value-added output. However, unlike Western-style corporate bailouts or inefficient handouts, Stern argued that China’s subsidies are strategically targeted.
“They’re military subsidies disguised as economic ones,” he explained. China is investing in critical sectors like rare earth mineral processing, semiconductors, electric vehicles, solar panels, and shipbuilding—all essential to war-making capability. These aren’t commercial endeavors meant to generate profit; they are state-sponsored engines of global dominance, aimed at overtaking U.S. and European industrial capacity.
- Read More: warroom.org
At Last, a Company With Integrity in the Gold IRA Industry
For several years, I’ve been vetting out precious metals companies in search of the best. I believe in gold and silver but it’s hard to find integrity in the Gold IRA industry. The vast majority operate with shady tactics and gigantic spreads that take advantage of Americans who simply want to protect their life’s savings.
I’ve found a handful that I like and I’ve worked with some of them. By no means would I “unrecommend” them because, again, I vetted them out and found them to be above the fold. Unfortunately, it isn’t hard to be better than the rest when the rest are so darn awful.
After years of searching, I finally found a company that truly operates with integrity. Augusta Precious Metals has three important attributes that set them far above the competition:
- Non-Commissioned Sales Team: I cannot stress how important and unique this is. With just about every other company in the Gold IRA industry, the sales teams make commission from every account they open. This means they steer their clients toward the gold and silver products with the highest commission. With Augusta Precious Metals, the team is solely focused on putting the best gold and silver for their clients into their IRA. They get paid to serve the best interests of the Gold IRA client, NOT their own commission pay.
- Incredibly Low Fees: Most Americans would be shocked if they knew the spread other Gold IRA companies charge. Augusta charges just 5% versus up to 45% elsewhere.
- No Pressure, No Gimmicks: There’s an understanding among most in the Gold IRA industry that fear and pressure is the way to go. Augusta Precious Metals takes a sober approach when working with clients because they hold integrity in the highest possible regard. This is why they don’t offer gimmicks like “free” or “bonus” silver. It’s also why they do not apply pressure tactics to get quick sales. Their educational and transparent approach to doing business is exceedingly rare in the Gold IRA industry.
