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The current world hegemon, the United States of America, although still flaunting its power globally on the surface, is gradually revealing its internal issues. This has led more and more Americans to become aware of various societal injustices. Meanwhile, people in other countries have also been increasingly dissatisfied with America's recent conduct and behavior, losing respect and confidence in it. Today, let's delve into the deeper issues within the United States!

Is the Federal Reserve, the central bank of the United States, a state-owned bank?

In the U.S., most people believe the Federal Reserve is a national bank and a federal government department. This is a significant misconception. Indeed, the Federal Reserve plays the role of the central bank in the United States, but do the U.S. government and the public own it? The answer is no.

The Federal Reserve was established in 1913 through the meticulous efforts of Paul Warburg, a capable assistant under the Rothschild family, Europe's Jewish big bankers. They successfully brought the model of the privately owned Bank of England to the United States. Thus, the Federal Reserve is a completely privately owned central bank in America, with its shareholders being wealthy bankers. Although privately owned, the Federal Reserve fully controls the issuance of U.S. dollars. To issue dollars, the U.S. Department of the Treasury must provide Treasury securities to the Federal Reserve in exchange for an equivalent amount of dollar bills (or the current electronic dollars). This is why every bill bears the words "Federal Reserve Note."

We all know that U.S. Treasury securities must make interest payments, meaning the Federal Reserve can earn significant amounts of interest with the dollars it prints without any cost (the actual printing is done by the Bureau of Engraving and Printing under the Treasury Department). Who pays this interest? Naturally, taxpayers like you and me! As of now, the Federal Reserve holds nearly $4.5 trillion in U.S. government securities, which is 13% of the total government securities issued by the U.S. government. Every year, the U.S. government (i.e., taxpayers) must pay the Federal Reserve approximately $91 billion in interest.

Politicians Manipulated by Money

James Rothschild, the fifth son of Mayer Rothschild, once controlled the French financial market and established the Rothschild Bank in Paris. In 1815, Napoleon remarked: "When a government relies on the money of bankers, it is the bankers who control the situation, not the leaders of the government. The hand that gives money is always above the hand that takes it. Money has no homeland. Financiers know neither patriotism nor decency; their sole objective is profit."

American politicians, whether Republican or Democrat, exemplify Napoleon's words, or even exceed them! In recent months, numerous student protests have erupted on American college campuses against the massacre of innocent Palestinian civilians by Israeli forces. The measures taken by American politicians against protesting students clearly show that they serve their financial backers. Notable examples include Speaker of the House Mike Johnson and Texas Senator Ted Cruz. These big bankers not only control the financial industry but also use their financial power to manipulate elections at all levels in the U.S., from the president to senators and congressmen, and from state governors to state legislators. This is the current state of American politics!

Why is the U.S. National Debt Always High?

National debt (or surplus) = Government revenue - Government expenditure.

First, let’s look at revenue. The primary source of federal revenue in the U.S. is individual/family income tax. According to Cox Business School Dean Niemi of Southern Methodist University: "The hardest hit and highest taxed group is the middle class because they have no tax shelters. They only have wages and salaries taxed at rates of 25%, 28%, 33%, 35%, or soon 39.6%."

The highest U.S. personal income tax rate dropped from 70% in 1964 to 50% in 1982 during President Reagan's eight-year term, and to 28% in 1988, his final year in office. It now stands at 37%. Corporate tax rates dropped from 46-48% in 1981 to 34% in 1986 (during Reagan’s term), increased to 35% in 1993 (during Clinton’s term), and fell to 21% in 2018 (during Trump’s term). These figures show that tax rates for the wealthy and corporations have significantly decreased, naturally reducing national revenue.

On the expenditure side, apart from increased domestic spending, two wars have forced the U.S. government to increase its spending. Since February 2022, supporting Ukraine's proxy war against Russia has cost $17.5 billion, with no end in sight. Looking at the Middle East, since the outbreak of the Israel-Palestine conflict in October 2023, the U.S. deficit has surged again. U.S. financial aid to Israel has reached $12.5 billion. Currently, the U.S. government debt is rising at a rate of $1 trillion every 100 days. The Federal Reserve, which controls U.S. finance, seems to be covertly allowing the government deficit to grow year by year, forcing the U.S. government to issue more Treasury Securities, parts of which are exchanged with the Fed, turning into cash in the government's hands, enabling Fed bankers to reap huge profits!

Looking specifically at the U.S. deficit, in 2023, government revenue was $4.44 trillion, expenditure was $6.13 trillion, and the deficit was $1.69 trillion, about 6.3% of the U.S. GDP. The U.S. Treasury must issue securities to cover this $1.69 trillion deficit, but due to the declining credibility of the U.S. government in recent years, about 30% of bonds are unsellable. Recently, U.S. Treasury Secretary Yellen visited China, intended to sell U.S. Treasury securities, but to no avail. If these securities must be sold, they can only be sold to the Fed, which then issues an equivalent amount of cash. The increase in cash supply will inevitably exacerbate inflation, worsening the U.S. economy. Shopping for daily necessities at supermarkets, we feel that inflation is still rising, and some businesses are taking advantage of this opportunity to raise prices for higher profits.

Wealth Polarization

The influence of financial conglomerates has rendered U.S. antitrust laws, which restrict mergers between large companies, ineffective. Wealth concentration is increasing, with the top 1% of earners now owning about 30.6% of U.S. assets. The degree of wealth polarization is worsening, with over 600,000 people homeless across the country.

The End of the Petrodollar

On June 9 this year, Saudi Arabia announced it would not renew the petrodollar agreement, ending the 50-year era of the petrodollar since 1974. This is expected to reduce the use of the dollar in international trade significantly. More fundamentally, the dollar will no longer be anchored by any valuable physical commodity, shaking its reliability.

The U.S. hegemony rests on the dollar, the military, and the media. As analyzed, the dollar is on a decline. Without substantial government funding, the U.S. military will have to reduce numerous overseas bases, unable to suppress other countries or create wars at will. The media has also been exposed for its false reporting by self-media. TikTok's revelations of Israeli atrocities in Gaza are why it is being banned; it touches the core interests of the big bankers.

As someone concerned about the U.S. and world affairs, what changes do you think the U.S. should make to rectify these internal systemic injustices?



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Taiwan’s future has a complex causal relationship that seems inseparable from Sino-US relations. At present, Sino-US relations have become very tense. The United States has turned from vigilance to worry and even fear about the rise of China. Therefore, the US policy towards China has changed from a deliberately vague policy in the past to a clear anti-China policy. Currently, the U.S. has used various methods, from economic and trade sanctions to military and technological suppression. It can be said that it has done everything possible. The Taiwan issue has also become a pawn in the ambiguous US-China policy. When the US President uses the Cold War mentality of dealing with the Soviet Union to deal with the developing China, the US main purpose seems to be to maintain its position as a world hegemon, and it is unwilling to see that China’s rise will affect its leadership and control of the world. This idea of ​​putting U.S. interests first and U.S. security considerations as the most important is the consistent foreign policy and defense policy of the United States. For example, in the early years, the U.S. suppressed the economic revival of Germany and Japan (too fast catching up behind the U.S.), and in recent years, it used the North Atlantic Treaty Organization (NATO, led by the U.S.) to recruit member states to expand its sphere of influence. These were all behaviors and purposes of maintaining U.S. hegemony. The ostensible purpose of establishing NATO was to help European countries resist the expansion of the Soviet Union. However, after the Soviet Union collapsed due to economic failure in 1991, NATO not only did not disband but continued to expand, encircling and threatening Russia. This resulted in today's Russo-Ukrainian war. There are many ethnic Russian people in Ukraine, but the Ukrainian government suppresses the ethnic Russian people and wants to join NATO ignoring Russia's warning.
 
What caused the war in Ukraine and consumed Russia's national resources was the US’s consistent policy of maintaining its hegemony. Nowadays, China's rapid economic rise makes the U.S. uneasy, so it uses various means to suppress China. When the suppression does not yield obvious success, it actively begins to establish an anti-China alliance (AUKUS-the U.S, Britain, and Australia and QUAD+ - the U.S., Japan, Australia, India, etc.) and uses Taiwan like Ukraine to launch a protest against China and wage a war. Driven by this policy, Taiwan's status or the cross-strait relations have become very tense. The British Economist even advocates that Taiwan is the most dangerous place on earth, and there is the possibility of mainland China attacking Taiwan with force to achieve reunification. However, since Japan surrendered in WW II and returned Taiwan to China, the cross-strait confrontation caused by the Chinese Civil War has now been seventy-nine years. What contradicts Taiwan being a ticking bomb story is that since the founding of the People's Republic of China (1949), there has been no war on the main island of Taiwan, except the Kinmen Artillery Battle which took place on the outer island on August 23, 1958, the trade between mainland China and Taiwan is closely complementary, giving Taiwan a surplus of $80.55 billion in 2023. Although the mainland will not give up reunifying Taiwan, military reunification is not its preferred option unless it is forced, such as allowing foreign countries to station troops in Taiwan or declaring Taiwan independence. Reunification with Taiwan by force is completely inconsistent with the interests of both sides. It also goes against the historical mandate of China – one Chinese nation.
 
Against the above background, let us discuss a few central issues: Whether Taiwan know what kind of future it wants? How does Taiwan control its future? Can Taiwan independently determine its future? Under the influence of liberal democratic ideas, Taiwan has adopted the universal electoral system and inherited many of its shortcomings, such as the inability to select talented and capable people (performers who can speak or lie well to get elected), and the inability to assess and hold accountable the elected officials (voters do not have the power of direct supervision), thus Taiwan's society is following a path of pluralism and division (Different parties fighting for power, and fellow parties protecting shortcomings). In a divided society, it is impossible to create a consensus that can truly guide Taiwan's future. Instead, Taiwan struggles with differences and lives in confusion day by day. Currently, there are many different theories promoting Taiwan's demand for independence, but there are also some analyses based on realistic judgments that independence is impossible and will lead to a cruel war with failure. In the ambiguous political environment (under the island's political intrigues and foreign interference), Taiwan's future has become ambiguous and dangerous. Based on careful analysis, Taiwan can only choose to reunify with the mainland, and other paths will only bring treacherous uncertainties to Taiwan with the consequences of losing its ability to shape its future - an outcome that is very unfavorable to the Taiwanese people and their descendants. First, choosing independence is a dead end. Mainland China not only has a historical mission to unify with Taiwan, but under real geopolitical pressure from the U.S, Japan, South Korea, and the Philippines, China also has no choice but to save the compatriots on both sides of the Taiwan Straits for maintaining its independence and self-respect as the Chinese nation on earth. However, unification must be supported by most of the Taiwan people with the understanding of what true (independent) democracy is. Being independent in name but not independent on foreign policy and international affairs is not a true independent democracy but a colonial state. The people of Taiwan must be able to form a consensus on reunification (without foreign influence), accept the challenges of reunification (working towards true independent democracy), strive for benefits (dividends that can be obtained through competition with reunification), and achieve a better future for themselves and their descendants. 
 
Why is Taiwan’s move toward 'independence' a mistake? This is a question that is not difficult to answer. Is Japan, South Korea, or the Philippines independent? They are all chess pieces held under the thumb of the U.S. for dealing with China. Even if China collapses, they will still be pawns of the U.S. The U.S. military presence, like NATO's U.S. military force, remained after the collapse of the Soviet Union. Japan, South Korea, and the Philippines have no independence or autonomy at all in foreign affairs. Will Taiwan achieve better results than Japan, South Korea, or the Philippines if it takes the road of 'independence' endorsed by the U.S.? Judging from reality (economically and militarily), China's rise will continue, and the days of US permanent hegemony are numbered. The rise of China will allow its neighboring countries to have real independence and true democracy. Singapore, Malaysia, Indonesia, Pakistan, and other neighboring countries are obvious examples. Taiwan's development has always been in the shadow of Japan and South Korea. If Taiwan had not had the same culture and language as mainland China, would it have benefited so much in trade? Therefore, Taiwan's pursuit of fake independence is a mistake.
 
Under unification, not only can Taiwan enjoy dividends, but Taiwan also can pursue true independent democracy, together with the mainland, and improve the national system. As the people of mainland China and Taiwan become more economically equal, they will pursue the same independent democracy, and it will never be an involuntary fake democracy.
 
The Chinese nation is a peace-loving family of 56 ethnic groups, including Taiwan’s ethnic minorities. During the five thousand years of cultural evolution, Chinese culture has accumulated profound academic theorems and folk understanding of political governance, social ethics, and the value of family inheritance. Therefore, people are above all, and the people are like water. They can carry a boat or capsize it (meaning government). What the people want is to live and work in peace and contentment, and what they expect from the government is protection and public service. To follow its path and establish its system is not a slogan for China but an ever-learning way that suits the Chinese people. One country - two systems (or multiple systems) is China’s code for patient exploration, reform, and innovation in governance. As a world power with a population of more than one billion, it loves peace, seeks collaborative development and common prosperity, proposes the concept of human community with a shared future for mankind, and implements the blueprint of jointly building infrastructure (the Belt and Road Initiative) to pursue world peace, prosperity, and ultimately world harmony - An ideal worthy of common pursuit by mankind. How could Taiwan give up such ideals, pursue involuntary independence, abandon the peace-loving genes inherited by its people, and give up the bright future that peaceful reunification will bring to its descendants? Now Taiwan is at a critical juncture, Thoughtful people must be committed to awakening the people to understand the true meaning of the above-mentioned reunification. Reunification is not about selling out Taiwan, but about seeking happiness for future generations. Seeking nominal 'independence' is not about a true independent democracy but about the selfishness of politicians to preserve their official titles, positions, and powers with no regard for the future of the Taiwanese people. The people of Taiwan and Mainland China should think clearly about the meaning of reunification to pursue unification!
 

Dr. Wordman, US-China Forum Bilingual Columnist ​

 
Abstract
Pursue Independence has impossible hurdles while accepting peaceful reunification requires most of the Taiwan people to truly understand the real meaning and advantages of One Country for Two Shores. Taking a realistic assessment based only on the interests of the Taiwanese people, the choice is peaceful reunification.
 

5. The above four analyses often get twisted by emotional arguments not constructive for unifying people's positions. The following analysis is purely based on the consideration of Taiwan's interests. With no argument, the people in Taiwan love peace and hate war. What they desire is economic prosperity and happiness for their descendants. So based on this principle and self-interest point of view, we can derive the following arguments to support peaceful reunification:
 
    (I) National defense, military spending, and diplomacy - As an independent Taiwan, it will likely fight wars on its turf requiring a significant military force and budget. To acquire armaments, it must pay huge commissions only to get second-class weapons from other nations. Taiwan must train soldiers to take a high risk in experimenting with foreign weaponry as well as to suffer high casualties in battles. Experience of spending money buying diplomatic recognition from a few small countries showed that such high-cost diplomacy (in tens of billions) yields little benefit for Taiwanese people other than keeping a few diplomatic offices. South Korea, Japan, the Philippines, and Ukraine, are all nominally independent nations, but they are diplomatically bound like pawns in a chess game. Is this the goal of Taiwan's desperate struggle for independence? Is claiming independence just for keeping a country title and a set of government positions for officials worth the risk of war and crushing the economy?  Will the people of Taiwan have a future and their children and grandchildren be happy?
 
   (II) Economy, foreign trade, and cultural development - Taiwan can’t escape from the mainland's huge market better than South Korea, Singapore, and Japan can. Why would Taiwan run away from the Mainland market in the first place? Are the nation title and a few official positions more important than trade surplus and prosperity for people? Will Independence guarantee future generations their good lives and proud global citizenship? Can cutting off Chinese cultural roots and creating an independent Taiwanese culture ever be possible? Can Taiwanese people bear the consequences of forgetting and abandoning their ancestors? Korea and Japan have not been able to get rid of Chinese characters (literature) and Chinese culture and customs for hundreds of years, is denying the cultural tie meaningful? Do the people of Taiwan want to forget their roots? 
 
     (III) Mentality of the people and government on both sides of the Taiwan Strait - Mainland people love their Taiwan compatriots. But as the economy, diplomacy, and military are gradually becoming stronger, they have become more confident, especially young folks. The older generation has turned from love to hate as Taiwan shows anti-China sentiment. Young people in the Mainland are simply surprised and puzzled. Is this the outcome the Taiwan people want? The mainland government maintains a firm conviction on reunification and extreme patience. Therefore, the Mainland welcomes all Taiwanese people and party politicians; they maintain that anything can be discussed if it is not anti-China and is accepting the one-China principle for pursuing mutual benefit and progress. Best let the wisdom and time work out a peaceful reunification. This attitude has persisted in the Mainland for 75 years and has not changed as China grew stronger. This attitude remained the same despite the U.S. increasing its tricks of suppressing China – lately applying all measures possible, including using Taiwan as a pawn to prevent China's rise. Does Taiwan want to be a pawn in the future?
 
In the name of democracy and freedom, the Taiwan government has gradually deviated from its principles and resorted to tricks to fool the people (voters). Taiwan's government has shifted from the Three People's Principles (government serves and benefits the people) to safeguarding the interests of government officials with power, lying, cheating, and deceiving the people. The current ruling party, DPP, accepts favors and profits from the mainland in trade but shows no desire nor sincerity for reunification. It lies and cheats the people to gain votes and ignores the fact that the mainland is gaining international prestige and patiently waiting for peaceful unification. The people on two sides of the Taiwan Strait share many cultural similarities but the DPP is mounting a De-Chinese effort from education to social policies. However, the Taiwan people will not be fooled forever. With communication and interactions, people are waking up to the facts. Most people in Taiwan do not care about international and world affairs. They are content within their spheres and fortunes. Taiwanese businessmen used to be busy making money from/in the mainland for good profit and remain vague about reunification, but now they must adopt a correct position since the strained US-China relations are forcing China to resolve the Taiwan issue sooner rather than later. Taiwanese businessmen saw the rise of mainland China and had to accept the reality and predictions brought by facts. Those who are pro-China and anti-China must now take a clear stand. Singapore, Malaysia, Vietnam, and Indonesia have all taken a stand wisely. It’s time that Taiwanese people will do so!
 
Conclusion – Two Countries on Two Shores is never as good as One Country on Two Shores.
 
When the two sides of the strait are one country, the Chinese people on both sides will be respected all around the world. Opportunities for mutual benefit for the people on both sides will greatly increase, such as education, employment, entrepreneurship, making friends, traveling, recognizing each other's ancestors, flourishing Chinese culture and virtues, complementing each other, and improving world harmony. On the contrary, if two countries were on two sides of the Taiwan Strait, strained tension would result. Japan and China, South Korea and China, India and China, and India and Pakistan are living examples of tension. It is better to unify the two sides than to take the difficult road of seeking an unrealistic independence.
 
There are so many practical reasons, small or big, we can cite for a reunified China. First of all, the people will benefit from international communications (Inter-operation of Line and WeChat and usage of Beidou maritime navigation), increased educational opportunities and employment possibilities, prevention of financial fraud, and participation in and hosting international activities, (note: G7's support for Taiwan’s 'meaningful participation in international organizations' means that Taiwan is not a nation.). People on both sides of the Taiwan Strait will enjoy more business opportunities, money-making, and investment opportunities. Traveling (enjoying delicious food and beautiful scenery), spending retired life for the elderly, returning to one's roots, and worshiping ancestors are all rights available to people on both sides.
 
“China will pursue unlimited expansion” has no basis or logic. It is also wrong to say that China has the same hegemony and exceptionalism concepts as the U.S. does. China's rise is not a premeditated plot nor an ambitious design. It is simply the hard work of the people and the right policy of the government and society that values jobs more than profits and believes in win-win cooperation to promote peace and prosperity. The U.S. and China are two great nations, their relations will eventually improve, and Taiwan's future will be clear. Realistic observation can predict that the direction of U.S.-China relations will change from tough to stable, relaxed, cooperative, and conciliatory. Correspondingly, China will gradually change from resisting to firm, patient, cooperative, and conciliatory to welcoming collaboration. Taiwan's future currently seems to be uncertain and worrisome. However, if ordinary citizens want to control their future, they will wake up, recognize the reality, and actively participate in cross-strait exchanges, and they will not be deceived for long.
 
One country for two shores will give the people on both sides the opportunity to learn from each other and make progress together on the meaning of true democracy. They will allow the government the opportunity to adopt the good and eliminate the bad and to govern the country respecting people like heaven. Predictably the Sino-US relations will normalize as both accept reality and the Taiwanese people will wise up. The U.S. and China will use their resources and follow the path of fair competition between two great powers under a balanced system of capitalism/market and socialism/human rights.