U.S. Vs. China and C.Y.A. Society

United States vs. China, The Innovation Battle

Does it seem like the United States is no longer excelling like it once did? Mike Green and Louis Vincent Gave, CEO of Gavekal Research, discussed why C.Y.A. attitudes in government and corporations have become an anchor to western society. That anchor is allowing China to gain a foothold on the world stage – especially in the financial space.

Education is paramount to training your labor force to meet the needs of an economy. Gave and Green recognize that China is doing a far better job with their education curriculum – particularly at university. Those students are prepared for finance, science and technology. Comparatively, in the United States those fields are encouraged but too many leave with ‘French Medieval Literature’ degrees, as Gave puts it. This puts the U.S. at a disadvantage because students leave school only to enter a workforce that cannot pay them wages that match their education. Both Green and Gave attest there is not enough emphasis on skills education like electricians, plumbers, contractors or computer science & engineering degrees.

Comparatively, China has moved full steam ahead in the FinTech space.  AntFinancial could be off to a huge head start as China is one of the first movers in the Central Bank Digital Currency arena. By building digital currency apps for smart phones, they can provide an alternative to U.S. dollar conversion among international business. Transactions will be quicker and secure. 

Ant Financial is set to raise $34 billion through its IPO. It will start trading on Nov. 5 on the Hong Kong stock exchange at $10.32 and Shanghai stock exchanges at $10.27 on an undisclosed date.

Xi, The First Imperial President

Xi Jinping is the first outward looking president of China to start building bridges with other countries, Green and Gave feel. China has begun building trade routes to Africa, the Middle East and Europe. Hong Kong has become the financial capital of this new empire. Capital is flowing to their bonds as investors seek positive interest rates. 

Green and Gave have noted this situation is analogous to the personal computer wars of the new millennium.  Microsoft owned the market share of home computers. Apple, knowing they could not take on that behemoth, began targeting niche markets – schools, journalists, etc. They gained as much ground as they could, until they came up with a revolutionary technology: the smart phone.  This parallel might explain what is going on in the U.S. vs. China rivalry. The Chinese knew they could only make so many inroads in the current market, but as the world moves to digital currency, they will be well positioned to grab market share when the shift occurs. 

“China is creating a parallel system so that you no longer need to use the US dollar if you don’t want to, Gave stated. “And just like the smartphone was easier to use than a PC, these payment systems are going to be easier to use than the Swiss system. And that’s a massive game changer.”

The CoronaVirus Accelerant

The COVID 19 pandemic didn’t change the nature of our society – it accelerated the changes that were already underway. Technology was already in place to allow remote, work-from-home capabilities. The United States adapted very quickly to this new normal. It has also exposed many of the flaws in the educational sector and other areas that have been a drag on society.

“If we move to the world that you’re describing, where effectively the tradable sector collapses in terms of its global reach, and suddenly we actually are forced to reallocate resources into the non-tradable sector to make it more efficient, we’re looking at potential revolutions that are the equivalent of Webster’s introducing his schoolbooks and standardizing the educational process across the United States,” Green opined. 

Gave agreed and believes that many of these seismic shifts in the economy could put a renewed focus on education for productive careers in manual labor and science. This could lead to an improved global growth rate, something they are both very concerned about if a C.Y.A. society has been gaining ground.

C.Y.A. Society

This is a grave area of concern for Green and Gave. The C.Y.A. attitude has permeated into many areas of society in their view. From the handling of the COVID pandemic to the investment world, they both feel that risk aversion has become the norm.  

Some people have griped that the shutdowns as a result of the virus were a power grab by the government. Gave thinks that is incorrect and feels this was a policy decision by lawmakers who are afraid of backlash, if they made a mistake. Both he and Green think that same mentality has permeated into the investment world. 

Money has increasingly shifted towards passive investing. Many funds have shifted towards index weighting and there are fewer managers with innovative ideas to outperform the market.  Major funds are afraid to pick the wrong manager for fear of the backlash and are risk averse. This has greater problems as capital flows towards the biggest stocks like Apple and Microsoft – who don’t need the money and simply use the excess to buy back shares. 

Both believe this behavior has been a contributor of a society of haves and have nots. While they are concerned, they are optimistic that recognizing these issues, in addition to the shifts we are currently confronted to face, will lead to positive outcomes. 

For more on U.S. vs China Relations, check out one of Mike Green’s prior interviews with Marco Papic. (Watch for Free) To understand more about how digital currency is upending traditional finance, watch Raoul Pal’s interview with Simon Dixon. (Watch for Free)


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Mark Yusko

Morgan Creek Capital Management, Co- Founder, CEO, & CIO

Mark Yusko is the Founder, CEO and Chief Investment Officer of Morgan Creek Capital Management. He is also the Managing Partner of Morgan Creek Digital Assets.

Morgan Creek Capital Management was founded in 2004 and currently manages close to $2 billion in discretionary and non-discretionary assets. Prior to founding Morgan Creek, Mr. Yusko was CIO and Founder of UNC Management Company (UNCMC), the Endowment investment office for the University of North Carolina at Chapel Hill. Before that, he was Senior Investment Director for the University of Notre Dame Investment Office. Mr. Yusko has been at the forefront of institutional investing throughout his career. An early investor in alternative asset classes at Notre Dame, he brought the Endowment Model of investing to UNC, which contributed to significant performance gains for the Endowment. The Endowment Model is the cornerstone philosophy of Morgan Creek, as is the mandate to Invest in Innovation.

Mr. Yusko is again at the forefront of investing through Morgan Creek Digital Assets, which was formed in 2018. Morgan Creek Digital is an early stage investor in blockchain technology, digital currency and digital assets through the firm’s Venture Capital and Digital Asset Index Fund.

Mr. Yusko received a BA with Honors from the University of Notre Dame and an MBA in Accounting and Finance from the University of Chicago.

Anthony Scaramucci

SkyBridge Capital, Founder & Co-Managing Partner

Prior to founding SkyBridge in 2005, Scaramucci co-founded investment partnership Oscar Capital Management, which was sold to Neuberger Berman, LLC in 2001. Earlier, he was a vice president in Private Wealth Management at Goldman Sachs & Co. In 2016, Scaramucci was ranked #85 in Worth Magazine’sPower 100: The 100 Most Powerful People in Global Finance. In 2011, he received Ernst & Young’s “Entrepreneur of the Year –New York” Award in the Financial Services category. Anthony is amember of the Council on Foreign Relations (CFR), vice chair of the Kennedy Center Corporate Fund Board, a board member of both The Brain Tumor Foundation and Business Executives for National Security (BENS), and a Trustee of the United States Olympic & Paralympic Foundation. He was a member of the New York City Financial Services Advisory Committee from 2007 to 2012. In November 2016, he was named to President-Elect Trump’s 16-person Presidential Transition Team Executive Committee. In June 2017, he wasnamed the Chief Strategy Officer of the EXIM Bank. He served as the White House Communications Director for a period in July 2017. Scaramucci, a native of Long Island, New York, holds a Bachelor of Arts degree in Economics from Tufts University and a Juris Doctor from Harvard Law School.

Michael Saylor

MicroStrategy, Co-Founder

Mr. Saylor is a technologist, entrepreneur, business executive, philanthropist, and best-selling author. He currently serves as Chairman of the Board of Directors and Chief Executive Office of MicroStrategy, Inc. (MSTR). Since co-founding the company at the age of 24, Mr. Saylor has built MicroStrategy into a global leader in business intelligence, mobile software, and cloud-based services. In 2012, he authored The Mobile Wave: How Mobile Intelligence Will Change Everything, which earned a spot on The New York Times Best Sellers list.

Mr. Saylor attended the Massachusetts Institute of Technology, receiving an S.B. in Aeronautics and Astronautics and an S.B. in Science, Technology, and Society.

Alex Saunders

Nugget's News, Founder & CEO

Alex Saunders is the founder and CEO of Nugget’s News, a digital media company focused on all things crypto. Alex has been captivated by cryptocurrency since 2012 and in 2017 he began educating globally on the benefits of cryptocurrency and how to safely acquireit. Nugget’s News has been listed as a top-20 podcast by Business Insider, ShapeShift and Lifehacker and has over 120k YouTube subscribers with 9 million total views.Alex is also heavily focused on his cryptocurrency education platform Collective Shift which currently serves over 4,500 members. provides his unique perspectives by utilising his expertise in fundamental analysis, technical analysis and market sentiment. He is working towards his mission of making it easier for everyone to understand the financial world.

James Putra

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James helped launch TradeStation Crypto’s offering which utilizes a true online brokerage model that self-directed investors and traders have come to expect for equities, futures, and foreign currency markets. He is a reputed crypto asset specialist and blockchain thought leader focused on helping people find innovative ways to participate in this space. He is active in the blockchain community with speaking engagements, TV appearances and mentoring. James has over 15 years of experience in the Fintech industry.

Raoul Pal

Real Vision, Co-Founder & CEO

Raoul Pal is the Co-Founder and CEO of Real Vision, the world’s pre-eminent financial media platform, which helps members understand the complex world of finance, business, and the global economy.

Real Vision members also have access to Real Vision Crypto, a cryptocurrency and digital assets video channel watched by over 80,000 people. In addition, Raoul has been publishing Global Macro Investor since January 2005 to provide original, high quality, quantifiable and easily readable research for the global macro investment community hedge funds, family offices, pension funds and sovereign wealth funds. It draws on his considerable 31 years of experience in advising hedge funds and managing a global macro hedge fund. Global Macro Investor has one of the very best, proven track records of any newsletter in the industry, producing extremely positive returns in eight out of the last twelve years.

He retired from managing client money at the age of 36 in 2004 and now lives in the tiny Caribbean island of Little Cayman in the Cayman Islands. Previously he co-managed the GLG Global Macro Fund in London for GLG Partners, one of the largest hedge fund groups in the world. Raoul moved to GLG from Goldman Sachs where he co-managed the hedge fund sales business in Equities and Equity Derivatives in Europe. In this role, Raoul established strong relationships with many of the world’s pre-eminent hedge funds, learning from their styles and experiences.

Other stop-off points on the way were NatWest Markets and HSBC, although he began his career by training traders in technical analysis.

Peter McCormack

What Bitcoin Did, Journalist

Peter McCormack is a full time journalist/podcaster covering topics such as Freedom, Human Rights, Censorship and Bitcoin. Peter created and hosts the What Bitcoin Did Podcast, a twice-weekly Bitcoin podcast where he interviews experts in the world of Bitcoin development, privacy, investment and adoption. Launched in November of 2017, the podcast has grown to over 100 episodes with a guest list that is a testament to the diversity of knowledge and opinions that represent the broader Bitcoin community. Expanding his growing list of human interest recordings, documentaries and films Peter has recently launched the Defiance podcast and DefianceTV.

Caitlin Long

Avanti Financial Group, Founder & CEO

22-year Wall Street veteran who has been active in bitcoin and blockchain since 2012. In 2018-20 she led the charge to make her native state of Wyoming an oasis for blockchain companies in the US, where she helped Wyoming enact 20 blockchain-enabling laws. From 2016-18 she jointly spearheaded a blockchain project for delivering market index data to Vanguard as chairman and president of Symbiont, an enterprise blockchain start-up. Caitlin ran Morgan Stanley’s pension solutions business (2007-2016), heldsenior roles at Credit Suisse (1997-2007) and began her career at Salomon Brothers (1994-1997). She is a graduate of Harvard Law School (JD, 1994), the Kennedy School of Government (MPP, 1994) and the University of Wyoming (BA, 1990).

Hunter Horsley

Bitwise Asset Management, CEO

Hunter Horsley is Chief Executive Officer of Bitwise Asset Management. Prior to Bitwise, he was a product manager at Facebook, working on advertiser products including the multibillion-dollar sponsored content ecosystem and ad breaks in videos. Before Facebook, Horlsey was a product manager at Instagram, responsible for multiple advertising products generating several hundred million dollars of revenue. He is a graduate of the Wharton School at the University of Pennsylvania, with a B.S. in economics. Recently, Horsley was named a member of Forbes’ 2019 “30 Under 30” list.

Luke Gromen

Forest For The Trees, Founder & President

Luke Gromen has 25 years of experience in equity research, equity research sales, and as a macro/thematic analyst. He is the founder and president of macro/thematic research firm FFTT, LLC, which he founded in early 2014 to address and leverage the opportunity he saw created by applying what clients and former colleagues consistently described as a “unique ability to connect the dots” during a time when he saw an increasing “silo-ing” of perspectives occurring on Wall Street and in corporate America.

FFTT caters to institutions and sophisticated individuals by aggregating a wide variety of macroeconomic, thematic and sector trends in an unconventional manner to identify investable developing economic bottlenecks for his clients. Prior to founding FFTT, Luke was a founding partner of Cleveland Research Company, where he worked from 2006-14. At CRC, Luke worked in sales and edited CRC’s flagship weekly thematic research summary piece (“Straight from the Source”) for the firm’s clients. Prior to that, Luke was a partner at Midwest Research, where he worked in equity research and sales from 1996-2006. While in sales, Luke was a founding editor of Midwest’s widely-read weekly thematic summary (“Heard in the Midwest”) for the firm’s clients, in which he aggregated and combined proprietary research from Midwest with inputs from other sources.

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CoinShares, Chief Strategy Officer

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Previously, she was part of the founding team of Digital Currency Group. As a veteran investor in the digital currency space, she has invested in over 250 companies in the ecosystem.

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