July 25, 2018
from GlobalResearch Website
One of the reasons why it
has seemed so bizarre that the United States would engage in a trade
war with its largest creditor in China, is that China has a move
that the United States simply can't defend against.
Because that means China
would take a massive loss on its own position. And to the degree
that such an event would also have an impact on global economic
conditions, it's a nuclear option not to be exercised lightly.
This was part of an excellent article (China has Been Preparing for a Trade War for Over a Decade) by Brandon Smith of alt-market.com, and it's really worth reading and considering.
He raises a lot of points
that I have agreed with for a long time, and feel are not often
voiced as publicly as some of the other perspectives out there.
And hopefully when the
bubbles collapse, what rises from the ashes will be a monetary
system that serves the people, rather than the banking cartel.
I continue to remain fascinated to see how all of the events ultimately unfold.
And I agree with Brandon Smith, that whether it's ultimately used or not, China does have knockout punch to which the U.S. cannot respond.
by Brandon Smith
12 July 2018
from Alt-Market Website
While some core fundamentals remain the same no matter what occurs, the reporting of this data has been deliberately skewed to hide the truth.
But what is the truth?
Well, at bottom, the truth is that most economies around the world are far weaker than the picture governments and central banks have painted.
This is especially true for
I am of course speaking
All of these things fuel the notion that when a global fiscal disaster inevitably takes place, it will emanate first from China.
They also give the
American public the false impression that a trade war against China
will be easily won and that China will immediately falter under the
weight of its own veiled instabilities.
In fact, some of China's actions seem to suggest that the nation has been preparing for years for the exact geopolitical conditions we see today. It's as if someone warned them ahead of time...
In terms of prepping for a trade war with the U.S., China has implemented several important steps.
The argument that China is somehow dependent on U.S. markets and consumers in order to keep its economy alive is simply a lie.
China is now just as enticing a retail market as the U.S., and its domestic market can pick up some of the slack in the event that U.S. markets are suddenly closed to Chinese exports.
The problem of swiftly growing Chinese debt is presented often as the key argument against the nation surviving a global economic reset or trade war, with its "shadow banking" system threatening to unleash a long hidden credit crisis and stock market plunge.
But this is not the complete story...
The exact amount of fiat printing that China's central bank undertook after the 2008 crash is not known.
Some estimates calculate China's debt to now sit at around 250% of its gross domestic product. By normal standards this would suggest a credit crisis is imminent.
But was China's sudden interest in debt expansion a reactionary matter, or was it part of a bigger plan?
Just after 2008, a common argument against China's resilience was the notion that China was dependent on holding U.S. dollar reserves in order to keep its own currency weak.
Obviously this argument is no longer applicable, or outright absurd.
China's own debt expansion and Treasury bond issuance actually started way back in 2005 under the "Panda Bond" program.
At the time it was treated like a novelty or a joke by the mainstream economic community. Today, it is a powerhouse as Yuan denominated assets are spreading around the world.
China no longer needs to hold dollars or dollar denominated assets in order to keep its currency weaker for export markets. It can simply inflate and monetize its own debt, just like the U.S. does.
Perhaps because they know something we don't...
During the initial phase of the derivatives crisis, the possibility of China joining the International Monetary Fund's Special Drawing Rights basket leaped to the forefront.
With the Yuan as an SDR basket member, its potential to become a financial center for global trade rather than just an export and import hub would be assured.
But the IMF set certain requirements before China could join.
One of these requirements was far greater currency liquidity and a more "freely usable" Yuan market. In other words, for China to join the SDR basket they would first need to go into considerable debt.
This is exactly what they did:
China was officially included in the SDR basket in 2016.
China has been a very vocal proponent of the SDR basket system, and it becomes clear why if you understand what the globalists intend for the future of the world's monetary framework.
The article states that the U.S. economy and the role of the dollar as world reserve would have to be diminished, and that the IMF's Special Drawing Rights basket could be used as a bridge to set up a single currency for all the world's economies.
This currency would of course be administered and controlled by the banking elites at the IMF.
Since 2009, China's central bank has called for the SDR to become a "super-sovereign reserve currency," in other words, a global currency system.
In 2017, the vice governor of China's central bank stated that central banks should increase their use of the SDR as a unit of account and that greater SDR liquidity should be encouraged.
In 2015, China's central bank suggested that the SDR system should "go digital," creating a digital version of the reserve so that it could spread quickly.
It should come as no surprise that the IMF is in full agreement with this plan and has even suggested in recent articles on its website that cryptocurrencies and blockchain technology are the future evolution of the monetary system.
Notorious globalist George Soros revealed a few darker details (below video) of what the IMF calls the "global economic reset" in an interview in 2009...
These details included,
Finally, China has clearly been prepping for a considerable crisis in the dollar or in the world's economic stability as shown in its sudden and aggressive stockpiling of gold reserves the past decade.
An expanding gold stockpile would be an effective hedge against a collapsing dollar market. If the dollar loses its world reserve status, nations like China and Russia are placed well to mitigate the damages.
Considering the fact that the IMF officially holds around 3,000 tons of gold, the globalists are also well placed for a dollar crash.
It would appear that China has been included at many levels in the plan for the global reset. All of the previously mentioned actions suggest foreknowledge of a dramatic shift in the dollar model.
The trade war itself provides perfect cover for the economic reset, as I have been warning in my latest articles.
China would play an important role in the reset, as they have the ability to dump U.S. Treasuries and the dollar as world reserve, causing a chain reaction through global markets as their trading partners follow along in a domino chain.
They will likely do this quietly (as Russia recently did), in order to pawn off their T-bond holdings before news of a Treasury dump hits the mainstream.
The primary beneficiaries of this act will be the globalists (aka the Global Elite), while China has placed itself to survive (not necessarily to thrive) during the chaos.
The same cannot necessarily be said for the U.S., which suffers from the Achilles Heel of total dependency on the dollar's primacy...