Like a powerful drug, the phony money corrodes and disfigures your economy. Your teeth rot; your brain shrivels.
So far, the big, fat, ugly Dow has sat on the wall and stubbornly refused to tumble. But last week, Donald J Trump gave Humpty a shove.
Trump is perhaps right pulling up China on years of predatory trade practices. Yet one area where things could unhinge comes in the form of China’s threat to curtail rare-earth exports.
Naturally, the foreigners are learning not to trust US suppliers…and are looking for essential inputs elsewhere. Win-lose again…with little chance that the US will be a winner.
China wants a deal, Trump can smell it! It’s why they’re printing yuan in the billions and pushing it out into the system.
Capitalists are conscious. They always try to get the outcomes they want…and they don’t mind cheating — when they can get away with it.
As Trump continues to starve China of dollars, the Middle Kingdom might become more desperate. China will either cave to America’s terms, or they will have to radically change how they do things.
Trump doesn’t seem to be backing down. He’s got more tariffs at the ready, expected to be launched by Friday. China, on the other hand, is putting on a brave face.
We give a Chinese company our fake money. It gives us a real TV set. How did we ‘lose’ money? And why is it any of Donald Trump’s business?
Bass says China has a whole lot of debt, is chock-full of bad loans. And with fewer American dollars reaching Chinese shores, the Chinese central bank has less firepower to prevent things from getting ugly.
We never expected the president to go Full Retard on his trade war. Instead, we thought he would settle the issue…as he did the trade war with Canada and Mexico…in some ongoing, negotiated mush.
Tax revenues, deficits, negative interest rates — it all goes to the same place: wherever the Deep State deciders want it to go.
We are watching, increasingly worried, as geopolitical dynamics change. Tensions are facing off, and the world could be dividing in two, a division akin to the cold war.
Untying the US economy from China is not possible. The relationship is sick…but symbiotic. The US provides the fake money. China provides the cheap stuff.
Government, always and everywhere, is a way for the few to exploit the many. Modern democracy depends as much on fraud as force. Elite conquerors pretend to respond to the ‘will of the people.’