Zerohedge: The Trade War provides the perfect cover for the artificial global reboot conceived by the elites.
Author: Brandon Smith
Over the past few months, I have been exploring the underlying or ulterior motives behind the currently expanding Global Trade War, including the impressive level of cognitive dissonance surrounding this issue. The political left does not seem to have the slightest sensible understanding of economic issues.
I don't see any critical discussion from the left-wing media or financial experts, and the only reaction that is common to them is that they hope that the trade war will lead to a financial fall in the United States, so that no one is behind Trump. voted in 2020. Their wish may come true very well, but they seem to picture themselves celebrating at the end of the disaster, but I predict they will be so concerned about their own financial survival that they will not have time to celebrate …
The initial reaction in conservative circles to the trade war was, unfortunately, overconfident denial, with many refusing to call the situation a "trade war" at all, and some predicting the conflict would end before it began. Obviously, these assumptions turned out to be wrong.
Now that the recognition of the trade war as a reality has come, Trump's victorious fanfare is louder, and there is a blind enthusiasm for what they think will be victorious, no matter how long it takes. While the claims of the geopolitical team are in some way tempting, I find nothing in the facts and evidence to support America's victory in the global trade war. As I noted in my article, America's debt dependence makes it an easy economic target as long as the United States maintains historic levels of government, corporate and consumer debt, and as long as we depend on foreign investment in that debt, the adversaries in this trade war have all the ammunition they need.
The argument I now see is reviving over and over again, and it is that this trade war is indeed “going on for decades,” and only now we “have a president who can do something about it.” I don't know where this nonsensical meme started, but it's all over the place.
The US has not been involved in a trade war “for decades,” with China or any other country. She participates in a disruptive trading mechanism that benefits the elite on both sides of the world while the common people suffer. Only last year we saw the development of a "trade war", but even now it is a phased war that will once again expand the capabilities of international banks and the global elite.
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It's hard to argue with the longtime trade war meme when considering the facts. While China has been making good money on its goods in the US for years, this has been strictly backed up in exchange for Chinese investments in US government debt and the US dollar. In fact, it is absurd to argue that the US has been “at a disadvantage” in world trade when the dollar is used to facilitate nearly all international trade as the world's reserve currency. Dollar-denominated assets have been a safe haven investment for decades for this exact reason.
Back in 2008, during the initial stock market crash, media economists and some alternative economists continually argued that emerging market investors and foreign central banks would “never” retreat from the US markets because the “Royal Dollar” was the main safety net. during the financial crisis. It is clear that the United States enjoys a special advantage in world trade; namely the dollar, and this is the only advantage that has been fueling the American economy for many years.
The argument that foreign markets have swallowed up American production is also slightly flawed. As I have mentioned over and over again, American corporations are the true culprits in the bloodletting in American manufacturing plants as they have shifted the entire industry to cheaper labor markets. Trump could have stipulated that these same corporations would have to return some or most of this production to the United States before they receive tax cuts. He didn't. Instead, he gave them huge tax cuts for free, and much of the capital generated by those tax cuts had already been spent - not on increasing American jobs or innovation, but on corporate buybacks.
Tariffs on US goods sold by other countries are almost always pegged to the global US dollar reserve. Outsourcing of manufacturing jobs as well as technology jobs has always been associated with the US corporate drive for cheap labor. No, we have not been in a trade war for decades, quite the opposite.
So what has changed? Why are old agreements being abandoned? Is Trump really breaking the old world order and fighting the globalists, or is he just helping them lay the foundation for their “new world order”?
I would suggest that readers take a look at the International Monetary Fund's concept of a “global economic reset” to better understand why this is happening. I would also suggest that people pay close attention to George Soros's “predictions” back in 2009 about the future of the US economy.
The plan for this global reset seems to revolve around diminishing the US's role as a major economic power. This does not necessarily mean that the US will be replaced immediately. Instead, Soros suggests, countries like China will fill the void as "smaller economic engines." This is often called “harmonization,” but what it really means is that the standard of living for all but a select minority will be deliberately lowered to a common denominator, and what is more common today than poverty?
For many peoples, a low standard of living is the norm. For Americans, harmonization means we still have a long way to go. For the reset to take hold in the United States, globalists will have to adjust different populations differently to avoid an uprising.
Trump is lured by the notion of returning to a golden age with “Don” on his white horse. However, no president has the power to reverse the economic damage already done in the United States; the only solution is a long process of rebuilding the economy from scratch after the ash has settled. Any honest president who is not under the control of the banking cabal should have been blunt about this fact. Even in the best conditions of the Reformation, depression and currency crisis are assured. You cannot fight the math, and the math of US debt versus US inflation has been causing stagflationary volatility over the years, far beyond one or perhaps two of Donald Trump's conditions. When this reality finally hits the Trump administration, they will be furious.and foreign governments such as China will be the first scapegoats.
For representatives of the freedom movement, not necessarily in love with Donald Trump, the lie of the "multipolar world" was invented. Basically, we are being told that the death of the dollar would mean the death of globalist centralization, so we must support that outcome. In truth, there is no “multipolar world”. The IMF and the Bank for International Settlements continue to influence the central banks of the world, both in the East and in the West.
Given the calls by Russia and China for the IMF to become the devaluating controller of global monetary and trade policy, and even the call for a new global monetary system under the IMF's control, I see almost no indication that we are moving away from centralization if the American currency hesitates. In fact, we will see even more centralization if the globalists go their own way.
The key to the reset is undoubtedly the end of the dollar as the world's reserve currency. Without this status, the United States loses all economic trade advantages, as well as the advantage of perpetual monetization of debt. As the dollar's influence declines, inflation becomes a more pronounced threat domestically. A trade war will make the transition from the dollar possible and profitable for the international banking elites.
"De-dollarization" is already picking up steam as Russia and China strike deals to separate from the currency, while increasing financial cooperation using their own. What the proponents of the trade war do not understand is that the trade war with China is not just a trade war with China. As the world's No. 1 exporter / importer, if China chooses to dump the dollar as a global reserve, its trading partners can very well do the same to secure its own import / export relationship.
As the domino effect ensues, I believe the IMF will act as an “intermediary” to provide the basis for the new system, perhaps under a special basket of drawing rights, and likely lead to the global cryptocurrency system that the IMF recently praised as the next stage in the evolution of monetary and monetary policy.
Over the past six months, I have repeatedly mentioned that there has been a trend towards the Trump administration's behavior in the trade war. In particular, whenever the Federal Reserve raises interest rates or expands its balance sheets, Trump conveniently expands his tariff rhetoric.
When the Fed increases the balance sheet contraction, stocks take a hit of 1,000 points or more like clockwork. And like the clockwork, mainstream media blame Trump for the trade war stock plunge, not the Fed. I think that this trend will accelerate before the end of 2018 and that stocks will reach a critical rate of decline unless the Fed changes course. In my opinion, the Fed has no intention of changing course, because they prefer to see a major market crisis now.
But more than that, by simply providing cover for the Fed's controlled demolition, the trade war could also provide cover for the controlled dollar demolition, as numerous foreign creditors and trading partners turn America's greatest strength into America's greatest weakness.
The dollar itself is nothing more than an imaginary symbol; it is a tool for international bankers. And, like any tool, it can be replaced. The Trade War provides the perfect historical narrative for the dollar's end. The story told to future generations will be that the United States, emboldened by Trump's rhetoric and nationalism, fueled by dangerous ideas from "conservative populists", has collapsed into self-destruction and damaged the rest of the world in the process. The IMF and other institutions of globalism will go into effect, stating that no country should ever allow it to again own the world's reserve currency. They will then come up with a pre-planned solution to the very problem they originally created.
Regardless of how this global renewal plan works, engaging in the fervor of trade war rhetoric will harm our ability to prepare and fight against the true culprits of the US decline. Our rage will be mistakenly directed at the foreign economy instead of the banking elites who own the plan.