Brandon Smith for Alt-Market
The US/China conflict has the potential to become an economic world war, with multiple countries beginning to take sides. Japan and the UK have opted to support US interests, which is not surprising since China and Japan have hated each other for generations and the US is the UK’s strongest economic partner in the wake of the Brexit. Already some people are declaring this to mean that the US will gain the majority of global support and crush China.
But keep in mind, as I outlined and evidenced in my recent article ‘America Will Lose The Trade War Because That Is What Globalists Want To Happen’, the trade war itself is a farce on both sides of the Pacific, as both China and the US are controlled by the same financial power centers (such as the Bank for International Settlements).
The fact that some people are jumping on the patriot bandwagon to cheer for expanded confrontation with China as if a globalist engineered war is a war we can “win” is disturbing and sad to witness.
My suspicion is that there is a concerted disinformation campaign in play on the internet to drum up the false impression of consensus support for the trade war while the activities of the real villains (the international banks) are ignored.
As this Kabuki theater moves forward, I think many analysts will find themselves shocked as more and more nations start taking China’s side in the conflict.
The most powerful option China has at its disposal is the dumping of US Treasuries and the dollar as the world reserve mechanism, but it is likely to use this tactic only when the US economy is at its most unstable. China is the number one exporter/importer in the world and the US consumer is ready to tap out as retail numbers stumble and household debt skyrockets. The US market is only 18% of Chinese exports, a sizable piece of the pie, but hardly a devastating blow to the Chinese economy should it be denied to them.
The bottom line is that China will ultimately dictate global trade terms as they possess the largest manufacturing base, they decide what currency they will accept, and whose debt they will prop up. China has also established very close economic ties with key nations over the past decade, including Russia, Germany, India, Australia, and even Saudi Arabia. Do not be surprised if most if not all of these nations eventually support China in the trade war, dropping the dollar as the reserve currency and following China’s lead.
China has yet to fully retaliate against the latest increase in US tariffs. When it does, the attack will be far larger than cutting off purchases of US agricultural goods. The next escalation could be the trigger than sends the crash into overdrive.
In the longer term complete destabilization of the Middle East would result, well beyond what we have already seen, and the costs to taxpayers as well as the cost in American lives would be high. Beyond this, the distraction would be epic and very effective. This event coupled with the trade war would fulfill the globalist narrative that the Trump Administration and the conservatives that support him are a “menace” to global stability. Any financial crash at that point would undoubtedly be blamed on Trump as well as his supporters.
Currently, the mainstream media is very quiet on the Iran situation despite the sudden shift of US military resources to the region, which leads me to believe that a conflict is being planned in the near term.
The final plot twist the elites need in the EU, I believe, is a no-deal Brexit. I predict the Brexit will conclude and that the UK will indeed break with the EU. The latest announcement of Theresa May’s resignation seems to indicate that this will be the case, and that a no-deal scenario is the most probable scenario. The EU has publicly stated that there will be NO renegotiations of the Brexit deal after May leaves. Sovereignty activists will cheer the Brexit outcome, and then things will start to go horribly wrong. European markets will tank and certain major banks (Deutsche Bank and Italian majors?) will announce insolvency. The panic felt in 2008 will return and hit the EU and the UK hard, and the Brexit movement will get the blame while central banks escape any culpability.
Only one of these events is needed to initiate the next stage of economic collapse, but it is possible we will see all three occur in due course. While the current crash started at the end of 2018, the year of 2019 will probably be the one that is most remembered in history books as the beginning of Great Depression 2.0.