Best of the Week
Most Popular
1. Climate Change Mass Extinction - Birds, Bees and Bugs: Going Going Gone - Richard_Mills
2.A Purrrfect Gold Price Setup! - Peter_Degraaf
3.Who Finances America's Borrowing? Recession Indicator for Independent Thinkers Part 2 - F_F_Wiley
4.America’s One-sided Domestic Financial War - Raymond_Matison
5.Gold Price Summer Doldrums - Zeal_LLC
6.Two Key Events Will Unleash Gold - Jim_Willie_CB
7.Billionaire Schools Teacher in NAFTA Trade Talks - Richard_Mills
8.Get Out Of Crypto Cannabis Bubble Before It Pops and Move Into Bargain Basement Miners - Jeb_Handwerger
9.Stock Market Could Pullback for 1-2 weeks, But Medium Term Bullish - Troy_Bombardia
10.G7 Chaos, Central Banks and US Fed Will Drive Stock Prices This Week - Chris_Vermeulen
Last 7 days
How Crazy It Is to Short Gold with RSI Close to 30 - 16th Jul 18
Markets Pay Attention Moment - China’s Bubble Economy Ripe for Bursting - 16th Jul 18
Stock Market Uptrend Continues, But... - 16th Jul 18
Emerging Markets Could Be Starting A Relief Rally - 16th Jul 18
(Only) a Near-term Stock Market Top? - 16th Jul 18
Trump Fee-Fi-Foe-Fum Declares European Union America's Enemy! - 16th Jul 18
US Stocks Set For Further Advances As Q2 Earnings Start - 15th Jul 18
Stock Market vs. Gold, Long-term Treasury Yields, 10yr-2yr Yield Curve 3 Amigo's Update - 15th Jul 18
China vs the US - The Road to War - 14th Jul 18
Uncle Sam’s Debt-Money System Is Immoral, Tantamount to Theft - 14th Jul 18
Staying in a Caravan - UK Summer Holidays 2018 - Cayton Bay Hoseasons Holiday Park - 14th Jul 18
Gold Stocks Summer Lows - 14th Jul 18
Trump US Trade War With China, Europe Consequences, Implications and Forecasts - 13th Jul 18
Gold Standard Requirements & Currency Crisis - 13th Jul 18
Focus on the Greenback, Will USD Fall Below Euro 1.6? - 13th Jul 18
Stock Market Outlook 2018 - Bullish or Bearish - 13th Jul 18
Rising Inflation is Not Bearish for Stocks - 13th Jul 18
Bitcoin Picture Less Than Pretty - 13th Jul 18
How International Observers Undervalue the Chinese Bond Market - 13th Jul 18
Stocks Trying to Break Higher Again, Will They? - 12th Jul 18
The Rise and Fall of Global Trade – Redux - 12th Jul 18
Corporate Earnings Q2 2018 Will Probably be Strong. What This Means for Stocks - 12th Jul 18
Is the Relative Strength in Gold Miners to Gold Price Significant? - 12th Jul 18
Live Cattle Commodity Trading Analysis - 12th Jul 18
Gold’s & Silver’s Reversals’ Reversal - 12th Jul 18
The Value of Bitcoin - 11th Jul 18
America a Nation Built on Lies - 11th Jul 18
China, Asia and Emerging Markets Could Result In Chaos - 11th Jul 18
Bullish Gold Markets in the Big Picture? - 11th Jul 18
A Public Bank for Los Angeles? City Council Puts It to the Voters - 11th Jul 18
Yield Curve Inversion a Remarkably Accurate Warning Indicator For Economic & Market Peril - 11th Jul 18
Argentina Should Scrap the Peso and Dollarize - 11th Jul 18
Can the Stock Market Close Higher For a Record 10th Year in a Row? - 11th Jul 18
Why Life Insurance Is A Must In Financial Planning - 9th Jul 18
Crude Oil Possibly Setting Up For A Big Downside Move - 9th Jul 18
BREAKING: New Tech Just Unlocked A Trillion Barrels Of Oil - 9th Jul 18
How Trade Wars Penalize Asian Currencies - 9th Jul 18
Another Stock Market Drop Next Week? - 9th Jul 18
Are the Stock Market Bulls Starting to Run? - 9th Jul 18

Market Oracle FREE Newsletter

5 "Tells" that the Stock Markets Are About to Reverse

China's Trade War Against America

Politics / China US Conflict Apr 12, 2018 - 11:45 AM GMT

By: BATR

Politics

The Chinese regime is the creation of the globalists. Going back to the Nixon era, Henry Kissinger set into motion a staged and preferential trading system that would inevitably build the Red Communists into the very model for global dominance. Approving China into the World Trade Organization guaranteed a distorted playing field by favoring PRC and allowing their draconian conditions to engage in business by Oriental Marxists. Even The Guardian reports that World trade rules too weak to stop China distorting market, “It is now clear that the WTO rules are not sufficient to constrain China’s market-distorting behavior.” The end result produced a perverse capitalism that merged with totalitarian oligarchists to distort, extort and circumvent any semblance of a legitimate free trading exchange.


Behzad Yaghmaian provides some valuable insights in China: Empire Building in the Age of Globalization.

"The United States helped China’s economic ascendance by promoting globalization and embracing, in recent years, a free market orthodoxy. In the annals of history, it will be noted that it was the United States itself that championed a new economic structure which ultimately undermined its own position in the world.

How did this happen? China’s decision to open its economy to the world coincided with the U.S. drive for globalization. U.S. and Western corporations opened the economic floodgates to China through direct investment and subcontracting agreements. As Western capitalism globalized, China became the factory of the world.

Meanwhile, its free market ideology and obsession with balancing the budget became policy straightjackets that hobbled the United States’ ability to spend strategically on its future. As a result, money that could have been spent on education, research and development, modern infrastructure and other requisites for out-competing its rivals was in short supply.

Unencumbered by a free market orthodoxy, the Chinese opted for the opposite choice. They poured resources into areas pivotal for building a robust and competitive economy. China became the unintended winner of the limits of the United States’ free market ideology."

Well, this is the short version of why America has allowed such an enormous balance of payments with China. In real terms, this recipe for economic demise was designed by the transnational corporatists. The intentional encouragement and approval of de-industrializing America has been no accident. The systematic dismantling of the merchantry economy followed as plant and equipment manufacturing moved offshore in order to build the Chinese coolie export dynasty.

This trade and industry structure was planned as a global warfare assault to bankrupt the American economy. The way back to a viable merchantry is to defeat the 21th Century robber barons who are most vulnerable to any significant drop in their exports. China has proven they are threats to any rational receptacle trading partnership. 

Alan Tonelson in All of the Reasons Why Trump Can Win a Trade War With China, clearly lays out why China is a distrusted actor and major reasons they will lose far more from a curtailing of their overseas sales into the United States.

"Would a country that could take or leave its trade surpluses work so hard to extort or steal its rivals’ intellectual property? Would it pursue industrial policies aimed precisely at creating advantages for so many designated key sectors of its economy over foreign competitors? Would it limit exports of critical commodities like rare earths (essential for electronics and information technology manufacturing) to give its own producers a leg up on rivals press non-Chinese companies to move operations to the PRC? Would it subsidize massive overcapacity in goods like steel and aluminum in order to undercut the competition globally? Would it place so many restrictions on foreign providers of farm products along with banking, insurance, telecommunications, Internet-related, audiovisual, express delivery, legal and other services? Would it sue its trade partners in the World Trade Organization simply because they’re exercising their right to bring actions against China? Would it remain so determined to keep foreign firms in the dark concerning the regulations concerning licensing and operating requirements; product, investment, and business expansion approvals; and business license renewals?

One of these benefits has to do with achieving a goal that’s become imperative to the Chinese authorities—improving the quality of Chinese growth. As with America, too much of China’s economic expansion depends on ever higher levels of debt, rather than on more sustainable sources of demand. And Beijing at least sounds determined to rein in its unregulated shadow banking firms—particularly important lending culprits that have showered credit on provincial governments anxious to meet politically rewarding growth targets."

In order to forge a worldwide economic alliance, Trump Is Building An Army Of Nations In Trade War Against China. Only President Trump has the guts to put the Chinese State-Owned Assets Supervision and Administration Commission of the ruling State Council (SASAC) business enterprises in the target sights to reign in their predatory practices.

"Earlier on Thursday Larry Kudlow confirmed that Trump is indeed building an army ahead of the big showdown with China. According to Bloomberg, Kudlow wants to rally "pro-market allies to push back against China’s unfair trade practices," a senior White House adviser said.

“The damage of our economy comes from China’s restrictive practices. Blame China. They’ve been doing this for decades. Don’t blame Trump,” Larry Kudlow, head of the White House’s National Economic Council, told reporters in Washington.

In threatening to punish China for its abuse of intellectual property, Trump is “doing what everyone in the world has said we should do,” said Kudlow, adding that the administration will have more to say about its efforts to recruit other major economies to support the U.S. position."

America has been pillaged by China for decades. Much of the rest of the world has also been abused by their same theft methods. Fear that China will strike back ignores the fact that China cannot afford missing out selling to the U.S. consumer. Americans gain the opportunity to defeat this aggressor by becoming independent of Chinese export dependency. The United States can win this trade war, it is time to get serious.

Source: http://batr.org/merchantry/041118.html

Discuss or comment about this essay on the BATR Forum

http://www.batr.org

"Many seek to become a Syndicated Columnist, while the few strive to be a Vindicated Publisher"

© 2018 Copyright BATR - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors

BATR Archive

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules