I’ve very recently described the financial and economic situation in the U.S., in Europe and in the emerging markets. In places like Argentina, Turkey, Greece
The dire economic situation with a looming stock market and currency collapse was inherited from previous administrations by Donald Trump. Trump, instead of focusing on improving U.S. education, giving a higher priority to border security, reviewing border practices (including migrants being detained in cages), addressing the grand majority of illegals who arrive by plane rather than on foot, exposing corruption in the U.S. financial sector, creating a special jobs programme for people 25 and under, or doing a score of other things, the Trump administration chose to endorse the GOP tax bill and it continued to reassure that the U.S. economy is doing perfectly fine. This is how Donald Trump has claimed ownership of not just the future stock market crisis, but also the coming U.S. dollar collapse. Trump seemingly walked right into the trap laid out by the corporate and financial sector and set himself up to be the scapegoat for the next major crisis. He is, after all, cannot be responsible for the fiscal and monetary irresponsibilities of previous U.S. administrations, although he himself didn’t make the situation better, Trump just proceeded to pile more and more debt and budget deficit on.
As pointed out previously, low FED interest rates will just inflate bubbles in the economy making it even worse when the finally pop. The quantitative easing being practiced by the Federal Reserve, Bank of Japan and the European Central Bank is keeping equity (stock) markets high, only delaying their inevitable collapse one quantitive tightening (less or no quantitive easing) comes. Quantitive easing is essentially when the central bank creates money and it buys up shares on the stock market in bulk. It works just like when somebody intravenously injects himself with a strong illegal substance. This injected money creates artificial highs and is capable of artificially stabilizing stock markets after a stock collapse. However, it will greatly hamper future growth (source).
As, I have pointed out in my recent article titled ‘National Currencies Collapsing‘ the GOP tax break has increased the budget deficit by 17% to $779 billion, for 2019 it’s most likely will be over $1 trillion. $779 billion which was borrowed and $1 trillion which will need to be borrowed.
Donald Trump during the last 2 years took the military road, instead of a diplomatic approach which has baffled the international community and resulted in more division than progress. The sole country which was appeased by his actions was Israel. Donald Trump has officially recognized Jerusalem as Israel’s capital by moving the U.S. embassy from Tel Aviv, the Israeli Defence Force got their brand new F-35s and perhaps most importantly for Israel, Iran was heavily sanctioned settings back its economy and destroying close to a trillion dollars of British, French and German investment into Iran.
Only the United Kingdom is willing to take up with all the current developments, however, they are the sole “ally” of the U.S. who haven’t been sanctioned by Trump yet. It is by all signs quite surprising that after multiple bloody wars, the financing the Confederate States against the Union, decades in rivalry and conflict it was a British monarch who was greeted with unanimous applause by the U.S. Senate and Congress.
The German energy security was attacked by the Trump administration when Donald Trump and others scrutinized that Germany’s main supplier was the Russian Federation. However, contrary to the policy currently followed by the United States where the Trump administration issues sanctions and tariffs en masse, officials of the Russian Federation were always keen to recognize German domestic interests and sit down with their counterparts. Why would Germany buy the same natural gas more expensively from the United States? or Why would Germany make itself dependant on LNG (liquified natural gas) shipped by sea from the United States? It’s clear that Germany, and rightfully so, prioritizes the same product for cheaper with a more stable supply while having the temperamental United States and Poland as a second option if Russia wouldn’t deliver.
The recent withdrawal from the Intermediate-Range Nuclear Forces Treaty or INF treaty has especially angered European “allies” of the U.S., not to even mention the Russian Federation and China. All of this was done under the pretext of Russian violations alleged by the U.S. and bringing China under a similar treaty. (Russian officials also alleged U.S. violations of the treaty in question.) At the same time, Trump is going to increase the military budget – again – placing new orders benefiting the U.S. military-industrial complex. This new development will not only make the security policy of European states uncertain but also create a new arms race where the United States will compete with itself, one which cannot be won by the United States this time around. New s
EDIT: Evidently there was also a Russian draft resolution to reinforce the INF Treaty, which bans intermediate-range nuclear weapons and was overwhelmingly rejected by European countries and also by the U.S.
Andrey Belousov, deputy director of the Russian Foreign Ministry’s Department of Nonproliferation and Arms Control said the following at a UN meeting on October 26th, “At a recent meeting, the US stated that Russia is preparing for war. Yes, Russia is preparing for war, I can confirm it”, Belousov said adding that “We are preparing to defend our homeland, our territorial integrity, our principles, our values, our people.”
“Russia’s military build-up and large-scale drills, which have often been painted in the Western media as preparations for all-out war, are a defensive necessity, he said. Russia doesn’t seek a confrontation, he said, unlike the US. “Why else would the United States pull out of the [INF] Treaty, increase their nuclear potential, adopt a new nuclear doctrine that lowers the threshold for nuclear weapons use – that’s the question for us all.”
“Most of those who voted against were supporters of the INF Treaty. I don’t understand their position,” Belousov said. “Among those who voted down the draft were the UK, Germany, France, and, of course, the US.”
The statement made by Andrey Belousov seems to point to the hypocrisy of countries in Europe who will be the meat in the sandwich during a potential conflict between the United States and Russia.
From the current heated U.S.-Chinese relations nothing good will come. After the Chinese buildup in the South China Sea and the subsequent U.S. response which included “freedom of navigation” operations and live fire practice along with the recent Taiwanese military deal with the Trump administration of $330 million worth of arms aiming to further escalate the situation.
Donald Trump had the opportunity to renegotiate trade deals with its Chinese and European partners, but instead of holding bi- and multilateral talks he chose sanctions and tariffs (Trump’s tariffs). The United States made it clear to both Europe and Asia that any dissent against the unilateral economic, financial and military domination of the U.S. is considered extremism and terrorism and will be met by more propaganda, U.S. military buildup, tariffs, and sanctions. In Europe, Germany and France are actively looking for alternatives and new partners in Europe and beyond. Germany wants to dump the dollar and the SWIFT system. Since Germany is still an occupied country to this day by the U.S. military (37 U.S. military installations) it is not allowed to make major decisions in terms of its foreign policy without the prior approval of the United States.
The issues between the United States and China originate during the time of the young United States (the 1882 Chinese Exclusion Act – “Give me your tired, your poor, but not the Chinese.”) prohibiting and demonizing Chinese businessmen nurturing their capital in the United States. Parts of China were colonized by western powers including the British Empire, France, the United States and other colonial powers. Grandfather of U.S. president Franklin Delano Roosevelt, Warren Delano was second only to the British running opium under the mask of the “Old China Trade“. China and its people were seen as fair game to exploit. Part of the money gained running the lucrative opium trade ended up building up the American industry of the Eastern Seaboard. The first U.S. industrial centers, the first 5 American railways, the public school system and public utilities are just a few examples of what has been constructed from ill-gotten gains siphoning China out. Meanwhile it was the fruits of the European industry which were widely copied over decades by the U.S. These facts are clearly uncomfortable ones, that’s why they’re being omitted.
Furthermore there is evidence pointing to a connection between Yale University and Mao Zedong who participated in the U.S. intelligence network called “Yale in China” and was also granted the editorship of its journal. According to rumors, Sun Yat-sen was despised by the Anglo-American empire, because he wanted to develop China, meanwhile Mao was covertly supported since he wanted the opposite of that (source).
As a strange turn of fate, now in the 21st century it is China who is building up its industry in the 21st century from U.S. funds to the detriment of the domestic industry of the U.S. We are seeing a clear shift from copying in China to developing unique products (bezel-les phones, fashion accessories) and services (weChat). It has became clear to the Chinese government that they will never be seen by equal partners by their U.S. counterparts. Barack Obama has announced a plan to ‘contain’ China in the administration’s “Pacific Pivot” strategy aiming to gain control China’s access to the South and East China Seas to enable the United States in the future to place China under sanctions or even a trade blockade using old and new military installations, allied ships and sea mines. Should China do like the United States does and patrol the waters of the coast of California under the pretext of ‘freedom of navigation’? Or perhaps send battlegroups to the Gulf of Mexico? The problems in the eyes of the U.S. are not the lack of capitalism or the leading Chinese Communist Party. It’s all about control, power and money.
The United States and China are now in ‘Thucydides’s trap‘ both countries aiming to destroy each other as “viable societies“. The grand military power of the U.S. and the immerse monetary power of China are in rivalry with each other. China is already pre-positioning itself and investing in the industries of the future and in other emerging markets. The United States realizes full well that if China gains the upper hand the U.S. will have no economic future. At the same time, the United States is trying to penalize China and geographically contain it heightening up its military presence and aggression besides arming and funding countries which oppose Chinese interests.
The United States military hasn’t been stronger before, just as China’s leverage on the U.S. hasn’t been bigger before. All the military spending by the U.S. and all the effort to set up a second price fix of gold (first time in history there are two prices of gold) by China are comparable only to each other. If Trump would be overly harsh on China bringing its economy to the edge, China could sell off all of its U.S. Treasuries and then raise the price of gold on its Shanghai Gold Exchange exposing the West’s fake gold market to kill off the U.S. dollar. A military conflict involving China and the United States is now being highlighted in the mainstream without mentioning the framework of the Shanghai Cooperation Organisation backing China. The Shanghai Cooperation Organisation includes China, the Russian Federation and Kazakhstan among others. It currently includes most of the major powers of the Asian continent.
U.S. military bases and sites are being utilized as satellites to secure the expansions of the Empire of the United States. With its bases worldwide, just like the Roman empire did, the U.S. is forbidding countries to be the forger of their own fate and foreign policy. In the dark night of the 2016 Turkish coup d’état attempt allegedly four F-16 U.S. fighters took of from the U.S. Incirlik Air Base downing multiple Turkish military helos trasporting Turkish servicemen. This wasn’t confirmed by Turkish authorities, at the same time Recep Tayyip Erdoğan was very quick following the coup attempt to encircle the U.S. military base with the help of the Turkish police in Ankara. Turkish lawyers are demanding the arrests of U.S. military personnel and there is a big public outrage in Turkey against the U.S. base.
Quite clearly the United States cannot function without China and China cannot function without the United States. The two must walk or limp together. Destroying the U.S. dollar prematurely would undo ~10 years of Chinese development, while a U.S. attack on China would destabilise the American consumer market and kill the U.S. dollar off immediately.
It is fearful that if there will be a new economic crisis in the United States there will be notable characters blaming it on China calling for a world war. Even covert groups in the U.S. government could orchestrate a situation or event where for a U.S. economic collapse China would be blamed, justifying a war with China and Russia.