And the DJIA indicates it’s only going to get uglier
Very few geopolitical analysts and political commentators, mainstream economists and financial engineers really understand what’s going on with the trade war between China and the U.S.
That’s because they either don’t know or fail to correctly understand the history.
And there’s a lot to know as in a LOT of history, just as there is a LOT to properly understand.
We unfortunately don’t have the time available to provide the necessary but rather long history lesson; hence, suffice to say “Remember the Opium Wars”.
What’s the key point?
There are two.
First, President Trump will not back down. He’s on a lifelong mission as the following video makes clear.
Secondly, China will not back down. “Remember the Opium Wars.”
The Chinese government is going for broke—literally!
What’s the other critical point in this epic war between East and West?
China wants and demands respect.
Beijing also expects a fair deal for both sides. They’d much prefer a win-win outcome.
Even if it means radically changing the way they have done business with America for the past 40 years, China is willing to cut a fair deal.
The United States is different.
Yes, China has been riding a gravy train for many years. But that doesn’t mean they believe they should give into every U.S. demand on trade.
The larger point is that Trump already has a preconceived outcome. The problem is that he has hardened his position with no room for real negotiation.
Yes, even though Democrats and Republicans gave away the store to China over several administrations, Trump has to be very careful about over-reacting.
The stark reality is that the POTUS is stuck. And it may be that he will not be unstuck.
So, therefore, the world community of nations is stuck watching a slow-motion international train wreck.
That would be a collapse of the global economy.
But why is this really happening? As follows:
Unless BOTH sides come to the table — SOON — and negotiate in good faith, there will be no happy ending to this disaster-in-the-making. Nor will this all-out trade war end anytime soon. As famous movie script from Cool Hand Luke goes: “What we’ve got here is a failure to communicate.”
With the Brexit catastrophe looming in the background of the Global Economic & Financial System (GE&FS), all it takes is something as unsettling as a U.S.–China trade war to push the world into a full-blown recession. The truth is that the GE&FS never recovered from the last one.
Given that stark reality, this intensifying trade war will only throw fuel on the fire…or in this case a planetary conflagration.
For anyone who doubts the seriousness of this epochal “War of the Titans”, just check out today’s headlines at the Drudge Report below:
Again, exactly why is this particular trade war SO VERY SERIOUS? Because… … …World Wars Always Begin With Trades Wars (Updated).
Special Note: The Great Depression was deliberately triggered as it was financially engineered by the International Banking Cartel in order to set the stage for World War II. As a matter of historical fact, their catastrophic scheme worked like a charm. Fast forward to the Third Millennium. The Dot.com crash of 2000, the 9/11 economic downturn, the real estate collapse of 2007, the stock market crash of 2008, the Great Recession of 2009 and Obama’s 8 years of economic devastation were likewise engineered to set the stage for the hot phase of World War III. However, we have an Internet that they didn’t have back then. Fortunately, some of the key nations of the world are led by much more enlightened leadership who have already avoided major wars that were supposed to happen. Hence, a WW3 scenario is by no means a forgone conclusion.
State of the Nation
May 13, 2019