This will has implications for Australia's economy in the next decade as we have tied our fate to China's.
China is done.
A US/Russia alliance makes sense for both.
US owes China trillions (needs inflation to be serviceable) and has lost manufacturing jobs to it by the millions.
Bringing those jobs back and creating inflation will require Chinese isolationism.
The way to do this is to isolate China by pushing them away from their biggest superpower friend Russia.
The threat of a tri-state gold backed currency in China/Iran/Russia to the US dollar hegemon is not discussed.
Pulling away Russia in this partnership will make sanctions against "currency manipulator" China and "terrorist" Iran easily justifiable and executable.
Russia normalising relations with the USA will ease their historical paranoia of Western Europe encroaching on their borders. Lifting economic sanctions is just a bonus.
They need to be able to control or have friendly governments in these borders so the can control the gas pipelines that are crucial to selling Gas to Europe.
Once Russia is appeased, the next stage is for Trump to delegitimise the CCP the way Reagan asked Gorbachev to tear down that wall.
They will bankrupt China the way the US bankrupted the USSR.
The CCP know the jig is up which is why they're stockpiling now. They know the sanctions are coming.
This will has implications for Australia's economy in the next decade as we have tied our fate to China's.
China is done.
A US/Russia alliance makes sense for both.
US owes China trillions (needs inflation to be serviceable) and has lost manufacturing jobs to it by the millions.
Bringing those jobs back and creating inflation will require Chinese isolationism.
The way to do this is to isolate China by pushing them away from their biggest superpower friend Russia.
The threat of a tri-state gold backed currency in China/Iran/Russia to the US dollar hegemon is not discussed.
Pulling away Russia in this partnership will make sanctions against "currency manipulator" China and "terrorist" Iran easily justifiable and executable.
Russia normalising relations with the USA will ease their historical paranoia of Western Europe encroaching on their borders. Lifting economic sanctions is just a bonus.
They need to be able to control or have friendly governments in these borders so the can control the gas pipelines that are crucial to selling Gas to Europe.
Once Russia is appeased, the next stage is for Trump to delegitimise the CCP the way Reagan asked Gorbachev to tear down that wall.
They will bankrupt China the way the US bankrupted the USSR.
The CCP know the jig is up which is why they're stockpiling now. They know the sanctions are coming.
Not sure that it will play out that way.
China will not simply lay down, CCP is not a toothless tiger.
China will not simply lay down, CCP is not a toothless tiger.
Letting Russia deal with Syria and other middle eastern countries "terrorists" will free up US military resources in case the conflict with China escalates.
Plus a guarantee from Putin that Russia will not come to the aid of China will mean China is well and truly farked.
China and Russia vs US military can be an even proposition.
Letting Russia deal with Syria and other middle eastern countries "terrorists" will free up US military resources in case the conflict with China escalates.
Plus a guarantee from Putin that Russia will not come to the aid of China will mean China is well and truly farked.
China and Russia vs US military can be an even proposition.
China alone vs US is laughable
It is certainly an interesting development.
Ford have just cancelled their Mexican car factory. Pressure on GM.
These are interesting times.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
China is prepared to step up its scrutiny of U.S. companies in the event President-elect Donald Trump takes punitive measures against Chinese goods and triggers a trade war between the world’s two biggest economies after he takes office, according to people familiar with the matter.
The options include subjecting well-known U.S. companies or ones that have large Chinese operations to tax or antitrust probes, the people said, asking not to be identified because the matter isn’t public. Other possible measures include the launch of anti-dumping investigations and scaling back government purchases of American products, according to the people.
The move illustrates how the fallout from escalating tensions between the two nations could spread to companies. Trump has made China a frequent target of his attacks and nominated trade-related officials that the Communist Party’s Global Times newspaper said would form an "iron curtain" of protectionism.
Any retaliation by China against Trump could be risky. A backlash may result in China damaging access to its biggest trading partner, said Michael Every, head of financial markets research at Rabobank Group in Hong Kong.
"When you have a country with a large trade deficit that retaliates against a country with a large trade surplus with it, it’s the country with the trade deficit that wins," said Every. "The country with the surplus loses, every time."
America’s trade deficit with China narrowed to $31.1 billion from $32.5 billion in October as U.S. exports to the nation were the strongest since December 2013, according to the most recent data available. That brought the trade deficit to $288.78 billion for the ten months to the end of October.
Playing Chicken
China’s central government compiled the possible countermeasures after collecting opinions from various departments, the people said. The punitive steps would only be carried out if the U.S. acts first and after senior Chinese leaders sign off on them, they said.
Representatives at China’s Ministry of Commerce, National Development and Reform Commission, State Administration of Taxation and General Administration of Customs either didn’t respond or couldn’t immediately comment to Bloomberg queries.
Representatives at Trump’s transition team didn’t respond to a request for comment.
Late last year, China fined General Motors Co., the second-largest foreign carmaker in the country, nearly $30 million for antitrust violations after the company was accused of setting minimum prices on some models made by its SAIC General Motors joint venture. GM said at the time it respects local laws and that it would fully support its venture in China to ensure all appropriate actions are taken.
To read more about U.S. companies’ exposure to China, click here
Given how much they have at stake -- Rhodium Group estimates American multinational corporations have poured more than $228 billion into China since 1990 -- U.S. business groups have a history of pushing back against Washington on trade issues with China. In the 1990s, companies including Boeing Co., Motorola Inc. and American International Group Inc. were involved in lobbying efforts in the annual battle to renew China’s most-favored nation status that gave its exports low-tariff status in the U.S. In 2011, trade groups representing companies including Microsoft Corp. and Wal-Mart Stores Inc. lobbied against legislation to pressure China to raise the value of its currency. — With assistance by Steven Yang
Letting Russia deal with Syria and other middle eastern countries "terrorists" will free up US military resources in case the conflict with China escalates.
Plus a guarantee from Putin that Russia will not come to the aid of China will mean China is well and truly farked.
China and Russia vs US military can be an even proposition.
China alone vs US is laughable
A nice intereactive map of Global Trade to give perspective.
As I said, China will not simply roll over... it has played the western game of capitalism to a large extent and is well aware it is being screwed...
What do you do if you are stuck with a bum who pays their bills with things they can simply print like paper ? why use their own currency to buy hard assets.
As I said, China will not simply roll over... it has played the western game of capitalism to a large extent and is well aware it is being screwed...
What do you do if you are stuck with a bum who pays their bills with things they can simply print like paper ? why use their own currency to buy hard assets.
The US can make do with less iPhones and plastic junk than China can with less US chicken and other food stuffs.
The US can tap Australia and their local mines for rare earth minerals.
With the US treasuries, the saying that owe a million the bank owns you, owe a hundred million you own the bank, applies here.
Millions of jobless Americans can still eat with their EBT cards buying free food at their local Walgreens with food sourced from the corn belt.
Millions of jobless Chinese won't be able to afford food as they have to import it expensively with a devalued yuan.
If it comes to it, China cannot outgun US gunships and strategic bottlenecks like Malacca Strait can easily be reclaimed with support from India and Russia.
The US can make do with less iPhones and plastic junk than China can with less US chicken and other food stuffs.
The US can tap Australia and their local mines for rare earth minerals.
With the US treasuries, the saying that owe a million the bank owns you, owe a hundred million you own the bank, applies here.
Millions of jobless Americans can still eat with their EBT cards buying free food at their local Walgreens with food sourced from the corn belt.
Millions of jobless Chinese won't be able to afford food as they have to import it expensively with a devalued yuan.
If it comes to it, China cannot outgun US gunships and strategic bottlenecks like Malacca Strait can easily be reclaimed with support from India and Russia.
Trade war is an outlast game. - Trade war will not be limited to trade if China is facing a revolting population.... also, the stockpile of US-T Bills are insurance
The US can make do with less iPhones and plastic junk than China can with less US chicken and other food stuffs. - if push comes to shove, China does have the ability to produce enough food for it's population, and lets not forget that it is acquiring assets overseas which are food producers. A trade war which attempts to prevent a country from importing it's food which it produced itself overseas through it's own companies would be most unwise.
The US can tap Australia and their local mines for rare earth minerals. - agreed... they will not tap enough of our mines to keep us out of difficulties, however.
With the US treasuries, the saying that owe a million the bank owns you, owe a hundred million you own the bank, applies here. - indeed... however when that debt is able to be converted for hard assets, that problem shifts to another "bank". China seems to know the game is rigged, and is making moves to buy real assets for it's US debt as insurance.
Millions of jobless Americans can still eat with their EBT cards buying free food at their local Walgreens with food sourced from the corn belt. - yup, agreed... however eating that shit and missing out on your cheap Chinese crap when you are used to a comfortable standard of living be enough to keep an American government in power ? China uses a mix of quasi-democracy and fear to keep it's population.
Millions of jobless Chinese won't be able to afford food as they have to import it expensively with a devalued yuan. - so China simply uses it's stockpile of US-T bills to support the yuan.
If it comes to it, China cannot outgun US gunships and strategic bottlenecks like Malacca Strait can easily be reclaimed with support from India and Russia. - yup... however if it comes to that, the first sinking of a Chinese gunship would probably be met with a missile strike of the US ship that achieved that milestone.
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