The US media is now howling with fear and rage because finally…FINALLY…we have a real President who perhaps has seen my 100 cartoons about how dangerous and stupid ‘free trade’ is and how fatal it is for the US. Our trade deficit with the world grew and grew most of my long long life and is out of control and all our fake allies and obvious future enemies run great trade surpluses with the US. This battle has to be won otherwise we will go BANKRUPT. California, internally, is going bankrupt despite having a huge, huge financial advantage, for example, due to taking in endless illegal aliens for cheap labor who then stay on welfare and collapse the State. The US will collapse like California. The trade deficit makes American rich people richer while destroying the working class, making it poorer.
I don’t need to make any more comments on this trade war, Trump just threw down the gauntlet in front of China and China stupidly decided to go to war with its #1 CUSTOMER. There is an iron rule of nature: the customer always comes first. Attack the customer and they retaliate by refusing to do business anymore. The Chinese running China now don’t know me, the first reformers literally lived with me.
They charmingly told me their plan for the future was to copy Japan and run trade surpluses with the US. I warned President Bush Sr. about these plans and the State Department sneered at me so here we are, the Chinese plan in full bloom and utterly obvious and we have Trump doing something about it at last! Thank the gods.
My blog back in 2011: As I Predicted Two Years Ago, China And Japan Form Powerful Currency Union | Culture of Life News
I literally have almost 100 cartoons on this topic! The warnings I have issued over the years go way back to when the Chinese hatched their 50 Year Plan at my house in New Jersey. They did this after learning some basic history about shipping, military development and the rise and fall of great empires. They have to be the only people in power who ever listened to me, alas. They learned their lessons well.
The present fall in world trade is due entirely to China raising the bank rate reserve ratios and limiting foreign investment in China. This squeezed Japan mercilessly and this was deliberate since Japan was two timing China, talking trade when in Beijing and then talking war when in DC. The Japanese always joined US attacks on China’s huge FOREX holdings while holding nearly just enough to keep the dollar strong against the yen so they could ravage our domestic markets.
China warned Japan to stop doing this. Japan had to come clean about their own FOREX holdings. Back in the 1980’s, I warned the US government that Japan would use their FOREX holdings to keep the yen artificially weak and yet, they were allowed to do this to ‘stop the depression’ in Japan. Except the ZIRP interest rates pleased exporters there so they merrily kept this depression going. It suppressed wages and made taxes low and encouraged exports! A win/win for them and a death sentence for the Japanese people.
My blog back in 2009: Trade Deficits Kill Empires – YouTube
The post-Nixon floating fiat currency regime has stabilized in a downward spiral. That is, everyone is seeking to weaken their currencies vis a vis the US for trade advantage but this is now folding into itself like a Möbius strip run over by a dump truck.
China Be Bank | Culture of Life News
2017: Japan Announces 50% TARIFF On US Trade! | Culture of Life News
Japan likely to increase import tariffs on frozen U.S. beef to 50% – Japan Today…yes, there is no ‘free trade’ there is ONE WAY trade with nearly all our fake allies. There is nary a peep in our fake mainstream news about this, too. Japan is not an ‘ally’, Japan is a rapacious trade rival. We have to punish Japan for this attack on free trade. Will Trump stick to his guns?
Europe is whining about the US Congress trade embargo on Russia. Good! They want WWIII why are they whining about it? They hate Trump and cheer anyone who defies him so Congress is egged into defying Trump and preventing diplomacy with Russia so Europe gets to be destroyed by WWIII and ditto in spades for Japan.
Budget Sequestration Prevents US Free Trade Negotiations, All Of Which Are Total Failures Anyways | Culture of Life News
This is the banking money sent overseas to make the rich richer. Note too that this is a classic hockey stick graph! ALL hockey stick graphs show immanent collapse. All hockey stick graphs showing the growth of anything, once it begins to head to infinity, turns suddenly and drops to zero or mirror negative numbers. This is true in all natural and interestingly enough, all unnatural systems.
This is due to the harsh fact, NOTHING in creation can EVER go to infinity. Nothing. This is why astronomers who think the universe will expand faster and faster forever are wrong. The universe, in fact, may already be collapsing into itself. The US BOPBII business is on the verge of collapse. Right now, Japan is desperate to keep its huge trade surplus with the US growing and deliberately doubled the yen money making machine in the Bank of Japan.
This temporarily moved the yen from 72 to over 100 to the dollar. Last week, the yen grew stronger and the export cartel in Tokyo freaked out so today, the yen grew weaker again as they frantically pump the Bank of Japan to overtly manipulate their currency so they can continue to destroy our domestic economy. The US which belly ached about this currency manipulation business remains totally silent as does our media which isn’t infuriated with the violation of trade rules set up by the floating fiat currency/free trade negotiators.
HAHAHA. As if! SK population is much, much smaller than the US. They export far more cars than they import. And they have zero intention of importing much of anything and the market there can’t take it, anyhow. Like Japan. Our trade deficit is no longer plunger deeper and deeper into the red but is floating fatally far into the red and this can’t go on forever. We lost trillions this way so far and can’t do this forever. It is impossible.
And fatal. And all of Congress bellows about ‘jobs’ while working insidiously to export investment money and import foreign labor goods. Thanks to our corrupt election system.
My blog should be required reading for everyone in college taking classes in international trade. Of course, no one likes my blog except a handful of people so I leave all of this as a signpost to the future: do not copy the US trade solutions 5 US Presidents put into force. It is FATAL.
37 responses to “Trade War With China Begins In Ernest: Trump Must Win”
The rulers of Britain try desperately to undo Brexit.
The rulers constantly try to redraw maps and rewrite history in order to keep themselves relevant and one step ahead of the populace. The fact that they are experiencing a huge push back from the regular people is something they never planned for and this is why they are running around frantically trying to pull out their rabbits from various hats.
Let the games begin, this ought to get interesting we might get a few scatches but everybody else is gonna get creamed.
You know you’re over the target and locked in when the flak is heaviest. The news media and Chamber of congress are going full scream mode.
This tariff tit for tat is nothing yet, just close our ports to imports for 6 months and then see a new world.
Pax Americana is not about military bases in far off land it is economic blitz and world leaders crawling on knees to get back into the American market.
Am I missing something here? Can’t this whole mess be resolved if everyone agrees to eliminate trade barriers? And I mean all barriers, including regulatory ones in foreign countries which place burdens on US products that push up their cost to the consumer and make them uncompetitive.
ELAINE: nope. It is impossible to have equal markets this way. Currency controls: I have written endless articles about that business. ALL our trade partners do this game and are doing it this very day which is why Trump wisely used the other tool, tariffs.
I think you capture the zeitgeist of the former underground, Mrs Supkis. Most of your views are considered mainstream among millennials leading the counter culture. They may not have been listening to you specifically, but they came to similar conclusions anyway. The revolution you always wanted is well underway
They can’t do that because it would mess up monopolies and give little people an opening into industry.
The elites whole set up is trading industries among one another. No elite were ever founders of their own “company”. They were GIVEN a company in order to be a front man.
Did you ever wonder why companies just collapse? You would think that should be distressing to everyone in charge. But no one bats an eye! That is because the ending of a monopoly is just as staged as the beginning. That is why we see companies come up big then disappear.
Take fast food companies for an instance. It is just families trading piggy banks. You had Chipotle which is now in the process of disappearing. But did you ever notice that Chipotle and copy cat companies like it were at their zenith when all the pro-Illegal Alien forces were in charge? The general narrative changes and the companies change along with it.
The families know about these changes and they agree to rake in the money for a time, then give it up to wait for the next chance to be a front man for a bogus company.
We don’t live in a real culture. We live in a doll house that the elites have built to keep themselves in power.
That is why you have to grow your own little garden, eat at home, learn to sew, ignore TV, Mass Elite Media News, Books (tricky some are on the level but most recent fare are CIA psyops), Films, Music and Video Games.
I can remember telling u here how the Chinese who lived with her a time ago would study US Politics and banking matters and then told Elaine: “We be Bank!!”. I think the Chinese will grab whatever tangible assets they can if All Out Trade War occurs. I think at the top of the list is the Nationalizing of US-based Corporation Industries in China. Or, the Chinese could think up all sorts of Fees to charge Us Companies in China. A Trade War could be Nasty. There’s no telling who will win between China and USA. .
Easy to slap tariffs on a few exported resources, but due to the complex supply chain manufacturing set up by the multi-national corps., a trade war will probably petter out after a few media sensationalized skirmishes.
If this leads to a currency war, a war of what the medium of exchange for international trade is settled in, then we shall experience some real changes in the international order! Methinks.
The Chinese are doomed to lose a direct trade war fight because they are EXPORTERS not importers. End of story. China can collapse the world economy but that would utterly destroy China, itself! They cannot afford a trade war with their #1 customers. It is impossible.
9–Yes, it is complicated. Will they dump US Bonds?
In another complication, US is not cost effective. Asia has $5-50 a day slave labor. By the hundreds of millions.
Any thoughts on this?
Does China really have Billions? Even with that many most of China is wilderness. Even the US is mostly wilderness. Many say now that even if all the population of the world’s cities were resettled in suburbs/exurbs there would still be miles of wilderness. Who knows?
I suppose China could “let” some of their extra mouths get a one way ticket to Mexico (now that it is socialist) to storm our Southern border. Or even let the traffickers step up their boat people loads.
Whatever the case, for a country with so many people they seem quite keen to keep all of them in place. Even with all those people they still need the US as a market. And since we are their main export destination, they will have to give in or see their trade collapse. Trading with the EU just won’t compare and I don’t think Putin will allow them to storm Russia with unfettered goods.
Elaine, I have a question, if the exporting Chinese don’t surrender, with their command economy with a homogenous population united against foreign threats, and the importing US has a divisive population addicted to consuming cheap imports through debt, and fearful of a cold-war adversary, not China, how long would Americans put up with trade-war stagflation?
Here is an excellent article that view the start of the trade war could last 50 years with China having a better chance of winning:
Trump holds all the cards, smart money knows.
China cannot lose face, could collapse and Communist Party fall!
US market overvalued, irrational exuberance too much.
US market will have big correction this Sept.
Isn’t China’s central problem that they hold so many US Dollars? Which may not be bad in and of itself but China loses if they sell off their USD because the value of these Dollars is going down because the Fed runs the US Dollar “printing presses” around the clock? And China selling their US Treasury holdings would crash the US Economy and that in turn would hurt China? Maybe as much if not more than it would hurt the US? It seems China is in a Lose-Lose situation.
China could commit mass suicide. Did it in the past! Mao nearly totally destroyed everything Chinese. Seriously, all art, architecture, the entire culture was to be utterly destroyed.
The Chinese still remember this brush with annihilation. The leaders are playing games with the Bilderberg gang knowing the gang wants Trump DEAD. Not gone, dead.
The Chinese hope that the Bilderberg fools will succeed. But if they fail, the Chinese will play footsie with Trump. We shall see.
One other thing. IF the Chinese engage with the USA in a Trade War, what happens with the jobs in Manufacturing? I don’t have any doubts WHATSOEVER that US based Manufacturing companies would rather commit Mass suicide rather than bring back US Manufacturing jobs into the US of A. They aint gonna do it. No way. NO HOW.
“We be Bank!!”. /
They saw the sweet deal The Rothschilds, etc have in printing currency notes and owning banks..
I think the Chinese will grab whatever tangible assets they can if All Out Trade War occurs../ They are buying up assets worldwide.
I dont see how USA can compete with slave labor.
MEL–Does China really have Billions?1.3 billion ‘chinks’–as a chinese told me, like termites.
I suppose China could “let” some of their extra mouths get a one way ticket to Mexico…..see the book..’The Snake head’ about chinese illegals in USA.
❤ ❤ ❤
Always loved your cartoons, all so true! "New pink US Dollar", hahahaha!
I remember the old typepad blog. Didn't comment as much back then, but was a reader.
The thing is, it's too late to reverse all this damage. Been going on since the Reagan administration, maybe before. Trump is closing the barn door after the horse has run off and been eaten by the Chinese farm family down the road. All that's left is a skeleton. Now the Chinese family is hungry again, and the barn is still empty. Or maybe it has a few Russian rocket engines stacked in the back…
About China dumping US bonds.
We can buy them up quickly.
Monetize them with the ESF.
Americans would just buy their own stuff, and make more. China knows this. We have lots of choices here,
We cant lose –and I admire Trump for calling them out on their tariffs
the vid that came after yours
HAHAHA…trade deficits don’t matter until you go bankrupt.
“We can buy them up quickly. Monetize them with the ESF.”
That is one tactic. All the big players in the world economy must keep quantities of the money of the other players. They can then use these to manage (manipulate) their respective currencies.
China isn’t going to dump all its dollars all at once. It will keep them as a handy weapon on the geopolitical playing field.
But of course these trade imbalances become a problem for a country when it gets so bad that all the country’s central bank can do is issue more of it. When the bank is forced into a corner where the only thing it can do is monetize because the country has no other economic activity. That’s when a currency collapses into hyperinflation.
25–Jim–what will happen?
US government is in massive debt, bonds held by China, Japan, etc.
A few years back [2014?] Belgium bought a huge amount of US bonds.
I assume it was some trick. that Belgium was just a front for US or EU.
Lou: the explanation for Belgium buying US Treasuries is that it is the Rothschilds that are buying UST just to keep the fiat money Ponzi scheme going. That is supposedly why a tiny country like Belgium are buying so many Bonds.
@#23: The guy in the video is simply a mouthpiece for Neo liberal economic policies. The neo liberals are too smart and/or don’t have the nerve to come right out and say that Trade deficits are designed to increase Corporate wealth. The mouth in the video says, ” China does not cost jobs. They create jobs.” Or, Chinese textile jobs CREATE 550,000 US jobs(!!) “They don’t automatically cost jobs”, referring to China’s textile Industry. Of course, he’s honest enough to say he can’t remember the exact number. Then this puppet admits he is using Heritage Foundation studies and Government employment figures!!! The Heritage Foundation is Corporate funded–by entities like the Koch brothers. And he cites Government employment figures??!! Oh and the Government never fudges or outright lie about US Employment. Amazing.
I don’t know what they will do.
But one historical example — about ten years ago, there was this thing called the “Yen Carry Trade”. People who were in a position to really trade in foreign money (bankers mostly) could borrow Yen from Japan at an interest rate that was approximately zero. So they did, borrowed trillions of ’em. And then they exchanged the Yen for some other currency such as Dollars or Euros. Then they bought low-risk bonds in other countries at interest rates greater than zero.
So for doing nothing, these traders made money on borrowed Yen. It doesn’t work any more, because yields have dropped to almost zero on dollar denominated bonds, and there aren’t any low-risk investme.nts that reliably generate money like that.
At the time, the Bank of Japan was still in a position to issue a lot of Yen because Japan was still selling cars and cameras and electronics, and running a trade surplus. And the brisk trade in currencies allowed the BOJ to keep the Yen fairly stable (and low).
All of you are correct and I have been explaining this for years and years. The currency games is key to trade deficits. The US is told, a strong dollar is good then the dollar weakened so…our trade leech countries that run huge trade surpluses simply weakened their own currencies as much as possible with Japan setting a track record for this game. It is, as I pointed out many years ago, too, that this is killing Japan physically, literally.
Japan is DYING. So is Europe which also decided to commit mass suicide, on top of dying. No more babies. The People no longer reproduce. Living standards for citizens fall relentlessly, wages go down. This game ends with annihilation.
Japan, for example, will end up being mostly robots and humans who are increasingly insane and helpless. Asimov imagined this many decades ago with his Empire series. It is super scary and Japan can’t escape this trap. I believe they are literally doomed with Germany sliding into destruction via low birth rate/high Muslim invasion and birth rate.
The People no longer reproduce.–Do not think that this is by accident.
Its (((media))) pushing abortion, race mixing. They pushed black men sexy dancing with white girls on (((MTV))) more than 20 years ago, and slowly phased out all the white male dancers altogether.
MTV did this even though blacks were a tiny percentage of their audience.
MTV is propaganda, not entertainment, and so is the game of football.
Blacks are in European football clubs for the same reason. To phase out the white males.
We are a target.—Anti-semitism is just the yiddish word for truth.
Meanwhile, did you see that vile negress from the Congo climb the Statue of Liberty 7-4?
Telling us Americans what to do.
After reading about the atrocities of the Congo and Nigeria my blood is really boiling. Watching that ignorant invader from the Congo shut down the Statue of Liberty on the Fourth of July was insulting to say the least. She needs to be put on the next plane back to her motherland. Tired of watching all these third world miscreants telling us how rotten we are.
JUST ANOTHER CANNIBALISTIC, MOTHER-RAPING WAR IN THE CONGO
UN human-rights experts—not that we trust them, nor that we even necessarily believe in or support human rights—have released a 126-page report detailing the grisly atrocities perpetrated between government forces and rebels in the Congo starting in late 2016.
You think Roots was bad? Listen to this:
• Young boys were forced to rape their mothers (which assumes they had to be forced)
• Soldiers ate victims’ flesh AS they died, not after they died
• Soldiers “sported female genitals as medals”
• Penises were cut from living men
• Little girls were convinced that witchcraft would enable them to catch bullets without harm
• Lots of blood-drinking
• 186 men and boys from one village were decapitated in one fell swoop
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@# 31 Lou: The destruction of White males has been the #1 priority all along. The people pushing this agenda knew full well that coming right out and saying this was a bad idea. So they erected a huge False Narrative. It was all about tolerance. It was all about Choice. (People who promote abortion call themselves “Pro Choice”.) Diversity. Another code word for the REAL message: “Destroy White males”. The Feminist Movement was probably the most honest group in this bunch; they directly blamed “the White Male Power Structure” for every problem women faced. So is the concept of Racial quotas. Or “Affirmative Action.” In the case of these Social Engineers and their War on White males, you don’t ask the question, “Who benefits?”, you ask, “Who is the target of all these policies?” In other words, “Who is going to suffer the most?”
If non White is Haiti, Congo, Pakistan, yikes;
Canada to be 80% non-white in 100 years.
Australia is supposed to be 95% non-white in 80 so go Canada.
(according to Australian politicians such as PM Bob Hawke back in the 1990s.)
These statistics classify Asians as ‘colored’. The influx of Asians to Canada and the US is ignored by many but this is where the really big changes will happen, the Asians despise the third world immigrants and fear them since many illegal aliens from third world countries attack Chinese here in the US and Canada, etc. as easy targets for crime because even poor Chinese, for example, make lots of money, fast and work very hard doing this.
but this is where the really big changes will happen, –such as? mass murder?
This just published in ZeroHedge. Of course, Elaine has known this stuff for fifty years or so …
Chinese Military Scientists Have Infiltrated “Five Eyes” Western Universities
by Tyler Durden
Mon, 10/29/2018 – 18:45
The ‘last DECADE’? HAHAHA. Never ending amusement here.