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.
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.
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.
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.
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.