Thursday, August 20, 2015

Has China Declared Economic War on USA?

Many of you know that China devalued it's currency last week.  Many of you also know that we have pointed out for years now that world history shows us that currency wars lead to trade wars and trade wars lead to shooting wars.

Why would China devalue its currency?  Because they want to make all their export items cheaper relative to the other currencies of the nations who are buying all their crap!

Remember the Netflix documentary I recommended to you last year called DEATH BY CHINA?  If you never watched it, you may want to now....because 90% of all the crap in Walmart that we consume by the truckload every week is MADE IN CHINA.

Now check out what they were talking about on the Glenn Beck show and see if it rings a bell in you someplace.

Glenn Beck said Wednesday that the recent devaluation of China’s currency should “send a chill down your spine” and could mean China has begun “all-out economic warfare” against the west.

Beck brought on his chief researcher Jason Buttrill, who said “no one has the stomach to admit the truth” about what China has done.

“They’ve launched all-out economic warfare,” Buttrill said. “China devalued their currency, kicking off the biggest fall in over two decades. Why would a country do that to themselves? Sounds like a mistake, right? But China makes most of their money off exports, so they need a lower currency value in order to keep pumping out those cheap, plastic, ‘Made in China’ toys our kids have.”

Buttrill said the move could create a “tsunami of deflation” in western economies, leading to skyrocketing unemployment.

“But the Chinese aren’t stupid. Why are they triggering an economic war if it could crush the global economy?” he continued. “We need to look at this in context of what their overall goal is. They want to get away from that export driven economy, reduce the number of ‘Made in China’ junk shipped around the globe, and transform into a consumer-based economy [like] we have.”

Buttrill said the Chinese are betting the move will give them a short-term boost strong enough to “propel them all the way through this massive economic transformation.”

“Here’s the second part, and this is crucial,” he concluded. “China is trying to destroy the dollar. They want to be the world reserve currency, and if severe deflation kicks off a depression in the western world, the opportunity will be there for this to actually happen. … We’re seeing the beginnings of a dangerous, non-conventional war.”


What???  Let me re-post that last part again:
“China is trying to destroy the dollar. They want to be the world reserve currency, and if severe deflation kicks off a depression in the western world, the opportunity will be there for this to actually happen."

"But Dennis, China could never afford to destroy the dollar and put us in a depression!  If they put us into a depression then we won't be able to buy all their crap and THEY will go into a depression too!!...and the leaders of China would never do that because they care a great deal for all of their people!  They are kind and compassionate communists who have a long history of social welfare and caring for all 1 billion of their citizens reasonably and equitably."  (Yes this is sarcastic)

Over the last 7-8 years I have heard many peers of mine in the financial business tell me that USA has China by the nuts because if we ever stop buying their stuff then China will go into serious hurt mode.

My response has been to ask them WHO they believe could weather a prolonged, ugly depression better?.....the Chinese people, who just a few years ago were living in boxes and butchering their own back-yard chickens to eat for dinner....OR....the folks in the USA who don't even know what a chicken looks like and spend trillions of hours napping in front of their TV's watching The Bachelor as they plan their coffee date at Starbucks paid for with their EBT card?

The Chinese leaders may VERY WELL understand that they will emerge on top of the heap after the world goes through a grueling 10-15 year deep depression.  Maybe they have started the process and we are all just waiting to find out after the fact?

The guys on Glenn Beck seem to think so anyway.....


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