by Amy S.
The news that on Sunday China signed a massive free trade deal with fifteen Asia Pacific Nations confirms China is busy cutting a path forward even as much of the world is in economic turmoil due to covid-19. This is a major victory in that it encompasses almost one-third of all global economic activity. It also gives the impression the United States is being left out in the cold. The Regional Comprehensive Economic Partnership, or RCEP, establishes the world’s largest trading block. It was signed virtually during the annual summit of the 10-nation Association of Southeast Asian Nations (ASEAN).
Despite constant reassurances from federal overseers, Americans are becoming increasingly aware of the economy’s frail nature.
While media pundits and analysts desperately push the failure of central planning and Keynesian economics, these five experts continue to be proven right on the dangers of reckless spending and debt.
Renowned experts who warned of the now-present, slow-motion financial collapse. With currencies being rapidly devalued by their respective governments, the global economy in a slow-down, and tensions over resources heating up around the world, it’s time to start considering the endgame. If we all talk about the end game and a scenario of total collapse, I can see the governments telling everybody that your money is now worthless and the bonds you own are now worthless. You all have to take a haircut. The controlled media tells us that it is a symptom of corporate greed and an accidental occurrence. The truth is that recently released central bank cartel documents show that the entire global financial melt-down in a purposefully engineered consolidation. The following is a transcript of an interview with award-winning investigative journalist Greg Palast in which Palast blows the IMF World Bank program of slavery wide open.
The EU has instituted the confiscation of bank accounts, which can be expected to become an international form of governmental theft. Food Shortages Riots. These will likely happen spontaneously due to the above conditions, but if not, governments will create them to justify their desire for greater control of the masses. Martial Law. The US has already prepared for this, with the passing of the 2012 National Defense Authorization Act (NDAA)
Long-term food supplies, barterable goods, monetary goods, self defense armaments and having a well thought out preparedness plan The United States and Germany are prepared to engineer a coup in Greece to keep the country operating as a strategic asset on NATO’s vulnerable southeast European flank. Greek Military is an Operation Gladio Asset The wild breakout in German yields is rocking global debt markets, and giving investors an early glimpse of the uneasy future for bonds in a world of higher interest rates.
Economic analyst GERALD CELENTE about the recent bank run in China on P2P lenders as countless people hit the streets. Chinese household debt has climbed 40% in the past year alone. To top off that problem, one of the most at risk financial sectors has reached its inevitable end.
Nothing is going to be the same after this. On Friday, the United States hit China with 34 billion dollars in tariffs, and China immediately responded with similar tariffs. If it stopped there, this trade war between the United States and China would not be catastrophic for the global economy. But it isn’t going to stop there. Donald Trump is already talking about hitting China with an additional 500 billion dollars in tariffs, which would essentially cover pretty much everything that China exports to the U.S. in a typical year. The Chinese have accused Trump of starting “the biggest trade war in economic history”, and they are pledging to fight for as long as it takes.
As I discussed yesterday, the only way that one side is going to “win” this trade war is if the other side completely backs down, and that simply is not going to happen. So there is going to be economic pain, and that pain is likely to intensify for as long as this trade war persists. U.S. businesses that will be affected by foreign tariffs are already cutting back production and laying off workers, and CNN is reporting that 1,300 products have suddenly become more expensive for U.S. consumers. There will be nowhere that anyone can hide from this trade war, and it will ultimately affect every single man, woman and child in the entire country.
Most Americans are not paying any attention to these ongoing developments, but the Chinese sure are.
The world’s leading superpowers are locking horns. Over the past 16 months America and China have been trading blows through tariffs on goods. The impact is being felt on industries worldwide. But what is the story behind the America-China trade war?
So the trade war, what have you guys been looking at? The US doesn’t like that China is growing so fast and set to overtake America as the biggest economy in the world if it hasn’t already by certain measures. Basically China and the US are caught in this race of imposing tariffs on each other so the US slaps a high tariff on certain products then China retaliates.
It’s multiple industries across multiple markets, it’s huge. And I think right now would be a really good time to look at what’s happened how it could impact the world from now on.
At The Economist, we’ve been covering the trade war extensively Soumaya Keynes is our trade and globalisation editor based in Washington, DC.
How did this whole trade war kick off? How did this whole trade war start? For a long time there have been frustrations that past American administrations had with the Chinese. On the 2016 presidential campaign trail you started to see some really tough rhetoric.
China’s economic rise has been dramatic. In 1978 China’s GDP at market prices was just 6% of America’s. Last year it had grown to 66%. When considering local spending power China has already overtaken America. This unprecedented growth began with President Deng Xiaoping. He started opening up China’s economy to the world in 1978 and the country quickly became “the world’s factory”. Over the next decade, exports as a share of GDP tripled and by 1988 15% of China’s exports went to America. The World Trade Organisation opened its doors to China in 2001. And it was America that ushered it in.
After joining the WTO, China became an economic superpower. But people had expected the country to also become more like a Western capitalist economy. That didn’t happen. America now claims that China achieved its growth by not playing fair. Are those claims justified?
The Trump administration has been using tariffs or taxes on imported goods to try to force the Chinese to change their ways. In July 2018 America imposed tariffs of 25% on $34bn worth of Chinese products. That almost doubled the average tariff rate on Chinese imports from 3.8% to 6.7%. And it’s American firms that have to pay that tax. But with every increase from America, came an increase from China. Since the start of the trade war China has more than doubled its average tariff rate. America’s has tripled. The fight has become overtly political because China’s tariffs are hitting President Trump’s voter base. Many counties where Trump won in the 2016 election were here in the Great Plains and these are the counties most affected by China’s tariffs.
As things stand now, a ceasefire in the trade war could be drawing near. The two leaders are hoping to agree on a “phase one” deal soon which could mean some tariffs being lifted The Trump administration wants China to buy more American produce and tighten up their intellectual property rules. If that phase one deal is signed will it be the beginning of the end of the trade war?
Even if there is a phase one deal there will be a lot of issues still to be resolved. But there’s more to the trade war than just tariffs. America has also imposed restrictions on some Chinese firms especially ones in the tech industry.
Dark Winter is coming. Biden said so himself. Lifeguard and the Mouthmaiden will drag America into the abyss to please their Chinese Masters. Biden and Kamala are going to cause the economy to nosedive as they also raise taxes, and new policies and regulations that take away more earnings and gas prices will go up. The politicians and the rich elite will enjoy more money while the rest of America struggles to make ends meet.
China’s debt boom, or “credit boom” in more palatable terms – whose true extent remains purposefully obscure – and what it might do to the Chinese economy and by extension to the global economy is starting to worry.
The annual growth in the People’s Bank of China’s measure of “total social financing” – which includes bank loans, off-balance-sheet financing, trust loans, and net corporate debt issuance – is now around 12% (about half of what it had been during the blistering surge after the Financial Crisis). That’s the official figure.
But with the muni bonds swapped for bank loans added into the equation, annual credit growth would be above 15%.
The blowout in credit initially came at the local-authority level, with provincial and municipal officials overseeing an explosion in the local government financing vehicles that became a poster child for China’s lack of transparency. Much of the money flowed into real estate, sparking a boom in prices, especially in the largest cities. Wary about affordability and potential social unrest, Beijing has periodically moved to rein in its property industry, only to relax again when economic-growth targets came under threat.
China’s debt problems are a story that’s going to keep running. Since 2007, the country has added $21 trillion of debt, and it hit a record high recently. Debt now stands at 237 per cent of GDP, according to Financial Times calculations.
“I thought they would be taking their foot off the accelerator with the debt but they haven’t done that. It has increased dramatically in the last six to 12 months,” says Roddy Snell of Baillie Gifford.
It will be a big problem for the country’s state-owned banks at some point. “It’s going to be very negative for the banks. Someone is going to have to pick up the tab and it will fall on the banks,” .
China is responsible for 27% of global investment and nearly 66% of global credit creation, and the world is “addicted” to Chinese money. Shvets and Seth think the “key” to the reflation trade is found in China’s stimulus, which drove real estate and industrial development. This, in turn, drove commodity prices significantly higher.
When the economic collapse and stock market crash occurs, it will happen quickly. No one will predict it. That’s because the signs of the economic collapse are difficult to see.
For example, the U.S. economic collapse and stock market crash happened on September 17, 2008. That’s the day panicked investors withdrew a record $140 billion from money market accounts. That’s where businesses keep the cash to fund day-to-day operations. If withdrawals had gone on for even a week, the entire economy would have halted.
If the economy collapses, you will not have access to credit.
Banks will close. That means high demand, and low supply, of food, gas and other necessities. If the economic collapse affects local governments and utilities, then water and electricity will no longer be available…
The Economic Doomsday is here. The second financial bubble is going to soon burst, and there’s nothing anyone can do about it. The Federal Reserve has set up the American economy for financial collapse for printing trillions of dollars back in 2008 and 2009.
The Federal Reserve’s policies of printing trillions of dollars back in ’08-09 have locked into place a serious financial crisis at some point in our future. Going so far as to intimate the financial collapse and market crash will occur at least some time in the next two years, “It’s unavoidable, and even Donald Trump can’t stop it.
Top economists predict that within the next 18-24 months, the imminent economic collapse will happen. The Federal Reserve has set up the American economy for financial collapse and market crash for printing trillions of dollars back in 2008 and 2009.
The Federal Reserve’s policies of printing trillions of dollars back in ’08-09 have locked into place a serious financial crisis….
After the dust has settled, the argument will be that the world was “on course” before the Brexit, before Trump and before populism. The argument will be that globalism was working and conservatives screwed it up with their selfish nationalist endeavors. After the final crash and perhaps numerous deaths from poverty and violence, the argument will be that the only conceivable solution must be a return to globalism in an extreme form; or total global centralization, so that such a tragedy will never happen again.”