https://www.zerohedge.com/sites/default/files/inline-images/suntzu1.jpg?itok=aqEU7_W2
[SIZE=7]SITUATION REPORT: China Has Been Preparing For A Trade War For Over A Decade[/SIZE]
[COLOR=rgb(0, 0, 0)][SIZE=5]The crash of 2008 brought with it a host of strange economic paradigms rarely if ever seen in history; paradigms which have turned normal fiscal analysis on its head.[/SIZE]
[COLOR=rgb(0, 0, 0)][SIZE=5]One country has been pursuing an opposite strategy for many years now -hide it’s economic preparedness for than its weaknesses.[/SIZE]
In terms of prepping for a trade war with the U.S., China has implemented several important steps:
1. For example, for at least the past 10 years the country has been shifting away from a pure export economy and reducing its reliance on sales of goods to the U.S. In 2018, Chinese consumer purchases of goods are expected to surpass that of American consumers. For the past five years, domestic consumption in China accounted for 55-65% of economic growth.
and private consumption was the primary driver of the Chinese economy — NOT exports.
The argument that China is somehow dependent on U.S. markets and consumers in order to keep its economy alive is simply a lie. China I’d now just as enticing as a retail market as the U.S.
2. China’s own debt expansion and Treasury bond issuance actually started way back in 2005 under the “Panda Bond” program. At the time it was treated like a novelty or a joke by the mainstream economic community. Today, it is a powerhouse as Yuan denominated assets are spreading like wildfire around the world.
China no longer needs to hold dollars or dollar denominated assets in order to keep its currency weaker for export markets. It can simply inflate and monetize its own debt, just like the U.S. does. But why would China bother to do this at all? Why jump into the same debt game that has caused so much trouble for western nations?
Perhaps because they know something we don’t. During the initial phase of the derivatives crisis, the possibility of China joining the International Monetary Fund’s Special Drawing Rights basket leaped to the forefront. With the Yuan as an SDR basket member, its potential to become a financial center for global trade rather than just an export and import hub would be assured. But the IMF set certain requirements before China could join. One of these requirements was far greater currency liquidity and a more “freely usable” Yuan market. In other words, for China to join the SDR basket they would first need to go into considerable debt.
This is exactly what they did; not to prop up their banking system (though this made for a valid excuse) or to necessarily prop up their stock markets. Rather, China wanted a seat at the table of the “new world order,” and they bought that seat through massive debt expansion. China was officially included in the SDR basket in 2016.
China has been a very vocal proponent of the SDR basket system, and it becomes clear why if you understand what the globalists intend for the future of the world’s monetary framework. This plan was first outlined in the Economist magazine in 1988 in an article calling for the beginnings of a global currency in 2018. The article states that the U.S. economy and the role of the dollar as world reserve would have to be diminished, and that the IMF’s Special Drawing Rights basket could be used as a bridge to set up a single currency for all the world’s economies.
https://www.zerohedge.com/sites/default/files/inline-images/theeconomist-phoenix_get_ready_for_world_currency_by_2018.jpg?itok=bx7_zFdl
The Notorious George Soros revealed in an interview of what he called “global economic reset” in an interview in 2009; these details included a diminished American economy, a diminished dollar and for China to become a new economic engine for the world.
https://www.youtube.com/watch?v=TOjckJWqb0A:1
- Finally, China has clearly been prepping for a considerable crisis in the dollar or in the world’s economic stability as shown in its sudden and aggressive stockpiling of gold reserves the past decade. Only recently surpassed by Russia in purchases, China is one of the most aggressive national buyers of gold. An expanding gold stockpile would be an effective hedge against a collapsing dollar market. If the dollar loses its world reserve status, nations like China and Russia are placed well to mitigate the damages. Considering the fact that the IMF officially holds around 3,000 tons of gold, the globalists are also well placed for a dollar crash.