Trade wars mask capital controls measures

When China was making good stuff at low cost and the USA had a credit card that was untapped, no trade barriers existed.  But now that the US credit card is tapped out and China holds a bunch of markers for past trade (i.e. dollars), the US does not want to trade back the other way in things that China wants to buy.

Trade is supposed to be about one side specializing in something and thus making it better and cheaper than the other.  Both sides have an excess of something they made but both also have things they want to acquire from others who are better at those things.

In the case of US v. China, the Chinese excelled at making everything you need in daily life with high quality and low price.   America cannot compete in these things.  But these are the things America wants to sell back into China.  This is why there is always such a big trade gap between the two.  America accepts Chinese products but has nothing the Chinese want in return.  So for decades now the Chinese have been accepting markers, debt notes if you will, in exchange for their goods.  They gave us the products, we gave them IOUs called dollars.  That is as simple, basic and honest an explanation you will ever get.

So now China is loaded down with greenbacks with the specter of inflation raising its head.  If China cannot find something to spend that money on then it will get stuck with a pile of depreciating crap money called dollars as the USA prints its way out of massive debt.  What China wants to buy is US know how, US technology, and US brain trust. The way to do this is to buy US corporations in electronics tech, medical and other high tech industries.

The currency we paid China with is supposed to be spendable on anything.  But it is not in the interest of the US to let China out of its situation at par value.  Nope, the con men running this shit show want them to take a big loss.  And the best way to do that is to present them with nothing of any value to them that they want to buy.  That, and that alone is why we are now seeing the US government scheming to "limit" the US companies that China can buy.

If you have never heard of the concept of capital controls, its simply a strong arm technique to force you to leave your wealth in a depreciating fake money regime.  When massive inflation is destroying people's savings and retirement plans, those people want to withdraw the money so they can spend it on something, anything, that will not just depreciate at the stoke of a government pen.  Corrupt government of course does not want to let any of the sheeple escape; all must be sheared of their wealth in order to settle the bill.

And so it is with the US government handling of the Chinese.  They are telling the Chinese that their money is no good here, it is effectively un-spendable. Oh sure, if the Chinese want to import US made appliances then we will allow that but why would they?  Our stuff is 2x-3x the cost with marginal if any quality improvement.  But when it comes to big ticket items that allow China to escape its holdings of US fake money, the answer is no.

The only problem with this strategy is if China cries foul, calls it what it is (theft) and either stops exporting their goods to the US or starts a war over it.  IF they stop exporting then many Chinese will be out of work but they will need to be fed still.  So it is often easier for the elite to go to war in these cases which is exactly why I listed global war as one of the likely outcomes of the collapse of the global debt Ponzi years ago when I began this blog.  The only way to stop it is for the people of both countries to rise up against their corrupt pump and dump governments and demand a better settlement.  Both American people and Chinese people are good people, most of us at least.  It is the shit at the top of each of our governments who think war is an acceptable solution to handle the global debt Ponzi that both sides agreed to participate in.