The Ugly Truth About The Trade War

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'The Ugly Truth About The Trade War'



Ultimately the circus and the confusion are only products of peoples biases. They want to believe they will get a treat if they act a certain way when certain indicators signal. They want to believe the trade war can be won, or at least that Trump is trying to win. They want to believe that the Fed will save them with a surge of QE. They want to believe that the instability will be smoothed away by the hands of the political and banking elites. But what if the elites have no intention of doing this? What if they WANT an economic crisis?


In terms of the trade war, there are some facts that do not support some of the assumptions out there on either side of the debate. These facts run contrary to the mainstream narrative, as well some narratives within the alternative media. On the conservative side I 'm seeing a kind of artificial patriotic fervor; an organized attempt using memes and propaganda to convince conservatives that the trade war requires mindless fealty to the anti-China message.


First, to be clear, I think China is a despicable communist regime with a record of human rights abuses, but that's what makes it a rather perfect distraction for Americans on the political right. I'm reminded of the war fever against Iraq after 9/11, and how so many conservatives bought into the very thin claim of Iraqi involvement and the lies about WMDs. We don't like dictators, and we don't like China, but conservatives are being duped into thinking the trade war against China is an ideological crusade that will lead to a better America, or a better world. This is not what the trade war is intended to do.


Let's start with the assumptions (as well as lies and disinformation) surrounding the trade war and then look at the evidence that debunks them...


Fallacy #1: China Is Dependent On The US Consumer

Fallacy #2: Manufacturing Will Come Back To The US

(1) Manufacturing in the US makes up only 11% of total economic output. I don't think that many people understand the consequences of this. We have a 70% retail and service based economy, meaning the majority of US citizens in the job market have no experience whatsoever in the manufacturing sector, and the average US company has no guidelines for how to establish a manufacturing base using the American labor pool.


(2) American labor expects a certain level of wage compensation as well as union organization that makes manufacturing far more expensive here than in China or in other parts of the world. The average factory worker in China makes around $3.60 per hour – how exactly would the American market ever compete with this? Tariff's alone are not enough to force corporations to spend the billions necessary to rebuild factories in the US and hire American workers at $15+ an hour. It's just not going to happen.


(3) There are many places besides China to build a manufacturing base. No company is going to bring its factories to the US when they can build in Vietnam, or Taiwan etc. In many cases, it is cheaper to ship raw materials and products to these countries, have them finished by workers in Asia, and then have the items shipped back, than it is to build the product from start to finish in the US.


(4) We can talk all day about patriotism, but in the end the average American is not going to buy “Made in USA” for most goods out of a sense of patriotic duty if the price is twice as much or more. Walmart and Amazon dominate the retail market for a reason – they sell things cheap


(5) Raising tariffs on foreign exporters would only work to encourage consumption of domestically manufactured goods if the US already had a large manufacturing base and produced all the items other nations produce. Entering into a trade war without a resilient manufacturing sector is backwards. You don't fight a trade war to get manufacturing to come back, you fight a trade war to promote the goods you already manufacture.

If Trump had really intended to bring factories back to the US, he should have given corporations tax break incentives in exchange for creating manufacturing jobs on US soil. Instead, he gave corporations tax break incentives for nothing.

Fallacy #3: China Will Starve Without American Agricultural Products

Fallacy #4: The World Will Side With The US Over China

Fallacy #5: The Trade War Will Be Over Soon

Fallacy #6: The US Dollar Is Untouchable



The trade war is the perfect cover for the collapse of the US dollar that the globalists desire. While some people suggest that China's dumping of US treasuries is the “nuclear option” in the trade war, this is not exactly true. The REAL nuclear option is for China to dump the US dollar as the reserve trade mechanism and go to a basket of currencies, which the IMF will happily aid them with. As the largest exporter/importer in the world, China can drop the dollar and most of their trading partners will follow their lead. The US economy would crumble in response, as the dollar is the only thread holding our system together.


This is the ugly truth behind the trade war. It is nothing more than a farce, a smoke and mirrors distraction leading up the the dismantling of the US dollar and paving the way for the globalist one world digital currency system. Whether or not the plan succeeds relies on ample resistance from people who see the danger ahead, but make no mistake, the globalists are not afraid of an economic crash or the decline of the dollar; they WANT these things to happen so they can establish even more centralized control.


[link to www.alt-market.com]