Key points within the article to consider:
America Loses When The Trade War Becomes A Currency War
There has been a longstanding narrative in economic circles that no matter what crisis occurs the U.S. dollar is essentially invincible. I have never been one to buy into this assumption.
Reason 1: Because I remember distinctly just before the derivatives and credit crisis in 2007/2008 the majority of mainstream economists were so certain that U.S. housing and debt markets were invincible, and they were terribly wrong. Whenever the mainstream financial media are confident of an outcome, expect the opposite to happen.
Reason 2: Because karma has a way of crushing grand illusions. When you proudly declare a Titanic “unsinkable,†nature or fate often tests that resolve and finds it wanting.
Reason 3: Because I understand that a primary goal of the internationalist, globalist, anti-sovereignty and New World Order crowd is to diminish U.S. economic performance dramatically, and this includes ending the reserve status and petro-status of the dollar in order to make way for a single global currency unit dictated by a single global economic administrator.
Mindless blind faith in the dollar (and U.S. treasury debt) seems to switch sides politically according to whose narrative it best suits
...there is indeed a global war brewing between major powers, but that this war will be fought primarily with financial weapons, not nukes. I also summarized my position that this war will be engineered by globalists deliberately to provide cover for something they call the “great economic reset.â€
...The U.S. has only two major points of leverage in a trade war.
First, the U.S. dollar’s world reserve status, which I have already addressed as not a point of leverage at all unless the Fed continues stimulus indefinitely.
Second, the U.S. consumer.
U.S. consumers and corporate buyers are sitting at historically high debt levels. In fact, their debt levels are higher than they were just before the crash of 2008.
...Without a massive resurrection of American manufacturing and production, we enter into a trade war with little ammunition because we remain dependent on foreign production and goods
Key takeaways that I gleaned from this that reinforce my position on where we sit and what comes next:
We are not invincible. We are already in decline and fracturing at a high rate of speed politically and culturally. Our currency is fiat and held up by debt and more debt with TRILLIONS in deficit spending for government and unfunded liabilities and other sundries to the tunes of many TENS OF TRILLIONS - more debt than exists wealth of the entire planet.
I am still convinced that whatever 'event' sets that avalanche of consequences tumbling down - Weimar will be seen as a picnic in comparison to what will unfold here. The world is already moving away from the system that has existed since the end of WWII and making plans with other currencies to replace ours as the world reserve currency. Deadly to a nation that no longer manufactures anything and what limited things it does, requires foreign materials to manufacture.
Meanwhile, government continues to spend trillions while ensconcing itself into permanent power over our lives.
Survival is always dependent on the potential victim understanding the reality of risks and knowing where the exits are and what to do in an event.
