- U.S. - China trade war ushers in new world system.
The Duran’s Alex Christoforou and Editor-in-Chief Alexander Mercouris discuss the economic and political divorce unfolding between the US and China. President Trump announced last week he would add 10 percent tariffs on $300 billion of Chinese goods starting on September 1st. The move covers all goods the US buys from China. In response, Beijing allowed its currency, the yuan, to weaken to more than 7 per 1 USD, a level many analysts considered important. Trump called the slide in the Chinese yuan “a major violation.” For the first time in 15 years, the US Treasury Department proceeded to name China a currency manipulator.
My comment: Alexander Mercouris is right on the benefits inherent to mutually assured deterrence. I believe the divorce between the two super-powers is inevitable as well. And just to be clear, even though the process kicked off under Trump’s term, it was taught out well before he took office. That’s why US trade sanctions and military escalation have bipartisan support; and why pro-peace voices are labeled as “Putin stooges.” I’m also disappointed by the Chinese… they continue to put the exports sector ahead of domestic consumption. What’s the point in another devaluation of the yuan vs the USD? You retain your chunk of the US market. For what purpose? All dollars owned by the Chinese as checking and saving accounts at the US central bank are at risk, given the geopolitical situation between the two. It’s high time China recycled some of its trade surpluses in other countries, to the benefit of foreign exporters and their own citizens.
With regard to the European Union. I’m highly skeptical of any major divergence from Washington’s dictates. Western Europe is US military occupied territory. The US can strangle Europe in more ways than one – and its propaganda outlets are stronger than ever. National intelligence services of EU member states are in the USA’s pockets. A military switch of allegiance would result in economic warfare, sabotage, and widespread unrest. Regardless of who’s in the right or wrong, those who control the propaganda machine control the narrative. And unless there’s a massive economic crisis, no significant geopolitical shift will occur. The unipolar moment is gone; and new alliances are shaping the world…