For years many have complained about the trade deficit between the US and China. In what is being called an “olive branch” move by China to the US, they are offering to reduce the trade deficit to zero through a massive spending program over the next six years according to a report:
China has extended the olive branch back to the United States by offering a path to eliminate Washington’s burgeoning trade deficit with the country, Bloomberg reported Friday. The news comes less than a day after The Wall Street Journal reported that the Trump administration was considering lifting tariffs amid the ongoing trade war.
China Proposes Six-Year Buying Spree
Citing sources familiar with the matter, Bloomberg reported Friday that China has offered to significantly boost its purchase of U.S. goods over a six-year period in an effort to re-balance trade between the two superpowers. By increasing its annual imports from the United States, Beijing would reduce its trade surplus to zero by 2024. That would require a spending boost of more than $1 trillion.
Last year, Beijing’s surplus with the U.S. stood at $323 billion.
Trade War Truce?
Trade talks between the U.S. and China are progressing at breakneck speed, a strong sign that both sides are looking to end the tariff dispute before March. That’s when the 90-day truce agreed to by President Donald Trump and China’s Xi Jinping is set to expire.
U.S. officials are reportedly considering lifting tariffs on Chinese imports to give Beijing a bigger incentive to negotiate a fairer trade deal. Last year, the Trump administration announced duties on $200 billion worth of Chinese goods and threatened additional tariffs if Beijing responded. Tensions have simmered down since December when the leaders of both countries met face-to-face on the sidelines of the G20 summit in Buenos Aires, Argentina.
Last week marked the first face-to-face meetings between Chinese and American trade delegates since the G20 summit. The meetings, which went a day longer than planned, resulted in China agreeing to purchase more U.S. farm and agricultural commodities. Chinese officials have also agreed to grant wider access to mainland markets to U.S. firms.
Several risks stand in the way of a comprehensive end to the trade war. Chief among them is the ongoing drama involving Huawei Technologies Corp. U.S. federal prosecutors are following up on civil lawsuits against the tech giant by launching a wider investigation into the company. According to The Wall Street Journal, the investigation has reached an advanced stage and could lead to an indictment shortly. (source, source)
St. Paul writes in his first letter to the Thessalonians: When people are saying, “Peace and security,” then sudden disaster comes upon them, like labor pains upon a pregnant woman, and they will not escape. But you, brothers, are not in darkness, for that day to overtake you like a thief. For all of you are children of the light and children of the day. We are not of the night or of darkness. Therefore, let us not sleep as the rest do, but let us stay alert and sober. (1 Thessalonians 5:3-6)
It is attributed to Meyer Amschel von Rothschild that he said “there are two ways to enslave a man, one is through force, the other is by debt.”
Finally, recall the words of former Federal Reserve Bank Chairman Alan Greenspan:
These three points alone are more than sufficient material to explain everything that one needs to know about why China is doing what she is doing.
China knows that a war with the US is coming. She has always been an aspiring superpower, even since antiquity, and each time she is able to come close to superpower status, she always fails in some major area or areas that result in her inevitable decline and conquest by foreign nations. The US views China as a geopolitical rival, and given her size and capabilities, she is not a power that is easily pushed around today.
However, as noted, China is historically conquered and destroyed by foreigners, usually her Turkic neighbors that include the Tocharians, Mongols, Manchurians, and the Japanese. She knows this and given the US progressively unshackling military restraints on Japan and the direct push by the Japanese for rapid militarization as well as the spread of Turkic and Turanian nationalism all throughout Central Asia, Siberia, and Mongolia, China knows that war is likely inevitable in the future.
In order for her to go to war, she needs massive economic expansion as well as to collect as many debts as she can so to fund her imperial projects and reduce dependence on foreign nations, especially the US. This is why the Chinese have been attempting to expand her influence into historical mining regions in Africa, namely South Africa but also parts of West and East Africa. The Americans and Europeans already know this and have not only continued and boosted their relations with the nations in these regions, but have been actively exploring more as well as engaging with nationalist groups throughout the continent at the same curious time that “terrorism,” a historical tool used by Western governments for policy reasons, has greatly increased within these same regions.
For years, many people have warned about the rise of the US trade deficit with China. They correctly point out that as debt is used to enslave and control people, that China may attempt to “call” her debts with the US and attempt to place the US into economic bondage to her.
This would be true in almost all cases. However, this does not apply to the US because the US both possesses control of the world’s reserve currency while at the same time she also has made herself the primary source of China’s wealth through intentionally destroying her own manufacturing base.
As Alan Greenspan notes, there is no debt which the US cannot pay because she has control over the printing power of the currency that the entire world uses.
China cannot actually make the US pay any debt because the ability to make a person pay his debt is the admission of the possession of force to be able to do this. China cannot force the US at gunpoint to pay, and if she was stupid enough to try this, the US would market this as an act of war, which would receive immediate public support and she would then proceed to use nuclear weapons against China. The Chinese know this.
But say that the Chinese did press the issue, and say that America gave the impression she really was being “forced” to pay, and the US actually did pay something. All she would need to do is to print money, which would cause an immediate crash in the value of the dollar, reducing people’s life savings to nothing. When this happens, the individuals in media, which is veritably owned by the financial-military-industrial complex, would start producing stories about how “China attacked America by destroying the US currency,” which would then lead to public outrage, immediate calls for nationalism, and it would be taken as an act of war by which the Americans would then use nuclear weapons on China.
But now consider that China took a different approach by saying that they will ask for the US to pay, but not demand, yet in the meantime they will stop selling products to the US. This also would not work because the US is not merely dependent on the Chinese, but more importantly it is that the Chinese are dependent on the American addiction to consumption for their survival.
It is absolutely true that the US could manufacture much of her own products at affordable prices- the Germans have done this for years. However, the US wants Chinese imports because not only does it create a deficit that can be exploited given her fiscal position, but as the US is the unquestioned largest and for many companies sole buyer of products, if the US were to stop buying Chinese products her economy would crash. The Chinese would not be able to blame this on the Americans as they would be the ones giving the order to stop selling to them, and if they tried to blame the US she would only have to present the obvious to exonerate her on a world stage. The internal economic chaos in China could trigger a political revolution that may dislodge the Communist party from power, or could lead to regional separatism that without question be encouraged by the US in silence as well as other Western nations. Russia would give the impression of helping China but in reality will not help because while they are nominally allied to China, they would rather see a divided China as that poses a smaller threat to Russia’s holdings in Siberia in comparison to a united China. To that, the Chinese “economic attack on America” as it will be presented in the media could trigger a war, but it definitely will inspire a wave of “buy American” nationalism with a likely immediate increase in domestic manufacturing in subsidies provided by the government, causing an economic boom in the US and hackneyed platitudes about how the US is now “finally free from Chinese shackles” when in reality it was always the Chinese that was in shackles they could neither see nor touch until it was too late to do anything about them.
China may have a large army, but they are stuck right now because aside from the already existing problems with her military, such as poor training, internal division, and a reliance on stolen or copied technologies with little to no successful and original innovation or inventions, the Chinese are in economic bondage to the US and they know it. The only serious option they have is to attempt to balance the trade deficit, and as they cannot do this through reducing sales to the US in a meaningful way, they have to spend money to attempt to bring about some sort of equilibrium.
The US may agree to all or part of this in name, but not in practice because she knows China’s intentions. If there is any nation the US will seriously spend money on, it will be her ally in Japan as well as the nations of southeast Asia, and in particular Myanmar as those areas provide a large quantity of the rice and other foodstuffs that China imports to feed her people.
The Chinese are proposing peace, because they know that war is coming, a war that both they and the US are feverishly preparing for.
Debt is a form of slavery, but given how the US controls the means of financial exchange and that she is the largest and many times sole buyer of Chinese products, it is China that is enslaved to her.