In a world of chronic shortages China has realized that commodities hold more value than cash.

The current trade war with China began at the very outset of the Trump administration. Apparently alarmed at America’s dependence on Chinese goods, particularly the extent to which its defense industries are reliant on Chinese components and rare earths, Trump had a point but may have better served to speak softly about this vulnerability. He mentioned only two dependencies, there are thousands of products that America relies on China exclusively for.

In moves that were simply anti-competitive practices he then launched in a “tech war” with China. Banning the sale of chips and semi-conductors, along with bans on Chinese 5G and Huawei the global leader in particular. Not content with that the U.S. launched a global push to pressure its “allies’ to also ban Huawei and its state of the art 5G technology. Not to be taken in isolation, the tech war was just part of an overall strategy to damage and restrain China’s economy. “Decoupling” had arrived into the general lexicon.

To an extent the measures worked, the chip shortage caused a slowdown among many tech dependent sectors, but not for long. China has developed its domestic production at a pace not possible anywhere else. It has also convinced China that it needed to greatly accelerate its self-sufficiency across all sectors.

As it stands today, America has nothing that China needs that it can’t make or buy elsewhere. America conversely needs China desperately, without China’s goods the American economy grinds to a halt. The extent of that dependency has been highlighted by Americaэs ongoing supply chain chaos. Manufacturing, retail, construction and countless other industry sectors have stalled without Chinese goods. No country in the world is as dependent on imports as the U.S. Attempts to find alternatives to China are fruitless, no other country can match the efficiency, infrastructure, economies of scale and cost that China can. American manufacturing only accounts for 20% of the American economy, self-sufficiency for Americans is a fantasy, even in the best case scenario, it is generations away.

Long spoken of is “China’s nuclear option”, dumping its dollar holdings and rendering the dollar worthless. China doesn’t want to do that. Firstly the loss of a trillion of its own dollar holdings is not to be taken lightly, and it would also damage the holdings and economies of its other trading partners around the world. Such a move would be an absolute last resort. China’s real nuclear option is the withholding of essential goods to America.

China has all but monopolised the rare earth industries, now accounting for more than 85% of global production. Without rare earths Americas tech and defence sectors would be paralysed.

Curious how President Biden signed the Uyghur Forced Labor Prevention Act, makgin American purchases of anything out of Xinjiang illegal. 

Funny thing though... all of the Chiense "rare earth" minerals come from Xinjiang and are mostly mined by Uighurs. 

Uh oh! (Head slap!)

All the seventeen critical rare earths are mined and refined in China in high volume. Some are mined in other countries in smaller volumes: developing alternative sources to China would a very lengthy process. For the foreseeable future, China decides who gets rare earths, and who doesn’t.

Unknown to many Americans the pharmaceutical industry is among the most heavily dependent of China. 80-85% of its products and precursors come from China, and there are currently few alternatives. I leave it to the reader’s imagination to visualize an America without medications, think Zombie apocalypse.

More than 131 million people — 66 percent of all adults in the United States — use prescription drugs. 

-Health policy institute at Georgetown

Some recent developments in China have given us a glimpse of the future. China is stockpiling food and other commodities at unprecedented levels. It is believed to hold more than half the world’s grain and maize already, other essential food stuffs are also being stockpiled at similar levels.

Iron ore, steel and other industrial raw materials are also being hoarded in previously unforeseen quantities. In a world of chronic shortages China has realised that commodities hold more value than cash.

More significantly, China just published a Governmental “White Paper.” It emphasises the need to conserve natural, finite resources (again think rare earths.) It also addresses the paradox that Trump was concerned about, why is China supplying parts to the U.S. military contractors? These among many other sectors will now require a “special export licence”. Read between the lines. China can apply these principles across any exported product it chooses. If they don’t like where it is headed, or what it will be used for, it isn’t going. Fertilisers, for which China accounts for about 30% of the world’s production are already banned from export. This is already forcing American many American farmers to switch from wheat to less fertiliser-intensive crops like soybeans.

China didn’t start or want this trade war, to date it is has been a one-sided assault on the Chinese economy by an increasingly desperate American government. China has not retaliated or employed any of the measures it could have in response, until now.

America now truly has its trade war, and more decoupling will follow, but from here on in, it will be on China’s terms.

…

From LinkedIN…

WHO WANTS A DOLLAR?
NOT CHINA

Dr Eamon McKinney

But America does need China – it needs the rare earths required for military production, automotive and high–tech manufacturing. All would come to a standstill without the rare earths which China has essentially monopolized.

Additionally, 85% of all Pharmaceutica used in the U.S. and their component chemicals come from China. Imagine what America would look like if supplies of
Pharmaceuticals were stopped. The truth, however unpalatable is that America needs China,

China no longer needs America.

What is now happening in China should alarm all Americans businesses. China no longer wants the dollar, China has too many dollars it doesn’t need any more of what it regards as increasingly worthless currency for tangible products.

Where trade is still being conducted many Chinese companies are no longer pricing their goods in Dollars, they are pricing in RMB and want to paid in
such. For the last 40 years, dollars came in and were exchanged into local currency, now, if you want Chinese goods, first buy RMB with your dollars.

First slide…

Second slide…

Third slide…

And China is not alone, widely unreported is the fact that many countries who are considered allies of America, The U.K, France, Germany, India and Mexico are also moving rapidly away from the Dollar and the institutions that sustain it. The swift payment system, the I.M.F. the World Bank and the Bank for International Settlements are all now being replaced by more equitable alternatives.

Trump’s tariffs have not affected China or hurt it any way. The tariffs have been paid by the American consumer. It has just added further inflationary pressure on the economy.

But that is the tip of the iceberg. Biden’s new $1.9 Trillion stimulus (actually a bailout) will plunge the dollar to new lows.

If that is not alarming enough, consider this: 40% of all the $US currently in circulation globally have been created in the last year.

The dollar has plunged in value some 15% over the last few months, and it continues to decline. We can only hope that as inflation inevitably increases
it will be gradual, the consequences of a more rapid decline are unthinkable, yet most certainly possible.

Denial appears to be the prevailing U.S. Government policy, but denial is not a useful strategy for the private sector. Companies must deal with the fact that global supply chains may soon to be a thing of the past for American companies.

As the dollar continues to decline, it’s reduced purchasing power is making foreign products uneconomical. The one positive is that the companies who have recognized these facts are bringing their supply chains home.

Re–shoring makes good economic sense, because it is possible that in the near future, the only people who will accept the US dollar are likely to only be other American companies.

…

Conclusion

You will not read about the collapse, the SHTF, or the various wars and brush fights in the American Government controlled media. But they are still going on. Here’s an insight as to what is going on.

Finance folk, bankers, accountants, and other FIRE industries have looted the United States, and gutted American society. It’s a big boated crusty shell with nothing but dust on the inside. Soon, very soon, there is going to be a mass realization of this reality.

It could be harsh, brash and catastrophic.

Or, it could be a serious of controlled implosions.

But it WILL HAPPEN.

There is no way out of this mess. None. The only thing that a person can do is hunker down in a smaller community away from the larger clusters of dependent citizenry, become active and involved in your respective communities, and be the Rufus; help others will no concern for personal profit.

I will advise you all to use all of the techniques provided on MM here to center your consciousness, and prepare.

Here’s a quick review…

• Affirmation prayer campaigns.
• Perform your Fate Forecasting, and monitor it closely.
• Center your consciousness using Hemi-sync.
• Conduct world-line travel and slides as necessary.
• Be part of your community.
• Be able to provide a service, or volunteer in your community.
• Tune out the bullshit propaganda off the “news”.
• Stock up your food larder. Have a garden.
• Trade and barter with neighbors.
• Ride a bicycle more often. Use the car less.
• Surround yourself with cats, or dogs, or other animals.
• Be kind. Be calm. Be neighborly.

Make your little area a bubble of kind softness. That way, no matter what changes hits your world, your little area will be mostly immune to them. Be great; be the Rufus.

I believe in you.

Do you want more?

You can find more articles related to this in my latest index; A New Beginning. And in it are elements of the old, some elements regarding the transition, and some elements that look towards the future.

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