Checkmate, Trump’s China Syndrome (Videos)

by N.Morgan

 

The complicated and complex relationship between China and the United States spans the pages of history.

China has notoriously taken advantage of the goodwill shown by the United States on the financial front and the trading scene.

President Trump has been very open in his opinion about how for years China has been unfair in its trade practices with the United States.

President Trump: “China has consistently taken advantage of the American economy with practices that undermine fair and reciprocal trade”.

Examples of unfair trading are:

  • China has pursued industrial policies and unfair trade practices—including dumping, discriminatory non-tariff barriers, forced technology transfer, overcapacity and industrial subsidies—that champion Chinese firms and make it impossible for many United States firms to compete on a level playing field.
  • China’s industrial policies, such as its “Made in China 2025” plan, harm companies in the United States and around the world.
  • China imposes much higher tariffs on United States exports than the United States imposes on China.
    • China’s average tariff rate is nearly three times higher than the average United States rate.
    • Certain products are even more imbalanced. For instance, the United States charges a 2.5 percent tariff on Chinese cars, while China currently maintains a 25 percent tariff on cars from the United States.
  • China has banned imports of United States agricultural products such as poultry, cutting off America’s ranchers and farmers from a major market for their goods.
  • China has dumped and unfairly subsidized a range of goods for the United States market, undermining America’s domestic industry.
    • In 2018 alone, the Trump Administration has found dumping or unfair subsidies on 13 different products, including steel wheels, cold-drawn mechanical tubing, tool chests and cabinets, forged steel fittings, aluminum foil, rubber bands, cast iron soil pipe and fittings, and large diameter welded pipe.
  • In January 2018, the Trump Administration found that China’s overproduction of steel and aluminum, and the resulting impact on global markets, is a circumstance that threatens to impair America’s national security.
  • The United States has run a trade in goods deficit with China for years, including a $375 billion deficit in 2017 alone.

China has aggressively sought to obtain technology from American companies and undermine American innovation and creativity. There have recently been reports that China actively sends Chinese “agents” to the United States, often disguised as students, to learn about and steal new technologies and intellectual resources.

  • The value of China’s intellectual property theft costs United States innovators billions of dollars a year, and China accounts for 87 percent of counterfeit goods seized coming into the United States.
  • United States Trade Representative’s (USTR) Section 301 investigation identified four of China’s aggressive technology policies which put 44 million American technology jobs at risk:
    • Forced technology transfer;
    • Requiring licensing at less than economic value;
    • Chinese state-directed acquisition of sensitive United States technology for strategic purposes; and
    • Outright cyber theft.
  • China uses foreign ownership restrictions, administrative review and licensing processes to force or pressure technology transfers from American companies.
    • China requires foreign companies that access their New Energy Vehicles market to transfer core technologies and disclose development and manufacturing technology.
    • China imposes contractual restrictions on the licensing of intellectual property and technology by foreign firms into China but does not put the same restrictions on contracts between two Chinese enterprises.
  • China directs and facilitates investments in and acquisitions of United States companies to generate large-scale technology transfer.
  • China conducts and supports cyber intrusions into United States computer networks to gain access to valuable business information so Chinese companies can copy products.

President Trump has begun taking long overdue action to finally address the source of the problem, the unfair trade practices of China which hurt America’s workers and our innovative industries.

The Chinese Revolution of 1949

On October 1, 1949, Chinese Communist leader Mao Zedong declared the creation of the People’s Republic of China (PRC). The announcement ended the costly full-scale civil war between the Chinese Communist Party (CCP) and the Nationalist Party, or Kuomintang (KMT), which broke out immediately following World War II and had been preceded by on and off conflict between the two sides since the 1920’s. The creation of the PRC also completed the long process of governmental upheaval in China begun by the Chinese Revolution of 1911.

The “fall” of mainland China to communism in 1949 led the United States to suspend diplomatic ties with the PRC for decades.

The outbreak of the Korean War, which pitted the PRC and the United States on opposite sides of an international conflict, ended any opportunity for accommodation between the PRC and the United States. Truman’s desire to prevent the Korean conflict from spreading south led to the U.S. policy of protecting the Chiang Kai-shek government on Taiwan.

For close to thirty years after the Chinese revolution of 1949, there were few contacts, limited trade and no diplomatic ties between the two countries.

Until the late 1970s, the United States continued to recognize the Republic of China, located on Taiwan, as China’s true government and supported that government’s holding of the Chinese seat in the United Nations.

History of Chinese Foreign Trade

Beginning in the late 1970s, China reversed the Maoist economic development strategy and, by the early 1980s, had committed itself to a policy of being more open to the outside world and widening foreign economic relations and trade.

The opening up policy led to the reorganization and decentralization of foreign trade institutions, the adoption of a legal framework to facilitate foreign economic relations and trade, direct foreign investment, the creation of special economic zones, the rapid expansion of foreign trade, the importation of foreign technology and management methods, involvement in international financial markets and participation in international foreign economic organizations.

These changes not only benefited the Chinese economy but also integrated China into the world economy.

In 1985, the United States had just begun a growing trade deficit with China. During the 1990s, the United States trade deficit became a more excessive long-running trade deficit, mostly with Asia. By 2012, the U.S. trade deficit, fiscal budget deficit, and federal debt had increased to record or near-record levels following the implementation of broad unconditional or unilateral United States free trade policies and formal trade agreements during the preceding decades.

China has seen substantial economic growth over a 50 year period, and at a nuclear-security summit which took place in early 2010, President Obama hoped to ensure another 50 years of growth between the two countries. On April 19, 2010, President Obama met with China’s President Hu Jintao to discuss trade policies between the two countries.

The U.S.–China Relations Act of 2000 was an act which granted permanent normal trade relations to China; it was signed on October 10, 2000, by President Bill Clinton.

Prior to passage of the bill, China was subject to an annual review of its trade status with the United States. The act removed the review, eased some trade barriers and facilitated China’s entry into the World Trade Organization.

Despite growing commercial ties, the bilateral economic relationship (between China and the United States) has become increasingly complex and often fraught with tension. From the United States’ perspective, many trade tensions stem from China’s incomplete transition to a free market economy.

While China has significantly liberalized its economic and trade regimes over the past three decades, it continues to maintain (or has recently imposed) a number of state-directed policies that appear to distort trade and investment flows.

Major areas of concern expressed by United States policymakers and stakeholders include China’s alleged widespread cyber economic espionage against US firms; relatively ineffective record of enforcing intellectual property rights (IPR); discriminatory innovation policies; mixed record on implementing its World Trade Organization (WTO) obligations; extensive use of industrial policies (such as subsidies and trade and investment barriers) to promote and protect industries favored by the (Chinese) government; and interventionist policies to influence the value of its (China’s) currency.

Many United States policymakers argue that such policies adversely impact our economic interests, and have contributed to United States’ job losses in some sectors.

United States-China trade rose rapidly after the two nations reestablished diplomatic relations in January 1979, signed a bilateral trade agreement in July 1979 and provided mutual most-favored-nation (MFN) treatment, beginning in 1980.

In that year (which was shortly after China’s economic reforms began), total United States-China trade (exports plus imports) was approximately $4 billion.

China ranked as the United States’ 24th largest trading partner, 16th largest export market and 36th largest source of imports. In 2017, total U.S. merchandise trade with China was $636 billion, making China the United States’ largest trading partner.

Currently, President Trump is attempting to turn these failed trade policies around. The required chnages will not happen without some suffering, but once the pain is over, America will prosper again. The liberal left has been pushing their New World Order for some time now, and President Trump’s new China policy could turn the tables on the globalists.

[SOURCE]

References

https://history.state.gov/milestones/1945-1952/chinese-rev

https://en.wikipedia.org/wiki/History_of_trade_of_the_People%27s_Republic_of_China

https://en.wikipedia.org/wiki/Foreign_trade_of_the_United_States

https://fas.org/sgp/crs/row/RL33536.pdf

http://beforeitsnews.com/military/2018/06/chinese-national-arrested-for-conspiring-to-illegally-export-u-s-origin-goods-used-in-anti-submarine-warfare-to-china-2481675.html

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Smoking Gun 2021 – The Year of the Collapse — Lynette Zang (Video)

by N.Morgan 

We are all aware of the crimes of the “too big to fail” international banks, including the rigging of LIBOR rates,  which dwarfs even the magnitude of their precious metals markets manipulation.

These manipulations have gotten so atrocious that the banks are attempting to ditch LIBOR altogether by 2021.

According to Bloomberg, “The 50-year-old global borrowing benchmark that became a byword for corruption,  is headed for the trash heap of history.”

In this installment of the SGTreport Lynette Zang discusses what this will mean for the more than $350 trillion in securities which LIBOR underpinned, is nothing short of a calamity: a total collapse.

The clock has been ticking since long before the 2008 crisis, and Lynette believes the global debt bomb will finally detonate in 2021.

 

[SOURCE]

References:

https://www.youtube.com/watch?v=EKja6BB6Z6s

https://www.bloomberg.com/news/articles/2017-07-27/libor-to-end-in-2021-as-fca-says-bank-benchmark-is-untenable-j5m5fepe

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The Coming Run On Banks & Pensions (Video)

Guest Contributor John Rolls

“There are folks that are saying you know what, I don’t care, I’m going to lock in my retirement now and get out while I can and fight it as a retiree if they go and change the retiree benefits,” he said. – Executive Director for the Kentucky Association of State Employees, Proposed Pension Changes Bring Fears Of State Worker Exodus

The public awareness of the degree to which State pension funds are underfunded has risen considerably over the past year. It’s a problem that’s easy to hide as long as the economy is growing and State tax receipts grow. It’s a catastrophe when the economic conditions deteriorate and tax revenue flattens or declines, as is occurring now.

Quote above references a report of a 20% jump in Kentucky State worker retirements in August after it was reported that a consulting group recommended that the State restructure its State pension system. I personally know a teacher who left her job in order to cash completely out of her State employee pension account in Colorado (Colorado PERA). She knows the truth.

The problem with under-funding is significantly worse than reported. Pensions are run like Ponzi schemes. As long as the amount of cash coming in to the fund is equal to or exceeds beneficiary payouts, the scheme can continue. But for years, due to poor investment decisions and Fed monetary policies, beneficiary payouts have been swamping investment returns and fund contributions.

Pension funds have notoriously over-marked their illiquid risky investments and understated their projected actuarial investment returns in order to hide the degree to which they are over-funded. Most funds currently assume 7% to 8% future rates of return. Unfortunately, the ability to generate returns like that have been impossible with interest rates near zero.

The quest to compensate for low fixed income returns, pension funds have plowed money into stocks, private equity funds and illiquid and very risky investments, like subprime auto loan securities and commercial real estate. Some pension funds have as much as 20% of their assets in private equity.

When the stock market inevitably cracks, it will wipe pensions out.

An example of pensions over-estimating their future return calculations, the State of Minnesota adjusted the net present value of its future liabilities from 8% down to 4.6% (note: this is the same as lowering its projected ROR from 8% to 4.6%). The rate of under-funding went from 20% to 47%.

I can guarantee you with my life that if an independent auditor spent the time required to implement a bona fide market value mark-to-market on that fund’s illiquid assets, the amount of under-funding would likely jump up to at least 70%. “Bona fide mark-to-market” means, “at what price will you buy this from me now with cash upfront?”


Instance, what is the true market price at which the fund could sell its private equity fund investments? Harvard is trying to sell $2.5 billion in real estate and private equity investments. The move was announced in May and there have not been any material updates since then other than a quick press release in early July that an investment fund was looking at the assets offered. I would suggest that the bid for these assets is either lower than expected or non-existent other than a pennies on the dollar “option value” bid.

At some point current pension fund beneficiaries are going to seek an upfront cash-out. If enough beneficiaries begin to inquire about this, it could trigger a run on pensions and drastic measures will be implemented to prevent this.

Similarly, per the sleuthing of Wolf Richter, ECB is seeking from the European Commission the authority to implement a moratorium on cash withdrawals from banks at its discretion. The only reason for this is concern over the precarious financial condition of the European banking system.

And it’s not just some cavalier Italian and Spanish banks. I would suggest that Deutsche Bank, at any given moment, is on the ropes.

But make no mistake. The U.S. banks are in no better condition than their European counter-parts. If Europe is moving toward enabling the ECB to close the bank windows ahead of an impending financial crisis, the Fed is likely already working on a similar proposal.

All it will take is an extended 10-20% draw-down in the stock market to trigger a massive run on custodial assets – pensions, banks and brokerages.

This includes the IRA’s. I would suggest that one of the primary motivations behind the Fed/PPT’s no-longer-invisible hand propping up the stock and fixed income markets is the knowledge of the pandemonium that will ensue if the stock market were allowed to embark on a true price discovery mission.

Every other attempt throughout history to control the laws of economics and perpetuate Ponzi schemes, the current attempt by Central Banks globally will end with a spectacular collapse. I would suggest that this is one of the driving forces underlying the repeated failure by the western Central Banks to drive the price of gold lower since mid-December 2015.

I would also suggest that it would be a good idea to keep as little of your wealth as possible tied up in banks and other financial “custodians.” The financial system is one giant “Roach Motel” – you check your money in but eventually you’ll never get it out.

(SOURCE)

See more articles by John Rolls

References:

http://investmentresearchdynamics.com/the-coming-run-on-banks-and-pensions/

http://wkyufm.org/post/proposed-pension-changes-bring-fears-state-worker-exodus#stream/0

 

The Empire Strikes Back – At Bitcoin

Guest Contributor John Rolls

One of the uncertainties with cryptocurrencies has always been how governments would react once bitcoin and its kin got big enough to actually threaten the monopolies of national fiat currencies.

That day seemed to be approaching as cryptocurrencies’ aggregate market cap blew through $100 billion and the pipeline of new bitcoin wannabes (initial coin offerings, or ICOs) swelled into the hundreds. Even – in a classic sign of a bubble top — Paris Hilton got involved:

 

Hotel Heiress Paris Hilton Is the Latest Celebrity to Promote an ICO

(Coin Desk) – Celebrity heiress and reality TV star Paris Hilton has taken to Twitter to announce her participation in a token sale, or ICO.

Called Lydian, the venture claims the project is developing “blockchain driven technologies to reduce ad fraud and to maximize the effectiveness of ad marketing expenditures.” The idea has been floated by a number of projects of late, including efforts backed by advertising industry participants.

In the tweet, Hilton wrote:

Looking forward to participating in the new @LydianCoinLtd Token! #ThisIsNotAnAd #CryptoCurrency #BitCoin #ETH #BlockChain pic.twitter.com/a8kT9eHEko  — Paris Hilton (@ParisHilton) September 3, 2017

And lately governments have indeed begun to defend their turf. The US Internal Revenue Service decided that since cryptocurrencies were clearly not money (only the dollar is money!) they must be commodities, which means every transaction creates a taxable gain or loss. In August the IRS drove the point home by unveiling software that can track supposedly anonymous crypto transactions:

The IRS Has Special Software to Find Bitcoin Tax Cheats

(Fortune) – One benefit of using bitcoin is the digital currency can be anonymous—its owners can move money around the world without revealing who they are. Well, in theory at least. In reality, bitcoin is less secret than people think.

The latest reminder of this comes via a report that the Internal Revenue Service is using software to unmask bitcoin users who have failed to report profits. According to a contract unearthed by the Daily Beast, the IRS is paying a company called Chainalysis to help identify the owners of digital “wallets” that users employ to store their bitcoins.

In a letter to the IRS, the co-founder of Chainalysis says the company has information on 25 percent of all bitcoin addresses and that it deploys millions of tags to help track and identify transactions.

The decision by the IRS to license the software of Chainalysis, which is based in Switzerland with an office in New York, appears to be part of the agency’s larger campaign to target digital currency users who have failed to pay tax.

As Fortune reported earlier this year, the IRS claims only 802 people declared a capital gain or loss related to bitcoin in 2015. This is significant since the price of bitcoin soared from around $13 to over $1100 between 2013 and 2015, and hundreds of thousands (like millions) of Americans bought and sold digital currency during this time—in other words, there are many people who face bitcoin-related tax trouble, and the IRS is tracking some of them down.

Then China decided it had had enough of the dot-com-like tsunami of new digital currencies pouring into its economy, and banned future releases, crashing the price of most extant cryptocurrencies.

China Halts Initial Coin Offerings

(Bloomberg) – Bitcoin tumbled the most since July after China’s central bank said initial coin offerings are illegal and asked all related fundraising activity to be halted immediately, issuing the strongest regulatory challenge so far to the burgeoning market for digital token sales.

The People’s Bank of China said on its website Monday that it had completed investigations into ICOs, and will strictly punish offerings in the future while penalizing legal violations in ones already completed. The regulator said that those who have already raised money must provide refunds, though it didn’t specify how the money would be paid back to investors.

It also said digital token financing and trading platforms are prohibited from doing conversions of coins with fiat currencies. Digital tokens can’t be used as currency on the market and banks are forbidden from offering services to initial coin offerings.

“This is somewhat in step with, maybe not to the same extent, what we’re starting to see in other jurisdictions — the short story is we all know regulations are coming,” said Jehan Chu, managing partner at Kenetic Capital Ltd. in Hong Kong, which invests in and advises on token sales. “China, due to its size and as one of the most speculative IPO markets, needed to take a firmer action.”

Bitcoin tumbled as much as 11.4 percent, the most since July, to $4,326.75. The ethereum cryptocurrency was down more than 16 percent Monday, according to data from Coindesk.

And apparently there’s more coming:

ICO crackdown may just be the start: China is reportedly planning tighter cryptocurrency rules

(CNBC) – China is poised to further tighten rules on virtual currencies after regulators on Monday banned virtual coin fundraising schemes, Chinese financial news outlet Yicai reported, citing sources.

China banned and deemed illegal the practice of raising funds through launches of token-based digital currencies, targeting so-called initial coin offerings (ICO) in a market that has exploded since the start of the year.

Yicai’s report late Monday cited a source close to decision-makers as saying the announcement on the ban was just the start of further follow-up regulations of virtual currencies.

The above raises two big questions. First, how will cryptocurrencies fare in a world of increasingly strict and complex regulations? Second, what kinds of assets stand to benefit if cryptocurrencies cease to function as “digital gold”?

The first question is a tough one, because it involves the interplay of governments, revolutionary tech and free markets, which means pretty much anything is possible. The second, though, is easier: If digital gold falters, real gold wins:

Mobius Foresees Cryptocurrency Crackdown Sparking a Rush to Gold

(Bloomberg) – Mark Mobius is sensing danger in the explosive growth of cryptocurrencies.

Governments will begin clamping down on digital currencies because of their use in illicit financing, with terrorist groups to drug dealers contributing to their rise, Mobius, executive chairman at Templeton Emerging Markets Group, said in an interview in Hong Kong Monday.

“Cryptocurrencies are beginning to get out of control and it’s going to attract the attention of governments around the world,” Mobius said. “You’re going to get a reversion back to gold because people are going to wonder, can I really trust these currencies?”

Mobius isn’t the only one voicing concern. Bank of America Merrill Lynch was cautious around bitcoin in July, saying there were a lot of obstacles, such as theft and hacking risks, that make it unlikely it will gain the status of pledgeable collateral.

“People need a means of exchange and they need to trust that,” said Mobius, who was interviewed before China’s announcement. “Right now the trust is good — with bitcoin people are buying and selling it, they think it’s a reasonable market — but there will come a day when government crackdowns come in and you begin to see the currency come down.”

(SOURCE)

See more articles by John Rolls

Reference:

https://www.bloomberg.com/news/articles/2017-09-04/mobius-foresees-cryptocurrency-crackdown-sparking-a-rush-to-gold

 

 

Dr. Jim Willie: Red Alert! Is the US Economy in a Bubble 2017 2018 Economic Collapse (Video)

Guest Contributor, Jeffery Pritchett

Jim Willie CB is a statistical analyst in marketing research and retail forecasting. He holds a PhD in Statistics.

His career has stretched over 25 years.

He aspires to thrive in the financial editor world, unencumbered by the limitations of economic credentials.

Visit his free website to find articles from topflight authors at http://www.GoldenJackass.com.

For personal questions about subscriptions, contact him at JimWillieCB@aol.com

DEFINITION of ‘Economic Collapse ‘ An economic collapse is essentially a severe version of an economic depression, where an economy is in complete distress for months, years or possibly even decades. A total economic collapse is characterized by economic depression, civil unrest and highly increased poverty levels.

(SOURCE)

A note from Jeffery: I host the Church of Mabus radio show and it is going on 8 years. I’ve been in the paranormal community for 20 years.

I provide content from a network of sources and guests and allies. Ranging from Politics to the Paranormal and the Spiritual. You can check out my other articles here at my BIOGRAPHY at BIN and you can check out my free radio show at this link HERE.

Thanks for showing your support and stopping by!

Ending Will Be Financial Collapse Where Credit Stops- Bill Holter (Video)

by N.Morgan

The price of gold and silver have experienced an uptick in value recently.

Financial writer Bill Holter, a precious metals broker, says price is irrelevant to the average investor.

It is possession that is most important now.

Holter explains, “I think the streets are going to be completely cleaned of gold and silver, and they are going to go ‘no offer.’

There will be bid, bid, bid and higher, higher, higher, and there won’t be any for sale.

Gold and silver will go into hiding until new currencies come out that can be trusted. I think that’s where we’re headed.

You should buy it now because it’s available. At some point in time, it’s not going to be available, and you are either going to have it or you won’t.

The price won’t matter. You will count your wealth in ounces.”

In closing, Holter states, “The timing on this is who knows? September or October or next year, I don’t know. I do know what the ending is.

The ending is a financial collapse where credit stops and people figure out the asset they hold is someone else’s liability. . . .

Why not have an asset with no liability, which is gold and silver.”

 

Reference

 

Are Central Banks Preparing for the Demise of the Dollar? Crucial Interview With G. Edward Griffin (Video)

(N.Morgan) As the world becomes accustomed to Donald J.Trump presidency,  FutureMoneyTrendshas living Legend G. Edward Griffin to explain the current outlook in the White House and the future of the economy.

In this interview, a major fact is discussed regarding how the Federal Reserve has never been a federal institution and how it has been utilized to strangle and control the economy with its parasitic grasp.

 

Topics discussed in this interview:

02:25 The Trump Presidency Vs. the Deep State

05:45 Trump and Kissinger’s meet up

10:45 Importance of Sovereignty and the Monetary System

13:10 Outlook on the non-Governmental Federal Reserve

20:45 The relationship between The FED and Stock Market

24:45 The awakening against corruption!

30:05 Where to learn more about the Red Pill Expo

[SOURCE]

References:

https://www.youtube.com/channel/UCqJpLtXR8hYkYhkxDO6WYwg

http://futuremoneytrends.com/

More Stories Contributed By N. Morgan