This article was originally published by Michael Snyder at The Economic Collapse Blog.
We just witnessed one of the most monumental events of the entire decade, and yet most Americans still don’t understand what has happened. In recent months, the global economy and stock markets around the world have been buoyed by the hope that the U.S. and China would soon sign a new trade agreement. Unfortunately, there is no way that is going to happen now.
On Tuesday, the Senate unanimously passed the “Hong Kong Human Rights and Democracy Act of 2019”, and the House of Representatives passed the same bill by a 417 to 1 vote on Wednesday. Needless to say, the Chinese are beyond angry that Congress has done this. In part one of this article, I showed that China is warning the U.S. to “rein in the horse at the edge of the precipice” and that there will be “revenge” if this bill is allowed to become law. And it looks like this bill will actually become law because Bloomberg is reporting that President Trump is fully expected to sign it…
President Donald Trump is expected to sign legislation passed by Congress supporting Hong Kong protesters, setting up a confrontation with China that could imperil a long-awaited trade deal between the world’s two largest economies.
Before I go any further, there is something that I want to address. Earlier today, one of my readers emailed me and accused me of siding with China because I am warning about what will happen if trade negotiations fail. Of course, that is not true at all. I have been writing about the horrific human rights abuses in China for many years, and they are one of the most tyrannical regimes on the entire planet today. But our two economies have become deeply intertwined over the past two decades, and there are going to be very serious consequences now that we are rapidly becoming bitter enemies. Anyone that doesn’t see this is simply not being rational.
As I have detailed repeatedly in recent months, the global economy has already entered a very serious slowdown. One of the only things that could reverse our economic momentum in the short-term would be a comprehensive trade agreement between the United States and China. But now that our relationship with China has been destroyed, there isn’t going to be a deal.
Some mainstream news sources are reporting that all of this rancor about Hong Kong could delay a trade deal, but that is just more wishful thinking.
Over in China, they are being much more realistic. In fact, the editor of the Global Times, Hu Xijin, just said that the Chinese are “prepared for the worst-case scenario“…
Few Chinese believe that China and the US can reach a deal soon. Given current poor China policy of the US, people tend to believe the significance of a trade deal, if reached, will be limited. China wants a deal but is prepared for the worst-case scenario, a prolonged trade war.
And he followed that up with another tweet that openly taunted U.S. farmers…
So a friendly reminder to American farmers: Don’t rush to buy more land or get bigger tractors. Wait until a China-US trade deal is truly signed and still valid six months after. It’s safer by then.
As the two largest economies on the entire planet decouple from one another, it is going to cause global economic activity as a whole to dramatically slow down. Corporate revenues will fall, credit markets will start to tighten, and fear will increasingly creep into global financial markets.
I have repeatedly warned that conditions are ideal for our first major crisis since 2008, and this conflict with China could be more than enough to push us over the edge.
And already we are getting more bad economic news day after day. For example, we just learned that U.S. rail traffic this month is way down compared to last year…
Nowhere is the slowdown in the U.S. economy more obvious than in places like Class 8 Heavy Duty Truck orders and rail traffic. We already wrote about how Class 8 orders continued to fall in October and new data the American Association of Railroads (AAR) now shows that last week’s rail traffic and intermodal container usage both plunged.
The AAR reported total carloads for the week ended Nov. 9 came in at 248,905, down 5.1% compared with the same week in 2018. U.S. weekly intermodal volume was 266,364 containers and trailers, down 6.7% compared to 2018, according to Railway Age.
Unless a miracle happens with China, the economic numbers are going to continue to get worse.
Sadly, a miracle seems exceedingly unlikely now. As I pointed out in part one, the only way that our relationship with China can be fixed is if Congress repeals the bill that it just passed, and there is no way that is going to happen.
And we better hope that our trade war with China doesn’t escalate into a real war at some point.
According to a report that was released earlier this year, we are very ill-prepared to fight any sort of a conventional war with China in the Western Pacific…
The University of Sydney’s United States Studies Centre’s new report Averting Crisis, said: ‘China’s growing arsenal of accurate long-range missiles poses a major threat to almost all American, allied and partner bases, airstrips, ports and military installations in the Western Pacific.
‘As these facilities could be rendered useless by precision strikes in the opening hours of a conflict, the PLA missile threat challenges America’s ability to freely operate its forces from forward locations throughout the region.’
In addition, U.S. military officials are deeply concerned by how rapidly China has been upgrading their strategic nuclear arsenal. For example, they now possess a “submarine-launched missile capable of obliterating San Francisco”…
China has tested a new submarine-launched missile capable of obliterating San Francisco, an insider has revealed, in a massive boost to the country’s ‘deterrent’.
The Chinese navy tested its state-of-the-art JL-3 missile in Bohai Bay in the Yellow Sea last month, sources said.
The nuclear-capable missile has a 5,600 mile range, significantly longer than its predecessor the JL-2, which could strike targets 4,350 miles away.
We certainly aren’t at that point yet, but without a doubt the Chinese now consider us to be their primary global enemy.
For the moment, it is just a “cold war” that we are facing, and the Chinese are quite adept at playing global chess. They have lots of ways that they can hurt us, and most Americans don’t realize this.
But in the end, nobody is going to “win” this conflict, and the entire planet is going to suffer.
Collectively, the economies of the United States and China account for approximately 40 percent of the GDP of the entire world.
As we cause chaos for one another, everyone else is going to experience tremendous pain as well.
The stage is set for a global nightmare, and at this point, it doesn’t appear that there is a way that we will be able to escape it.
About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse Blog, End Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The End, Get Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations, I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. This article may contain opinions on political matters, but it is not intended to promote the candidacy of any particular political candidate. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and anyway that you can share these articles with others is a great help
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It remains a mystery to me why we continue to alienate Russia – which could easily be the best possible partner we could hope for – whilst continuing to engage (at all…) with China. Naturally, that is said without taking into account the machinations of the MIC…
No, Russia, with its vast natural resources and excellent scientific and technical assets embodied in the Russian people should be – IMHO – the ONLY nation on Earth enjoying ‘Most Favored Nation’ status. The Russian people have since the dissolution of Communism embraced – relatively speaking – the original, uncorrupted ideals which once were at the core of American values; they are a hard-working, pragmatic people whose stoicism is legendary…little of which can be said about the current crop of ‘Snowflakes’ or Amercans in general today.
On the other hand, China will NEVER subscribe to core Western values in any form, ever…period. As a culture, they are utterly alien to the West…more of a ‘Hive Mind’ than any other ethnicity on Earth. Mr Snyder refers to thier ‘wounded National Honor’ in his article, but I ask, “What can a country of 1.2 Billion people consisting of little more than liars and thieves know about Honor?”. Oh to be sure, thier National Pride is at stake, but Honor…not quite.
No, there will never be any accord between Western ideology and the Eastern philosophy China ascribes too; the gulf between is wider than can ever be bridged, for we have no core values in common…none whatsoever. THAT should be borne in mind closely in the months and years to come as relations between us and the East continue to deteriorate.
Were I Donald Trump, I would immediate exclude any further technology transfers from the West to China forthwith as an absolute, non negotiable point. As well, inasmuch as they have engaged in a concerted, clearly state sponsored enterprise to steal everything that isn’t nailed down, then as well, I’d order that every patent associated therewith logged through our patent system by ANY Chinese entity or person not a US Citizen be forthwith rendered revoked. Too, our idiot, heretofor useless intelligence agencies might actually put to a GOOD use for a change; as the Chinese have engaged in Grand Theft IP against us, then turn those loose pointed in THAT direction…and utterly FORBID them from future operations against the own COUNTRYMEN, for which very many already are effectively become Traitors to thier Country, the Citizens thereof AND the Oaths they swore upon becoming Officers of THIS Nation. Perhaps those who survive the impending Grand purge of the various intelligence arms of our Country (once Barr has Horowitz final results as well as Durhams, in hand) might – MIGHT – therefor redeem a fraction of thier own ‘Honor’ in so doing.
In time to come, inasmuch as we have already passed through Currency wars, and now the Trade War is about to hit it’s stride, then by the time-honored schematic laid out in the ‘Playbook for Failing Empires’ in effect since the Roman Empire fell, (and which BOTH China and America are on the cusp of becoming) then in the not too distant future we can fully expect the last act of same to follow in the usual fashion; namely, ‘Hot War’. Don’t expect the Chinese to show any ‘Honor’ there either, incidentally…the concept of ‘Mianzi’ which lies at the root of most of thier cultural disfunction precludes that entirely. Hence, expect at some point an action on thier part by which in comparison Pearl Harbor will look like a Sunday picnic.
China does not forget…and does not forgive. Examples of a few of those are thier openly professed intent of restoring the Glories of Empire via the New Silk road, aka, BARI and thier eternal enmity with Japan. I shudder to think what China would do to the Citizens of Japan if they ever successfully landed there in force; Nanking, multiplied a hundred fold.
The current policy of the US of ‘containing’ an ascendent China is a functional pipe dream manufactured by the US MIC; the Chinese will NOT be so contained, the stain of the past few hundred years upon thier National Pride will never let them relinquish the dream of ‘Empire Restored’…and that will in due course make them the Enemies of the World.
Dwell on that for more than a mere bit, for this WILL be ‘Future History’.
“It remains a mystery to me why we continue to alienate Russia – which could easily be the best possible partner we could hope for – whilst continuing to engage (at all…) with China”
That’s because the Chews run America’s foreign Policy and they don’t want white Americans teamed up with or backed up with Russian whites. Its blows their scam on the world. You see, Putin has more American Values than Netanyahoo nutjob. Russia is wide awake and kicked out all of the chews in any meaningful positions in the Russian Government decades ago. Russia watches in dismay as Americans allowing this Chew infiltration into every segment of our society to rule over us, they have duped us American’s well with Operation “Pull the wool Over our Eyes”
I absolutely agree with you on Putin…indeed, he seems to have more American values than most AMERICANS do; if that ain’t ‘Bizarro World” writ large then I’m obviously off my meds again.
I mean, how many World leaders are ACTUALLY working on behalf if thier own Citizens these days? Only two that I can think of; Vladimir Putin and Donald Trump. Of those two only ONE is clearly succeeding…and it ain’t Trump. The God Damned graft permeating every eschelon of EVERY governing body on Earth now is reaching truly Epic proportions and I am now at the state of belief that nothing short of complete dismantlement of every goverment on the planet is the sole method by which we can – finally – return to something resembling a healthy balance and PEACE.
Thankfully, IMHO, that ain’t too very far down the line. People lately are catching on real fast, all over. Naturally, the control freaks running things now will – quite predictably – do EXACTLY the one thing which any rational person wouldn’t and attempt to do under this circumstance: clamp down all the tighter on thier captive populations, which , rest assured, will provoke exactly what is needed; CW II…everywhere. China is in fact, the Premier example of this currently…even without overtly having deployed the PLA into HK as yet…HK’ers are going to go NUTZ if they’re pushed and will basically burn it to the ground before surrendering…and HK is going to be a cakewalk compared to any such attempt on Taiwan.
Xi Xiping must be a megalomaniac of the first stripe to believe that he can pul the rug out from under the Hong Konger’s without destroying the very thing that China so desperately wants; access to the global financial system. Some might ask why he’d want that at all, and the answer is exceedingly simple; the ‘Chinese Miracle’ is little more than a cheap house of cards built solely on graft and lies…and the BILL is just about to come due. A half a dozen mainland banks have failed in the last several weeks as have several very large mainstream businesses of various flavors. IF China gets cut off from the Global Finance network NOW, by rendering HK non functional (which is effectively right now) then thier Glorious Chinese Peoples Ponzi Scheme loses any hope of finding another greater fool to sustain it and WHOOSH, everything goes up in smoke.
Personally, I say GOOD RIDDANCE to em all…if the World gets REALLY lucky they’ll attempt some really stupid aggression into India and once that begins – happily – the World will suddenly come up short about 2.5 billion mouths to feed.
Gee, ain’t THAT a lovely thought? Hallelujah…Aloha Snackbar!
Oops maybe I didn’t get that last one right…hope I didn’t trigger any of the sensitive sorts who might read this.
Spoken like a true towel headed muzzy.
You mean the Russians that gave you the 1960’s in America AND the current crop of Snowflakes? Those Russians?
I will never trust them. That said I don’t believe Hillary’s bullshit for a second, they happened to be handy as a boogeyman (and the irony of a Communist accusing Communists is not lost on me).
Look given their landlocked history and the constant pressure on their borders they will never be happy unless they’re the ones driving. And they’ve proven the depths they’ll stoop to in order to get that done. One thing China and Russia have very much in common is the fact that they treat humans as disposable cannon fodder.
My youngest DiL has been intensely studying Mandarin for the last year. As she learns with native speakers she has delved into the culture…..
A very common expression among that bunch is “To cheat is to win…”
Obliterate San Francisco huh? Good!
Netanyahu has been charged with crimes in Israel, fraud.
That’s like charging Epstein with trafficking tennie boppers.
It is just the tip of the gigantic iceberg that remains covered up at the bottom of the ocean.
. China is not a problem. Send them a couple of box loads of homeless. They can can them and send them back to us as dog food.
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Just because they nationalized trade with China, and a backdoor tariff tax, and farming domestically, doesn’t mean that you can no longer buy, make, or grow things, on your own.
I also question the loyalties of any white collar gentleman “farmer”, who gives one bite of food to a Red Communist, while starving his own countrymen.
There is a cartoon somewhere. It’s an old gag. There are men starving on that proverbial, overcrowded lifeboat. One naughty person is hiding the sandwich, or pie, or picnic basket behind his back.
Consider that starvation is still possible, while serviceable food rots.
In my region, their property line is reinforced, like the border crossing, and they tell tall tales of dirty deeds in the aqueduct.
You’re telling the people, who you locked out, that it rots in a pile.