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Opinion: The US-China trade war with China has begun to spiral out of control, and heading to economic collapse

At this moment, it would be difficult to overstate how angry the Chinese are with the United States. Chinese officials are firmly blaming the United States for the enormous political protests that we have witnessed in Hong Kong in recent weeks, and on Thursday President Trump slapped another round of tariffs on Chinese imports. Sadly, most Americans aren’t even paying much attention to these developments, but over in China everyone is talking about these things. And of course the truth is that they aren’t just talking – the Chinese are absolutely seething with anger toward the U.S., and they aren’t afraid to express it.

Let me give you a perfect example of what I am talking about:

Traders in Asia are bracing for a full-fledged currency war, after a slide in China’s yuan crashed under the 7 per dollar mark. China's yuan plunging a stunning 12 handles to its weakest on record against the dollar as countless stop losses were triggered and thousands of traders were margined out. This is the weakest offshore yuan has ever been against the dollar… The last time China's yuan crash happened, the tremors rippled dramatically and rapidly through the rest of global financial markets.

In the end, it is very true that there “will be no winners” in this trade war.  The Chinese know where our pain points are, and they will not be afraid to fight dirty. A rapidly deteriorating relationship with China is a big part of the scenario that we have been anticipating.  As I discussed yesterday, it is exceedingly unlikely that there will be a trade deal between the United States and China before the 2020 presidential election.  And to be honest, it is far more likely that our conflict with China will escalate well beyond just a “trade war” in the months ahead.

The two largest economic superpowers on the entire planet are now locked in a monumental struggle for dominance, and it is going to result an economic collapse for the entire planet.

Unfortunately, most Americans are completely and utterly clueless about what is going on, and so most of them are still convinced that everything is going to be just fine.


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