Editor’s Note: I would highly recommend to everyone in the US to pay attention to this. There is no more time to be sleeping upside down in a post hole. Wake Up for now is the time!
Get ready, get prepared, get right with God while we still can find Him – Amos 8:11.
The following article was originally published by Michael Snyder at The Economic Collapse Blog. His articles are spot on and his relentless research gives us a glimpse of what clearly may happen in the days ahead. (Used by permission)
Things Just Went Nuclear In Our Trade War With China, And A Giant Shockwave Is About To Hit The U.S. Economy
By Michael Snyder, in June 2018
It is difficult to find the words to describe just how serious America’s trade war with China is becoming. As you will see below, the two largest economies on the entire planet are on a self-destructive course that almost seems irreversible at this point. The only way that this trade war is going to come to a rapid conclusion is if one side is willing to totally submit and accept an extremely bitter and humiliating defeat on the global stage, and that is not likely to happen. So in the short-term, and probably beyond that, we are going to experience a tremendous amount of economic pain. In fact, if one wanted to create a recipe for economic disaster, it would be hard to beat having the Federal Reserve dramatically raise interest rates at the exact same time that the U.S. government is starting trade wars with all of the other major economic powers simultaneously. Unless something drastically changes in the very near future, there is no way that the U.S. is going to be able to get through this without experiencing severe pain.
Many had hoped that President Trump would settle down after the initial salvos in this new trade war, but instead on Sunday evening we learned that he has decided to go nuclear. The following comes from CNBC…
President Donald Trump plans to bar many Chinese companies from investing in U.S. tech and to block additional technology exports to China, The Wall Street Journal reported on Sunday evening, citing people familiar with the matter.
The two measures are set to be announced by the end of the week, and are intended to counter Beijing’s Made in China 2025 — a Chinese initiative to be a global leader in technology.
A report from Reuters included some additional very important details. Apparently this new plan would ban any firm that has 25 percent Chinese ownership or greater from investing in any U.S. companies that have “industrially significant technology”…
The U.S. Treasury Department is drafting curbs that would block firms with at least 25 percent Chinese ownership from buying U.S. companies with “industrially significant technology,” a government official briefed on the matter said on Sunday.
So we are not just talking about “tech firms”. The Trump administration is greatly concerned about Chinese theft of our technology, and without a doubt this has been rampant, and so the goal is to keep the Chinese from investing in any more of our companies that have important technology.
And theoretically that could include nearly all of them.
For years, the Chinese have been pouring massive amounts of money into the United States and have been investing very heavily in our industries. Now that is going to come to an almost full stop, and the consequences are going to be enormous.
Yes, we certainly need to stand up to China, but it sure is going to be nearly impossible to try to replace all of that Chinese investment from other sources.
And of course this latest announcement comes less than two weeks before the U.S. and China are scheduled to begin imposing massive tariffs on one another. The following comes from Bloomberg…
On July 6, the U.S. is set to impose tariffs on $34 billion in Chinese goods. Tariffs on an additional $16 billion in Chinese products will go into effect after a public review period is completed. When Beijing vowed to retaliate on the same amount of U.S. goods and under the same timeline, Trump directed his U.S. Trade Representative to identify an additional $200 billion worth of Chinese goods that could be subject to a 10-percent tariff.
Donald Trump is playing hardball with China and is betting that they will fold.
I can already tell you that the Chinese will not fold.
So we are going to suffer some pretty severe consequences, and Finian Cunningham detailed some of these in a recent article. First of all, Chinese tariffs on our agricultural products will likely hit our farmers really hard…
If China goes ahead with threats to impose counter-tariffs on US agricultural products, such as soybeans, corn and meat, the impact on farm states like Iowa, Idaho and Illinois across the mid-west will be severe. Voters from these states were crucial to Trump getting elected to the White House in 2016. By taking the US into a trade war with China, Trump will end up hitting his own political base hardest.
Secondly, U.S. consumers will begin seeing significantly higher prices for consumer goods at our major retailers…
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Fear God and Flee from Evil!
-BPWatcher, Internet Preacher and Bible Prophecy Watchman
Pray for the peace of Jerusalem – Psa 122:6 (KJV)