Darrell

U.S. vs. China: Has Trade War Begun?

My take is that China and all the other nations in our global commerce community cannot continue to accept the dollar as legal tender, as a medium of exchange for their goods, services and/or asset, without placing severe controls on the number of dollars that can be placed in circulation for use.

For way to long we have been prolonging our false prosperity by exchanging a valueless currency for goods, services and/or assets that continues our false prosperity; as people have stated for far too long: we have been kicking the can down the road.

Right now central bankers are acting as the black hole for excess dollars, dollars that are not needed to conduct global commerce. China is using some of their dollar stockpile to buy commodity assets all over the world with the warning that they think the dollar is valueless and it is part of a flawed global currency system.

China, France, Japan, Brazil, India, and other nations have been developing a new global currency system that will replace the existing system,

Central bankers are committed to changing the current global currency system so it is now just a matter of time before the dollar is no longer accepted as legal tender for the purposes of global commerce.

The only remaining question is will the dollar’s demise be the result of investors, institutions, central bankers, etc. manically abandoning the dollar or will the dollar’s demise be the result of planned transition.

Your guess is as good as mine.

And I agree with TheresaE, China thinks their political system is far superior to ours. And, I disagree with China’s viewpoint, the fact that we can share our views and grow and change from our ethical lapses, is the hallmark of democracy.