Trade Wars

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It looks like China is trying to flex its muscles in the trade war with America. It’s not that the trade war is new, it’s just now being recognized for what it is.

Trade Wars are what you do before you start shooting each other. It’s what happens when two countries don’t like each other and the direction they are going but they can’t find a good excuse to blow each other up yet. Trade Wars end up with one country giving up and acquiescing to the other, or open warfare.

The US policy for a very long time now has been to import as much as possible, all the time, with no or little tariffs. The reason was simple: We needed other countries to be strong to combat the Communist threat that the USSR and China and other countries posed. After the collapse of the USSR, and the liberalization of the Chinese economy, and the complete evaporation of the Communist threat in the world, it no longer makes sense to give foreign countries an advantage in trade. In fact, we don’t really care what the rest of the world has anymore, as we have everything we need in our own borders.

True, it can be argued that limiting trade only hurts those who do the limiting, but none of the other countries in the world know how to take advantage of this.  Well, Bermuda, maybe. And Singapore. Is the US going to engage in a trade war with them? There is no reason to — they already respect our trading rights in exchange for our protection.

There’s only two things a country can do in a trade war:

  • Limit exports, which is basically declaring that you lost the trade war and feel mad about it.
  • Limit imports, which forces the other country to move their manufacturing to within your borders.

Trump is choosing to do the latter with tariffs. China can’t do it, since no one wants to move their investments inside China.

This trade war was lost by China the moment Trump decided to fight it.

The only reasonable resolution is going to be the following:

  • China forces North Korea to give up all their nukes.
  • China obeys international law regarding trade secrets.
  • China does pretty much whatever the US asks of it from now on, no questions asked.
  • China allows foreign investment, honest foreign investment, meaning, they go full capitalist.
  • China no longer puts a tariff on anything made in the USA.
  • The USA has no tariffs on Chinese exports either, as long as they keep all of the above.

In short, China will become yet another vassal in the American empire.

With China under control by the US, the number of countries not under America’s thumb will be countable on one hand.

America is what you get when you have a trade republic with actual resources behind it. No country has ever defeated a trade republic without taking its land first.

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