Alternative Visions - US v. China: From Trade War to Economic War
Dr. Rasmus reviews events of the past week by Trump and China that show increasing evidence the ‘trade war’ is now morphing into a more general ‘economic war’ after the breakdown of negotiations earlier this month. The measures beyond tariff actions taken up by the US are reviewed, including choking off money capital flows, sanctions on both US and China corporations, direct attacks on China companies expanding, US pressure on allies, going after academics participating in research with Chinese. Rasmus predicts Trump will eventually push for delisting of China corps from stock exchanges, force divestiture of US joint production with China, increase pressure on Australia, Brazil, other commodity producing countries to restrict sales to China, and even interdict shipments of Iranian and Venezuelan oil to China if need be. China’s counters to the US beyond just tariffs include slowing buying of US Treasuries now occurring, allowing its currency, Yuan, to devalue beyond 7 to the $1, mobilizing China consumers to stop buying US products, restrict export of ‘rare earth’ minerals to US producers, impose non-tariff barriers on US companies, stop buying US farm goods again, increase subsidies to China companies, step up buying of Iranian oil, exempt US companies from its 51% foreign ownership rule, etc. Trump and Neocons clearly plan to US China trade war as excuse to ramp up ‘economic nationalism’ theme in 2020 elections and blame China US slowing economy. The show concludes with commentary on 5 reports issued this past week: the Fed’s Household Survey showing 40% can’t afford $400 for emergencies; the Institute of Taxation report showing large profitable companies (Amazon, IBM, Chevron, Prudential, etc.) were written $80 billion in rebates in 2018; Mckinsey report showing Labor’s share of national income has now fallen to 56.7% from 65.4% (more than $1.3 trillion a year); and the Wall St. Journal reporting US capital spending rose only 3% in 1Q19 compared to 20% a year earlier, 1Q18, despite Trump’s multi-trillion dollar tax cuts given them.
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