Back in May of last year I hypothesized what I saw forthcoming and my reasoning behind it. It wasn’t the first or last time, but this article was a bit more encompassing, for it had more than one item for observation than the others as I would like to show.
Here’s the first pull quote. But now knowing what you know about trade, their falling GDP and more, add that to your prism as you read. To wit:
And I believe that plan to be: A first strike initiative via its currency (e.g., Yuan) that may cripple the world economy in the near term, but more importantly, possibly, if not probably, damage the U.S. economy beyond repair in the long-term. Setting itself up to be the undisputed power-player of the world economy, for decades to come. If not centuries. That “player,” is of course: China.
Here’s the important point of all this: Not some time in the distant future like all the so-called “smart crowd” paraded across the business/financial media like to drone on about. But rather: Now, as in, at any moment, imminent, looming, just over the horizon, __________(fill in your descriptor of choice here.)
To reiterate: What I believe to be transpiring, at this very moment, is that China is setting up the monetary equivalent of preparing for an all out economic war, equivalent in terms for economic damage or destruction to that conjured up when imagining something on the kinetic version and scale. No hyperbole intended.“Forget Russia – What’s Coming Next Will Be – From China With Love” May 2018
Here’s another: But now think of all that has transpired over the last few week in regards to policy. Again, to wit:
Now here is where I’m going to make an assertion, which I believe, most miss. And, is why far too many also underestimate, or miss entirely the possible, if not probable impending ramifications. And it is this:
Most see the above and will reason that if we begin to go back around, or up, or down, or just scream sideways that China will respond in ways much the same as they did prior. i.e., There’s some form of positioning to counter within a “winning” manner, or at least, the ability to remain within a controllable equilibrium.
I, am not of that viewpoint.
I see the above, along with what is currently transpiring in regards to ongoing Fed. policy and political stances such as tariff policies and more. And see China in a, No-Win situation.
Every direction the $Dollar now takes hurts China. And what is worse? Every forthcoming move in the “markets” in response to Fed. policy will hurt it even more, and that’s not all.
Tariffs, of any sort, that are directed squarely at China does one thing that for now has been avoided, and it’s this…
What if the “pin to prick the financial bubble” is actually more like a “thorn” that is suddenly stepped on by the proverbial, “Bull in a china shop” that has until now been just lethargically meandering calmly up and down the aisles? Hint: The results would be the same, only where it begins differs.
And just one more: But now think of Hong Kong as you read…
This recent power-grab by Xi Jinping will allow him to do something which has not been seen since the days of Mao. i.e., Control the populous however he sees fit, by whatever controls he also, deems fit. In other words, if the populace must suffer to enable the vision – they will. i.e., Just like Mao.
If, for whatever the reasons, the “markets” or $Dollar make any sudden moves? China may not have the sure-footing everyone believes they have to deal with it. Especially, right now.
It’s quite possible if not more inline with probable that they (China) may be looking for the slightest reasoning as to covet, then release, whatever plans they may have been formulating behind the scenes.
But make no mistake about it: You don’t change what was deemed to be “a great moment in China’s global rise” by revoking what was thought to be the impetus for it. i.e., A more friendly, western political, and/or business version.
That is: Unless – you have a plan, and a mighty big one at that of your own in mind. Think about it.
The issue at hand is, “that plan” may be releasing the monetary equivalent of an all out economic war using the equivalent of a “thermonuclear” first strike devaluation. A “plan” they may now believe they can win, because control is now cemented in one mans hands. For Xi no longer needs to worry about re-election, or any other political fallout. He can/will dictate and decree how any dissension or political strife will be dealt with to reach his ultimate goals.
Just like Mao.
Now before you go, let me add just one more from something completely different that is also, oh so relevant, in my humble opinion. To wit:
The above is a side by side comparison of the Yuan in U.S.$’s as is Bitcoin™. Same time frame and both are using one hour candle/bars. The only reason for the gap is that this platform doesn’t provide the minutia detail of that period for those that aren’t that adept at charts. But it doesn’t matter, the result is the same.
So why do I bring this up? Let me answer that with the following and you draw your own conclusions. Once again, to wit:
I just want to add one last thing when it comes to much of the recent “mania” reigniting in Bitcoin…
Every time there is social upheaval, unrest or threats of clamping down on China’s currency routes to “Get the heck out of Dodge.” Bitcoin sees a surge. Soon as it appears to be tamped down? So too does the resulting gains many thought were all but “a sure bet.”
Have you seen the news in regards to Hong Kong lately? I’ll just leave it at that and let the above speak for itself.“Addendum To “All In The Eyes…” August 3, 2019
Just one last thing: The reason for all of the above is that anything, in any of the above, was never even considered as possible, let alone contemplated across the entirety of the mainstream business/financial media.
And now – here we are.
© 2019 Mark St.Cyr