/biz/ - Business & Finance

Main objective of the "trade" war isn't about MAGA or bringing jobs back, the sole reason is to cripple China.
> There will be no trade deal.
> Markets have not priced in the possibility that there will be no trade deal.
> This is only getting started.
Neo-cons are trying to take down China before China surpasses US as the predominant power with the Belt & Road. This is a war of economic attrition, elite's war. Citizens of both nations will be the casualties.

America's "exceptional" status has been predicated on one thing, the US dollar being the world reserve currency. US has a negative trade balance by necessity because the status of the dollar as the global financial lynchpin in terms of reserve currency status and commodity trading unit (especially oil). This is where the asymmetric demand for and artificial strength of USD comes from.

US has mismanaged this privilege by taking on vast amounts of debt. As time passes a paradox occurs; the conflict between short term domestic desires and long term international objectives. Both objectives can no longer be simultaneously met. Any adjustment of the global dollar will result in an inverse reaction abroad. By helping your own country you destroy trade throughout the world. Help world trade, you destroy your own industry.

US in a difficult position with China growing so strong and rebelling from the US dollar.