China trade war to crash US dollar

"The thinking is – at least when it comes to trade - is that the dollar is going to benefit from a trade war, which I think is wrong." - Peter Schiff

21
3597

US dollar will crash & burn because of trade war with China 

…from Russia Today, Moscow

An ATM machine it is not, but makes great collateral if you have physical control.

[ Editor’s Note: Mr. Schiff brings up a topic that does need to be discussed more, the money supply, especially in the troubled trade war seas in which we now sail. The concept of issuing large amounts of Treasury notes, basically the same as printing cash, is not on the citizens’ daily economic radar.

Schiff predicts the the dollar will crash and inflation will soar. But I have to ask him two obvious questions that challenge his prediction. Is his threat prediction real, and he is not just trying to steer the market toward futures positions he has already taken? Yes, as Gordon does so love to say, “Welcome to that world”.

Why hasn’t the march to a 20+ Trillion-dollar US debt already done that? If that debt had been the result of trade wars, then his theory stands refuted. But instead, it was the result of continuing budget deficits.

And next I would challenge Mr. Schiff, with my having no formal economic education at all, the US dollar “crashing” has to be viewed in the context as to what the other major currencies would be doing at the time, as currency values in a trade war are a relative thing.

If everyone is getting hurt, then how do you predict their value dropping relatively? Sure, their debt load is a factor, but only a few do not have a lot of external debt, the majors being China and Russia.

There is where a move could come, theoretically, as their long march to accumulate increasing gold supplies in anticipation of a US financial hegemony collapse – a quite reasonable defensive move on their parts.

As for China’s currency, again quoting Gordon, try paying a cab driver in any major city in the world with Chinese money, or the ruble for that matter. In Beirut they did not even want Euros, but the US dollar Jim W. Dean ]

Jim's Editor’s Notes are solely crowdfunded via PayPal
Jim's work includes research, field trips, Heritage TV Legacy archiving & more. Thanks for helping. Click to donate >>

– First published … June 25, 2018

The idea that a trade war between US and China is good for the dollar is complete nonsense, according to investor Peter Schiff. He believes that greenback will only depreciate.


“The thinking is – at least when it comes to trade – is that the dollar is going to benefit from a trade war, which I think is wrong. I think it’s just as wrongheaded as the concept that the dollar is going to benefit from larger budget deficits,” Schiff said.

According to Schiff, while one may think that a trade war or US budget deficits can create a dollar deficit that will prop up the greenback, in reality the world will be flooded with American currency.

“The thinking is this is going to absorb all the dollars out there and there is going to be a dollar shortage, which is complete nonsense.”

He explains that the excessive amount of dollars will be provided by the mint of US treasury bonds.

You’ve got a treasury, you’ve got a dollar. I mean, what’s the difference between a 30-day treasury bill and a dollar? You know, they’re pretty much the same thing. The only difference is people don’t readily spend their treasuries, right? They don’t go into a store and purchase something with a treasury. But they can. They can cash it in and buy something. But they’re effectively dollars. So, even though the Federal Reserve, in theory, will be shrinking its balance sheet, the US government will be expanding its balance sheet.”

Schiff says as the supply of dollars is going to grow and grow, the demand for the American currency can fall, while the US Fed will be unable to stop the dollar glut.

“Eventually, what’s going to happen is it’s going to be the demand for those dollars is going to collapse, not the supply. And when the demand for dollars collapses, then the price of the dollar collapses. You get massive inflation. That is what is coming.”

21 COMMENTS

  1. One of the few possible ways that the internationally counterfeited US-Dollar-value could partially crash, while its USA-cash-value could rise, is when-and-if all Americans cash out all their liquid-assets, such as emptying their bank+ money-market accounts, stocks-&-bonds portfolios, etc. Such cash-withdrawals, would drain RKM-financial-criminals counterfeiting-operations and could paralyze them to the extent of people’s cash-withdrawals, followed by gradual deflation, and life becoming affordable for most people, as apposed to for a minority of people today. Lots of financial bubbles would burst!
    I remember that regarding USD during the VT-Syria trip, Gordon Duff had said that US-Dollar is an obvious criminal enterprise! I had disclosed the mechanics of the US-Dollar-Counterfeiting-Operations-criminal-enterprise in court papers since 2004, and below is one of my related writings on that:
    (““USA: THE “housing bubble” SCAM WAS ENGINEERED””)
    (“Neil Garfield, Dean Baker, Kareem Salessi”)
(“Don’t let the bankers get away with this!”)
https://groups.yahoo.com/neo/groups/the_iraqi/conversations/topics/12245 A “Salessi WMD”
    + Related comment: https://www.veteranstoday.com/2018/07/03/communism-the-rothschilds-and-the-central-banking-cartel/#comment-717075 Thank you. K.S.

  2. Another thing to be concerned about is when the next collapse occurs, like the one in 2008, there will be no bail -out for the banks. Instead there will be a bail-in, which means the banks are going to take all your deposits, you savings, checking and C.D.s and use them to balance their sheets. This was decides a few years back during a Breton Woods meeting.
    So live it up folks and remember, don’t keep any money in the banks.
    P/S You may also want to consider what you have in one of those safety deposit boxes in the vault…….they’re going to take that as well.

  3. i am convinced that no one understands the economy well enough to predict anything about it……but…one thing seems sure…that china russia india etc…are looking for ways and in the process of escaping the american dollar.

    once the dollar no longer is the world reserve currency the game is up…since debt can no longer be printed away and suddenly the military can no longer be supported,,,etc etc…that is what most people outside the usal suspects say all the time….i have no way of knowing when or if..it is going to happen…

  4. The fractional banking model has about run its’ course. This explains the introduction of the crypto currencies. As soon as the Central Bankers corral all the European countries into conformity the EU will go cashless. And once that happens the USA will also do away with cash. Money, the dollar, is a concept designed to control the little people. For the elite it’s all about the power to tax the working man. We are paying for our keep. It is a pay as you go system. Simply put, it is slavery. What is the difference between paying a working man $15 per hour in 2018 and housing and feeding a man on a plantation in 1800?

    • It has always been usury vs. Labor. It has always been between taxing those who do nothing to earn their wealth and taxing those who work and build things or tax again those whom have taxed their bodies to build things.

    • Plenty of full-time adult workers in the US making less than $10/hour, yet the brainwashed masses think that the rich just “work harder and smarter”. Well, only smarter in the sense Mark Twain wrote about how “Americans” admire smart dealings.

    • Fractional reserve banking is the greatest fraud ever committed. That along with keynsian economics.

  5. A book “Truth in Money” first published in 1982 makes the convincing argument that the debt money made in the USA, weather FED Dollar Notes or Treasury note debt, that M3, if kept today would be going through the roof and following a predictable curve of compounding interest. The author says that the basic curve of $1, borrowed in 1913 when the FED was created, with 6% interest capitalized into the principle yearly for 110 years (to 1923) is almost an exact match to the actual graph of M3 and that it predicts M3 into the future. Do the graph and imagine them creating that money out of the air.

    Then research the Wiemar Republic and how the debt money system was ravaging Germany before Germany created a legal equity money system and all of their people benefited (not bankers) and how Jewish pograms have happened time and time again because of Jewish mastery of interest/usury and how it funnels the wealth of a nation to the Jewish controllers of the money….Jesus called them (blood sacrificing) money changers and his only recorded violence was throwing them from the temple….where they promptly tortured and murdered him.

  6. Trump will do what he has always done. Charge up a fortune, collect all the upfront money, then tank it, and renegotiate with the banks, leaving the initial investors with the bill. Watching what they are doing, and listening to what they are saying, does not match. It is a bipartisan payday because insider trading is legal in the government. The transition away from predatory capitalism, will be very sweet for the 99%. We have massive abundance. We just don’t know it, because the skimming is off the charts. The great awakening is when the people decide to do math with a community oriented focus.

    • Besides, there is a magic word that will fix our economy and all we have to do is say it together.
      Supercallousfragileracistsexistnazipotus.

      All fixed.

  7. Yes, the U.S. would suffer pain, initially. But that’s what’s to be expected when going through the re-transition of returning industry to America. Schiff, makes his money selling doom and gloom. That’s to be expected from him. It’s not going to be milk and honey for America and Americans getting our house in order. We’ll just have to deal with it.

    In the long run, any pain suffered in returning industry will leave us in a better position. China has it’s own industries now and can get through the pain as well. Let’s do this already! It’s no worse than going through a divorce.

    • The pain and suffering would do us no good. Look at France of the mid 1700s. The recovery came and they went back to a central bank. Those who opposed it like Napoleon, Hitler, Kennedy and many more where killed by those who have no limits to their debauchery. This is the true problem. Countries are defensive against them and no one has ever taken the offensive to them. They have always hidden within the folds of a super power built on piracy. Maybe this time the whole world will see it and unite against it in an offensive forcing them all to gather in Israhell. Maybe this is what it is all about.

  8. JohnZ is correct. Also, everyone must remember this: Our government is a pathological liar. One cannot believe anything they say period. There is no telling what the real debt is.
    All governments have an unlimited greed for MONEY. They will spend every penny they can squeeze out of citizens from all forms of taxation. The U.S. government is technically bankrupt both morally and fiscally right now. But the end and when it arrives is very hard to predict. One word describes all of economics: Confidence. Confidence by consumers can evaporate in an instant over night. The end could come today or tomorrow who knows. But one thing is for sure: It is coming like a massive train wreck. One hundred times worse than 1929. Hope and pray you don’t live long enough to observe it. The fools running American can’t do anything right can they?
    America is gone folks.

    • Ultimately the ruling crime families will decide what happens not the pawns running government
      I do not see any major change as the elite are doing very well the way things are these days

    • Quantitative Easing. That is buying tangible assets, brick and mortare, and labor putting things of value together with many an IOU or a Dollar. This IOU belongs to the Fed or borrowed from the Fed. If you pay me with a borrowed lawn mower. Then the owner takes you to court for his lawn mower, the judge will order me to give it back to the sovereign owner of the lawn mower. You will still owe me your debt. US Dollar bills have bought everything, so legally everything belongs to the Federal Reserve. We have bought everything with their notes. A judge would ask us to give them back everything we bought to pay off the IOUs or Dollars. Wake up America.
      The Central Banks havebeen shoring up the Dollar by selling gold reserves. China has been using its Dollars to buy gold and Russia to a lesser extent. This is why they must use the US military machine to bring down Russia and China to recover that gold.

  9. Not only is Peter Schiff correct in this but so is Gerald Celente, Jim Rogers, Jim Willy and Dr. Ron Paul. These are only a few who are warning Americans that the illusion of Wall St and the stock market is just that: an illusion.
    When the Federal reserve continues to inject more fiat money into the system (inflation) the value decreases to the point where it becomes worthless ie: the situation in Germany in the 1920s and 30s where the German mark dropped so far in value it was nearly worthless. The value of the American dollar is down by 97% since 1913.
    Fiat money is not currency. When you have only the pronouncements of those who control the money supply and that is not congress, but those inside the Federal Reserve, continue to pump up the economy with false numbers and by injecting even more fiat money into Wall St. the result will eventually be a catastrophe. This cannot go on for ever. Sooner or later the point will be reached where the Fed can no longer manipulate the economy and fool the American people.

    • America is teetering on the precipice: a massive debt of more than $20 trillion is going to expand by the end of this year. Endless wars of aggression, the occupation of a hundred nations with more than 800 bases overseas. Massive, out of control military spending with money, all of it borrowed from the Federal Reserve. Money spent on useless military hardware that doesn’t work ie: F-35, expanding welfare to include the millions of immigrants flooding into the country.
      The combined debt of public and private sector is more than $64 trillion. States cannot meet their pension obligations. States like Illinois, California and Tennessee are in hock to hundreds of billions for pension payments. The middle class and companies are leaving California thus putting an even greater strain on its budget. Elon Musk will be of no help.
      The disaster that is coming to America will make the crash of 1929 look like a market correction.

    • Anybody who believes this can continue without consequence is delusional at best.
      It is insanity.

    • The value of the American dollar is down by 97% since 1913….
      I think it’s several times more big than this, in particular from 1971 with regard to gold, you lost a true reference and in the last decades the gold price it’s very manipulated to maintain the illusion of dollar strength in relation to other currencies , the current gold price is not real.

    • In pre-Napoleon France a French Livre equaled an once of gold. Right before Napoleon’s rize to power, the bankers and politicians kept pumping money and insider trading was an open secret, until it took 50 thousand Livres to buy one once of gold. One Napoleon came to power, he was asked how will he fix the situation? His answer was: we will buy what we need with gold. France was recovering immediately. This was the lesson the framers of the constitution used as their guide. Gold and silver are the only standard. There is not enough gold and silver for circulation? Solve this problem any many ways but don’t dilute the currency. There used to be many Nickle and Dime stores. Now, all we have is a few Dollar stores.

Comments are closed.