Will the US Attack China for Bringing Peace to the World
by John Lawrence, August 8, 2018
China will be perceived by the US eventually as a threat because they are doing infrastructure development all over the world while all the US has to offer is its military and weapons development, drones, bombs etc. China is winning friends by striking deals to build railroads, ports, bridges, high speed rail. It is using fiat money to spread its influence throughout the Eurasian land mass and beyond including Latin America. The US has only sanctions and threats of war both hot and cold to spread its influence. It has military bases in most countries of the world. This is how the US uses fiat money to control the world. China is using fiat money to build the world. Fiat money is just money printed by the government's central bank - in the US case it's the Federal Reserve, in China's case it's the People's Bank of China.
US fiat money makes banks and bankers richer. It's inserted at the top of the financial system and is used mainly for financial speculation and to line the pockets of the rich. China's fiat money is inserted at the bottom and creates jobs and prosperity. China builds. The US destroys and exacerbates inequality. China also in many subtle ways has the upper hand relative to the US since it is the largest foreign holder of US debt in the form of Treasury bonds. Therefore, it controls how strong or weak the yuan is compared with the dollar which in turn controls the US trade deficit with China and how expensive Chinese products are when imported into the US. Currency manipulation does not enter the picture because the yuan floats freely against the dollar. It is not pegged to the dollar by a fixed exchange rate. Therefore, there can be no currency manipulation by definition. They have a right to buy and sell US Treasuries whenever they so desire. That's one of the pillars of capitalism. They are beating us in our own game.
China is playing the long game to exert its influence all over the world. It is the second leading economy. China is building infrastructure all over the world. The US cannot even build or repair infrastructure in its own country. It is creating a new Silk Road that will expedite commerce with China and make Chinese products prevalent in world markets. The amazing thing is that China is spreading its influence by peaceful means, not by military threats like the US is doing. The yuan is well on its way to becoming a world reserve currency diminishing the role of the dollar and diminishing the US' use of sanctions to get what it wants. In addition other countries are turning to China for leadership as the US turns inward under Trump and undercuts its own role of leadership in the world.