TRADE WAR SPIRALS:
Competitive Capitalism a variation of feudalism economics unfolds history like this over 5000 years without deviation once:
- Consolidation – elites consolidate wealth until 99% of all wealth is owned and controlled by less than 1% which creates instability in dynamic circulations and fosters rampant elite class speculations and price manipulations.
- This instability reaches a BREACH POINT as it did in 2008 and the world system has a SERIOUS MELTDOWN. Stage one in rebalancing global accounts massively out of balance in the trade by this time.
- A period of years of spiraling trade wars begins. It starts with currency manipulations and moves to every nation is in it for themselves. Cooperation breaks down and competition skyrockets. The USA just took 30% of Canada’s lumber trade one of our largest items from our largest trade partners who are subsidizing pricing – speculatively – and slapped serious TARRIF TAXES on all that massive lumber trade. This is the opening volley of a GLOBAL TRADE WAR SPIRAL moving from EU to Asia to Africa to everywhere. The spiral is tightening as it always does historically at this point in time.
- The trade wars foster a growing further system instability in trade balances which instigates typically from defaults on massive debt somewhere in the system a CONTAGION EVENT – a GLOBAL SYSTEM WIDE DOMINOE event no one could predict. This creates in digital space almost instantly a SUPER CRASH as all liquidity dries up and the system itself locks up.
- This creates World Depression and World Wars every single time – no deviation – not once – not ever.
I’ve written as an economist investment banker – if we know this is the outcome – why do we move into more of that process? Why do we not prevent it? Why do we not use our new tools new tactics and work to prevent the spiral tightening?
With the financial history, we just seem to all have Alzheimer’s. We do not learn and earn from our prior errors.
We repeat them and relive them. Over and over generationally.
It seems insane to me. That’s what the financial records show us historically.
And HERE WE GO AGAIN – the trade war is heating up – and now close neighbors are fully engaged. The US slapping enormous tariff taxes on Canada for the money crop of its softwood forest exports. To its biggest buyer USA. Noting Canada is selling subsidized lumber prices – dumping on American markets lower than it sells domestically and skewing markets to support its own special groups. As we do not do THAT we want fair trade on price, not subsidy pricing. So the TRADE WAR after years of failed discussions enters a new phase in April 2017. It is not good news as stress with Canada and USA is rising.
So where does this all lead?
To something new?
Or something we all well know?
We’ll have to wait and see now – will we not? It’s all in my BOOK “REDEMPTION THE COOPERATION REVOLUTION” at Amazon for the reader who wants to step out front in all this.
Berny Dohrmann _ HOLDING REDEMPTION AS AN OPTION FOR ALL OF US
PS: If you see it differently you can post comments – post yours I want to hear what you think?