The latest U.S. tariffs at 15 percent on 250 billion in goods have taken affect this week, while the American stock exchange and the Chinese Yuan saw unprecedented changes in the month of August. Its clear that investors are being cautions and businesses are wary of the future. The World Trade Organization barometer suggests trade volume growth will be weak throughout the third quarter. By all indications, it looks as though the world is moving into another recession.
And that’s good. Yes, that’s fantastic for the Fractal Banking system. Especially for the world banking system and the dollar. While businesses, families and nations will be struggling with financing, the recession strengthens reliance on the antiquated post World War Western Banking System. It also solidifies nations’ belief in the dollar to stay strong as a vehicle to hedge supposed gains and losses in strait times. That is necessary because it maintains the continuity of the Western banking system designed to manipulate currencies smaller or less cooperative states in geopolitical matters. Even now we see China and the U.S. turning proverbial “knobs and handles” on the fractal banking systems as China demonstrates its own world-economic maturity in understanding how the current monetary system works.
By all indications, it looks as though the world is moving into another recession.
And that’s good. Yes, that’s fantastic for the Fractal Banking system. Especially for the world banking system and the dollar.
It then becomes a test of wills, “who will win?” As China seeks to own its own destiny, the U.S. seeks to erase decades of poor trading decisions made during the era of good-greed. The recession will help rich nations to renegotiate their poor trade and ill-conceived immigration policies while re-calibrating the balance of power in their favor.
The 2008 financial crisis was pivotal in a similar manner as billions in imaginary money was flooded into dying institutions and conceptually flawed financial instruments to create a pseudo-revival. The recession is a good thing for the West as it grapples to maintain primacy. Should China or other trading nations disengage the current monetary system to maintain its own trade volumes the world will move into a new age. As the U.S.’s largest trade partner, China is unable to pivot quickly due to the imaginary worth of the U.S. dollar in a world economic system not backed by real value–like gold). China is also constrained by the current monetary system, because in a system that reflected real value, it could easily pivot to another economy(s) to maintain its current trade volume and growth.
As the U.S.’s largest trade partner, China is unable to pivot quickly due to the imaginary worth of the U.S. dollar in a world economic system not backed by real value–like gold). China is also constrained by the current monetary system, because in a system that reflected real value, it could easily pivot to another economy(s) to maintain its current trade volume and growth.
Once again, the current monetary system seeks gives outside actors the ability to put a lid on the growth of other nations. This happened to during the Asian financial crisis of the 90s spurred by a billionaire banker/investor that crashed the fortunes of entire nations through mechanization of a fake-money system (Confessions of an Economic Hit-man). The current model puts all economies on a leash, as built in inequity allows those with higher arbitrary currency valuations to reign in the growth and movements of other states. The question remains, will China and those most likely to hurt under a recession remain true to an arbitrary system that favors rich nations or will they forge their own destiny and become behemoths in their own right. Will that be the day the new world order arrives or some other geopolitical change?