Someone sent me a link to an article in which the subject was how China was quietly destroying the dollar. It illustrated how China was using the yuan to transact directly with other nations, such as third world nations in Africa, eliminating the USD as a third party currency.
Here is my response.
Is the dollar really collapsing around the world?
While this may seem counterintuitive, expanding trade deficits work to enhance the US dollar as a transaction currency. Narrowing trade deficits undermine the dollar as the global transaction currency.
Since Trump has assumed office, the United States’ trade deficits have narrowed markedly. What was just economic theory is quickly becoming reality and the implementation of the tariffs are already having a profound effect. Furthermore, when we parse back the individual nation-state data, we observe a huge drop in the trade deficit with China.
I don’t get too caught up with the actual tariff rates coming from Trump. Rather, I observe a president who is attempting to create ostensible confusion, and it’s this uncertainty that is the catalyst for producers and suppliers to reshore or nearshore their factors of production.
In this regard, I see Trump as being successful in his endeavors to force supply chain participants to quit relying on China.
Why does a narrowing trade deficit undermine the dollar’s standing?
If the United States is no longer flooding the world with dollars, because of their narrowing trade deficits, other nation states will naturally try to find other currencies to replace the dollar for transactions. They have no choice, because there will be a supply deficit of dollars around the world.
Trump may say he wants a strong dollar, but by implementing a regime of protective tariffs, he is achieving conflicting results from his publicly stated goals. However, Trump’s handlers are not being foolish in this regard, but are being deliberate. I have to conclude that the ultimate geopolitical goals differ than what’s offered for public consumption.
Yes, it’s a matter of national security
In its aggregate, all of these actions only make sense if the Trump regime is attempting to enhance national security in anticipation of a wartime scenario.
Based on the actions of the Trump regime, I have to conclude that those in control here in the States want to emphasize the dollarization of the Western hemisphere, while effectively reducing the dollar’s role throughout Asia and elsewhere.
But, why?
If the Trump regime and the Department of War believe that a global conflict is imminent, the last thing they want to have hanging over them would be for the CCP to have too much leverage over the United States economy and by extension, the dollar.
By reducing the US bilateral trade deficit with China, US geopolitical strategists foresee less of an economic shock when the bombs start dropping.
We have to remember that if China’s trade surplus with the United States continues to shrink, they are receiving less dollars for payment. Naturally, the Chinese government is going to attempt to convince its other trading partners to begin accepting the yuan in lieu of the dollar.
This is not an easy process for China, as the CCP is loathe to run the necessary trade deficits that are required to flood the global trading system with the yuan needed to consummate international transactions.
Trump’s Western hemispheric actions make sense when viewed from this perspective
I suspect this is the true reason why Trump is insisting on removing current heads of state in Venezuela. This would go a long way in getting the entire Western hemisphere in line and using the US dollar exclusively. I also observe the recent shift to the right around Latin America as a very telling sign. These heads of state have all been told that war is coming and they best get in line.
Yes, it is now a matter of national security that the United States government begins to slash the trade deficit, while concomitantly eliminating the dollar for transactions in countries it deems as its existential enemy.
There is much more to this than meets the eye
The people who write these types of collapse talk articles are not seeing the bigger picture and are either panicking or are writing clickbait to scare the reader.
As global war gets closer, it’s in the best interest of the United States to remove the dollar as a transaction currency for nations like China, Russia, or SE Asia. The USD will serve its purpose for Oceania in a post-war environment.
I have to admit that whoever is handling Trump and working the circumstances behind the scenes are very intelligent. They are properly gearing up the United States for global conflict in an expedited fashion without setting off too many alarms.
World War III is coming soon. Let me explain.
In its gestalt, the recent actions of the United States government and its military make perfect sense if their geopolitical strategists are gearing for an upcoming global conflict.
Reduce reliance on existential enemies
First, as previously stated, it’s very important for the United States to reduce its reliance on foreign made goods, especially for those that affect its national security. Whether President Trump is acting unilaterally or according to a larger script is up for debate. However, if I were in charge and knew a war was coming, I would be promoting a very similar trade and economic policy.
Accelerate oil and gas production
Second, I also marvel at the ability of the United States to greatly accelerate its production of oil and gas at a critical time in the country’s history. The United States is by far the largest energy producer in the world.
Pastor Lindsey Williams and his WWIII prediction
Going back to the early 2000s, I recall how pastor Lindsey Williams would often remark that when World War III got close, oil and gas production in the United States would accelerate greatly and the United States could actually become a net exporter of energy.
Pastor Williams has since passed on, but as recently as a few years ago, Williams’s critics dismissed him out of hand. Unfortunately, he was right all along. The United States is now an energy powerhouse and is properly equipped to be energy self-sufficient during a global conflict.
Conclusion
Both of these factors are working to help the United States in its pursuit to ride out whatever comes it’s way during World War III.
Mark my words here, there are no mistakes and the powers here in the United States know exactly what they are doing.
So, is China slowly destroying the dollar? Of course not. The United States isn’t destroying the dollar either. Both nations are getting ready for global conflict. China doesn’t want to use the dollar and the United States truly doesn’t want China using the dollar either, because that would mean running large trade deficits with its existential enemy.