Wednesday 5 June 2024

CHINA CAN DESTROY THE WEST BY IMPOSING SANCTIONS ON IT, PLUNGE US INTO HYPERINFLATION, SAYS THE TELEGRAPH

US SANCTIONS AGAINST CHINA WOULD BACKFIRE AND DESTROY THE US,DOLLAR AND WEST

CHINA CAN MOVE FIRST AND IMPOSE ITS OWN SANCTION ON THE US,DUMP AMERICAN BONDS 

WILL CAUSE WESTERN ECONOMIES TO GRIND TO A HALT AND HYPERINFLATION,SAYS THE TELEGRAPH

CHINA WILL BE ABLE TO BUY UP WHAT IS LEFT OF USA,EUROPE,UK 

US,WEF ARE ATTEMPTING TO DIVIDE RUSSIA AND CHINA TO DESTROY THEM BOTH MORE EASILY

ATTEMPTS COME AS CHINA AND RUSSIA PREPARE AN ALTERNATIVE TO SWIFT

https://menafn.com/1108294538/Russia-China-one-step-closer-to-altering-SWIFT

From The Telegraph

Such action could spark a direct military confrontation with China, which would be economically catastrophic. Presumably it would lead to the sorts of sanctions and counter sanctions that we saw placed on Russia after they invaded Ukraine. One recent study puts the cost at up to 10pc of global GDP, but even this likely understates the true damage.

Western economic supply chains are reliant on China in ways that no one person truly understands. China makes important intermediary and capital goods that are fundamental for Western manufacturers to function. Without access to these inputs, the Western economies would grind to a halt. The result would be severe shortages and uncontrollable inflation, unlike anything that we have seen in living memory. This would potentially be compounded by the Chinese dumping their Western bond and currency reserves.

To give some sense of this, consider that Chinese holdings of American bonds and reserves are large enough to represent a 40pc increase in the number of US dollars circulating in the daily foreign exchange market. These markets are used to very incremental changes in dollar liquidity, a shock dump of dollars making up 40pc of the market would send the currency into a tailspin. Hyperinflation would be a very real possibility as a result.

 

https://www.telegraph.co.uk/business/2024/05/30/west-completely-unprepared-xi-jinping-next-masterstroke/

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