Why the US Economy is Finished. The Managed Decline of the USA by Russia & China.

The United States is the greatest threat to world peace. This is because it is lashing out because its economy is collapsing.

Lets think about this.

America is slowly collapsing. Their economy is a ponzi scheme, propped up by world use of the dollar. However, Russia, Iran, China and some other BRICS countries are leading a long overdue de-dollarisation of the world.

A strong economy needs to manufacture stuff and export.

In Europe, what do we actually buy that is made in America?

Something that most Americans don’t get is just how little we see of American products. Actually, many of us over here in civilisation don’t realise it either.

Almost everything that we think is a US product is not. I bet you could go through your home and not find a single item that originated within the US.

  • US brand cars: made in Europe or Russia
  • US brand iThings: made in China
  • US food products: made in Europe
  • US branded clothes: made in China
  • US branded electronics: made in China or Vietnam
  • US branded fuel: Russia, Middle East but not USA

Outside of consumer goods, the US exports a fair chunk of commodities (odd for a developed economy) and machine tools etc., but even that stuff is becoming US branded global manufacturers.

The US are considering counting goods made overseas and sold with a US brand on them as US exports, god knows how that’s work as it’d mean double counting almost everything – a Chinese export becomes, at the same time, a US export.

As a proportion of its trade, the US is less capable as an exporter than almost any other country in the world – that’s why they have such a huge balance of payments deficit. That has been true for many decades, the internal market powered the growth of the whole US economy is a manner that SMOPECS simply could not do.

We can choose to overlook some of this by mentioning export of technology, but that is not really true these days; although in some cases it is. But for example, the major manufacturer of iThings, Foxconn, they do the work because they developed the tech to enable them to meet Apple’s (and many other firms) exacting requirements. When Apple tried to use domestic technology, implemented in the US, they failed and as a result had to walk back a significant consumer benefit of their last iPhone release.

It does not matter why the US is not competitive: taxes, wages, productivity they all contribute; it simply matters that the US is uncompetitive and becoming more so.

The only real support for the US is now from exports of dollars and that, this year, goes negative for the first time in almost two decades. (Basic truth – any economy that imports more than it exports is uncompetitive)

The US used to be relatively isolationist in trade because they had a vibrant domestic market that was equal to or larger than anything else in the world. I remember those days. One could visit the US and see great things, new ideas, fun gizmos and gadgets, new business models – but no longer.

The really cool thing about those days was that because of US isolationism one could export those things, those ideas and enjoy a market skimming killing. Now, one learns Mandarin and gets on a flight eastward to attain the same objective.

For Americans ‘globalisation’ was a con. It enabled the economy to be hollowed out from the inside, like a piece of old wood attacked by termites. Now the internal market is failing as wages fall (in real terms) as unemployment moves toward the 20% level (when the long term unemployed are included).

But like, the piece of wood eaten away from the inside by those relentless termites, the external appearance remains, on the whole, intact. Give the wood a short sharp shock and it falls apart into a pile of dust abandoned even by the scuttling insects who took away its life and strength.

The beneficiaries, the termites, are those who foisted globalisation upon the country, who exported manufacture in order to increase dividends and bolster share prices, the investors who bought into the fiction and encouraged the company managers to continue the hollowing out process.

Unless the US can find a way to be a part of the whole value chain again, then things will get worse.

The easiest thing in the world to copy is an idea, and if that’s all you have then you ain’t got squat. America used to know that! It might have been made a bit shonky, but if it was cheap and worked long enough then it was good to go.

Now the Chinese do what American industry can’t do, they have the ideas and the manufacturers, and are climbing the quality ladder really fast. The transformation has been much faster than the Japanese or Hong Kong managed.

The Chinese own most of America’s debt. They are now sending dollars back to the US and in exchange owning prime real estate.

The Chinese are also dumping dollar instruments at a great pace. There absolutely is a de-dollarisation taking place all over the world. It is also my understanding that dollars sent back to the US causes inflation there. I think one of the reasons China and Russia are de-dollarising is to help stave off the forthcoming war that America needs to stay afloat.

Stuff is always better than money I think. Good stuff appreciates, can be swapped or traded and can be sold in any currency at any time anywhere. China is now buying stuff in the US with their dollars. I recall reading a while back they are buying prime Manhatten hotels as an example. They are swapping dollars for stuff.

In other words they are exporting their dollars. Because they do not wish to hold on to them.

We should hope they will succeed. Not because of any ill feeling towards America, but WW3 started on the back of economics to save a country hopelessly in debt will embroil much of the world.

I think what we are seeing with Russia, China and others is a long, slow, managed decline of America to a regional power. The dollar, at one time America’s strength, will become the tool to create that managed decline of influence. Like I said before, America will go down kicking and screaming. And that is what may cause a world war.

The president of China at Putin’s elbow at the Victory Day parade, Chinese army participating in the VD parade, Russian army invited to China for a similar parade, new oil/gas deals, joint military operations right now in the Med and active de-dollarisation are all discreet Chinese signals to show Nuland & Co where China sits. Next to Russia as always.

With a burgeoning China/Russia friendship, US aggression in Ukraine and against Russia is going nowhere fast. Russia has underlined this in recent days with an incident in the Black Sea to dissuade US aggression in the region, and a ban on 89 EU politicians from Russia to make the EU have a little think. One-Nil to Russia. Shame it took thousands to die in Ukraine to deter the US.

Russia is the largest country in the world with a capable military. Why the US wont face them head on and instead attacks them via sneaky routes like regime changes in neighbouring countries and sanctions. Same with China. As we know, the US actually only puts boots on the ground in small places it thinks can be won quickly. Look how that worked out…….

What we actually are seeing over time is the US as a declining power, the end of a unipolar world and a slow de-dollarisation taking place. If anything, this makes the US more dangerous as it wont go down without a fight. This means we may see more invasions and “interventions” in places like Macedonia.

We are certainly going to see more aggression against Russia, China and possibly India. Between those three countries, we have the biggest country in the world, the most populous country in the world and the biggest economy in the world.

As those three countries begin to come together more in trade, and staving off worldwide American terrorism masquerading as ‘spreading democracy’, we will see more common interests develop between the three.

Add in other BRICS and South American countries, and we end up with a world alliance, that can – hopefully peacefully – reign in the constant warmongering of the USA and contain it as a regional power. Having removed its power – the influence of the dollar.

We should celebrate this. The world cannot sit on its heels and watch America invade country after country forever. We cannot watch them interfere in country after country changing governments and meddling in governments on a whim.

It needs to stop. War is one way, but should be the very last option. Stopping using the dollar is another way, this will weaken America at its core. Nice and slowly.

If you do not support American terrorism across the world, do the world a favour – Stop using the dollar! 

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