The Coming Economic Contagion.
In a war for supremacy all methods are just — some Chinese saying.
Tai Chi war is not just a theoretical concept proposed by some retired, senile generals. But it is already in practice to gain supremacy over the world subjugating all powers. The war is playing out right in front of our eyes. Those who can see, without local politics and narrow ideology clouding their vision, will see the war we are in right now.
A powerful country like India is fighting a viral pandemic, fighting civil unrest, fighting economic collapse, and also fighting an adversary at the border. India did not create such a situation on its own like the propaganda wants you to believe. Events triggered from the outside have led India into this situation. And so have many powers around the world led into crisis.
In such an unrestricted warfare, all is fair. But there are some potent, non-kinetic weapons to be used when the time is right. One such weapon is an economic contagion unleashed to start the next phase of economic warfare. At the right time, when the virus has devastated economies, an economic contagion can ensure their subservience forever.
The pandemic has primed economies around the world for such an attack. It has devastated them, left them weak, and highly vulnerable. A lot of simulations and calculations have gone into the plan, I am sure. And so far the plan has been working out just perfectly. A great reset is going to happen as per the plan.
Democracies are printing money like nobody’s business. And trying to gain political support by keeping the economy afloat. Just as the planners of the first wave of attack envisioned, countries with currency power like the US, UK, and Europe have done monetary easing on a large scale.
After World War 1 and World War 2, many countries printed money to build the economy then failed miserably. Such indiscriminate printing invariably leads to inflation. And in time, this leads to a violent regime change because of an economic crisis. This has happened in Germany post world war I, Hungary post world war II, and Yugoslavia after the collapse of USSR.
Many countries are now setup for such a crisis since the pandemic hit in 2020, I feel. And to me it looks like if they don’t print the money, fresh waves of pandemic hit them until their economy weakens to force them to print cash leading to hyperinflation. This in a year or two will lead to civil unrest, regime change, and collapse of their sovereignty. A war won without firing a bullet, Sun Tzu must be thrilled.
Some countries like the US have long gotten away with indiscriminate printing of money. They never seem to be affected. Because they control the world economy with their economic religion and their currency plays god. The sheep that are fed Keynesian economic lessons believe it like science. And the US with the west play economic gods. But it may not be so anymore. Because we just discovered a wolf in sheep’s clothing — China.
The US dollar’s godliness is weakening, like some deities go out of vogue in Hinduism over centuries. This is happening both because of the US weaponizing the dollar making many turn away from it, and at the same time countries like China and Cryptos like Bitcoin are offering an alternative to everyone.
The US dollar is also not backed by Gold, and the US military power doesn’t seem as potent as it used to be decades ago to back their economic might. A virus seems to neutralize an entire US aircraft carrier. A situation only dreamed of by the Soviet Navy is now a reality. Again, for those who can see, the power backing the US dollar has already weakened.
The US has printed almost one third of its active money supply in the economy (also called M1), in just the last one year! There’s no production in the US economy to support this amount of money printing. The only thing this has solved for the US is make people happily sit at home without protesting. But how long can this go on?
They are consuming on free govt handouts in trillions of dollars while producing nothing. But there’s an even bigger danger. The US is now more than ever reliant on imports for its commodities. If these imports get hurt, if there’s a trade embargo, then it will trigger hyperinflation almost immediately. The recent Suez ship blockade crisis showed us what happens when toilet paper imports are hit.
When a country is in such a delicate economic situation, an economic attack will cripple it and send it into civil chaos sooner than later. A country like China which holds almost $3 trillion in USD reserves, trillions in treasury bonds, is the largest consumer of US goods, and is the largest exporter of commodity to the US, has all the levers to pull off such a crisis.
“Experts” would like to tell you China will never do such things. That dumping US treasury bonds or selling off US currency in trillions would amount to a war. That squeezing exports to the US or banning imports will hurt it more. And that the US will retaliate stopping all trade causing Chinese economy to collapse. So such an economic war by China is not possible.
But what they don’t tell you is all this depends on the leadership in the US. As we saw in 2020, as well as this year, most leaderships in the world failed to make China accountable for many hostile acts. Elites with deep ties to China, or friends of capitalists with such ties, now rule most democracies. They have infiltrated every institution from UN to WHO to Central bank and CDC. And such countries are no longer acting in their national interest.
China has enough resources and political capacity to take great economic pain itself, while the rest of the world becomes weak. Even if China doesn’t trigger an economic contagion soon, and start the next phase of its tai chi war on the world, we are still in for economic trouble. As we saw before, hyperinflation is inevitable because of monetary policies of many governments.
So how do we brace? Well, since last year I have been encouraging friends to invest in non currency assets: Crypto and precious metals in particular, as am not well versed with real estate, art, or currency shorts. You can definitely explore those too. But here is a post from 2020:
And one more a week later asking friends to hedge the market risk:
I told my friends to buy Crypto like Bitcoin and metals like Gold. Most were skeptical as this friend’s comments below show:
They thought I was bonkers to say Bitcoin will go 10 times higher to $100K from $10K. But later realized how much they missed the opportunity when it went to just $15K.
Right now Bitcoin has gone up already by 5 times to $50K! But that’s not the end of its bull run. It will go much higher to $100K soon. And will touch $300K a piece too one fine day. These are not some wild predictions but calculated conclusions based on the inflation risk we are sitting on.
Gold, since my post, has appreciated little. Which means it is a great buying opportunity even now. Even if you cannot buy and keep physical gold, which would be best for a full-fledged economic disaster hitting us, even paper gold like ETFs are good.
Gold, Silver, and some good Cryptos like Bitcoin are the only way to hedge currency risk for retail investors like us. That’s why am doubling down on my call to buy them again this year:
When people hear me cry “War” they immediately imagine missiles and bullets flying. And tell me that’s too far-fetched, and nothing of that sort will happen. They cannot understand wars these days are irregular, through diplomatic, cyber, bio, trade and other economical means.
Sure, all the unrestricted and irregular warfare may one day lead to a hot, kinetic war. But until then, remember, we are already in a war right now. A war for supremacy that uses all non-kinetic conflict means to subjugate the world. Of which economic warfare is one of the best, and it is coming.
Markets can crash like crazy. Currency may lose value faster than your coffee cools, banks can fail, accounts may show zero balance by cyber attacks, online transactions can halt, economy can stop functioning the way you know it. All is possible in an economic war. Though only the first two or three seem most likely for now. But please do prepare for the worst.