The US financial war against China is heating up and this will have a big impact on the US dollar and gold.
US Financial War Against China Heats Up
February 14 (King World News) – Gerald Celente: In 2023, the U.S. trade deficit with China fell to its lowest since 2010 as U.S. firms and government agencies continued to “reshore” and “friendshore” their suppliers to protect the flow of materials and in response to China’s stumbling economy and the country’s geopolitical tensions with the West.
The deficit amounted to just 1 percent of the U.S. GDP, the smallest since 2002, the year after China entered the World Trade Organization, Bloomberg reported.
Since then, China’s wages have risen and the Trump administration layered a range of tariffs on Chinese goods, making them more expensive in the U.S. and giving manufacturers in other countries a better chance to compete.
Trump has promised tariffs of up to 60 percent if he returns to the White House…
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Last year, the U.S. imported 20 percent less from China, a greater drop than the fall in U.S. exports to that country.
“The data for 2023 have confirmed that the geographical pattern of U.S. imports is shifting away from China and toward other partners,” Bloomberg global economist Maeva Cousin told the news service.
“Tariffs since 2018 have been a major driver of these shifts, but we are now seeing some early signs that U.S. trade diversification might be broadening to other categories as well,” she added.
There are a number of caveats, including that U.S. importers may be incentivized by geopolitics to under-report how much they buy from China.
But with China’s economy showing less dynamism, and U.S.-China tensions hardly likely to go away amid deep disputes on everything from
Chinese hacking into U.S. networks to respect Taiwan’s democracy, the fundamental dynamics have changed at least as dramatically as China’s WTO entry in 2001.
TREND FORECAST:
With China’s wages having risen and it costing more to make products, plus the Trump administration having layered a range of tariffs on Chinese goods that made them more expensive, U.S. manufacturers continue to look for cheap labor in other countries to get their products made. Trump has promised tariffs of up to 60 percent if he returns to the White House.
This trend will also continue as geopolitical conditions between Washington and Beijing worsen as a result of China wanting to take back Taiwan and other issues involving America’s allies regarding disputes in the South China Sea.
King World News note: The US financial war against China is heating up, and the coordinated withdrawal of US and European corporations from China has collapsed the Chinese economy. So China is experiencing a depression right now. This means the Chinese may be forced to play the gold card sooner than many anticipate. Meaning a move with BRICS or on their own to back their currency with gold. Gold coming back in the monetary system is not what the West wants to see at this point because most of the Western gold has already been sent to the East, and as we all know, “He who has the gold makes the rules.”
***To listen to Gerald Celente discuss why 2024 is going to be a wild year and what to expect from major markets CLICK HERE OR ON THE IMAGE BELOW.
***Alasdair Macleod’s audio interview was just released discussing the Chinese public buying close to all-time record amounts of physical gold. To listen to Alasdair Macleod discuss the near all-time record demand for gold and what this means for the price of gold in 2024 CLICK HERE OR ON THE IMAGE BELOW.
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