Economic Crisis in China?

Economics, Premium POM

Anglo-America Tightens Grip on China before Important G20 Summit

By JC Collins

Interests from within the Anglo-American establishment have been busy promoting the script of economic collapse and crisis in China.  George Soros and other western interests in recent days have been projecting influence through media and banking channels regarding an imminent crisis in China.  It is also suggested that this crisis will kick-start changes and reform to the international monetary system.

In addition to this information war, the Anglo-American establishment is conducting naval exercises in the South China Sea called Freedom of Navigation.  Japan has joined this exercise against the warnings from China.  The tension in the area is definitely building and the Chinese are pushing back by sailing coastguard ships within distance of disputed islands in the East China Sea, which has Japan protesting the violation of their sovereignty.

The most important G20 Summit in years is being held on Sept 4th and 5th in Hangzhou China.  Topics of discussion at the summit will be the reforming of the international monetary system and the broader use of the SDR.  These changes are directly related to a reduction in demand for US dollar denominated financial instruments.

This change in how the monetary world is structured will have a dramatic effect on the interests of the Anglo-American establishment.  Though it is understood and accepted that these changes need to take place, western interests are making strategic moves at every step to position themselves for as much advantage as possible.

This is why we are seeing the latest propaganda and information war taking place against Chinese financial and banking interests alongside naval exercises in the South China Sea.  It is possible that the Anglo-American interests are attempting to distract away from the monetary reform importance of the G20 Summit in order to buy more time or make backdoor deals while the world is distracted with naval tensions and disputed islands.

An example of these types of backroom deals regarding monetary negotiations can be found in the post The Bretton Woods Origin of the Cold War.

China will be issuing SDR bonds in the coming weeks and months and the shift in liquidity which will take place will be the first milestone in rebalancing the international monetary system.  This rebalancing could push the world back into a cold war type of dynamic were economic power and influence is shared amongst the major world powers.  This will include the cold war diametric of the US and Russia, but this time will also include China and a growing India.

Whether China suffers an economic crisis in the coming weeks or months will have to be seen.  Chinese monetary authorities have been condemning the western talk of a financial crisis developing.  But that doesn’t mean it won’t happen.

The stage may have already been set for this crisis but it doesn’t mean that it would change anything for the SDR or China’s role in the emerging multilateral.  That will continue as it is in the benefit of all interested nations that the rebalancing takes place.  But it could dampen the role which China will play in issuing SDR denominated bonds.

Such a crisis could provide a pretext for the Federal Reserve to step in and provide additional SDR bonds and liquidity.  Either way, it would be a mistake to think that the Anglo-American establishment has not strategically planned for this transformation and has pre-installed a noose around China’s neck.  Whether the Chinese have been aware of this and prepared themselves accordingly will have to be seen.  – JC