Trade Wars Ep I: No More Hope
In a galaxy not so far away, smaller nations are trembling as Armageddon is threatening the very planet they live on.
No, there’s no Death Star pointing its weapon at Earth, and so far, no Imperial destroyers have been sighted on our side of the galaxy.
The danger is coming from an impending Trade War between Earth’s most powerful economies: the U.S. and China. And no one is really sure if there are even any good guys in the story…
The U.S. and China are on a Collision Course (Shutterstock)
You already guessed it, in our new TGIF series, we’ll be talking about Trade Wars and how the next big one is going to shape the global economy.
Many of Earth’s inhabitants are fearful about the attitude of one of their overlords, the infamous U.S. President Trump.
And rightly so, as we’ll see that the U.S. ruler’s attempt to boost the domestic steel industry by imposing import tariffs could have wide-ranging effects beyond just the two giant economies’ shores.
But the galactic overlord doesn’t appear to be susceptible to external pressure to back down and continues to push through with his own personal political agenda.
Despite the fact that history has taught us that no one ever comes out on top after a trade war, it seems like we’re headed for one anyway.
Next, we’ll find out who stands to lose the most in the heat of a trade battle and what effects blasting tariffs at the enemy will have.
It’s a strategy the American ruler has already put into action against China.
But there’s something incredibly odd about this…
Let’s check out the graph below.
We see that the same country the U.S. leader views as an enemy, is actually the largest foreign holder of U.S. treasuries.
That basically means China is the U.S.’ biggest lender.
Isn’t getting into a trade war with a country you owe so much money to a recipe for disaster? Surely, not even President Trump could be that stupid…
There has to more behind this intriguing story and you’ll find out all about it in a later episode of Trade Wars.
Let us not forget that when a trade war does break out between these two empires, the other nations of the galaxy will be able to stay out of harm’s way.
You see, the Asian production chain is interconnected throughout the entire region. So if one nation is struck, many other countries, which may have no wish to partake in the Trade Wars, will get sucked into it anyway.
“Made in China” actually means assembled in China, this phone’s components come from all over Asia. (Shutterstock)
So, is there no more hope left for anyone?
Well, shrewd investment troopers might be able to benefit from the ruins of war.
The ensuing chapters to the Trade Wars saga will reveal how the savvy troopers could pull that off.
We will conclude our TGIF series with how currencies like the Euro and the Chinese Yuan could be affected by a trade war.
So stay tuned for a series of otherworldly episodes from the Trade Wars epic.
Trade Wars Episode II: The Tariff Menace