This Is The Top Risk To The World In 2018 According To Experts

Posted by Dirk Watters on

President Trump slammed China over reported North Korea oil sales and a pentagon insider issued an ominous warning of a coming "kill-switch" for the US Dollar.

President Trump slammed China over the country's illegal oil sales to North Korea, saying they've been caught "RED HANDED" and warning such incidents could diminish the odds of a "friendly solution".

U.S. spy satellites captured photos of Chinese ships illegally selling oil to North Korean boats some 30 times since October.

Satellite images released by the U.S. Department of Treasury appeared to show vessels from both countries illegally trading oil in the West Sea, The Chosun Ilbo reported Tuesday, citing South Korean government sources.
The satellite images appear to identify the ships. One of them " Rye Song Gang 1, seen "connected to a Chinese vessel" " was included in the Nov. 21 sanctions as a vessel of Korea Kumbyol Trading Company possibly transferring oil to evade sanctions.
While Russia exports some oil to North Korea, China is the main source of oil for the rogue nation, according to Reuters. That puts Xi Jinping and China squarely on a collision course with Donald Trump and the U.S.A" an inevitable clash of "Make America Great Again" against "Make China Great Again." The U.S. last year ran a massive $347 billion trade deficit with China, which President Trump has attacked as a sign of unfair trade. That deficit is also a major source of China's wealth, which now totals $1.2 trillion of U.S. treasuries. Recently a senior policy adviser to the Donald Trump campaign, said he is serious about imposing a 45% tariff on Chinese imports.
Such tariffs are not protectionist but rather defensive and consistent with actions taken by American presidents from George Washington to Ronald Reagan. Indeed, one of the first bills Washington signed was a tariff, which Alexander Hamilton justified as a necessary defense against a mercantilist Europe. However, this time it's different:

China owns more US dollars via their Treasury holdings than all of the US retail banks combined.

The U.S. relies on foreign nations to buy its debt and finance its deficits, which helps keep borrowing costs low. China's U.S. Treasury holdings in the trillions of dollars, according to the U.S. Treasury Department would trigger a backdoor "kill-switch" to the stability of the US Financial system. Even though the Securities Industry and Financial Markets Association (SIFMA) reports that daily volume of U.S. Treasury securities traded during the first two months of 2017 averaged more than $540 billion, $1.0 trillion of sales over a short period of time would trigger an unstoppable kill-switch. It seems likely, though, that after the China kill-switch of the dollar began, the U.S. Federal Reserve (Fed) could emerge as a buyer of Treasuries to calm markets further disrupting solvency. If China were to sell the entirety of its holdings of U.S. Treasury securities in retaliation to pressure from Washington to balance its trade surplus, the kill-switch effect to the US liquidity could be unsurmountable and devastating. What's going to happen in 2018? We don't know for sure. But CNBC reports a "cold war" with China is inevitable and the kill-switch dollar collapse will suddenly accelerate as happened to the sterling in 1931. Large institutional investors with hundreds of billions to protect are acquiring gold and other hard assets before that China kill-switch happens. Billionaire Dalio Recommends Gold as Hedge Against Rising Political Risk

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