The Great Reset, aka World War III, the Plutocrats against the People, is now being advanced by sanctions on Iranian oil exports to China. The intention is to destroy China’s industrial base and to cause the downfall of the Chinese Communist Party, which is not popular with the Chinese people.
As frequently noted by Neocon spokesmodel Peter Zeihan, Russia and China are in positions of demographic vulnerability (see this pinned post for details). Both suffered periods of minimal population growth due to geopolitical events; in Russia, it was the collapse of the Soviet Union in 1991 and the depression that followed; in China, it is the hangover from the Great Leap Forward in the Maoist era. Their populations are forecasted to decline significantly this century.
The Neocons believe China’s strategic weakness is its dependence on imported food and oil. China is a trading nation that needs to generate exports equal to almost 20 percent of GDP to service these needs. Zeihan has often said that if China’s access to oil were cut off, the population would enter mass starvation and deindustrialization within six months.
Singaporean Sean Foo does a good job explaining the economics of the current situation. He communicates the gravity of the situation for China in his facial expressions. China is the world’s dominant manufacturing power and is being told by the US to stop producing so much so cheaply.
Both China and the US carry heavy total nonfinancial debt to GDP ratios:
As of the latest available data:
This debt is the legacy of President Nixon taking the Bretton Woods system off the dollar gold peg in 1971. The predictable result was always fiscal improvidence and inflation, a “race to the bottom” for major world currencies. The dollar is being defended against depreciation by the Cabal-induced conflicts in the Middle East that are sending capital flowing from Europe and the Middle East to the US.
The sanctions on Iranian oil exports to China will worsen global inflation.
For the past ten years, the dollar has been on a bull run and appears poised to move higher. The stigmatization of China by US authorities among US and other Western businesses — along with the repressiveness and unpopularity of the CCP among its people — has driven capital out of China in bucket-loads.
The proposed oil embargo of China is reminiscent of the US oil embargo of Japan before World War II, intended to provoke an attack. Memo to Xi: don’t do it. Don’t “take” Taiwan, it won’t work out well for you. TSMC will send all its employees to Arizona, and you’ll be left with a worse relationship with the Taiwanese than you have now.
Data show that Taiwan depends more on China for trade than it does on the U.S. In 2021, mainland China and Hong Kong accounted for 42% of Taiwan’s exports, while the U.S. had a 15% share. Additionally, about 22% of Taiwan’s imports came from mainland China and Hong Kong, compared to 10% from the U.S.1. The trade volume between the Chinese mainland and Taiwan reached $267.8 billion in 2023, remaining at a high level2. Overall, China is Taiwan’s most important trading partner, followed by the United States3. These figures highlight the significant economic ties between Taiwan and mainland China, driven by large Taiwanese companies operating factories in mainland China1.
Video Summary: "US THREATENS China’s Iran Oil Imports As India Ditches US Crude For Cheap Russian Oil"
The economic war between China and the US intensifies, with recent moves targeting Iran's oil exports. The US Congress votes overwhelmingly to sanction China's purchase of Iranian oil, potentially impacting China's energy security. This legislation, if passed, could have dire consequences for China's economy, as it would expand secondary sanctions against Iran, affecting transactions between Chinese and Iranian banks. China is Iran's primary buyer, accounting for 91% of its total exports, providing Beijing with cheap energy sources and bypassing the US dollar. However, China's pivot towards Russian oil is evident, with imports reaching record highs, indicating a shift away from US crude. This move not only impacts global energy markets but also affects geopolitical dynamics, benefiting China and India economically, while Europe faces challenges in sourcing affordable energy. Despite efforts to sanction Russian oil, its volumes and revenues continue to rise, showcasing the limitations of Western strategies. Ultimately, China and India emerge as winners, capitalizing on cheap Russian oil and profiting from Europe's increasing demand. As geopolitical tensions escalate, the repercussions on global energy dynamics remain uncertain.
Key Takeaways:
US Congress votes overwhelmingly to sanction China's purchase of Iranian oil.
China's reliance on Iranian oil poses a threat to its energy security.
China's pivot towards Russian oil is evident, with imports reaching record highs.
India opts for Russian crude over US supply due to cost-effectiveness.
European dependence on Indian refined fuel increases, signaling a shift in energy dynamics.
Despite Western efforts to sanction Russian oil, its volumes and revenues continue to rise.
China and India emerge as winners, while Europe faces challenges in sourcing affordable energy.
Geopolitical tensions impact global energy dynamics, with uncertain repercussions.
Have a blessed day! The number of the US Capitol switchboard is 202-224-3121.