War with China

Since the Chinese came across the Yaalow River and drove us back to the 49th parallel during the Korean War, I believe that we have technically been at war with China.

This war was put on hold by the aarmistice that halted, but not ended, the Korean war. Now that armistice has been broken by the North Koreans shelling and killing South Korean civilians.

Technically, we are probably still at war with the Chinese.

So why are we still trading with China?

The US Government claims that it is for global trade that is for the good of America. In fact, if you look at our trade imbalance, we would be much better off stopping trading with China.

The reality is that trade with China makes a small number of individuals very rich in the USA and impoverishes many of the rest because of lost jobs. These small number of individuals pay bribes (technically campaign contributions) to our politicians to continue this foolish policy from which they and the politicians make lots of money while the people of America suffer the consequences.

The politicians in Washington  make the argument that we owe the Chinese so much money that we cannot do anything to annoy them. The best thing we could do is to declare the Chinese as a rogue terrorist nation along with North Korea and Iran and stop trading with them.

They would immediately dump all their dollars onto the world market, which would devalue the US dollar by about 2:1, which would make us highly competitive against the Chinese. It would be disruptive to some rich people's lives - but hey, we are at war aren't we?

Internally, this would cause massive layoffs in Chinese factories and great internal unrest in China - which is just what we want to happen. It would also cause the creation of millions of jobs in the USA to replace the goods we should no longer buy from China.

Make no mistake, the Chinese are our competitors and our enemy. If you don't understand the link between these two, read Clausewitz on warfare being an extension of economic policy.

At a recent presentation I attended, on international trade embargoes, by US Government officials, I was heartened to see that China had finally been placed on the watch list of countries suspected of forwarding technology to terrorist nations like North Korea.

Maybe we are starting to get some sense after all.

If politicians want to get re-elected they need to create jobs in the USA. The quickest way to do this is for the US Government to recognize that China is a rogue state and to stop trading with China. Then get out of the way and let American entrepreneurs create the factories and jobs to replace the goods that we need, without the unfair and crooked competition from China.