Wars can be fought on many fronts, including the financial front. Does China have a financial war strategy? From Adem Tumerkan at palisade-research.com:
Last Friday I published an article highlighting the emerging Trade War between China and the United States. As I wrote then, you have the opportunity to position yourself correctly and benefit from their fighting.
But first, I think it’s necessary to take a deeper look at China and understand their strategy. I don’t think many realize what they’ve been up to for the last 20 years while preparing for any potential trade wars.
Also, I list the four things China could do in retaliation of a trade war. All four options would be devastating to the U.S. and global markets.
Let’s look at some history. . .
It started in the late 1990’s.
China realized that modern warfare wouldn’t follow the same path as traditional wars – swarming troops and tanks and planes into other countries and shooting at one another in attempt to occupy their land.
There’s this little known book that was published two decades ago and explains all the pieces in China’s strategy. . .
The book is called Unrestricted Warfare by Qio Liang and Wang Xiangsui. Both men were Colonels in the air Force for the Chinese military.
In the book, they write about the collapse of Asian economies in 1997 – what’s known as the ‘Asian Contagion Crisis’ – when U.S. hedge funds “attacked” the currencies of Southeast Asia.
This to them was an example of the new generation of warfare. . .
What we call Financial Weapons of Mass Destruction (F.W.M.D).
We’ve seen the U.S. engage in Financial Warfare by using sanctions on countries that don’t play ball with us. An example of this type of warfare are the economic sanctions imposed against Iraq, Iran, Russia, and North Korea.
Cutting them off from world trade, the SWIFT interbank money transfer systems, and curbing their debt markets are some of the weapons used in financial warfare.
After witnessing the Asian Contagion Crisis, China’s military was one of the first to adopt a financial war strategy – years before the U.S. did.
To continue reading: China’s History of Financial Warfare and The 4 Options They Can Use To Win