The Chinese government has begun a concerted campaign of economic threats against the United States, hinting that it may liquidate its vast holding of US treasuries if Washington imposes trade sanctions to force a yuan revaluation.
Two officials at leading Communist Party bodies have given interviews in recent days warning – for the first time – that Beijing may use its $1.33 trillion (£658bn) of foreign reserves as a political weapon to counter pressure from the US Congress.
Shifts in Chinese policy are often announced through key think tanks and academies.
Described as China’s “nuclear option” in the state media, such action could trigger a dollar crash at a time when the US currency is already breaking down through historic support levels.
It would also cause a spike in US bond yields, hammering the US housing market and perhaps tipping the economy into recession. It is estimated that China holds over $900bn in a mix of US bonds.
But then, maybe not:
Dollar to collapse?
Disregard all hysteria. The ailing Greenback will not collapse this year, not in ten years, not in twenty years, not in half a century. There is no credible currency against which it can collapse. (Unless you count gold). None of the world’s rival power blocs have the economic and demographic depth to challenge American dominance.
What both these views leave out is the obvious: The Third Way.
This is something I’ve meant to write about but haven’t gotten around to. Here’s the Very Brief Version:
There is never, ever a choice between only A or B. Never.
A or B is only in your head because that is all you are concentrating on: Do I do A or do I do B?
A or B is an illusion your mind has fallen into. It’s a neat little trap that appeals to your narcissism. It entirely ignores all other outside factors. And it’s often those outside factors that come along and blithely melt away the false dichotomy of A or B and provide an option or solution that was never considered and, most importantly, could have never been predicted.
Here’s an example.
You’re sitting on public transportation and some son of bitch is being a nuisance. It can be loud talking into a cellphone, whatever. What immediate choices spring to your mind? Well, for me — until I discovered The Third Way — only two: the A or B.
A: Do I change my seat?
B: Do I punch out this piece of shit?
Along comes C to your relief:
C1: The scum soon goes away on his own.
C2: Someone else comes along to correct the scum’s behavior.
Sometimes the best action you can take is to just shut up and wait for C, The Third Way.
When Doomsday arrives here on earth, it will come from C. It will be The Third Way. And there’s no preparation for the unpredictable and the unexpected. So stop the worrying. It won’t help and it won’t change a thing.
And for all you eejits in thrall of that crap known as The Secret, you should notice it never, ever mentions The Third Way. (Hell, it doesn’t provide even the A or the B!)