Economic collapse of big economies like US and China may trigger war, says financial analyst Warren Pollock

By @diplomatist10 on
US President Barack Obama and Michelle Obama with Chinese President Xi Jinping and Madame Peng Liyuan
US President Barack Obama (R) and first lady Michelle Obama (2nd L) pose with Chinese President Xi Jinping (2nd R) and Madame Peng Liyuan as they arrive for a State Dinner at the White House in Washington, September 25, 2015. Reuters/Mike Theiler

Leading American financial analyst Warren Pollock has warned that the US will slip into the biggest ever financial depression in the history of the world. Not stopping there, the veteran also cautioned that the lingering economic turbulence in China and US will eventually trigger a war, which will be like "resetting the old order.”

Pollock notes that a climate of war is already in the offing and the world is getting ready for war. In his analysis, he brought to the fore many geo political variables to explain the current strains in the political economy of the world. They included China, Russia and the US Fed, among others.However, Pollock is optimistic that gold will survive all vagaries of depression or war, reports USA Watchdog.

“I wouldn’t sell my gold for anything because it’s going to survive through this crisis. It’s going to survive through deflation. It’s going to survive through hyperinflation. Gold is going to survive through war, assuming that you do,” Pollock said.

Economy and war

Pollock said the global economy is the key to the timing of war and argued that the world economy is in a tailspin.

"War starts when China’s economy implodes. . . . The economy in China is coming to a halt. It’s in deflation. It’s in a depression. All the capital that has been pouring into China has been misallocated. It’s similar to the 1920’s in the United States. The onset of the boom-time and the follow-on depression. . . . People in China want to get out of China. They want their assets out of China. . . They see this is going to be a full blown deflation where debt is going to go bad. People’s commitments are not going to be honored, and they might try to delay . . . bide for time and try the old formula first," Pollock said.

Message to China

Pollock sees signs of war manifest everywhere, including the recent US missile launch off the coast of California which is a message to China.

"They are firing them in the direction of China. What is amazing is the ocean is a vast place. They could have chosen anywhere to launch these missiles from and, instead, they launched them right next to a metropolitan area. So, really, they are sending a message to the people in the United States. More so than that, they are sending a message to the people in China. It’s definitely not directed at Russia," Pollock reasoned.

He said the government wanted to show that the US has a powerful military and is in control of the world, and the reserve currency is worth something.

Sign of impotence

However, Pollock lampooned that show of strength. 

“We are a strong military power and, really, on a conventional sense, the emperor has no clothing. This use of a last resort weapon, the demonstration of it, is really a sign of impotence,” Pollock quipped.

Pollock reiterated that the biggest financial depression in the history of the world will engulf US and added that  unlike what has been seen,  it is possible that war will turn into a resetting mechanism.

"Let’s look at it from the perspective of China. Their economy goes bad and guess what? They are going to say the Japanese are evil. The Americans are evil. . . . Japan sees this war coming. Russia sees this war coming. To some extent, some generals in the U. S. see this war coming. They are stockpiling bullets. They have their heads in their asses in the Pentagon," he added.

China harps on innovation

Meanwhile, Chinese President Xi Jinping told the Group of 20 (G20) summit that targeted medicine for sluggish growth is required.

In a speech entitled "Innovative Growth That Benefits All," the Chinese leader called for collective work to maintain a stable economic growth in the short term, while adding a new impetus to the world economy in the long term, the Xinhua reported.

Xi said the momentum generated by the last round of scientific and industrial revolution has waned and the potential for growth under the traditional economic system and development model is diminishing.

The G20 summit was held recently at the Turkish resort city Antalya and sought to underpin global confidence to ensure strong, sustainable and balanced growth in the world economy.

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