Jim Rogers Warns "If Trump Starts A Trade War With China, It Will End US Hegemony"

Following Treasury Secretary Mnuchin's threat that the US could impose economic sanctions on China if it does not implement the new sanctions regime against North Korea:

"If China doesn’t follow these sanctions, we will put additional sanctions on them and prevent them from accessing the US and international dollar system, and that’s quite meaningful."

Billionaire investor and commodity guru Jim Rogers has a warning for the Trump administration - this would hurt America more because it just forces China and Russia and other countries to cooperate.

RT: What is the likelihood that the US will go through with and actually impose economic sanctions on China if it does not implement the new sanctions regime against North Korea?

 

Jim Rogers: Sanctions are sanctions. They could do sanctions which are not very important or don’t do much damage. And then they will have good public relations which says they have sanctions, but it is meaningless. I would suspect if anything, that is what they will start with. If they put sanctions on China in a big way, it brings the whole world economy down. And in the end, it hurts America more than it hurts China because it just forces China and Russia and other countries closer together. Russia and China and other countries are already trying to come up with a new financial system. If America puts sanctions on them, they would have to do it that much faster and in the end America will lose its monopoly on the financial system, which will hurt America more than anybody.

 

RT: What do you think, is it an empty rhetoric and saber-rattling from Donald Trump because he said “those [UN] sanctions are nothing compared to what ultimately will have to happen” without specifying what he meant by that. Do you think this is just mere bluff on the part of the US, or would it really use the ‘nuclear option’?

 

JR: If it uses a nuclear option for sanctions, it will hurt America much more than will hurt North Korea, it will hurt America much more than it will hurt China, Russia and everybody else. It will force the rest of the world to find an alternative to the US financial system. If he does that, it is going to cause a lot of turmoil in the world financial economy and in the end it is going to hurt America more than it is going to hurt anybody else.

 

I would give you an example, if you look at Russian agriculture right now – America put sanctions on Russian agriculture trying to hurt Russia, but it has helped Russian agriculture. Russian agriculture is booming now. In the end, America has hurt itself more than it has hurt anybody else.

 

RT: If that happens, what would the consequences be for the global economy? Could this end up becoming a global economic crisis?

 

JR: We are probably going to have a global economic problem, maybe even crisis, in the next couple of years. This may be one of the things that start it. There is always something which starts a crisis. If America does something like this, this could be the thing that did it. In 1929, it started when America started a huge trade war with the rest of the world and the economists said, “please, this is a mistake,” but America did that anyway. And then we had a great collapse and The Great Depression of the 1930s.

 

RT: Washington runs a $350 billion annual trade deficit with Beijing. China also holds more than $1 trillion in US debt. How could the US actually threaten China in such circumstances?

 

JR: Mr. Trump has been saying for over a year, two years, that he was going to start a trade war with China. He was going to put very high tariffs on Chinese goods. In his mind, he wants to do it, he is ready to do it. Some of his advisors are very much in favor of a trade war. It may very well happen. If it happens, it is going to be very bad for the world and it is going to be worse for America than for other people.

Furthermore, as we detailed previously, Beijing has announced plans to start a crude oil futures contract priced in yuan and convertible into gold and Rogers understands how much of a game changer this could be for an industry dominated by the dollar.

"This is just another step in that direction. Many people do not like using US dollars because if the US gets angry at you, they just set enormous pressure on you that can even get you out of business. China, Russia, and other countries understand this, and they are trying to move world trade and world finance away from that,” said the Jim Rogers.

As China is the world’s biggest crude buyer, the new contract may allow exporters to avoid US sanctions by trading oil in yuan. Such countries as Russia, Iran, Pakistan, Vietnam, China and many other Asian countries are interested in that, according to the expert.

The futures contract will allow participants to pay with gold or to convert yuan into gold without the necessity to keep money in Chinese assets or turn it into US dollars.

“The world has been moving that way. Iran will accept renminbi (yuan) from China now. The world is moving that way. China and Russia have currently swaps in rubles and renminbis. It is happening. But it is happening slowly. It takes a lot of time,” Rogers said.

The investor stressed the shift is not going to happen swiftly.

“In this case, there are so many people that actively want it, I would suspect that in less than ten years you will see a major shift into the trading of oil to Asia,” he said.

 

“When US dollar replaced the pound sterling, there was no one really going around trying to do it quickly. But now you have major economies: Russia, China, Iran and others – very much want this to happen. So, it will happen faster,” Rogers added.

 

Comments

Looney Sun, 09/17/2017 - 18:51 Permalink

  … It Will End US Hegemony The sooner, the better! I, and everybody I know, have never benefited from it, so FUCK IT! Looney

beemasters FreeShitter Sun, 09/17/2017 - 19:25 Permalink

"If America puts sanctions on them, they would have to do it that much faster"

I'm only surprised they haven't done it sooner....much sooner. What's the deal really?

"Many people do not like using US dollars because if the US gets angry at you, they just set enormous pressure on you that can even get you out of business. China, Russia, and other countries understand this, and they are trying to move world trade and world finance away from that,”

Again, why had it not been done sooner??? It would have probably saved millions of lives. They couldn't have JUST realized this now???

In reply to by FreeShitter

Escrava Isaura Stuck on Zero Sun, 09/17/2017 - 20:04 Permalink

Trade war? You would have to be a conservative to think that this stupid idea could work. The list is long, but I’ll give you a few: Doesn’t the US imports about 10 million barrels of oil a day? Doesn’t the US imports about 1 trillion cubic feet of natural gas a day? Isn’t these nations not only sending their resources and their cheap labor but their dollars savings to finance our lifestyle in the US? Isn’t the US economy about 70 percent consumption? What will happen to all these millions of workers? Yes, the neoliberal policies have been a total disaster for the shitty manufacturing jobs and blue color workers, however, if you were to acquire your 40 thousand dollar a year manufacturing job back, may I ask, who will afford to buy your manufactured crap? Where will you get the extra energy needed to build these new plants and keep them running? The US economy would collapse in five minutes, if Americans keep listen to its conservatives. Also, how would trade war help you, once the last growth remaining is not in the US? About 75 per cent of the world's people live in Eurasia, and most of the world's physical wealth is there as well, both in its enterprises and underneath its soil. Eurasia accounts for about three-fourths of the world's known energy resources." http://www.takeoverworld.info/grandchessboard.html   
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In reply to by Stuck on Zero

NiggaPleeze yogibear Sun, 09/17/2017 - 23:50 Permalink

 Well, the Fed's between a brick and an hard place.  If they don't buy a Chinese Treasury dump, interest rates will jump and very very "awful" things will happen (many bank and corporate failures, much higher rates); but if they do buy, they need ot issue $1 trillion of new CURRENCY, which China will spend, putting it into circulation and creating massive inflation.Either way, as I've been saying for years, the US (((rulers))) have (intentionally) put China in the driver's seat.

In reply to by yogibear

Singelguy beemasters Mon, 09/18/2017 - 06:34 Permalink

The deal is the $350 billion trade surplus with the US and the $1+ trillion in US treasuries that China holds. China needed that foreign revenue to build out its infrastructure and create a significant middle class. Those objectives have been largely achieved. China is now moving to become less dependent on exports and on a more self sustaining economy. When China starts selling more treasuries than they are buying, you will know that the party is almost over.

In reply to by beemasters

Singelguy beemasters Mon, 09/18/2017 - 06:34 Permalink

The deal is the $350 billion trade surplus with the US and the $1+ trillion in US treasuries that China holds. China needed that foreign revenue to build out its infrastructure and create a significant middle class. Those objectives have been largely achieved. China is now moving to become less dependent on exports and on a more self sustaining economy. When China starts selling more treasuries than they are buying, you will know that the party is almost over.

In reply to by beemasters

gatorengineer peddling-fiction Sun, 09/17/2017 - 19:15 Permalink

Pray tell where are the ZIO bosses planning on living?Also remember Putin is an unfinished work.  They have to accomplish two things there 1) get rid of Vlad (easy) and 2) convert Russia to being a German style globailist country (hard).There work in Europe is far from done.Israel is 3 nukes away from being erased... No the ZIO bosses want the US to survive for a while yeat (think 20-30 years).  

In reply to by peddling-fiction

just the tip Sun, 09/17/2017 - 18:54 Permalink

why sanctions?all that needs doing is to implement the shipping cost correction that commenters at ZH have posted and know better the details than i.  stop subsidizing shipping from china and let the individual consumer pay the freight if they want to.  that will have an effect.  sanctions never work.  fuck bezos.  fuck walmart.  fuck 'em all.stop subsidizing their shipping.  and make fucking bezos pay sales tax on purchases.  that will fuck him good and hard.

man from glad Bobbyrib Sun, 09/17/2017 - 21:35 Permalink

Wouldn't it be nice if the whole world just got to it but the USA just sat it out for once? In hindsight yeah, let Hitler try and invade a country 1000's of miles away with a rifle behind every blade of grass. I get it.. the victors get to write the history books but the US was an agressor to Japan prior to 12-7-1941. Fact.

In reply to by Bobbyrib

soyungato roddy6667 Sun, 09/17/2017 - 23:23 Permalink

About 80% of the Nazi military was wiped out by the Russians in the Eastern front. 20% or so in the western front by Europeans and the US. The US and the UK went into a killing frenze of German civilians by bombing Germany cities of no miliatry significance - genocide on an unparallel scale. Face your history, Americans.

In reply to by roddy6667

Catahoula Sun, 09/17/2017 - 18:55 Permalink

China has been waging currency and trade wars on the US for decades. Jimmy knows that. Hegemony is a ridiculous expectation when you're $20 trillion in debt. Communist China has more to lose than US. Jimmy, however, loves China. Lives in Singapore

roddy6667 yogibear Sun, 09/17/2017 - 22:34 Permalink

You make it sund like printing money has no repercussions. If the Treasury needs to print a few more trillion dollars, it becomes more debt that America has to support. Debt has already made America too expensive for manufacturing and driven jobs overseas. Sure, go ahead, print more fiat. Shoot yourself in the foot (again).  Some people never learn.

In reply to by yogibear

djrichard roddy6667 Mon, 09/18/2017 - 01:18 Permalink

Interesting, I always though the responsbility for trade imbalances rested with win/win outcomes between mercantilist countries manipulating their currency and the powers that be that benefitted from that arrangement in the US.  But you're suggesting it has nothing to do with that and everything to do with excessive debt in the US.  You have changed my whole world view.  /sarc

In reply to by roddy6667

cwsuisse Sun, 09/17/2017 - 18:56 Permalink

Jim Rogers is wrong in asserting that the US has put agricultural sanctions on Russia. The US and the EU have put various sanctions on Russia (some of them being more or less meaningless, some of them being more or less helpfull)  and Russia has returned the courtesy by imposing sanctions on the EU. This russian sanctions ban the import of certain EU agricultural products, which causes great harm to the EU agricultural industry. Russia has compensated the EU produce by imports from various non-EU countries and by strengthening the russian agricultural sector. The development of russian agriculture is very positive for Russia and Russia has enough space and the right climate to cover in future its needs by domestic production and to become a food exporter. 

mkkby cwsuisse Mon, 09/18/2017 - 03:44 Permalink

Rogers is a Soros boot licker. So he gives us this scare story about the sky falling if China sanctions. Here are all the ways that is bullshit.

China is the country where you get jailed/shot if you try to take out your money. So they know their own economy is so weak it cannot survive 2-way trade. This proves China's little futures market will have no effect. Any funds out flow will cause them to freak and shut it down.

The trillion in reserves is also no threat. If they let their people freely buy global assets it will be gone tomorrow.

Trump, bring on the border tax. Bring back the jobs by making it too expensive to ship plastic shit across oceans. The middle class has suffered enough. Fuck the traitorous corps right in the ass.

In reply to by cwsuisse

GooseShtepping Moron nmewn Sun, 09/17/2017 - 19:02 Permalink

At this point, I would be willing to become a full-time propagandist for China and all they would have to do is compensate me with a high-rise Beijing apartment, a weekly allowance sufficient to dine in style, and a regular supply of succulent yellow poon. That's not to much to ask, is it Xi? Please, somebody, buy me off!

In reply to by nmewn