Governments love war, so much, that the whole purpose of a Government is to create war. They are the instrument of violence in society, of the highest level. The smallest Government is a night mugger, who just randomly stumbles on people and robs them. But when this system gets organized and grows tremendously, it starts to fight with other Governments. You know like 1 thief stealing from another thief, but the only who suffer are actually the victims.

In cyber warfare, one state sponsored hacker group hacks another state's innocent civilians or businesses, which affects civilians. And as a retaliation, that Government will counter hack the aggressor Government, by hurting their citizens. Yes.

Are the civilians innocent? Well they do support their Government's behavior after all, even though taxation is forced, it's not like you see massive protests against certain things. People are too complacent or dumb to resist.

Now the newest form of warfare is trade wars, and it looks like it's happening between US and China.

Trade Wars

China is well known for it's massive export policy, and their cheap goods, which are in some cases pretty decent quality. So you have a global superpower that exports decent quality goods, for ultra low prices, and you have the US which barely exports anything now except foreign interventions.

Alright, so I get Trump's position, he wants to give the jobs back to Americans, by brining back the jobs from China, through imposing tariffs, which is a direct interference with the Free Market.

Oh so a Government wants to interfere with the Free Market? Who would have though that? But the Free Market has a very weird and annoying aspect of being more efficient than the Government, which means that in the ultimate war between Freedom and Government, Freedom will win.

Now will this happen before WW3, WW4, WW5? I don't know. For all I know is that this battle could last millions of years. But eventually, something more efficient will always replace something less efficient. And we can't have iron age violent theft based societies in the modern age, so everything has it's end.

So in this trade war case, the Free Market will probably win, and the Free Market is ironically now on the side of Communist China.

Ramifications

Alright so the logic is that since China exports so cheaply, and puts a tariff on US imports, while the US doesn't have tariff on Chinese imports, which effectively discourages US imports to China, and encourages Chinese imports to US.

Trump wants to equalize that and wants to put a tariff on China imports, and that souds fair.

So imagine hypothetically we start with a simple 1% tariff. So both sides have a 1% tax on all imports from the adversary region, and then the following scenario happens:

• Since the situation is equal after the US puts a 1% tariff, China wants to maintain the dominance and increases it to 2%.
• US responds and increases it to 2%, so both sides 2%-2%
• China increases it to 3% to have advantage again
• ........
• US increases tariffs to 600%
• China increases tariffs to 601%
• .......
• US increases tariffs to 6000%
• China increases tariffs to 6001%
• .....
• And you get the picture.

And the only loser will be the civilians of both countries. It's no wonder, that they say that the biggest casualties of war are civilians. If you look at WW2, most people who died were civilians, while Hitler hided himself like a coward in his bunker.

Currency Wars

Now of course trade war cannot happen without currency manipulation, so picture the analogy described above, but add to it currency devaluation.

So whenever 1 party increases it's tariffs, the other party will devalue his currency severely, probably by the tax amount to cancel out the tax effects. So if US adds 1% tax to China import, then the CNY will be inflated 1% to cover the costs of import. And similarly the US does the same in the opposite case.

So what will Trump's policies accomplish. Probably Dollar devaluation at best, and global hyperinflation at worst.

I mean you don't need to be a genius to figure out that this is a race to the bottom. Governments are destroying themselves, on their own, just sit back and watch.

So who will end up being the winner? Bitcoin, and the other cryptocurrencies. If you think BTC is now being pumped up by Chinese who are fleeing the CNY devaluation? Well then wait and see what will happen when the real trade wars begin.

A 1 million $ Bitcoin, is not entirely out of the picture. Only the Free Market can stop all the wars.

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