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  • Americans love flags.

  • The over-sized flag, theStar Spangled Banner”, was a strategic tool of Fort McHenry

  • at the Battle of Baltimore and the US national anthem itself is named after the flag.

  • If the United States ever truly intended to communicate that it believes Beijing seats

  • the rightful government over the island of Taiwan, then Washington DC would have demanded

  • that Taiwan fly the Chinese Communist flag over its own flag, like Hong Kong does.

  • But, it didn’t and they didn’t ask.

  • The test of what Donald Trump thinks about China is not a question of how many times

  • he sees the wordChinaon his globe at home, but what flags he accepts flown where.

  • Is China wise to what’s going on?

  • Perhaps money is making all the difference.

  • China’s PLA Navy is headed for an increased budget.

  • If money was China’s answer, perhaps money tipped-off Beijing in the first place.

  • According to Obama Treasury rules, China is only 1/3 of a “currency manipulator”,

  • exceeding a $20B trade deficit with the States.

  • The other two rules relate inflation to GDP and official currency purchases to GDPtwo

  • things where China plays by a different set of rules than American economics.

  • Chinadeclaresits own currency value, it is not determined by the markets, making

  • what the US refers to asinflationirrelevant to China.

  • The second irrelevant Obama rule relates toofficialcurrency purchases.

  • If only economics were only affected byofficialpurchases, many other economic problems would

  • be solved.

  • But, economies are affected byactualpurchasing, not merely whatever we happen

  • to label asofficialthis decade.

  • The Chinese, especially, are experts at looking goodofficiallywhile doing the bulk

  • of their work under the table.

  • Why else would Asians be so focused on cram schools and testing?

  • Then, there is the task of calculatingGDPin a heavy back-and-forth trade economy.

  • In 2011, the US slapped tariffs on China-made solar panels, which were made with materials

  • imported from the US, which China also slapped a tariff on.

  • Not only is actualdomesticproduct difficult to measure in a “Venn diagram

  • of overlapping markets, there is also the problem that China’s government behaves

  • like a company itselfbenefiting from tariff revenue, thereby triggering another slew of

  • investing and purchasing opportunities.

  • If economics were a pair of glasses, China operates in ultraviolet light that no pair

  • of US lenses can detect.

  • So, not only were the Obama Treasurycurrency manipulatorrules an attempt to measure

  • the light with a wind sensor, Trump gets what Trump wants.

  • If China is destined for thecurrency manipulatorlist, it will get on that list one way or

  • another, and there is a laundry list of ways that can happen.

  • But, then, there is North Korea.

  • While theexpertslecture the world about howtrade warsalways backfire,

  • China harbors its own trade war with the government in Northern Korea.

  • Kim Jong Un isn’t happy with Beijing and Beijing wants to talk about it with the US.

Americans love flags.

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