As the US/China Trade War heats up, China is preparing to launch a new monetary system centered around gold.

A New Monetary System Centered Around Gold
(King World News) – Dr. Stephen Leeb:  “The tensions between China and the U.S. have intensified into what some are calling a Cold War. Technology supremacy is at the center of the battle. The U.S. has decided that China threatens America’s putative supremacy in tech and wants to beat it back. One apparent U.S. aim is destruction of Chinese tech icon Huawei.

And with this Cold War, we should have no illusions about the outcome – we’re likely to lose. That’s because, unfortunately, the U.S. has been pursuing an approach that is misguided, shortsighted and could easily backfire. As with any war, hot or cold, to the winner will go the spoils. In this case, one of the spoils China will happily gain will be moving faster to a new monetary system centered around gold…

That in turn will deprive the U.S. of the weapon the dollar’s reserve currency status has long given it to enforce its will. The U.S. will lose the power to severely weaken foreign competition through enforcement of sanctions and the ability to limit supplies.

What is the misguided approach the U.S. is following? It’s to simply try to shut down the competition, and most notably Huawei, whose technological edge over us is apparent, rather than seeking to leapfrog it by developing even better technologies here. The danger is that if we don’t succeed in totally knocking Huawei out of contention, we will likely simply make it even stronger than before, with a more commanding lead and no need to work with American tech companies at all.

If I sound angry, it is because this is not the same great country that I grew up in. That country had to confront the Soviet Union’s successful launch of Sputnik and the revelation the Soviet Union was ahead of us in space technologies. How did the U.S. respond back then? By allocating billions of dollars to STEM education and massive R&D efforts – leading to our landing on the moon. If we’d reacted to Sputnik the way we’re now reacting to Huawei, we’d have simply shot Sputnik down, an action that would have done nothing to lessen Russia’s supremacy in space technologies.

Huawei is a remarkable company that the U.S. has been hammering with one blow after another in the name of national security, citing it as a conduit of Chinese spying. We started by restricting sales here of most Huawei products. Rural telecoms are the exception: Many telecoms in rural U.S. areas use Huawei products in their wireless networks because Huawei’s equipment is both better and cheaper than that of its competitors…..more here