"Every perception is to some degree an act of creation, and every act of memory is to some degree an act of imagination."
-- Gerald Edelman, Second Nature: Brain Science and Human Knowledge
8 The Geopolitical War1 The Capital WarChapter 7: US-China Relations and Wars2020-10-18Journal1 The Capital War2 The Capital War3 The Capital War4 The Capital War5 The Capital War6 The Capital War7 The Capital War8 The Capital War9 The Capital War10 The Capital War
The two main capital war risks are being shut off from capital (which is a greater risk for China than it is for the US) and losing one’s reserve currency status (which is a greater risk for the US than for China).
In Chapter 5 I reviewed classic capital war moves. They are all possibilities in the US-China conflict. The modern term for these moves is “sanctions.” The goal is to cut the enemy off from the capital that the enemy needs because no money = no power. Sanctions come in many forms with the broad categories being financial, economic, diplomatic, and military. Under each of these categories there are many versions and applications. As of 2019, there were approximately 8,000 US sanctions in place targeted at individuals, companies, and governments.\[7\] I’m not going to delve deeper into the various versions and targets because that would be too much of a digression. The main thing to know is that the United States has by far the greatest arsenal of sanctions. Most importantly the United States has the greatest influence over the global financial system and it has the world’s leading reserve currency. That gives it the ability to cut most entities off from receiving money and credit by preventing financial institutions from dealing with them by threatening those financial instructions that deal with the targeted entity with being cut off from the global financial markets. These sanctions are by no means perfect or all-encompassing, but they are generally damned effective.
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