Thread by @PandemicTruther

Latin America's US$ trap explained:

US$ supremacy means it's an international currency. In many countries, US$ can come in & leave as it likes. Thus emerging economies are extremely vulnerable to US$ movements which US Federal Reserve can manipulate through interest rate.

Thus, US can program the cyclical economic prosperity and crisis in many countries. Both are useful for the US to reap the accumulated wealth of countries.

Have you wondered why US stops at no means to make every country adopt market economy allowing unrestricted

capital movements? When US talks about freedom, it's the free capital flow they have in mind. That's the politically correct way for a country to exist in this world, because only this can enable US$ capital to control the world.

How you wondered why developing

countries are forever developing and never become developed?

In the 1960s-1970s, for a while, the economies of South America looked good, but soon their prospects of continued prosperity vaporized. The Western economists invented the concept of "Middle Income Trap".

Middle Income Trap is in reality US$ trap.

US does this through the cyclical change of the US$ interest rate.
When the interest rate on the U.S. dollar is low, it's easier for capital to make money outside the U.S., so the dollars flow into emerging countries in

huge quantity, pushing up local asset prices and forming economic bubbles. When the economies are sufficiently developed, when companies have become quality asset in emerging economies, the occasion is ripe to reap the wealth. The Federal Reserve then raises the interest rate.

At this time, it's more expensive to borrow money from US banks and more profitable for money to stay in the US banks earning interest rate, so US dollars begin to flow back to the US in huge amount. Because of the sudden massive capital flow back to the United States,

the local economic bubble of emerging countries burst, asset prices fall sharply. Also, when the interest rate of US$ goes up, companies and governments can no longer repay their US$ loans and go bankrupt.

At this time the U.S. capital make a fast U-return and come back as

saviors, massively buying up local high-quality assets at very low prices.

To repeat and summarize, when country A was poor, dollar capital came to invest heavily, and the local market became prosperous because of the sudden influx of capital. The market is booming,

real estate and stocks are going up and up and up. At this time, the people of country A are thinking, wow, the economic situation is good, so they also begin to invest heavily with their hard earned savings.

When the time to harvest the wealth is deemed to be ripe,

the US Federal Reserve raises abruptly the interest rate. U.S. dollars immediately flow back to the United States to earn the high interest rate.

Devoid of the US dollar capital, the economic bubble begins to deflate.
Seeing their asset prices fall, locals begin to sell,

causing the free fall of the asset prices. Panic gets hold of the countries, companies go bankrupt in waves, local currencies become worthless, inflation becomes rampant, governments and companies default on their US$ loans now charging much higher interest rate,

decades of savings of the local people vaporize. A country enters into a full-blown economic crisis. Then US$ capital comes back & buys up quality assets with pennies on the dollar, literally at 10% of the original price. The gleaming buildings have not changed, the roaring

machines of the factories have not changed, but the price has dropped to the original 1/10 or even lower.

There's absolutely no such thing as the invisible hand of the market. The hand manipulating the market is always visible and deliberate. We have an impression that it's

invisible because MSM don't report on it.

US did this to Latin America and South East Asia. When countries are developing their economies, they are accumulating their wealth for America to reap, so they receive the US blessings in the form of investments. China's rising had

the blessing of the US, because US thought it was fattening the chicken to be slaughtered and eaten later.

That's why the US is so eager for every country to open up their financial markets. Only with freedom of capital, can the US practice legal looting and plundering,

the financial fascism.

US hates China because China practices capital control. China market is not open to the US financial looting and manipulation. That's why China is evil. That's why China must adopt democracy/freedom, so America can turn China into South America.

However the current situation looks as if America is turning itself into South America with its astronomical debts.

Maybe China should do to America what America did to South America bearing in mind China is the biggest creditor of the US.

The banksters' jargon for this method of financial looting is "shearing the wool". Remember there's nothing federal about Federal Reserve, it's an association of private banks.

China is evil because China has an industrial policy? Isn't US subsidizing its semiconductor industry with 52bn US$ state-centered non-market practice? What US did to Huawei doesn't seem to be fair competition.

US' prosperity has been built on the sorrow of rest of humanity.