Qiao Liang is a famous Chinese military writer, military theorist and commentator, Air Force Major General, professor at National Defense University, deputy secretary-general of the National Security Policy Research Committee, and a member of the Chinese Writers' Association.In 1999, the publication of his book on military theories, "Ultra-Limit Warfare," which he co-authored with Wang Xiangsui, alarmed the U.S. Pentagon, and was considered to be the first strong challenge to the so-called most advanced military theory in the world after the dissolution of the former Soviet Union. It was recognized as "the first strong challenge to the so-called world's most advanced military theory since the collapse of the former Soviet Union".
    The United States dominates the world because it has two fists: one military and one monetary. These two fists play a combination punch, almost invincible, KO one object after another. Next it was China's turn to get in the ring, but China fought Tai Chi, which is all about softness and four-two-throwing ......
OK, before the good show, we might as well see the moves and see how General Qiao Liang, the author of this article, dismantles the U.S. combinations and sees his moves.

I. Rise of the financial empire
 
    In July 1944, the United States, in order to take over the monetary hegemony from the British Empire, was pushed by President Roosevelt to establish three world systems, a political system - the United Nations; a trade system - the General Agreement on Tariffs and Trade (GATT), which later became the WTO; One is the monetary and financial system, the Bretton Woods system.

    The Bretton Woods system, according to the desire of the Americans, was to establish the hegemony of the dollar. But in fact after more than 20 years of practice, from 1944 to 1971, a full 27 years, but did not really let the Americans get the hegemony. What blocked the hegemony of the dollar? It is gold.

    At the beginning of the establishment of the Bretton Woods system, in order to establish the hegemony of the United States dollar, the Americans had made a commitment to the world, that is, to lock the currencies of all countries to the United States dollar, and the United States dollar to lock the gold. How to lock it? Every 35 dollars for 1 ounce of gold. With this commitment of the dollar to the world, the Americans can not do whatever they want. To put it simply, 35 U.S. dollars for 1 ounce of gold, means that the United States can not be indiscriminate printing of U.S. dollars, you print more than 35 U.S. dollars, your treasury will have to reserve more than 1 ounce of gold.

    The reason why the United States had the courage to make such a promise to the whole world was that it held in its hands at that time about 801 TP3T of global gold reserves. The Americans thought, "I have so much gold in my hands, there is no problem to use it to support the credit of the dollar. But the situation was not as simple as the Americans thought. The United States was foolishly involved in the Korean War and the Vietnam War consecutively after World War II. These two wars cost the U.S. a great deal of money, especially the Vietnam War. The United States almost knocked off eight hundred billion dollars in military spending during the Vietnam War. As the wars became more and more costly, the United States was a bit overwhelmed. This is because every $35 lost means 1 ounce of gold lost, according to the U.S. commitment.

    By August 1971, there were about 8,800 tons of gold left in the hands of the Americans, and that's when the Americans knew there was a bit of trouble, and at the same time some people were making new trouble for the Americans. For example, the French President Charles de Gaulle, he did not believe in the dollar, he approached the French Minister of Finance and the Governor of the Central Bank, to see how much dollar reserves in France, the answer is about 2.2 billion - 2.3 billion U.S. dollars. De Gaulle said, not a single cent left all raised to the Americans, exchanged for gold to get back. The French on the Americans of this blow to other countries have a demonstration effect, some other foreign exchange surplus countries have to the Americans, we also do not want the dollar, we want gold. This forced the Americans to go nowhere.

    So, on August 15, 1971, then U.S. President Richard Nixon announced that the gold window would be closed and the U.S. dollar would be decoupled from gold. This was the beginning of the disintegration of the Bretton Woods system and a betrayal of trust by the Americans to the world. But for the world as a whole, at that time, people could not quite make sense of it. We believe in the dollar because there is gold behind the dollar, and the dollar has been the international circulation currency, settlement currency and reserve currency for more than 20 years, and people have already been accustomed to using the dollar.

    Now that the dollar has suddenly put the brakes on, it no longer has gold behind it, it has theoretically become a pure green paper, do we still want to use it at this point? You may not use it, but what is the measure of value of goods in international settlements? Because money is a measure of value, so if you don't use the dollar, can you trust another currency? For example, between the yuan and the ruble, if the Russians (the Soviets at the time) don't recognize the yuan and we don't recognize the ruble, we have to continue to use the dollar as the medium of exchange between us.

    Therefore, the Americans took advantage of the inertia and helplessness of the world and forced the Organization of Petroleum Exporting Countries (OPEC) in October 1973 to accept the conditions of the Americans: global oil transactions must be settled in dollars. Before that, global oil transactions could be settled in various internationally circulating currencies, but after October 1973, everything changed and OPEC announced that global oil transactions must be settled in dollars.

    In this way, the Americans pegged the dollar to the commodity oil after having decoupled it from the precious metal of gold. Why? Because the Americans see very clearly, you can not like the dollar, but you can not not like energy, you can not use the dollar, but you can not use oil? Any country to develop, to consume energy, all countries need oil, in this case, you need oil is equal to the need for the dollar, this is the Americans very clever trick. Since 1973, after the dollar and oil peg, in fact, from 1971 after the dollar and gold decoupling, the dollar along with the United States began a new course.

    Not many people in the whole world saw this clearly at that time, including many economists and financial experts, who were not able to point out very clearly that the most important event of the 20th century was not other than World War I, World War II, or the disintegration of the USSR, but that the most important event of the 20th century was the delinking of the U.S. Dollar from gold on August 15, 1971, which was the most important event of the 20th century.

    Since then, mankind has truly seen the emergence of a financial empire that has incorporated the entire human race into its financial system. In fact, the establishment of the so-called dollar hegemony began at this moment. It's been about 40 years to this day. And from that day on, we entered a real paper money era, where the dollar no longer had precious metals behind it, but was backed entirely by government credit and profited from the world. Simply put: Americans can obtain physical wealth from the world by printing a piece of green paper. There has never been anything like this in human history. There are many ways to get wealth in human history, either by currency exchange, you either gold or silver; or by war to plunder, but the cost of war is very huge. And when the dollar turned into a green paper appeared, the cost for the United States to profit can be said to be extremely low.

    Because the dollar is decoupled from gold, gold is no longer dragging the dollar's leg, and the United States can print dollars at will, at which point a large number of dollars, if left within the United States, will cause inflation in the United States; if the dollar is exported, it means that the whole world is digesting inflation for the United States, which is the main reason why the dollar's inflation rate is not high. In other words, the U.S. exported dollars to the world, which also diluted its inflation. But after the dollar is exported globally, there is no money left in the hands of Americans, and at this time, if Americans continue to print money, the dollar keeps depreciating, which is not good for the United States. So the Fed is not a central bank that prints money indiscriminately, as some people think. The Fed actually knows what restraint means. In the 100 years from the Fed's founding in 1913 to 2013, how many dollars has the Fed issued? About 10 trillion.

    With this comparison, some people are starting to blame China's central bank. Why? Our central bank has issued more than 120 trillion yuan since 1954, when it issued a new currency, the new renminbi. If you convert that to dollars at the exchange rate of 6.2, we've issued roughly $20 trillion. But this also does not mean that China is printing money indiscriminately, because China has earned a lot of dollars after the reform and opening up, and at the same time there are also a lot of U.S. dollars as foreign investment into China during this period.

    However, due to foreign exchange controls, the US dollar cannot circulate in China, so the central bank has to issue RMB corresponding to the US dollar and other foreign currencies entering China, and then circulate them domestically in RMB. But foreign investment in China earned money, may be withdrawn; at the same time, we will also take out a lot of foreign exchange, enough to buy resources, energy, products and technology from abroad, so that a large number of U.S. dollars away, the yuan stayed, you can not be the corresponding amount of the destruction of the yuan, can only let the yuan to stay in China to continue to circulate, so China's stock of the yuan must be greater than the U.S. dollar. This also in turn corroborates the amazing development of the Chinese economy in these 30 years. China's central bank admits that it has overissued more than 20 trillion yuan in recent years. The huge amount of over-issuance in the end all stayed in China, which brings me to the question I will talk about later - why the yuan should be internationalized.
 

II. The relationship between the cyclical pattern of the United States dollar index and the global economy
 
    Much of the reason why there is no inflation in the United States lies in the global circulation of the dollar. But the US can't issue dollars without restraint and keep devaluing them. So it has to be restrained. But after moderation in the hands of no dollars how to do? Americans have another set of ways to solve this problem, that is, the issuance of treasury bonds, through the issuance of treasury bonds and let the export of the dollar back to the United States. But the output to go through the debt capital back to the United States, the United States began to play a hand print money, a hand of the game of borrowing, printing money can make money, borrowing debt can make money to money, the financial economy than the real economy to make money to get a lot of pain, who is willing to make great efforts to sweat to do the low value-added manufacturing industry, processing industry, the real economy?

    After August 15, 1971, Americans gradually abandoned the real economy and turned to the virtual economy, gradually turning into a hollowed-out country. Today, the GDP of the United States has reached 18 trillion dollars, and the contribution of the real economy to its GDP does not exceed 5 trillion dollars, while most of the rest is brought by the virtual economy. The United States through the issuance of treasury bonds, so that a large number of dollars circulating overseas back to the United States, into the United States of America's three major markets - futures market, treasury market and securities market. Through this way, the Americans generate money and then export it overseas, thus generating profits in a cyclical manner, thus turning the United States into a financial empire.

    The United States has incorporated the whole world into its financial system. Many people think that after the fall of the British Empire, the history of colonization basically came to an end. In fact, it did not, because after the United States became a financial empire, it began to carry out hidden colonial expansion with the United States dollar, covertly controlling the economies of various countries through the dollar, thus turning various countries in the world into its financial colonies. Today, we see that many sovereign and independent countries, including China, can have sovereignty, constitutions and governments, but you can't get away from the dollar, and everything you have will eventually be expressed in dollars in various ways, and ultimately your physical wealth will enter the United States through the exchange of dollars in a continuous stream.

    This, through 40 years of the dollar index cycle chart, we can see very clearly. 1971 August 15, the dollar and gold decoupling, means that the Americans got rid of the shackles of gold, can be free to print the dollar, the dollar issuance increased greatly, the dollar index naturally want to go down. From 1971, especially after the 1973 oil crisis, the dollar index has been low, which means that the dollar printed more. This has been going on for almost 10 years. A lower dollar index is not entirely bad for the world economy, because it means that the supply of dollars increases, which means that the flow of capital increases, and a large amount of capital does not stay in the United States, but to spill over to foreign countries. After the first low dollar index, a large amount of dollars went to Latin America, bringing investment pull and prosperity to Latin America, which was the Latin American economic boom of the 1970s.

    The dollar deflation period lasted about nearly 10 years or so until 1979, when the Americans decided to close the floodgates. A lower dollar index is equivalent to the Americans opening the floodgates, and closing the floodgates actually reduces the liquidity of the dollar. the dollar index began to strengthen in 1979, which meant that fewer dollars were being sent elsewhere. Latin America had been thriving because of the large amount of dollar investment it had received, but suddenly investment was reduced, liquidity dried up, the capital chain broke, and could the economy not be in trouble?
 
 
■Outbreak of the Battle of Mashima

 
    Latin American countries in trouble have begun to find ways to save themselves. For example, Argentina, Argentina's per capita GDP has once stepped into the ranks of developed countries. However, as soon as the Latin American economic crisis emerged, Argentina was the first to go into recession. There were many ways to solve the recession, but unfortunately, the Fine Arts government of Argentina at that time was a military government that came to power through a coup d'état, and the president was Mr. Galtieri, who was completely devoid of economic acumen. As a military man, the only thing on Galteri's mind was war, and he hoped to get out of it. He set his sights on the Malvinas Islands, 600 kilometers away from Argentina, which the British called the Falkland Islands.

    The islands had been under British rule for more than 100 years, and Galtieri was determined to take it back. But Argentina is a South American country, and South America has always been regarded as America's backyard. The U.S. could not fight a war in its backyard without consulting it. So Galtieri let someone to the United States President Reagan with a message, to see the attitude of the United States. Reagan knew full well that Galtieri's fighting this war would lead to a larger war with Britain, but he downplayed his stance and said, this is between you and Britain, it has nothing to do with the U.S. We don't take a position on it, we remain neutral.

    Thinking that this was a tacit approval from the American president, Galtieri started the war on the island and easily recovered it. There were cheers from all over Argentina, as enthusiastic as a carnival. But British Prime Minister Margaret Thatcher declared that she would never accept this ending, and pressed the U.S. President to take a stand. Reagan immediately tore off his mask of neutrality and issued a statement strongly condemning the Argentine aggression and standing firmly on the side of Britain. Subsequently, Britain dispatched a carrier-based task force, which traveled 8,000 nautical miles to take the Isle of Man in one fell swoop.

    At the same time, the dollar trend began to strengthen, and international capital returned to the United States in accordance with the wishes of the United States. Because when the war on the island of horse, the global investors immediately judged that the regional crisis in Latin America, Latin America's investment environment has deteriorated, so they have withdrawn capital from Latin America. The Federal Reserve saw that the time had come, immediately announced the dollar interest rate hike, after the interest rate hike accelerated the pace of capital withdrawal from Latin America. Latin America's economy is in shambles. The capital withdrawn from Latin America almost all to the United States, to pursue the United States of America's three major markets (bond market, futures market, stock market), to the United States brought the dollar and gold decoupling after the first big bull market, so that the Americans made a lot of money.

    At that time, the dollar index from the weakness of more than 60 points in one breath jumped to more than 120 points, up 100%. Americans in their own three major markets after the bull market does not stop, have taken advantage of the situation to take the money earned, to return to Latin America to buy those at this time the price has fallen into the floor price of high-quality assets, ruthless shear the wool of the Latin American economy, which is the first time the dollar index after the strengthening of the situation.

    If this kind of thing happens only once, then it is a small probability event; if it recurs, then it must be a pattern. After the first "ten years of dollar weakness, six years of dollar strength", people are not sure whether it is a pattern. From the Latin American financial crisis after the peak, the dollar index from 1986 and began to fall all the way. During the Japanese financial crisis, the European currency crisis, the dollar index is still low, about 10 years, 10 years after the 1997 dollar index once again strong. The dollar index also lasted 6 years after this strength. This is interesting, we see that the dollar index pretty much shows such a regularity - 10 years of weakness, 6 years of strength, another 10 years of weakness, followed by another 6 years of strength.
 
▪ Asian financial turmoil 

    After the dollar index began to weaken for the second time in 1986, for 10 years, the dollar was again dumped on the world like a flood. This time the main floodplain was Asia. What was the hottest concept of the 1980s? "Four Asian Tigers", "Asian Geese" and so on. At that time, many people thought that the prosperity of Asia was brought about by the hard work of Asian people, Asian people's clever wisdom, in fact, a big reason is because the Asian countries get enough dollars, get enough investment. When the Asian economy is thriving to about the same time, the United States feel that it should be time to shear the sheep, so, in 1997, that is, the dollar index has been low for 10 years, the United States through the reduction of the money supply to Asia, so that the dollar index reversed the strength of the majority of countries in Asia and the industry suffered a lack of liquidity, and some even simply the capital chain broke, Asia appeared the economic crisis and signs of financial crisis in Asia.

    At this point, a pot of water has been boiled to 99 degrees and there is still 1 degree left to be boiled, and which degree is the difference, the difference between a regional crisis and the emergence of a regional crisis. So is it also like the Argentineans to fight a war? Not necessarily. Creating a regional crisis is not necessarily the only way to go to war. Since the creation of regional crisis is to oust the capital, then do not go to war, there are still ways to create regional crisis? So we see that financial speculator named Soros, with his Quantum Fund and hundreds of hedge funds around the world, began to attack the weakest country in the Asian economy, Thailand, like a pack of wolves, and attacked the Thai baht, the currency of Thailand.

    A week or so, and then the Thai baht crisis, which began, immediately had a conduction effect, all the way south, and then successively to Malaysia, Singapore, Indonesia, the Philippines, and then northward conduction of Taiwan, Hong Kong, Japan, South Korea, and all the way to Russia, the East Asian financial crisis broke out in full force. This time the water has boiled. Global investors to judge the deterioration of the investment environment in Asia, they have withdrawn their capital from Asia. And the federal reserve is once again lost no time to blow the horn of interest rate hikes. Follow the horn from Asia to withdraw capital once again to the United States to go after the United States of America's three major markets, to the United States brought the second big bull market.

    When the Americans earned enough money, they still took the money they earned from the Asian financial crisis and went back to Asia to buy the high quality assets that had fallen to the floor price in Asia, just as they did in Latin America. At this time, the Asian economy has been washed away by this financial crisis, and there is no way to fight back, and the only one who is lucky is China.

III. Targeting China

   Thereafter, as accurate as the tides, the dollar index, after six years of strength, began to weaken once again in 2002, and then, for another 10 years, in 2012, the Americans began to prepare the dollar index for its imminent transition from weakness to strength. The approach was the same as always: create a regional crisis for others. So, we have seen that in China's neighboring areas, the Fine Lightning Anmen Incident, the Diaoyu Islands dispute, and the Huangyan Island dispute emerged one after another. Almost all of them appeared intensively in this period. But unfortunately, the U.S. played with fire in 2008, and suffered a financial crisis first, which forced the dollar index to push back the time of its strength. Sino-Philippine Huangyan Island dispute and Sino-Japanese Diaoyu Islands dispute, seems to have no great relationship with the strength of the dollar index, but there is really no relationship? Why exactly in the third weakening of the dollar index after the 10th year? Few people have explored this issue, but this issue does deserve our deep thoughts.

   If we admit that there has indeed been a cyclical rate of the dollar index since the dollar was delinked from gold in 1971, then, based on this cyclical rate and the tactics used by the Americans to take the opportunity to shear the wool of other countries, we can conclude that it is now the turn of China. Why? Because right now China has become from the world to attract and obtain the most investment in the country, a large number of international capital due to optimistic about the Chinese economy into China. In terms of economic laws, China cannot be viewed as just one country. A China's economic scale is equivalent to the whole of Latin America, or even larger than the total economy of Latin America; and the East Asian economy than, it can also be said that China's economy is equivalent to the whole of East Asia. And in the past decade, a large amount of capital into China, so that China's total economic output, to the coveted speed of growth to the world's second, so that the United States will be the third shearing target aimed at China, is not at all surprising.
 
 
▪ Hong Kong Occupation

 
    If this judgment is valid, then, after the Diaoyu Islands dispute between China and Japan and the Huangyan Island dispute between China and the Philippines in 2012, there have been numerous incidents in China's neighbourhood, all the way to the clash between China and Vietnam over the 981 drilling platform last year, and then to the "Occupy China" incident in Hong Kong. Can these incidents still be regarded as accidental? In May last year, the "Occupy China" campaign was in the pipeline, and it might have taken place at the end of May. But it did not happen at the end of May, it did not happen at the end of June, it still did not happen in July, and it still did not happen in August. What is the reason? What is this brewing "action" waiting for?

    Let's compare the timeline of another event: the Fed's exit from QE timeline. At the beginning of last year, the United States said that it was going to withdraw from QE (quantitative easing), and it has not withdrawn from it in April, May, June, July and August. As long as the withdrawal of QE, it means that the dollar is still in excess of the issue, the dollar index can not be strong, Hong Kong's "Occupy" has not appeared, the two in the timetable completely overlap. Until the end of September last year, the Federal Reserve finally announced that the United States withdrew from the QE, the dollar index began to turn around and strengthened, in early October, Hong Kong "Occupy China" broke out. In fact, Sino-Japanese Diaoyu Islands, China-Philippine Huangyan Island, 981 drilling platform, Hong Kong, "Occupy", these four points are bombing point, any one point detonated successfully, will trigger a regional financial crisis, which means that China's neighboring investment environment deteriorated. Thus to meet the "strong dollar index, other regions must correspondingly appear regional crisis, so that the region's investment environment deteriorated, forcing investors to withdraw a large amount of capital", the basic conditions of the dollar profit model.

    But unfortunately for the Americans, this time the opponent is China. Chinese people with the way to play Taiji, time and again to resolve the crisis in the neighborhood, the results until now, the United States most hopeful in the 99-degree water temperature when the last 1 degree, never appeared, the water, has not been boiled. The water did not boil, the Federal Reserve held up the horn of the interest rate hike will be slow to blow.

    It seems that the United States knows that it is not that easy to cut China's wool, so it has no intention of hanging itself on just one tree. While pushing for the occupation of Hong Kong, the United States is taking a multi-pronged approach, striking at other regions at the same time. Where?

 
▪ Crisis in Ukraine

 
    The EU-Russia interface. Ukraine under Yanukovych is certainly not a seamless egg, which is why there is an opportunity for flies to lay maggots. But the U.S. was not just eyeing Ukraine because it was a cracked egg, but because it was the ideal target to strike at Yanukovych, a disobedient politician, and to block the European-Russian convergence, as well as to cause a deterioration of the investment environment in Europe, killing three men with one peach. Thus, a seemingly spontaneous Ukrainian "color revolution" broke out, the American purpose in an unexpected way to achieve the Americans and the people of the earth: the Russian strongman Putin took advantage of the opportunity to take back the Crimea, this move is not in the American plan, but it is just so that the Americans have a better reason to put pressure on the European Union and Japan to force them to work with the United States to sanction Russia, to give the United States a better chance of success. They join the U.S. in sanctioning Russia, putting enormous pressure on the Russian and European economies.

    It is often easy to look at the question of why the Americans are doing this from a geopolitical point of view rather than from the point of view of capital. After the emergence of the crisis in Ukraine, the relationship between Europe and the United States and Russia has deteriorated rapidly, but the result of the entire Western world sanctioning Russia together has directly worsened the investment environment in Europe, leading to the withdrawal of capital from here. According to relevant data, about trillions of dollars of capital left Europe. The two-handed design of the Americans has succeeded.

    That is: if you can't get capital out of China to pursue the United States, then at least get capital out of Europe and back into the United States. This first step was realized with the dramatic Ukrainian turn of events, but the second step did not work out as the United States had hoped. Because the capital withdrawn from Europe, did not go to the United States, and other data show that most of them came to Hong Kong. This means that global investors are still not optimistic about the recovery of the U.S. economy. Instead, they prefer to look favorably on China, which has been on a downward economic spiral but still maintains the world's top growth rate.

    This is the first point. Secondly, the Chinese government announced last year that it would realize the "Shanghai-Hong Kong Stock Connect", and investors all over the world are eager to make a fortune in China through the "Shanghai-Hong Kong Stock Connect". In the past, Western capital did not dare to enter the Chinese stock market, a very important reason, is that China's strict foreign exchange control, lenient entry and exit, you can come in at will, but you can not go out at will, so they generally do not dare to come to China to invest in China's stock market. After the "Shanghai-Hong Kong Stock Connect", they can easily invest in the Shanghai stock market in Hong Kong, and after making money, they can turn around and leave, so trillions of dollars of capital are stranded in Hong Kong. This is a very important reason why after September last year, that is, from the beginning of the "Occupy China" in Hong Kong to the present day, the forces of "Occupy China" and the promoters behind it have never given up and always want to make a comeback. It is because the Americans need to create a regional crisis against China, so that the capital stranded in Hong Kong can be withdrawn from China and go after the United States economy.

    Why does the U.S. economy need and depend so strongly on international capital repatriation? The reason is that, after the dollar was decoupled from gold on August 15, 1971, the U.S. economy gradually gave up physical production and detached itself from the real economy. Americans call the low-end manufacturing and low value-added industries of the real economy junk industries or sunset industries, and gradually transfer them to developing countries, especially to China. And the United States, in addition to leaving behind the so-called high-end industries, IBM, Microsoft and other enterprises, 70% or so of the employed population have gradually shifted to the financial and financial services industry.

    At this point in time the United States has become an industrial hollowing out country, it no longer has much of a real economy that can bring lucrative profits to global investors. In this case the Americans had to open another door, the door to the virtual economy. The virtual economy is its three major markets. It can only make money for itself by letting international capital into the financial pools of the three major markets. Then, it takes the money it earns to shear the wool of the world. That's the only way Americans can live now. Or as we call it, the American way of surviving as a nation. This way is that the United States needs a large amount of capital to flow back to support the daily lives of Americans and the U.S. economy, and whoever blocks the flow of capital back to the United States in this case is the enemy of the United States. We must figure this out and think it through.
 
 
IV. Critical prevention of European and Asian integration
 
 
    On January 1, 1999, the euro was officially born. Three months later the Kosovo war broke out. Many people thought that the Kosovo war was a joint effort by the United States and NATO to fight the Milosevic regime, which had created an appalling humanitarian disaster by massacring ethnic Albanians in Kosovo. After the war, this lie was quickly exposed and the Americans admitted that it was a set-up by the CIA in conjunction with the media in the West to fight the FRY regime. But was the war in Kosovo really about fighting the FRY regime? Europeans began to believe overwhelmingly that this was the purpose, but after fighting this 72-day war, Europeans realized that they had been fooled, why?
  
 
▪ Kosovo war

 
    At the beginning of the launch of the euro, the Europeans were full of confidence. They gave the euro pricing is with the dollar ratio of 1: 1.07. After the outbreak of the war in Kosovo, the Europeans involved in NATO operations, full support for the United States to attack Kosovo, 72 days of bombardment, Milosevic regime collapsed, the Federal Republic of Yugoslavia succumbed. But the next inventory, the Europeans found wrong, the euro, just in this 70 days, actually crippled by this war. At the end of the war, the euro plummeted 30%, 0.82 U.S. dollars for a euro. This is when Europeans came to the realization that the original is someone else sold you, you are still on behalf of others to count the money. This time Europeans began to wake up. This is why later when the United States to fight Iraq, France and Germany, the two axis countries of the European Union, firmly opposed to the war.

    Some people say that Western democracies do not go to war with each other, and it is true that up to now, there has been no direct war between Western countries, after the Second World War, but it does not mean that there is no military war, and it does not mean that there is no economic war or financial war between them. Kosovo war is the Americans on the euro indirect financial war, the result of the fight is the FRY, the pain is the euro. Because the birth of the euro moved the dollar's cheese. In the euro before the birth of the world's circulating currency is the U.S. dollar, the U.S. dollar in the global settlement rate was once as high as 80% or so, even now also in the 60% or so.

    The advent of the Euro immediately sliced away a huge chunk of American cheese! The European Union is a $27 trillion economy, which immediately overshadowed the world's largest economy at the time, the North American Free Trade Area ($24 trillion - $25 trillion in size). Being such a large-scale economy, the EU was certainly not willing to use the dollar to settle its internal trade, so the Europeans decided to launch their own currency - the euro. The emergence of the euro cut away one-third of the dollar's currency settlement volume, by now the world's 23% trade settlement has been the use of the euro instead of the dollar. Americans in Europe at the beginning of the talk about the euro when the lack of vigilance on this, to later find that the euro on the emergence of a challenge to the hegemony of the dollar, it has been a little too late. So the U.S. has to take this lesson and hold down the EU and the euro on the one hand, and other challengers on the other.
 
▪ Disruption of Asia-Pacific - third largest economy

 
    The rise of China has made us the new challenger, and the 2012 disputes over the Diaoyu Islands and Huangyan Island are the latest attempts by the United States to successfully suppress that challenger. These two geopolitical events that took place in China's neighborhood failed to cause a massive outflow of capital from China, but they did at least partially achieve the American goal, leading directly to the demise of both events.

    At the beginning of 2012, China, Japan and South Korea on the Northeast Asia Free Trade Area negotiations are close to success; in April, China-Japan currency swaps and China-Japan mutual holdings of each other's Treasury bonds also reached a preliminary agreement. However, at this time, the Diaoyu Islands dispute, Huangyan Island dispute appeared one after another, all of a sudden the Northeast Asia FTA negotiations, China-Japan currency swap a wind blown. A few years later now, we have barely completed the bilateral FTA negotiations between China and South Korea, which has little meaning, because it and the significance of China-Japan-South Korea Northeast Asia FTA is completely incomparable, why do you say so? Because the China-Japan-South Korea FTA negotiations once successful, must include China, Japan, South Korea, Hong Kong, Macao, Taiwan, the entire Northeast Asia FTA. Northeast Asia FTA once formed means that the world's third largest economy of more than 20 trillion dollars in size appeared!

    However, the Northeast Asia FTA will not stop once it appears, it will quickly south and Southeast Asia FTA integration, the formation of the East Asia FTA, East Asia FTA means that the emergence of the world's largest economy of more than 30 trillion dollars in size, will surpass the European Union and North America. Next we can continue to think, East Asia FTA appeared, still will not stop, it will integrate India and South Asia to the west, and then to the north to integrate the five Central Asian countries, and then continue to the west, the integration of the Middle East part of West Asia. So that the entire Asian FTA, the size of more than 50 trillion U.S. dollars, will be larger than the European Union and North America combined, such a huge FTA appeared, will she be willing to use the euro or U.S. dollar settlement of their internal trade? Of course not. This means the Asian dollar could be born.

    However, if an Asian FTA really emerges, we can only push forward the internationalization of the RMB, so that the RMB will become the dominant currency in Asia, just as the US dollar first became the hard currency in circulation in North America and then became the hard currency in circulation in the whole world. The significance of the internationalization of the renminbi is far more than what we call the renminbi to go out and play a role in the "Belt and Road", etc., it will be a three-way tie with the U.S. dollar and the euro.

    If the Chinese can see this, can the Americans not? When the Americans announced the eastward shift of the strategic center of gravity, pushed Japan to tussle with China in the Diaoyu Islands and pushed the Philippines to confront China in the Huangyan Islands, if we still think in a short-sighted way that the Diaoyu Islands dispute is a conflict with China after the Japanese right-wing instigated the "purchase of the islands", and that the Huangyan Islands dispute is the Philippine President Aquino's dim-wittedness in looking for trouble with China, we can't see that this is a far-sighted thinking of the Americans to prevent the RMB from becoming a challenger to the US dollar. But do not see that this is the American people's far-sightedness, is the United States to prevent the yuan to become a challenger to the dollar, and the Americans know very well what they are doing, so they must not let such things happen again. 
    
    Because once the Northeast Asia FTA is formed it will have a chain reaction, which means that a three-way split of the world's currencies becomes a reality!

    Think about it: is the dollar still a monetary hegemony when only one third of it is left in its hands? And today an industrial hollowing out of the United States, if there is no more currency hegemony, the United States can still count the world hegemony? To understand this, we know why China today encountered all the trouble behind, there is the shadow of the United States. It is because the United States than we think far, see deep, in order to prevent China's "problem" in the future, everywhere to make trouble for us. This is why the United States to implement the Asia-Pacific strategic rebalancing of the fundamental reasons. What exactly does it want to balance? Does it really want to achieve a delicate balance between China and Japan, China and the Philippines, and China and other disputing countries, playing the role of a balancer? Of course not, its goal is one, to balance out the momentum of China's rise as a great power today.

Fifth, the U.S. military is fighting for the dollar!
 
    People say that the United States as a nation is strong because of three pillars - currency, technology and the military. In fact, today we can see that what really supports the United States is the currency and the military, and what supports the currency is the military power of the United States. All national militaries around the world burn money fighting wars, but the U.S. military fights wars although it also burns money. But it can burn money while earning money for the United States, which no other country can do. Only the United States, can make huge profits by fighting wars, even though there are times when the United States misses the mark.
 
▪ Iraq War
 
 
    Why did the Americans fight Iraq? Two words come to mind for most people - oil. Are Americans really fighting for oil? Not at all. If Americans fought for oil, then why did Americans not pull a barrel of oil from Iraq after they had defeated it? Moreover, the price of oil has soared from US$38 a barrel before the war to US$149 a barrel after the war, and the ordinary Americans have not enjoyed the low oil price because the American army has occupied an oil-producing country like Iraq. So, the United States did not fight Iraq for oil, but for dollars.

    Why? The reasoning is very simple. In order to control the world, the United States needs the dollar to be used all over the world. In order for the whole world to use the dollar, the Americans made a brilliant first move in 1973: they pegged the dollar to oil, and by coercing Saudi Arabia, the dominant country in OPEC, they realized that global oil transactions would be settled in dollars. If you understand that global oil transactions are settled in dollars, you can understand why Americans are fighting wars in oil-producing countries.

    One of the immediate consequences of going to war in an oil-producing country is that the price of oil spikes, and when the price of oil spikes it means that the demand for dollars also goes up. For example, before the war, if you had $38 in your hand, you could theoretically buy a barrel of oil from an oil dealer. Now that the war has driven up the price of oil more than 4 times to $149, the $38 you have in your hand is only enough to buy 1/4 of a barrel of oil, leaving you with 3/4 of a barrel which means you're still more than $100 short. What to do? You can only go to the Americans, out of their own products and resources to the Americans in exchange for the hands of the dollar. And that's when the U.S. government can justifiably, honorably, and legitimately print dollars. This is the secret of hitting the demand for dollars through wars, by fighting wars in oil-producing countries to drive up the price of oil.

    The American war in Iraq has more than that goal. It is also defending the hegemony of the dollar. Why did George BUSH Jr. have to fight Iraq back then? Now we have seen very clearly that Saddam did not support terrorism, did not support al-Qaeda and did not have weapons of mass destruction, but why did Saddam end up on the gallows? Because Saddam thought he was c smart and wanted to play with fire among the big powers.

    When the euro was officially launched in 1999, Saddam thought he had seized the opportunity to play with fire between the dollar and the euro, between the United States and the European Union, so he couldn't wait to announce that Iraq's oil transactions would be settled in euros. This pissed off the Americans, especially when it produced a series of demonstration effects, Russian President Vladimir Putin, Iranian President Nejad, Venezuelan President Chavez, have announced that their own country's oil exports settlement also with the euro settlement. What's wrong with that? This is not to stab the Americans in the chest?

    That is why some people think that it is too far-fetched to say that this war in Iraq must be fought. Then may I ask him to take a look at what the Americans have done after the defeat of Iraq? Before Saddam was captured, the Americans could not wait to set up the Iraqi Interim Government, and the first decree issued by the Interim Government was to announce that Iraq's oil exports would be changed from the euro to the US dollar. This is why it is said that the Americans are fighting for the dollar.
 
 
▪ War in Afghanistan

    Some people may say that it is understandable that the war in Iraq was fought for the US dollar, but since Afghanistan is not an oil-producing country, the United States is not fighting the war in Afghanistan for the US dollar, is it? Moreover, the war in Afghanistan was fought after the "9-11" incident, and people all over the world can see very clearly that the United States launched the war in Afghanistan for the sake of retaliation against Al-Qaida and punishment of the Taliban who supported Al-Qaida. But is this really the case? The war in Afghanistan was fought more than a month after "9-11", and it should be said that it was fought in great haste, and halfway through the war, the United States military ran out of cruise missiles, and the war continued, and the United States Department of Defense had to order the opening of nuclear weapons arsenals, take out 1,000 nuclear cruise missiles, remove the nuclear warheads, replace them with conventional warheads, and then hit 900 more to bring down Afghanistan. more before Afghanistan was brought down. This clearly proves that the preparations for this war were very inadequate, and in that case, why did the Americans insist on rushing into the war?

    Because the Americans can not wait, more because the Americans can not live. 21st century, the United States as an industrial hollowing out of the country, the annual net inflow of about 700 billion U.S. dollars, in order to live. However, "9-11" after a month, global investors on the deterioration of the investment environment in the United States, expressed a never-before-seen worry and concern: if the United States as strong as their own security can not guarantee, how can guarantee the safety of investors' funds? As a result, more than 300 billion dollars of hot money left the United States. This forces the U.S. to fight a war as soon as possible, a war that not only punishes the Taliban and Al Qaeda, but also gives investors around the globe a sense of confidence. With the first cruise missile blowing up in Kabul, the Dow Jones index quickly recovered, 600 points in one day, and the outflow of capital began to flow back to the United States, and by the end of the year, about more than $400 billion had returned to the United States. This does not suggest that the war in Afghanistan is also a war for the dollar, a war for capital.
 
 
▪ Global Rapid Strike System

    Many people are looking forward to China's aircraft carriers as they have seen what has been done in the history of aircraft carriers and are eagerly waiting for China to have its own, and the appearance of the Liaoning has really allowed us, China, to catch up with the end of the line for aircraft carriers. Although the aircraft carrier is still a symbol of a great power today, it is more of a symbol. Because today, after the global economy has been increasingly financialized, the role of aircraft carriers will gradually decline. Because historically, the aircraft carrier is a product of the logistics era. When the British Empire flourished, it had to promote global trade, push its products around the world, and then bring back its resources, so it needed a strong navy to ensure the smooth flow of the sea lanes. Until the later development to the emergence of aircraft carriers, are to control the sea, to ensure the safety of the sea lanes. Because at that time is the resources and products "logistics is king" era, who controls the sea, who can control the flow of global wealth. But today the world is the era of "capital is king", tens of billions, hundreds of billions or even trillions of dollars of capital, from one place to another, as long as the computer to knock on a few keys, within a few seconds can be completed, in the ocean sailing carrier can follow the speed of logistics, but can not keep up with the speed of the flow of capital, and, of course, will not be able to control the Global capital.

     So today, what is the solution? can keep up with the flow, flow and flow of global capital supported by the Internet? The Americans are developing a huge global rapid strike system, and with ballistic missiles, supersonic airplanes, and cruise missiles that are five or even a dozen times faster than supersonic speeds, it is possible to quickly strike any area where capital is clustered. Now the U.S. claims that it can hit the whole world in 28 minutes, and no matter where capital is clustered around the world, as long as the U.S. doesn't want capital to land in that place, the missiles can get there in 28 minutes. And when the missiles fall, the capital will withdraw obediently.

     That is why the Global Rapid Strike System will certainly replace the aircraft carrier. Of course, the aircraft carrier will still have its irreplaceable role in the future, such as guaranteeing maritime security in the sea lanes or carrying out humanitarian missions, because the aircraft carrier is a very good maritime platform. But as a weapon for controlling future capital flows, it is already far inferior to the Global Rapid Strike System.
 
 
▪ Air-sea integrated warfare
 

     The Americans, in considering the use of military means to deal with the rise of China, have come up with a concept called "air-sea integrated warfare". But "air-sea integrated warfare" is still difficult to solve the U.S. dilemma. The "Air-Sea Integrated Warfare" is an operational concept jointly proposed by the heads of the U.S. Air Force and Navy against China in 2010. Proposed "air-sea integrated warfare", in fact, first of all reflects the U.S. military today is weakening. The U.S. military used to think that it could hit China with air strikes and that it could hit China with its navy. Now the United States found that their own forces, whether air force or navy alone, are not likely to constitute an advantage over China, must be combined air and sea in order to constitute a certain advantage over China, which is the origin of the air-sea integrated warfare. But the air-sea integrated warfare from the beginning of 2010 to now but a little more than 4 years, suddenly the Americans gave it a name change, called the "global public domain intervention and maneuver joint concept".
 
     In this joint air-sea concept of operations, the Americans believe that within 10 years there will be no war between the United States and China. This is because the Americans, after studying the development of China's military power today, believe that the current capabilities of the U.S. military are not sufficient to ensure that some of the advantages over the U.S. that the Chinese military has already established can be counteracted. Such as the ability to attack aircraft carriers and the ability to destroy space systems, so the U.S. will have to devote another 10 years to developing more advanced combat systems to offset some of China's advantages. This means that the American timetable for a possible war is dialed up to 10 years from now. While war may still not happen 10 years from now either, we must all be prepared for it. For China not to have a war even 10 years from now, it needs to do a better job of preparing ourselves, both militarily and for war, in those 10 years.
 

VI. "One Belt, One Road": China's Tai Chi!

 
     Let's take a look at the most sought-after sports in the United States, the first being basketball and the second boxing. Boxing is a sport that typically reflects the American style of emphasizing strength, straight forward, heavy punches, preferably KO (knockout win) opponents, everything is clear; while the Chinese, on the contrary, like to blur, to soften the hard, and I'm not looking for a KO you, but I'm going to dissolve all of your movements. The Chinese like to fight Tai Chi, and Tai Chi is indeed a higher art than boxing.

    "The Belt and Road initiative reflects this thinking. In the process of the rise of all the great Powers in history, there has been a movement of globalization around their rise. This means that globalization has not been a consistent process from history to the present day, but has had its own globalization. The Roman Empire had its own globalization, and the Qin Empire had its own globalization. Each globalization was driven by each rising empire; each empire had a period of globalization associated with it, which reached a pinnacle during its ascendancy to its heyday. This globalization is at the same time limited by its own power, which is the maximum extent of its capacity and the farthest point that its means of transport can reach, and that is the end of its globalization.

     Therefore, both the globalization of ancient Rome and the globalization of the Great Qin Empire can only be regarded today as a regionalization process of imperial expansion. The real globalization in modern history began with the British Empire, and the globalization of the British Empire was the globalization of trade. The United States continued a period of trade globalization after taking on the mantle of the British Empire, and the truly American form of globalization is the globalization of the dollar. This is also the globalization we are experiencing today. But I don't agree that China's "One Belt, One Road" today, which is in line with global economic integration, is tantamount to continuing to be in line with the globalization of the US dollar, and that's not the right way to look at it. As a rising power, the Belt and Road is the initial stage of China's globalization, or China's globalization. As a rising power, you must promote the globalization that surrounds you in the process of your rise.

    The "One Belt, One Road" should be regarded as the best great power strategy that China has been able to put forward so far. Because it is a hedge against the eastward shift of American strategy. Some people would question this, hedging should be going in the opposite direction, can you still have a backward hedge? By the way, "One Belt, One Road" is a backward hedge of China's eastward shift of US strategy, I take the back toward you. Aren't you pressing in? I go west, neither to avoid you, nor to fear you, but very skillfully defuse you from the east to me to pressure this kind of pressure.

    The "One Belt, One Road" is not a two-front, parallel strategy, but should be prioritized. In view of the fact that maritime power is China's shortcoming so far, "One Belt, One Road" should first choose to complete it from the land, which means that "One Road" should be a secondary direction, while "One Belt" should become the main direction of attack. That is to say, "One Road" should be a secondary direction of attack, while "One Belt" should become the main direction of attack. The fact that "One Belt" has become the main direction of attack means that we must re-conceptualize the role of the land forces. Some people say that the Chinese army is invincible, and this is true within the territory of China. The Chinese army is invincible, and no one can set foot on China's territory to fight a large-scale war, but the question is, does the Chinese army have the ability to go on an expedition?

    The United States, in electing China as a rival and suppressing China, has chosen the wrong rival and the wrong direction. Because the real challenge to the United States in the future is not China at all, but the United States itself, and the United States will bury itself. Because it does not realize that a big era is coming, this era will push the financial capitalism it represents to the highest stage, let the United States fall from the peak, because on the one hand, the United States through the virtual economy, has eaten all the dividends of capitalism. On the other hand, the U.S. has pushed the Internet, big data, and cloud computing to the extreme through its proudly world-leading scientific and technological innovations, and these tools will ultimately become the main driving force in burying the financial capitalism that the U.S. represents.
 
■ Internet Plus: the sword that cuts through U.S. monetary hegemony!

    Alibaba in last year's "double 11" this day, its Taobao, Tmall network of online shopping sales reached 50.7 billion yuan a day, while not long after the Thanksgiving Day three-day holiday, the U.S. online sales and on the ground in the malls total sales of the equivalent of 40.7 billion yuan, less than Alibaba one. And China hasn't even counted NetEase, Tencent, or Jingdong, not to mention other mall turnover. This means that a new era has quietly arrived, and Americans are still slow to face it. Alibaba's transactions, all with Alipay way to complete, Alipay means what? It means that the currency has been withdrawn from the stage of transactions, and the hegemony of the Americans is based on the dollar. What is the dollar? The dollar is money. In the future, when more and more of us no longer use money to settle accounts, money in the traditional sense will become useless. When money becomes useless, will the empire built on it still exist? That's what Americans have to think about.

 
■Made in China 2025

    There is no doubt that China is at the forefront of the United States! 3D printers also represent a future direction that will lead to fundamental changes in the way human society produces today. As the mode of production is changing and the mode of trade is changing, the world is bound to change fundamentally, and history has shown that it is the change in the nature of society that is the cause of the change, not any other factor.

    How many uprisings, revolts, wars and revolutions have taken place in China in its history of more than 2 000 years, from the time of the Second Qin Dynasty at the end of the Qin Dynasty, when people started to rebel, and the rise of Chen Sheng and Wu Guang, to the Xinhai Revolution? Have they solved problems? No problem is solved, there is always a change of dynasty, and there is always a low-level cycle. Because these repeated movements cannot change the nature of an agrarian society, neither the mode of production nor the mode of transaction, so they can only keep on changing the dynasty. The West is also the same, Napoleon with the wind of the French Revolution, led a brand new by the Revolutionary baptized army swept across Europe, swept a crown down to the ground, but wait until the battle of Waterloo failed, Napoleon stepped down, European emperors one by one, restored, and immediately revert to the feudal society. Until the British steam engine came, the industrial revolution came, so that human production capacity greatly increased, a large number of surplus products appeared, with surplus products will have surplus value, and then there will be capital, and then there will be capitalists, and then the capitalist society came.

    So today when capital is likely to disappear with the disappearance of money, when the way of production will also change with the emergence of 3D printers, mankind is about to cross the threshold of a new society, this time China and the United States are standing on the same starting line, are standing on the starting line of the Internet, big data and cloud computing. Then at this time we have to compare is who first stepped into this era, rather than who put who down. And it is precisely at this point that Americans have shown amazing slowness. Because it is so eager to retain its hegemonic position that it has never thought of sharing power with other countries, and jointly stepping over the threshold of the new social era, which for us today still has a lot of uncharted territory and uncertainty.