One of the hallmarks of an empire is the widespread use of its currency, not only within its borders but on its periphery. This allows an Empire to control and regulate not just their own economies, but influence others and extract value that’s returned to the core of the empire to enrich the system. For the Roman empire it was the dinar, for the British empire the pound sterling, and for American empire the dollar. Today could the Yuan be poised to challenge the Dollar as a currency of hegemonic power?
America versus China
The above picture is but one of a sequence of photos sent from my man in HK. Rioting is centred in Kowloon and the centre of HK. In those areas the police have lost control and discipline, so it just a matter of time before the situation escalates and the PLA is called in.
The hesitation from President Xi has and continues to be the US trade negotiations, which he needs to be progressed. The HK population sense that weakness and have continued to push hard, knowing that when they go silent they will one by one be disappeared.
The Lessons of Concentrated Saturation Firepower
The mathematics of warfare has always underpinned the outcome of battles and wars.
Trump, in a recent tweet, really set the cat amongst the pigeons!
"Our great American companies are hereby ordered to immediately start looking for an alternative to China,"
Mr Trump tweeted.
Recognizing the often confusing nature of Trump’s preferred mode of communication: ‘the Tweet’, does Trump really want to withdraw American companies from China? To answer this question, we need to look at both the American and the Chinese perspective on the escalating strategic competition.
Reviewing America's progress in containing the momentum of the Chinese challenge we must conclude that so far it is “too little too late”. Trump’s America needs to find another gear level to be successful
We have long argued that competition for resources regulates the rate of a strategic challenge, and ultimately wars. A prime example is the ‘cold war’ which can be modelled as below:
Since 2001 and 9/11, America’s three presidents have all contributed to America's decline in their own inimitable ways. In this America has conformed to the characteristics of this phase of decline outlined in the five stages of Empire. Each of the last three Presidents lost a specific element vital to the composite of American power in what we will call the three false dawns.
The First False dawn: The loss of the Eagles moral imperative to rule