This Is What Will Happen To The U.S. Economy When We Go To War With China


Nancy Pelosi knows exactly what she is doing.  She knows that going to Taiwan without China’s permission will create a major international incident, but she is doing it anyway.  It is being reported that Pelosi will arrive in Taiwan on Tuesday, spend the night in downtown Taipei on Tuesday night, and then potentially meet with Taiwanese President Tsai Ing-wen on Wednesday.  If she does meet with Taiwanese President Tsai Ing-wen, that will infuriate the Chinese even more.  Pelosi is directly challenging China’s sovereignty over the island, and that is something that the Chinese will simply not tolerate.

Chinese President Xi Jinping is on the verge of a third term in office, and so he cannot afford to show any weakness right now.  The following comes from Bloomberg

Her travels come before China’s leadership usually heads to the seaside town of Beidaihe for an annual summer gathering. President Xi Jinping is just months away from a twice-a-decade Communist Party leadership reshuffle where he’s expected to secure a third term in office, increasing the political stakes.

The timing means Xi can’t afford to look weak in response to what Beijing views as foreign interference in its affairs. China held live-fire military drills over the weekend off the coast of Fujian province, which is opposite Taiwan.

In recent days Chinese authorities have been warning us over and over again that China will respond very strongly if Pelosi goes ahead with her visit.

On Monday, yet another very ominous warning was issued…

“We would like to tell the US once again that China is standing by, and the Chinese People’s Liberation Army will never sit idly by. China will take resolute responses and strong countermeasures to defend its sovereignty and territorial integrity,” Foreign Ministry spokesman Zhao Lijian told reporters, when asked about the fallout from Pelosi leading a congressional delegation to Taipei.

“As for what measures, if she dares to go, then let’s wait and see,” Zhao added.

This is a threat that isn’t veiled at all.

The Chinese are openly telling us that the People’s Liberation Army will take action if Pelosi goes through with her visit.

And a video was just released on social media which definitely appears to have been intended to send a message

A video by the People’s Liberation Army’s Eastern Theater Command, which showed scenes of military exercises and preparations and was posted on state media sites on Monday evening, urged troops to “stand by in battle formation, be ready to fight upon command, bury all incoming enemies.”

If you have not seen it yet, you can find the video right here.  If you have an understanding of Chinese culture, then you know that things like this are never done lightly.

Here in the United States, we are being told to disregard such “propaganda” and the “empty threats” that the Chinese are supposedly making.

But are they really “empty threats”?

What if they aren’t?  What if the Chinese really mean what they say?

I think that something that Caitlin Johnstone tweeted sums things up quite well…

Russia: Don’t cross our red lines in Ukraine or we’ll take action.

US politicians: They’re bluffing. Cross those red lines.

*Russia invades.*

China: Don’t cross our red lines in Taiwan or we’ll take action.

US politicians: They’re bluffing. Cross those red lines.

Ultimately, the Chinese were probably planning to invade Taiwan fairly soon anyway, but Pelosi’s visit certainly has the potential to greatly accelerate matters.

And even though Taiwanese officials are welcoming Pelosi’s visit, they are also preparing for war at the same time…

Taiwanese defense officials have canceled the leave of some soldiers and officers “to immediately prepare” for the chance of war in response to House Speaker Nancy Pelosi’s visit to Asia this week, according to local reports.

Sadly, war with China is coming.

It is just a matter of time.

So what would such a conflict do to the U.S. economy?

Well, for one thing it would absolutely devastate the pharmaceutical industry

Consider that Chinese firms are said to supply more than 90 percent of US antibiotics, 70 percent of acetaminophen (that’s Tylenol), and almost half of the anti-coagulant heparin. “Are said to” because we struggle even to gather information on this because of the opacity of the Chinese market and state-dominated record keeping. Some studies suggest up to 80 percent of the basic ingredients in US drugs come from the PRC. China is also the second largest exporter of biologics and the prime source of medical devices per the FDA. In some cases, it appears that India is a prime source of a key import – generics, for example – but that masks the fact that India sources up to 75 percent of its own pharma ingredients from China.

The food industry would also be turned upside down.  In fact, it is being reported that “it is almost impossible to have a diet with foods that were not produced in China”…

According to, experts believe that it is almost impossible to have a diet with foods that were not produced in China. Products such as chips and garlic are produced in China. Spices and herbs such as ginger and garlic are grown in China and exported to foreign markets. Chinese factories make vegetarian meat products. Many canned foods on market shelves were manufactured in China.

Our ability to produce our own food would also be greatly affected, because China produces so much of our farm machinery

Farm machinery such as tractors, egg incubators and harvesters are manufactured in China. Chain saws, wood chippers and shredders are also produced in the country. Elevators and bulldozers are also assembled in China.

Are you starting to get the picture?

We should have never become so dependent on Chinese production, because it really is a major national security threat.

Of course the Chinese also produce a lot of our clothes

Chinese factories manufacture winter coats, gloves, mittens and hats for consumers around the world. These factories also produce maternity clothes and infant clothes as well as wedding dresses and tuxedos. Underwear, T-shirts and slips are among the items exported from China to consumers around the world. Sports caps are also produced in China as are belts and bras.

And it turns out that 70 percent of our shoes come from China too…

The United States sources 99 percent of shoes sold from overseas, with 70 percent of those coming from the PRC. Same with 72 percent of smartphones. The artificial sweeteners in Diet Coke. Toys, furniture, sports equipment … what you buy every time you go to Target.

The moment we go to war with them, the flow of cheap goods from China completely stops.

In addition, once the Chinese invade Taiwan there will be an absolutely excruciating computer chip shortage.

It was recently being projected that chipmakers in Taiwan would have a 66 percent share of the total global market by the end of 2023…

Taiwan’s contract chipmakers will expand their global market share to 66% by revenue this year, cementing the island’s dominant position in the chip supply chain, a new industry forecast shows.

As I have discussed previously, just about every industry in the United States relies on equipment that contains computer chips.

If the flow of chips from Taiwan is eliminated, the entire global economy would come to a crashing halt.

I am not just talking about a recession or a depression.

I am talking about an economic collapse on a scale that most people would not be able to comprehend right now.

This is why I am so horrified by what Nancy Pelosi is doing.

In a book that I published two years ago, I specifically warned that war with China would be coming.

Now Nancy Pelosi has us right on the brink of such a conflict.

I don’t even have the words to describe how reckless our leaders are being.

Let us hope that cooler heads will prevail, because once war with China starts nothing in this country will ever be the same again.

***It is finally here! Michael’s new book entitled “7 Year Apocalypse” is now available in paperback and for the Kindle on Amazon.***


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