Both China and the United States continue their hissy fits. They are using bully tactics against any country that goes up against them.  They have destroyed trust amongst many countries, and everything is based on trust.  About the only countries China does trust are North Korea, Russia, Iran and Saudi Arabia.  One is always judged by the company one keeps.  It is going to take decades for China to restore trust with the rest of the world. 

It is so obvious that China does not want to have anything to do with Canada.  We are a target of China’s bullying, of which Trudeau has refused to do anything about.  After the G-20 meeting Trudeau should have showed China that Canada cannot be intimidated.  He should have remained in Asia with businesspeople and travel to countries in the Trans-Pacific Partnership (TPP) to drum up new business.  Earlier this year he should have been doing the same with Europe.  Trade agreements are great, but they are worthless if one does not work at taking advantage of them.

Six weeks ago, China and Russia had a meeting and both countries agreed that they will be dividing up Canada’s high north as their property. Two weeks ago, Canada and the US military had to escort a Russian bomber out of our northern airspace, again.  Notice not one word out of Ottawa.  Trudeau is telling China and Russia we do not care.

Known as China’s Silk Road project, it is where China lends other countries (usually those that are a financial basket case) billions of dollars of which they are expected to spend on Chinese goods. Kenya has been dragged into the Silk Road, and at a great cost.  They lent money to Kenya to build railroads. One of the railroads is now complete.  It goes nowhere, leaving it worthless.  Kenya is now stuck supporting the Chinese economy because they have no money to pay back their huge debts to them.   

The Europeans will look at kicking Italy out of the European Union since they have decided to join the Silk Road.  Italy today is essentially bankrupt, and their mess will only get worse with China’s help.  For China, Italy is now a gateway into Europe where they will try to cause future trouble.

We are probably in the beginning of a major change to world trade.  Just about every country is being negatively affected by the trade war between the U.S. and China.  While both countries have huge markets, they are becoming too expensive to deal with.  Eventually, the rest of the world will get together and form a strong new alliance without the two.  It could be devastating to both because most of the world’s population live outside of both countries. 

A new partnership will require hard work, but one can form between counties throughout Europe, South America, Africa, India and members in the TPP.  Thankfully, most of these countries already get along and have mutual trust amongst each other.  Therefore, a healthy trade union will work for all.

We strongly suggest do not invest in any Chinese shares or through the Hong Kong stock exchange.  Singapore is now the important exchange for all of Asia.  This is where the money is flowing to.    The China/U.S. mess shows there is zero leadership throughout the world.  Hopefully today’s events will bring a new bunch of leaders who understand economics, respect, trust and honesty.