Читать книгу Financial Cold War. A View of Sino-US Relations from the Financial Markets онлайн

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The trade war launched by Donald Trump in early 2018 has been the focus of much attention. However, this was neither the opening salvo in the geo-economic clash between the US and China, nor is trade even the most pertinent battlefront. While trade flows were at the forefront of policymakers’ thinking at Bretton Woods,ssss1 the huge growth in global financial markets since then means that today the trade in goods and services has been vastly superseded by financial flows, which now account for roughly 90 percent of cross-border capital movements.ssss1 It is therefore to the capital markets that we must look to fully understand the scope of the geo-economic conflict between the two countries.

As the geo-economic campaign between China and the US unfolds, we face a substantial risk that this will spill over into broader conflicts that could result in disaster for both nations and the rest of the world.

The evolution of markets has been a major civilising force for humanity. Financial markets provide a vital means for capital to be allocated to where it can be most productively used and have enabled the sharing of risks, such that mankind has been able to undertake giant ventures beyond the capacity of any individual or small group. This has contributed to a reduction in conflict and to huge advances for humankind.