Liquidity Shock due to over manufacturing (dumping tactics). China's Lead in the World economic instability.

   The problem with the business cycle of the US is that it is vulnerable to liquidity shock. As I have stated through my service bell curve, which is driven by the fact that the US can't compete with neo-mercantalist like China, who protect their markets from imports; to create a higher trade surplus and capital inflows instead of capital outflows. Which they then turn into negative capital inflows (or liquidity drowning of the US financial sectors) for the US, but more positive capital inflows for the neo-mercantalist, much like they do with their round tripping regarding Hong Kong investing.

      This reliance on a neo-mercantalist country or countries that have been known to round trip their capital inflows or liquidity right back into the market place they are draining of liquidity causes a market melt down. This market melt down is based on the lack of jobs being created by the negative capital inflow to the US. These jobs however, due create a sort of short term service job flow from the negative capital inflows.  This creates the service industry boom, by pushing more money in an industry that will boom and bust with the employment multiplier as the market shares for that service are tied up to providers. This is done as more and more financing comes back into the US as the US positive capital is exported out while negative capital is imported in. The US starts to drown in negative capital inflows. Which some economists incorrectly think balances out the account books. However, it does not.
   This is because the negative capital inflows which have thus caused a boom to peak and then spike, as the US has no reliance on manufacturing or high technology jobs anymore. Means that the US has to create an artificial negative capital inflow just to keep up its quality of life. This is the stimulus plan we have seen.

   Were instead of doing what China does just lowering imports into the US and raising exports to other countries. The US keeps consuming as it is part of a national security plan, to use our deficit spending and consumption to keep our international clout up. However, this liquidity rush by neo-mercantalist is not just being done during the service bell curve boom.

   The worst part is they know about the US's very old and archaic national security plan of consumption. So they have created a strategy to take advantage of it. This strategy not only includes the liquidity dumping that is created by the cheap manufacturing dumping that brings in jobs and high capital inflows, with many round tripping negative capital inflows for the Us turning into again another round of positive capital inflows for China and the neo-mercantalist. But also a liquidity use for purchasing market shares and power through industrial acquisitions in the free markets that have crashed. This then leads to further the international economic instability.

   This instability will thus start all over again. Once the US creates another service industry to bring its citizens quality of life up higher, while its ability to compete in international productivity will be drowned out by more liquidity dumping with another service industry bell curve boom bust. Much like the savings and loans, .com and the mortgage. The mortgage was the worst multiplier because it deals with the free markets most sacred civil right, the right to own property.

   Thus, this cycle is the true cause of the liquidity shocks. These shocks come after the service bell curve has run its toll and then has been normalized. This normalization is were the demand and supply connect and even out with the employment multiplier. This needs work, I bet it will look good for my thesis. This liquidity shock is then caused by a credit crunch. As at the end of the business cycle after the feeding frenzy to try and get rid of bad liquidity that did become non existent liquidity and many banks had to eat huge losses. This means this shock is a strategic counter to the US's national security idea of consumption. Were the liquidity shock caused in the world does not actually affect the neo mercantalist or communist but herds them into more market shares, and more round trip financing which creates more negative capital inflows for countries to rebuild their economy, while China gets a win win of positive capital inflows from the root cause of their manufacturing dumping.

   The problem is that economists do not seem to see that far down the line. As the communist and neo-mercantalits do not worry about upfront cheap dumping of products because they will just recapitalize their SOE's and centralized economy until the free market service industries normalize or crash. Once this happens there is usually a credit crunch which causes a liquidity shock. This means that country with the most reserves can easily override the shock and then complete their end game of domination instead of fair and competitive economics.

  This is all done basically because of liquidity pools created by massive amounts of reserves. These liquidity pools allow the communist to keep investing and round tripping their capital inflows over and over again. Which is much like an erosion tactic of the sea. As each round of negative capital inflows to the US means more inflation. Which then leads to more liquidity shock as we lose more liquidity and savings complete are used up just to pay for negative capital inflows.

   Thus the Solution is to make sure that countries like China and Germany which are very rich countries, which huge histories of totalitarian government economic control are not allowed to obtain such huge amounts of liquidity pools. This is easily done by creating the US's point of view of creating peacefully societies through consumption. The free markets theories that they would consume the communists sins of unfair economics and lack thereof of economic freedoms. Well it worked, both Germany old candle still gona get wiped when I have my crowd of people flocking down the DMZ to hold each other then build a capital city, ya what. However, China and the neo-mercantalist would rather blame the US and the free markets for the very things that they caused. As if they were doing some kind of new economic model or even if we did not allow them to compete unfairly for all these years. However, now if Germany and China would actually follow suit it would be better for all.

   This is because liquidity shocks would not be used for domination as the Communist and neo-mercantalist are doing now. This is because the liquidity pools would be in countries that are very poor and need to develop. Thus, while countries like the US, China and Germany could actually still consume poor countries products to build them up, this would then open up their domestic markets and other markets in the world. Thus allowing an export of products and a creation of jobs at home. At lass, China and Germany wish to stick with their historical views of conquest instead of the US's view of consumption. That is alright my thesis will also bring into light a new way to consume yet keep at bay neo-mercantalist and communist that use economic warfare to crash then devour. Instead of using economic warfare to develop and create sovereignty, with new markets for all.

Rider I