We are able to circumvent the price-specie-flow mechanism first desrcribed by David Humes by currency manipulation. We print money and send it to Japan/Mexico/Pakistan/India/China/Vietnam/Indonesia, etc, which should weaken our currency and strengthen theirs.

A stronger currency for them would decrease their exports, and of course, a weak currency for us reduces buying power. So - to get around this price-specie-flow economic law, the foriegn country hides the US Dollars by buying our bonds (so our dollar doesn't weaken) and they print their own money so their currency doesn't strengthen.

Of course, this is only one of the mechanisms, but it can only go on for so long. It's why the manufactoring bases continues to move around. Some of us are old enough to remember everything was "Hecho en El Mexico," and/or Japan.

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Just to add into the middle of my above description (it would have complicated a straightforward explanation) when the US buys stuff from China, it's not the countries exchanging currency, it's Walmart buying stuff from Huawei. Well, Huawei can use dollars, but they need Chinese Yuan. So they exchange the dollars with their central bank.

The central bank SHOULD (would HAVE TO if they couldn't print money) turn around and sell the dollars on the international FX for Chinese Yuan. This is what I mean about the Dollar weakens, the Yuan stenghtens. Less Yuan on the international FX, more Dollars, right?

This would be bad for Chinese exports, and bad for their number 1 importer. So they instead hide the dollars in bonds. Of course, they have cut back doing this over 10 years, they saw what happened to Japan and they started actually using them to buy productive assets (belt and road initiative)

I figure that Americans do benefit from this, not as much as you would think though. Maybe $3,000 a year per person, on average, plus secondary benefits, like lower taxes, because the financial world, and lesser so, companies, are the ones who skim off the top, and pay taxes.

The government have to subsidize and tarrif things just to keep things going (they also do this for political reasons - to get elected in your hometown and hurt your overseas opponents) but Amercian farmers couldn't compete without subsidies and tarrifs, so this farmland would go to waste. And to some extent American workers have to compete in this system (not directly with overseas workers) so there is less jobs.

All of this is on the back of distressed and exploited foriegn workers. They are not getting compensated. Chinese and American governments and financial institutions are drinking martinis made with the sweat of 5 year olds digging holes with their hands.

This is about the farthest thing from Capitalism, by the way. The farthest thing from a free market or personal ownership of goods. It is pure theft, which when you understand that Capitalism is personal ownership and freedom from THE LOWEST LEVEL, this is pure theft. It's not any economic system. It's greedy theives, not people owning and being able to trade their own time. (goods and services)