According to former Federal Reserve Board Governor Kevin Warsh, the U.S. is on the verge of a new Cold War with China — but this one is going to be economic.

“We’re at the risk of a real ‘cold war’ between the world’s two largest economies,” said Warsh, who was on President Trump’s list for Fed Chairman before Jerome Powell was chosen. “The last 30 years we’ve been living and breathing globalization as if it’s an inevitable force,” but now, it seems the six-decade-long bubble has finally popped.

During a CNBC interview, Warsh used the term “cold war” to describe the economic standoff, not the decades-long “mutually assured destruction” nuclear stalemate with Russia.

“We are probably on the precipice of a brand new relationship with the Chinese,” Warsh told CNBC.

He asked, “Could we be at the beginning of a 10- or 20-year cold war?” If so, an economic cold war between the countries could have major implications for the global economy like causing a global growth scare and repricing risk assets.

Already we see Americans losing jobs as a results of President Trump’s trade tariffs.  An economic cold war with China would be devastating and could even lead to a global depression. The good news is that, if those of us who know the truth do our jobs, we can either force the policy makers to adopt free market politics that will avoid a crash or make sure the depression leads to the death of the Keynesian welfare-warfare state and the fiat money system that underlies it.