plawolf
Lieutenant General
Come one guys, this counting of paper imaginary wealth wipe-out is a little disingenuous and misses the bigger picture, which is the extent to which American wealth and power is based on such ‘clever’ accounting mind games and isn’t actually real.
The U.S. didn’t loose 153 Ford class carriers over this because it never ever had the means to build even 10% of that number of carriers over the course of decades.
Current US GDP and wealth figures are so divorced from reality that it actually forces the kind of crazy concentrations of wealth at the top which we see in the US or else the US economy will be in a full hyper inflation death spiral if people tried to cash out even a tiny fraction of that wealth.
Basic economic behaviour theory dictates that if you give, say $1,000 to 1,000 people living on the poverty line, they will immediately spend all or substantially all of that money as additional consumption. Whereas if you gave that $1m to one billionaire, they will just dump it with the rest of his savings and there will be no additional consumption.
Normally, if you want to boost your GPD growth, it’s most efficient to boost the income of the poorest in society because they will spend that money and generate way more growth than the initial cash injection via the multiplier effect. Which is basically the development model China has persuade.
The problem for the west is that their paper wealth creation is orders of magnitudes their physical asset production capacity. If they followed the Chinese growth model of boosting actual consumption, all it would do is lead to massive inflation as they will have too much cash wanting to buy too little physical goods, like hamburgers.
The west’s solution to that problem is to instead pump all that additional paper-only wealth in stock markets and niche elite only assets like super cars, private jets and yachts etc. Joe Six Pack doesn’t bat an eyelid at the news that yachts have gone up in price by a million percent just so long as his Six Pack is still affordable on his wage; and news that Fake-Corp stock value have grown by 50% is cause of celebration instead of concern. That, in a nutshell, is how the great America economic conn works, and how America can continue to report ever higher GDP figures even as its industrial heart is hollowed out and its people feel more economic pressure than ever before despite ever increasing wages.
When Western paper wealth creation has exceeded even the ability of its stock markets to absorb, in comes Bitcoin and all the other made up meme coins and digital assets to support the continued growth of the tech stock bubble.
DeepSeek isn’t so much as popping that gigantic bubble as it is just giving a gentle tap on the pressure valve to release a tiny fraction of the pent up pressure. This isn’t so much a Chinese economic nuclear first strike as it is a gentle demonstration of capabilities and targets.
The message couldn’t be clearer. This is the devastating China can do with a mere revelation of capabilities, what do you think the damage will be if and when China actually did make an attack?
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