American Economics Thread

[Deleted member 15949]

What do you mean never spend. If they trade with China they will use it.

If they are running perpetual CA deficits with China, then China ends up accumulating a lot of FX

 

[Nobaron]

No, the US economy is very stable, has one of the highest income/wage levels in the developed world and the fastest wage growth. This above is just cope

Sure brah, whatever you say

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[TK3600]

If they are running perpetual CA deficits with China, then China ends up accumulating a lot of FX

So you are saying while they will use them to buy chinese goods, they will still always maintain a bunch of money sitting there = "not used"

 

[Deleted member 15949]

So you are saying while they will use them to buy chinese goods, they will still always maintain a bunch of money sitting there = "not used"

Yeah, China just ends up with a shit ton of FX

 

[hkbc]

So you are saying while they will use them to buy chinese goods, they will still always maintain a bunch of money sitting there = "not used"

Nah, using it to fund the Belt and Road, why do you think the Americans hate it so much and call it a debt trap! It screws with the dollar money printing/laundering ponzi scheme that passes off as GDP growth there!

 

[Strangelove]

 

[Deleted member 15949]

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[Tam]

Yeah, China just ends up with a shit ton of FX

China will end up using the FX to buy ship loads of material. That in turn causes material prices to go up. Hence inflation becomes global and hits back to the US.

For example, China buys a shit ship load of corn in the US. Corn prices go up in the US. Food prices go up in the US as a result.

 

[siegecrossbow]

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[Bob Smith]

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Andy Rothman, a China specialist at Matthews Asia, views the growth reversal as a blip along a road leading to China eventually becoming the world’s largest economy. The recent U.S. results are “like getting so excited about the Washington Nationals winning five in a row but they’re still five games below .500,” he said.