American Economics Thread
- Thread starter Bernard
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china doesn't have to do anything, the anglo americans did this to themselves; they printed all of that money and now hyperinflation is staring at them down the barrel.
china simply isn't loaning them any more money, ie purchasing Treasuries.
And the Anglos desperately neeeeeeed China to keep subsiding them but that shit aint gonna fly again, not after 08 and after obama stabbing Hu in the back.
china simply isn't loaning them any more money, ie purchasing Treasuries.
And the Anglos desperately neeeeeeed China to keep subsiding them but that shit aint gonna fly again, not after 08 and after obama stabbing Hu in the back.
Yeah they completely earned this current situation. The only problem is how long things are taking
Jeez typical western politician doesn't want to take any responsibility.
Great interview with Michael Hudson and the Grayzone
A few key points:
A few key points:
- The US will never repay its foreign debt; nations purchasing US debt are effectively providing fealty, gold and goods for worthless pieces of paper. Effectively, debt buyers are fulfilling the role of vassals giving up their tithes, gold and grain to their feudal lord in the US.
- China refusing to purchase additional US debt is China refusing to give further strength to the anglo americans; to the anglos, this is anathema.
- The US also exports foodstuffs and grains to other nations with the directive (via its tools in the World Bank and the IMF) that other nations must only grow cash crops eg coffee, sugar, cacao etc. This deprives those nations of autonomy since they must now rely on the US for foodstuffs otherwise their own ppl starve and revolt. Naturally, this also benefits the US farmers lobby.
- Normally, if the US wasn't a superpower and at the mercy of other greater powers, it would be forced to sell off key national assets to pay off its debt, eg selling Apple to China or even General Electric to China. This is what is has demanded of other nations via the IMF and World Bank, yet it prevents China from purchasing or investing in US tech companies.
The anglosphere is a feudal oligarchy, the elites have power and no responsibility, which is why they fear China's rise so much; China's rise demands accountability and their people will demand it.
They need to reduce interest rates to stimulate the weak economy. But then they have inflation, as China hikes the rmb. It looks like stagflation for these yankees.
Ark's Cathie Wood Says U.S. Set Up for 'Massive' Deflation
There probably is a couple more videos of this person saying this, as she is an old timer, she started her career in the financial world in the 1970's. The reason she believes there is deflation coming to the United States is the following three reason, if ya don't wanna watch the video.
- The current supply chain problems were due to businesses not prepared for the pandemic, and consumers ordered stuff that the producers were unable to keep up with demand. In turn the producers ordered too much, and soon they will be cancelling their orders, such as lumber prices collapsing. This deflationary forces is cyclical.
- The next wave of innovation will be very deflationary. She lists in some other video, which I do not agree those technologies will be that deflationary, she said AI, gnome sequencing, blockchain, robotics, something else I forget, all these will be extremely deflationary she believe. I could see AI and robotics being strong deflationary forces, maybe not so much the other stuff. I still agree that the 4th industrial revolution will be deflationary.
- She is old school and the last reason of the 3 reasons she has is that the technology will transform society and the economy, but that also means that will affect businesses and stocks. It is no secret that businesses are over-leveraged aka they took on too much debt. When things change with the technology and with low growth (due to technology not diffusing into the economy evenly) the company caught on the wrong side of technological change will be force to sell at lower prices to maintain their business and debt servicing obligations. In other words, she is predicting many companies going obsolete are to be caught in a traditional debt deflationary trap, which means deflation everywhere.
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