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21 sats \ 0 replies \ @Solomonsatoshi 2h \ on: Fed approves quarter-point interest rate cut and sees two more coming this year econ
All the tertiary level monetary leverage and debasement cannot rescue an economy that has for decades ignored investment in productive infrastructure, skills and machinery.
China now builds robots, PVs and lithium batteries at half the cost any competitor can and produces nearly all the refined rare earths.
The west got deluded that financialisation creates wealth when it is productivity of goods and services that creates real wealth and prosperity.
The US has lost control of so many strategic supply chains it is now subservient to China.
The debt bomb that has been built up over 4 decades of neoliberal financialisation is now reaching critical mass and if interest rates on USTs go over 5% it implodes.
Rate cuts and tariffs cannot fix the structural damage of 4 decades of neoliberal voodoo economics.