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An interesting movement: the global capital market is currently deciding in favour of the United States and showing China and its control system the red card. It will be important for the United States to find its way back to a free market of free pricing in order to continue this trend. especially against the background of the dollarization, it is crucial to offer better and better framework conditions and to promote the investment location.
This article https://www.thepress.co.nz/world-news/350370374/china-stockpiling-should-west-be-doing-same paints a different perspective with the expectation that a Trump president will see Ukraine abandoned and China moving to take Taiwan, all against the reality that China is stockpiling rare earth and other strategic minerals plus foodstuffs and fuels on an unprecedented scale...in preparation for an almighty standoff. Can the west triumph when China now controls so many strategic production goods while the west has lost its capacity to produce so many?
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The Ukraine war is the key to understanding the geopolitical conflict between the USA, the Europeans and China. The Europeans have no resources of any significance, so they are dependent on either landing them or acquiring them through fair trade. What will they do? At the same time, the Americans could be energy self-sufficient if they had a proper government. So the whole thing can change very quickly. The Ukraine war is the lever to split Russia into many individual states and to extract the resources at prices that would then be determined by the demand side
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I think this is all due to the ongoing crisis in the Red Sea, which I think is one of the most important trade routes for China
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Mmmh. Let's see what happens when the chinese economy shows more cracks
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52 sats \ 1 reply \ @siggy47 3 Feb
In the land of the blind, the one eyed man is king?
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You are too negative. The US could explode if You find back to Your path of free market capitalism
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From my understanding, after the GFC in 2008, China was not really hit with much deflation the way the rest of the world was. They were still riding globalization tailwinds that began in the 70s, overtaking the US at most countries top trading partner, and funneling the dollars they received from the sale of exports into real estate projects all around the country.
It wasn’t that China was immune from the shocks of ‘08 but that the lag time to experience them was delayed by a decade and a half. Now the over investment and global collateral shortage is catching up to China, with Evergrande and Country Garden’s liquidations a kind of Lehman moment: not the cause but a strong signal of the deflationary regime they’ve entered.
The rest of the world might enter a recession as well from the post GFC + Covid stimulus cycle rounding off, this will make China’s deflation likely worse.
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Right. All changed. China now is facing deflationary headwinds
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This is normal for global economic crises, right. Capital flocks to safety and that usually means America.
Also,
It will be important for the United States to find its way back to a free market of free pricing
Hahahahaha! We may be the least dirty shirt in the laundry, but the laundry machine's completely broken.
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The world needs american leadership toward free market capitalism again. There are only some small spots left like Vietnam. The US will rise out of the chaos.
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Both are screwing themselves over, China is merely doing so faster
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Very visual, thank you
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De nada. Greets
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deleted by author
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