The USA is asking partners or doggies to support USA's economic plan.
Believe me, that plan is all about supporting USA's interest, nothing
beyond that, and the most important objective of which is helping to
keep the US$ hegemony alive.
The USA knows the US$ days are
numbered, not immediately apparent yet, but the tsunami will come,
either when the Arab states officially starts accepting other currencies
in the oil trade. Or when BRICS gets it right in having a new global
reserve currency and a new settlement system in place, as a viable
alternative to the US$ and the SWIFT system.
It may take time,
like China waiting thirty years to rise to what it is today. China did
not just rise up yesterday, did it? And I believe the USA was so
confident that China could never rise in the face of all those hurdles
like poverty, backwardness on the surface and discontentment abounding
due to poverty. Now, with China rising too fast, they are nervous and
panicky, desperate and incoherent in their countering.
Never mind
that the BRICS new system does not totally replace the US$, but that
will give countries the impetus to hold less US$ to do the oil trade in
particular. Now, is that going to mean anything? Oh yes, countries will
sell off most of their Treasuries and hold less of the toxic asset. You
never know when the USA clowns will change their minds about repaying.
The world has seen robbery, piracy and other acts being commited right
in front of their eyes - in Venzuela, Afghanistan and Russia by the
Mafias.
They have not done it yet against any Treasury holders,
but that does not mean it will not happen. If they should do it by just
seizing just one country's Treasury holdings, that will cause the
collapse of the whole house of cards. This is why they have not done it
yet, but the signs are there during the onset of the COVID19 pandemic,
with China being openly identified as a target country with Treasuries
of more than a trillion to be seized, as advocated by hardliners in
Washington.
Should China be worried. They should.
Anonymous
Papies will start to invest in the USass when the gst $$ start flowing in. It a way of helping our master in need...haha
ReplyDeleteNow the circus is starting again in Washington with Trump firing the first 2024 campaign shot. Watch the fun put up by the clowns!
ReplyDeleteAnd guess what he is saying - 'This is the last shot to save America (USA actually)', meaning only his re-election in 2024 will save the USA. Did I read or hear wrongly? Didn't he already made America (USA) Great Again during his four years in the White House? Why is there a need to save the USA now being already great? Didn't he won the trade war with China, claiming that trade wars are easy to win. And Biden is doing a great job as well, following in his footstep of confronting China to make China small again.
With all that winning, I would think the USA is already very great and still shashaying all over the world, declaring proxy war in Europe against Russia, confronting China, creating chip alliances, rallying doggies as partners to solidify its US$ hegemony, bullying Africa and Latin America on the pretext of helping them even today.
So much winning that the USA can afford to keep pouring money into Ukraine to be stolen by all the most corrupt men in Europe presiding over there, including Zelenskyy as the Corruptor in Chief. Now Zelenskyy has purged them, after allowing them all this time to enrich themselves beyond imagination, with him taking the cream of the cut. Robbing Hood is probably telling his merry robbers that enough is enough for retirement and keep their mouths shut. But robbing the rich to help themselves is no crime I guess. What help that comes in for Ukraine after this, which is not for long, is all for his own pocket and he does not have to share a penny. Now, are those who kept pouring money into Ukraine be feeling silly, or stupid that they had been conned? I guess not, since stupidity has no cure.
Oh, by the way, there are so many domestic problems in the USA itself that cannot be solved, but helping Ukraine is the most important priority above all that. Pity demented crazy old Joe, having so much to chew. Some say this is an 'abuse of the elderly'. Solving the debit ceiling is actually the easiest problem of all. Actually no problem at all, and is just a show put up to fool the masses. One hundred and one percent sure it will be raised, after some high and low notes being sung in the operatic circus. What is difficult to solve, and has been around for ages is homelessness, falling infrastructures, drug additions, fighting inflation, and trying to keep the US$ hegemony alive.
Perhaps Trump was right talking about his re-election in 2024 as 'the last shot to save the USA'. Trump knows best. The ease he expressed of winning trade wars, the confidence he espouse about COVID19 going away in summer can testify to his futuristic acumen, LOL. Holding that Bible upside down before his term ended last, for a photoshoot outside a church in front of the White House, cements the believe that the man only tells the truth, the whole truth and nothing but the truth, LOL again. Wonder whether he talks directly to God as well like George Bush Jr. Never mind about the more than hundred million infections and more than a million deaths. All will be forgotten come 2024.
Zelenskyy is already talking about rebuilding Ukraine, and he is asking for US$600 billion to do that. He thinks the whole world is his ATM machine, everyday asking for more and more money.
ReplyDeleteThe USA, UK, Nato, Canada and Australia can give as they are all rich countries now pouring resources into Ukraine. One good turn deserves another. Not China anyway. China only helps really, really poor countries in Africa, Central Asia, Middle East and Latin America. Help that will be repaid with gratitude, graciousness and long term memory of China's kindness. China must not help those that will bite its hand in return. China must not forget what it did in 2008 and what it got back in return.
If China sells their US Treasury bonds (3% of total), they will have US dollars, but less of them because of devaluation. Then what? They buy physical assets, they expose themselves again. If they lend the money to African countries, they get paid back in worthless US dollars. This becomes LPPL.
ReplyDeleteChina would only buy gold. Stupid people do not know this.
ReplyDeleteI understand Chinese loans to African countries are mostly collaterised by China having a secure hold on those African country's commodities, which China will have priority to extract and import as well, like Uranium, Cobalt and Copper. Even if these are priced in US$, China does not need paying the African countries, but just offsetting their import of such commodities against those loans. Just quite alike with China's deals with Russia and Iran, with oil for infrastructure, all avoiding payments having to go through the US$.
ReplyDeleteChina is not that stupid to give US$ loans and asking to be repaid back specifically in US$, if no other way is possible. Being repaid all loans in US$ serves no purpose when China is already trying to recycle those surplus US$ accumulated from trade with the USA. That is the beauty of recycling the trade surpluses by China via the BRI projects, and that certainly rattled the USA. Some said that such loans have also been structured to be repaid in Yuan, but I am not so sure about this.
Lending to African countries and even getting paid back in worthless US$, can still always be recyled as loans to others later on, is still safer than keeping toxic treasuries that can afford the USA to have a hold on China in case of war. China may lose a huge sum if that happens, as shown by the US$300 billion stolen by the West from Russia.
Sure, give and take a few defaults by African countries of some billions, but it is still safer than losing all the trillions in treasury holdings in one big gamble. Countries will learn from what they see after the Russian experience.
Of course, nothing good has been written about those Chinese loans to Africa on MSM, all plain exaggeration like the debt trap hubris. But listening to the Africans themselves, you will get a diametrically different perspective. Straight from the horses mouth is way more trustworthy than believing in fabricated gloom and doom. China has been a great competitor to IMF and World Bank, with the formation of the AIIB and coming up with the BRI idea, and we can expect no different reaction from the West, media and all.
Funny that some people still thinks China is stupid and exposing themselves again and again.
ReplyDeleteA few things just goes to show how far ahead the Chinese planning and thinking is. China betted on Electric Vehicles years ago, and look at how far ahead they have gone in producing EV of all kinds.
China knew what was to come with EV and using soft power negotiations secured almost all their total supply of cobalt for batteries from Africa and is now the leader in EV batteries. China invested in solar panels, long before Trump even tried to demonised just years ago. Now China has the solar panel market under its thumb.
One of the greatest idea from China is the BRI.
ReplyDeleteThe greatest idea from the Americans is WMD.
China is now ahead in most of the next technologies, ie EVs, EV car batteries, Solar panels, solar technology, AI, 5G, 6G, IOT, Quantum Tech, Space tech, drones, supply chains, cashless transactions, ship building, mobile phones, even in chips, China is catching up rapidly, stealth technology, anti ship missiles etc etc.
Do not also forget that by recycling those US$ surpluses from trade with the USA, China need not now invest solely in US Treasuries or physical assets in the West. Those are no longer safe, a lesson taught by what happened with Russia.
ReplyDeleteIf not for being given the opportunity to invest in the BRI and infrastructure loans to Africa and other countries, China will probably have to invest more in treasuries and physical assets in the West. Now it is a different ball game.
China has the whole world to invest its money. At this moment, Africa is a major centre of Chinese investment and trade. The Arab countries are opening up very quickly after Xi's visit.
ReplyDeleteAcross the world, all the countries that were neglected and sanctioned by the Americans are fertile grounds that would welcome Chinese investment, unless they choose to go the American way and engage themselves in foolish and unproductive wars and destruction, like in Europe now.
But all countries would want to be rich and prosperous and live well. And China's formula is trade and economic growth that they all needs. The whole world is full of opportunities for China to invest in and China needs a lot of money to do so.
Little wonder that Trump wants a trade war with China, to prevent China from using recycled US$ from trade surpluses to fund its investments in the BRI and giving cheap loans to poor countries. The AIIB and BRI are giving the IMF and World Bank a run for their money, and China is winning.
ReplyDeleteSome on social media are claiming that China is seriously short of money and the country is in financial trouble. Really? I read elsewhere that China has about US$3 trillion in its reserves to fall back on. Selling part or most of its US$870 billion of treasuries, the most liquid of its reserves, should solve part of its problem if it is true. So, what is the problem?