The 2% growth in the USA is touted as strong and being
hyped up to high heaven. We know the job figures in the USA are not
true, the Wall Street jubilation of reaching new heights is all because
of the printing press working overtime. With all the closures of big
shopping establishments and shrinking outlets, more jobs are lost than
created. Yes, people having to take on two to three jobs to put food on
the table does make job creation a rosy affair. It is all just a mirage.
The
5.2% growth in China is touted as full of gloom and doom, and China is
facing big problems and is collapsing. It is so bad that there was even
one pro-USA shrill shouting that the Canton Fair of 2024, the world's
biggest trade fair held in China, sold 'not a single thing'. Really not a
single thing? This was what one social media site shamefully gloated
and have the audacity to show its face. Unbelievable but true! How could
such a site intend to garner credibility promoting such lies?
China
is now investigating dumping by plastic manufacturers of the West and
Japan. This will not be the only one sector China is retaliating against
and will not be the last. China is not afraid of decoupling today and
will retaliate against what the USA and the West is doing to Chinese
companies. And the most audacious response by the USA is again telling
China not to retaliate against the tariffs on Chinese EVs. When Trump
started the tariff war, he also warned China not to retaliate. But China
did.
China, diplomatically courteous it may be, is not Japan or
Germany, by being slam dunked by the USA and afraid to do anything. Now
Japan is literally asking the USA for permission to prop up its
faltering Yen. Yellen is warning Japan discreetly not to overdo it,
perhaps fearing that Japan may have to dump more Treasuries for US$ to
prop up the Yen, which is not good for the USA. We know that in the
past, Japan had sold off Treasuries to prop up its currency on many
occasions. This time it is another similar crucial move if Japan is to
save the Yen. What one side stands to gain will have to be at the cost
of the other side's misfortune.
Anonymous
3 comments:
The USA Federal Reserve and Treasury Department are both working very hard, hand in hand, to keep the fairy tale USA economy on steroids, to make a case for Biden to earn a second term. They are keeping the USA economy currently on ICU and cannot let it collapse before November.
Today the Federal Reserve may talk about cutting rates soon, manufacturing reasons to support their narrative. Then someone will come out tomorrow to pierce the ballon by saying the opposite. Later someone else from the Fed will come out to say rate cuts are close by again. Then another backstep will take place and so on and so forth. They have been talking about the rate cut issue, back and forth for 18 months and still at square one. The Fed is just like the weathermen, ever changing in their weather forecast. And everywhere at home and abroad they continue to lap up the fairy tale.
The USA over the last two Presidencies lost almost every step of their way, with every policy move backfiring badly. They either shot themselves in the foot or shot their allies in the head. Sanctions may be thought to hurt the victims, but it also hurt allies that have been forced to cut off dealings with the sanctioned party. Russia is a perfect example in relation to Europe.
The sanctions cum technology war against China presently is moving in the same direction for the USA. The USA is attempting to lure manufacturing back to the country, but what it is doing towards China is indirectly showing the rest of the world its untrustworthy behavior towards foreign investments.
Many have been left high and dry after pumping in millions to start factories and forced to abandon them altogether. Chile wanted to start a copper-nickel mine in Minnesota and was stopped in its tracks, losing hundreds of millions for nothing. CATL has now found out it is too risky to start an EV battery plant in Kentucky and has decided to scrap the project, thankfully in time before putting in the money. But it is creating problems for Ford, Volkswagen and Hyundai trying to expand production of EVs in USA leveraging on CATL's battery plant move. Who else wants to think of investing in the USA? Toyota is having second thoughts about investing US$500 million to expand its foothold in the USA.
Trying to lure manufacturing back to the USA is easier said than done. It goes further than just printing money and throwing subsidies that cannot last forever. Moreover, there is the dominance of industrial capacity in China that is always posing a threat to those investments trying to compete with Chinese manufacturing. Can they survive after pouring in all their resources?
Hollywood had been making movies about the walking dead and zombies. It is a reflection of reality in the USA.
This is now the state of most of the USA, after watching a video on Youtube titled 'Kensington Ave Philadelphia - Streets of Philadelphia'. The drug problem is really openly out of this world, with drug addicts high on drugs behaving like zombies and some sleeping on the streets.
Some states in the USA have really gone off the cliff due to Government neglect, and yet the USA is pretending to be great. If only they look in the mirror.
They cleaned up the streets of Kensington Ave, but the addicts are still around, only hiding elsewhere temporarily. The drug suppliers will still be around to revive their trade. The problem is not on the surface and solved by just removing the sight. It is deep rooted.
As we should know, getting drug addicts off their habits is the real difficult problem. We have seen this in our own country. Drug addicts are sent to rehabilitation centers, sometimes for years. In Xinjiang the West spin them around and called such religious rehabilitation hubs as 'concentration camps' LOL.
But once out for good behavior they often turn to the same habit. These people have friends outside with the same addiction habits and once establishing contacts, the addiction is going to return, with drug pushers eager to capitalize. I have seen friends and relatives suffering the pain of having their children in such situations. It was heart wrenching.
And the USA is blaming China. Why is there no such a drug addiction problem in China if China is supplying so much drugs to the USA. I am apt to believe that Karma is working and working well!
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