5/21/2024

Yellen slam dunk Japan, but no way to slam dunk China

 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

2 comments:

Anonymous said...

Japan should know what it will reap being a close friend of the USA, even following the dictates of the USA. It brought all this upon itself.

Not just Japan. The EU also bought into the 'iron clad' friendship stance of the USA in NATO and is paying for it. NATO has a binding clause that says any attack on a member of NATO is an attack on all countries of NATO. How solidifying is that empty boast. Now it is the USA that is actually doing the attacking on the EU and vis a vis NATO. Destroying the EU economically is as bad as destroying the EU physically.

I could not believe my eyes and ears when some leaders are now just admitting that the sanctions imposed on Russia is doing more harm to Europe than Russia. Why does it take all this long for them to see the full picture, when it was an open book for common folks like you and me? I guess covering up is not possible now and telling the truth might still garner them some semblance of credibility for them to lean on.

And the USA is going to sanction China? I think the harm will not fall on China alone, but on the developed world, especially North America and Europe. The rest of the Global South will be less affected, with China diverting all the cheap products like EVs and consumer goods to them instead. Who is going to suffer? Like Russia, the Chinese Yuan will initially be hyped up to turn into rubble, and China will collapse. How many countries under sanctions have collapsed so far. Not one, and what does the USA expect of China? China is not going to be the first to collapse under sanctions. That is just wishful thinking in the minds of morons like Gordon Chang.

For all we can see, Japan will be the more likely candidate to collapse followed by the USA itself.

Virgo49 said...

https://www.channelnewsasia.com/asia/taiwan-new-president-lai-ching-te-Virgo49parliament-conflict-argument-election-4351376

Fight said Fight.

Don't said Arguement.

Western Medias Paid Doggie