USA's problems are small is because they are looking
from the wrong end of the telescope or binoculars. There is a world of
difference looking from different ends of the telescope or binoculars.
Those that believe the USA's problems are tiny and solvable are still
sleeping under a rock.
The US$ hegemony is coming to an end, and
when money printing is no longer the way out, the USA will collapse
like a house of cards. Actually, the USA is just a house of cards today,
or should I say, a house of no more than 'printing machines', printing
toilet papers day and night. That is what is actually propping up the
USA stock market, real estate, commercial properties and the funding of
war mongering activities, nothing relevant towards productive capacity.
As one prominent economist pointed out, growing the economy based on
printing more and more money is no way considered as growing the GDP,
and it is just an illusion of growth that will end in disaster.
Just
looking on the surface is enough to convince us which country is doing
better in terms of infrastructure, innovation, manufacturing,
competition and being welcomed by the Global South countries wishing to
emulate the Chinese model of progress. Why are the Global South
countries in Africa throwing out the old imperialist colonizers and
opting for peace and co-operation with China? Why are they doing that if
China is collapsing, and the USA and the West are seen to be rising?
China
is now leading the world in innovation. China is the country
registering the most scientific and engineering patents, making the most
cutting-edge innovations, turning out the most STEM graduates and
providing the world with cheaper products based on its comparative
advantage and economies of scale. When Chinese manufacturers produce for
its domestic market, which is already huge, any overcapacity in
industrial output benefits the rest of the world. It is a win-win
situation for all. Why is the USA trying to put a stop to it? Which
sensible country in the rest of the world would honestly want to forego
what China is able to provide them cheaply and abundantly, instead of
being forced to pay for expensive products from the West, if they are
even available?
The USA is flogging a dead horse trying to lure
manufacturing back to the USA. It is an illusion that USA originated
industries will move back to the USA to suffer high wages, lack of
supply chains, lack of skilled manpower with stringent rules operating
in an economy stuck in ICU. And that is not even talking about foreign
manufacturers wanting to take that plunge. Oh, except TSMC, Samsung and
other semiconductor giants making such sacrifices just to please the
USA. Cheap Alliance they call it, LOL.
Anonymous
3 comments:
Denial, falsification and propaganda will not make a country better. That will contribute to the decline and downfall of a county's ability to compete and will be overtaken by those taking up challenges, competing successfully and pulling ahead.
The USA debt is now US$35 trillion. It cannot ever be repaid. So, now what?
Interest payments on the debt alone amounts to US$2.4 billion a day.
No problem, right? Just keep printing was the solution thought out. It is only paper and ink.
Elsewhere around the world however, countries are doing one thing discreetly - 'Delete USA'.
Attempts to kill Huawei failed. It was even a global effort with cronies all taking part in trying to get rid of Huawei. They were all fooled and taken to the cleaners, as it has now been revealed that the USA's own military is still relying on Huawei for equipment to function. The stupid Europeans and cronies are left carrying the baby of migrating their systems to fit Nokia or Ericson's 5G network. Who are the fall guys?
Now Huawei is doing even better than before, going into manufacturing sectors that it did not even consider in the past, like EVs. Huawei just would have concentrated on expanding its telecommunication equipment and smartphones sector before those sanctions. But today Huawei is going big into competing domestically and globally with smartphone makers like Apple, not just content to just dominating in the mainstream telecommunication equipment sector. Huawei is gaining on all fronts and the advice is never bet against Huawei vis a vis the Chinese.
The same is being repeated in every other sector, like shipbuilding for example. China's shipbuilding industry was practically and totally unknown, when the Japanese and South Koreans were the kingpins, after they took over from the USA. Did the USA accuse them of stealing USA jobs by the way? And the USA cannot now claim that China stole their shipbuilding jobs, which they would have done, right?
The USA and the West better live with the rise of China, rather than making fruitless efforts to contain China by going back to basics from scratch, like setting up supply chains, factories, looking for raw materials and trying to lure companies back to the USA. The Chinese already had a monopoly on most essential raw materials and the processing logistics as well. It is too little too late.
There was an analogy by Kevin Walmsley, I think, that the way things are done by the West is attempting to corner the market by getting the customers first and then trying to find the raw materials to set up the supply chains to get the stuff out. The Chinese did it the other way, which is finding the raw materials and setting up the supply chains and then they believe the customers and the market will come to them.
China's over-capacity can put the 'going back to basic attempt' by the USA out of business in no time. Knowing this, who is going to invest in such basic infrastructures that could turn into white elephants. Cheap Alliances will never see the light of day. TSMC and Samsung better say goodbye to their billions invested in their semiconductor factories in Arizona.
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