Too much credit is given to the USA at this point of
time. What does the USA produce today besides weapons of destruction?
And not to forget garbage of course, which Trump is clearly advertising.
And everything usable that the USA is trying to produce now is not
going to be competitive. So, what strategy is going to work for the USA?
Luring manufacturing back from the EU to the USA is a dumb move to say
the least. EU manufacturers are just jumping out of the frying pan into
the fire, because they are also producers of uncompetitive and expensive
goods. When you cannot compete, you lose the market and who do you
intend to sell your products to?
Luring European manufacturing
to the USA is not going to solve USA's uncompetitive situation. Making
products that are way more expensive than China is not going to be
workable. Moreover, China has an overcapacity advantage, while the USA
is just trying to build up its manufacturing capacity to provide
retailers like Walmart with 'cheap' goods. How cheap can they be with
energy cost, labor costs and raw materials way above what China is able
to provide for its own manufacturers. Please do not try to pull wool
over people's eyes by using the term unfair 'subsidies' that the USA
itself is doing big time, using suspicious terms to hide the reality,
like 'Inflation Reductions Act' or throwing billions to attract foreign
chipmakers to set up plants in Arizona. Those are subsidies, clear and
simple. Even that is not making those chipmakers conquer the world and
instead losing the China market in the process.
Anonymous
PS. Poor beggars with their industries and economies collapsing and still pretending to be strong, and wanting to start trade wars with China. One by one, the European economies are going into recession and the Euro is now the cheapest against the American dollar. This is the most prominent sign of Europe going into recession and bankruptcies. Thanks to Von De Leyen and the clowns in Washington.
1 comment:
For all we know, recession is already in all the Western countries. Statistics can be massaged to show there is no recession, just like job figures. I understand they have changed the formula for classifying recession. And subsides have been given a new name - Inflation reduction. Very ingenious indeed!
What about changing the term 'decoupling' to 'derisking' when everyone knows they mean the same thing, however much they want to twist and put a spin on it. How could job data be so wrong by hundreds of millions over several months? Oh, I forgot the USA is a nation of liars. They openly admitted that they lie, cheat and steal, didn't they? Would you be brave enough to trust their figures plucked from the air, just like their currency, backed by hot air. Just take it that they have their 'exceptionalism' to do things that others cannot even think of.
USA retail sales are up, and job creation is said to be solid in November. Now the Fed is rethinking its interest rate cut. Factors such as consumers already having advanced knowledge of Trump's tariffs on imports have given a boost to spending, with consumers trying to avoid having to pay more when tariffs are imposed. Then there is the year end festive period adding to the sales boom, needing more workers. Trump will now gloat about the positive effect of his re-election pushing up jobs and retail sales. Trump never miss any opportunity to take advantage of any positive news.
The point is, when the shit hits the fan, he will definitely push any negative news to poor Biden. Not that Biden cares, as it is one advantage that he has his dementia to fall back on. But then, Biden is not going to admit he has dementia, just like a drunk always claiming he is sober. His dementia resulted in his 'missing in action' at the G7 and G20. Some said that he was missing from a photoshoot, having a person to person talk with a tree, LOL.
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