The USA is the mother of all counterfeiters, printing money at its whims and fancies with its US$ hegemony. It could just print and spend, print and buy goods produced by other countries and still claim it is being ripped off. What a load of hogwash thinking that everyone else is stupid.
The fact that countries are not buying USA treasuries and bonds is testimony to its coming problem of keeping the game going. Joe Biden was not overly concern with BRICS during his term. Trump is now realizing that BRICS de-dollarization is not just a harmless threat to the mighty US$, but a problem he has to deal with. Just the start of this year and we have seen the US$ bond market crippled by lack of buyers, while the US$ value has fallen by 10% in just a few months against other currencies.
It is so ironic that the USA is so short of rare earth elements that it has resorted to buying from countries discreetly under the table - South Korea and India, which had now been discovered by China. The USA may have the money, but China holds the rare earth logistics and refused to sell them to the USA. Money is not the mover in this case and China must make sure its bargaining chip is not compromised.
Anonymous
I was puzzled when social media talked about China's dark factories. Those were actually factories completely run by robots and does not even need lights on for robots to work in the dark, producing 24 hours a day. And most amazingly, making rockets and missiles in those factories using robots 24 hours a day sounds terrifying. Maybe even robots making other military robots for war.
ReplyDeleteTrump gloated about producing patriot missiles for Ukraine. Wonder how he is going to do that without most of the raw materials controlled by China. China's control of rare earth elements for weapons is already helping Russia big time, no need for China to directly help Russia by supplying weapons. Maybe China is doing that via North Korea already, supplying all the essential materials to the North Koreans. There are always ways and means to get around a problem, the same as Russia getting around the oil sanctions imposed by the West. Does it work? Honestly it does work in reverse gear for the EU, having to pay through their noses for expensive energy and crippling its own manufacturing base. How stupid is that?