Tariffs are also failing, and the USA is scrapping the bottom of the barrel for more things to weaponize against its opponents. With de-dollarization and the presence of BRICS, weaponizing the US$ and other financial measures will accelerate the fall of the US$ hegemony. It is a sword that is going to cut both ways.
The USA debt is unpayable, and that is the stark reality. Those who hold US Treasuries and other assets must be wary of their debts being wiped out, unless they are also holding USA assets in their country as collateral. Gold is going to be the safest bet, not stablecoins that can be devalued.
Argentina is caught in a trap set by the USA using the IMF, a situation it had fallen into for decades. Its US$ loans from the IMF need US$ to repay to keep Argentina from default, and the USA is desperately trying to save Argentina by extending help to the tune of US$20 billion. Suffice to say, this is adding fuel to fire as Argentina is digging itself deeper into a debt trap that only selling the whole country to the USA is the final solution. The USA is eyeing the raw resources of Argentina, with help that is tied to a long chain. How is Argentina going to repay the USA the US$20 billion, when it cannot even service its debt to the IMF?
Anonymous
5 comments:
What the USA is doing is preventing any country from rising and any sector from overtaking the USA. I am of course just saying the obvious in plain sight, so please excuse me. Think about all the weaponizing, trade wars, tariffs, and propagandas that the USA has trotted out and what it hopes to achieve. Right now, China is the one and only target for all those hurdles being erected.
The USA wants to maintain its US$ hegemony for eternity and Russia and China are using BRICS to de-dollarize, which elicited a threat from Trump to impose 100% tariffs on those joining BRICS. BRICS members are telling Trump to go and fly a kite. Now Trump is left with forcing its cronies and allies, in countries like the EU, to take sides by also increasing tariffs on China for its buying of Russian oil. The EU is already suffering tremendous economic uncertainties and doing that will literally break the camel's back. Same with Japan and South Korea.
The USA saw China's high-speed-railways expanding like no other and wants to curb it by cutting off sale of train wheel bearings to China and even forcing Japan to do likewise, hoping to derail China's HSR. Fortunately, China saw this coming and has invested substantially in train wheel bearings research and development and is near self-reliant in this sector. Soon, bearing manufacturers in USA and Japan will be left with their own markets to absorb the output. Which other country needs the volume of railway bearing business like China? It is a move to make those bearing manufacturers in the USA bite the dust faster.
The USA saw China's aviation sector rising fast and wants to cripple it by cutting off sale of aircraft engines to China. Again, China already invested substantially in developing its own jet engines that are already used by the Chinese fighter jet manufacturers supplying the PLA. Moreover, for commercial jets like the C919, Russia is said to be willing to step in to sell engines to China, which move is slapping USA in the face. It is a blessing in disguise for Russia to earn more money for its war effort. China domestic sector alone needs thousands of new aircrafts in coming years and thousands of engines. Cutting off such sale by USA engine manufacturers to China is no more than cutting their noses to spite the faces.
The USA saw China's shipbuilding eclipsing its own and its allies' shipbuilding ventures, cornering more than 55% of global shipbuilding orders. Trump is raving mad and wants the USA to rebuild back its shipbuilding industry. That is easier said than done. Where are the shipyards and shipbuilding talents of the past that have been mothballed for good? Where and are new talents being trained to do those jobs? How many more years will that take and how much investments are needed?
The USA thought that the last card in its arsenal, the control of semiconductor is the last frontier that China could not overcome. Little does it realize the saying that necessity is the mother of invention and the Chinese are just sitting down and twiddling their thumbs. China is going to eat the breakfast, lunch and dinner of the USA's semiconductor industry, which is going to be left like white elephants standing forlornly in the Arizona Desert without a big market to absorb its production. Moreover, on cost alone, it cannot compete on the global market.
Now Trump is going after movie making, with 100% tariffs on foreign films not made in USA.
Soon, only USA movies and media can participate in Academy Awards and Emmy. How about other countries also using tariffs against Hollywood movies?
Was this another of Trump's 'Executive Odors'?
On this, there is still some freedom of the press in the delusive American media. Only Google could kill freedom of the press like they did once before.
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