What else will the USA, Europe and Japan be left with, besides chips, if they were to lose the last bastion of their industrial power? China is going to eat their breakfast, lunch and dinner and they are petrified.
Moreover, China has eyes on the aviation sector of the USA and Europe as well, with its own plane coming into the global market. Now, China has successfully developed its own C919 engines, making Boeing and Airbus nervous. The USA and Europeans can refuse to certify China's airplanes for international adoption out of vengeance, but many countries are still confident and buying the C919 for domestic routes. The Chinese aviation sector is enough to keep COMAC busy for years, as Chinese domestic flyers need thousands of aircraft going forward. Boeing and Airbus are going to lose this lucrative Chinese domestic market that they dominated for decades. It is now going, going and soon be gone.
Anonymous
When China has produced enough of C929 and C939, all Boeing and Airbus planes would be subject to high airport charges in China if they refuse to certify China's planes.
9 comments:
A Boeing 777-200 plane just suffered an engine failure, with sparks and smoking, during take-off at Dulles International Airport. Fortunately, it was able to land safely, otherwise it will suffer the same fate as Air India flight 171, another highly touted Boeing 787-8 Dreamliner. Those on board must be peeing in their pants. There are now people who declare that 'if it is a Boeing, I am not going'. Such fans are growing day by day as more mishaps are happening with Boeing planes.
Boeing is in self-destruct mode, a slow demolition of its own making. Confidence in its planes are getting devastated, just like the US$ hegemony. Outside of own self buying the debts of own self through massive money printing, raiding the reserves of retirement funds and other funds by forcing them to buy Treasuries, and getting support from the Anglo-Saxon White countries to save the US$ using all hands to the pump, most other foreign countries have been trying to extricate themselves instead. Even China and Japan are cutting their exposure, but they are not dumping, as that will decimate their other remaining values. Countries are caught in a trap investing in USA Treasuries, using their trade surpluses and finding difficulty to extricate themselves without suffering massive losses. This is one reason why it is consequential for China to dump all USA assets, that it would really love to. But a slow extrication is on the cards, and the USA debt crisis is suffering a huge support problem.
Most Central Banks are accumulating gold and silver as an alternative rather than buying USA Treasuries with their US$ from products they sold to the USA. China is recycling or has recycled its massive US$ reserves, held through trade surpluses, by investing them into the BRI projects, building ports, airports, transportation logistics and providing loans for poorer countries to progress.
Such is the paranoia of the USA and the West that they demonized those loans as debt traps. Not so when the IMF gives loans to countries like Argentina, trapping the country into a debt trap for decades.
Employed too many Fake Indian Engineers that sabotaged their Downfalls!
Heavens mysterious ways of Karma and Retributions!
Who's Who's gonna be NEXT?
Global aviation body have to relook its certification of Boeing. Such a certification ought to be renewed annually, rather than forever. But then, who is controlling the doggies?
Honestly, buying USA Treasuries is a debt trap.
But those living in the Twilight Zone will beg to differ.
Doggies die is doggie's business.
America Treasuries offer 4% interest. Value of dollar falls by 10% annually. Net loss 6%.
Many Singaporeans used to buy Australian dollars for 5-6% interest rate. Aussie dollar versus Singapore dollar has collapsed by more than 40%.
There is a saying - Can add, cannot subtract, using rice in exchange for sweet potatoes. Of course, that was when sweet potatoes were cheaper than rice.
We do not yet know how much more is the US$ going to fall in the face of the frantic money printing going on. The USA faces demand problems now for its treasuries. Raising the interest rate to entice buyers is not sustainable either. The USA is already paying US$1.08 trillion on interest payments alone to its creditors on its massive US$38 trillion debt, almost 4% of its GDP. A 1% increase in interest rate will shave another US$380 billion off its GDP.
Post a Comment