On the other hand, the toilet paper printing is weakening the US$ as I said this. USA citizens are suffering double whammies with a weakening dollar and rising prices due to the tariffs. But, not to worry as Trump can have all the printed toilet papers to throw at them. Now, Trump really needs a big, beautiful helicopter to go around the country throwing cheap money like Helicopter Ben.
USA farmers are getting subsidies, billions in fact for now. Hip, hip hurray for the farmers now. What happens after that is the question. Is the USA morphing into a socialist state as some are saying, with state subsidies in many areas. The USA had been laughing and demonizing China for giving subsidies to state enterprises. Now, what is the USA doing itself? Anyway, it is always who laugh last that laughs best.
Now, who is going to buy USA debts in the face of all the money printing and throwing, while the debt gets blown up day by day. Those that do so must still be living in the twilight zone. But not to worry again, because the Anglo-Saxon White clique, like the Brits, must lend a hand to keep the US$ hegemony afloat, otherwise they will sink with it.
Anonymous
6 comments:
Looks like China has seen the trap being set by the USA with the sale of Nvidia's H200 chips to China. Why the sudden about turn? Trump is intending to sabotage China's foray into developing high-end chips to rival Nvidia and others, and by allowing Nvidia's H200 chips to be sold to China, he hopes to tie AI developers in China into a trap to be highly dependent on Nvidia forever. This is now unlikely to happen as China already smelled a rat. This is just like the British forcing China to open its market to the opium trade and thereby getting the Chinese hooked.
There are many reasons why China is not going to allow unlimited volumes of H200 chips to flood the Chinese market. First and foremost, it means China is helping Nvidia to regain the Chinese market, which will eat the market share of domestic chipmakers and slow China's aim to be independent of the USA.
Secondly, what will happen if after allowing Nvidia H200 chips to enter the Chinese domestic market and getting those AI developers hooked on those chips, Trump may wake up from the wrong side of bed one fine day and decides to pull the plug to stop those chips from being sold to China. You can see the consequences of this option just by looking at Trump's behavior today.
Thirdly, China is truly serious about moving away from depending on USA chips and is not going to be lured into a situation of sabotaging its own agenda. China wants its AI developers and industrial chains to use domestically made chips. China will pour more subsidies into funding chip development which it is very well capable of doing. China has little economic constraints, has cheap energy, is dominating in AI manpower development, is dominating in research and development.
Some are calling AI a scam, some calling it a fraud. Both are giving high-end chip makers in the USA a lifeline to exploit their dominance. The show must go on and the hype over AI must continue in order for the top USA chipmakers and AI developers in the USA to survive. They know that China is catching up, so make hay while the sun still shines.
Who is going to buy USA debt? Well, Scott Bessant is demanding that the world must continue to buy USA debts. What a guy!
On social media they are calling it 'China burning the USA Trojan Horse', meaning the H200 chips. I think that just is about it.
Actually, they are buying up their own debt. The Fed, the USA money printing entity has on its hands US$4.7 trillion of USA debt, USA social security entities like pension funds hold US$3.7 trillion, and other USA investors like banks hold about US$20 trillion, with only about a quarter of the US$38 trillion held by foreign holders, or about US$8 trillion.
So, they say that the USA will not default by just printing more toilet papers, but that will literally become banana notes to wipe backsides.
Cannot demand the peasants to buy USA debts now.
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