Is this situation just a fantasy in a parallel world or reality, when people are being rendered jobless and new job creation absent, how are they going to cope? Just play the stock market and get rich without working? That is the playground of the rich as always and bears no relevance to the bottom feeders. When there are people needing two jobs to put food on the table and pay for a roof over their heads, what is happening in the USA is beyond comprehension. The homeless situation is going to escalate going forward and Trump needs a big distraction, over Iran perhaps.
Trade wars are easy to win mantra has been chanted since 2018, but it looks like the only countries winning are China, Brazil, Russia, Argentina and countries in the Global South, notably Africa. Manufacturing has not been moving back into USA as manifested in its massive trade deficit of US$56.8 billion in November, a 94% increase over the previous month. This shows the USA is importing more than it exports, a result that indicates how well its manufacturing sector is doing. Since the trade war in 2018, China and other countries are making alternative deals among themselves, while the USA is content to sit around and gloat about attracting manufacturing back without creating the necessary conditions to walk the talk. Worse still is the constant demonization of Chinese investments, taking issues with National Security and punishing Chinese companies like Tik Tok. It is a case of cutting its nose to spite its face.
Little wonder that some people are saying that China had quietly rooted for Trump to win in 2024, not openly of course, otherwise China would be accused of interfering in the internal affairs of the USA.
Anonymous
1 comment:
There is only so far that the USA can kick the can further down the road. At some point it has to pick it up and faced the consequences. By then the problem would be even more devastating to say the least.
The narrative that the USA can never default may be able to continue forever if the US$ hegemony is not being threatened, which will allow the USA to keep printing toilet papers to rip off the rest of the world. With manufacturing not rushing into the USA and already crippled by rising cost of raw materials due to tariffs, the USA still need to import vast quantities of goods, which is undeniable with its trade deficit setting records.
Now, the USA is even finding it difficult to keep exporting its inflation overseas, with countries not willing to keep buying its debt. BRICS countries are doing fine conducting trade outside the US$ and using their own currencies, just like China and Russia. If more countries join the de-dollarization bandwagon, what does that mean for the US$ going forward. Trump can threaten them with tariffs, but it is not working. All they have to do is refrain from exporting to the USA and divert to the Global South, where the market is countless times bigger than the USA.
Bear in mind that China is helping to develop countries in Africa, that will open up a very lucrative market for China and other BRICS countries to exploit. The world would not die because of the exclusion of the USA market.
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