With job losses escalating and job creation cratering, wonder how the partying can continue like the norm. Big USA tech companies are investing in each other, called round tripping, to keep the appearance of growing the pie. AI spending is a big problem with returns full of uncertainty when Chinese AI upstarts can do as well with a fraction of the expenditure.
With de-dollarization being adopted by more countries in BRICS, wonder when the shit is going to hit the fan. But as always, ignorance is bliss and burying heads in the sand will avoid the consequences.
Meanwhile, the Anglo-Saxons clique can help to keep the house of cards from falling over by also buying up some of the debts, like the UK. Maybe Japan will do the same. But Japan is already in deep shit itself. with rising bond prices and debts twice the GDP. The Japanese Yen is also in trouble and with wages unable to keep up with inflation due to the falling yen, life in Japan is no Japanese dream, just like the American dream. How times have changed! But it is alright to have dreams and keep dreaming.
Anonymous
1 comment:
As long as the use of the US$ keeps decreasing, and as long as countries continue to shun away from buying USA debts, the balloon must go bust.
Unsustainable money printing can continue to keep the USA economy in ICU, but inflation will skyrocket and the US$ will continue to depreciate. We have seen the rate of depreciation of the US$ just over the last year and this is going to continue. albeit even faster. Do not be blindsided by the stock market skyrocketing, as that is where all the money printing has really gone into.
The real gauge of the economy is in job creation, business expansion and manufacturing growth. Job creation is in the dead zone; businesses are not expanding, just resorting to round tripping investments to give a semblance of expansion, and are instead laying off staff and company bankruptcies are escalating and trade deficit soaring. Even the tourism industry is facing a severe testing time. When tourists avoiding visits, hotels, food and beverage entities and entertainment sectors suffer. What has added to the problem is the action of Trump's ICE goons that have created a negative image in the minds of visitors. They just avoid the USA, as the world is wide enough to provide an easy alternative for a holiday.
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