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.
Anonymous
3 comments:
USA can still continue to print furiously to keep the game going, keeping those toilet papers in circulation inside the USA, forcing big banks, retirement funds, Wall Street investors and its own citizens to buy up the debts and everything is going to be rosy. Own-self indebted to own-self is the way to go.
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.
Ahh, Sanae Takaichi won by a landslide. But is that going to change the fortune of Japan? I doubt she will be able to do that. Even a samurai like Shintaro Abe could do nothing with his three arrows despite all his effort. The Japanese are just like the hillbillies, content to live the elusive Japanese dream, just like the elusive American dream.
'Samurai Daddy' a videoblog by a Japanese salaryman, supposed to be among the top 10% of earners in Japan dispense a very sad and poignant view of Japanese people's daily life. We always thought the Japanese were filthy rich people in the world. The reality really is hard to believe.
Takaitchy is the Japanese version of Trump, godsend to destroy Japan. She will imitate and copy what Trump did and think she is tough and smart. These are the ingredients for China, Russia and Korea to wipe out Japan.
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