Never mind that China's GDP growth is now around 4.5% or whatever, but it is still double what the USA has achieved over the years. Real growth supported by real manufacturing and real exports resulting in ever growing surpluses does not lie. On the other hand, growth through money printing is hiding a very unpalatable truth pertaining to more money being used for round-tripping investments in order to give the impression of growth. A Ponzi scheme never ends well.
Countries are wising up realizing that the Ponzi scheme is going to unravel sooner or later. Treasury interest rates are pushed higher and higher, yet few takers are being enticed. The fall of the US$ does not compensate even with the increase in interest rates and the inherent risk of holding such investments. Coupled with the risk of seizures like the Russian assets, lessons are being learnt. Investments in gold and silver rather than treasuries are now more beneficial without the inherent risk. It is better to be safe than be sorry like the Russians and Iranians.
Anonymous
Ponzi schemes always collapse eventually. The perpetrators can kick the can further down the road for the next President to take care of, but it still has to end up the only way - total collapse.
ReplyDeleteThe Chinese saying that real gold does not fear fire. China is the real gold in manufacturing, strategy and countering propaganda. China's productive capacity is solid; its strategy clearly defined and has no need to counter propaganda and instead relying on foreigners to do it for free. That really hurts some people. The visa free travel plan was a masterpiece of ingenuity. They came, they saw and they reported. Not necessary for the Chinese themselves to brag about, as it will be deemed self-praising by the CCP supporters. Of course, they will also claim such foreign visitors are being paid by the CCP to say only the good things. China does not need to counter that. The dogs bark but the caravan moves on. No other proof is necessary.
ReplyDeleteIs Gordon Chang still alive?
ReplyDeleteNot a squeak from him lately.
Maybe he's expired.😁
These are the World's most Traitorous Bananas that sucked up to the Whites and disgrace their Ancestors
DeletePui!
Yes, very much alive. Actually he is a mole send by China to distract the west for paying too much attention on China. He was quite successful in making the west believe that China will collapse, thus giving China times to do what it wanted to do.
DeleteEvery Chinese move is a consolidation of its overall resilience. To take down China the USA would have to move against China in multiple sectors - its education system, its energy diversification, its manufacturing overcapacity, its global raw material control, its domination in renewable energy generation and above all its skilled workforce that have already lost all trust working in the USA to help in its development.
ReplyDeleteThe attack by the USA against Chinese technology is already a battle the USA has only a slight edge at the moment. The AI battle is facing its most severe test between USA and China, with the expected move by the USA slandering China over its industrial scale theft, with nothing to prove beyond rhetorics that USA factories are in any way riding more on AI adoption than China and having any significant edge over the Chinese. So, the only way forward is trying to demean China's AI advance by hitting below the belt. The USA had used this tactic against Japan and Germany before and succeeded beyond measure.