8/30/2026

Chinese economy collapsing, but chalking up record trade surpluses. American economy collapsing but Wall Street record high

If the Chinese economy is slowing down, how come China is chalking up record trade surpluses year after year? Just printing money like the USA to give a semblance of growing? Such printing of money would make the Chinese Yuan lose value fast. But the Chinese Yuan is strengthening, so what happened? In fact, China has always been accused of keeping the Chinese Yuan artificially low, well below its actual worth and should be kept higher.

Oh yes, Wall Street is at all-time highs every other day. So, the USA should be doing extremely well economically. Good luck to the investors.

Scott Bessent has been boasting about the economy growing out of its deficit. Holy smoke how is that mathematically possible with the USA growing at just 2 to 3%, while servicing interest rates on its long-term bonds are hovering at around 5%. The USA needs to grow above 5% to grow itself out of its deficit.


Anonymous
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1 comment:

  1. AnonymousAugust 30, 2026 10:09 am

    If you believe the anti-China bots on social media, everything in China is collapsing. I think they are barking up the wrong tree and making a fool of themselves. The economy that is collapsing is not China, but the USA on all counts. Things built on solid manufacturing ground do not collapse. Things built on hype and money printing from thin air will soon collapse.

    Of course, one social media is famous for talking about China's tofu bridges and houses collapsing, EVs on fire all over China, jobless and homeless people living on the pavements. What is ridiculous is that those are from people who never set foot in China, while those who visited, worked and lived in China are saying exactly the opposite. Who do we believe? Those in absentia or those on the ground? Take your pick.

    There are plenty of news about USA buildings built on tofu bases that are sinking, so do not assume that laughing first is going to win. He who laughs last laughs best, so they say.

    Imagine a debtor buying back its own debt. Can this really be possible. How come Japan did not do it after chalking up debts more that are 250% of its annual GDP. Japan could have mitigated its position by selling its Treasury holdings of more than a trillion. But Japan's testicles, or boobs now, is squeezed tightly by the USA, unable to move as a result of the pain. That is the price to pay for being a close friend of the USA. The closer the friendship, the tighter is the squeeze. China has no such inhibitions, selling its Treasuries like hot cakes now and then.

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