America's overcapacity crisis

 No, China's overcapacity in production is not a problem to China or the world. China's overcapacity is a boom and a welcome event to all the countries that want to have the best and most advanced goods and tools at the most affordable prices. China is delivering to the world what the world wants at marginal profits that are good enough for China. China is happy with the lower profits as long as the customers are happy and Chinese workers and manufacturers are happy.

The Americans are now also facing overcapacity as a very serious manufacturing and financial problem. The Americans, including the Europeans, are continuing to manufacture and to produce goods that they used to produce like before. What is the problem? Where is the problem?

The problem is that the American goods are not only shamefully expensive, but also of a quality that does not give good value for money. In many areas, the goods are obsolete, irrelevant and not wanted by their customers. For example, no one is going to buy America automobiles, not even American EVs. The net result, American factories ended up in a 'overcapacity' situation, plenty of goods and products, but no buyers. American warehouses are fully stock with goods, but not moving.

This state of affair, ie overcapacity in American factories, is across the industries. Everything the Americans makes is no longer saleable. The more they produced, the more they are filling their warehouses and storage spaces.

American overcapacity is killing all American industries, and Nvidia is the biggest victim with millions of high end chips, due to overcapacity, but no one buying or few takers. Production overcapacity, ie over supply against lower demand or no demand. This applies also to AI models, overpriced chasing away users that can fall back on free AI or affordable AI.

The Americans and Europe are going to eat their overcapacity for breadfast, lunch and dinner, all year round. They have to consume whatever they are producing furiously to keep the factories running and workers occupied and employed, and to keep paying to China for more raw material and parts, to keep China's supply chains running.

Overcapacity is now a curse in American factories. The Americans must manage its own overcapacity problem or will run out of money and start to retrench more workers. The factories cannot hold on to their workers when the goods and products are not selling and bringing in revenue. Period.

PS. The American companies are throwing away the cars they cannot sell. Nvidia will soon have to do the same.

Iran War is an Israeli War to destroy Iran to take over the Middle East. China is just coincidental

The USA is now threatening to punish any country that buys oil from Russia. That must be read as a move targeting China above all else. The USA is still trying desperately to break up the good relations between Russia and China. I do not think China will cut off Russian oil whatever happens. The ties with Putin are too important just to crumple to the USA whatever the threat.

In the meantime, China is going all out to wean itself from being overly dependent on fossil fuel. It does take time to change, but it is good that things are moving forward instead of just waiting for the oil trap to be used to cripple China, including naval blockades. The USA realized that the war on Iran has only a limited effect on China's industrial base and needed to cut off Russian oil supplied to China, if at all possible. Many have been saying that the war against Iran is a proxy war conducted against China, which I tend to agree.

The USA is fearful over the rise of China for years and is using all kinds of economic coercion against everyone to comply with its agenda to cripple China. Let us hope the world sees the real intent of the USA, destroying everyone's economy just to bring down China.


Anonymous

Trump is just a demolition man

Honestly, how many projects under Trump's hand is a success? None whatsoever.

Even at home, Trump is just the demolition man. He demolished the Rose Garden to build a Trump Ballroom, which is now stopped by the court. He put his toxic name in front of Kennedy's at the performance arts center, and the court demanded the removal of his toxic name which tarnished the reputation of Kennedy. Now another circus is unfolding with the Reflecting Pool - don't know wtf is happening there but is hilarious anyway. His tariffs had earlier also been deemed illegal by the court and needed to be refunded. Wonder how that is panning out together with the Epstein Files with the Iran War taking center stage. The distractions certainly did a great service to help Trump. Not that Iran does not want to end the war, as Trump is also hoping the distraction can continue till November.

Now, having said all the above, can you say that his war against Iran is a success? Of course, those that believe in Trump's fart will say it is succeeding. And who are those people? They are the sycophants sitting next to or acting like stand-up props behind Trump in the Oval Office and smelling his fart - people like Pete Hegseth, Howard Lutnik and Scott Bessent among many others.

Great people let their accomplishments speak for themselves. Bigoted and narcissistic morons have to resort to boasting to announce their limited achievements that never happened. The most hilarious is telling the world that the Nobel Peace Prize is his for the taking. If he cannot be awarded, he resorted to stealing it. Oh, please do not say he was given the Nobel Peace Prize by that equally shameless woman from Venezuela. It was all a comedy of errors on the part of the Nobel Peace Prize Committee. The Nobel Peace Prize Committee, like FIFA, have lost all credibility in the eyes of the world. Yet some morons are still supporting the actions of FIFA.

Anonymous

North America, Australia and New Zealand do not belong to the Whites, they should go back to their original country, which is Europe.

Among the less developed Native American Indians, the Australian Aborigines and the Pacific Islanders, the White men can easily sashay around them with guns to show their power. Those days are over. It is sad that the Native American Indians and the Australian Aborigines are left decimated after all the genocides by the Whites and cannot do anything today.

The Whites in North America, Australia and New Zealand keep telling the non-Whites to go home to their country. North America, Australia and New Zealand do not belong to the Whites as well. It is they who should also go back to their original country, which is Europe.

The British found that out that superiority is not a right after all after a few hundred years of colonization. The Whites tried to colonize China, but the Chinese were centuries more civilized than the White barbarians. A civilization, like China and Iran, does not fall that easily, unlike less developed societies that the Whites can dominate. In fact, China and India were the de facto strongest empires before the Whites rose to prominence with the onset of the Industrial Revolution. That Industrial Revolution was underwritten and fueled by the resources stolen from the colonized countries of Asia, Africa, South America and Middle East.

The war mongering Whites invented all the weapons of war, while the peaceful Asians, like China and India we left behind in weapons development and suffered the consequences. China suffered its century of humiliate all because it overlooked the necessity to prepare for war against the Whites and Japan. That anomaly is not going to be repeated again.


Anonymous

Hooray, VW got raped by India for tax evasion allegation

 

13 min on how India is stripping VW of US$2.8 billion under the allegation of evading taxes. '.....

Germany’s Volkswagen once aimed to turn India into a "second China market," investing around €2 billion to build local factories and roll out multiple vehicle models. Yet, after struggling for a full 25 years, not only has Volkswagen failed to turn a profit, but it now faces accusations from India of "deliberately" underreporting import duties—allegedly evading $1.4 billion in taxes. Even more intriguing is that while India pursued these back taxes and penalties, Volkswagen was simultaneously negotiating with Indian authorities while quietly selling off equity and dismantling key equipment to ship back to Germany.

 Notably, after successfully withdrawing some of its equipment, Volkswagen immediately announced plans to double down on the Chinese market, upgrading existing facilities to achieve an annual production capacity of 120,000 vehicles. So, what exactly did Volkswagen experience in India that ultimately forced it to shift its focus back to China?'

Germany is another silly country being raped by India for investing in India. Who is next? Keep your fingers crossed. There are many ways to skin a cat and the task is made easier by willing suckers who think they are smarter than the Indian snake charmers. Just keep pouring money into India, call it long term investment. No need to be responsible for long term investment as no one will be around to know who made the decision to throw OPM into the dark hole.