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Will China bail out Biden?

Viet

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Will China bail out Biden?
Prominent Chinese academic's warning that inflation might bankrupt the US government will be read carefully in Washington
By DAVID P. GOLDMANJULY 31, 2021

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“We are also facing inflationary pressures,” Jin said, “but because our production has resumed and the supply of products is sufficient, we can manage inflation pressures better. The United States is not so easy to manage. They need us to provide goods. Otherwise, you won’t be able buy anything with so much money, and eventually money will become gold coupons.”

Professor Jin’s warning on Friday at the “Observer” (guancha.cn) website that US inflation might lead to the bankruptcy of the US government will be read carefully in Washington – especially because Jin claims that China can help America out of its economic problems.

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These considerations help explain China’s recent demands that the United States remove tariffs and technology sanctions, and drop extradition proceedings against Huawei’s Chief Financial Officer, Jin said. “The reasons mentioned above have made us very confident now. If you have enough confidence, you can make your request very frankly,” Jin told The Observer.



China’s exports to the United States in 2021 stabilized well above the long-term trend line, at an annual rate of about $550 billion. The above chart shows Chinese data for exports to the US (these are more accurate than US data, because many US companies routed Chinese imports through other countries to avoid tariffs).

The data is seasonally adjusted using the standard TRAMO algorithm on the Eviews econometrics platform. Shown on the same graph (right hand scale) is China’s net foreign asset position, which rose by a trillion dollars during the past two years.


American factory capacity can’t begin to meet the demand created by about $5 trillion of consumer stimulus, and American consumers turned to China’s robust supply chain for consumer electronics and just about everything else.

The United States needs Chinese imports, and it also needs China to reinvest its export earnings in American capital markets, as I argued in Asia Times last month (“The Enduring Triumph of Chimerica,” June 15, 2021.


America’s dependence on Chinese imports is stunning. Americans spend about $2 trillion a year on consumer durables and $500 billion on apparel, so their imports from China account for roughly a fifth of total spending on these items.
Why in big letters?
Biden still keeps tariffs on $300 billion in imports from China. If he thinks the US desperately needs chinese imports he should have dropped it. But he doesn’t.
China certainly is at advantage. Coming out from pandemic while other including Vietnam are in lockdown. It’s a long game though. Once we come out, the US will buy from friends and allies.
 

comci

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Why in big letters?
Biden still keeps tariffs on $300 billion in imports from China. If he thinks the US desperately needs chinese imports he should have dropped it. But he doesn’t.
China certainly is at advantage. Coming out from pandemic while other including Vietnam are in lockdown. It’s a long game though. Once we come out, the US will buy from friends and allies.
But do USA friends and allies have the manufacturing capacity that China has to offer to the world? China is offering cheaper,faster and quality products unmatched by any country in the world. That is the reality whether you like it or not.

Your way of thinking ''Once we come out, the US will buy from friends and allies'' is naive/guillible/childish pov, dont you think?
Dont you know at this point in your life that good price/deals decide everything and not being allies or friends? Whats is the point buying from allies if they charge you 2x or more based on expensive western rate of production cost, labour intensity price, etc whereas others like China offers quality, mass production and speed delivery? Which country in asia has the manufacturing capacity of China?

You emphasize too much on on the corona factor. You make it looks like China is ascending because of the corona. Mind you corona is only speeding the race to the top in favour of China economic global ambition. Long before the corona factor, China was growing GDP unmatched by other countries in the world. People like you only look from 1 POV instead of analyzing many factors like data prior corona and current economic data.

I guess it is easier to speak your wish instead of putting some effort in analyzing economic data and discern what is important and what is not.
 

zectech

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The current economic system benefits China with the usa printing as many dollars and shipping those dollars to China for quality goods. If the rest of the globe accepts those mass printed dollars (QE, near unlimited borrowing, etc), then China has wealth.

The usa oligarchs have bitcoin as the replacement of the dollar if the dollar collapses, which about 70% of bitcoin is owned by anti-China crowd (libertarians, usa oligarchs, wall street investors, muricans, NATO allies). China holds no bitcoin. So it is to China's advantage that the current economic system stays, until something replaces bitcoin as the replacement of the dollar. Like the EURO or gold or silver or ethereum, etc.

Imagine Tesla stock being the dollar replacement, and currently 70% of outstanding shares are own by anti-China crowd, and nobody in China own Tesla stock. When Tesla stock becomes the sole global currency, you have a return to feudalism - Tesla stock owners are the new "Frankish lords", and Chinese become serfs overnight to Tesla stock owners, including CPC members become serfs.

usa reporting 22T usd GDP is great news for China. Let the usa report 25T usd as the GDP, with low inflation. This keeps away trumps return in 2025.

Washington wants chaos. Stability benefits China.

If Chinese manufacturing declines, China needs to supplement this with hundreds of billions in defense spending on new military equipment each year. And hide these numbers as consumer goods to the Chinese market. Let the usa invent supa powa GDP of 50T on paper, while real GDP is under 20T and let China hide increased defense spending.

Now chasing the dollar to save the dollar is not the only route for China. China needs self sufficiency in raw materials for the next century. If China needs no imports in raw materials and Made in China 2025 becomes a reality. Then China does not need to be part of bitcoin as the global currency. China starts over in global currency reserves - as dollars and bonds become worthless. However, China is safe with self sufficiency if China stockpiles a century worth of needed raw materials. China remains rich and there is no serfdom for the Chinese with a dollar replacement of bitcoin since then China needs no raw material imports.

China with a 100 years of raw materials in reserves (iron ore, copper) has a perfect closed economy, and can even export to get wealth.

Another option to this stockpiling, is to bail out biden (chasing to save the dollar), prevent a dollar collapse (via a bond market collapse or inflation). And then risk those investments with a hostile anti-China trump in 2025.

Each path is difficult and careful measured deliberation is needed.

Washington booby-traps paths that lead to Washingtons fall.

If Washington wants to nuke China, China has to plan to nuke Washington.

If Washington wants to turn CPC members and Chinese into serfs, then China has to have a plan to turn usa oligarchs and Americans into serfs of the Chinese.

If Washington booby-traps ways out of Washingtons plan to make Chinese serfs, then China has to booby-trap their plans to make it nearly impossible for usa oligarchs and Americans to not become the slaves of the Chinese.
 
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