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47 sats \ 2 replies \ @Solomonsatoshi 22 Sep \ parent \ on: America's Financial Tightrope: Record Debt, Low Savings, and State Fiscal Woes econ
The US is addicted to debt. China enjoys ever larger trade surpluses and dominated global supply chains, commodity markets. Naturally they also want to control trade routes and institutional structures like banking and global governance. The Wests hegemony is under direct challenge and The West appears to in decay mode. Western governments are dictated to by crony capital and military contractors. Chinese government in contrast directs capital and military in a unified strategic power projection. Who wins?
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0 sats \ 1 reply \ @TomK OP 23 Sep
China has clearly a larger debt burden. And IMO the real estate desaster shows that partial central planning doesn't work. We have to see where in the world free market capitalism, or elements of it, will resurge
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127 sats \ 0 replies \ @Solomonsatoshi 23 Sep
China enjoys a trade surplus with almost every nation on earth. China thus enjoys huge surplus funds- in fact what to do with those funds IS a problem- they don't want to put more into US Treasuries. They are investing hugely in infrastructure - globally- belt and road- Chinese controlled trade route from Europe to China. Real estate in China has had some excesses but who had been hit with the bulk of the costs? Greedy naive western bankers- https://fortune.com/2024/02/08/evergrande-liquidation-99-percent-haircut-hedge-funds/ Never have free markets alone achieved lasting wealth- there has always been a substantial factor of good governance and strategy aligned with business interests and the military to achieve resource hegemony and trade dominance. Today China already enjoys trade dominance globally- few if any nations can afford not to trade with China or lose out substantially.
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