𧡠Some fools have that faith in the divinity of America. They believe the USA, as the one and only superpower, has some kind of magical powers. They can just print any amount of dollars they want! And even when they can't, they can still issue any amount of bonds they want!
So they can borrow all the money they want. And between printing and borrowing, the US government can spend as much as they want, have as many wars and as many military bases and aircraft carriers as they want, buy everything they want. Hallelujah.
FREEDOM WITHOUT CONSEQUENCES.
But that's just NOT real, and can never be real. Maybe USA can live like that for a while, pretending they can do whatever they want, without consequences, but that's far from sustainable. Even the alleged god can never create something from nothing magically just like that.
Spend more money than you earn, a growing deficit. Print trillions of dollars, you cause inflation. The value of the dollar declines, gradually you lose the dollar hegemony.
Hike interest rates to curb inflation, you cause credit crisis, bank failures and recession. #Consequences
Because US can't print as many dollars as they want, they go for the second-best option; Borrow the deficit. Printing and borrowing, borrowing and printing, like there's no tomorrow. And brag about how rich and powerful the US is, exceptional, while the rest of the world is poor!
And don't mind servicing the debt, because the interests are so cheap. And you can always inflate your debt away (print $$ to pay the debt), if you have to, because all the debt is in dollars. What a privilege! Talking about spending, funding wars and living without consequences.
But Who Owns the US National Debt? 1. Federal Reserve, state and local governments 2. Foreign governments (Japan, China, else) 3. Mutual funds
The rest is owned by US banks and investors, pensions funds, insurance companies, and holders of savings bonds. thebalancemoney.com/who-owns-the-uβ¦
So when Fed sells the treasury bonds, to curb inflation #QuantitativeTightening, and top US creditors (Japan & China) do the same along with the other "allies" to support their own currencies, bond markets and economies hit by inflation, Who'll lend US? globaltimes.cn/page/202304/12β¦
The local US banks & investors of course. But without the Fed & foreign governments, the rest is just not enough. Relying on local money will drain liquidity from the system, cause a bigger credit crisis, bank failures and deeper recession. #Consequences bloomberg.com/news/articles/β¦
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𧡠Evergrande Implodes, But China Won't Collapse
π Here's The Truth
Evergrande has filed for bankruptcy but does this mean China's economy is about to collapse? China always had a real estate problem and instead of stimulating,
they are actually trying to ride the wave towards a stronger economy. While this is bad for the global economy in the short term, it's actually good for China long run. Here's what you must know!
The 3 red lines to rein in the indebted property-development: 1. Liabilities should not exceed 70% of assets (excluding advance proceeds from projects sold on contract) 2. Net debt should not be greater than 100% equity. 3. Money reserves must be at least 100% of short term debt.
𧡠Did Biden's CHIPS Act Fail?
Shocking Truth About TSMC Arizona
By @thecyrusjanssen
The TSMC Arizona project is one of the biggest FDI deals in United States history with Taiwan investing over $40 billion. It's all part of the $52 billion dollar CHIPS Act to bring Taiwan's
flagship company to the US, but there are a plethora of problems amounting the question the entire legitimacy of this project. In today's video we examine the top 5 biggest problems TSMC is currently facing and if this project will be a success.
US Chip Plans Hit Speed Bump With Key Jobs Taking Months to Fill
π Hires for chip firms take twice as long as peers, study finds
π Workforce woes risk stunting growth even as subsidies pour in bloomberg.com/news/articles/β¦
𧡠Chinaβs Winning The Real Economic War
πͺπ¨π³π Xiβs Masterplan Revealed
The real economic battle is in the war for commodities and China is winning it. From oil and gas to gold and grains, China is hoarding the world's commodities in their bid to compete with the US.
But the agenda goes deeper than that and we must understand China's moves to control the world's commodity supply!
According to the USDA China holds half of the worldβs wheat reserves and 70% of its corn. After five consecutive record crops, India now has one-tenth of global wheat stockpiles. The U.S. has 6% and 12% of global wheat and corn reserves, respectively. farrellymitchell.com/our-thinking/lβ¦
𧡠U.A.E. Says It Exited U.S.-Led Naval Force
Persian Gulf nation has expressed disappointment with American efforts to deter Iran wsj.com/articles/u-a-eβ¦
As Iran Seizes Tankers in Gulf, U.A.E. Pulls Back From U.S.-Led Maritime Force
π The United Arab Emirates announced it had stopped participating in the security group after Iran seized two tankers in the Persian Gulf recently. nytimes.com/2023/05/31/worβ¦
U.S. Pressured to Secure Persian Gulf After Iran Seizes Tankers
π The U.S. Navy steps up patrols after complaints from the United Arab Emirates wsj.com/articles/u-s-pβ¦
A cruise missile launched during a Russian barrage of Ukraine crossed into Poland last December then slammed into a patch of forest about 10 miles from a NATO training center, exposing challenges to defending the alliance's airspace. wsj.com/articles/russiβ¦
NATO Investigates How Russian and Ukrainian Drones Bypassed Europeβs Air Defense System
(March 31, 2022)
π Incidents involving drone operations have tested the allianceβs ability to monitor borders amid war threat wsj.com/articles/nato-β¦
A plane has crossed 6 NATO countries, triggered a swarm of jets before the pilot landed and vanished.
(16 June 2022)
Spotted by Hungarian and Romanian Air Forces flying through their airspace and over Poland, Slovakia and Serbia before landing in Bulgaria. thesun.co.uk/news/18904800/β¦
𧡠Saudi Arabia Just Changed The Game!
BRICS Expansion Coming πΈπ¦π₯³
Saudi Arabia is moving to join the #BRICS bank. This is a big development that threatens to accelerate #Dedollarization, especially across the emerging markets.
Coming just a few months before the BRICS summit, this could be a game changer that could see the Kingdom join the bloc as an official member. Here's what you must know!
Saudi Arabia in talks to join China-based βBRICS bankβ
π Membership would strengthen Riyadhβs bonds with the BRICS countries at a time when Saudi Arabia, the worldβs largest crude oil exporter, is also pursuing closer relations with China. ft.com/content/45abe5β¦