The China Syndrome

Originally posted by DavoMagic ↑

I think China is smarter than many on the outside think. I think they understand to an extent there is to a degree a stretching rubber band and the more it stretches eventually it will break. I think China is smart enough to let go of the rubber band before it breaks so they miss any recoiling whiplash action from the band!!

If others stop buying the bond market then obviously substitutes for funds have to take place. This is obvious in terms of substitute unless someone wants to do a substitute paradigm reset and create a war or alternative disruption. It then comes down to control. Where do they get substitute funds from, do they tax the Bill Gates of the world, do they have any system-d options??

What this means is assets become cheaper to buy from those with real money and remember the Chinese are very malleable in terms of market interaction, they are not stupid enough to look at things in nation block logic, rather they understand the strength of their network and relative stakeholders to help them maintain strength. To put it simply, unlike USA, China is not relying on Bill Gates and or Jeff Bezos for strength and sustainability so China knows they are far more robust while other countries might face a crisis from time to time!

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morning all,

"I think China is smarter than many on the outside think."

maybe, maybe not.

much of the world talks of China and it's power and what it means for the globe - and, places like the USA.

Many of us think that China just needs the USA to buy it's stuff ---- well,

maybe, just maybe - we have got it wrong.

what would actually happen if China had to stand alone in the world?

would it have a problem? - well, it would have some issues ---

a. yes, it would need some resources

b. yes, it would need to sell some things to pay for those resources

but, - that's about it --

lets get it straight here --- China does not 'depend' on the US for selling things

the vast bulk of Chinese manufacturing is used --- inside China --

the rest of it is a bit of a sideshow - which helps pay for the iron and coal etc..

Where the immense power lies is that --

we, the West would be thoroughly buggered without China - at least until someone took up the slack

try this ------------- remove all chinese made goods off the shelves of Australia and the USA -

the result would be --------------- massive shortages -- and prices that would literally go through the roof -

'even if supply were immediately replaced from somewhere else' --

China just kills it on price

Our inflation would just go stratospheric.

China has the asset that one just cannot go to the shop and purchase ------------ that asset is

2 Billion people who buy stuff - the internal economy

nothing else on earth can step in and do that gig