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China's economy is currently being described as a "deflationary spiral" as seen in Japan i
Posted on 1/9/25 at 7:27 am
Posted on 1/9/25 at 7:27 am
LINK
quote:
In a sudden collapse, 30-year interest rates are now LOWER in China than Japan.
quote:
Not even the 2008 Financial Crisis saw Japanese yields rise above Chinese yields. China is now facing "Japanification" of its economy
quote:
Investors in China’s $11 trillion government bond market have never been so pessimistic about the world’s 2nd largest economy. As a result, we are now seeing the largest gap in US/Chinese bond yields in HISTORY. China's $11 TRILLION bond market is flashing warning signs.
Posted on 1/9/25 at 7:40 am to molsusports
Its strange but the parallels to Japan are pretty obvious, the massive trade with the USA really started a massive run up for both countries. Albeit Japan was high end and China low end. The end result was the same.
Now China demographics have slowed big time as the middle class grew and the entire population became more educated the birth rate fell through the floor. Not only are they well below replacement rate, like Japan they basically have no immigration to help them get out of it.
China also like Japan did not let big companies fail because they are propped up and ran by the state. They will probably need to endure some recession pains to not see the same outcome as Japan
Now China demographics have slowed big time as the middle class grew and the entire population became more educated the birth rate fell through the floor. Not only are they well below replacement rate, like Japan they basically have no immigration to help them get out of it.
China also like Japan did not let big companies fail because they are propped up and ran by the state. They will probably need to endure some recession pains to not see the same outcome as Japan
This post was edited on 1/9/25 at 7:41 am
Posted on 1/9/25 at 9:43 am to StonewallJack
quote:
War is coming!
I hope
I’m down to get drafted or whatever
Posted on 1/9/25 at 10:03 am to el Gaucho
quote:
I hope
I’m down to get drafted or whatever
We'll put you on the front lines
Posted on 1/9/25 at 10:26 am to StonewallJack
Y’all don’t realize that the concept of America doesn’t work unless we have a war to fight. That’s what manifest destiny means
Plus when we gotta throw everything at the enemy they cut food stamps and shite
Plus when we gotta throw everything at the enemy they cut food stamps and shite
This post was edited on 1/10/25 at 6:07 am
Posted on 1/9/25 at 12:05 pm to UltimaParadox
quote:
Its strange but the parallels to Japan are pretty obvious, the massive trade with the USA really started a massive run up for both countries. Albeit Japan was high end and China low end. The end result was the same.
Now China demographics have slowed big time as the middle class grew and the entire population became more educated the birth rate fell through the floor. Not only are they well below replacement rate, like Japan they basically have no immigration to help them get out of it.
China also like Japan did not let big companies fail because they are propped up and ran by the state. They will probably need to endure some recession pains to not see the same outcome as Japan
So what's the expectation? If China's economy crashes, will Chinese manufacturers simply close up shop or will the quickly jump to the USD? If the latter, does the Chinese government see that negatively (a defection, of sorts) and move to stop it or do they just look the other way?
Posted on 1/9/25 at 1:20 pm to UltimaParadox
quote:
Not only are they well below replacement rate, like Japan they basically have no immigration to help them get out of it.
The costs of racism
Posted on 1/9/25 at 1:30 pm to SlowFlowPro
Safety and birth rates crumble and your country eventually dies
or
Crime and replacement level birth rate
2 shitty options
or
Crime and replacement level birth rate
2 shitty options
Posted on 1/9/25 at 2:05 pm to Bard
quote:
So what's the expectation? If China's economy crashes, will Chinese manufacturers simply close up shop or will the quickly jump to the USD? If the latter, does the Chinese government see that negatively (a defection, of sorts) and move to stop it or do they just look the other way?
Nobody knows since China basically runs a psuedo communist state, basically the government will intervene basically in everything if it is in their best interest, and way more than Japan.
However, if you just look at companies and how long it takes for things to get really bad. Then expand that to a country the size of China, they have a lot of levers to pull before anything "truly crashes".
Hell Japan's debt to GDP makes the USA look fiscally conservative.
Would not shock to see China go into a recession, but like the US they can do a lot of things to soften the blow. Probably even more so with control over most of the companies.
Posted on 1/11/25 at 1:04 pm to UltimaParadox
China has been exerting artificial influence on it’s economy for many years and it has only delayed the inevitable. They do not have or expect a replacement workforce to sustain cheap & flexible manufacturing. The government of China limited where Chinese investors could invest which led to the massive bubble and crash of its real estate.
The U.S. needs to cultivate an advantageous relationship with Mexico and Canada to help grow the manufacturing sectors in our hemisphere. Infrastructure between the three countries needs to be vastly improved. Rail, road and pipeline. Taiwan is already offshoring some of its chip manufacturing to the U.S. because we are one of the few places that has this capability. Contrary to what many people think - Mexico has a highly skilled workforce with capacity to produce lower and mid range products. Canada has energy and a highly educated workforce.
We have to replace much of what will be lost as China’s manufacturing dwindles in capacity. That’s a 20-30 year lift that has already begun to some degree, but we (US and Canada) have been hamstrung by incompetent administrations and government bureaucracy.
The U.S. needs to cultivate an advantageous relationship with Mexico and Canada to help grow the manufacturing sectors in our hemisphere. Infrastructure between the three countries needs to be vastly improved. Rail, road and pipeline. Taiwan is already offshoring some of its chip manufacturing to the U.S. because we are one of the few places that has this capability. Contrary to what many people think - Mexico has a highly skilled workforce with capacity to produce lower and mid range products. Canada has energy and a highly educated workforce.
We have to replace much of what will be lost as China’s manufacturing dwindles in capacity. That’s a 20-30 year lift that has already begun to some degree, but we (US and Canada) have been hamstrung by incompetent administrations and government bureaucracy.
This post was edited on 1/11/25 at 1:05 pm
Posted on 1/11/25 at 1:23 pm to molsusports
Sell puts and call together . Make fortune
Posted on 1/13/25 at 11:25 am to longtooth
This is a good take.
Nearshoring is critical to America’s continuance as the dominant world power.
Nearshoring is critical to America’s continuance as the dominant world power.
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