American Economics Thread

Tam

Brigadier
Registered Member
And then you look at the amount of bankruptcies in the USA both big and small

Please, Log in or Register to view URLs content!

So either the USA pours money into these companies to keep them alive and not give enough money for the people to live on (to which they are going to riot so bad that HK will look like a decency memory) or give enough money for people to live on but allow these companies to die (to which they will be no more jobs and hence UBI is going to be necessary for the country to function. Talk about being between a rock and a hard place


Ray Dalio already talking about the US entering a Lost Decade such as Japan's. They both have the same commonality --- massive QE, leaving tons of zombie companies afloat that are non productive and cannot pay their loans.



Note that the Fed is going to buy stocks.

Please, Log in or Register to view URLs content!

No longer Free to Fail, which is the essential ingredient for a Free Economy.
 

AssassinsMace

Lieutenant General
There's going to be two manufacturing bases for US companies. One for home and one abroad to sell to the world. If they just care about what they sell at home, no one in rest of the world is going to be buying their products at those prices. Because of Trump, this is what's going to happen. What they sell to the world will be even more important because of the added expensive cost from domestic production which means lower profit margins and they will need their foreign manufacturing base where higher profit margins there will off-set the costs at home. Then you have to think about when foreign sales make more money than at home, that US corporation might not be American anymore to avoid the whims of American politicians. The threat of whatever they see to their manufacturing is a result of domestic politics at home. If there's a threat to foreign supply, it's because of irresponsible domestic policies. There would no threat from China to deny the US rare earths if they weren't attacking China's economy first. What happens overseas hardly has threaten the supply chain. And then when all is said and done, it isn't the US that's coming out on top. Then when Americans have been proven wrong again when they see China hasn't collapse because they've denied Americans being in their presence and their economy doing well, their greed will want that taste of China again.
 

Chish

Junior Member
Registered Member
Their market valuation is skyrocketing because people can see they are succeeding.

Apple's revenue is $59 billion a quarter.

China's biggest tech company, Tencent, makes $16 billion a quarter.

People need to let go of the idea that somehow acknowledging the reality of US strength in economics is "trolling" or "anti-China". It doesn't help a weak fighter to have him convinced he can beat a stronger fighter. If you are truly on the side of the weak fighter, you will want him to know he is weak. It's pro-China to advocate China acknowledges reality and makes policy accordingly.
By your logic, the US is sucessful and has a stronger economy and China is not because US makes more mony. Since the US is the largest economy with the biggest revenue, this mean the rest of the world economies failed? If US is so strong and sucessful, why the massive debts, tariffs, trade disputes with almost every major countries, massive budget and trade deficits,etc etc etc. Many smaller econmies the like of Singapore, Korea, Isreal, Luxembourg, the territories of Hong Kong and Taiwan would not agreed with your assessment let alone China.
 

hullopilllw

Junior Member
Registered Member
Their market valuation is skyrocketing because people can see they are succeeding.

Apple's revenue is $59 billion a quarter.

China's biggest tech company, Tencent, makes $16 billion a quarter.

People need to let go of the idea that somehow acknowledging the reality of US strength in economics is "trolling" or "anti-China". It doesn't help a weak fighter to have him convinced he can beat a stronger fighter. If you are truly on the side of the weak fighter, you will want him to know he is weak. It's pro-China to advocate China acknowledges reality and makes policy accordingly.

market valuation that can shrink 1/3 within 1 week ? Come on, high P/E ratio is not really an accurate gauge.

On the other hand...

Please, Log in or Register to view URLs content!
 

gadgetcool5

Senior Member
Registered Member
US retail sales are now HIGHER than January and February, before the pandemic in the US.

(Meanwhile Chinese retail sales are still 1.1% lower than last July).

Tell me how China recovered better from the pandemic again? I'm sure this is great news for "recirculation"

Please, Log in or Register to view URLs content!
 

manqiangrexue

Brigadier
US retail sales are now HIGHER than January and February, before the pandemic in the US.

(Meanwhile Chinese retail sales are still 1.1% lower than last July).

Tell me how China recovered better from the pandemic again? I'm sure this is great news for "recirculation"

Please, Log in or Register to view URLs content!
Uh, China recovered better because its GDP is growing at 3.2% while America's is down 33% and gonna be down again for Q3 (compared to Q3 2019 but not if compared to Q2 2020, which some US politicians want to change to because it's looking just too ugly). You know, GDP is an all-inclusive number which encompasses everything from all the PMIs, employment, trade, etc... so we compare that instead of cherry-picking data like retail sales only or whatever seems to be convenient in making a false point. That's why countries are economically listed based on GDP, not retail sales or whatever parameter you want to change it to next month to look like the US is recovering better than China.
 
Top