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Old 08-09-2018, 02:08 PM
Danny B Danny B is offline
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,326
No people = no economy

The trade war is bound to backfire on almost everybody.
"The German car manufacturer BMW actually produced 1.98 million passenger cars and light trucks built in the United States and were exported from there in the USA – not Germany. If we look at the dollar value of BMW exports from the USA, this accounted for $57.04 billion of U.S. international trade. BMW has actually become the largest manufacturer component that is being produced in the United States – not Germany."
"Are the BMWs exported from the USA German or American trade?"
"Germany is using an old world mercantilist philosophy and assumes that an export-driven economy is THE number one objective."
" We all cannot have trade surpluses. Someone has to have a trade deficit. This is their focus whereby I and looking at the structured design. I am writing that for China to become the Financial Capital of the World, they MUST abandon the Export Model of Germany and shift to the Domestic Model"
https://www.armstrongeconomics.com/i...trade-surplus/

The Chinese workforce is declining.
"The country's working age population fell by 2.44 million to 919.54 million in 2013, marking the second consecutive year of decline. ,,,, down 1.6 percentage points from the previous year.
China Must Grow Its Shrinking Workforce to Keep Up - Bloomberg
https://www.bloomberg.com/.../china-...rce-to-keep-up
So, China has a rapidly shrinking workforce and a rapidly rising debt load.
China has a bigger problem than the trade war ? a 'mountain of debt' - RN - ABC News (Australian Broadcasting Corporation)
ALL the old models are worthless for a shrinking population. With 95 million Americans not in the labor force, the FED has to print the money that they are NOT earning just to uphold the price of assets that they are NOT buying and, the wealth that they are NOT creating.
The strain on the sovereign bond market will eventually be too much.

8/09 Turkish banks scramble to stave off debt crisis as lira plummets – WSJ
8/08 20% interest rates, crashing capital markets: Sanctions destabilize Turkey – CNBC

That will be a bonfire before long.
8/09 Italy’s economy minister sees lower growth, higher deficit next year – Reuters
Ah yes BUT, the ECB doesn't allow higher deficits.

Here is a good article about the worldwide attempts to uphold asset values after the consuming population has been unable to do so.
https://thistimeitisdifferent.com/ec...tals-july-2018
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