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Alternative Lives R Available's avatar

Good post. Lots to comment on, but I'll keep it short.

China plays a long game, America is always for the short term quick buck. The massive American everything-bubble is about to blow and will destroy the US economy and Dollar, drag down Britain, damage Europe large import market, and so damage China's export trade for a decade.

My guess is that China is quietly pumping in massive liquidity to brace the Chinese economy to weather the coming storm. If it works, China will survive intact as its political and economic competition destroys itself, and emerge in dominance.

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Kelly H's avatar

You mentioned how 'the west is trying to drain liquidity and reduce inflation'. For the US's role in this, would you help me understand how the US massive tariff-raising (inflationary), pressure to reduce interest rates (inflationary) & efforts to debase the USD (including through gold purchases + pushes into CBDC/USDT/BTC) plays out as ' liquidity draining and inflation cooling'. I really want to understand this because it is quite complex.

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Pat's avatar

Complicated!!! Sounds like the US is the heart, pumping the mighty dollar, and China is presently the lungs, feeding the oxygen.

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Laurence Seton 🇨🇦's avatar

From what I understand, the leverage that's being used in the private credit market is insane.

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Alasdair Thompson's avatar

Informative

I’ve always been interested in how different the approaches to monetary policy are in China and Japan compared to the rest of the world.

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