3 ms·

It's not the key source of the problem, but the "Trade War" provides a useful political foil to avert responsibility and perhaps instute harsh remedies.

• duxup 7y ago
  I wonder how that plays if the long rumored debt problems actually create some sort of financial crisis. The US as a foil works, but Chinese internal propaganda also talks about their strength and independence... if there is a serious crisis that hits the general populations, it's going to naturally raise questions that "If Xi and Co. made us so strong ... how is it US sanctions alone are to blame for this?" Obviously there are options there but just from the outside looking in there seems to be a lot of pseudo "trust in Xi, he makes us strong" propaganda that would suddenly become problematic.
  • lambdasquirrel 7y ago
    We should frankly be terrified the world over. You could well say the developed world all over has been investment-driven since the GFC. At least China's errors are visible. The world needed an orderly deleveraging. Instead we get trade wars and nationalism.
    • duxup 7y ago
      >At least China's errors are visible. I'm not sure I would describe it that way. There's a real lack of visibility in China I think.
      • lambdasquirrel 7y ago
        Those ghost cities are pretty visible. When negative interest rates enable a company like Color, and then Color goes away, there's little to show for it.
    • Supermancho 7y ago
      > orderly deleveraging. Instead we get trade wars and nationalism. How else are you going to politically sell deleveraging? Nationalism ("made in america" stickers) weren't effective in the past. I do not believe it's going to be effective in steering capitalism now.
      • lambdasquirrel 7y ago
        "Made in America" didn't work. But the trade war seems to be "working" as far as marketing goes. That all said, there was some news the other day that most of the farm bailout has gone to big agricultural firms, so there's that...