Another brilliant feedback @worldfinances
Indeed it is all about power. Just like you said.
few people had 30% of all the world's net worth
So few people had 30% but noone had debt, right? And now few people have 90% of it and everyone around is in debt. Is that right?
ps.
Thank you for sharing your view on that particular topic with me. Appreciate it a lot.
We're clearly quite on the same page with judgement of current situation and future progress.
Yours, Piotr
Right. Debt is a way to keep majority of people on their knees and have them in control. It has always been like that. That's why China is keeping big portion of USA debt, so they can release it if USA does not listen to them. If that happens, US dollar loses value big time.
Hidden inflation is showing up in products we buy. They are getting smaller and smaller, but prices stay the same. But this is just one case. There are many...
Dear @worldfinances
Isn't situation with China and US like a two sided sword? If US dollar loses value then China biggest customer (US) would be in trouble. And also buying power would decrease.
EU is obviously importing loads of goods from China, but it's still not enough to replace demand from US.
At the same time growth of Chinese economy has been all about construction. Property market has been an engine for all that growth for past few years. And amount of ghost towns being build is only proving that this market is dead already and it's the biggest property market bubble in history of mankind (even prices in 2008 were nothing comparing to current bubble in China).
So it's not like China can do much. Especially if you add growing political unrest and mass arrests of practicioners of falun gong. China is facing tons of challenges and best times for them are already over. Wouldn't you agree?
So now the real question is: if China will enter recession (which may happen) and perhaps property bubble will burst - then how huge of an impact can it have on europe and US. This I would love to understand and be able to "partly predict".
Any view on that issue_
If China does not produce any more (like some politicians are saying) "let's make stuff at home" ... and I say "please do it already". Than you will see how much Apple phone (or almost any electronic device) really costs (around 10k USD for phone). To have big mouth is really easy, but to do that is like shooting yourself in the foot (or worse).
China can always find buyers. But if USA gets off the trading deal, China has to do so much more in Africa, EU and South America. They are making big trading way between China and Europe (One belt one road). And US wants to cut that trading wave with their military in Iran. But I think that will be almost impossible.
From my point of view, US is in much bigger problem as China. Because China is big, fast, cheap and reliable producing machine. US producing is extremely low, but they have the biggest banking cartels. China has challenges, but not as big as US has. If let's say....world would cancel working and trading with China, that would be devastating for them. But on the other hand, every country would have to find new way to produce HQ things cheaply (or quickly find the cheap and reliable producer nearby - just to get through the crisis). After that countries would have to get a deal about the new trading ways and producing and all these stuff.
Mark my words: Next recession is not going to be for one country or only for Europe or US... Just like recent one, this one will swipe the world, but a lot harder than in 2008. There will be lot of dead people.
My latest blog: https://steemit.com/busy/@worldfinances/bubble-of-debt-largest-we-have-ever-seen-in-the-history-of-the-world
PS: when you will have time you can listen to Greg Manarinno on X22 report.
I will definetly mark your words @worldfinances
Thank you for this amazing feedback.
Yours, Piotr