I agree that there is reason for concern.
My own country, the United States, sold its own people down the river in 1913 by setting up the Federal Reserve, not to mention the IRS, both of which are unconstitutional, and neither of which has the best interests of We the People even on their radar.
They exist to profit at our expense.
The Federal Reserve prints our money, at interest, manipulates our economy, usually poorly, and always does so self-servingly. They make their 1% on every dollar printed regardless of what happens to the rest of us. Schmucks.
Since president Nixon took the US dollar off the gold standard, in 1971, wages are no longer tied to corporate profits, real wages have lagged far behind real inflation, and each successive administration prints more and more money - backed by nothing but thin air - making an economic crash likely, and even inevitable.
The only real question is when it will happen, how big it will be, and whether - which is likely - we will take the rest of the world's economies down with us.
The problem with China is many-fold. The problem, from a Western perspective, is that Western rules don't apply in China.
In Western business, rules are meant to be adhered to, promises are meant to be honored, and guarantees mean precisely that - they are guaranteed.
In China, if you can profit from screwing someone over in business, that is simply good business, and there are few or no consequences. Rules be damned.
My mom ran into that many times, as a realtor in the L.A. area, when Chinese investors would walk out of a deal at the last minute, and leave her holding the bag. Not cool.
The worst case scenario I foresee, which unfortunately I wouldn't doubt, is that China does what it is supposed to for a period of time, and then floods the market with the currencies in question, crashing their markets, and allowing them to swoop in and snatch up properties from desperate sellers for a fraction of their worth.
Look at their history. They have done this consistently without having to print money in the past.
Your concerns are very real.
I've mentioned before that, as a teen, I wrote a report in school on why our real concern in the U.S. was not (then) the U.S.S.R., but China. Seems I was pretty prescient as a kid.
Yeah. :/
Imagine if we did not have the Internet yet! Yikes!!
Will we in the good old USofA be spared a crash... I would like to hope so..
But we are on China. Where Japan responded to westernism with busy-as-a-bee business, China is flexing some muscle. The thing we need to remember is that both India and Japan have a long history of not liking China. So if US-China relations falter.. well that would be a conundrum. Sure, China and the middle east are becoming chummy...
yeah @machnbirdsparo
I think emerging markets will suffer way more than US. China is having great time but their society is aging super fast. So in a long run I cannot see China as a economic leader. US is and will be. That's my guess anyway.
ps. thx for resteeming my post :)
Yours
Piotr
A lot of my confidence in the US is because of the global culture. We can call upon things that many nations cannot. Unfortunately, we always wait until after tragedy- here's to surviving.
important stuff :)
I'm hoping for the best, but we've had idiots at the financial helm in Washington for a long time now, so I'm also preparing as best I can.
Defintetly it's a real circus right now in your administration @crescendoofpeace :)
circus :)
Sad but true.
Thanks for this amazing reply. I totally appreciate your time and effort @crescendoofpeace
"making an economic crash likely, and even inevitable"
I completly agree with you. We can already observe crash in some emerging markets and I think it's just the beginning.
Somehow I believe, that even if US will suffer - many other countries will suffer so much more.
"In China, if you can profit from screwing someone over in business, that is simply good business, and there are few or no consequences. Rules be damned.ę
That's also how I see those people.
Again thx for sharing your view. Appreciate it a lot.
Yours
Piotr
I would like to clarify that I'm not painting all Chinese people with the same brush . . . I grew up with a lot of Chinese people who would never do business in such a manner, but a majority of those I knew were raised in California, not in China.
I have since met a number of Chinese people, born and raised in China, who are not cut from that cloth, and whom I would have no trouble trusting. Which, to a large extent, explains why they are no longer in China.
But the Chinese government I don't trust as far as I could throw the Great Wall, and the majority of Chinese businesses are right there with them . . . not trustworthy.
They'll make an agreement and break it in the same breath.
Steemit definitely need more people like you :)I love to see how responsive you are @crescendoofpeace
"In China, if you can profit from screwing someone over in business, that is simply good business, and there are few or no consequences."
I actually believe that you're right. Im living surrounded by Chinese nationals on a daily basis and I can tell that they would not hesitate (most of the time) to do what you just mentioned. Their "moral compass" is quite different from ours.
"They'll make an agreement and break it in the same breath." -> I have exactly same impression. I really don't understand how our government can trust them that much and outsource printing our own currency. Just surprissed.
Yours
Piotr
It's difficult for the Western mind to comprehend just how different the Eastern mind can be, and how little we have in common in some areas.
We want to assume commonality of purpose, but sometimes, it simply isn't true, and just makes us naive.
interesting... nice comment... And so true about China and their unethical business practices as we saw @dlive and @lino hustle Steemit to build their project so they could jump ship.
Hi @dynamicrypto
Would you mind sharing more info about china unethical business practives with @dlive and @lino? I've never heard about that issue.
Yours
Piotr
HEREIf you go to @dlive account 3 days ago they posted saying Goodbye Steemit and hello Lino offering all Steemit users 100 Lino coins to join them as they are taking our content with them.... Very unethical in my opinion, in china as you posted it is considered good business... :O @meno wrote it up best
Interesting, I'm interested in learning more about it. I'll check out the post you referenced below.
Thanks for your interest and for commenting :)
You're welcome!
Very informative and interesting reply I also found myself thinking the same thoughts as a child. Maybe younger fresher, more enthusiastic minds should be running things. Most citizens by the time they are middle age are jaded and half given up on the rest of the population they just want to take a prize and run and hide somewhere.
Yeah, I have my days when running and hiding sounds like a viable alternative. ;-)
A lot depends on the kids, but some kids are just born observers, and we should listen to them. They have a lot to offer.
@crescendoofpeace. You are right about the Fed and the U S government. To stay in power the government must spend more than it receives in tax receipts. To do that they borrow the difference from the Fed. They give the fed promissory notes called Treasury Bonds with a 3% interest rate. This represents the money they borrow from the Fed. As for the Fed, they just print the money that the government wants to borrow. Imagine if you could just print money and lend it out 3% interest! Parties all round.
Sounds wonerful right? Everyone gets something for nothing.
Not so fast.... The Fed has decided that it is now so rich, it doesn’t need any more 3% bonds. It simply does not know what to do with the money coming in the door. They call it a “big Balance Sheet”. They want to shrink it. So the Fed has decided it will lend a little less to the US government. Every month as $500 billion of US government bonds mature, they will only reinvest $480 billion back into new Treasury Bonds.
This is great for the Fed (plenty of dosh to spend on dolly-bird secretaries with PHDs in economics).
However, it is very bad for the US Government. If the Fed won’t lend them money, who will? Not me. I’m not locking my money up for 30 years in a bankrupt government.
No doubt the Chinese will oblige - that’s assuming they don’t decide to use their $3 trillion stash of Treasury Bonds as the final weapon mass destruction in the Trump initiated trade war.
As for China weaponising its reserves of US T-bonds, I think they are smarter than that. Turkeys don’t vote for Christmas (unless they are in the UK.)