US should give up on "decoupling" from China - Goldie.

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neverfail
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US should give up on "decoupling" from China - Goldie.

Post by neverfail » Sun Apr 16, 2023 6:48 pm

China’s Asia export boom bedevils US friend-shoring

China’s ASEAN shipments up 34% year-on-year in March in clear sign ‘decoupling’ with developing Asia simply isn’t happening

https://asiatimes.com/2023/04/chinas-as ... d-shoring/

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lzzrdgrrl
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Re: US should give up on "decoupling" from China - Goldie.

Post by lzzrdgrrl » Sun Apr 16, 2023 7:00 pm

We don't have the industrial base to allow for decoupling..... given that we're all in for a FIRE economy....'>......
I'm not a midwit, I'm a demiderp. Says so on the certificate which I just bought.....'>....

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neverfail
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Re: US should give up on "decoupling" from China - Goldie.

Post by neverfail » Mon Apr 17, 2023 3:33 am

I have long believed that America's "rust belt" former manufacturing districts are the consequence of a strong US dollar pricing a whole range of products out of international markets. The USA has been able to belance its current account defecit with surplusses in its capital account. Especially in attracting foreign central banks to lodge their trade surplusses in the form of purchases of US government debt. It has kept the dollar purchasing power abroad strong.

The US would have a cheaper dollar if foreign governments and others lost confidence in the dollar. The US doollar deflated in 4XS terms would initially mean hardship fior all but in the long run it would make production in the US more cost-effective botgh for import substitutes for sale on the home market and for exporting a range of goods that are currently cost non-competitive in overseas markets.

The FIRE economy is the replacement for the defunct manufacturing economy of yore.

The US cannot have it both ways (as Biden and others would ideally like it.)

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