So this didn't happen organically in your opinion. This is being "steered" by someone? What is particulary horrible is how they just shipped all the manufacturing jobs there in the 90s/2000s and destr...
Yes, in my opinion it didn't happen organically.
In the 2000s China was integrated tightly and the eurodollar bloomed.
China became dollar shock absorber & reserve sink.
Offshoring + overcapacity = disinflation buffer → more room for USD debt growth.
If they kept most of the jobs in the US, they wouldn't be able to QE + ZIRP, otherwise inflation would skyrocket.
From Lyn Alden's latest newsletter:
- "....This is because nearly 90% of stocks are held by the top 10% of society, and that same 10% of society performs nearly 50% of all consumer spending."
I knew that 90% of stocks are held by the top 10%, but didn't know that the top 10% performs 50% of all consumer spending.
This is how you get to QE infinity without having record-high inflation - almost everyone is broke because the manufacturing jobs are in China.
In the 2000s China was integrated tightly and the eurodollar bloomed.
China became dollar shock absorber & reserve sink.
Offshoring + overcapacity = disinflation buffer → more room for USD debt growth.
If they kept most of the jobs in the US, they wouldn't be able to QE + ZIRP, otherwise inflation would skyrocket.
From Lyn Alden's latest newsletter:
- "....This is because nearly 90% of stocks are held by the top 10% of society, and that same 10% of society performs nearly 50% of all consumer spending."
I knew that 90% of stocks are held by the top 10%, but didn't know that the top 10% performs 50% of all consumer spending.
This is how you get to QE infinity without having record-high inflation - almost everyone is broke because the manufacturing jobs are in China.
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