- cross-posted to:
- worldnews@lemmy.ml
- cross-posted to:
- worldnews@lemmy.ml
China sold a record $53.3 billion of US Treasury and agency bonds in the first quarter of 2024, likely due to escalating trade tensions and a desire to diversify its assets. This move is raising concerns as China is a major holder of US debt and its actions could impact the US economy. Additionally, China has been increasing its gold reserves, potentially as a way to mitigate sanctions risk.
The US is ruled by the logic of finance capital because it is ruled by finance capitalists. Buy low, sell high, and let someone else get stuck holding the bag. The actual concerns of production or running a society are irrelevant because long before production breaks down the current owners have dumped their stake for a comfy profit and bought some other industry.
That really puts it in perspective. That’s why their viewpoint and the narratives they push about the “booming economy” are so divorced from reality. They don’t live in the same reality as us.
Agreed. If you look at what’s left of the US industrial capitalist class - Musk, Tim Cook, etc., they’re still very much trying to keep the supply lines open and relationships good. But such is America now that even the industrial capitalists can’t compete against the alliance of the finance capitalists and the MIC.
I am not an expert here but naively finance seems like it would be the most vulnerable to a shrinking economy. That’s why I’m thinking this makes no sense because if you maintain good relations maybe you can keep the party going for another decade or two before you have to deal with reality.
Maybe it’s more vulnerable but by the time that’s a problem the profit will already be somewhere else and then whoever gets the short end of the stick will get a taxpayer bailout as a consolation prize. They’re not doing economics, they’re gambling with other people’s money.