Some folks say that the financial crisis happening in the U.S. is an opportunity for us.
That’s just historical momentum at work—the belief that China could rise rapidly after the 2008 financial crisis.
If a financial crisis had hit the U.S. two years ago, there would have been a chance to benefit from it.
But now there’s nothing. China’s real estate debt, local government debt, cutthroat competition in manufacturing, and household consumption are all already under tremendous strain.
If another financial crisis hits abroad, it’ll be a disaster.
Two years ago, we still had some capacity to respond. Now there’s little chance of weathering a crisis while still ensuring a positive return.
It’s more likely to be the last straw that breaks the camel’s back. Instead of fantasizing about a financial crisis in the U.S. creating opportunities in China, we should focus more on how to handle an unexpected crisis and minimize our own losses.
After all, compared with 2008, China’s economy is now much more deeply integrated into international trade. The more you depend on international trade, the harder you get hurt.
That’s an objective fact. We may feel that we’ve held international trade hostage with our supply chains, but the reverse is also true: international trade has us hostage too.
$BTC $ETH #btc #eth
That’s just historical momentum at work—the belief that China could rise rapidly after the 2008 financial crisis.
If a financial crisis had hit the U.S. two years ago, there would have been a chance to benefit from it.
But now there’s nothing. China’s real estate debt, local government debt, cutthroat competition in manufacturing, and household consumption are all already under tremendous strain.
If another financial crisis hits abroad, it’ll be a disaster.
Two years ago, we still had some capacity to respond. Now there’s little chance of weathering a crisis while still ensuring a positive return.
It’s more likely to be the last straw that breaks the camel’s back. Instead of fantasizing about a financial crisis in the U.S. creating opportunities in China, we should focus more on how to handle an unexpected crisis and minimize our own losses.
After all, compared with 2008, China’s economy is now much more deeply integrated into international trade. The more you depend on international trade, the harder you get hurt.
That’s an objective fact. We may feel that we’ve held international trade hostage with our supply chains, but the reverse is also true: international trade has us hostage too.
$BTC $ETH #btc #eth