China Dumps US Debt, Fearing a Capitalist Armageddon|Richard Wolff

#usa #dollar #china #chinausrelations #economy
Why does the US run deficits in the trillions of US dollars every year? What does China's continuous reduction of US Treasury holdings signify? Professor Richard Wolff tells us that the center of global capitalism has shifted, which will affect the development of global affairs.

[Riggsnic_co]

Invest judiciously, keep a stop loss figure. Shuffle between debt and equity wherever the ratio goes too off your target. As for the target, I recommend a Ratio like this Debt % should be equal to your age in years. If you are 20, debt is 20%, reset in equity. If the market falls or rises drastically, your debt % will change, which you should rebalance to 20% and bring back equity to 80%. Thus you would have bought low or booked profit depending on if it was a crash or a bull run.

[Gpenguin]

Corporations (and their bought politicians) are great at privatizing profits and socializing losses. Thank you, Prof Wolff, for consistently being honest about the economic situation in America.

[gunsumwong]

If we were honest about it the situation is US is not reducing the debt but increasing it year after year and president after president. There is absolutely no evidence the US has any incentive or intention to pay off the debt. But the evidence is each administration borrows more and let the next administration to sort it out. Thus every president does not see it as his/her problem but something for someone the future.

The fact the US national debt got discussed at all may have something to do with the govt. finds it hard to service the debt within its economy.

It seems as US is setting fire on its own ass and the world is now watching. Japan and China are the two punters who bought seats at the front row.

[willplumtree]

Thanks for teaching instead of brainwashing the masses, and pointing out denial about the state of the economy as well as politics’ role.

[margaretcaine]

China has been dumping US Treasuries for some time now, and buying gold: by the ton. Literally.

[davidmclean]

The US maintains control on its debt by threats of war and national destruction.
For example: Gaddafi when he was leader in Libya nationalised oil companies. He provided to the Libyan citizens: free health, free education, interest free business loans to genuine applicants. He even provided maternity payments to mothers. His "mistake" was to decide to stop accepting $US in payment for oil. He wanted to establish a pan African gold backed currency, and this attracted the fury of the western countries and especially the US.
Libya discovered huge deposits of underground water in the country, so he organized further exploration for water reserves and built a system to distribute this water to the cities and to build a prosperous agricultural industry.
When the US military attacked Libya, it bombed the water wells and water pump stations, bombed the pipelines and bombed the factories which made the water pipes. Very rapidly many citizens died of thirst.
The resulting social upheaval was reported in the west as a revolt against Gaddafi.
Remember: the more than 2 million Vietnam citizens in the "American war" in Vietnam, the landscapes destroyed by poisons, the use of napalm on villages, the thousands of Laos citizens maimed because the US dropped anti-personnel mines in farming areas in Laos. Even today farmers are still being killed and maimed by these. It is not even mentioned in the western news.
Remember: The "weapons of mass destruction" that Colin Powell in an address to the UN, claimed he had categoric proof of existing in Iraq. Many years later even he admitted that there were no such weapons, and he did not speak the truth.

[AM-dnlk]

A really great explanation on how countries, politics and economics work. Thank you.

[g.m.]

Nobody explains it better than prof. Wolff each time you learned something new on the same repeated topic 👍🤔

[walidshabazz]

Dr. Wolf, thank you for this truly wise, comprehensive, and wholesome lecture.

[sarawilliam]

America is currently plagued by the hydra-headed evil duo of inflation and recession. The worst part about this recession is that consumers are racking up credit card debt. In April alone, credit card debt went up 20% while rates have doubled in a year. Inflation is so high that consumers are literally taking debt for basic life necessities. Collapse has indeed begun..

[kortyEdna]

The only American who won't acknowledge this Administration's failed economic policies is Joe Biden. "Shrink-flation' is the least of our worries compared to rising rents and stagnant wages, but it is an undeniable indicator of how bad our inflation has gotten. I have $100k that i like to invest in a non-retirement account, any advice on that?

[jacintochua]

BRICS GDP already overtaken G7's.

[callistussamuelmajalang]

The US political system has gone kaput.

[gaynevillagomez]

Professor Wolfe you are a REAL teacher and political analyst ❤❤❤❤❤❤❤❤❤❤

[moss]

I think there is another key factor to consider - State owned enterprises.
Neo liberal countries hates State owned companies and sold off most of them in the 80s. This meant neo liberal governments can only get money through taxation or debt.

By comparison, socialist countries like China have a huge state owned sector, and profits from these SOE goes back into government's coffer, thus giving the government a substantial third source of income.

How substantial you may ask, for reference, the annual profits China Tobacco Corporation makes from cigarette sales is roughly the size of China's annual defence budget 😅.

[ChloeCarter-kdgz]

It's quite concerning to see the various challenges our economy is facing right now, from uncertainties to housing issues, bad weather conditions, foreclosures, global fluctuations, and the aftermath of the pandemic, all contributing to instability. The rising inflation, slow growth, and trade disruptions definitely require immediate attention from all sectors to bring back stability and promote growth. How do you think these issues can be effectively addressed?

[brendanpelly]

My god I love you Professor Wolff! You are an absolute godsend of information for me. I have followed you for at least 7 years and you have not only changed my outlook on how the world works, but you have me bashing my head against a brick wall trying to explain to everyone around me, mainly my employers how blind they are to their own hubris

I am a manager working for the 4th largest "capitalist company" in my country and the management are soooo... blind to their own hubris. They treat the word of the company as unquestionable gospel, and DENY and reprimand any worker that questions their way of doing things. They treat me like I'm the one that doesn't get it, instead of themselves as the ones that don't get it.They defend their capitalist ideology like it's a religion! No information that puts their methodology into question gets passed UP the line to the people in charge, and therefore the people UP the line have absolutely no idea that their ideas AREN'T working

We have a system whereby the company is large enough that the people at the top, who make the rules, have absolutely no concept of how things work on the factory floor, and... no store manager dares to inform them that their ideas DON'T WORK! So the people at the top think that everything is fine and dandy on the floor because no manager dares tell them otherwise! My managers are so busy "sucking dick" that they create their own downfall and, therefore, the downfall of the workers and ultimately the downfall of the company itself

Mostly because of you, I have spent the last eight and a half years TRYING to tell them that their policies and movement DOES NOT WORK and they NEED TO PASS THIS INFORMATION UP THE LINE... and they tell me to shut up at their own detriment and mine. It is exasperating! I had to take 5 months off work just due to the stress of this!

The company I work for is constantly cutting hours (ie. wage hours) for the same amount of work... i.e. a job that takes 12 hours, they now supply 8 hours of labour for; and crack the whip if the job isn't done.

My company believes in cutting wages for higher production and automation. YOU know what I mean!

I run a team, and I am constantly sarcastic when I tell them that "this is NOT a democracy! You will do as you are told! If you want a democracy; change your vote to socialism". That's what I tell them!

I thank you from my heart for all your work Professor. Bless you Sir 😊

Also, I know you're not a politician, but I can't help but wonder what your thoughts are about President Putin?!

Good day to you Sir 😊

[kaizen]

Simply Brilliant & truth has been told!

[mydad]

Ukraine war has been draining US UK NATO money, resources, man power, weapon, ammo stocks and aggravates economic, debt crisis.

[connnedundercapitalism]

A truely a great thinker....i live in the Uk..we rely on over 80% for our economy for on spending in the shops