Topic: DeepSeek showed why US regime cannot win an economic war on China! (Read 57 times)

Yes I do and wonder wonder old bills decay, more people get born into this world, 11 countries use the US$ as their national tender. As a National currency you cannot have a non inflationary currency.

Americans are loving all kind of stuff exchangeable for goods. As any other human being.
Its a marvel of times that the feds can print 20 billion (US) and get away with it. 

https://www.federalreserve.gov/paymentsystems/final_2020_currency_print_orders.htm

All data goes to 2020.

Regarding tariffs, you are  right that the direct impact of imposing 100% tariffs on Chinese products may not be enough to outweigh the competitive pricing advantages they have especially when they can retaliate, as you mentioned if China (or other countries) responds with something like the DeepSeek-style retaliation, it would put enormous pressure on the US economy and the fear of this type of economic pushback could accelerate the momentum for dedollarization as countries diversify their reserves and move away from relying on the US dollar, the effectiveness of using the dollar as a tool of economic leverage would weaken. BRICS and similar organizations positioning themselves as alternatives to the US-dominated system only further signal the shifting balance.

Your point about the weaponization of the dollar is also timely the more the US leverages its financial system to impose sanctions or penalties on other countries, the more those countries seek alternatives while Trump’s rhetoric may have been part of a broader geopolitical strategy, it also plays into the hands of those advocating for a global system less dependent on US financial power.

It didn't? Then what caused the huge inflation afterwards?

You realize that back in 2020 FED printed 10 trillion dollars out of thin air, right? More than America had printed during the previous 200 years...

I get it, Americans love their dollar to death (401k/SWIFT say hi) and will defend it to death (be prepared to fight for Taiwan), but you have to realize that if US tech companies go down, the dollar will go down too (also the euro, pound, franc, ruble -> all fiat currencies will melt -> perfect "excuse" to introduce CBDC).

Wanna take a bet?

ps: I don't care if USD is stronger than other fiat currencies, BTC trumps it all.

USD is a shitcoin compared to BTC and you know it as a Bitcoiner.

using a social media post to argue what you'd love to happen.
Did the US refuse your green-card  ?

AI is preprogrammed software, it cannot predict the big one, lotto or whatever lottery you have in your country.


The hated Dollar did not melt down in covid.
What most haters don't get is that all businesses big and small punished by local weak currencies save and peddle the the US$.  

Maybe Trump is smart enough to hoard millions of BTCs in the sovereign wealth fund before the dollar melts into oblivion.

That's a bit more complicated.

Tariffs make sense if you want to bolster national production of goods.

For example, currently USA is hugely dependant on Taiwan (TSMC).

What will nVidia, Apple, AMD do if the supply chains are disrupted 100x worse compared to COVID?

That's right, the dollar will melt into oblivion. Not just SP500/NASDAQ stocks.

USA has Intel which is the only company that actually produces microchips apart from designing them.

nVidia, Apple, AMD merely design chips and then they send the blueprints to TSMC for production (wafer etching).

USA has every reason to "Make Intel Great Again" (MIGA ), but it will require lots of subsidies (Asia does that too) and many years to build bleeding-edge, competing fabs (Intel is stuck at 7-10nm, while TSMC is already at 3nm).

A modern fab costs 30+ billions of dollars, not to mention wages are higher in the US compared to Taiwan.

I know libertarians will get triggered by my post, but keep in mind free market works only during peaceful times.

What if China invades Taiwan and WW3 starts? You can kiss your supply chains goodbye!

That's why tariffs make sense. It's temporary pain (think of it like going to the dentist to pull a rotten tooth, before other teeth rot too) for long-term gain. Sounds more like Bitcoin now, eh?

Yes, prices will raise temporarily, but it's necessary to bolster Intel (which during the last decade was plagued by DEI policies -> they lost tons of good engineers due to lack of meritocracy).

The only problem is if they have enough time. A modern fab requires 3-4 years of construction, so the 2027 deadline is very pressing if you ask me.

Japan also plans to have 2nm fabs (Rapidus) by 2028.

ps: You can also read this post about Taiwan.

I've talked about what capitalism has done to the US economy (to put simply anything is super expensive in the US) in the past, now we are seeing more and more examples of it. Like the new AI that the Chinese revealed that overnight crashed the US tech stock and wiped out about a trillion dollars as the US tech giant stocks dumped hard.

Now when we compare the investment that has gone into them we can understand that difference a lot more clearly. A $6 million investment in Chinese DeepSeek versus hundreds of millions of dollars put into American versions of the same thing apart from billions of dollars of funding they receive! For example in the lasted fundraising ChatGPT alone is trying to raise $40 billion!!!

If this is the size of this massive gap in every field, the Trump's Tariff war is not going to cut it! Even with 100% tariffs certain Chinese products may still remain cheaper to purchase than anything produced inside US. Same with other countries' products.
And that's without considering Chinese (and others) retaliating, otherwise if they show some more DeepSeek-style retaliation that wipes out trillions at a time, the US economy may not be able to handle it and the Ponzi scheme could fall apart sooner than expected.

This obviously helps dedollarisation as well. As Trump keeps threatening the world and continues weaponizing the dollar, the world is also seeing how unreliable US economy is which means now BRICS, SCO and other organizations become more appealing... Trump seems to be seeing that too. We can see the palpable fear and desperation in one of his recent posts on his own mouthpiece platform:

In other words he is isolating America
What's funny is that the main reason why he could attract so many voters in America was because he promised them to fix the terrible US economy and make it "great", now overnight he claims US economy is "wonderful" and he will impose huge inflation on Americans (that is what 100% tariffs would do).
As I said the fear and desperation is palpable...