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Sunday, March 22, 2020

WHAT IS THE WEST DOING AND WHAT IS CHINA DOING NOW?

I am just going to take a guess, based on the past. 

I am just grabbing this shit out of my ass! (cf. Randy Fertel, improv)

Traditionally, with a recession, or a depression, the West , short term profit driven, radically disinvests, cuts to the bone, cannibalism really! 

(In the third world, in a downturn, they sell themselves and their children into slavery!)

It sells off assets, lays off starving workers, goes out of business permanently, commits suicide en masse, things like that.

What, on the other hand, have attacker states like Japan and China done, under conditions of recession, especially recession, stagnation, and stagflation, in the West?

They put on capacity.
They buy raw materials in large longterm contracts at fire sale prices.
They buy civil and military plant and equipment when available for a song if possible.
They buy distressed Western companies and Western assets for a song, and try to get a controlling interest where possible.

This would be an opportunity, if nothing else, and all else being equal, for them to consolidate their dominance in many areas of global production and supply.

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