Putin To Xi: "We Support Chinese Yuan Use With Asia, Africa, Latin America"

[Free Vulcan]

In a ceremony at the Kremlin, and on the second day of Chinese leader's Xi Jinping's visit, Putin and Xi kicked off formal talks which will focus on the Ukraine crisis. They shook hands and stood side by side as their respective national anthems played, aired on state television. Following the meeting, they held a joint press conference, to be followed by a state dinner at the Kremlin.

Last night's greeting and starting 'informal' talks lasted about 4-and-a-half hours. In addition to Ukraine being high on the agenda for the ongoing summit, Xi outlined in initial comments Tuesday that China wishes to expand cooperation with Russia on trade, and hopes that Russia promotes liberalization, facilitation of trade and investment, alongside both sides maintaining security and stability of industrial and supply chains. Importantly, Xi invited Putin to travel to China at some point this year. Putin showed willingness on these points, also stressing that Russia stands ready to meet China's growing energy needs.

Putin also said his country stands ready to support Chinese business replacing Western companies inside Russia that left in the wake of the Ukraine war. "We are ready to support Chinese business in replacing Western enterprises that left Russia," Putin said.

https://www.zerohedge.com/geopolitical/japans-leader-makes-surprise-visit-ukraine-moment-xi-putin-summit

[catfish1957]

This could go so many ways, but one thing is for certain.  The United States loses in every scenario.

Maybe the best thing that could happen is a soft landing, that results in us JUST us being a economic subservant to the Chicoms. I think that is the 60-70% bet at this point, just so they can peacefully suck the rest of the life out of our economic base. With this way, they can avoid their own

The worst would be either war, or economic collapse by either hyperinflation, or a '30's like meltdown.  Hopefully some Briefers will realize that putting yourself in $32T in debt, and having said debt constitute 150% of national GDP will have consequences at some point.  Consequences for us will be that in a currency realignment our poor fiscal stating against free and floating currency will make our worth less, maybe even much much less.  That will weaken us in every aspect.

Markets and their futures numbers are shrugging this off at this point.  For some reason they seem to crazily think we are invincible economically on the world stage.  Idiots.   They are more concerned with the short term and what the Fed does.  But just wait to a day soon, when our buying power maybe drops by 75-90% on the world's stage of buying goods and services.

[Free Vulcan]

This could go so many ways, but one thing is for certain.  The United States loses in every scenario.

Maybe the best thing that could happen is a soft landing, that results in us JUST us being a economic subservant to the Chicoms. I think that is the 60-70% bet at this point, just so they can peacefully suck the rest of the life out of our economic base. With this way, they can avoid their own

The worst would be either war, or economic collapse by either hyperinflation, or a '30's like meltdown.  Hopefully some Briefers will realize that putting yourself in $32T in debt, and having said debt constitute 150% of national GDP will have consequences at some point.  Consequences for us will be that in a currency realignment our poor fiscal stating against free and floating currency will make our worth less, maybe even much much less.  That will weaken us in every aspect.

Markets and their futures numbers are shrugging this off at this point.  For some reason they seem to crazily think we are invincible economically on the world stage.  Idiiots.   They are more concerned with the short term and what the Fed does.  But just wait to a day soon, when our buying power maybe drops by 75-90% on the world's stage of buying goods and services.

Told my dad years ago that our economy is like a glass house, it'll keep chugging along till that big old boulder finally rolls down the mountain.

Except now there are at least a half dozen boulders sitting up there that could crush us due to our constantly deteriorating financial position you laid out above.

[LMAO]

This is why the next election needs to be about spending, spending, and spending

We are in a very vulnerable position right now due to our unsustainable debt

I understand a president can’t just wave a magic wand and the debt will go down. It’ll also take a lot of fights with Congress.

But they do have the power of veto and the bully pulpit

[catfish1957]

This is why the next election needs to be about spending, spending, and spending

We are in a very vulnerable position right now due to our unsustainable debt

I understand a president can’t just wave a magic wand and the debt will go down. It’ll also take a lot of fights with Congress.

But they do have the power of veto and the bully pulpit

Many don't realize that the Chicoms are the #2 foreign holder of U.S. soverign debt at $870B. (Basically about 3%)  If they decided to simutaneoulsy decided to sell their stake and the same time as decoupling from the $USD as reference currency?  And say so to speak, they declared everything including allied Russian and OPEC oil would only be traded in Yuan? 

You'd then see panic selling worldwide of the $USD which in the past were considered safe havens, even though our fiscal house would indicate otherwise.  The Chicoms could turn us into a 3rd world nation pretty quickly if they wanted to.

[Free Vulcan]

And China is in a world of hurt too. They have as much or more debt as we do, but theirs is more masked and distributed.

Their biggest problem is right now they are 40M workers short, and that's with slave labor greatly supporting their manufacturing economy. I think they are too racist to import workers, if necessary I believe they will scale back however they have to, and between their own demand and the rest of the world they could just cut the US and our funny money currency out of the loop.

They'd be smaller but still the biggest dog on the block, and that's all they care about.

[catfish1957]

And China is in a world of hurt too. They have as much or more debt as we do, but theirs is more masked and distributed.

Their biggest problem is right now they are 40M workers short, and that's with slave labor greatly supporting their manufacturing economy. I think they are too racist to import workers, if necessary I believe they will scale back however they have to, and between their own demand and the rest of the world they could just cut the US and our funny money currency out of the loop.

They'd be smaller but still the biggest dog on the block, and that's all they care about.

We were highly leveraged, as was the rest of the world post World War 2.  But you know what turned us into a economic monster?  A highly innovative and robust industrial base that sold goods world wide at huge profits.  The fact our politicans in the past 80 years didn't operate our  country from the perspective of a  balanced budget and have us net in the green is a crime, that many should have paid for.

Fast forward 80 years, and the roles are reversed.  We have no industrial base, though we tax and spend like we do.   That configuation is now in China and other overseas locations.  We do not have the luxury to even have the ability to recover as long as the trade balance has capital flowing toward the Chicoms like a tidal wave.

When you put the balance sheet to the white glove test, and though they mask it, I can almost guarantee that the Chicoms are accumulating more quickly than they are putting into expenditures, including their unprecdented military build up.

Hate to be such a downer, but I just don't see anything positive on the radar for this country's economic future.

[Kamaji]

And China is in a world of hurt too. They have as much or more debt as we do, but theirs is more masked and distributed.

Their biggest problem is right now they are 40M workers short, and that's with slave labor greatly supporting their manufacturing economy. I think they are too racist to import workers, if necessary I believe they will scale back however they have to, and between their own demand and the rest of the world they could just cut the US and our funny money currency out of the loop.

They'd be smaller but still the biggest dog on the block, and that's all they care about.

They also have a lopsided generational problem, with fewer young people to support the burgeoning older generation, thanks to their disastrous one-child policy.

[catfish1957]

They also have a lopsided generational problem, with fewer young people to support the burgeoning older generation, thanks to their disastrous one-child policy.

Thus, their South American and African strategy of ancillary support.  Genius move if you ask me.

[Free Vulcan]

When you put the balance sheet to the white glove test, and though they mask it, I can almost guarantee that the Chicoms are accumulating more quickly than they are putting into expenditures, including their unprecdented military build up.

That's their main saving grace, plus they don't have the kind of Wall Street pressures American companies do for profits. As long as India doesn't become too much of a threat long term they can wait it out.

[catfish1957]

That's their main saving grace, plus they don't have the kind of Wall Street pressures American companies do for profits. As long as India doesn't become too much of a threat long term they can wait it out.

I predict that India-China will have regional clashes in the late 21st century - early 22nd century.  The fact they are neighors will only excaberate the problem.  All economic powers in history have risen, ebbed, and retracted.  That location may be the next shift.

[Free Vulcan]

I predict that India-China will have regional clashes in the late 21st century - early 22nd century.  The fact they are neighors will only excaberate the problem.  All economic powers in history have risen, ebbed, and retracted.  That location may be the next shift.

Totally agree. If anyone's in the position to counter China long term, it's India.