USA finds Huawei Mate 60 Pro 'deeply worrying': US Secretary of Commerce threatens new sanctions

[Roger]

Why humans can't help each other to make humans life happier?

[RobertJasiek]

The initial cause was the current account deficit of the USA to China. Free trade did not work any longer. Mutual human help is an ideal but must be made to work financially for all involved. China as the world's workbench can work only to some extent. Europe has started to notice that too great product dependency is also bad.

[NikoB]

Europe has started to notice that too great product dependency is also bad.

Europe and the USA began to notice that the interest on accumulated debts was becoming unaffordable and they no longer had money to pay their bills. And I really don't want to be responsible for the well-fed years while the debt was accumulating. Moreover, it will not be the kleptocratic elite who will have to answer (they skillfully avoid responsibility), but ordinary people, on whom they will blame all the problems.

What can be done to reduce the value of debt to creditors (both internal and external)? Bingo! Print money until inflation quickly turns debts in nominal value (and interest on them) into ridiculous amounts, easily paid in full in a short period, at par.

Well, it's like buying an apartment/house on credit, at a fixed annuity rate (and the total nominal amount of payment on this debt once a month), and then the purchase currency suddenly depreciates tens or even hundreds of times, the debtor suddenly receives nominal income tens of times more - because wages and incomes are nominally growing wildly than they were before the collapse of the local currency, quickly adjusting to the level of inflation, of course not for everyone, but for the productive, active layer of the population, for those for whom the active period of life is behind, such a time is almost always the way to the ruin of accumulated savings, in fact, the theft of their savings through inflation, those who have a stable job/income, well indexed to the inflation rate, benefit. And instead of a nominal, rigid fixed payment, conditional, for example, 25-30% of monthly income (or sometimes more), the debtor suddenly receives a nominal payment of only 1-3% of the monthly salary (or even less), the result is the payment of the entire loan literally in a matter of months, instead of the previously expected debt bondage of 15-30 years with a relatively stable local currency.

The debtor is immensely happy, as he successfully cheated the creditor.

Only in the case of an ordinary ordinary citizen, getting into such a situation is a huge luck (especially taking into account what the state and society are turning into in such a period), and in the case of states, such a situation is always a deliberate, criminal action of their authorities, deliberately, accelerated devaluation of your own currency, if you were lucky enough to take out debts in your own currency. And who chooses the authorities (or passively supports them)? Most of the population.

When this happens at the level of an ordinary citizen, the bank/housing cooperative usually resigns itself to losses (if it has enough capital for such losses and the case is not very widespread), and in the case of a scam from the state, civil unrest begins, especially when there are many creditors and they suffer greatly from such thieving actions of debtors. And if the creditor is another state and there is a fairly strong influence of society on the ruling stratum, this can lead to the start of a war with the debtor state, because all other options to call upon him to faithfully pay the national debt will be exhausted.

Well, approximately now the United States is in exactly this situation (and the EU for the most part, as well as Japan) - the powerful kleptocrats understand that the earth is starting to burn under their feet. Nobody wants to be responsible for rampant decades of accumulating unaffordable debts, not them, not the part of the population living in debt. Accordingly, the doctrine of searching for an external enemy is quickly put forward, with foreign creditors being accused and declared the enemy in the first place. There is a blatant attempt to destabilize creditor states, in parallel with pumping the system with the printing of fiat candy wrappers.

Inside, they are also looking for "enemies of the people", who are mainly those who have significant savings and who will lose the most, which means they will hold debtors accountable first of all. Whoever tries to summon him is declared an enemy.

The scheme is banal and historically known to everyone, but each time it is repeated in a new way in a circle in different states and empires. We accumulate unsustainable debts in our fiat candy wrappers as long as we can, then we throw creditors through the printing of fiat candy wrappers and then drain the wrath of the creditors or destroy the most desperate ones. And we begin again, when the dust, noise and commotion settle down, and people forget what happened before, with a gradual and inevitable change of generations (very rarely those who were robbed manage to pass on their hatred of debtors, in full, to their heirs, and then to their heirs, etc.).

Will it work out this time, come out dry from water, what do you think? Or will creditors (both internal and external) give them severe punishment?