economics

In April, U.S. Treasury Secretary Janet Yellen warned that China’s overinvestment in steel, electric vehicles, and many other goods was threatening to cause “economic dislocation” around the globe. “China is now simply too large for the rest of the world to absorb this enormous capacity,” Yellen said.

Spain and Ireland, whose real estate markets had even more pronounced upswings, ended up with excess housing stocks equivalent to roughly 15 times the average annual supply of the pre-boom period.

From 1971 to 1980, the Commodity Research Bureau (CRB) Index—which is a basket of commodity prices—appreciated in value by 250 percent. Bond yields rose by 150 percent during the same period and, as a result, bond prices declined.

GDP-moving amounts of money on GPUs and such, it is not, by definition, being spent on something else.

Some examples:

• Non- life science venture capitalists are mostly only doing AI right now. Have something else needing funding? Good luck with that.

• Cloud compute companies are diverting spending from cloud offering to GPU-centric data centers.

Winners: Both state-owned and private companies benefit, though in different ways—SOEs receive cheaper loans and more cash grants, while private firms enjoy larger tax breaks.

In the case of Smoot-Hawley, it was clearly the second. At the time those tariffs were enacted, the United States suffered from too much saving and too little consumption. It is why the country exported so much to the rest of the world, like China does today. What Americans needed then (as Eccles understood) was to boost the share of production

Last week, we wrote that Trump’s “concession post to the BRICS” (“Looks like we lost India and Russia to China”) meant we will have global peace, a secularly lower USD, higher global nominal growth, higher global inflation, much higher gold prices over time, higher BTC, higher stocks and in time, rebalanced trade:

In the context of the preceding

but it is just as correct, and probably more so, to say that foreign accumulations of dollars force Americans to consume beyond their means.

Hobson and Conant argued that the leading capitalist economies turned to imperialism primarily in order to export surplus savings and import foreign demand as a way of addressing the domestic savings imbalances.