this post was submitted on 05 Feb 2024
179 points (98.4% liked)

World News

38554 readers
2552 users here now

A community for discussing events around the World

Rules:

We ask that the users report any comment or post that violate the rules, to use critical thinking when reading, posting or commenting. Users that post off-topic spam, advocate violence, have multiple comments or posts removed, weaponize reports or violate the code of conduct will be banned.

All posts and comments will be reviewed on a case-by-case basis. This means that some content that violates the rules may be allowed, while other content that does not violate the rules may be removed. The moderators retain the right to remove any content and ban users.


Lemmy World Partners

News [email protected]

Politics [email protected]

World Politics [email protected]


Recommendations

For Firefox users, there is media bias / propaganda / fact check plugin.

https://addons.mozilla.org/en-US/firefox/addon/media-bias-fact-check/

founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
[–] [email protected] 1 points 7 months ago (1 children)

Thanks for all that information! The point about deficit spending in particular was something I had a vague idea about, but seeing the numbers on spending vs GDP change is very insightful. The US has a huge advantage with its top reserve currency status. I do wonder how isolated the US is from China's problems. It seems like so far it hasn't had much of an impact on the US, but it's hard to imagine failures in the second-largest economy of the world not having some sort of domino effect.

[–] [email protected] 0 points 7 months ago* (last edited 7 months ago)

I'm not super well versed on the financial interactions between the US and Cjina, but I imagine the total US change will be a washout. The financial markets will dip for sure since many US based companies do massive amounts of business in China, but a Chinese stagnation will also drop the bottom out of the prices in all of the commodity markets that drive a lot of price inflation in the US. Cheaper US industrial/energy inputs means inflation drops and consumer spending/corporate capex can increase.
That's just a guess though, because China had also been rapidly developing ties to every other country outside of the West-centric financial bubble, and if those countries also see a contraction in Chinese investment, it could snowball a bit.