Friday, April 04, 2025

Trump, China, and Nobility vs. Bourgeous virtues...

 As stated here before the following moves:




China counters with a "34% retaliatory tariff".  This is a bluff and too strong of a move.  They will be forced to the negotiating table within 3 months once the fallout from the US actions take hold.

Trump embodies a shift to "Nobility" virtues (courage, loyalty, hospitality, honor to a select few), etc.  These are much different than the Bourgeois virtues the world has come to expect from the US in the last 50 years.

I am ambivalent regarding the absolute value of the above virtues, and merely express that this is a sea-change for international relations, and will be interesting to see how these actions play out given the US recipe for dealing with competitors:

Cooperate, Assist, Tolerate...then suddenly...violently...Compete.

One of the overwhelming strengths of the US is its ability to adapt and change, both on socio-economic and political levels, and the SPEED which it does so.

One wonder how the CCP will attempt to mirror this given very little institutional/cultural memory on how to digest what is coming.

This "all" about China.  And this is also why Russian peace is important.  Japan to the East, Russia to the North, and Australia to the South.  

Thursday, April 03, 2025

Meanwhile...an important signal amongst the noise...

 While every news outlet is making sense of "reciprocal tariffs" and the resultant ramifications, a credit rating service (yes, I have railed against them in the past so this is to be taken with the usual cautions) downgrades the Paper Dragon.  Note the "rising public debt" trajectory" language.

Managing the political and social fallout from the coming 3-5 quarters of chaos will be a tall order for the CCP.  

Yuan Falls Versus Dollar as Fitch Downgrades China’s Rating to A
2025-04-03 12:45:46 GMT


By Nour Al Ali
(Bloomberg) -- The Chinese yuan fell further against the US
dollar, underperforming all major peers, after Fitch downgraded
China’s rating to A from A+. The outlook is stable.

Fitch said the downgrade reflects their “expectations of a
continued weakening of China’s public finances and a rapidly
rising public debt trajectory.” Meanwhile, China pushed back and
said the downgrade does not fully reflect the country’s economic
recovery momentum, calling it “biased”.