Navigating the Economic Chessboard: A Dive into US-China Relations
Mike interviews Ronald M. Schramm.
Buckle up because we’re about to dive deep into the riveting world of international finance and the chess game between two global economic giants – the US and China. I recently had the privilege of sitting down with Professor SRAM in an eye-opening episode where we explored the intricacies of China’s macro-finance from a US perspective. Hold onto your hats because the insights we uncovered are nothing short of mind-blowing.
SUMMARY
The United States holds more debt than a college student during finals week, right? Surprisingly, not entirely. We tend to think of Uncle Sam being in the red to China, but guess who’s still holding the largest share of US debt? Japan and the UK, folks! China is indeed climbing the ranks, but we’ve had historical ties with our British pals, and Japan has been a steady contributor since the 18th century.
Have you ever heard politicians throw around the term “currency manipulation”? Professor SRAM demystifies it for us. China has been accused of fixing its exchange rate to make its goods either cheap or expensive. Picture this: the Chinese currency is weak, making Chinese products more affordable. Is it a strategic move by the Chinese government to boost exports, or is it a result of a weak domestic economy? The plot thickens!
But hey, let’s not forget the strengths of the good ol’ US of A. We’re innovative diverse, and have a top-notch university system. The professor rightly points out that China, with its savings-oriented approach, has its work cut out to compete with the USA. While they may be rising stars, emulating the American way is no walk in the park for them, given their political landscape.
What about the BRICS currency? Brazil, Russia, India, China, and South Africa are formidable alliances looking to challenge the dollar’s supremacy. Professor SRAM shares the lowdown, emphasizing that the dollar still rules the roost in global trade. China may aspire to make the RMB an international currency, but with capital control roadblocks and the dollar’s extensive buying power, the road ahead is not without hurdles.
Hold onto your hats because we’re venturing into an intriguing and chilling territory – China’s Social Credit System. Originally designed for credit ratings, it has morphed into a system that considers your societal behaviour, from blood donations to smoking in prohibited areas. Professor SRAM paints a vivid picture of a system that lacks transparency, potentially being used to suppress certain demographics. Could this dystopian system find its way into the West? Let’s hope not.
Shifting gears, let’s talk wealth. Did you know that around 70% of the average Chinese citizen’s wealth is in real estate? Talk about putting all your eggs in one basket! Professor SRAM breaks down the wealth distribution dynamics in China, revealing stark contrasts between the rich and poor. But here’s a jaw-dropper – China’s middle class is a whopping 300 million strong, rivalling the entire population of the USA!
Before we wrap up, let me drop a gem for all you book lovers. Have you ever heard of Steve Allen, the talk show maestro? Professor SRAM recommends his book, which shares insights from his trips to China in the 60s and 70s. It’s a time capsule into a China that was yet to emerge as the economic juggernaut it is today. It is a must-read for history buffs and anyone curious about the evolution of China.
The US-China economic saga is a gripping tale of power plays, economic strategies, and the occasional curveball. Professor SRAM’s expertise sheds light on the chessboard where these global players move. As we navigate through the twists and turns of this narrative, one thing is clear – the landscape of international finance is ever-changing, and staying informed is the key to staying ahead.
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About Mike Fallat
Mike Fallat, aka The BookMan, is the owner of Dreamstarters Publishing and the Million Dollar Book Agency. They have helped 300+ entrepreneurs become bestselling authors. His goal is to help 1,000 entrepreneurs publish books and teach them how to use their books as a gateway to generating 7-figures.
Visit website for more information: https://www.milliondollarbookagency.com/
About Dreamstarters Publishing
Dreamstarters Publishing offers ghostwriting, cover design, and everything that is required to take an idea to a finished book (kindle, paperback, hardcover, and audiobook).
The Million Dollar Book Agency is the ultimate marketing CRM system for author-preneurs. Services include automated funnels, lead generation campaigns, book fulfillment, podcast management, press releases, virtual assistants, course development, and more.
Mike also hosts a podcast known as Million Dollar Stories and runs a membership-based site known as Million Dollar Circle. In addition to owning the book business, he invests in self storage real estate.
https://dreamstarterspublishing.com/