History often bears a magical resemblance, when a hegemon is surpassed and eliminated, it is usually done swiftly, much like a collapsing army where the defeat is overwhelming and cannot be slowed down.
The bankruptcy of Silicon Valley Bank in the United States is a manifestation of the severe weaknesses inherent in the privatization of the Western financial system. The credit of Western banks primarily relies on the capital backing them, and what supports this capital is the economy. When the economy falters, the capital becomes unstable, leading to a rapid decline.
Times are advancing, and if you have no rivals, you can lead for a long time. If you cannot remain the top dog forever, then being surpassed is always an inevitable and helpless situation.
The United States is in such a predicament because the rise of China and India represents the eastward shift of the global economy, and this shift will only accelerate. Capital also observes a hierarchy of arrival; if you come late, there's nothing left for you. Thus, surpassing is always quick and intense.
What does the United States fear the most? It fears peace and affordability. Their GDP, the force that supports it, can never surpass the population superpowers of China and India in the short term. Economy is population, and population is economy.
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Western capital is most afraid of non-Western civilizations having larger populations than them, as evidenced by the extermination of the Native Americans. The reason Western capital fears civilizations with larger populations is that Western civilization is not stable, leading to a fear of the rise of China and India.
When there are more people, products become affordable, and the United States cannot withstand this. Therefore, they need war to eliminate technology, competition, and affordability.
From a geographical perspective, at the same price, the United States and Europe face cost issues in trade with Asia. Europe, especially Asia, as superpowers with massive populations, always generate the largest scale of capital.
With high population concentration and grand scale, efficiency is very high, and trade costs are lower than in the West, causing the Western price advantage to disappear. Only war can eliminate the technology and efficiency of opponents to secure the top position. But it is clear that the world has not given them this opportunity.
The rise of China in the East is one thing, but there is also India rapidly surpassing European countries, and soon it will become the world's third power, a position seemingly destined for them.Recently, two major industries in the West are being dismantled. One is the automotive heavy industry. Due to the emergence of domestically produced cars in our country, a price war for Western fuel-powered vehicles has erupted. It's not really a war; it's more of a scramble for survival. They're too late to run, and they don't even have a chance to clean up.
Another industry is semiconductors and chips. Western inventories are beginning to accumulate, primarily because domestic alternatives are on the rise. Eventually, even if they sell to us, we won't want them because the technologies are not unified. The East plays with the East's, so who will buy the West's?
What other industries are not being sold at rock-bottom prices? None. Semiconductors and chips, automotive industry – these two, heavy industry and heavy technology, are on the path to being priced like cabbage by our country. It's going to be very difficult for the Western economy to win. They can't fight back, and they can't get rid of us.
The bankruptcy of Silicon Valley Bank, during a cycle of aggressive interest rate hikes by the US dollar to reap profits, is a signal that the American economy is accelerating its decline. Prepare yourselves; they have no room for retaliation, nor do they have the strength to fight back. They only need to mentally prepare for the new mess that lies ahead. Remember, an industry has never been slow to be phased out. The same goes for an era. The American era, well, the fear of being priced like cabbage is real.
In this car price war, Western car companies will retreat completely, as will Japanese and Korean companies. The semiconductor industry will also retreat completely.
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