For global imbalances to truly diminish, China would need to shift towards greater domestic consumption and less reliance on exports, allowing other countries to repay their debts. This would require a fundamental change to its economic model, which currently seems a distant prospect. #FiatNews
Correcting global imbalances, especially trade surpluses and deficits, can occur through market mechanisms like currency and bond prices. However, current non-market interventions by politicians risk unintended consequences. China's historical tendency towards directive solutions further complicates this. #FiatNews
China's economic model relies on producing more than it consumes, requiring the rest of the world to buy its surpluses. Therefore, it's unlikely to systematically take on the role of a major consumer, as increased imports without other changes would reduce domestic demand, production, and employment. #FiatNews
Economist Michael Pettis is skeptical that China can systematically replace the US as a market for Brazilian coffee, despite exporters' hopes. He notes that the US has historically served as the 'global consumer of last resort,' absorbing goods and effectively 'exporting' demand and employment. #FiatNews
Brazilian coffee exporters are looking to increase sales to China to offset declining exports to the US, a direct consequence of US tariff pressures. This highlights how US trade actions can trigger global chain reactions. #TradeWars #GlobalEconomy #FiatNews
Tencent exceeded market expectations with a 15% revenue increase and 17% net profit growth, boosting investor confidence in its AI monetization strategy. The Chinese tech giant saw double-digit growth across key segments. #Tencent #AI #FiatNews
Global oil markets are headed for a record surplus in 2026 due to slowing demand growth and increasing supply. Oil inventories are projected to rise by 2.46 million barrels per day. #OilMarket #FiatNews
US Treasury Secretary Scott Bessent has urged the Federal Reserve to immediately cut interest rates by 1.5 percentage points, stating the central bank's benchmark rate should be significantly lower. #FederalReserve #InterestRates #FiatNews
US financial markets are experiencing euphoria driven by inflation data, which has dispelled stagflation concerns and opened the door for potential monetary easing. Small-cap, emerging market, and tech stocks are surging, and volatility is declining. #Inflation #USTech #FiatNews
CoreWeave's shares fell 9% after Q2 results, as a threefold increase in revenue was overshadowed by a significant loss, failing to meet high investor expectations. #CoreWeave #FiatNews
