CHINA AND SAVING FACE

Maddogg guest commentator, OMIG’s T.H. Johnson

“The concept is a core social value in Asian cultures, among others. The meaning has remained stable across time. Saving Face signifies a desire — or defines a strategy — to avoid humiliation or embarrassment, to maintain dignity or preserve reputation”.

How well do you think this US President understands the reality of this concept that for thousands of years has been imbedded in Chinese culture? Is ignoring this reality a brilliant strategy when telling China you are going to raise tariffs on $300 billion in goods to punish them but whose immediate impact directly cripples your own economy?

Furthermore, how does that impact the Hundreds of billions of dollars in credit you have borrowed from the Chinese and owe them for floating the US economy? What happens to a US dollar no longer backed by gold, but only by your word, as a fiat (proclaimed value) currency? What if the Chinese Central Bank calls in all of the debt they have financed for the US Federal government by buying US Treasury Notes, since you cannot pay that debt immediately? Do you think President Trump considers these things when he announces what appears to be his shoot from the hip policies?

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