The US and EU says China is subsidizing their industries, but they are doing the same thing. Industries in the EU and US are almost entirely subsidized by the government, because they are not profitable. On the other hand, China's industries are profitable.
China is giving their companies money and the companies build factories, mines and real stuff like that. The US gave $4 billion to Intel and Intel is laying off 15% of its US staff and will likely use that money to build factories…in China. That’s the main difference
@@barnabusdoyle4930 Intel Brags of $152 Billion in Stock Buybacks Over Last 35 Years. So Why Does It Need an $8 Billion Subsidy? What’s to stop the chip-making giant from shoveling taxpayer grants into more stock buybacks? LES LEOPOLD Mar 27, 2024 Common Dreams Intel, the largest chip maker in America, with 2023 revenues of $54 billion, has just been awarded an $8.5 billion grant from the federal CHIPS and Science Act, plus $11 billion in favorable loans. In addition to badly needed microchips, Intel produces totally useless stock buybacks. On its website the company proudly proclaims to have spent $152 billion on stock buybacks since 1990. That’s not a typo: $152,000,000,000. Which is why I call it "Stock Buybacks Я Us." Intel took $152 billion of its revenues, some portion of which could have been used for R&D and building new microchip facilities in the U.S. as well as paying workers more, and instead funneled it to its largest Wall Street stockholders and corporate executives, enriching the top fraction of the top one percent. CommonDreams
@@barnabusdoyle4930 China gave money to the companies that are building and making useful, practical and beneficial stuffs, the U.S gave money to the companies that took those money and buy back stocks to look good, build somethings that just wouldn't be finished due to bla-bla-bla and dumping money into the MICs which is a blackhole and non-beneficial to the general public.
Chinese firms used government fundings for R&D. American firms used bulk of the government fundings for stock buybacks. Hence, stockholders received good dividends and its CEO received big bonuses. Of course, politicians also received handsome donations.
Intel Brags of $152 Billion in Stock Buybacks Over Last 35 Years. So Why Does It Need an $8 Billion Subsidy? What’s to stop the chip-making giant from shoveling taxpayer grants into more stock buybacks? LES LEOPOLD Mar 27, 2024 Common Dreams Intel, the largest chip maker in America, with 2023 revenues of $54 billion, has just been awarded an $8.5 billion grant from the federal CHIPS and Science Act, plus $11 billion in favorable loans. In addition to badly needed microchips, Intel produces totally useless stock buybacks. On its website the company proudly proclaims to have spent $152 billion on stock buybacks since 1990. That’s not a typo: $152,000,000,000. Which is why I call it "Stock Buybacks Я Us." Intel took $152 billion of its revenues, some portion of which could have been used for R&D and building new microchip facilities in the U.S. as well as paying workers more, and instead funneled it to its largest Wall Street stockholders and corporate executives, enriching the top fraction of the top one percent. CommonDreams
In China , they deliver the result. In west, the cost went up and up, the deadline kept postponing and nobody takes responsibility, and no matter what kind of result, they are doing a good job
It also lowers the cost of manufacturing and living for its citizens. Good roads means lower maintenance costs for its road users. Good public transportation means lower cost of living for citizens and less pressure for wage increases, so good for businesses. It also makes tourism cheaper and easier so good for the hotels. Good roads means efficient delivery meaning lower overheads for just in time manufacturing. In the west they use bad roads as an incentive to privatise them to make them a profit centre for banks and billionaires and a higher overhead for the rest of the economy.
@@davidlazarus67the funny thing is that Karl Marx wrote about this benefit over 100 yrs ago. But we're taught that Marx supposedly didn't know wtf he was talking about. Now the West lives on GDP growth through financialization (which isn't real growth) while China makes things in the real economy and kicks the West's ass.
@@jacan4eva I know it’s laughable what the west has been taught. Western economies are basically Ponzi schemes. Layers of Ponzi and all dependent on a tiny real economy.
Western companies got used to HUNTING in the CHICKEN COOP, relying on government budgets, exceptions, and laws tailored to avoid competition and the need to improve and become more efficient...
There are 2 different issues at hand here. 1. It's important to subsidize companies like the ones that produce microchips, to secure our supply chain. This is especially a sensitive issue to our National Security, now that through the Russia/Ukraine war, we've seen the threat posed by globalization. i.e: Germany's dependence on energy from Russia, and Putin's decision to cut off supply upon the US and EU sanctions. 2. A separate issue is companies like Intel have a fiduciary obligation to their shareholders. They are legally required to maximize profits for them, and salaries are usually the largest expense a company has. Simultaneously, we in the US live in a stupor where we think ours is a democracy. But the truth is campaigns are funded by companies, not by citizens. It is a flaw of legislation that is not looking out for its constituents, not to include employment requirements to incentives.
Putin didn't cut of the Gas ,the US destroyed the Pipeline and Ukraine has just cut off the last open Pipeline, but don't worry France and other EU countries are still buying LPG but they just don't want the sheeple to know😊😊😊
The money has to be backed by something. And that something is debt. Massive amounts of increasing debt will place a bigger burden on the tax payer. Expect massive cuts to alot of things you take for granted.
@@Anil18834 The point is that only few countries can print at their own leisure. US and Europe can print because they're the 1st and 2nd world reserve currencies allowing them to export much of their inflation to the rest of the world. Other countries can't do that.
Yes you seen what did to him. And most Americans think they have free speech and they are free from zionist control 😂🎉😂 I love Scott and the american people. We dont blame them.
Your Financial analysis are too Good Sir,Hats Off to you...I think some can write thesis and do PhD by just studying your analysis...Even the economist don't have that good of an insight and indepth knowledge. I really admire your knowledge Sir. Once again Hats Off to you Sir!
That's because the priority of the US is elsewhere....military control of the whole world. Then they woke up after seeing the deep investment the Chinese put into the development of green energy, high tech and infrastructure, having a head start of at least 25 years. Now being late and unable to catch, the US is now embarking on a strategy of smearing, hobbling and sanctioning.
instead of focusing on small issues like wafer fabs, india is working towards a much bigger goal of akhand bharat. western leaders need to learn from the strategic wisdom of viswaguru india. /sarcasm
@gelinrefira it's democracy. India suffers the same deficit as all nations that adopt democracy before undergoing Economic Development suffers. By placing the legislative and executive powers in the hands of a negative multitude, even more so one which is legislative and executive powers in the hands of a negative multitude, even more so one which exist on a subsistence level, you naturally create a system which is one of cronyism and patronage. As those who barely are surviving for today cannot consider the consequences of tomorrow. All of this is intentional, the error of Western liberalism, including democracy, is one of the greatest tools the West has created for the regression and stagnation of non-western societies.
@@andrefalksmen1264 which is why most of the Global South will remain in long term stagnation. People talk about the BRICS as emerging bloc when in fact in economic terms China and Russia have more in common with the Global North. The fact of the matter is Democracy in the developing world today is a religion, no questions asked, just go with the system.
The US is the first superpower in the world due to faaaar more than American ingenuity and GDP alone. The US, like every other country, use their resources (I should say ours, I'm American) that means military, diplomatic, intelligence, influence, etc., to further their own interests. That is the point of Foreign Policy. We do this to increase our wealth, or political influence to serve our purposes in terms of national security, and/or in order to improve the quality of life of our citizenry. Aid to any country, be it Israel, Saudi Arabia, Ukraine, etc., comes with strings attached and is but a move in a much larger chessboard. It's all aimed at retaining power. Power, brings us more money, or a tactical advantage over other countries. In the case of Israel, Israel is just one of many countries we give aid to in the Middle East, so we can retain control of oil supply. This is what has made the US the 1st superpower in the world approximately during the last 100 years
America doesn't get anything from Israel except an insubordinate out of control false ally who goes around sabotaging it's diplomatic efforts, pulling it into wars and humiliating it.
In terms of aid to Ukraine, it's a war of attrition that weakens our competitor's military and economy, while keeping it occupied in other matters rather than attacking us. It's essentially, defense on sale. We don't have to bare the costs of a military campaign, we get to dump outdated armament, our huge weapons industry gets a healthy revenue, we don't have to commit the lives of our own troops. Also, if Ukraine wins, they have to pay us back a significant portion of the aid received. They can add to our intelligence and we'll have acquired a significant foothold near Russia and China. In addition, Ukraine provides inexpensive grains and is a huge food source for countries in North Africa. A hungry people, are the basis for recruitment of rebel fundamentalist groups that destabilize the area. Our position as the 1st world power, is not only being challenged, in fact I believe won, by China. It is also dependent on a huge ecosystem we have created. Is any of it pretty? No, power never is pretty. It comes at the expense of the less powerful. Yet somehow, we all end up voting for presidents that offer a better economy, when the truth is US presidents have little power over the economy and no power over the Federal Reserve. What they do control is Foreign Policy, and we Americans, seldom question how the sausage is made.
@@Anil18834 but is this not a totally nonsense idea to go about deliberately taking advantage for others to benefit yourself when you know that u must reap what you sow. Better to stay at home and mind your own business than planting seeds of your own downfall. So much for foreign policy politics
Why isn't lobbying politicians in the USA for subsidies considered as form of corruption when it involves $$$$$$ in return for their campaigning expenses which are actually taxpayers. monies. It is corruption by any definition when both parties benefit (politicians & lobbyists) at the expense of another party (taxpayer). Where are the Law enforcers? What a rotten system.
@matthewgaddy3232 brother buy land in africa. We love you and wellcome you. Open a business africa with Chinese connections. Love from Denmark via somalia 🇸🇴
Kevin, this is how American democracy with capitalism works...a few rich capitalists controlling the politicians, and through this way and getting the taxpayers money
And also controlling what they want you to read and hear. Campaign contributions should be limited to a maximum of couple thousand and outlaw lobbyists!
If the average American understood this, things would change. But the majority are blind. The indoctrination is several generations deep and it starts from elementary school till death.
US subsidies are based on money created out of thin air. Dollars are also the world reserve currency, the effect of money printing has less of an impact on inflation and other negative effects. China has to print money, as well. But their fiscal policy is tighter. You can argue that China is throwing its money away on unprofitable companies. But if that is true, why are they so competitive on the world stage? Keep in mind, the US has been subsidizing tons of industries, yet those corporations (Boeing, GM) have terrible reputations.
@@matthewgaddy3232every country prints up money The difference is when people say printing up money What they really mean is the US Treasury issues new external Sovereign Debt Where the US FED buys that Sovereign debt and puts it on its balance sheet What people are really talking about is the Quantitative Easing the USA does
@@sfukuda512 Agreed. Also manufacturing costs in China are a fraction of those in the US. China has a much larger profit margin and the capacity to compete with price wars.
@@cb250nighthawk3 probably there are 200 EV companies the Chinese Government feels that is too many… But they will be hands off let nature take its course 👇 A brutal elimination round is reshaping the world’s biggest market for electric cars Analysis by Laura He, CNN Published 11:05 PM EDT, Wed April 24, 2024 But all of the country’s more than 200 EV manufacturers are now grappling with huge oversupply, and experts predict many smaller companies will not survive the fiercely-competitive environment. CNN
They subsidize, we subsidize. It LOOKS like they get more for their subsidy "dollar" than we do! OURS might sort of dry up and blow away from the looks of it. I have seen this from my lowly position as a working technician in a few Universities. What seem like pretty large sums of money will fall on a lab (with publicity) and have NO EFFECT that anyone can see. Maybe a room full of computers is purchased, but we already HAD that. In many cases it's just NOTHING. I have seen people get a research grant and just NOT DO the research!
The national pastime for Americans is Baseball. China is in the Major League while America is in the Minor League, and they have come to an understanding of who is superior.
I don't see anything wrong with subsidizing if you have the means to do it. The only issue in the US is how the money is being used. Usually it goes to the greedy executives so they can buy their yachts and private jets.
@@monkeyking-self-proclaimed7050 I'm sorry, but your comment has no basis. Are there absurdly wealthy people in the world? Yes. But that's not the way subsidies are "usually" spent. If you're interested, there's more sober conversation on the matter on the comment made by @alexlau777 .
Kevin, hats off again to a real analysis. I see the same kind of stuff in other areas, principally education, where a lot of "think-tanking" mascaraing as academic work that are there just to provide the grease for powerful interested parties.
US Air Force spend US$1,200 to purchase one cup used by the Air Force. Think about how many cups are now using by the Air Force, and how many similar situation happened in the Government bureaucratic environment ? Subsidy ? Yes, the above is a US government subsidy, a systematic subsidies, but to whom ? Is the subsidies go to the right body ? Or it went into the pockets of some fat cats ? After all who are the law makers in US ? The civilian or the capital consortiums ? Who make laws and decisions where the tax money goes ? Who made the laws to pay the least tax, or even evade tax ? Who are rigged behind the system? The capital consortiums or the civilians? President of US is scare to unfold how much tax he was paying ? Who is that US president ? Look, Sir ! It is all about the "system". Who this "system" is working for ? And how the money resources being allocated. For sure the power in US has been falling into the hands of the consortium elites who either pay very minimal tax, or to the extreme, evade all taxes. What are the complaints for ? By the way, as at today, US only takes up 17% of China total export. If you calculate the total cost of material and labor from this 17% export to US, deduct it from the selling price, the trade profit which China made on US is very minimal. US money is not subsidizing China development, but subsiding US own greedy fat cat capital consortiums elites, or just by sheerly printing US Green Back to fulfill these elites' desire on the expense of other countries.
Nope. It's not taxpayer money. And it is not borrowed in any real sense. It is public monies created by the Federal Government and spent into existence. It is supposed to be spent on a public purpose. China creates its own money just like the USA. China has better industrial policies than we do. America is not a serious country anymore. Most people don't know what money is or where it comes from or even what a public purpose is.
" is not a serious country anymore:" well said - its a hyper financialised oligarchy. Everything is done for the further enrichment of the rich - even if it damages the country and the institutions.
When de-dollarization is occuring more and more the cost of any dollar creation is inflation that affects US more as dollar is less in demand and it will weaken dollar as a result. This was not really the same thing when dollar is used as reserv currency and used to settle international payments.
Quote by Ray Dalio, the $50-billion investor and founder of the world's most successful hedge fund, "The United States is a poor country that still thinks it's a rich country. China is a rich country that still thinks it's a poor country."
Just like India a developing country behaved and acted like a super power nation. China is a super power nation but still said they are a developing country.
@@hengongchua6250 Significant parts of China are poor and developing. But less poor than they used to be. And significant parts of the US are poor but not improving.
@@Waingro808 Yes he did. And then his fellow billionaire Musk said, who has large ops in both countries said, "China rocks. They're smarter, they work harder, and they don't complain." Fully agree based on my experience. That's why China is winning. They will soon be #1 already, and probably already are #1, just as they were before for millennia. As billionaire Jimmy Rogers says. China is the only civilization to have repeatedly been #1 already before. None other rose to the top and fell and rose to the top again, and fell. And now will inevitably be tops yet again (and probably already is).
Agreed. Also, the tax percentages that the very wealthy pay are considerably lower than what the majority of the middle and lower class pay in the US. That means the state, should be garnering more funds than it does. So, we have less funds to incentivize companies that could, for example, secure supply chains.
And the same week. Italy prime Minister went to china to ask for investment and to buy fiat from stilantes 😂😂😂 you can't make this up. The sameone that left the bri project.
I enjoy watching your videos which consist great background information and analysis requiring great effort. They have so much content quality yet deliver the message in simple, clean words without bias. You deserve to reach wider audience and I sincerely believe it will be so. Be good :)
Canadian governments give $15 billion to Stellantis to build electric-vehicle batteries and ban Chinese EVs in Canada to help Stellantis survive or pocket the subsidy comfortably.
Did you know that Stellantis has a joint venture with China's Leapmotor to sell EVs in Europe ? It means the Canadian government is helping Leapmotor if they are giving money to Stellantis LoL
Hey Kevin!It's so nice to see your vision and insights in TH-cam and Bilibili😊I am a Chinese live in Shenzhen,work in China sourcing field.I found we are exactly at same field!Wish to be friend of you,and if you come to Shenzhen please give me a chance to drive/show you around if you available🤝
The biggest difference between Chinese investment and US investment in private companies is that the Chinese companies have to actually use the money to make things. If they pull what US companies do, stock buybacks or increase in executive pay, their executives would be arrested, tried, and sent to jail. In the US public funds are used to do stock buybacks and the company is celebrated for making the stock prices go higher. But manufacturing goes down. Merit vs. profiteering is the difference and why it works in China but does NOT work in the US or the West.
Today's democracy is like a talent show: the audience can press the buzzer to vote, but they have no say in deciding who gets to stand on the stage; that's traded behind the scenes.
But everyone on the payroll in CSIS would not agree with you on that any bit. They all live not only happily ever after, but also stay filthy rich and live luxuriously.
Why is the US n EU nowadays turning into a little bitter old lady. Keep bickering about other's success. Why must the world have to be in lose lose position in the eyes of these so-called 1st world countries...😢😢😢😢😢
Dear Kevin your sir, your knowledge of finance is too good not to read and most informative and deep knowledge. I wish you all the success and knowledge benefited to all your reader. Thanks again.
The US and EU says China is subsidizing their industries, but they are doing the same thing. Industries in the EU and US are almost entirely subsidized by the government, because they are not profitable. On the other hand, China's industries are profitable.
Under the covers, this is the difference between Capitalism and a 'well-run' Socialist system...
@@matthewgaddy3232not a zero-sum approach. Common prosperity approaches is the win-win strategy.
Great economic minds we have in the West.
They are profitable, but the profits are soaked up into the stock prices
I think to be correct, U$ subsidies come from printing machines.
both china and US are subsidizing their industries... the main difference is that chinese are succeeding and the US is failing...
They used “kung fu” strategy to kick butts.
China is giving their companies money and the companies build factories, mines and real stuff like that.
The US gave $4 billion to Intel and Intel is laying off 15% of its US staff and will likely use that money to build factories…in China.
That’s the main difference
@@barnabusdoyle4930
When big company got money from govt in the US
They will buyback shares & give bigger bonus to the CEO
@@barnabusdoyle4930
Intel Brags of $152 Billion in Stock Buybacks Over Last 35 Years. So Why Does It Need an $8 Billion Subsidy?
What’s to stop the chip-making giant from shoveling taxpayer grants into more stock buybacks?
LES LEOPOLD
Mar 27, 2024
Common Dreams
Intel, the largest chip maker in America, with 2023 revenues of $54 billion, has just been awarded an $8.5 billion grant from the federal CHIPS and Science Act, plus $11 billion in favorable loans.
In addition to badly needed microchips, Intel produces totally useless stock buybacks. On its website the company proudly proclaims to have spent $152 billion on stock buybacks since 1990. That’s not a typo: $152,000,000,000. Which is why I call it "Stock Buybacks Я Us."
Intel took $152 billion of its revenues, some portion of which could have been used for R&D and building new microchip facilities in the U.S. as well as paying workers more, and instead funneled it to its largest Wall Street stockholders and corporate executives, enriching the top fraction of the top one percent.
CommonDreams
@@barnabusdoyle4930 China gave money to the companies that are building and making useful, practical and beneficial stuffs, the U.S gave money to the companies that took those money and buy back stocks to look good, build somethings that just wouldn't be finished due to bla-bla-bla and dumping money into the MICs which is a blackhole and non-beneficial to the general public.
Chinese firms used government fundings for R&D. American firms used bulk of the government fundings for stock buybacks. Hence, stockholders received good dividends and its CEO received big bonuses. Of course, politicians also received handsome donations.
Intel Brags of $152 Billion in Stock Buybacks Over Last 35 Years. So Why Does It Need an $8 Billion Subsidy?
What’s to stop the chip-making giant from shoveling taxpayer grants into more stock buybacks?
LES LEOPOLD
Mar 27, 2024
Common Dreams
Intel, the largest chip maker in America, with 2023 revenues of $54 billion, has just been awarded an $8.5 billion grant from the federal CHIPS and Science Act, plus $11 billion in favorable loans.
In addition to badly needed microchips, Intel produces totally useless stock buybacks. On its website the company proudly proclaims to have spent $152 billion on stock buybacks since 1990. That’s not a typo: $152,000,000,000. Which is why I call it "Stock Buybacks Я Us."
Intel took $152 billion of its revenues, some portion of which could have been used for R&D and building new microchip facilities in the U.S. as well as paying workers more, and instead funneled it to its largest Wall Street stockholders and corporate executives, enriching the top fraction of the top one percent.
CommonDreams
That's capitalism.
@@gelinrefiraworking as it was intended
Same in Australia, the 51 State of America
In China , they deliver the result. In west, the cost went up and up, the deadline kept postponing and nobody takes responsibility, and no matter what kind of result, they are doing a good job
China’s funds their own infrastructure connecting cities to trade within their own country. Very impressive !!
It also lowers the cost of manufacturing and living for its citizens. Good roads means lower maintenance costs for its road users. Good public transportation means lower cost of living for citizens and less pressure for wage increases, so good for businesses. It also makes tourism cheaper and easier so good for the hotels. Good roads means efficient delivery meaning lower overheads for just in time manufacturing. In the west they use bad roads as an incentive to privatise them to make them a profit centre for banks and billionaires and a higher overhead for the rest of the economy.
@@davidlazarus67the funny thing is that Karl Marx wrote about this benefit over 100 yrs ago. But we're taught that Marx supposedly didn't know wtf he was talking about. Now the West lives on GDP growth through financialization (which isn't real growth) while China makes things in the real economy and kicks the West's ass.
@@jacan4eva I know it’s laughable what the west has been taught. Western economies are basically Ponzi schemes. Layers of Ponzi and all dependent on a tiny real economy.
Your knowledge and insights are really helpful to get a broader picture of what is happening and coming. Thank You from Sweden
Same here in Denmark. I really appreciate him.
Thank you for your work.
Western world businesses are pathetic
Totally in agreement. They don't want to compete on equal footing..so they set up barriers.
@@lawrencepak1917 and they just love to move the goal posts around....
ya think the biz is pathetic ..wait till you learn bout their politician ..
Western companies got used to HUNTING in the CHICKEN COOP, relying on government budgets, exceptions, and laws tailored to avoid competition and the need to improve and become more efficient...
@@ShinjiKataoka west trying to imitate indian biz method. Horny but no outlet
Intel Wins $8.5B in Federal Chip Factory Subsidies and lays off 15,000 employees
Money to stay afloat
The CHIPS act has DEI requirements which makes it infinitely harder to construct in the USA.
There are 2 different issues at hand here.
1. It's important to subsidize companies like the ones that produce microchips, to secure our supply chain.
This is especially a sensitive issue to our National Security, now that through the Russia/Ukraine war, we've seen the threat posed by globalization. i.e: Germany's dependence on energy from Russia, and Putin's decision to cut off supply upon the US and EU sanctions.
2. A separate issue is companies like Intel have a fiduciary obligation to their shareholders. They are legally required to maximize profits for them, and salaries are usually the largest expense a company has.
Simultaneously, we in the US live in a stupor where we think ours is a democracy. But the truth is campaigns are funded by companies, not by citizens.
It is a flaw of legislation that is not looking out for its constituents, not to include employment requirements to incentives.
@@Anil18834 Change campaign law, and use the one in France.
Putin didn't cut of the Gas ,the US destroyed the Pipeline and Ukraine has just cut off the last open Pipeline, but don't worry France and other EU countries are still buying LPG but they just don't want the sheeple to know😊😊😊
US & EU subsidies come from their $$$ printing machines.
The money has to be backed by something. And that something is debt.
Massive amounts of increasing debt will place a bigger burden on the tax payer.
Expect massive cuts to alot of things you take for granted.
@@bubba842They never plan on honoring their debt, that’s why they need wars.
That's absurd. Do you understand that
1. Every country has its own "printing machine, "
and
2. Printing money devalues the currency?
Technology won’t help the west, it will just amplify their stupidity!
@@Anil18834 The point is that only few countries can print at their own leisure. US and Europe can print because they're the 1st and 2nd world reserve currencies allowing them to export much of their inflation to the rest of the world. Other countries can't do that.
You never fail to inform, Thank You!
Facts can be a problem for some people. Ask Scott Ritter!
Yes you seen what did to him. And most Americans think they have free speech and they are free from zionist control 😂🎉😂 I love Scott and the american people. We dont blame them.
😂😂😂 Scott Ritter should change to another name, another country.🎉
Your Financial analysis are too Good Sir,Hats Off to you...I think some can write thesis and do PhD by just studying your analysis...Even the economist don't have that good of an insight and indepth knowledge. I really admire your knowledge Sir. Once again Hats Off to you Sir!
Hahahah the economist you mean mi6 tabloid 😂
It's impossible to compete with China. We haven't got the supply chain, logistics and most of all, an insatiable desire to succeed
That's because the priority of the US is elsewhere....military control of the whole world. Then they woke up after seeing the deep investment the Chinese put into the development of green energy, high tech and infrastructure, having a head start of at least 25 years. Now being late and unable to catch, the US is now embarking on a strategy of smearing, hobbling and sanctioning.
No your problem is zionism. 99% of your leaders care more about Netanyahu than the American people. Wake up
Infineon just opened a wafer fab facility in Malaysia employing 900 people. After 10 years it looks like Make In India remains a slogan.
That's democracy and cronyism for you.😂
instead of focusing on small issues like wafer fabs, india is working towards a much bigger goal of akhand bharat. western leaders need to learn from the strategic wisdom of viswaguru india. /sarcasm
@@andrefalksmen1264calling India a democracy is an insult to the word democracy. Cronyism is accurate though.
@gelinrefira it's democracy. India suffers the same deficit as all nations that adopt democracy before undergoing Economic Development suffers. By placing the legislative and executive powers in the hands of a negative multitude, even more so one which is legislative and executive powers in the hands of a negative multitude, even more so one which exist on a subsistence level, you naturally create a system which is one of cronyism and patronage. As those who barely are surviving for today cannot consider the consequences of tomorrow. All of this is intentional, the error of Western liberalism, including democracy, is one of the greatest tools the West has created for the regression and stagnation of non-western societies.
@@andrefalksmen1264 which is why most of the Global South will remain in long term stagnation. People talk about the BRICS as emerging bloc when in fact in economic terms China and Russia have more in common with the Global North. The fact of the matter is Democracy in the developing world today is a religion, no questions asked, just go with the system.
I wish information like this was on mainstream western media.
Ain’t going to happen!
He is quoting the wall street journal. That is about as "mainstream" as you can get.
NO - China bad is all you are allowed to hear
what do you mean? it is wall street news.
@@fannyalbi9040 But its not though is it - thats just half of it the rest is context and facts about China.
Thank you, Kevin!
US taxpayers need share their income with Ukraine and Israel ,they are carrying two country on back ,haha
Hand rubbing intensifies
The US is the first superpower in the world due to faaaar more than American ingenuity and GDP alone.
The US, like every other country, use their resources (I should say ours, I'm American) that means military, diplomatic, intelligence, influence, etc., to further their own interests. That is the point of Foreign Policy. We do this to increase our wealth, or political influence to serve our purposes in terms of national security, and/or in order to improve the quality of life of our citizenry.
Aid to any country, be it Israel, Saudi Arabia, Ukraine, etc., comes with strings attached and is but a move in a much larger chessboard.
It's all aimed at retaining power. Power, brings us more money, or a tactical advantage over other countries.
In the case of Israel, Israel is just one of many countries we give aid to in the Middle East, so we can retain control of oil supply. This is what has made the US the 1st superpower in the world approximately during the last 100 years
America doesn't get anything from Israel except an insubordinate out of control false ally who goes around sabotaging it's diplomatic efforts, pulling it into wars and humiliating it.
In terms of aid to Ukraine, it's a war of attrition that weakens our competitor's military and economy, while keeping it occupied in other matters rather than attacking us.
It's essentially, defense on sale. We don't have to bare the costs of a military campaign, we get to dump outdated armament, our huge weapons industry gets a healthy revenue, we don't have to commit the lives of our own troops.
Also, if Ukraine wins, they have to pay us back a significant portion of the aid received. They can add to our intelligence and we'll have acquired a significant foothold near Russia and China.
In addition, Ukraine provides inexpensive grains and is a huge food source for countries in North Africa. A hungry people, are the basis for recruitment of rebel fundamentalist groups that destabilize the area.
Our position as the 1st world power, is not only being challenged, in fact I believe won, by China. It is also dependent on a huge ecosystem we have created.
Is any of it pretty? No, power never is pretty. It comes at the expense of the less powerful.
Yet somehow, we all end up voting for presidents that offer a better economy, when the truth is US presidents have little power over the economy and no power over the Federal Reserve. What they do control is Foreign Policy, and we Americans, seldom question how the sausage is made.
@@Anil18834 but is this not a totally nonsense idea to go about deliberately taking advantage for others to benefit yourself when you know that u must reap what you sow. Better to stay at home and mind your own business than planting seeds of your own downfall. So much for foreign policy politics
Information like this is very hard to get nowadays when politicians talk about "alternative facts"
Alternative illusion to be precise😂😂😂
As a US citizen, I think our politicians have lost contact with reality. Wish I was wrong
Because they live in Thanos alrenate universe
Kevin, you have created a very remarkable channel here. Calm, factual, rational. thank you.
What I like about you … a breath of fresh air, straight talk honesty about government subsidies and other business practices
Again kudos to you Kevin for the indepth analysis 👏
Why isn't lobbying politicians in the USA for subsidies considered as form of corruption when it involves $$$$$$ in return for their campaigning expenses which are actually taxpayers. monies. It is corruption by any definition when both parties benefit (politicians & lobbyists) at the expense of another party (taxpayer). Where are the Law enforcers? What a rotten system.
They control the media: "Manufacturing Consent".
We are fucked
S/b 'We have been...' LOL
@matthewgaddy3232 brother buy land in africa. We love you and wellcome you. Open a business africa with Chinese connections. Love from Denmark via somalia 🇸🇴
That’s an accurate forensic prognosis. No need for a lengthy evaluation report
So true. Time to save in RMB & dump USD
Facts! It's over... 😢
Another well researched piece that tells it as it is. Welldone!
Well, lies said one thousand times will make people believe to be truth.
Lies that are made n financed by American taxpayers money…😅😅😅
Very much appreciated the data shown and explained objectively.
AWESOME FOR MOTHERLAND, CHINA & BLESS MOTHERLAND, CHINA 10,000 YEARS & BEYOND!🙏🙏🙏👍🇨🇳🌏☮️🙂❗️
Video summary : how the whole ŰŠ system is pathetic, again😂😂
Kevin,
this is how American democracy with capitalism works...a few rich capitalists controlling the politicians, and through this way and getting the taxpayers money
And also controlling what they want you to read and hear. Campaign contributions should be limited to a maximum of couple thousand and outlaw lobbyists!
@@yunko9369few 🇮🇱 like Peter thiel trumps puppet master. He owns elon. Probably used epstien to blackmail him
It's actually American plutocracy .... to describe it correctly. It's not democracy. 😂
If the average American understood this, things would change. But the majority are blind. The indoctrination is several generations deep and it starts from elementary school till death.
US subsidies are based on money created out of thin air. Dollars are also the world reserve currency, the effect of money printing has less of an impact on inflation and other negative effects. China has to print money, as well. But their fiscal policy is tighter.
You can argue that China is throwing its money away on unprofitable companies. But if that is true, why are they so competitive on the world stage? Keep in mind, the US has been subsidizing tons of industries, yet those corporations (Boeing, GM) have terrible reputations.
I don't think China is printing money. Their daily trading surplus is at least 2 billion dollars.
@@matthewgaddy3232every country prints up money
The difference is when people say printing up money
What they really mean is the US Treasury issues new external Sovereign Debt
Where the US FED buys that Sovereign debt and puts it on its balance sheet
What people are really talking about is the Quantitative Easing the USA does
@@sfukuda512 Agreed. Also manufacturing costs in China are a fraction of those in the US. China has a much larger profit margin and the capacity to compete with price wars.
If Boeing and GM were Chinese companies, they would have been history, I guess.
@@cb250nighthawk3 probably
there are 200 EV companies the Chinese Government feels that is too many…
But they will be hands off let nature take its course
👇
A brutal elimination round is reshaping the world’s biggest market for electric cars
Analysis by Laura He, CNN
Published 11:05 PM EDT, Wed April 24, 2024
But all of the country’s more than 200 EV manufacturers are now grappling with huge oversupply, and experts predict many smaller companies will not survive the fiercely-competitive environment.
CNN
Great piece of journalism. Very impressive insights
They subsidize, we subsidize. It LOOKS like they get more for their subsidy "dollar" than we do! OURS might sort of dry up and blow away from the looks of it. I have seen this from my lowly position as a working technician in a few Universities. What seem like pretty large sums of money will fall on a lab (with publicity) and have NO EFFECT that anyone can see. Maybe a room full of computers is purchased, but we already HAD that. In many cases it's just NOTHING. I have seen people get a research grant and just NOT DO the research!
You make your viewers think from a completely different perspective. Thank you.
Difference between us and China is short-term and long-term gains.
Thank you Kevin for another eye opener.
Subsidies do not make a company succeed...their product's value and quality is what sells.
many tks for this report
The national pastime for Americans is Baseball. China is in the Major League while America is in the Minor League, and they have come to an understanding of who is superior.
I don't see anything wrong with subsidizing if you have the means to do it. The only issue in the US is how the money is being used. Usually it goes to the greedy executives so they can buy their yachts and private jets.
@@monkeyking-self-proclaimed7050 I'm sorry, but your comment has no basis. Are there absurdly wealthy people in the world? Yes.
But that's not the way subsidies are "usually" spent.
If you're interested, there's more sober conversation on the matter on the comment made by @alexlau777 .
Kevin, hats off again to a real analysis. I see the same kind of stuff in other areas, principally education, where a lot of "think-tanking" mascaraing as academic work that are there just to provide the grease for powerful interested parties.
Excellent information as always!! Thank you!
Just happed to find this great channel. Very informative and insightful!! Thank you so much!
US Air Force spend US$1,200 to purchase one cup used by the Air Force. Think about how many cups are now using by the Air Force, and how many similar situation happened in the Government bureaucratic environment ? Subsidy ? Yes, the above is a US government subsidy, a systematic subsidies, but to whom ? Is the subsidies go to the right body ? Or it went into the pockets of some fat cats ?
After all who are the law makers in US ? The civilian or the capital consortiums ? Who make laws and decisions where the tax money goes ?
Who made the laws to pay the least tax, or even evade tax ? Who are rigged behind the system? The capital consortiums or the civilians?
President of US is scare to unfold how much tax he was paying ? Who is that US president ?
Look, Sir ! It is all about the "system". Who this "system" is working for ? And how the money resources being allocated. For sure the power in US has been falling into the hands of the consortium elites who either pay very minimal tax, or to the extreme, evade all taxes.
What are the complaints for ?
By the way, as at today, US only takes up 17% of China total export. If you calculate the total cost of material and labor from this 17% export to US, deduct it from the selling price, the trade profit which China made on US is very minimal. US money is not subsidizing China development, but subsiding US own greedy fat cat capital consortiums elites, or just by sheerly printing US Green Back to fulfill these elites' desire on the expense of other countries.
Wow! You are really a business man, with such deep insights.
Intel got 8 billion to build fabs and hire more people and we all know what happened afterwards
Nope. It's not taxpayer money. And it is not borrowed in any real sense. It is public monies created by the Federal Government and spent into existence. It is supposed to be spent on a public purpose. China creates its own money just like the USA.
China has better industrial policies than we do. America is not a serious country anymore. Most people don't know what money is or where it comes from or even what a public purpose is.
The basics of MMT, or even more simple: basic money operations by banks and the federal reserve.
But inflation appears drawing money from taxpayers.
" is not a serious country anymore:" well said - its a hyper financialised oligarchy. Everything is done for the further enrichment of the rich - even if it damages the country and the institutions.
When de-dollarization is occuring more and more the cost of any dollar creation is inflation that affects US more as dollar is less in demand and it will weaken dollar as a result.
This was not really the same thing when dollar is used as reserv currency and used to settle international payments.
your sweat，may be bloodwork（taxpayer）those people，the system collect money from you
Thanks for the clear and precise explanation.
Errr US Chips act and giving billions to Intel and yet Intel fail big time .... duh
Intel employs too many Indian engineers.
@@sinic1978 🤣
I like your style a lot !
Cheers from south western Canada 💪🏻❗️
Every time you read a think tank report just ask the question who funds it and who will benefits from it. Follow the money trail.
The US and it's politicians cannot reverse the downward spiral...
We live in interesting times..
You have always delivered the clearest information on all the subjects you have covered. 👍👍👍
Quote by Ray Dalio, the $50-billion investor and founder of the world's most successful hedge fund, "The United States is a poor country that still thinks it's a rich country. China is a rich country that still thinks it's a poor country."
The chinese know rhey are rich, they just don't care to announce it. If the west thinks they are poor, they prefer to let them keep on thinking that.
Just like India a developing country behaved and acted like a super power nation.
China is a super power nation but still said they are a developing country.
@@hengongchua6250 Significant parts of China are poor and developing. But less poor than they used to be. And significant parts of the US are poor but not improving.
Too bad he never said that...
@@Waingro808 Yes he did. And then his fellow billionaire Musk said, who has large ops in both countries said, "China rocks. They're smarter, they work harder, and they don't complain." Fully agree based on my experience. That's why China is winning. They will soon be #1 already, and probably already are #1, just as they were before for millennia. As billionaire Jimmy Rogers says. China is the only civilization to have repeatedly been #1 already before. None other rose to the top and fell and rose to the top again, and fell. And now will inevitably be tops yet again (and probably already is).
US & Europe are subsidizing their industry but also protocetid them by high tariff from import or even sanction.
Balanced analysis. Not one sided claims of China subsidies only
Very insightful point and good analysis!
Thank you for information ❤
The G.O.A.T. commentator on you tube!
Best Wishes from Australia.
Agreed. Also, the tax percentages that the very wealthy pay are considerably lower than what the majority of the middle and lower class pay in the US.
That means the state, should be garnering more funds than it does. So, we have less funds to incentivize companies that could, for example, secure supply chains.
Another great report! Thanks.
You are a brilliant commentator. Thank you for such an even handed approach.
Thank you for clear helpful analysis of economic issues concerning China.
America gives subsidies to its businesses all the rime. What's the difference???
This channel is gold. You should have a million subscribers.
THE REAL PURPOSE OF A MIRROR IS TO SEE WHERE YOUR PROBLEMS COME FROM !!
问题在于，美国的政客和精英们没空照镜子，他们忙着在联邦财政支出的蜜罐里吸血。
China is in another league so china need to improve and beat themselves, meanwhile merica is destroying itself.
Great video again Kevin 👍🏼those writers can’t fool you because you have the figures to prove they’re wrong .
Great video as always.
No wonder at the last NATO meeting the members were discussing how to confiscate Chinese assets held outside of China.
And the same week. Italy prime Minister went to china to ask for investment and to buy fiat from stilantes 😂😂😂 you can't make this up. The sameone that left the bri project.
@@remix-yy1hsand from the far right of the political spectrum … although some may argue she isn’t …
Subsidies benefit consumers making it affordable. Excellent way to put tax money back to people 👍♥️🇨🇳
I enjoy watching your videos which consist great background information and analysis requiring great effort. They have so much content quality yet deliver the message in simple, clean words without bias. You deserve to reach wider audience and I sincerely believe it will be so. Be good :)
Serious research in your video sir!
Thanks
Canadian governments give $15 billion to Stellantis to build electric-vehicle batteries and ban Chinese EVs in Canada to help Stellantis survive or pocket the subsidy comfortably.
Did you know that Stellantis has a joint venture with China's Leapmotor to sell EVs in Europe ? It means the Canadian government is helping Leapmotor if they are giving money to Stellantis LoL
Kevin nails it.
Hey Kevin!It's so nice to see your vision and insights in TH-cam and Bilibili😊I am a Chinese live in Shenzhen,work in China sourcing field.I found we are exactly at same field!Wish to be friend of you,and if you come to Shenzhen please give me a chance to drive/show you around if you available🤝
Brilliant
CATL is a listed company in HK so many international investors have their hands on it
❤Thank you very much for this information .
USA priority is in doping, smoking, drinking, drugs. cancer, obesity, diabetes, etc.?
This fundamental difference of subsidies drives the West mad at China. 😂😂😂
The biggest difference between Chinese investment and US investment in private companies is that the Chinese companies have to actually use the money to make things. If they pull what US companies do, stock buybacks or increase in executive pay, their executives would be arrested, tried, and sent to jail.
In the US public funds are used to do stock buybacks and the company is celebrated for making the stock prices go higher. But manufacturing goes down.
Merit vs. profiteering is the difference and why it works in China but does NOT work in the US or the West.
It's another great and very informative video！
I like your demanteling, good analyces.!
Eye-opening information! I had no idea.
Today's democracy is like a talent show: the audience can press the buzzer to vote, but they have no say in deciding who gets to stand on the stage; that's traded behind the scenes.
BYD took subsidies to invest in R&D, GM took subsidies to buy back shares so share price goes higher to reward senior managers.
Dang….this sounds really bad for CSIS or other US think tanks.😂
But everyone on the payroll in CSIS would not agree with you on that any bit. They all live not only happily ever after, but also stay filthy rich and live luxuriously.
Why is the US n EU nowadays turning into a little bitter old lady.
Keep bickering about other's success.
Why must the world have to be in lose lose position in the eyes of these so-called 1st world countries...😢😢😢😢😢
If one is Smart and profitable then he can subsidize in a larger scale to assist their companies to become larger and more profitable.
This is great insight.
8:51 the facial expression said it all.
Great presentation
Love your video. You be safe too.
Maddening
Dear Kevin your sir, your knowledge of finance is too good not to read and most informative and deep knowledge. I wish you all the success and knowledge benefited to all your reader. Thanks again.
Small countries are the ones truly screwed by the actions of these two. In twenty years, those without resources will face an existential crunch.
Good analysis.....
Kevin has very acute observation on this (as always as on other things).
Thanks!