🦋 Suicidal USA Crackdown
Huawei is a world leader in 5G technology. The USA has pressurised other countries not to use 5G from Huawei on the grounds that it would compromise security.
This has slowed down the adoption of 5G. Has anyone in this board used 5G? How much better is it compared to earlier mobile phone technology?
This week the Mobile World Congress 2023 is being held in Spain. Huawei is showcasing 5.5G there. 5.5G offers substantial advancement over 5G.
It will allow immersive interactive experience. Remote operations of complex and fine procedures will be possible such as performing surgery remotely. A on site surgeon will have a remote surgeon beside him to help him. Both of them will be able to see the patient and each other clearly. If Robotics become advanced enough, the remote surgeon can even do the surgery himself via the robot.
The USA has tried to suppress Huawei by also stopping suppliers like Qualcom and Intel from providing advanced chips to Huawei.
As Huawei is still progressing, the USA is considering broadening the ban against Huawei.
Such a crackdown will temporarily hurt Huawei and China.
But in the end it will hurt itself and its allies. They and their company will lose business and market share.
The crackdown will make China and companies like Huawei develop their own technology and aim for self sufficiency.
One day it will not be you refusing to sell to me. It will be I do not need to buy from you. My own products are better than yours.
When that happens it will be the USA , its allies and their companies who suffer.
Refusing to use Chinese technology will deprive its people from enjoying the latest technology.
Huawei is now launching 5.5G. When 6G comes along, Huawei is likely to be in the forefront.
Currently Andriod and Apple IOS are the 2 operating systems in use. Huawei is developing its own operating system, Harmony.
It does not need to develop Harmony if it was not pushed into doing so by the USA. Will one day Harmony turn out to be better than Andriod and Apple IOS?
The USA administration does not seem to be wise and is commiting suicide.
Besides the technology front, suicide also extends to the economic front.
The USD currently has the dual status of World Trade Currency and World Reserve Currency.
Trade around the world is done using USD. Inter country payments via SWIFT has to go through USD. Even though an Australian company pays a UK company in Sterling £, the way SWIFT works will involve the USD. The amount that is deducted from Australia and credited to UK is based on converting Australian $ to USD and converting USD to £.
Because world trade is mainly conducted in USD and payments also go through USD, countries hold most of their foreign reserves in USD and US Treasuries.
The buying and holding of US Treasuries is other countries lending money to the USA. From being the largest creditor nation (lending money to other nations) the USA has become the world largest debtor nation.
No other country in the world owe other countries as much as the USA. The US treasuries held by other countries is debt owed by the USA and it has to pay interest on those treasuries.
Because of the low interest rate environment following the 2008 global financial crisis, the burden of paying interest was not heavy. With the sharp rise in interest rate for the last year, the burden will become heavier.
The current national debt of the USA is USD31.46 trillion. Source of this figure is the US Treasury.
The USA became independent in 1776. It took 235 years from the date of Independance to 2009 when Obama became president for the national debt of the USA to grow to USD10 trillion. 8 years under Obama to double it to USD20 trillion. About 5.25 years later, it has grown from USD20 trillion to USD31.46 trillion.
The growth in national debt is going parabolic. Is this sustainable?
The people of the USA is enjoying life by living on borrowed money. This is known as Wealth Effect. Having money to spend (including borrowed money) gives the feeling of being wealthy.
According to the World Bank having a Debt to GDP ratio of above 77% for an extended period will have negative consequences.
By imposing sanctions on other countries, and stopping them from using SWIFT, the USA is driving them away from using the USD.
The BRIC's + countries of Brazil, Russia, India and China are moving away from the USD. S can be taken to include South Africa (not that big an economy). A game changer will be the + which refers to Saudi Arabia the most important country for oil trade in "Petrodollars"
More countries will be joining them especially if Saudi move away from Petrodollar.
When the use of USD for trade and payments fall the countries of the world will reduce buying and holding US treasuries for their foreign reserves.
The double blow of the USD losing its status of World Trade Currency and World Reserve Currency will mean that the USA will no longer be able to enjoy the Wealth Effect of living on borrowed money
By imposing sanctions and stopping countries from using SWIFT the USA is commiting economic suicide. This is happening together with the suicide on the technological front 🦋
