Sep. 6 at 1:24 PM
The Global Capital & Labor Loophole
1/2 The true insanity of macro: The US trade deficit with China is sitting at
$157 Billion (per the debt clock). India’s deficit with China is hitting a staggering
$112 Billion.The US deficit is only slightly higher, but look at the extreme capacity difference between the two economies.
$SPY $QQQ
The US can float its massive gap seamlessly because it prints the global reserve currency and commands the offshore Eurodollar system.India, however, doesn't print USD and has zero Eurodollar banking leverage. It can't just clear a digital balance sheet out of thin air.
$INDA
Instead, India literally has to replace labor worldwide to secure FCNR(B) based leveraged dollars—grinding on pure human capital—only to hand those hard-earned greenbacks straight to China for microchips, electronics, and hardware components.
$MCHI
Continue...
