I’m very scared, it feels like the world is about to fall apart. I will also remember a passage that I heard, and which does not seem to be a joke: you will own nothing, and will be happy! And it seems that this is gradually becoming a reality.
What scares you?
The only thing right now that seems to be happening is a possible lost decade for China. Public debt, including provinces, is at 200% of GDP, the country is in a mild deflationary cycle, infrastructure is built out, retirees are becoming a large percentage of the population, most tech firms replaced their CEO’s with party loyalists, and economic rivals are seeing their currency depreciate.
There will probably still be some economic growth in China, but it will be a lot more limited.
That said, this requires the USA to not be stupid, which it seems to be doing right now.
The only thing problematic to their performance is the CEO replacement.
China can deprecate their currency however much they want by buying whatever they want in other countries.
They can be as competitive as they want to be.
With the infrastructure built out, they can focus with full force on developing any technology that they don’t master yet.
All the western profits will vanish when the west has to compete on price with Chinese highend products. That means crisis for the west, not for china.
China has enough migrant workers left that they don’t have to scale down, even with an aging population.