East Rising, West Declining? How Did Buffett Warn of Trade Deficits in US?
Recently, more voices have discussed the idea of “East rising, West declining.”
Today, People's Bank of China (PBoC) unveiled 10 comprehensive monetary policy measures across three categories. China stocks opened high and then closed down.
Quantitative measures: Includes actions like reserve requirement ratio (RRR) cuts to increase medium- to long-term liquidity and ensure abundant market liquidity.
Price-based measures: Involves lowering key policy interest rates, reducing rates on structural monetary tools, and cutting public housing fund loan rates.
Structural tools: Introducing and strengthening targeted monetary tools to support innovation in science and technology, boost consumption, and expand inclusive finance.
In 2003, Warren Buffett told a story about two fictional islands: “Squanderville” and “Thriftville.” $Berkshire Hathaway(BRK.B)$
Thriftville worked hard, exported food to Squanderville, and in return received Squanderville’s bonds.
Over time, Thriftville accumulated so much debt that it eventually stopped holding bonds and started acquiring land — shifting economic sovereignty without a war, simply through purchases. Buffett used this story to warn about the dangers of persistent U.S. trade deficits.
Back in 2003, there was no real “Thriftville.” But listening to this story again in 2025, should we start taking the “East rising, West declining” narrative more seriously?
If the shift from West to East is real, then isn't the key question when it will happen?
How do you view this?
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他們是唯一會承擔關稅成本的人，而不是中國，不是加拿大，也不是其他國家。
特朗普只認爲他作爲美國總統的職位是重中之重。
想象一下這樣一個世界，每個美國公民都買不到他們想要的東西，而只能買到他們能負擔得起的東西？
通貨膨脹會螺旋式上升，商品會變得可怕和昂貴，美國只能在自己的州內進行貿易？
從經濟學和社會學的角度來看，這都是殘酷的事實。
世界上沒有人會從貿易戰中受益，更不用說任何戰爭了。
獨裁不會進行戰鬥，它只會惡化國家間的雙邊關係，只會帶來全球衰退。
@Blinkfans @koolgal @MillionaireTiger @JC888 @BillionaireN
With a supporting backdrop of pro growth policies, innovation driven sectors and increased capital flow, I believe that the China stocks rally has the potential to continue.
However it is important to remain mindful of global economic uncertainties and the inherent risks in a market transitioning from a period of weakness to optimism.
USA
Australia
UK
Canada
New Zealand
why those countries???
USA
UK
Australia
Canada
New Zealand
Why???
It’s no surprise that Eastern economies are starting to rise, even if only modestly for now. Their momentum may strengthen in the near term, though some doubts remain.
U.S. inflation could spike again, which might lead people to reconsider non-essential spending—like vacations—as daily costs continue to climb.