Thanks to U.S. Presidents Barack Obama, Donald Trump, Joe Biden and, now, Trump again, China, Russia and India have safely weathered the financial crisis that started in 2008. The crisis, after which the world was never the same again, was a departing gift from their predecessor, President George Bush, the son.
All three of these countries have a strong banking system. They had large foreign reserves when the Bush Recession started. Especially, China was not at the epicenter of the crisis like the U.S. and Europe. They are trade-dependent countries. Before the crisis, their export incomes were around 40% of gross domestic product (GDP). In other words, unlike the U.S., they were not deficit countries. They would buy less and sell more, and if they sold their products, they were happy; if not, they’d lower the price.
Remember, “Made in China” means “dumping” in the retailer lexicon. Yet, if the overall global economy is in trouble, as it is now because of the Hormuz closure, China cannot export. Again, unlike America, China is dependent on peace, not endless wars.
China replaced the Union of Soviet Socialist Republics (USSR) as America’s Cold War nemesis. President Ronald Reagan faithfully prepared the funeral service for the soul of his favorite “Evil Empire." However, the honor fell, again, to George Bush, the son, who chose China, not the Russian Federation, not as an adversary, but as a candidate to be used against Russia and to prevent it from becoming another USSR.
