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overconcentrated supply has entered the room...
of Inflation Reduction Act "tax credits" instead of "tax cuts" for corporations

Remarks by Secretary of the Treasury Janet L. Yellen at the Economic Club of New York (ECNY), 13 June

garbage in

Countries around the world look to the state of our two economies, but also our interactions, because they are crucial to global growth [volume or value?]. Together, China and the United States represent 40 percent of global output [volume or value?] and have the two largest [volume or value?] financial systems in the world. I believe that America's fundamental economic strength means that the United States [OFAC] has nothing to fear from healthy economic competition [for capital].
ofac.treasury.gov "non-market mechanisms"
Counter Terrorism Designations; West Bank-related Designation, 14 June
Russia-related Designations; Publication of Russia-related Determination; Issuance of Russia-related General Licenses, 12 June
Furthermore, OFAC is publishing an updated "Compliance Advisory to Foreign Banks on Russia Sanctions Risks" in order to provide additional guidance for foreign financial institutions.
Global Magnitsky Designations, 11 June
Counter Terrorism Designations; Iran-related Designations, 10 June
As I hear frequently from American businesses, China represents a huge market for American manufacturers and firms, supporting over 700,000 ["FACTORYLESS"] American jobs. President Biden and I reject the notion that "decoupling" would be in any way beneficial for the American economy. At the same time, we can only realize the potential benefits of our economic relationship if there is a level playing field.
Fort, T., "The Changing Firm and Country Boundaries of US Manufacturers in Global Value Chains", 2023
I am particularly concerned about China's enduring macroeconomic imbalances. China is a global outlier in terms of its very high saving rate: 45 to 50 percent of GDP for roughly 20 years. This is roughly twice the OECD [18 net "global" trade importers] average. Such high savings [OECD "investment" or CN disposable income?] reflect a lack of sufficient domestic consumption demand and risk leading to an expansion in China's external surplus [wut]. At present, China is directing an increasing share of savings into manufacturing. Specifically, China's industrial policies channel savings into unusually high investment rates in select industries, leading to excess capacity.
garbage out
This dynamic is a problem for China, as excess capacity usually indicates the presence of economic inefficiencies [?] as resources are trapped in less productive [overcapacity] firms and industries. Indeed, the share of firms losing money [?] has been rapidly increasing, recently hitting a level not seen since the early 2000s. China already accounts for 30 percent of the world's manufacturing output.
"Together, China and the United States represent 40 percent of global output"
It cannot rapidly grow that share without causing displacement [?] globally. And China cannot assume that the rest of the world will rapidly absorb huge quantities of excess production to the detriment of domestic industries in other countries.

This overcapacity threatens [FACTORYLESS] American firms and workers, along with those around the world. We saw in the past how overcapacity can decimate businesses here at home.

archive value pricing
by Cat on Fri Jun 14th, 2024 at 07:08:42 PM EST
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