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?
Leave your comments or join our topic and post directly HKD Strengthens: Can China Stocks' Rally Continue? to win tiger coins~
A tool to boost your purchasing power and trading ideas with CashBoost! Open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with upcoming 0-commission, unlimited trading on SG, HK, and US stocks, as well as ETFs. Find out more here.
Other helpful links:
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
They are the only would bear the cost of tariffs, not Chine, not Canada, not the other countries.
Trump only view his position as the United States President top priority.
Image the world where every US citizen can't buy what they want but only limited to what they can afford?
Inflation would spiral, goods become scared and expensive to consume, and US only trade within their own States?
This is the hard truth, economically and sociologically.
No one in the world would benefit from Trade War, let alone any war.
Dictatorship won't will the battle, its only worsen the bilateral relation between countries and brings only global recession.
@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???
毫不奇怪，东方经济体开始崛起，即使目前只是温和的。他们的势头可能会在短期内加强，尽管一些疑虑仍然存在。
随着日常成本继续攀升，美国通胀可能会再次飙升，这可能会导致人们重新考虑假期等非必要支出。