Hello everyone. I hope things are nice for you. I hope life is good to all of you. As for myself, I am doing quite well. Lately, there has been a very low amount of posting from me. And it is very easy to attribute it to the very bad situation in the market. And for the most part it is true. I have incurred losses which I am yet to recoup. I'm having a bit of difficulty on that front plus there's my regular life which is not always a bed of roses. Anyway I could blabber more about my life but I'll leave that for some later date. Today I want to again talk about some hiccups in the macroeconomic stage which eventually hits us in the crypto space. That is something we are seeing for the past year now. It is quite relevant.
This time it's out of China. They have announced that they have a trade surplus. Fine. Trade surplus is very common to have. But the problem is that they have $1 trillion worth of trade surplus, which means they are selling a lot more than they are buying. Now that might be a good thing. But in largely around the world, it is considered a bad thing. It is mostly because of the imbalance of trade. That is something nobody wants humid because due to this trade surplus, it is evident that China does not import much. So since China has the biggest single cluster of population in the world, everyone is missing out on this huge market. And this does not look good for global trade. Since people of China don't need it, why should they bother? The reality is due to their attempts of making their exports competitive abroad, China has devalued their currency and due to this devaluation the average Chinese cannot spend freely and since they cannot spend freely, there is little requirement for products in the Chinese market and that eventually drives imports down. And another reason for China to require less imports is because they have now specialized in a lot more things than before. A very common example I can give is cars if you keep track of the car culture and you will see that the Chinese have taken over completely, especially in the EV sector. Chinese electric vehicles are cheap and provide better range. Better software everything. So obviously Western companies are drying up in China. Same as those. There are many other sectors and which are drying up in terms of demand inside China because there are now Chinese counterparts operating at full swing.
The currency evaluation due to the competitive export has led to a lesser quality of life for the average Chinese. However I have seen that there are reports about the government trying to reevaluate the Yuan again. So if they do, there might be some movement in the crypto market as well because the Yuan is a very important currency in today's market.
