patrick.net

Fuck you, but please keep buying our weapons so we can maintain control over reselling and targeting decisions?

U.S. officials have told European allies they want them to keep buying American-made arms, amid recent moves by the European Union to limit U.S. manufacturers' participation in weapons tenders, five sources familiar with the matter told Reuters.

The messages delivered by Washington in recent weeks come as the EU takes steps to boost Europe's weapons industry, while potentially limiting purchases of certain types of U.S. arms.

We generally deliver export versions of products, with reduced capabilities. Same as the Russkis, who supplied the Iranian Revolutionary Guard with T-72 tanks without IR sights and Manual (crank) Turret Traverse, for example.

Gotta maintain that superiority!

In WW2, Swedish Bofors 40mm Guns were used by other sides. The crafty Swedes allowed the German Krupp arms maker to see new arms developments prior to WW2. Granted, Krupp owned an illegally-high +30% share of Bofors during Hitler's rise to power before WW2. Swedes are crooked, and anything but neutral. They shipped steel to Germany during most of WW2, remaining "neutral." This was also to avoid getting invaded by Germany, unlike Norway and Finland, Sweden's neighbors who stood up to the Axis. The US pursued diplomatic means to stop Swedish steel sales to Germany, but the Swedes didn't agree to stop until it was clear Germany was losing the war.

Ok, so here's what those crazy Chinamen have been up to.

They have been dumping treasuries and mortgage backed securities and buying up European sovereign debt obligations. They are selling so much that the real rate of return on 10 year treasuries is about 2%. That is 2% after inflation, and it is even higher for longer dated maturities. This is unreal for treasuries. Meanwhile European bonds are paying less than their inflation rate. So buying those bonds is a guaranteed loss in value over time.

Under normal circumstances this would grenade the Euro, but the Chinese are just buying so much of the currency for dollars that it has sent the Euro higher against the dollar.

The sheer monetary losses the Chinese are suffering are enormous.

The Europeans lowered their interest rate just this week and are looking to do it again in June. They are also gonna issue a huge amount of bonds supposedly for defense, but the politicians will squander the funds on pet projects.

The only problem is that trade follows investment flows. The Europeans are gonna be swamped by Chinese goods.

Misc says

The Europeans are gonna be swamped by Chinese goods.

That they won't buy. I don't care to learn about treasuries and bonds. Doing fine without that knowledge. I do know Euros are pinkies up when it comes to products. I don't see them buying the Temu type bull shit. Americans are the Chinese primary source of revenue. Good luck selling to Euros.

Misc says

has sent the Euro higher against the dollar.

Which is going to hurt European exports big time.

MolotovCocktail says

Misc says

has sent the Euro higher against the dollar.

Which is going to hurt European exports big time.

This is the fuck European thread. Fuck 'em. You're the OP. I'm not sure why we give any shits about anything across either oceans. It's two different worlds. No one with a thinking brain would think Russia, Europe, China, India and Africa would team up and do shit. They have 4-5 aircraft carriers?

Reality is we'll have to bail them out in the future when they cannot play nice in the sandbox. US needs to just stop doing stupid wars for 2 decades.