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Tamsin's avatar

PP quotes, "If DeepSeek does indeed crash the entire American AI industry — and possibly even the stock market — it will be because bureaucrats in DC tried to control the technology sector in ill-advised ways."

There was no way for the US to offshore all other manufacturing, to de-industrialize in favor of financializing the economy, these past thirty years while holding some high-value manufacturing harmless and in-house.

Manufacturing ecosystems don't work that way; to manufacture big widgets you need many small widgets to hand at the right price and volume and quality.

I think a few too many people, including PP, want to blame our current troubles on recent US export controls, rather than on thirty years of de-industrialization and financialization in all Western economies. And it was bought into by all right-thinking people in white-collar jobs in those economies enjoying a high standard of living while arguing about green energy and gay rights. Supranational moneymen call the shots, and they were satisfied with China becoming the workshop to the world. We all enjoyed it while it lasted. America did not "do this" to Europeans unilaterally just now.

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Ray-SoCa's avatar

With the current President of Taiwan this won’t happen: “ Ask yourself, if you were Taiwan would you ship all your chip factories to the US or … do a deal with China?”

China is offering huge salaries to recruit Taiwan Engineers and Scientists.

The growth of Taiwan foundries issue to US laws and regulations that incentivize outsourcing. Outsourcing capital costs increases the return on capital for U.S. public companies, giving a higher stock price.

We will see what Trump does to rebuild us industry. Intel has done a great job using dei to commit suicide, reminds me of Boeing.

Trump is taking control of federal spending, mind blowing “White House Orders Pause of Federal Financial-Assistance Programs.”

https://www.coffeeandcovid.com/p/baptism-of-fire-tuesday-january-28?

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