SoViet Trade

If Friday evening. You go out for, let’s say, dinner or drinks in a low GDP per capita market. 

Who pays for them? If a low GDP per capita offers to pay for drinks, is it a one-off? Or is it for perpetuity specifically to the extent that you can ‘trade’ with that party? 

The last time Trump was in Vietnam, he brought BA 0.00%↑ with him. What did they both secure? The purchase of $21 bln in new planes or approximately 200 new planes for a new airliner called VietJet.  

Here is the breakdown:

Vietjet has ordered a total of 200 Boeing 737 MAX aircraft in two phases:

1. 2016: Vietjet placed its first order for 100 Boeing 737 MAX airplanes, marking the largest commercial jet purchase in Vietnam’s aviation history at the time.

2. 2019: The airline expanded its order by purchasing an additional 100 aircraft, including 80 MAX 10s and 20 MAX 8s, during a signing ceremony in Hanoi.

The delivery of these planes, valued at over $25 billion, began in 2024 and is planned to be completed over a five-year period.

Nice right? $25 billion in 8 years or approx $3.12 billion pa.

This is the 2nd biggest airliner in the country. With no major intentions or the capacity to buy hundreds more?

The question, as I mentioned earlier,

How do you expect to close the trade deficit?

If a command economy has centralized most of the wealth, and I’m telling you the annual deficit is $80 billion and their total forex reserves are $80 billion,

What do you do?

What is a win?

To me a win is managed trade to make a deficit close to 0 - it creates a better world.

But what will the win be?

Simply a false narrative and a false flag.

This is why the only solution is to make American companies pay directly to the Treasury and to ultimately find ways to get out of these entanglements.

Do you believe if every country was the size of China, they would even be willing to negotiate, or they will play games with you just like China is?

Don’t be deceived by size.