5 Comments

Keep in mind that the auto industry is dependent on semiconductors. If the technology value chains suffer a disruption, the auto industry is disrupted. This sensitivity also effects medical, industrial machines and robots, everything.

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I found this entirely fascinating. Thank you. It highlights the importance of networks, of which I know not much, and their dynamics, of which I know even less. Questions though, 1) how does trade-related finance compare with speculative finance, 2) what are the similar “pictures” of speculation, including criminal and commodities, and 3) how is climate change and biodiversity collapse affecting global finance?

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Perhaps the new Sino-Russian reserve/settlement currency will restore that growth curve to its former glory, though it is unlikely to benefit the West.

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Not sure how the banking financial flows are calculated, but it is striking that EU banking stopped being an International contributor after 2008. I wonder how much the negative interest rate has to do with this and how the banking flows have changed since mid 2022.

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There is, in economic history, a characterization of "planned economies" doing input output equations, like a gosplan, 5-year plan, like Enrico Barone's "Il Ministro della Produzione nello Stato Collettivista”, where he literally lays out a set of parallel interlocking linear equations of the economy. The sphere charts provided above are similarly seminal! I can only imagine Jake Sullivan and Yellen's sanctions department going after that multi-dimensional sphere network diagram with a sledge hammer!

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