Need friends to win.

In the US, "The Federal Open Markets Committee (FOMC) sets the federal funds rate," which "is currently 5% to 5.25%." Forbes. "The Congress has assigned the Federal Reserve two jobs," - "Maintain stable prices throughout the economy - a.k.a. keep inflation under control - and support maximum employment." "Over the last fifty years, the federal funds rate has ranged from a low of 0% to a high of 20% as the FOMC attempted to manage the economy." "Bad news - like the fact that the number of homes sold dropped by nearly 20% last year, and hundreds of mortgage bankers lost their jobs - is basically a sign that the plan is working. Tech, finance and crypto, where low rates had fueled growth, have also been hit hard by the change." BBC. However, "Job creation has been surprisingly resilient, despite big layoffs from firms like Amazon, Disney, Ford and Tyson Foods. At 3.4%, the unemployment rate in April was actually lower than it was a year ago - totally bucking most expectations." It was hoped that, "A big splurge in spending in China after Beijing lifted COVID-19 lockdowns will help cushion quarterly results of the world's biggest companies, investors say, even as forecasts suggest the United States and Europe are heading into a corporate recession." Reuters. That is looking increasingly unlikely. "China's huge stimulus after the 2008/09 financial crisis helped the global economy recover, partly due to the Asian country's insatiable appetite for imported raw materials for infrastructure projects. But those past stimulus measures have left China mired in a mountain of debt. In March, the International Monetary Fund warned that Chinese local government debt alone has risen to a record 66 trillion yuan, equivalent to half the country's GDP." DW. "Japan, South Korea, and Singapore have escaped the (middle-income) trap by reskilling their population and becoming innovation driven economies. China has taken a more aggressive approach to sector-oriented investment to improve the economy's overall productivity. But the current geopolitical environment isn't conducive to its plans of escaping the middle-income trap." The Print. "China's increasing focus on its own security and intensifying rivalry with the United States threatens to turn its re-engagement with the world after years of COVID curbs into a new era of isolation from the West, analysts say." Reuters. China has no friends except North Korea and Pakistan, both of which are bankrupt, and the rest of the world sees it as a ruthless aggressor. Earlier, "China launched a series of military exercises, including the firing of ballistic missiles, focused on six danger zones around Taiwan." BBC. In April, a Chinese coast guard ship blocked a Philippine patrol vessel steaming into a disputed shoal in the South China Sea, causing a frightening near-collision in the latest act of Beijing's aggression in the strategic waterway." AP. Will it remain an economic struggle or will there be a military war between China and the West? A weak China will certainly benefit India. Whatever happens, China cannot win.