Trumpcession and the Propaganda Game: Who’s Really Sinking?

Is the U.S. Economy the Titanic? Or Just a Bumpy Ride?

A political cartoon recently published by Chinese state media, Xinhua, depicts Uncle Sam confidently standing at the bow of the U.S. Economy as it sails straight toward an iceberg labeled “Trumpcession.” The message is clear: America is heading for economic disaster, and its leaders are either blind to it or too arrogant to change course.

It’s an effective piece of propaganda. But before anyone nods in agreement, it’s worth asking a broader question—does the U.S. media do the same thing to China?

The reality is that both sides often push narratives of economic doom for their rivals. Each portrays the other as spiraling toward collapse while reassuring its own people that everything is under control. But what’s real, what’s exaggerated, and what should we actually be paying attention to?

The Art of the Economic Doom Narrative

Xinhua’s cartoon is a perfect example of how propaganda works. It takes a complex economic situation and distills it into a simple, emotionally charged image. The U.S. is supposedly in decline, sinking under the weight of failed policies.

This messaging is not unique to China. Western media regularly pushes similar narratives about China’s economy:

• When China’s GDP growth slows, headlines warn of an imminent collapse.
• When youth unemployment rises, the system is supposedly failing.
• When foreign companies shift some production away from China, it’s framed as the beginning of the end for its manufacturing dominance.

Each side frames the other as weak, unstable, and losing ground. The reality is more complicated.

What China Says About the U.S. (And How Much is True?)

Chinese state media tends to push three core narratives about the United States:

1. The U.S. is drowning in debt and heading for financial collapse

• Reality: The U.S. national debt has surpassed $34 trillion, and rising interest payments pose long-term risks. However, the U.S. still controls the world’s dominant currency, and demand for U.S. debt remains strong.
• Exaggeration: A full-scale economic collapse is unlikely. The dollar remains the global reserve currency, and investors continue to see the U.S. as a safe haven.

2. The U.S. is politically dysfunctional and incapable of governance

• Reality: Partisan gridlock, government shutdowns, and legislative battles create instability.
• Exaggeration: While dysfunction exists, the U.S. system allows for adaptation and correction. Even with political divisions, markets, businesses, and institutions continue to function.

3. The U.S. economy is all hype, no substance—China is the future

• Reality: China has made significant economic gains and leads in key industries like electric vehicles and infrastructure.
• Exaggeration: The U.S. remains dominant in technology, finance, and global markets. Its stock market, venture capital ecosystem, and innovation sectors continue to outpace China’s in many areas.

What the U.S. Says About China (And How Much is True?)

Western media narratives about China’s economy often mirror what China says about the U.S.:

1. China’s real estate bubble will crash its entire economy

• Reality: Evergrande’s collapse and a broader slowdown in the property sector have created serious risks. Real estate accounts for roughly 30% of China’s GDP.
• Exaggeration: While the sector is struggling, the government has tools to prevent a total meltdown. Unlike in the U.S., China’s banking system is heavily state-controlled, reducing the risk of an uncontrolled collapse.

2. China’s population decline means long-term economic decline

• Reality: A shrinking and aging population poses challenges, particularly for economic growth and labor supply.
• Exaggeration: Japan has also faced demographic decline but remains a major economic power. China’s economy is evolving, and automation, AI, and trade diversification could mitigate some of the impact.

3. China is losing its manufacturing dominance

• Reality: Companies are shifting some production to Vietnam, India, and Mexico due to rising costs and geopolitical tensions.
• Exaggeration: China still leads global manufacturing by a wide margin. Its supply chain infrastructure remains unmatched, and foreign investment continues to flow into key industries.

What Actually Matters?

If neither economy is collapsing, what should people focus on instead of propaganda-driven narratives?

• Stock Market Performance: If an economy is truly in decline, markets will reflect it over time.
• Trade Data: Who is exporting more? Who controls key global supply chains?
• Foreign Investment Flows: If investors believe a country is weakening, they will pull their money out.

Both the U.S. and China have economic challenges, but neither is on the brink of collapse. The global economic order is shifting, but not in the black-and-white terms often portrayed.

Trumpcession? Look Beyond the Propoganda

The next time you see a dramatic claim about the U.S. or China—whether it’s the U.S. economy sinking like the Titanic or China’s entire financial system unraveling—take a step back.

Propaganda doesn’t always mean false information. It means selective information, framed to serve a specific agenda.

The best way to understand reality is to look beyond political narratives and follow the real indicators—markets, trade, and capital flows. That’s where the truth lies. Follow ForexLive.com for additional perspectives.

This article was written by Itai Levitan at www.forexlive.com.