Let’s calm down a second here and not diminish everything Trump is trying to do here and acknowledge a few empirical facts. Had it not been for US corporations, China would’ve never been able to steal from us and also build up into a great country. While our infrastructure crumbles, they’re befit with state of the art cities and high speed rail that we can only wish to build. So the blame isn’t entirely on the Chinese government, but also the greedy ham and eggers in corporate America who used China to beat quarterly earnings estimates.
Now the chickens are coming home to roost. With over $21 trillion in debt and a horrible trade imbalance, the President seeks better terms. To do that, tariffs have been affixed in an effort to show how serious he is about the issue.
In regards to being in a ‘trade war’, Trump is correct. We lost that war years ago. When you’re buying $550 billion in goods per annum and only selling $140b — that isn’t exactly an even playing field. How could anyone even suggest we’re in a trade war with China — when they don’t buy anything from us?
We are not in a trade war with China, that war was lost many years ago by the foolish, or incompetent, people who represented the U.S. Now we have a Trade Deficit of $500 Billion a year, with Intellectual Property Theft of another $300 Billion. We cannot let this continue!
— Donald J. Trump (@realDonaldTrump) April 4, 2018
Trump on China’s WTO treatment. Again, he is correct. Why are they considered an emerging market?
China, which is a great economic power, is considered a Developing Nation within the World Trade Organization. They therefore get tremendous perks and advantages, especially over the U.S. Does anybody think this is fair. We were badly represented. The WTO is unfair to U.S.
— Donald J. Trump (@realDonaldTrump) April 6, 2018
In a radio interview today, Trump addressed the recent spat and decried the pain would be good for us in the long term. This is advice that I’ve heard people support countless times over the past decade, in regards to the US banking crisis, European sovereign crisis, and all of the other issues that the Fed and other central banks papered over.
Source: The Hill
“I’m not saying there’s not gonna be any pain,” Trump said Friday in an interview with “Bernie & Sid in the Morning” on 77 WABC in New York City.
He also acknowledged the initial reaction from markets is likely to be negative.
They “could lose a little bit,” he said.
“We’re gonna be much stronger for it,” he added later in the interview.
China has responded to the latest round of tariff plans with a statement threatening an all-out trade war.
“We do not want to fight, but we are not afraid to fight a trade war,” China’s Foreign Ministry said in a statement.
Earlier in the week, White House press secretary Sarah Huckabee Sanders said that the president wasn’t worried about the recent market volatility and was instead concerned about “countries that have been taking advantage of us for decades.”
“We may have a little bit of short-term pain, but we’re going to have long-term success,” she told reporters.
Lastly, this is a most enjoyable interview with permanent bear-shitter, Nouriel Roubini. He warns of a full blown trade war, full blown bear market, and further downside in cryptos.
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The U.S. complaining about things being unfair. You can’t make it up.
Trump is just envious and tamper tantrumy because China has something that he wants too – a great and beautiful Wall and the bloody demrats wont let Trump build it to keep bad hombres out.
Byrd
The fears of America getting rolled in a trade war have always been significantly overstated by vested interests. We get flooded by economists – paid for by major importers – telling us any deviation from the course is illogical, unscientific or deranged.
China is far more susceptible to falling in a trade war than the US, because they are structurally less sound than the US. The ruling party the CCP has membership of 85 million amd insists on yielding strict control over most aspects of their society. Yet at 1.3 billion, that’s a ratio of almost 16 to 1 for management efforts.
Without vastly extending liberties to non CCP citizens, there is no way that China could continue their growth initiatives. The only thing that’s gotten the CCP this far is cutting deals with American corporations, who have artificially bolstered the CCPs managerial capabilities.
Absent those energies, entropy and Maxwell’s demon suggest disorganization of China’s economy, which is a significantly greater threat to them than lost goods is to the US. Our social fabric is more flexible and will have an easier time adapting to the change.
Good post and well stated.
Cain! It’s been so long.
It’s hilarious that China is always portrayed as just China. But the US is a random assortment of groups continuously fighting with each other.
I’ll never bet a dollar on a political outcome, but seeing everyone assume further downside is getting very interesting.
Exactly – a relative very few Americans got rich off of making China this great and awesome economic power. Greedy bastards here need to STFU! Oh, and also, this whole “cheap shit equals better quality of life” garbage has proven to be FALSE and needs to be dispensed with post haste.
Yeah, Americans have so much discretionary income to spare. Who needs cheap shit?
Oh yeah, dude, $150 flat screens has made life so much better!! Just go ask all the people at Walmart and they will tell you how amazing their lives are.
We cant hand out $500 billion a year. Why not that is perfectly normal. I am sure China will gladly hand us back all our 4 trillion, with the understanding we are retarded.
Duche bank or china insurance bank to blow up this weekend?
Not to mention that the biggest problem in China is that with the high economic inequality, their own citizens can’t afford the products they manufacture.
If the trade wars pick up steam, then wages will drop and unemployment in China will rise. Maybe China can counteract that by giving a huge tax cut to their 1%, who will then give everybody pay raises and create new jobs for the unemployed. Makes perfect sense, right?.
Fly do a history lesson on how we got China in the WTO in December 2000 in a lame duck and what Clinton promised America. Fuck that globalist and the Repubs for going along with it.
China plays the long game..100 or 200 years. Unless something extraordinary happens Trump will be out in seven years, and he’s not a young man. Challenge for USA is steering a long term consistent course, given the possibility of Presidents shoving the rudder hard in the opposite direction regularly.