It looks to me like China is making all the wrong moves and their negative reaction to Trump's trade proposals are not working out well for them. This graph above makes the Ethereum market look like a safe investment in comparison. I'd like you to take a look at the United States market and see for yourself. I even will throw in over 20 years of data and the margin debt index, (the cash fabricated by brokers and bankers they can then loan out to stock purchasers in order to fluff the economy,,, I'll go into fractional banking another time though), in case it looks like I'm leaving things out to be pro America.
If you want a closer look and more verification, no problem. Say what you want about Trump, and there is plenty to say, but you have to admit we Americans elected a serious business man finally. We are still just shedding the yolk of that community organizer (some guy you have heard of that likely wouldn't be able to run a successful lemonade stand let alone something as complex as a trillion dollar+ economy) who was at the helm for the prior eight years.
So let's dig into what is happening here and what ordinance these countries have to wage this economic war.
First off there are the tariffs we are all hearing about. In an amazing turn about Trump is turning our trade deficit with China into our biggest advantage. We bought over 336 billion dollars more in goods here in the U.S.A. than the people in China bought from us in the last fiscal year alone. Sounds bad right? In the case of tariffs though, it makes a big difference for Americans in a positive way.
What it means to us in the states is that China can only match us tax for tax for a very short time and today is the day of reckoning for them. They have run out of imports with this last round of sanctions/tariffs on U.S. goods and now we can drop the hammer on them. We started out with a paltry 50 billion dollars worth of goods under a tariff and China matched that penny for penny, guess what our response was?
We laid an additional 200 billion dollars in tariffs on imported Chinese goods. That's right, we are going to fix this trade deficit and that is that. Since things are so unbalanced the Chinese government was only able to respond to our $200,000,000,000 mic drop to put the last 60 billion dollars in our exports under a similar tariff.
I do believe that puts the score at 110 China to 250 America with 86 points in reserve. There is no where left on this road to go for the communists except perhaps to raise their trade tax's percentages but as we can see the U.S. can draft new taxes on imports and still then raise the rates as well. Seems like a dead when it comes to this part of the fight but we are just getting started with this salvo.
It seems that there are few people in my domestic associated press corp. that happy to see China "digging in it's heels" though.
So perhaps William Zarit of the Chamber of Commerce, who was quoted in the snip, is correct and we will feel some pain. It could come in less goods on the shelves at big box stores and higher prices there as well as on Amazon so what is the plan?
Lower taxes for the Americans that will feel it most above all else. If you have read this article and live in my neck of the woods then I suggest you keep that extra money in your 2018 tax return for this instead of going on a cruise this year unless you want to feel a pinch in the wallet.
If you want listen to the Left Wing MSM here is what they have to
say about it. I think they purposely leaving out the deregulation plan and tax cuts to fearmonger but you be the judge.
I think the breadbasket will be fine, not only can we find new markets but rise in agricultural prices that follows the lowered production should pay out well for any farmer with decent accounting backing them up. Beside that though, we have a "bail-out" mindset in the united states and food producers will get subsidized with tax-payer funds to cover their loses, whether we like it or not folks.
That does seem to be a sticking point with all of the U.S.A.'s trade deals, the way we force our values on foreign governments. We are fundamentally different culturally than the Chinese in many ways, none in my opinion are important common human values but that is another conversation, and unfortunately we can't come to an agreement until we can meet eye to eye on some basic issues like property rights and IP protections, privacy as well but I can say we have to work on that here a lot before I can criticize anyone much there.
So that neutralizes most of the conventional weapons of war but we can't just leave things like that in this modern age, China has a few ways to get back at us beyond just longer waits at customs. They have ramped up their government run theft efforts in the last few years and have only stepped it up in recent months.
When they can't steal our software and other intellectual property like our media, they just buy off our media companies and subvert or trade laws through a back door. Enter Google and their potentially treasonous "Operation Dragonfly", a top secret project that was as hush-hush as a private company could have possibly made it. It sounds absurd that they thought they could get away with playing CIA and going against the will of the nation they call home but it is true, Google was putting their best computer programmers and scientist on a project deliberately designed to help the communist Chinese government violate what are considered internationally human rights. The only reason we even know anything about it is that one of employees had a crisis of conscious and blew the whistle on this insidious operation. Let's hope that his effort and self sacrifice counts for more than a temporary set back.
One last thing to mention is how much China has bought and plans on buying as far as property, corporations and various levels of politicians, not necessarily in that order I'm sure.
So what can little ole America do if things get out of hand with this? What do we have as a back up plan if China's meddling and disruption continues instead of them changing attitude and playing ball? Well, there's this and it is not something to leave out of a conversation about important matters I would say.
Thank you for time, I hope this was helpful to those wondering what this news was all about. I appreciate all the support and encouragement that help keep articles like this one coming.
Have a great day everyone.