*psst* (emigrating). *runs away*.
Can somebody explain to me how China is screwing us?
- Thread starter RGLD
- Start date
*psst* (emigrating). *runs away*.
China has been known to cheat because it is part of their culture. They emphasize profits above everything else! Chinese steel is cheap compared to US steel because it is thinner and not as good. Imagine using that steel to construct buildings, bridges, etc. How much is your life worth? US steel manufacturers have been complaining of widespread dumping of cheap Chinese steel in the US! Their cheap lower quality steel in the US is not really cheap because it is inferior in quality and gauge is thinner than US steel. You are not paying for the same thing!
This US-China trade deal would have been over and done with had, the Chinese not tried to change the terms at the last minute! President Donald Trump put the tariffs on to send a clear message to China that we are not playing here. This is a serious matter.
they buy some goods.... but as the issuer of the reserve currency, we will ALWAYS run a trade deficit globally, otherwise there will be no dollars outside of the US right?
that's the true benefit of being numero uno... of course Trump knows this, but on paper we have to pose as if we care about the deficit.... in reality deficit is GOOD because we are getting goods and services with IOUs!
that's the delicate game we play... 1 hand we print and rob other countries of their resources goods services, on the other we have to cry about the deficit and pose as if some day we'll run balanced trade.
Have minimal effect? China can virtually destroy US economy overnight. All they need to do is pull all the investments out of US treasury and others and ban all US companies from doing business in China now.
US companies generate almost a trillion dollar of revenue a year in China. Banning US business and reinvest the investments are a boon to Chinese business in China for many years to come.
Without its trillion dollars revenue, US stock market will test the 2008-2009 bottom. A full blown recession or even depression is a guarantee.
Tariffs means nothing to them. Most of it is just labor values added fee. They import most of the components from elsewhere.
If China really wanted to go hardball, all they'd have to do is stop exporting their wares to us. The US economy would die, because 75% of what we buy is made in China. Take that away, and we got nothing cheep to buy. People would freak. Big-box retailers would go under. All electronics would become obsolete because our great American Apple pie charges way too much for their shit as it is. Imagine if all the components they source from China to make their products had to be sourced locally?
They'd have to charge way more for their products, and already overpriced products would then become hyper-priced.
China to the US consumer is like fossil fuels to the world. It is cheep, plentiful, and without it, people here would fall back into the stone age.
They'd have to charge way more for their products, and already overpriced products would then become hyper-priced.
China to the US consumer is like fossil fuels to the world. It is cheep, plentiful, and without it, people here would fall back into the stone age.
you have been misinformed.... look up sp500 sales in China, directly is only about 5%.. 2008 lows, in your dreams lol...
US treasuries lol.... WE control how much is printed, can there ever be a problem lol... like if they sell all it's really gonna collapse the market... the Fed can absorb them all.. then what are they gonna do with the cash... under a mattress?
all this is a game... all that stuff in the media like they can collapse our bond market is just smoke and mirrors... but the negotiators know, China has no chips on hand here.
But, we cannot advertise to the world that in this scenario we're just gonna print and buy up the bonds... after all there has to be 'stability' in the reserve currency right... have to make the other buyers feel safe right..
and again the bottom line is world dominance... at the very core it's really about nuclear war heads and carrier battle groups... China want to play hardball? give it try... not only the export to the US will be cut off, but a global economic sanction can also be in play here.... that's when the topic gets wider... that's why we have these military bases all around the world..
but of course we have to pose like it's a waste of money fighting all these wars all over the world. lol... like spending trillions of dollars is money down the drain.
when you have global strategic military control, that's the true bottom line... who dares to play hardball with the USA here?
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President Donald Trump gave the Chinese 4 weeks to sign that trade deal otherwise, he will add another $325 billion in Chinese goods with more tariffs. Maybe, the Chinese communists will decide to continue to rolling the dice. Doesn't matter. US manufacturers already moving their base of operations to Vietnam, Thailand, Malaysia, Philippines, etc. They are not dumb to not see the huge risks in staying in China and not being able to sell their products? In addition, US supply chains now, looking at other markets to source goods produced by China. Most of the same goods available from other countries. What are the chances China loses hundreds of billions of trade with the US? Who is going to buy those Chinese goods now?
You just expect everyone to agree with you? I think good points have been made. Why don't you tell us why you are right and we are wrong? I have seen a lot of trolls on ET and have blocked all of them. If you did not want a discussion, why start a thread in the first place?