Posted on 05/13/2019 8:04:07 AM PDT by SeekAndFind
What with 200 million pigs expected to die from disease or be slaughtered pre-emptively, I doubt China will need the feed grains from us, anyway...
I have many Asian friends, some Chinese and some from other countries. They all refuse to buy any food from China. They are worried about pesticides and additives. China dominates certain food products like garlic and ginger root. I have to go to a specialty market to find these items from the US.
Actually, India is by far the largest producer of ginger, @ 33% of world production, but, I think they must use most of that domestically, as China dwarfs them in exports.
https://www.worldatlas.com/articles/the-leading-ginger-producing-countries-in-the-world.html
and
https://www.garaycompany.com/food-beverage/buyers-of-ginger-in-usa
Go figure.
That reminds me to plant some garlic, and maybe even give ginger a shot. My wife uses lots of both!
Get a large flower pot and plant one of those ginger roots. You will have an inexhaustible supply before too long
China acted first
Dow UP 306 at the moment.
Good. I was approaching
the Valley of Ignoring the
Dow for my own sanity.
The benchmark 10-year Treasury yield fell to 2.41% on Monday.
Investors globally seem to be shifting from stocks to bonds, to avoid volatility.
This strong Global demand for bonds (especially US bonds), further weakens the potential effects of China trying to dump their Treasuries, as an economic weapon.
The Chinese currency is already weakening (maybe deliberately, to offset some of the tariff costs - something China typically does). They might have to dump some Treasuries anyhow just to weaken (manipulate) their currency. They will have to sell into a market conditions unfavorable to them, and which would produce a smaller impact on our interest rates.
“Time to raise the tariffs on all Walmart imported goods and give incentives to start manufacturing plants in the USA.”
The tariffs are coming hot and heavy.
But the incentives to invest in the US are already done - and they are a much bigger deal than the tariffs. The tax reform package was huge for investment in the USA. It will be a multi-year impact, because of the long lead times involved to plan, locate and build factories.
Corporate tax rates were brought down to the Asian rates.
$2 trillion held by overseas subsidiaries of US firms was allowed to flood back home by eliminating the punitive tax on them.
Investment in US plant and equipment was made dramatically more attractive by allowing full expensing of investments, in the same year.
These actions are powerfully redirecting a good half of all the Foreign Direct Investment on Earth right now.
“I look for pork and bacon prices to subside”
Another Freeper pointed out on another thread, that totally unrelated to trade issues, China is currently suffering an epic plague of African Swine Fever, which is causing a mass die off/cull of their hog stock.
Pork prices are going up about 70% in China, because of the sudden shortage of the main meat in their diet.
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