Posted on 01/17/2020 5:49:14 AM PST by Kaslin
President Trump has just signed one of the most consequential trade deals in American history — an agreement that promises to benefit the U.S. economy for decades to come.
The "Phase One" trade deal with Beijing is a massive economic and diplomatic victory for the President, who successfully convinced communist China to abandon some of its most egregious trade abuses while at the same time dramatically increasing its purchases of U.S. exports.
China has committed to purchasing $200 billion worth of American goods over two years, including $75 billion of U.S. manufacturing products alone. In addition, China will buy $50 billion worth of energy products, $40 billion worth of agricultural exports, and $40 billion in services, ensuring that the benefits will be spread across the entire U.S. economy.
While those commitments are the most eye-catching aspect of the deal, the real meat of the Phase One agreement lies in China’s commitment to end its abusive and illegal trade practices, such as requiring U.S. companies to turn over valuable technology to Chinese competitors in order to do business in China.
“This is a very important and remarkable occasion," President Trump said during the signing ceremony, adding that U.S. and China “are righting the wrongs of the past and delivering a future of economic justice and security for American workers, farmers and families.”
But the trade deal is also important for another reason — it will deprive America’s greatest geopolitical adversary of the artificial advantages that have fueled its economic growth for so long. Beijing never would have willingly given up its unfair trade practices, but a bilateral trade accord with Washington forces China to either honor its commitments or suffer the pain of renewed counter-tariffs.
The strategic counter-tariffs that President Trump imposed at the beginning of the negotiating process derailed China’s rapid economic expansion and sparked widespread panic among the country’s business and governing elites. Beijing had no choice but to make significant concessions in order to ease the pressure, and China’s leaders will not soon forget how easily the U.S. can put them back into the same uncomfortable position if they break their word.
“Things are going along very well with China,” President Trump explained last year, noting that the U.S. was taking in billions of dollars in tariff revenue. At the time, the President also insisted that his strategic counter-tariffs would ultimately force Beijing to accept U.S. terms, including a commitment to end its currency manipulation — a prediction that turned out to be accurate.
Coincidentally, the Phase One deal with China isn’t even the only major trade agreement being finalized this week, with the Senate voting Thursday on approval of the United States-Mexico-Canada Agreement — a deal that offers such massive benefits to the U.S. economy that House Speaker Nancy Pelosi kept it in legislative limbo for a whole year to prevent it from boosting President Trump’s re-election chances.
Of course, Donald Trump isn’t done negotiating with China just yet, either. When the President announced the first phase of the trade deal with Beijing, he also stressed that the White House will be negotiating “Phase Two” of the accord in the near future. The coming rounds of trade talks will likely yield additional guidelines on intellectual property protection, and will almost certainly contain mechanisms to curtail China’s other anti-competitive practices.
The “Phase One” trade deal with China is a monumental achievement, arguably representing the biggest trade victory in our nation’s history. It’s enough on its own to keep the U.S. economy humming for years, and the outlook will improve even further once the next phase of the negotiations is complete.
Democrats are deeply saddened.
“...and China’s leaders will not soon forget how easily the U.S. can put them back into the same uncomfortable position if they break their word.”
And President Trump WILL hold their feet to the fire! Of that, I have no doubt.
Talking to a Lib, yesterday: ‘This isn’t going to make ONE bit of difference for our economy or our farmers. Neither will the USMCA!’
Why? Because EVIL Trump designed and implemented them! Never mind that a majority of Dems signed on to both packages!
What a dork. *SNORT*
The proof is in the pudding(IRA’S).
The steroid shot to our Ira’s is hard to believe as so much happens so quickly.
More good news, the mediots and elites of both parties are not telling us about MAGA!
The IMF is warning that “global economies” will contract by $455 billion
Posted by Mr.Copper @ 12:30 on September 27, 2019
IMF (international monetary fund) and Trump.
The IMF is warning that “global economies” will contract by $455 billion next year due to the ongoing trade conflict between the U.S., China, the EU and to a lesser extent, Japan.
President Trump will cost the “Global Economy” $455 billion…. because that money will be transferring back to the America First economy. That’s what happen as MAGAnomics reverses the IMF trade (wealth distribution) model.
China and the EU have devalued their currency in an effort to block the impacts from President Trump and the ‘America First’ trade policy. Because those currencies are pegged against the dollar, the resulting effect is a rising dollar value. In essence, the globalist IMF is now blaming President Trump for having a strong economy that forces international competition to devalue their currency.
In the bigger picture is why President Trump is the most trans-formative economic President in the last 75 years. The post-WWII Marshall Plan was set up to allow Europe and Asia to place tariffs on exported American industrial products.
Those tariffs were used by the EU and Japan to rebuild their infrastructure after a devastating war. However, there was never a built in mechanism to end the tariffs…. until President Trump came along and said: “it’s over”!
After about 20 years (+/-), say 1970 to be fair, the EU and Japan received enough money to rebuild. But instead of ending the one-way payment system, Asia and the EU sought to keep going and build their economies larger than the U.S. Additionally, the U.S. was carrying the cost of protecting the EU (via NATO) and Japan with our military. The EU and Japan didn’t need to spend a dime on defense because the U.S. essentially took over that role. But that military role, just like the tariffs, never ended. Again, until Trump.
The U.S. economy was the host for around 50 years of parasitic wealth ex-filtration, or as most would say “distribution”. The term *ex-filtration* better highlights that American citizens paid higher prices for stuff, and paid higher taxes within the overall economic scheme, than was needed.
President Trump is the first and only president who said: “enough”, and prior politicians who didn’t stop the process were “stupid” etc. etc. Obviously, he is 100% correct.
For the past 30 years the U.S. was a sucker to keep letting the process remain in place while we lost our manufacturing base to overseas incentives. The investment process from Wall Street (removal of Glass-Stegal) only made the process much more severe and faster. Wall Street was now investing in companies whose best bet (higher profit return) was to pour money overseas. This process created the “Rust Belt”, and damn near destroyed the aggregate manufacturing industry.
Unfortunately, putting ‘America First’ is now also against the interests of the multinationals on Wall Street; so President Trump has to fight adverse economic opponents on multiple fronts…. and their purchased mercenary army we know as DC politicians.
No-one, ever, could take on all these interests. Think about it… The EU, Asia, World Bank, International Monetary Fund, China, Russia, U.S. Chamber of Commerce, Iran, U.S. Congress, Democrats, U.S. Senate, Wall Street, the Big Club, Lobbyists, Hollywood, Corporate Media (foreign and domestic), and the ankle-biters in Never Trump…. All of these financial interests are aligned against Main Street USA and against President Trump.
Name one individual who could take them on simultaneously and still be winning, bigly.
They say he’s one man. They say they have him outnumbered. Yet somehow, as unreal as it seems, he’s the one who appears to have them surrounded.
Comment:
Their media keep nitpicking Trump about some stupid info. Who said it? Probably the same “guy” that said Sadam had weapons of mass destruction.
On a global scale it’s almost like Reagan’s “welfare to work fare” agenda when they thru millions off welfare rolls in the USA. Now many countries and global corporations see themselves losing their welfare benefits.
Good guys finish last. No more stupid Mr. Nice guy USA.
MAGA!
Tariffs raise revenue and protect vital strategic industries. WIN - WIN. Every patriot loves import tariffs.
Do you all think that after 4 years of this, accomplishing everything that is good for America, peace, prosperity, border walls, that in 10 months we would vote in somebody else to change it all?
This basic economic reality you posted below, is not one:
Tariffs raise revenue and protect vital strategic industries. WIN - WIN. Every patriot loves import tariffs.
We just got our 2019 IRA printout from FIDO IRAs and a smaller IRA my wife has.
We paid out a rather large sum re auto deductions last year.
Yet, thanks to the Trump economy, We still ended the year with significant gains in our IRA's in spite of the above.
Promises made, promises kept.
I would agree that tariffs when used specifically to protect an industry such as steel are effective. They are not long term fixes but bandaids until something can be worked out. The reason they work is because International Trade demands the low cost producer is allowed to sell their product in a nation that either does not compete on the economical level, or currency manipulation.
The real issue is a declaration of strategic production, whether it is steel for the military, fuel, or diamonds for drilling. The tariff is the wrong mechanism for strategic national self interest.
I am LOVING sitting around and MAKING money these days versus busting my (Dowager’s) hump (LOL!) and having Mother Government CONFISCATE a good 30% of it!
MAGA! KAG!
PMs on the rise again today, after some selling off earlier this week:
P
See, every now and then we agree on something... nice comment.
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