Posted on 03/24/2018 4:00:27 AM PDT by cba123
China is over the line.
They just agreed, they agree, they agreed...
To decrease their trade deficit with America. NEXT YEAR. By a whopping $100,000,000.
China you really, need to stop the rhetoric, and get your purchasing managers busy.
For real. NOW.
This year, is already one third done.
(Excerpt) Read more at reuters.com ...
Once America wakes up, it's on.
They dump those bonds, making interest rates skyrocket, and all of the sudden servicing the interest on our debt becomes 2/3 of our annual budget.
Without China and the rest of the world buying our bonds, there is no deficit spending.
Here's a laugh for you: http://www.nbc.com/saturday-night-live/video/china-cold-open/n12611?snl=1
As I understand it, to address just one of the issues in that article; For Boeing to sell airplanes in China, they must build factories and BUILD the planes IN China. Of course, then, after a certain period, Boeing is out and China continues building planes, with a chinese nameplate, of course.
The Federal Reserve would buy up all those Chindese-held Treasurys if they were to dump them. End of story. That’s what quantitative easing was. China has no leverage owing is money. We have the leverage.
That QE experiment is less than ten years old. We shall see how it implodes in the not too distant future, especially with all of the conservatives screaming “audit the Fed.”
And what percentage of those "Chinese" exports are actual Chinese products, and what percentage are American products produced in US plants moved to China, or US brands being produced by Chinese subcontractors? And brands of other nations who've moved production to China?
Of course, Chinese companies will eventually copy all the products produced in China by whatever transnational and begin producing competing products.
Good post.
You get it.
The real joke is China pretending they could dump $1 trillion in bonds and it wouldn’t affect their economy...
Yu
R
wong...
Playing America? They bought our political whores fair and square, and Turddle needs to deliver on his contract.
That was the operative adverb 20 years ago. Eventually has eventuated and is well past it's sell-by date.
I would like to know why and by whom it has been held up? Some is by the Fed but the rest of the world has to play the game of "let's pretend" on the dollar's value. Who will profit from making the future crash worse? Or does everyone expect to be dragged into the maelstrom so they do everything possible to postpone it.
That was a very funny video clip, and it brings up a good point. It is our deficit federal and trade spending that has created the current problem.
The government spends more than it takes in, thus the 20 trillion dollar federal deficit.
Americans consume a huge amount of stuff, thus in a competitive economy, companies move overseas, so they can produce the lowest priced stuff.
Of course, Chinese do not consume as much as Americans, and they have a regulated economy, thus they do not buy as much from overseas, even though their population is 5 times bigger than the US.
No US company can 100% own a factory in China, you must have either a Chinese business partner or more commonly a government controlled company
I hope there is some serious negotiation behind closed door right now, so the Chinese can buy more US stuff and stop stealing and forcing technology transfer.
Maybe that is why Washington threats 60 billion tariff but offers no details, and Beijing threatens a puny 3 billion tariff but does not implement.
A trade war will be VERY, VERY, VERY bad for everybody.
The Chinese owe u 1 trillion dollars plus in term of accumulated war aid and food aid we lent them from WW2 thru the 80’s(no one really talks about it but it’s true) not including any interest on said debts. They want to dump their bonds that fine but we can just say...we’ll just cancel your debts from aid we lent you and call it even!
Well known, and has absolutely nothing to do with my post.
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