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The US Massively Underestimates The Trade War Blowback
Oilprice.com ^ | 09-12-2019 | Robert Berke

Posted on 09/12/2019 10:37:03 AM PDT by bananaman22

Trade wars and sanctions are economic weapons against rival regimes, and like actual military warfare, often lead to unanticipated and sometimes devastating blowback from the targeted regimes.

A prime example was President Obama sanctioning Russia over its annexation of Crimea. The sanctions were designed to block Russia from any access to western financing, aimed at causing a dire financial and economic crisis in Russia that would force it to relinquish Crimea and end support for Ukraine’s breakaway territories.

(Excerpt) Read more at oilprice.com ...


TOPICS: Politics
KEYWORDS: china; geopolitics; tradewar; us
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To: bananaman22
You really need to get the 30,000 foot view of world economics. Right now, the only relatively healthy major economies in the world is the US economy. While it is weakening, the EU is absolutely dependent on growth in the US economy to prevent a recession in Europe.

While China has a robust economy, it is really a house of cards. If you look at its fundamental financial structure you will see how important both Hong Kong and Taiwan are to the Chinese economy. With protests in Hong Kong, mainland China has a huge problem. China bonds and investments have been money laundered upward by about 20% or more via Hong Kong banks. Hong Kong is an important source of foreign money entering China because of their semi-independence and legal structure.

A lot of manufacturing firms in mainland China are owned and financed with Taiwan and Hong Kong money and owners. They are now looking at moving their factories and JOBS out of the country if a full fledged trade war happens. If the jobs leave, then there will be worker unrest in mainland China and likely rioting.

China is walking a tight rope. Their economy is on the edge of collapsing and if they don't make a deal quickly with Trump, they will have to pay serious political consequences. I was in China a few months ago and talked to Chinese businessmen.

Europe may favor the nuclear accord with Iran, but their economy is also fragile and they know that with Trump as President if they cross him and his sanctions against Iran, their businesses will be hurt by US economic policy. They can't afford to take that risk.

Trade war pushback is only something to fear if you have a weak economy or you are dealing with other strong economies. This is a unique time in history for the US to press for “better trade deals.” Trump understands this and is going to take advantage of it and that will cement his name in the History books as a great President.

The Art of the Deal.

21 posted on 09/12/2019 12:30:58 PM PDT by Robert357
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To: nikos1121
"This stupid article basically says that Trump didn’t forsee that our tariffs would cause China to form an alliance with Russia."

Yes. The author is either a moron or is lying.

US TOLD TO LEAVE CENTRAL ASIA [Russia & China demand "deadline."]
July 6, 2005
http://www.freerepublic.com/focus/f-news/1437369/posts

22 posted on 09/12/2019 12:34:42 PM PDT by familyop ("Welcome to Costco. I love you." - -Costco greeter in the movie, "Idiocracy")
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To: webheart

Oilprice dot com is Zero Hedge, but smaller.


23 posted on 09/12/2019 12:39:38 PM PDT by Fido969 (In!)
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To: familyop

Yeah, good point....

Finally we have someone in the office who has a brain...guts...wisdom....and patience of a saint...


24 posted on 09/12/2019 1:08:59 PM PDT by nikos1121
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To: nikos1121

Experience talking here, Russia lacks a rule of law. Any contract made with Russian companies is not worth spit, If you buy a tanker of their oil at a certain price, you may get one or two shipments delivered to Rotterdam, After that, despite what a contract says, Russian managers will do what they like.

The long and short is don’t worry about Russia. No one likes doing business with them except for a one-off transaction here and there and even then, they will come up with one lie after another in making excuses why they took your money but didn’t deliver.

Oh, and they will tell you they are a relative of Putin, doncha know?”

Russia is not in the top ten in terms of GDP but makes the bottom of the top ten in PPP alongside such countries as Indonesia.

Yeah, don’t lose any sleep over Russia and don’t worry about the future of a rising Russia, When they aren’t busy backstabbing a new trading partner, they backstab themselves. It’s their culture.

There are three families that rule Russia, all tied to oil. Historically, they fight each other. Currently Putin has been holding them together in a truce. That’s why he’s there. But there historical feuds are not political, they are regional and any Russia expert will tell you those regional differences will still be there after our lifetimes.


25 posted on 09/12/2019 1:09:58 PM PDT by Hostage (Article V)
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To: Hostage

Exactly, and the idiot writing the article thinks Trump is not aware of this...

Obama, Bush and probably Clinton too, were the clueless ones.


26 posted on 09/12/2019 1:11:39 PM PDT by nikos1121
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To: bananaman22

Globalist scum rant.


27 posted on 09/12/2019 1:13:58 PM PDT by Seruzawa (TANSTAAFL!)
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To: bananaman22

More balderdash.
These myopic lemmings seem wholly unaware of the dire consequences of doing business with the CPC. The boys of Beijing do not play by Queensbury rules. When the going gets tough all bets are off and what was once a good deal becomes a trap.


28 posted on 09/12/2019 1:37:54 PM PDT by Louis Foxwell (The denial of the authority of God is the central plank of the Progressive movement.)
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To: nikos1121

The illiteracy of the yammering class about diplomacy and economics is driving them into extinction. Serious journalism as practiced by The Epoch Times and others is driving ideological journalism into their graves.


29 posted on 09/12/2019 1:54:36 PM PDT by Louis Foxwell (The denial of the authority of God is the central plank of the Progressive movement.)
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To: bananaman22

Oil price will publish anyone. Massive amounts of unfiltered claptrap.

I could not possibly care less what this does to trade from Alaska. The game is mostly up for now there. Taps is nearly 50 years old and the whole of it is running at vastly reduced rates.


30 posted on 09/12/2019 5:54:43 PM PDT by Sequoyah101 (We are governed by the consent of the governed and we are fools for allowing it.)
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To: nikos1121

“” “” China may align with Russia fine, go ahead, but these companies are leaving China in droves, and they ain’t going back.”” “”

The facilities, equipment and employees stay.


31 posted on 09/12/2019 8:20:20 PM PDT by NorseViking
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