Bob Ireland incisively posted earlier: Most countries are
wisely choosing to renegotiate with the US over tariffs.
So why is the market going super nova?
The key is CHINA! ! ! China maintains high tariffs against us PLUS they do currency manipulation, devaluing the yuan against the dollar. China brags about its status as a world power... but China depends heavily on plundering our country. During the Clinton Admin our deficit was a little less than $50 billion a year. Now it is about $1/2 trillion a year.
Add to that the theft of intellectual property, capturing U.S. patents, pirating U.S. business secrets; some estimate that our current trade deficit is probably about $1 trillion a year.
They have the world’s largest navy; they have perhaps 1/4 - 1/2 million troops. Those troops have to be fed and supplied. Those ships need fuel, parts and regular maintenance. Ammunition and rockets and missiles are regular ongoing expenses.
China is still heavily dependent on collecting dollars to maintain its world power status. They are putting undue pressure on all their ‘allies’ in this country to make Trump look like he is in a losing position. China raised its tariffs and fees on U.S. property. It is all out: defeat Trump’s tariffs! China has undue influence on the U.S. Senate - who has just tried to pass a bill to override Trump’s tariff agenda. They have avenues to attempt at least some stock market manipulation.
It is all out for China for one simple reason: THEY MUST PLUNDER THE U.S. ECONOMY in order to maintain their elevated world status. On the present path China would become the ONLY world power and the U.S. would be economically reduced to Guatemala, etc. - a banana republic.
Will President Trump blink, falter?
China is taking that gamble.
Stand fast, Don.
FROM THE HISTORY BOOKS
In the 1990’s Israeli defense industry executives reported that the US had frozen Israel out of the “F-35 Joint Strike Fighter development” due to Israel’s military cooperation with China, selling US-shared tech with China that endangered American families’ safety and security..
Alarmingly, use of the Harpy drones were traced back
to Russia’s more recent use of them to attack Ukraine.
You make some great points and I think most of the tariff war is about China.
But I think you’re on the wrong thread for this one.
You can post this if you like it’s a great article on the subject:
https://www.tabletmag.com/sections/news/articles/what-you-need-to-know-about-trumps-tariffs
I don’t have the time just now to post.