Posted on 05/12/2019 5:17:19 AM PDT by Kaslin
“The tail of China is large and will not be wagged.” - Fourth Century quotation.
We are now locked in a critical trade dispute with China. It could easily escalate into a full blown trade war. The coming days will determine which way the coin will flip. Almost all experts agree that we have allowed China to take advantage of us for far too long. Few dispute that they have been stealing our technology and intellectual property with impunity.
Something has to change.
Let us first stipulate that announcing new tariffs on Twitter is unconventional. Then again, Donald Trump is anything but conventional. His raising of tariffs have caused panic attacks among the Nervous Nellies on Wall Street. Again, Trump may be a lot smarter than his critics think. He knew that the Chinese were backtracking on critical points. They counted on this President being like the others who wanted a signing ceremony so badly that they could get away with some last minute fudging.
They counted wrong.
This President understands several things that his predecessors ignored. First, that states that export raw materials and import finished goods aren’t really countries, they are colonies. We are not a colony and we don’t intend to become one again. Second, China needs us worse than we need them. Their business leaders know just how dependent they are on exports to the United States. Our economy is stronger than it’s been in decades. President Trump knows that if we don’t press the matter now, we are in for a long dark future. A free society like ours will always out-produce closed, government-run economies. Especially in the one thing that will dominate the future, innovation. We cannot blindly continue allowing them to simply steal it.
Let’s also stipulate that a tariff is a tax. Remember, both the United States and China grew into industrial giants using tariffs as a primary source of tax revenue for our central governments. Much has been written concerning who pays for the Trump tariffs. Is it American consumers or Chinese exporters? Probably both. We do know who benefits from these new taxes on imports. Clearly American workers, manufacturers and the federal treasury all will benefit. Proponents of a national sales or consumption tax should be delighted.
John Ferriola, CEO of Nucor, our largest steel producer said that the Trump tariffs were not unfair, but were "simply leveling the playing field." Not only China, but the European Union and most countries in the world, “have a 25 percent or greater VAT, value-added tax, on products going into their countries from the United States. So if we impose a 25 percent tariff, all we are doing is treating them exactly as they treat us."[112] Wikipedia.
Short of ICBM’s, tariffs are about the only weapon we have to force the Chinese to bargain in good faith.
Note that Democrats have been surprisingly careful in their criticism. If they honestly think that they can win the next election, they will have to confront this problem (which will only get worse) should these negotiations fail. They also know that this is popular in blue collar country, which they must win back.
The Chinese wear excellent poker faces and are incredibly patient. They may believe that they can run out the clock on this administration. Their leaders control even the social media. They don’t have to stand for election. That may explain why Trump so publicly played the latest tariff card, upping the ante. He let them know that the price of that strategy would be high.
This President prides himself on his abilities as a negotiator. He doesn’t want a full blown trade war. He believes the Chinese have over-extended themselves and need an agreement more than we do. He has also made it clear that he is prepared to walk away from a bad deal. His negotiating skills will be put to the supreme test. He must be hard nosed while still allowing the Chinese leaders room to save face. They cannot go home admitting that they allowed Trump to wag the Chinese tail. Trump is betting that they don’t want to go home empty handed, tail between their legs, either.
For our part, we must close ranks and stand with our President. The stakes are high. In his words, “We’ll see.”
Excellent article. Thanks for posting.
The only thing to fear is fear itself.
The only way we lose is if we surrender.
Men, all this stuff you hear about America not wanting to fight, wanting to stay out of the war, is a lot of bullshit.
Americans love to fight. All real Americans love the sting and clash of battle.
When you were kids, you all admired the champion marble shooter, the fastest runner, the big-league ball players and the toughest boxers.
Americans love a winner and will not tolerate a loser. Americans play to win all the time.
That's why Americans have never lost and will never lose a war. The very thought of losing is hateful to Americans.
Battle is the most significant competition in which a man can indulge. It brings out all that is best and it removes all that is base.
China’s determination in this war is greatly determined by how much they are emboldened by the anti-Trumpers in our government and media.
They had invested heavily in Hillary winning in 2016 and thought they would see an acceleration of weakening on the part of the USA.
They can only hold out so long, however. I don’t think they can fight on until 2020 hoping for a surge to the left in this country.
Really, the only thing that has saved us, apart from Trump winning, is Trump being scandal free.
The only thing that saved Obama is keeping his pants on. Michelle is not Hillary.
Hence we have subsidies for biofuels and all manner of crony capitalism.
The political realities of this trade war are that many agricultural states of the heartland will feel this intensely, despite the set-aside program to ease their pain, as witness the reaction of agricultural state Rino Republican senators calling for Trump to end the trade war.
The election is coming in less than 18 months and the Chinese might be betting that they can divide and conquer us in that time. On the other hand, the Chinese may be simply running an old Oriental negotiating gambit, or, the recent reneging on their written deal might simply be the product of internal Chinese politics.
If the tariffs extend they undoubtedly will separate the men from the Rinos.
Well stated.
Trump has concluded that the way to make the chinese government react is to inflict massive pain. That pain affects different internal groups in different ways.
The internal chinese conflict doesn’t matter. Regardless of how China reacts, America wins
Trump is the president of all Americans not just those in Agriculture. He is doing what he and others, including I, think is correct for the benefit of America, overall.
Yes, an extended tariff war could hurt some of us. But we will all hurt more if he doesn’t stop the Chinese and their abuse.
When leaders say we can’t engage in a war because some of us might be hurt or killed, we will start losing ground at an unprecedented rate.
BTW, I am in the agriculture business (farmer) so I speak from near the front line.
BTW, I enjoy your posts tremendously. Thank you for being a Freeper and fine conservative thinker!
Hey Burt, that last one was directed for Nathan. Sorry. I am sure you are a great freeper, too!
We are now locked in a critical trade dispute with China. It could easily escalate into a full blown trade war.
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This “trade war” has been ONGOING FOR DECADES. However, up to now it has been solely one-sided with the Chinese warring on America UNHINDERED.
What is the position of our good friends and faithful allies the Europeans?
Do they have a ‘better deal’ with the Chinese?
The Chinese don’t steal from the Euros?
Collusion between the Chinese and the Euros to sell more German cars?
Dang, Elsie. You could at least attribute the quote.
bump
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