Posted on 04/05/2018 4:09:49 PM PDT by SpeedyInTexas
The tariff increase came in 1930, some months after the 1929 stock market crash.
This statement is horse manure. Nobody knows what the market will do in the next 5 years.
Good points.
Reminds me of this saying (parapharased): If I owe you $1 million, I have a problem. If I owe you $1 billion, YOU have a problem.
China’s holdings of US Treasuries is not a problem for the US. It is a problem for China.
Did you know that 2 of the 3 largest Soybean producers are BLUE states?
Those 2 are: Illinois and Minnesota
I do know that.
I also personally know a lot of farmers in red and purple states that are looking at a MASSIVE reduction in income over the tariffs. They are not happy.
Do you have any idea of the amount of soy, pork, and chicken we send to China? The margin for the producer is not that great, and these tariffs cut in to it.
Short term, I suspect China is stuck. But in 5 to 10 years they will find another source of their food. They view pork the way we view oil, and will do a lot to secure the supply.
The fallacy is that the Chinese will not pay the tariff and will cease to buy the ag products.
there is no real evidence that sales will not continue as buyers buy at the higher prices
Meanwhile in america, Trump collects the new tariffs and pays for the wall
In the big picture, is this not possible/likely?
China buys soybeans from Brazil/Argentina instead of from the US. Countries that would have brought from Brazil/Argentina can no longer do so (product being sold to China), so they buy from the US.
I see a similar possibility regarding Boeing airplanes. China no longer buys Boeing airplanes and buys Airbus. Other countries that wanted to buy Airbus can no longer do so because of a long waiting list (years of backlog), and buy Boeing airplanes because they are available must faster with Chinese buyers no longer in the queue.
Thoughts?
South America has more land that can be turned over to soy than we do, and they have a greater gap between current yields and what the North American yields are. They can (and are) spooling up, but it takes some time. The price point hasn’t been there yet, as the US and Canada can produce more soy at a cheaper cost than Argentina and Brazil.
China is also making moves to develop Africa. Which will be rather interesting because as a people they view Africans as less than human (round eye Americans are barbarians, and stupid, but human to a point). As they move into Africa, they will start doing things that will recall the “bad” old days.
The wild card in the deck is Russia. IF Russia were to make an effort to increase their ag capacity, they have the resources to do so. What they don’t have is the PEOPLE to do so.
This statement is horse manure. Nobody knows what the market will do in the next 5 years.
Where are they going to go?
Actually 1931.
China is a non event when it comes to US exports, much of it commodity based.The US exports only an insignificant 130 billion to China out of our 15 trillion dollar economy. We export at least twice as much to each the EU, Mexico and Canada.The price we pay for these miniscule exports is China basically steals our technology to build their future which is at least as equally as important as the 500 billion they export to the US which represents a huge part of their global trade surplus and enriches them to build weapons systems and military islands offshore. Lastly the argument that we consumers pay more for tariff levied imports from China. Two arguments. a)suck it up, so you pay $1.25 rather than a buck for that can opener from Walmart as the aftershock of solving a toxic national economic issue b} there are other third world countries that will take up the slack and have already started doing so and in a few months your can opener will be back down to a buck.
According to Free Traitors™, to develop Africa, just build ports, warehouses and Walmarts. Retail : That’s the ticket to prosperity! /sarc
Home.
China has been dumping a lot of money in Iowa and other states. Losing that will hurt.
So far (Jan and Feb data--see official US Commerce Dept stats ) US imports from China are DOWN by 1.14%--on an annual basis.
Really? Aren’t they worried about the Supreme Court? Do they want Pelosi as SOTHOR? What about Trump? Do they want him impeached? They better vote and get behind the Trump Agenda now!
China as a culture has many faults and blindspots.
That isn’t one of them. They know they need massive infrastructure to develop China. However, they also seem to realize that isn’t possible with the current political structure in Africa.
Interesting times.
Regarding tariffs collected......
Like the Senator said, a billion here and a billion there and pretty soon we’ve collected enough to build the wall.
More good points.
Read recently that Russia is losing 1 million people a year from the working age population. Over the next 30 years, Russia’s population is expected to decrease by some 30 million.
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