Posted on 04/06/2018 11:43:15 AM PDT by Mariner
President Trump says in a new interview that tariffs targeting China over intellectual property theft could cause some "pain" in the U.S. economy, but promised that America would emerge stronger as a result.
"I'm not saying there's not gonna be any pain," Trump said Friday in an interview with "Bernie & Sid in the Morning" on 77 WABC in New York City.
He also acknowledged the initial reaction from markets is likely to be negative.
They “could lose a little bit," he said.
Dow Jones industrial average futures plummeted on Thursday after news broke that Trump has asked officials in the administration to prepare tariffs on another $100 billion of imports from China, escalating a fight with Beijing.
Futures on the index fell 222 points, suggesting the market would open down 271.22 points on Friday, CNBC reported.
(Excerpt) Read more at thehill.com ...
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.
The problem is as CS Lewis once said, we are lacking real men in these generations. Real men understand you have to feel short term pain for a greater gain. Our instant gratification society can’t wait.
Absolutely. Nixon also started this whole crappy trade with China. What a loser.
Where did the 40% come from?
“Trump is exactly right that the trade war with China was lost long ago. Either we fix it now or we simply become subservient to China and wave to them as they pass us by economically — and it will happen.”
Nope. By 2030, half the population in China will be more than 50 years of age. By that same year, half the population of India will be under the age of 30. India will crush China and become the No. 1 economic and military power in Asia. China is living on borrowed time. The ChiComms aborted their future. Demographics is destiny.
Private equity is pouring into India, not China and has been since 2011. If you’re into foreign investing, get your money out of China.
I’d wager most of the stock market “panic” is more of a “wait and see what markets will be depressed and which will flourish as things settle in” deal to leverage the new environment - similar to what happened after the tax Bill....about time to have a President who will come out and tell the truth that it may cause some “inconveniences” rather than concoct something even worse than what is supposed to be fixed in order to calm the Sheeple...
RE: Where did the 40% come from?
SEE HERE:
Don’t get me wrong, I will be happy to be wrong, but if that happens because of the escalating trade war, then don’t expect me to support Trump on this. This is needless pain.
A genuine trade war will hurt. But better that now than a real and bloody one later. I don’t know how we can continue to important people and goods while exporting jobs and promissory notes.
>> that wipes out our retirement <<
Yes, but we are assured by the POTUS that it will make you stronger.
So grin and bear it.
>> The rest of the world is footless <<
Absolutely. And although I don’t know about anybody else, I can hardly wait to join them. Oh happy day!
Exactly.
“Gee, if the rest of the world wants to go running off a cliff, why shouldn’t we??”
That's just ONE example. We can probably go back and forth all day about all the technology transfers that happened during the Clinton Administration to the Chinese and our dependence on them to put satellites into space for us (side note: Thank You Elon Musk for the Falcon Series rockets and giving the US a better option!)
And then there's computer and smart phone chips and circuits made in China that can have embedded spyware/malware in their components that our Government is finally taking a serious look at -- and it's about damn' time!
This list can go on for days! I want more stuff made HERE by Americans. I don't want other countries to grab us by the throat and say "do what we want or we cut you off!"
I think PDJT has correctly analyzed the problem and why we have it. I have zero argument there. Ross Perot was saying some of these same things specific to NAFTA for example in 1992. I'm so glad PDJT is working to fix that also!
My concern is this trade war is going to hurt A LOT of Americans in the meantime. My 401k's have lost a shit-ton of value for example. Also here in Illinois it's spring planting season and we have family farmers who don't know what to plant right now. Illinois is the #1 Soybean exporter to China. China's implemented heavy tariff's on Soybeans in their tit-for-tat battle with PDJT. What do you think the net effect is going to be to those farmers who don't know whether to plant Soybeans or alternate to something else this year? They have loans on equipment they have to pay and planting the wrong thing / not enough of the right thing can decimate their funding. They really do live on the edge of bankruptcy year over year and one wrong move can doom them. (I lived in Iowa on a farm in the 70's -- I know what I'm talking about here.)
In closing, I agree with PDJT that the issue has to be addressed now. He's not one to keep kicking the can down the road and that's one of the things I really respect and admire about him. I proudly voted for him and I'll do it again in 2020. I'm just very concerned about the real pain that's going to be caused in the meantime and not just to family farmers. When we see goods become scarce, prices go up. Price inflation is the natural outcome of scarcity and wage inflation follows price inflation eventually. We may see a disruptive cycle of price and wage inflation driven by scarcity and that's really not good for anyone.
Uggh, I need more coffee this Saturday morning .....
if we had honest money - this trade deficit would end in a couple of years.
plus savers would be rewarded and bankers punished
Stupid question. I can pull all my business from a bank except what I owe them and still pay the bills.
In addition to tariffs Trump should ask Congress to make MADE IN CHINA mandatory on product labeling.
Sorry, My Friend, the guy who owes you has vastly more power
over you as we do over china. Thank God we have apresident who knows this.
Music to me ears, and one reason anti-banking Jackson is a hero of mine.
The standard classical liberal line about trade deficits is that if, for example, a country A (US) buys say 700 billion on products from Country B (china) at some point Country B has to spend that money in Country A. But in the current case, Country B could, instead of spending the money, INVEST the money in financial instruments from Country A. Is that what explains the massive amount of US reserves held by China? If so, it seems to imply a failure large risk for China. How long can they continue to increase reserves? Forever?
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