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No. I would think that we should stand up to their bad behavior by engaging them; not trying to enter a trade war that we would lose.Ford and GM sold 500,000 cars in China alone. At bout 20K per vehicle, that is about $10,000,000,000 in sales that China would wipe off their books. That is just 2 companies. Wal-Mart has over 400 stores in China; more than it has in any single State. Imagine if you were to take Wal Mart's sales and remove all of California and Texas. That would be the blow that it would receive from the all too predictable retaliation for tariffing Chinese goods. Not to mention they own a lot of our debt. You want to see interest rates rise; let them cash in a few billion dollars worth of treasuries....
Its foolish to pick a fight with your creditor. It's more foolish to pick a fight with a country that has more weapons at its disposal.
The politics are unimportant since the Chinese are ambivalent to the party that controls the White House.
so your argument is that because we've already given away the store to China, we shouldn't stand up to their bad behavior?
There is something to be said for that. The old saying that when you lend me $50 bucks and I don't pay you, I have a problem but if you lend me $50 million and I don't pay you, "we" have a problem may apply.I don't think so. If anything, China needs us more than we need them.
However, in almost every case (economically speaking), the more healthy party in the scenario comes out ahead when the dust settles. Right now, that ain't us.
I'm personally a little tired of a government that is more concerned about the profits of GM and FOrd and WalMart than they are about the well-being of the American worker.
As soon as you start taxing imports to the extent Mr. Trump and his supporters indicate--in other words, enough to make a difference--you'll see consumer prices go up (hurting the American worker), corporate profits go down (hurting the American worker), the stock market tumble (hurting the American worker), and the 401k plans invested in the market lose their value (hurting the American worker)
That is the good news.
The Bad news is that when they start cashing in their securities, the interest rates will start increasing making it harder to get loans, credit cards will start rolling back their spending limits for businesses and consumers alike, and car loans to purchase those 1/2 million vehicles Ford and GM are no longer selling in China will be very hard to get. It's a good thing Americans are such savy savers though...right?
Joe, all of this is ECON 101.
Between you and Toro, you might have me supporting
Trump before the primaries come along.
Thats a good idea. The more people I can get to vote for Trump, the better it is for HRC.