IMHO the Chinese will sell our debt first before giving in ,,,
Yeah, that's a card they hold. They won't just sit there and take it, and yet they are on the weaker end of this, and they're nothing if not pragmatic.
I know what Trump is trying to do, but holy shit, this better be resolved fairly soon.
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it's a game of chicken and it was needed.
Why?
Give some specific reasons with actual facts attached as to why it was needed?
Trade needed to be fixed because we not only have a huge trade deficit that physically makes us less wealthy every single years, but by undercutting our production, we lose the means of being self sufficient any more, and make ourselves much more vulnerable to being extorted in the future.
Trade wars do not harm the US any more because we don't export much any more anyway, and we ARE the single best market in the world, spending the most.
We will always win any trade war, and the trade imbalance has to be stopped as soon as possible.
Thank you for your response.
I will say I do not agree with any of it.
First off, a trade deficit in and of itself is not a bad thing. I do not know about you, but I have a "massive" trade deficit with my local grocery store(s). In all my years shopping with them I give them money and they give me goods in return. Never once has a single store bought any of my goods. Does that make me less wealthy than if I grew/raised all of my own food? I actually think it is just the opposite because if I did that I would not have time to work the job I do, which pays me way better than growing/raising my own food would.
The US is in the same boat, we buy things from other places because it is more expedient to do so.
I have a hard time looking at the economic numbers and seeing how we are so bad off due to our trade policies...
4% unemployment...More jobs than people to fill them...108 straight months of economic expansion, the 2nd longest in our nations history
You say that trade wars do not hurt the US, I disagree with that as well. For one, an extended trade war makes things more expensive to buy, when Trump puts a tariff on a product, that is a tax that the person buying it pays. I work in the Ag industry and I can tell you that the growers and ranchers do not agree with your view on the damage from trade wars. Every industry publication we receive talks about almost nothing but that right now. Even the Sec of Ag has admitted it will hurt the Ag industry and is trying to find a way to ease the pain.
Then there is the, in my opinion myth of loss of manufacturing in this country. According to the National Association of Manufactures, our manufactured exports have quadrupled in the last 25 years years, that does not sound like we are losing anything. Also, something I did not know till I looked further into this topic, in 2015 we exported more manufactured goods than we imported, giving us a manufactured goods surplus for the year. We do not hear the POTUS or the other tariff hawks talk about that ever.
Top 20 Facts About Manufacturing | NAM
Also, according to the Center for Business and Economic Research at Ball State University, 85 percent of the jobs lost in manufacturing since 2000 have been to technological change, mostly automation and only 15 percent have been shipped overseas.
This is from the StLouis Fred...this is US manufacturing output since 1987...with a couple dips during recession, it has been going up steadily, so again what is being lost?
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Manufacturing Sector: Real Output