Tom Paine 1949
Diamond Member
- Mar 15, 2020
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The U.S. couldn’t crush Vietnam. What makes everybody here think it can crush China?
Now if any of you decides not to buy from China, that’s your right. Same if Trump raises tariffs arbitrarily or with Congress’ support. Nobody can force Americans to buy Chinese products. But then don’t expect to sell American products to their 1.4 billion people, or employ their people’s labor and skills.
And what exactly do you propose to do about others in Europe, Asia, Africa and South America who do wish to trade with China? There’s a lot of big talk here. But not much clear thinking.
The US is by far the biggest trade partner China has. The $400b trade deficit needs to reduced, buying fewer Chinese goods helps.
U.S. goods and services trade with China totaled an estimated $737.1 billion in 2018. Exports were $179.3 billion; imports were $557.9 billion. The U.S. goods and services trade deficit with China was $378.6 billion in 2018.The People's Republic of China
U.S.-China Trade Facts U.S. goods and private services trade with China totaled $579 billion in 2012 (latest data available). Exports totaled $141 billion; Imports totaled $439 billion. The U.S. goods and services trade deficit with China was $298 billion in 2012.ustr.gov
The rest of the world can do what they want. China needs to know what happens when they act irresponsibly
I would love to see an end to U.S. balance of trade deficits (and U.S. budget deficits also!) ... BUT that is very unlikely to happen so long as the U.S. insists on maintaining its dollar supremacy in world trade. The Triffin Paradox — Triffin dilemma - Wikipedia — means that a country whose currency dominates global trading must almost necessarily run trade deficits. The exception being conditions like after WWII, when there was no serious competition to U.S. products on world markets. The global supremacy of the dollar means we can “monetarize” all our debts, use our fiat money on world markets without limit, exploit weaker economies via keeping them in debt and subservient to our finance capital. It has proven profoundly corrupting of our society, which moreover is addicted to meddling overseas to protect this monopoly and way of life.
Harder work, more education, less Wall Street speculation and crony capitalism, less waste and more institutional efficiency — these are what is needed to improve U.S. competitiveness. MORE not less world economic and financial integration is needed. Less U.S. imperialism. Of course adjustments can be made along the way, tariffs put in place here or there, but dollar supremacy in the end will likely fade, and so will the relative weight of American economic and military power. China and the RMB is not ready to replace the U.S. and the Dollar — and never will be if we act intelligently. But the days of Federal Reserve ability to monetarize U.S. debts unilaterally is coming to an end.
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