Friends, big news today! Check out this article, which demonstrates the real effects of the US-China trade war. At first, tariffs weren't even putting a dent in trade figures, including our massive trade deficit. Now, that's turning around. You could see this as searing agony for American exporters and consumers...or you could see it as a sign that Trump's pressure tactics are working. China's exports have fallen more than US exports. The trade deficit has narrowed considerably IN OUR FAVOR. Give Trump some credit? Oh no -- the MSM wouldn't think of it...but I just did!
https://www.axios.com/china-trump-trade-war-tariffs-october-negotiations-a63366c7-f819-417c-a442-5c208978b12b.html
Dr. Waddy: I am abysmally ignorant on economics and business and so my comments may rightfully be viewed in that light. I expressed my view that newly affluent Chinese may not be as willing to endure economic backturns as were people experienced in near destitution. But the depth of prosperity in our country (just go into any Wegman's or a similar super food market) may well be such that it would take much dysfunction to truly harm us. Do Chinese consumers have such padding? Probably not as much but maybe some.
ReplyDeleteThe bottom line; this is a titanic and necessary struggle between the world's most dominant economies and it need not end to the detriment of either.President Trump has repeatedly demonstrated his willingness, of course from a position of American strength, to treat with those who wish America most ill. And he knows POWER, yes he does. And those in power in China most assuredly do! Out of this dynamic may manifest a mutually productive result. And in the U.S. we must credit that to our gutsy President.
Well said, Jack. I fear, though, that the Chinese may be watching CNN, in which case they must view Trump as a paper tiger, and one who is fated to leave office in January 2021 (if not sooner). If the Chinese believed instead that the American people were behind Trump in his trade war, which of course we all should be, I believe they would have knuckled under long ago. That this dispute has lasted as long as it has, in other words, is entirely thanks to the unpatriotic weasels in the media and the Democratic Party, who have undermined our negotiating position to the best of their ability. For shame.
ReplyDeleteThose are my two cents...
Dr. Waddy: That's a great point. Makes alot of sense that if that is their perception, they'll just hold out for a time. Of course the fundamental antiAmericanism of the left and its MSM has been long since proven.
ReplyDeleteLook, I got a C+ in Economics, so really I don't have a clue...all I know is I think China is waiting this out until they see who gets elected in 2020.
ReplyDeleteI agree Dr. Waddy and Jack with your thoughts.
Linda, I never even took economics, unless you count high school, so I'm shooting from the hip here!
ReplyDeleteMy advice to the Chinese is to see reason and make a deal. Jan. 20th, 2021 is a long way off, and there's a good chance that Trump will still be with us thereafter -- and he'll be stronger than ever!