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  1. #24
    Join Date
    Mar 2006
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    Atlanta GA
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    Default Re: Trade War, Tariffs and Toy Soldiers

    Quote Originally Posted by Alexander the Great View Post
    Food is not "made" it is produced and you are talking about services (tickets, hotels etc.). I hope that you will agree with me that most tangible goods offered for sale in the USA are not made in the USA - yes?
    My math is great, it is called a trade deficit (if it was insignificant the politicians would not be interested in dealing with it). Have you checked recently how much money the US owes to China? you will be surprised by the amount...
    I do not disagree that China will not experience the pain, I just stated that you and I will be on the receiving end as well. Unhappy people in China!!...never, everyone is happy in China it is called Communism (said with a lot of sarcasm).
    Alex some of your facts may be a bit off. The US is the largest domestic economy in the world, with one of the highest per capital net incomes in the world. We certainly have the highest per capital income among very large countries. We produce trillions of goods here in the US; However our high incomes put us at a cost of labor disadvantage compared to countries with very low living standards who can and do pay their workers next to nothing. That is kind of a good problem to have,really, though, as it means most low value add manufacturing is done outside the US.
    Politicians love to make noise about meaningless statistics. We have a huge services surplus with the world, including China.

    The US doesn’t owe China a dime. China however does hold about a trillion of our Treasury Bills, on which there is interest due. Anytime we wanted we could refuse to pay the interest, or default on the principal. China needs a high quality, liquid, very large market to store their trade surplus currency, and we are by far their best option. If they dump our Treasury Bills, prices will fall and they will lose billions. Plus the Fed Res, if need be, could always step in and monetize that debt.

    China has not played nice for years, robbing us blind of technological know how, trademark and patent infringements of US companies, and on and on. China has been running, essentially, a state backed criminal enterprise for some time. It must stop.
    Likes: (2) hotel3alpha (05-20-2019),tdubel (05-15-2019)

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