posted May 12, 2019 03:22 AM            

quote:

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Originally posted by Randall:
But you were under Obama, right?

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posted May 12, 2019 07:21 PM            

The price of consumer goods has not gone up!

The Tariff Scare Narrative Has Collapsed–Latest Price Data Show No Inflation
JOHN CARNEY
9 May 2019

Donald Trump’s declaration that tariffs on $200 billion of Chinese goods would rise to 25 percent on Friday has revived claims that the import taxes hurt U.S. consumers and businesses.

Recent history, however, suggests that this fear is misplaced. Neither the tariffs placed on steel and aluminum a year ago nor the more recent ten percent tariff on Chinese goods has pushed prices of goods sold to consumers up.......
http://www.breitbart.com/economy/2019/05/09/the-tariff-scare-narrative-has-collapsed-latest-price-data-show-no-inflation/

So, some are fine with the $400 Billion per year of American wealth that's flowed to China for the last 25+ years.

Some are fine with China's theft of intellectual property from American businesses.

Some are fine with tariffs China has placed on American products for many years while Chinese products have been largely tariff free coming to America.

These people are fine with the unequal playing field negotiated by past US trade negotiators and China.

Trump isn't fine with China ripping America and American businesses off. Neither am I..and, I don't personally know anyone who is fine with the China rip off of America.

So, for a while, that $10 junk toy from China may cost $12.50, but that hasn't started to happen yet.

posted May 12, 2019 08:12 PM            

quote:

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White House economic adviser Larry Kudlow contradicted President Donald Trump on Sunday by acknowledging that U.S. consumers end up paying for the administration's tariffs on Chinese goods.

During an interview with "Fox News Sunday," Kudlow, who is the director of the National Economic Council, was pressed by anchor Chris Wallace about Trump's repeated, inaccurate claim that China itself pays for the tariffs.

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posted May 12, 2019 09:35 PM            

Kudlow: Tariffs Worth the Risk to Correct 20 Years-Plus of Unfair Trading Practices with China
JEFF POOR
12 May 2019

posted May 13, 2019 11:44 PM            

Investment Exodus / Shifting Supply Chains – China Walks into Trump’s “Golden Ticket” Trap…
May 13, 2019
sundance

President Trump is executing one of the most brilliant geopolitical economic resets in the history of global trade. It really is stunningly remarkable how President Trump has controlled the entire landscape. The consequential phase now begins.

It is fascinating how the financial pundits didn’t see this coming. Perhaps one of the best indicators of where things are today comes from this quote within the South China Post:

“The Administration’s Section 301 tariffs and China’s retaliatory tariffs will now further disrupt – or even break – many thousands of supply chains in both countries.”

[Nelson Dong, a senior partner at Dorsey & Whitney]

The quote by Nelson Dong is stated *as if* shifting/breaking supply chains is a flaw in the approach. It’s not. Exactly the opposite is true; this is a feature of the strategic reset. A specific and purposeful feature designed by President Trump.

What Dong is predicting is the deconstruction of (the China) “one-belt, one-road”.

As President Trump highlighted today, over time (and it won’t take long) there will be an exodus of multinational manufacturing away from China. Corporations will shift their purchase agreements, manufacturing and assembly plans to ASEAN countries outside the investment ‘risk zone’ that is now China.

Notice some of the nuance (specific references) within President Trump’s tweets. Japan, Vietnam (President Trang Dai Quang), South Korea (KORUS), Philippines and India are positioned to pick-up business.

To counteract the predictable exodus the Chinese state-run enterprises (and banks) will offer incentives to retain the corporate manufacturing business. This process means China, in essence, subsidizes the tariffs:

China has no choice if they want to retain their economic model. Remember, China’s economy is deep (manufacturing) but also narrow. They are dependent on raw materials, customers and market access. {Go Deep}

Additionally, President Trump announces today he has not made any decision on the next phase of 25% tariffs on the remaining $350 billion in Chinese products. He doesn’t need to. Merely the possibility of additional tariffs will pause any further investment; and some companies not currently impacted will make decisions to avoid the possibility of impact.

President Trump has walked Chairman Xi into a trap. There is only downside for China in the current dynamic. In an effort to avoid the downside, China will bleed cash to retain their economic position…. However, this can only last so long.

President Trump knows the strength of our U.S. position is that our economy is deep and wide. The U.S. is a self-sustaining economy. Almost 80% of our internal production and manufacturing is purchased within our own market.

In the big picture – economic strength is an outcome of the ability of a nation, any nation, to support itself first and foremost. If a nations’ economy is dependent on other nations to survive it is less strong than a nation whose economy is more independent.

The reality of China as a dependent economic model; heck, they cannot even feed themselves; puts them at greater risk from the effects of global economic contraction. However, more importantly it puts China at risk from President Trump’s strategic use of geopolitical economic leverage to weaken their economy. Trump is exploiting that risk.

As things go forward, China cannot sustain a long-term economic conflict with the U.S. As each day passes the ASEAN alliance will see their investment grow as companies pull-out of China and invest in S-Korea, Vietnam, Philippines, India etc. The GDP of our allies (including Mexico) grows, and the controlled GDP of China, as an adversary, shrinks.

(LA Times) GoPro Inc. will move most of its U.S.-bound camera production out of China by summer, becoming one of the first brand-name electronics makers to take such action to minimize the impact of the U.S.-China trade war.

“Today’s geopolitical business environment requires agility,” GoPro Chief Financial Officer Brian McGee said in a statement Monday. “We’re proactively addressing tariff concerns.” The company is still deciding where to put the manufacturing operation. (more)

All of this was entirely predictable. President Trump and Ambassador Lighthizer told the world what to expect in 2017:

Da Nang, Vietnam – United States Trade Representative Robert Lighthizer today released the following statement in response to President Trump’s speech on trade between the United States and the Indo-Pacific region, at the Asia Pacific Economic Cooperation (APEC) CEO Summit (emphasis mine):

“The President spoke loud and clear: the era of trade compromised by massive state intervention, subsidies, closed markets and mercantilism is ending. Free, fair and reciprocal trade that leads to market outcomes and greater prosperity is on the horizon.

“President Trump understands that too many nations talk about free trade abroad, only to shield their economies behind tariff and non-tariff barriers at home. The United States will no longer allow these actions to continue, and we are willing to use our economic leverage to pursue truly fair and balanced trade.

“I look forward to doing as the President instructed me and to pursue policies that will improve the lives of our workers, farmers and ranchers.”
http://theconservativetreehouse.com/2019/05/13/investment-exodus-shifting-supply-chains-china-walks-into-trumps-golden-ticket-trap/

posted May 14, 2019 02:31 PM            

..every action has a
reAction, a consequence,
you can not pick and
choose just what you
want to see, you have
to see
the big picture...

posted May 14, 2019 06:53 PM            

quote:

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Originally posted by jwhop:
"Actually, we were doing better under Obama. Money is much tighter now."

Who's that mythical WE you're talking about?

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