As an outsider I see the trade war between the US and China as huge hurt for world economies. The Australian dollar and our share market for example are taking a massive hit as is the hip pocket of those Australians buying imported items... and what isnt imported today. I am reading that Trump's recalcitrance over the trade war could very well backfire on the US because of a move by China seen as smart by some economists. In the last 17 years, China has positioned itself as the US Government’s biggest creditor, splashing out on US Treasury bonds - a US government backed debt instrument that is virtually risk free. In 2002, China owned only $80 billion worth of the bonds but that has rapidly increased to $US1.1trillion today. This gives China the option to dump a huge portion of US Treasuries on to the market, which would collapse its value, distort interest rates, cause American borrowing costs to soar and lead to further mayhem on global markets.
Yes, Trump is an idiot. I know, you did not say that but I am willing to. Trump is almost following the playbook of the Great Depression and mixing it with a lot of emotionally charged egomaniac jerk knee decisions. A leader should not make decisions because someone made that person angry, or make matters worse because the press said something, or change his mind because everyone thinks he should do something. All economies of the developed and developing nations who are members of the WTO and IMF are affected by the actions of each other. If the US raises tariffs on steel from China, then to make up that loss, China raises taxes on imports from another country's corn. That country, to make up the loss, raises taxes on imports from another country, who raises taxes on the oil the US imports, and so on. We are all connected, and when one trade partner turns on another, it takes everyone down with it.
Do you realize how many US companies are in China? The USA is made in China. Trump will crumble as financial backers start threatening to cut his allowance. http://www.jiesworld.com/international_corporations_in_china.htm https://www.uschina.org/about/member-companies
I see little of this rhetoric as substantive. Does anyone think for a moment that Trump is originating these decisions? Hogwash. Powerful, knowledgeable insiders in Washington are likely within the underpinnings of most of it. To compare moves today with calamities economically during previous times will prove bogus. Wait and see! Frank
This is the first time in a long time that we've had a president who didn't bend over to the demands of every other world leader. For many years now, the US has subsidized Chinese businesses, and it's about time that comes to an end.
After reading the op's & a few other posts I quickly ran outside to see if the sky was falling. WHEW no change. Then i thought about my last purchases, maybe it's just me but no change in the price of what I normally buy. Surely something awful is happening so I checked our portfolios a slight dip there but nothing that hasn't happened many times before. Once all those were OK I thought about Trump sitting behind the oval desk . Was he researching China's weaknesses or was he waiting for a comprehensive report on China's economic vulnerabilities. My best guess is he was waiting for input from his economic advisers. Looking up China's declining economic status on the net and articles by the likes of Forbes I tend to agree with Joe Riley's post # 3.
I don't know if conservatives agree with everything Trump does, but here's the deal, we've had so many weak presidents for so many years, until it's comforting to finally have someone representing us who doesn't take crap. He may make mistakes, but ANYTHING is better than a leader who is too much of a wuss to speak their mind.
@Bess Barber Who has forgotten the news clip showing Obama kneeling down in front of the Saudi King, kissing his rings (I guess that's what he kissed, might as well have been his ass. Now imagine Trump doing it. This shows what we're talking about. Frank