Trading wars impact

Trading assets that appreciate for rapidly depreciated stuff is the path to being broke. That’s basically arguing it’s not bad if you use a HELOC to buy a new TV every month. Since you’re trading your asset (home equity) for a good.

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If I can scribble something on paper and use that to buy stuff I would do that all day everyday.

That’s essentially what US does.

If you want overall less trade deficit, sure, start by incentivizing people to save more. How? Push up interests rate. By the way government running a huge and increasing deficit works against that goal.

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I’m all for lowering spending to eliminate the deficit. It’s completely irrational to think we can adjust tax rates to close the deficit. We’ve literally never collected a high enough percent of GDP in taxes to fund the current level of spending.

The scribble something on paper part is so horribly inaccurate that there’s no point in discussing it.

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https://finance.yahoo.com/news/insight-job-jitters-mount-chinas-045608081.html

That’s classy. Hey, here’s a WeChat message. You’re laid off.

“A quarter of those affected have cut jobs, 37 percent have moved production out of China in the past 12 months, while 33 percent plan to move in the next 6-12 months.”

That was predictable. Now China is too expensive, so manufacturers are leaving.

China needs to move its economy from investment led manufacturing towards service. It’s a painful transistion and they are moving.

Last month’s manufacturing ISM sank below 50 but service ISM is still above 50.

China’s biggest problem is itself. It’s not liberalizing its economy fast enough and its demographics is getting worse fast. Xi is not reforming fast enough and I am not sure he’s a reformer at heart.

Already done enough over the past decades. Can afford to take a break.

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Have been talking for ages. Ain’t they doing already? Not moving fast enough or got trump distracted.

Not moving fast enough. There are still a lot of deadweight in the state owned companies. Think steel mills and crap like that in the northeast. Need to cut them loose but Xi is dragging feet.

Xi is shit. :-1:

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Manchuria?

Still 学习 ing

Maybe you should lead China if you think you’re better than Xi.

CCP is the biggest mafia in the world. I am not ruthless enough. :smile:

Again you have disgraced yourself by badmouthing the CCP. They will go after you in due time if the white supremacists didn’t take care of you first… :rofl:

Are you a CP member? Jack managed to hide it from public till recently. Come on, spill it out.

Who’s Jack? Jack Ma?

Trump’s trade war precipitated what you are seeing now. Lets see if Xi can give up his arrogance and day dreaming…

US can run trade deficits. We dont care about it. We care about someone using our money to hurt us. And feel entitled to do it at the same time. The charade can’t continue.

US should spread the trade deficit between countries who are focused on developing their nation and people, over those whose sole focus is to be come a superpower by any means. Time to make South Korea out of countries like Vietnam and others.

Interesting. Did Trump time travel to 2007? Industry share actually went up in 2017.

America is no match for a rising behemoth like China. It’s best to cooperate and mutually benefit.

Kudlow out on CNBC doing damage control:

Truth is trade hawks and doves are battling it out in WH. Hawks don’t want a deal. They are trying their best to sabotage.

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