Repercussions of all-out Trade Wars....

[Wry Catcher]

Most likely this is simply a high-level game of negotiations by both sides, and that both sides know they can't take it too far. They'll most likely find some areas of agreement and everyone will stop losing their shit.

But as I said two years ago when Trump started tossing the idea of large tariffs around, China owns over a TRILLION in US debt, and could fuck us over if it wanted to. I'm assuming Trump realizes that. I hope. Maybe.
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Trump's universe is Trump. Period! He has shown no compassion, no understanding and no effort to benefit others. His every move since he was given the power of the office of President to all about him.

I wonder if Pence, Ryan or McConnell are any different? They have never spoken out when he flips and flops, lies and attacks the First Amendment's Right of the Free Press, and anyone who doesn't kiss his ass.

The White House is in chaos, the Congress chronically divided, and the Party in power moves along as if everything would be wonderful, if and only if the press and Mueller would go away.

 

[my2¢]

Most likely this is simply a high-level game of negotiations by both sides, and that both sides know they can't take it too far. They'll most likely find some areas of agreement and everyone will stop losing their shit.

But as I said two years ago when Trump started tossing the idea of large tariffs around, China owns over a TRILLION in US debt, and could fuck us over if it wanted to. I'm assuming Trump realizes that. I hope. Maybe.
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Trump got rich partly by screwing those who owned debt in his business entities. He (his companies) declared bankruptcy and had his investors settle for pennies on the dollar. Don't see how that works with China without turning US into Greece and setting off a world-wide economic depression. Also don't see how China can foreclose on us? Bottom line, I'm not sure how the US debt plays into this.

 

[nat4900]

Wait until China decides to go with AirBus instead of Boeing.......that added "nail"in the economy's "coffin" will sober up many of his acolytes.

President Trump will visit a Boeing plant in St. Louis on Wednesday to celebrate the tax cut his party handed to American companies. But lurking in the background is a clash over trade — one in which Boeing is the most vulnerable target.

The tariffs on steel and aluminum that Mr. Trump announced last weekhave already turned iconic American businesses — Harley-Davidson, Levi’s, makers of Kentucky bourbon — into prey for trading partners bent on retaliation.

Boeing, which sends 80 percent of its commercial planes abroad, calls itself the nation’s biggest manufacturing exporter. So it is the company with the most at stake in a trade fight — especially in China, one of the fastest-growing aircraft markets.

Singled out by the Trump administration as the nation’s primary trade adversary, China has the greatest incentive to respond to the tariffs, economists and other analysts say.

“The likelihood of retaliation by their biggest single market, China, elevates this from an irritant to potentially disastrous, if not catastrophic,” said Richard Aboulafia, vice president of analysis at Teal Group Corporation, a consulting firm in Fairfax, Va. “A trade war is the simplest way to cut off this fantastic growth they have enjoyed.”

Boeing May Become a Target in a Trade War Over Trump’s Tariffs

 

[Mac1958]

Also don't see how China can foreclose on us? Bottom line, I'm not sure how the US debt plays into this.

China can (theoretically) sell its Treasuries on the market. An influx on available bonds would drive down prices (supply & demand), which would increase yields. Increases in yields lead to higher interest rates. Not to mention the PR angle, which would severely rattle markets, particularly the US equity market, which is already both nervous and highly priced.
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[Toddsterpatriot]

Trump cultist or not, any right wing business entrepreneur must sometime think beyond the catastrophe that is the Trump administration......eventually (sooner or later....hopefully, sooner) this clown will be gone from the oval office, and the repercussions of his ill-advised policies may linger way beyond his tenure.

Take for example the tariffs that China is imposing on our corn and soy bean exports to that country as retaliation to Trump's tariffs on China's exports.

The U.S. is NOT the only growers of these commodities.........Brazil, Argentina, Mexico and Canada are ALSO huge growers of corn and soy beans.......How long will it take for these countries to offer China a much better deal on these commodities???

And even more important, once these countries have established active trade with China, what would make China return to wanting U.S. trade on such commodities?

No doubt China has abused trade agreements with us.....mostly because of China's HUGE power to demand compliance to her own needs.......BUT, one of the unheralded advantage had we signed on to the TPP, was to break the strangle hold on China's self-serving demands.

Bottom line is this.........Trump has actually lost for the U.S. the first round of this looming trade war with China.......leaving open a substantial opportunity for other countries to satisfy China's needs for imports, leaving us out of the picture for decades to come as warehouses fill up with home-grown goods that no one will want.

How long will it take for these countries to offer China a much better deal on these commodities???

How long does it take to grow soybeans?

And even more important, once these countries have established active trade with China, what would make China return to wanting U.S. trade on such commodities?

If they aren't going to buy our stuff, what are they going to do with all their US dollars? Eat them?

leaving open a substantial opportunity for other countries to satisfy China's needs for imports, leaving us out of the picture for decades to come as warehouses fill up with home-grown goods that no one will want.

And what will the Chinese do as their warehouses fill up with cheap goods that no one will want?

 

[my2¢]

China can (theoretically) sell its Treasuries on the market. An influx on available bonds would drive down prices (supply & demand), which would increase yields. Increases in yields lead to higher interest rates. Not to mention the PR angle, which would severely rattle markets, particularly the US equity market, which is already both nervous and highly priced.
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Thanks for the explanation, I learned something. Guess I should have taken a class in macroeconomics back in the 70's when I had the chance.