TRADE WAR

Can someone explain why this is a good thing? Trump brags about how great the market has been but it is set to open right now about 500 points down, down 3000 points from its high and over 10%, hard to hang your hat on that.  We have a great economy right now, do we really need a self inflicted recession at the moment? 

https://www.cnbc.com/2018/04/04/china-new-us-tariffs-including-soy-cars-and-chemicals.html

Because these guys suck. And who wants to bend over to them?

 

Al Cappucino - 

Because these guys suck. And who wants to bend over to them?

 



so pride? 

Math

We buy a lot from China. They don't buy nearly as much from us. They will pay more on tariffs. Prices will go up, but our govt will get a lot of money out of it.

It's basically a new sales tax. If the money is spent wisely, it could be ok. If it is wasted, it sucks.

We put $60 billion in tariffs on China, and they responded with $6 billion.

That is like me punching my neighbor in the face and banging his wife, and him in retaliation, stealing my Sunday New York Times before I wake up.

There isn't a trade war yet.

I used to love CNBC, but their bias has gotten comical, at best take everything they report on Trump with a grain of salt.

dangerboy12 - Math

We buy a lot from China. They don't buy nearly as much from us. They will pay more on tariffs. Prices will go up, but our govt will get a lot of money out of it.

It's basically a new sales tax. If the money is spent wisely, it could be ok. If it is wasted, it sucks.


Keep in mind as well that the stability of the Chinese economy is anchored by US bonds.



Economically China wants the US to remain strong and continue purchasing their exports.

Zned -


We put $60 billion in tariffs on China, and they responded with $6 billion.



That is like me punching my neighbor in the face and banging his wife, and him in retaliation, stealing my Sunday New York Times before I wake up.



There isn't a trade war yet.



I used to love CNBC, but their bias has gotten comical, at best take everything they report on Trump with a grain of salt.

Exactly this

https://history.libraries.wsu.edu/spring2017/2017/03/22/the-epidemic-effects-of-sex-trafficking-in-asia/

There is a global issue spreading rapidly that attention needs to be called to, affecting the human population in the shadows. Sex trafficking has again and again, become a reoccurring problem, especially in the larger cities, behind closed doors. This is exploitation of men, women, and children for sexual use almost in ‘slave like conditions’. Sex trafficking is not a matter of will, rather a matter of force. Most individuals are taken, kidnapped, lead or even sold into trafficking in this respect. In Asia, this matter is growing rapidly every day, in the major hubs of Asia such as Tai Wan, Vietnam, or Hong Kong. Many people are working hard to prevent sex trafficking and locate the trade. The goal is to end sex trafficking and the ideology of modern day slavery, except the object desired is not labor, but human sexuality.

camicom - 
Zned -

We put $60 billion in tariffs on China, and they responded with $6 billion.

That is like me punching my neighbor in the face and banging his wife, and him in retaliation, stealing my Sunday New York Times before I wake up.

There isn't a trade war yet.

I used to love CNBC, but their bias has gotten comical, at best take everything they report on Trump with a grain of salt.

Exactly this


but when when Trump rolled back regulations you were in support of free market, now you are against free market 4 days later.....please explain cause i am curious, or are you just pro whatever trump thinks? never mind thats a stupid ass question.

camicom - 

ksacs revenge -

Why have any standards at all?

I agree. Should be a free and fair market. Can't believe you and I actually agree on something.

Zned -


We put $60 billion in tariffs on China, and they responded with $6 billion.



That is like me punching my neighbor in the face and banging his wife, and him in retaliation, stealing my Sunday New York Times before I wake up.



There isn't a trade war yet.



I used to love CNBC, but their bias has gotten comical, at best take everything they report on Trump with a grain of salt.

check your numbers on the Chinese retaliation

Co3 - 
Zned -


We put $60 billion in tariffs on China, and they responded with $6 billion.



That is like me punching my neighbor in the face and banging his wife, and him in retaliation, stealing my Sunday New York Times before I wake up.



There isn't a trade war yet.



I used to love CNBC, but their bias has gotten comical, at best take everything they report on Trump with a grain of salt.

check your numbers on the Chinese retaliation



Implemented tariffs, not possible tariffs. I have read the articles about the prospective tariffs, but they haven't happened yet.

We put tariffs on $50 billion of Chinese goods, not $50 billion in tariffs on Chinese shit.

Reestablishing balance in global trade is going to take a little while, and the economy won't escape unscathed (markets).

We, as consumers, must also understand that we will pay more goods affected under this tarrif, and we need to be okay with that. Once the field is leveled, then American made good will be competitively priced for American Consumers.

Before people start bemoaning about free trade, please understand how little emerging nations pay their workforce if they are able to make good so inexpensively that added costs, such as transpo and logistics, still make these products from foreign countries cheaper than American made goods. Not sure if it is free trade when your competitor nations reprehensible wages and use questionable labor practices to meet their bottom line.

Josh - 
camicom - 
Zned -

We put $60 billion in tariffs on China, and they responded with $6 billion.

That is like me punching my neighbor in the face and banging his wife, and him in retaliation, stealing my Sunday New York Times before I wake up.

There isn't a trade war yet.

I used to love CNBC, but their bias has gotten comical, at best take everything they report on Trump with a grain of salt.

Exactly this


but when when Trump rolled back regulations you were in support of free market, now you are against free market 4 days later.....please explain cause i am curious, or are you just pro whatever trump thinks? never mind thats a stupid ass question.

camicom - 

ksacs revenge -

Why have any standards at all?


I agree. Should be a free and fair market. Can't believe you and I actually agree on something.


Do you think it is an issue about how trading partner labor markets (China for example) treat their employees to make the products they export at the prices they charge?


You probably don't, but people need to understand that emerging nations pay their labor peanuts, literally, while most people bitching about this particular round of tarrifs, think we should have a $15/hour minimum wage in this country. It is laughably hypocritical.

Billco - Reestablishing balance in global trade is going to take a little while, and the economy won't escape unscathed (markets).

We, as consumers, must also understand that we will pay more goods affected under this tarrif, and we need to be okay with that. Once the field is leveled, then American made good will be competitively priced for American Consumers.

Before people start bemoaning about free trade, please understand how little emerging nations pay their workforce if they are able to make good so inexpensively that added costs, such as transpo and logistics, still make these products from foreign countries cheaper than American made goods. Not sure if it is free trade when your competitor nations reprehensible wages and use questionable labor practices to meet their bottom line.

I know I should have at least some faith in central bankers but hopefully the increase uptick in goods isn't mistaken as inflation (or used as an excuse) and results in faster hiking. 

This is a perfect storm brewing 

 

NoNeed4aScreenName - 
Billco - Reestablishing balance in global trade is going to take a little while, and the economy won't escape unscathed (markets).

We, as consumers, must also understand that we will pay more goods affected under this tarrif, and we need to be okay with that. Once the field is leveled, then American made good will be competitively priced for American Consumers.

Before people start bemoaning about free trade, please understand how little emerging nations pay their workforce if they are able to make good so inexpensively that added costs, such as transpo and logistics, still make these products from foreign countries cheaper than American made goods. Not sure if it is free trade when your competitor nations reprehensible wages and use questionable labor practices to meet their bottom line.

I know I should have at least some faith in central bankers but hopefully the increase uptick in goods isn't mistaken as inflation (or used as an excuse) and results in faster hiking. 

This is a perfect storm brewing 

 



Raising rates to quickly would be difficult for the government, as we have seen recently the bond vigilantes are back, and they will choke the gov't on their borrowing costs to limit aggressive inflationary policy.



 

Josh - 
camicom - 
Zned -

We put $60 billion in tariffs on China, and they responded with $6 billion.

That is like me punching my neighbor in the face and banging his wife, and him in retaliation, stealing my Sunday New York Times before I wake up.

There isn't a trade war yet.

I used to love CNBC, but their bias has gotten comical, at best take everything they report on Trump with a grain of salt.

Exactly this


but when when Trump rolled back regulations you were in support of free market, now you are against free market 4 days later.....please explain cause i am curious, or are you just pro whatever trump thinks? never mind thats a stupid ass question.

camicom - 

ksacs revenge -

Why have any standards at all?


I agree. Should be a free and fair market. Can't believe you and I actually agree on something.


"I stand by nothing"

- Donald Trump


"I could shoot someone in the middle of 5th avenue and I wouldn't lose any supporters"

- Donald Trump


"slurp slurp slurp"

- Camicom

Zned -
NoNeed4aScreenName - 
Billco - Reestablishing balance in global trade is going to take a little while, and the economy won't escape unscathed (markets).

We, as consumers, must also understand that we will pay more goods affected under this tarrif, and we need to be okay with that. Once the field is leveled, then American made good will be competitively priced for American Consumers.

Before people start bemoaning about free trade, please understand how little emerging nations pay their workforce if they are able to make good so inexpensively that added costs, such as transpo and logistics, still make these products from foreign countries cheaper than American made goods. Not sure if it is free trade when your competitor nations reprehensible wages and use questionable labor practices to meet their bottom line.

I know I should have at least some faith in central bankers but hopefully the increase uptick in goods isn't mistaken as inflation (or used as an excuse) and results in faster hiking. 

This is a perfect storm brewing 

 



Raising rates to quickly would be difficult for the government, as we have seen recently the bond vigilantes are back, and they will choke the gov't on their borrowing costs to limit aggressive inflationary policy.



 

I'm wondering if the bond selling starts again soon. From a pure technical view to me I thought 10 year would find some footing around 2.74. I'm expecting more bond selling soon. But I think after a new high 10 year yield sees some sideways action between the new high and low

 

I agree it will he yard for them to raise but I feel like they will have no choice. Who knows though. I'm relatively new to watching the bond markets. Only really been watching for the past 2-3 years 

"I know I should have at least some faith in central bankers but hopefully the increase uptick in goods isn't mistaken as inflation (or used as an excuse) and results in faster hiking. "

Tariffs will be doing the FEDs job for them, they want to slightly deflate some of the asset bubbles and spark inflation. If it allows them to hike rates faster in preparation for the next recession all the better.

TzTinkle - "I know I should have at least some faith in central bankers but hopefully the increase uptick in goods isn't mistaken as inflation (or used as an excuse) and results in faster hiking. "

Tariffs will be doing the FEDs job for them, they want to slightly deflate some of the asset bubbles and spark inflation. If it allows them to hike rates faster in preparation for the next recession all the better.

Interesting point. 

 

While I took some economy classes in college,  I am in no way qualified to say if these tariffs will have a net positive or negative effect. We will have to revisit this thread in a year to find out.