Nobody knows for sure how this donald experiment will turn out;
Mexico says she will retaliate with a similar tax should US impose one. Experts cite the NAFTA treaty which bans such tariffs. They also reportedly say most of Mexico's exports are actually products of American companies that ran away from high labor costs in the US.
So assuming US imposes a tax on Mexican goods, the cost is transferred to Trump's voters.
I am waiting to hear what he will do about China. How much in USD bonds does China hold as of today? Does anybody have any figures? What happens if China announces the re-sale of the same?
But I guess they won't do that because the dollar might sink and undermine the Chinese exports.
With or without protection; Us share of global economy is going to shrink further; I think right now it down to 15-17% from highs of 25-30% recently; so China and Mexico should simply look elsewhere; there is enough market for everyone.
What excite me about Donald Trump is that fact that he has no interest for anything outside the USA. Let him stay insular like North Korean hermitic regime. The world will breathe a sign of relief when yankees are not out there playing policy experiment (from "think tanks") on the world. Time they spent time fixing their messed up country - with horribly expensive health care & education system - institutionalized racism & apartheid mostly against black & brown people -with majority either on jail or food stamps or with debilitating criminal record - and of course huge mountain of private/public debt - yankees are likely to retire before they pay off college debt.
US has enough internal problems to keep them busy for 30yrs. Countries like those Northern Europe or Japan or South Korea - can go round lecturing the world and showing them how it can be done - coz they fewer problems.
After completing mexico wall he can go ahead and wall the pacific/altantic & canada border - and even close intl airports - I couldn't careless.Most US president have tended to think their job basically was foreign policy - Trump is a break - his policy and focus is domestic. For that reason I remain hopefully all with turn out well.
Chinese influence over the last few years has been overwhelmingly positive and as US retreats to fix it's domez - we should be ready for China & Russia stepping up to fill the void.Mexico says she will retaliate with a similar tax should US impose one. Experts cite the NAFTA treaty which bans such tariffs. They also reportedly say most of Mexico's exports are actually products of American companies that ran away from high labor costs in the US.
So assuming US imposes a tax on Mexican goods, the cost is transferred to Trump's voters.
I am waiting to hear what he will do about China. How much in USD bonds does China hold as of today? Does anybody have any figures? What happens if China announces the re-sale of the same?
But I guess they won't do that because the dollar might sink and undermine the Chinese exports.
Mexico says she will retaliate with a similar tax should US impose one. Experts cite the NAFTA treaty which bans such tariffs. They also reportedly say most of Mexico's exports are actually products of American companies that ran away from high labor costs in the US.
So assuming US imposes a tax on Mexican goods, the cost is transferred to Trump's voters.
I am waiting to hear what he will do about China. How much in USD bonds does China hold as of today? Does anybody have any figures? What happens if China announces the re-sale of the same?
But I guess they won't do that because the dollar might sink and undermine the Chinese exports.
With or without protection; Us share of global economy is going to shrink further; I think right now it down to 15-17% from highs of 25-30% recently; so China and Mexico should simply look elsewhere; there is enough market for everyone.
What excite me about Donald Trump is that fact that he has no interest for anything outside the USA. Let him stay insular like North Korean hermitic regime. The world will breathe a sign of relief when yankees are not out there playing policy experiment (from "think tanks") on the world. Time they spent time fixing their messed up country - with horribly expensive health care & education system - institutionalized racism & apartheid mostly against black & brown people -with majority either on jail or food stamps or with debilitating criminal record - and of course huge mountain of private/public debt - yankees are likely to retire before they pay off college debt.
US has enough internal problems to keep them busy for 30yrs. Countries like those Northern Europe or Japan or South Korea - can go round lecturing the world and showing them how it can be done - coz they fewer problems.
After completing mexico wall he can go ahead and wall the pacific/altantic & canada border - and even close intl airports - I couldn't careless.Most US president have tended to think their job basically was foreign policy - Trump is a break - his policy and focus is domestic. For that reason I remain hopefully all with turn out well.
Chinese influence over the last few years has been overwhelmingly positive and as US retreats to fix it's domez - we should be ready for China & Russia stepping up to fill the void.Mexico says she will retaliate with a similar tax should US impose one. Experts cite the NAFTA treaty which bans such tariffs. They also reportedly say most of Mexico's exports are actually products of American companies that ran away from high labor costs in the US.
So assuming US imposes a tax on Mexican goods, the cost is transferred to Trump's voters.
I am waiting to hear what he will do about China. How much in USD bonds does China hold as of today? Does anybody have any figures? What happens if China announces the re-sale of the same?
But I guess they won't do that because the dollar might sink and undermine the Chinese exports.
Mexico says she will retaliate with a similar tax should US impose one. Experts cite the NAFTA treaty which bans such tariffs. They also reportedly say most of Mexico's exports are actually products of American companies that ran away from high labor costs in the US.
So assuming US imposes a tax on Mexican goods, the cost is transferred to Trump's voters.
I am waiting to hear what he will do about China. How much in USD bonds does China hold as of today? Does anybody have any figures? What happens if China announces the re-sale of the same?
But I guess they won't do that because the dollar might sink and undermine the Chinese exports.
With China the likely flash points are Taiwan and South China sea. His logic of course is to wave a big military stick. Trump is clinically insane. But we have known this for over a year now.
While he has no interest with anything outside Trump, he is the whole world's problem as the Mexico drama clearly shows. What was once a campaign issue restricted to America is now going global. He has one solution for everything...his way or the highway. Putin might have enough on him to use him as he wishes.
With this, I agree with you. USA has trade deficits with most of Africa, so should they allso impose the same things Trump is doing?
US companies build China to where it is now, with Bill Clintons blessing. The problem is they overdid it and now they are pulling back. But China is in a more powerful position all over the world and USA pulling back only strenghtens their resolve.
There seems to be no concerted efforts to anylyze these goon's ideas. Democrats have been quiet instead of being the loudest.
Retreating from the world scene only weakens USA.Mexico says she will retaliate with a similar tax should US impose one. Experts cite the NAFTA treaty which bans such tariffs. They also reportedly say most of Mexico's exports are actually products of American companies that ran away from high labor costs in the US.
So assuming US imposes a tax on Mexican goods, the cost is transferred to Trump's voters.
I am waiting to hear what he will do about China. How much in USD bonds does China hold as of today? Does anybody have any figures? What happens if China announces the re-sale of the same?
But I guess they won't do that because the dollar might sink and undermine the Chinese exports.
With China the likely flash points are Taiwan and South China sea. His logic of course is to wave a big military stick. Trump is clinically insane. But we have known this for over a year now.
Every country has the right to do whatever they wish within their borders. It not illegal to ban import or exports or build walls. Yesterday I was coming from Ug - and I was told - all maize export from Kenya are banned. US should do whatever they think is right for their country...but when it comes to some issues...then best to default to say the UN.
Let hope Trump will confine his madness to US - and we will live happly thereafter.With this, I agree with you. USA has trade deficits with most of Africa, so should they allso impose the same things Trump is doing?
US companies build China to where it is now, with Bill Clintons blessing. The problem is they overdid it and now they are pulling back. But China is in a more powerful position all over the world and USA pulling back only strenghtens their resolve.
My biggest beef with Obama and previous US regime is starting wars - from vietnam to middle east now. Until Trump does that..he is in my good books. I really don't care if he goes protect local US industry or tighten immigration - all that - is all good - but unilaterally starting wars or overthrowing foreign governments - would be bad. That is when he cross my line.
I think what China and Putin have done recently is worth emulating. China esp has been commendable. Putin seem to also understand what works in Middle East than US wobbling policy experiments.
Yeah there are sign he is insane - some crazy ideas so far include- US embassy in Jerusalem and opening torture chambers all over the world - would point at insanity. Trying to provoke 1B crazy muslim for some 5M isrealis is not a smart move.
Which war did Obama start?
Btw, do you think the Chinese are any better than the Americans? All the South Asians countries are deep scared of a mighty China. They would rather have the US presence to counter the Chinese aggression. Having one too powerful force in the world is not good. As of Russia, forget. Produces nothing worth the mention.My biggest beef with Obama and previous US regime is starting wars - from vietnam to middle east now. Until Trump does that..he is in my good books. I really don't care if he goes protect local US industry or tighten immigration - all that - is all good - but unilaterally starting wars or overthrowing foreign governments - would be bad. That is when he cross my line.
I think what China and Putin have done recently is worth emulating. China esp has been commendable. Putin seem to also understand what works in Middle East than US wobbling policy experiments.
Yeah there are sign he is insane - some crazy ideas so far include- US embassy in Jerusalem and opening torture chambers all over the world - would point at insanity. Trying to provoke 1B crazy muslim for some 5M isrealis is not a smart move.
Economists come here.
I need a little education on Trump's declared protectionist policies. He plans to impose tariffs on Mexican imports. How will that work? Mexico says it will simply retaliate against American goods. That sounds like a trade war.
Will DJT take on China as well? Could he pull off such a trick against two of the leading trading partners and win?
Economists come here.
I need a little education on Trump's declared protectionist policies. He plans to impose tariffs on Mexican imports. How will that work? Mexico says it will simply retaliate against American goods. That sounds like a trade war.
Will DJT take on China as well? Could he pull off such a trick against two of the leading trading partners and win?
This isn't a new concept.
It doesn't work. 20% isn't a safe trade deal. It's not just a case of imposing those costs on Americans. There are other insurance type policies and conditions that won't safe guard for such a price hike.
In cases where dictators have imposed high tariffs on foreign imports, investors just leave that country and take the business elsewhere. Zimbabwe is an example of tariffs whenever that dictator felt like kicking out foreigners but economically it doesn't work: http://www.chronicle.co.zw/zesa-tariffs-hike-panic-business-warns-of-imminent-closure/
Mexico can just take their business elsewhere like China or Russia. Maybe it's for the best. Americans are too entitled anyway. Poverty might be the solution to make America great again.
The concept of a large, affluent middle class is the cornerstone of the American dream. A dream in which anyone with a high school diploma and hard work could easily afford a nice house in the suburbs and 2 cars. Americans assume that this is the way the universe should work. That Americans have the "God given right" to the American dream. However, this reality of a wealthy and prosperous middle class is not the natural state of things, but a by product of a very unique set of historical circumstances, specifically, the end of World war II.
At the end of the Second World war, the US was the only major industrial power left with its industry and infrastructure unscathed. This gave the US a dramatic economic advantage over the rest of the world, as all other nations had to buy pretty much all the manufactured goods they needed from the US, and use their cheap natural resources as form of payment As a consequence, the American owners of the capital and means of production had to rely heavily on the American relatively small (on a Global scale) and highly skilled work force, since they had no one else to hire to men the factories. This gave the working class a lot of leverage to claim for itself a decent share of the high profits the American industrial complex in the post world war II world. This allowed for the phenomenal growth of the US middle class we saw in the 50s and 60s. A growth so incredible, that while the US middle class made up less than 5% of the world's population, it consumed 1/3 of its resources.
However, over time, the other industrial powers in Europe and Asia rebuild themselves and started to compete with the US. Not only that, but countries like Brazil, South Africa, Argentina, India, China, Mexico, Thailand, Turkey, South Korea, Vietnam and more also became industrialized. This meant that they were no longer selling their natural resources cheaply in exchange for US made industrial goods. Quite the contrary, they themselves started to bid against the US for natural resources to fuel their own industries. And more importantly, the US work force was no longer was the only one qualified to work on modern factories and to have proficiency over modern industrial processes. This meant that the US middle class could no longer easily outbid pretty much everyone else for natural resources, and the owners of the capital and means of production no longer dependent solely on this small and highly skilled work force. Many other countries now had an industrial base that rivals or surpasses that of the US, and a qualified work force to operate modern factories, if US companies chose to move productions out of the US. This meant that they also had their own middle classes that was able to bid against the US middle class for those limited global resources. And more importantly, manufacturers now can engage in global wage arbitrage, by moving production to a country with cheaper labor.
And the consequences of this global wage arbitrage? A dramatic, unprecedented and unimaginable drop in world poverty. Where once the American middle class was so wealthy that it voraciously consumed 1/3 of the world resources, that wealth has been redistributed around the world, thanks to globalization. This means that We are going back to the normal, where the US middle class is not that different from the middle classes from the rest of the world. The US middle class will get poorer, while the rest of the world will leave poverty and abject poverty and join a new, more modest middle class. And both the poorer US middle class and the emerging global middle class will meet at some middle ground. It is a "return to the mean" and that cannot be changed. ? This is where the decline of the US middle class is coming from. There are no political solutions for it. It is the way it is. Any politician who claims to be able to restore "the good old days" is lying.
Source (https://www.reddit.com/r/worldnews/comments/52rluu/ford_is_shifting_all_north_american_smallcar/d7n5ibu/)
QuoteThe concept of a large, affluent middle class is the cornerstone of the American dream. A dream in which anyone with a high school diploma and hard work could easily afford a nice house in the suburbs and 2 cars. Americans assume that this is the way the universe should work. That Americans have the "God given right" to the American dream. However, this reality of a wealthy and prosperous middle class is not the natural state of things, but a by product of a very unique set of historical circumstances, specifically, the end of World war II.
At the end of the Second World war, the US was the only major industrial power left with its industry and infrastructure unscathed. This gave the US a dramatic economic advantage over the rest of the world, as all other nations had to buy pretty much all the manufactured goods they needed from the US, and use their cheap natural resources as form of payment As a consequence, the American owners of the capital and means of production had to rely heavily on the American relatively small (on a Global scale) and highly skilled work force, since they had no one else to hire to men the factories. This gave the working class a lot of leverage to claim for itself a decent share of the high profits the American industrial complex in the post world war II world. This allowed for the phenomenal growth of the US middle class we saw in the 50s and 60s. A growth so incredible, that while the US middle class made up less than 5% of the world's population, it consumed 1/3 of its resources.
However, over time, the other industrial powers in Europe and Asia rebuild themselves and started to compete with the US. Not only that, but countries like Brazil, South Africa, Argentina, India, China, Mexico, Thailand, Turkey, South Korea, Vietnam and more also became industrialized. This meant that they were no longer selling their natural resources cheaply in exchange for US made industrial goods. Quite the contrary, they themselves started to bid against the US for natural resources to fuel their own industries. And more importantly, the US work force was no longer was the only one qualified to work on modern factories and to have proficiency over modern industrial processes. This meant that the US middle class could no longer easily outbid pretty much everyone else for natural resources, and the owners of the capital and means of production no longer dependent solely on this small and highly skilled work force. Many other countries now had an industrial base that rivals or surpasses that of the US, and a qualified work force to operate modern factories, if US companies chose to move productions out of the US. This meant that they also had their own middle classes that was able to bid against the US middle class for those limited global resources. And more importantly, manufacturers now can engage in global wage arbitrage, by moving production to a country with cheaper labor.
And the consequences of this global wage arbitrage? A dramatic, unprecedented and unimaginable drop in world poverty. Where once the American middle class was so wealthy that it voraciously consumed 1/3 of the world resources, that wealth has been redistributed around the world, thanks to globalization. This means that We are going back to the normal, where the US middle class is not that different from the middle classes from the rest of the world. The US middle class will get poorer, while the rest of the world will leave poverty and abject poverty and join a new, more modest middle class. And both the poorer US middle class and the emerging global middle class will meet at some middle ground. It is a "return to the mean" and that cannot be changed. ? This is where the decline of the US middle class is coming from. There are no political solutions for it. It is the way it is. Any politician who claims to be able to restore "the good old days" is lying.
Source (https://www.reddit.com/r/worldnews/comments/52rluu/ford_is_shifting_all_north_american_smallcar/d7n5ibu/)