china trade explained
6 responses | 1 like
Started by mcfarm - Aug. 6, 2019, 11:38 a.m.  here is a brief explanation from a guy who should know

By wglassfo - Aug. 6, 2019, 6:36 p.m.
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I'm sorry mc but all I could access was the comments so I was not able to read much of anything

This is my take on the situation, and if you have a different slant on things, please go ahead. All options need to be examined.

China is hoping a cheaper yuan will negate the Trump tarriffs

What this will do is cause anybody holding yuan to flee for the exits, or short yuan, thus china will have to print more yuan

Inflation will surely follow, in china, as the yuan falls to much lower levels

China and russia still have not figured out a way to avoid the USD in international settlements

China needs USD, to pay their intn'l settlements, such as material and food, which will cost a fortune as the yuan tumbles down in value

I may be wrong but given the amount of world debt, which is mostly an I.O.U when bonds are purchased, nobody wants to default on bond payments

Thus china will be the biggest loser in a race to the bottom, re: a currency war as they will need to print the most fiat, with higher inflation following in china

China is not a self contained country. They need USD to buy raw materials [oil and food, etc.]

By GunterK - Aug. 6, 2019, 11:37 p.m.
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Hi mcfarm

thanks for the link. Interesting comment..."they don't know what's going to hit them"

Maybe, he is right... I don't really know. Sometimes I wonder, if we (the US) know, how they can hit us

They have already stopped buying our ag products...not good for our farmers. And last week they crashed our stock market.

IMHO, we seem to always underestimate China. They are a technological powerhouse. We are used to buying their cheap stuff at Walmart. But, let's not forget, China is one of the three countries that have sent man into space.

IMHO, we always think our military is superior to theirs. The backbone of our military are the aircraft carriers. Russia just recently has developed hypersonic missiles that cannot be shot down. As far as I know, China has them too. An aircraft carrier is a sitting duck for such a weapon.

China has most likely already the capability to knock out all of our satellites from the ground.  This means, they could totally immobilize the Airforce,as well as our long range missiles, and stop all of the communications our army needs to fight a modern war.

Somewhere I read that our most advanced jet fighter, the F35, is using electronic parts made in China.... hellooooo! All it takes is a little secret chip, planted on their motherboards, to ...{use your imagination for this scenario)

I think, it would be whole lot nicer to be friends with China.

By wglassfo - Aug. 7, 2019, 12:02 a.m.
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"To be friends with china"

I don't know if friends  is the correct word

China was doing a good job of messing with our economy

The sold us all kinds of stuff

more than we sold to them

Trump said we can't afford to be the piggy bank

China had their hands very deep into our piggy bank

So how did we keep the piggy bank full

We had to print fiat

China got all the fiat they needed from the USA, selling us all their stuff for USD

They did very well

 That was not going to end well for the USA

Friends don't take advantage of friends

By silverspiker - Aug. 7, 2019, 4:02 a.m.
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....... is that a UFO in youour right 8ball9po kryet


By Jim_M - Aug. 7, 2019, 10:41 a.m.
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You make some great points Gunter.  I NEVER understood the thinking of putting any foreign countries parts, let alone logic components in our military equipment.  Which leads me to the next topic.  I think it's an indictment on the US the Huawei is the leading manufacturer of 5G components.  Have we as a country slipped so far down the manufacturing slide that the US isn't even a contender in manufacturing leading edge electronics or at least in volume?  

There is no escaping the fact that we put ourselves in this situation.  Moving forward, I think it is imperative, that we cannot do trade with another country that doesn't do equal trade with us.  Dollar for dollar.  Things get out of balance, we either restrict goods or apply tariffs.   We absolutely must manufacturer our own military equipment from top to bottom.  There can be no question of the integrity of that equipment.  

By mcfarm - Aug. 7, 2019, 11:11 a.m.
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you guys have made some great points that lots of Americans need to think about going forward. Total dirty rotten shame we have about 50 dems wanting to be President not of one them can articulate China as well you guys do.