Slump in China's Yuan will offset US tariffs

Discussion in 'Economics & Trade' started by fullmetaljack, Nov 1, 2018.

  1. ronv

    ronv Well-Known Member

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    Seems like the tipping point is when we start buying less of their stuff.
    But another world wide recession may start before then.
    upload_2019-2-7_19-35-12.png

    https://www.census.gov/foreign-trade/balance/c5700.html
     
  2. Zorro

    Zorro Well-Known Member

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    Chinese Money Flows to American politicians, Universities and DC Think Tanks and in exchange they get The Swamp promoting the Chinese Line at the expense of the US Worker

    Chinese Money Flooding American Universities in a Bind

    Members of the Twitterverse have begun to point out that certain U.S. think tanks have accepted money from Huawei, which the U.S. government considers to be linked to China’s intelligence apparatus. Yet they are not the only academic and research institutions that need to think seriously about their relationship with China these days — American universities have their own dilemmas to consider.​

    https://www.bloombergquint.com/opinion/chinese-money-is-a-trap-for-american-universities#gs.7Mmghl06
     
    Last edited: Feb 7, 2019
  3. Zorro

    Zorro Well-Known Member

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    Sure they do. Their devalued currency isn't worth as much in US dollars. These tariffs have created a fresh funding stream to the US Treasury with no corresponding inflation spike to the US Consumer.

    Weird how Lefties are all busted up over American Corporations paying less in US taxes but horrified that Chinese Producers are finally paying their fair share.

    That Chinese Communist Cash flowing to US Left Wing Politicians, Think Tanks and Universities gets Lefties pushing the Chinese Communist side over the American Worker in every policy disagreement.
     
    Last edited: Feb 7, 2019
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  4. ronv

    ronv Well-Known Member

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    As long as China is selling us (and the rest of the world) more than they are buying from us they don't care about the devalued currency. They like it.
    Of course the tariffs are inflationary. When you pay more for the same stuff, that's inflation.
    Yes a funding scheme to the US treasury in the form of a tax on Americans.
     
  5. Zorro

    Zorro Well-Known Member

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    We aren't paying more Silly, they are taking less, via devalued currency.

    So let's recap.

    Tariffs are flowing to the US Treasury, We aren't seeing price spikes. And our balance of trade finally closed nicely in the last month we have figures for.
    [​IMG]
     
  6. ronv

    ronv Well-Known Member

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    Do they pay their workers in dollars? Why no, no they don't. They pay them in Yuan. You know the money they get more of now.

    Of course our prices are going up. You hear manufactures crying about it every day.
    Here is a nice summary from Forbes:

    Let’s stop pretending. An import tariff is nothing but a tax on consumers and businesses. Not in the exporting country, but the importing one. So the 10% tariff on $200bn of Chinese imports that President Trump has just imposed is in reality a new tax on Americans. And it will hurt America much more than China.

    The tax will raise input prices for American businesses, increasing their operational costs and putting pressure on profit margins.This is likely to feed through into weaker wage and employment growth, leading to poorer retail sales and declining economic growth. The Trump boom is already fading: this tax seems likely to hasten its end.

    The tax will raise headline CPI inflation. How much inflation will rise depends on the extent to which producers are able and willing to absorb higher costs rather than passing them on to customers.The Fed might respond to rising cost-push inflation by increasing the pace of interest rate rises. This would dampen consumer demand at a time when it was already under pressure because of the wage and employment

    The tax will strengthen the U.S. dollar’s exchange rate. At the time of writing, the U.S. dollar was already up 10% versus the (offshore) Chinese renminbi. If China allows the onshore renminbi to depreciate, this would largely negate the impact of the tax on Chinese exporters while making life more difficult for U.S. exporters

    https://www.forbes.com/sites/france...ll-hurt-america-more-than-china/#23a3c8616276

    Then of course there is the whole picture which you conveniently left out.
    [​IMG]
     
  7. Mac-7

    Mac-7 Banned

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    Thats a far bigger issue to me than allowing enemies like china and russia to post on facebook

    For instance how many economists will promote free trade with china because they benefit financially even though they know it is not in our best interests?
     
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  8. TCassa89

    TCassa89 Well-Known Member

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    Actually, it is the higher tariffs that is an expense to Americans. We’re the ones who carry that tax burden
     
  9. Mac-7

    Mac-7 Banned

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    Losing factory jobs to china and paying welfare to unemployed American workers is a cost also
     
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  10. Zorro

    Zorro Well-Known Member

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    Apparently, they all will!
     
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  11. Zorro

    Zorro Well-Known Member

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    But WE pay in dollars, they take the pay-cut to cover the tariff, by getting fewer yuan for those dollars.
    No they aren't.

    The Producers Price Index is FALLING, not rising, of late.

    [​IMG]
    Actually, it was that nice drop at the end that was exactly what I captured and posted:

    We saw a nice turn finally toward the end of the year.

    [​IMG]
    Look closely at the end of your chart, it's there too. Much of the reduction in our trade balance came from our China Trade.

    Like Trump said, Trade Wars are easy to win when they are running large surpluses against our American Workers!

    Funny how the Left is always on the side AGAINST the American Workers and on the side FOR the Chinese Communist Gross Polluters who flood our Left Wing Colleges, Think Tanks and Left Wing Politicians with cash.

    Are you concerned that on issue after issue, the Left is always selling us out?
     
    Last edited: Feb 8, 2019
  12. AKS

    AKS Banned

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    Have you ever said it was good for our government to collect tens of billions in taxes? You sound waaay more like AOC than you do a conservative.
     
  13. AKS

    AKS Banned

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    You need to take an intro to econ class. Do they offer one at your high school?
     
  14. AKS

    AKS Banned

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    Who knew economics was so trivial. LOL!
     
  15. AKS

    AKS Banned

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    #1 is bullshit. Lower paying service industry? Major WTF.
     
  16. Mac-7

    Mac-7 Banned

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  17. ronv

    ronv Well-Known Member

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    They get more yuan for the dollar.
    upload_2019-2-8_11-46-19.png
    I bet you think the FED raised interest rates just to screw with Trump.

    Highest year in 10 years.


    Like Trump said, Trade Wars are easy to win when they are running large surpluses against our American Workers!

    Funny how the Left is always on the side AGAINST the American Workers and on the side FOR the Chinese Communist Gross Polluters who flood our Left Wing Colleges, Think Tanks and Left Wing Politicians with cash.

    Are you concerned that on issue after issue, the Left is always selling us out?[/QUOTE]
     
  18. jcarlilesiu

    jcarlilesiu Well-Known Member Past Donor

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    Are you seriously denying that service industry jobs pay more than manufacturing.
     
  19. AKS

    AKS Banned

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    Seriously? Of course they do. ALOT more.
    You aren't arguing that importing more goods is causing a higher demand for fry cooks are you? lol
     
  20. fullmetaljack

    fullmetaljack Well-Known Member

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    So the cons here are worried that China is buying liberal educators and politicians, but Russia buying the president and his family is ok.

    That’s some serious hypocrisy there.
     

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