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China Stops Buying US Agricultural Products Entirely

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posted on Sep, 10 2019 @ 05:42 PM
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a reply to: IAMTAT

That ended quickly.




posted on Sep, 10 2019 @ 07:06 PM
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a reply to: EmmanuelGoldstein

Japan recently picked up a lot of chinas slack on agricultural products and I'm sure they aren't the only ones who'd be happy to buy. Guess we will see...end of the day China is so polluted they are going to find it hard to grow their own food without it killing off a lot of people in 20-30 years.

Also not a whole lot of nations for them to turn to that aren't already trading what excess they have and the volume I would think would also be an issue. We will over come the hurdle even if it hurts some at first...but I think they will have a harder time.



posted on Sep, 10 2019 @ 07:34 PM
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a reply to: RickyD

There is some truth to that but:

The pollution plus ruthless population controls means that they will start seeing negative growth especially from the pollution which is horrendous



posted on Sep, 10 2019 @ 07:46 PM
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a reply to: Grimpachi


Is that last trick you mentioned selling all the US debt they bought up?

All that debt does is collect interest. There is no monthly payment. If they try to demand payment, we can just refuse... and they know it. As good as our economy is right now, we could get away with that; had they wanted to try demanding payment or else when our economy was struggling, we would not be in such a good position.

They could sell it off to other countries, of course... but that wouldn't affect us.

Think of it like a car note you make. The seller can take that note and sell it to a collection company or debt company, but does it really affect you? Nope... just a different name on the check. The terms are still in effect.

TheRedneck



posted on Sep, 10 2019 @ 07:59 PM
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a reply to: TheRedneck

That has been brought up. They could demand to redeem them and we could just say "Nope". It would not be great for us either but it would collapse their economy pretty hard



posted on Sep, 10 2019 @ 08:26 PM
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a reply to: FredT

I know it gets brushed off a lot but we really do hold all the cards when it comes to negotiations over trade with them. They need us more than we need them...sure we dont get cheap crap consumer products which will force business to make other arrangements but we don't NEED that stuff...they NEED our food!



posted on Sep, 10 2019 @ 08:27 PM
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a reply to: FredT

Well yea because if they force that move, once we say nope they become worthless and no one will want them.



posted on Sep, 10 2019 @ 08:29 PM
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a reply to: FredT

The thing is, it would be terrible for us under the Obama administration. Our credit rating is based on what other countries think of their chances of being repaid. It would take a hit, yes, but with such a bustling economy that hit would be minimized. Now, if we were to refuse to pay China for our debt and be struggling to make ends meet economically, that would be a disaster for us.

Trump knows this; he knows how credit operates very well. I also think he'd do it. I have a feeling China thinks that too.

TheRedneck



posted on Sep, 10 2019 @ 08:32 PM
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a reply to: olaru12

TOTAL FALICY!! China will NEVER stop buying US agricultural products! EVER!

Total FAKE NEWS! NEVER!! They would STARVE!!!!

That's all just MSM bravado.

China will NEVER stop buying US AG goods....not EVER!!!

You have no prooof, no source and absolutely ZERO backup for this statement!!!

Grain will continue to flow to China...their entire economy depends on it!

WRONG!!!

US Farmers are working harder than ever to supply grain to China, not even the slightest blip has occurred throughout all these "Sanctions" talks. Production is higher than ever recorded!!

Provide a "reliable" source!



posted on Sep, 10 2019 @ 08:40 PM
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Further...China doesn't have 1/10th the agricultural ability the US does. They don't have 1/10th of the arable land, and they don't have the means to process those grains and get them to market.

Seriously...are you kidding me, OP??? I thought you were smarter than this!!!

This kind of crap is just MSM bias to make you libs feel good. In any serious agricultural discussion among professionals and academics, you'd get laughed out of the building for making such an assertion!! Seriously! This country produces more yield per acre than any other country on planet earth, on an aggregate scale.

Hey, I'm not a fan (at all) of big agri-business, but it's hard to dispute their production numbers. I actually hate it, but there's NO WAY China is going to just stop buying heavy grain!! Just NO WAY!! That's a FANTASY of the left!

Just a FANTASY!



posted on Sep, 10 2019 @ 09:13 PM
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originally posted by: FredT
a reply to: TheRedneck

That has been brought up. They could demand to redeem them and we could just say "Nope". It would not be great for us either but it would collapse their economy pretty hard


A large part of their entire game is to manipulate their currency prices to stay artificially low to help their exports. They need a strong dollar and weak currency to make their products more attractive (cheaper for Americans).

A couple things would argue against dumping treasuries. They are paid in dollars and need to find a home for them; spend them, save them, or invest them.
They have way too many to simply sit on all of them as a reserve. You can spend them all, but their investment in treasures pays them a solid, safe return and helps prop up their economy. You could trade dollars into Euros or another weaker currency, but who would do that? The Euro is more volatile and more risky, and nothing out there is more attractive. When it comes to foreign exchange currency reserves the US dollar is King. china could expand gold or other holdings, but that increases China's currencies value. China wants to keep their own monetary-exchange value low, and demand for the dollar high. You do that by buying, not dumping.
If they mass sell treasuries, there is an abundance of dollars out there. That means two things:
The dollar depreciates against their currency (hurts Chinese exports), and the price gradually drops further for their notes and bonds. They can't sell enough on the market fast enough to avoid a fall in value. It'd take weeks or months. This makes all the dollars they turned into T-notes and dollars worth less than they were yesterday.
Second, the only buyer able to shell out ~$1 Trillion in notes and bonds in a short span is the US. So we can buy back our debt at a now depreciated rate.
We can do that with Reserves. We can even issue brand new bonds with a higher rate to make them more attractive, and China's holdings worth even less. And then use the capital raised by those newly-issued notes to buy back and retire all the Chinese notes for pennies on the dollar. No default necessary. We don't owe them face value until the bonds and notes are mature. Who buys Chinese holdings for 100% of face value on the market when they can buy a new note from the treasury at a higher interest rate?
China holds their IOU's (in x and y and z yrs) for a total of a trillion dollars. Why would they tank the value of the IOU's they hold by dumping them? Noone anywhere pays face value for a non-mature bond or note. And then there's the matter of what do they sell their holdings for? Do they take dollars back for bonds and notes? Back to step one, only with fewer dollars. Do they take back Euros or other exchange currencies? Weaker, less stable investments.
And if you're the US, you hand out better IOU's to other buyers to raise the cash to simply buy back your IOU's to China on the cheap.

There isn't any more attractive option for Chinese dollar holdings right now than spending them or continuing to buy T-notes and bonds, though they'll probably continue to try to wean themselves slowly.
edit on 10-9-2019 by RadioRobert because: (no reason given)



posted on Sep, 10 2019 @ 10:12 PM
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originally posted by: TheRedneck
a reply to: Grimpachi


Is that last trick you mentioned selling all the US debt they bought up?

All that debt does is collect interest. There is no monthly payment. If they try to demand payment, we can just refuse... and they know it. As good as our economy is right now, we could get away with that; had they wanted to try demanding payment or else when our economy was struggling, we would not be in such a good position.

They could sell it off to other countries, of course... but that wouldn't affect us.

Think of it like a car note you make. The seller can take that note and sell it to a collection company or debt company, but does it really affect you? Nope... just a different name on the check. The terms are still in effect.

TheRedneck


Actually no. If China dumped US bonds on the market it would destabilize world financial markets and drive interest rates higher. It is a financial nuclear option, but like I said it would also harm them mainly because the US buys over 5% of their products. Things would have to be really grim for them all ready to go that route.



posted on Sep, 10 2019 @ 10:47 PM
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a reply to: Grimpachi

Read RadioRobert's post just above yours. He does an excellent job of explaining it.

TheRedneck



posted on Sep, 11 2019 @ 12:34 AM
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a reply to: Grimpachi

If I owe you 1,000 lbs of gold, the last thing you want to do is make gold depreciate between now and when the debt is due.

The exact same thing is true of debts in dollars. We owe them a debt in trillions of dollars. They hold a few trillion more as a forex holding to facilitate trade. Why depreciate the IOU? Why depreciate their holdings? Moreover, selling the debt(s) off early for less than full yield when you don't have strong alternatives isn't a great plan either.
A mass sell off would probably wreck havoc on the markets because the lower dollar would shockwave everything else, but it's hardly a winning card for China's current position. China is a mass exporter. They want/need relatively healthy foreign markets so they can sell their consumer goods in exchange for hard foreign currencies. Their economy is built on exporting to those healthy economies for hard currency.

Both of those things will continue to be true in the near future.

Would it hurt the US? Change and realignment always carries short-term pain, so yes. But we can also buy back our debt for cheap(-er) in that scenario. China is left with more volatile and risky holdings in the future, and is suddenly faced with economic hardship at home which probably puts a crimp in their military build-up. Products built in the US would become more attractive (cheaper) at home and on world markets with a softer dollar. Importing foreign -made goods becomes more expensive. Etc, etc. It wouldn't signal doom. And we're better equipped to ride out that storm than any other major economy, so I'm not terribly worried about China trying to create a panic.



posted on Sep, 11 2019 @ 03:13 PM
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originally posted by: olaru12
modernfarmer.com... yRjpY



The latest escalation of the Trump-China trade war has led to an iron door slamming shut. On Tuesday, the Chinese Commerce Ministry announced that China will no longer be buying American agricultural products, a decision with huge, wide-ranging implications. Zippy Duvall, president of the normally conservative-leaning American Farm Bureau, called the decision a “body blow” to American agriculture.


trumps trade war just got real. Keep your eyes on the stock market; this could have disastrous consequences.
edit on Tue Sep 10 2019 by DontTreadOnMe because: IMPORTANT: New (old) Standards Are Being Enforced (again) For New Threads


262 points from another record, 227 gained today.



ETA: THANKS OBAMA!
edit on 11-9-2019 by LSU2018 because: (no reason given)



posted on Sep, 12 2019 @ 12:09 AM
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Chinese issue waivers for tariffs on 16 US goods


edit on 12-9-2019 by RadioRobert because: (no reason given)



posted on Sep, 12 2019 @ 03:06 PM
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**UPDATE**

Smack dab darn it!

Stocks closed higher today than yesterday.



posted on Sep, 12 2019 @ 03:40 PM
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trump blinked....

www.rawstory.com...



posted on Sep, 12 2019 @ 03:43 PM
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originally posted by: olaru12
trump blinked....

www.rawstory.com...

That was published three minutes before your post... How did you read it and share it so fast, Tana?


Also the actual Politico story you basically coopted your entire story from, though heavy-handed, is far less sensational than your clickbait quotes.



What’s different now is that administration officials are hoping to leverage a possible stalling of additional tariffs to get China to make commitments on intellectual property, said one of the people.

“We are looking for the Chinese to give us what we asked for in May,” the person said.

Meanwhile, Chinese officials have signaled that they are willing to negotiate after Trump’s blowup in July led to a massive escalation in the tariffs. The economic impact of the trade fight on China is not fully known, but economic indicators show that the country’s economy is being hurt.

“The idea is to pull the relationship away from where the president loses his temper and could really hurt them,” said the person, who was recently briefed by Chinese officials.

...

Mnuchin also indicated that the October meeting could be key to reaching an agreement, if positive signals coming out of Beijing are to be believed.

“We need to rebalance this relationship, and they acknowledge it,” Mnuchin said. "So, if China comes here with a proposal that makes sense, we will consider it. We will take it to the president. And again, I’m cautiously optimistic. I take the Chinese in good faith that they want to come here with a deal.”


edit on 12-9-2019 by RadioRobert because: (no reason given)



posted on Sep, 12 2019 @ 03:46 PM
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originally posted by: olaru12
trump blinked....

www.rawstory.com...


Raw Story?
Really?

Just as fake as your OP source...but, at least THIS article isn't from last month.







 
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