Trump: Tariffs are stupid, let’s deal @EU

a reply to: TheRedneck

While again, I don't disagree with any of that, I think we need to be realistic. US workers get paid far and away more than Chinese workers. If all else was equal, a US produced product will always cost more than Chinese.

Therefore, you need to change your consumer mindset. People need to bite the bullet and pay more for your products, but that isn't going up happen, is it? It's easy to say you pay more to support local economy and business when you are on the internet, but when you are trying to make ends meet and presented with two products, one half the cost as the other, most consumers will buy cheap.

There is a very good reason the US economy has moved to a service based one and away from manufacturing. The only way you will ever compete again locally is to have your president take away your freedom to shop freely. He tells you that you must spend more for foreign products by tariffing them rather than leaving the market open and free.

a reply to: nightbringr

While again, I don't disagree with any of that, I think we need to be realistic. US workers get paid far and away more than Chinese workers. If all else was equal, a US produced product will always cost more than Chinese.

That dynamic is already changing.

There will be shipping costs from China that far exceed the shipping costs within the US; that will equalize some of the labor differential. If the Chinese tendency to ignore US intellectual property rights is doused, as Trump is demanding, that will also help to equalize prices. The quality will take care of the rest. If Americans have the resources to do so, they will move toward buying better quality, and the "Made in USA" still signifies that in people's minds to some degree. In addition, as time goes on, the labor rates in China will rise; that is simply the hallmark of an expanding economy.

China has us in one area: technology. That is simply a result of their global monopoly on rare earth metals. OK, China has a lock on electronics; so be it. We can compete in other areas. That's free and fair trade.

TheRedneck

'free trade' Will never be equally sided by two countries with differing laws. Want wage increase here in America well then you have to buy things made in America.

In order for a trade to be a profitable prospect for all parties involved, they must be equal in labor, wage, and regulatory laws. When we import more than we export there is a reason that occurs.

Our manufacturers cannot compete under the boot of our laws while competing against countries that give there companies free reign to pay and polute whatever they want to.

In addition, many foreign governments assign a value to their currency whereas the us dollar is valued by supply and demand and speculation of supply and demand and a plethora of factors occurring throughout the world.

In order for wage growth and health of the US economy these tariffs and better trade agreements must be made else wage growth will stagnate (as it has for several decades) because companies will buy elsewhere if it's more profitable.

in addition, foreign trade stifles innovation by main street America. It's shocking to see big companies gaming Congress and foreign laws while having the boots firmly placed on the neck of main street America.

What is fair about buying a widget from China for 2 dollars with free shipping and manufacturers here in the us cannot ever ship a widget for 2.00 much less ship it for that.

a reply to: Saiker

Excellent post. Fully agree.

a reply to: nightbringr

I wont lie, certain goods I will not settle for an inferior product just to save a few bucks.

Other things that are not as important to me (up to this point in life with my first kid almost here I expect the amount of stuff I will settle for is going to shrink) I will settle for the cheaper option.

=============

To the OP, I went looking for a pair of Wrangler jeans in Europe eventually found them on sale for 95 euro, those same jeans in the US will run 30 bucks + or - a couple depending on what part of the US you are in.


Or when my US spec car needed work done, the dealership pointed me to Rock Auto online so I could order the parts and they would use the parts, otherwise I would get raped on the cost (their words).


So as asked earlier, why is it ok to hammer US goods in Europe, but the root of all evil if the US tries to level the playing field?

a reply to: ManFromEurope

He's meeting Jean-Claude Juncker ... good luck with that.

Trump likes to come off the top rope and then deal...its called bargaining chip. Huge tariffs could effect us a good deal, BUT they will also affect the other countries a good deal too. Trump is dealing with life long politicians that see themselves as head fryer at BK if they screw this up, Trump on the other hand will go back to being Trump no matter what happens.

They will come to the table and deal, and that deal will be better for the US than if Trump just did it all without the risk of big tariffs.

a reply to: Saiker

whereas the us dollar is valued by supply and demand

true - but and this is the big BUT explained countless times on these threads - if world Oil purchases was not traded in US dollars - there would be no USA - just another 3rd world basket case.

In other words the rest of the world has to buy your dollars to trade in oil, thereby the US exports its inflation.

Now tell me again who has been getting a free ride.

And to the point: with such a free ride for so long, the US has squandered opportunities.

Tell me how many of your 300 million people have seen that wealth?



www.quora.com...

The volume of business transactions in crude oil trade is not something minimal, it's massive. As crude is denominated in terms of US$, most of these transactions are settled in US$ giving US$ an undue advantage and make US$ very important and powerful. US$ is de facto the reserve currency of the world.

One of the major reasons that supports its reserve currency status is this. But, what is truly backing US$? What are its fundamentals? It's not unknown to the people on this planet that the US$ bills are printed on thin air. The external debt of US was $17.5 Trillion per wiki facts dated Dec 31, 2015 i.e. $58,255 per capita.

The unofficial estimate crosses $66 trillions. Barack Obama himself in his tenure crossed the external debt that his 10 predecessors could create. That's a record. In simpler terms, you are tossing a bill outside the borders and buying products and services for that paper (the paper may be even worth more than its quoted price, for real). What will happen is a big question but not so difficult to answer.

We've seen Saddam Hussein's fate who wanted to settle his crude bills in EUR or Gold. The military might of US is not unknown to anybody. Now, it's anybody's easy guess.

a reply to: TheConstruKctionofLight

Floating Exchange rates should take care of most of this advantage you speak of, if the system is working properly. Some nations rig the system, but overall the exchange rate determines the value of the dollar.

All money is fiat currency. This is not unique to the dollar. Our dollar is worth less because we have to print so much. If the system is so great for the US why are other currencies valued higher than the dollar?

It is beginning to look as though this winter will be pretty tight on Americans.

Higher prices of foreign goods and a severe lack of american goods due to extensive drought.

We need to get a grip on this before the harvest.

The thought of having to eat our own foods that may be nonexistant in the coming months.

Hey the price of beef will likely be low so we can go out eating steak.

a reply to: Isurrender73

All money is fiat currency. This is not unique to the dollar.

I think his point is that the US dollar is not truly fiat, In one sense it is backed by oil, because of the oil-dollar peg. Well, was... that is being undercut by Russia/Iran/Syria.

But that's a whole different thread... or forum... maybe a whole new website to hold all that information.

TheRedneck

originally posted by: Isurrender73
a reply to: TheConstruKctionofLight

Floating Exchange rates should take care of most of this advantage you speak of, if the system is working properly. Some nations rig the system, but overall the exchange rate determines the value of the dollar.

All money is fiat currency. This is not unique to the dollar. Our dollar is worth less because we have to print so much. If the system is so great for the US why are other currencies valued higher than the dollar?

You have to print so much..........

If your dollar wasn't the current Petrodollar, the amount of money you print would cause massive inflation. But since so much money is held by almost every single country in the world in order to trade for oil on the world market, you have the single biggest financial advantage of any country in the world.

You should be extremely grateful for your current petrodollar status. While I do think it would be a good idea to start to move away from it, it allows you advantages no other country can claim.

If a movement began to change the petrodollar to say, the euro, yen or such, your economy would collapse under its suddenly much more massive burden as inflation skyrockets and foreign holdings of the greenback are dumped. You are lucky that the world realizes this would be bad for us all and allows you to keep your advantage.

a reply to: nightbringr

You are lucky that the world realizes this would be bad for us all and allows you to keep your advantage.

Is it your opinion that this is part of the reason we have been able to maintain the Petrodollar status as long as we have?

TheRedneck

originally posted by: TheRedneck
a reply to: nightbringr

You are lucky that the world realizes this would be bad for us all and allows you to keep your advantage.

Is it your opinion that this is part of the reason we have been able to maintain the Petrodollar status as long as we have?

TheRedneck

That and Saudi/OPEC collusion. The Saudis use their status as the world's main oil producer to leverage the rest of OPEC and demand the greenback. The US promises to defend the Saudis for their assistance.

a reply to: nightbringr

You are correct. But that has to do with a 20 trillion dollar deficit. A burden that was placed on the US by globalist policies.

If the US had been run as a financialy stable system with manageable debt switching reserve currencies would have little effect on the US.

Exchange rates would fix any short term blips.

But with 20 Trillion in debt a change in reserve currencies would mean many that hold our debt would want their money and not merely rely on the interest payments that they currently enjoy.

Might want to take a look at this thread...

www.abovetopsecret.com...

Winning!!!!

a reply to: Isurrender73


Oh, preaching to the choir, my friend.

In Canada I belong to a lobby group that among other things, petitions the government to not run deficit budgets during times of financial growth.

However, your current POTUS is still deficit spending.................

a reply to: nightbringr

I know about the Saudi connection, and it actually goes back well before OPEC. The relationship between the US and Saudi Arabia is the reason they became the defacto head of OPEC, not vice versa.

Thanks for the response. I hadn't considered that other countries might be willing to allow the dollar peg because of the global economic damage abandoning it would do. But is sorta makes sense.

TheRedneck

originally posted by: nightbringr
a reply to: Isurrender73


Oh, preaching to the choir, my friend.

In Canada I belong to a lobby group that among other things, petitions the government to not run deficit budgets during times of financial growth.

However, your current POTUS is still deficit spending.................

Yes he is. But interest on 20 trillion makes it hard. I don't really have the answer. Exept to tell the bankers to shove it. The world is at least 250 Trillion in debt to bankers who loan out electric currency they don't actually posses. I think a debt jubilee is in order for the whole planet as only an act of God can change this messed up financial system.

I think that's why the globalist puppets put us into such a debt burden to begin with. I believe there was a design in place to collapse the US and sell it to the highest bidder. I can not fathom any other reason for allowing such insane amount of debt to be placed on the US citizens.

originally posted by: Isurrender73

originally posted by: nightbringr
a reply to: Isurrender73


Oh, preaching to the choir, my friend.

In Canada I belong to a lobby group that among other things, petitions the government to not run deficit budgets during times of financial growth.

However, your current POTUS is still deficit spending.................

Yes he is. But interest on 20 trillion makes it hard. I don't really have the answer. Exept to tell the bankers to shove it. The world is at least 250 Trillion in debt to bankers who loan out electric currency they don't actually posses. I think a debt jubilee is in order for the whole planet as only an act of God can change this messed up financial system.

I think that's why the globalist puppets put us into such a debt burden to begin with. I believe there was a design in place to collapse the US and sell it to the highest bidder. I can not fathom any other reason for allowing such insane amount of debt to be placed on the US citizens.

I see it differently. Both Republican and Democrats spend in the red. Perhaps they are both globalist stooges? If so, why do so many Americans proudly align with one side or another? I understand that with a two party system you are in a pinch, but rarely ever do I see an American declare themselves 'moderate' or having political leanings outside of your two party system.

And if Donald is so different, and NOT a globalist stooge, why is he continuing the trend of massive spending? Do you think it is unpreventable now? If so, I would suggest a collapse isn't a possibility, it's a certainty.

And at the end of the day, no one forced anyone to borrow. I hate the bankers too, but let's be honest with ourselves. Had our politicians not spent us to hell and back while we sat there letting it happen, we wouldn't be in this mess. Financial responsibility.