Thursday, May 9, 2019

The United States raises tariffs on Chinese imports

This is huge.

Once the US/China treaty was submitted to the Chinese politburo they balked at US holding enforcement control and returned the 150 page treaty heavily redacted to remove key terms required for US agreement.

Lighthizer said, "Suck my hard treaty provision."

China had N.Korea shoot off three missiles. As they do.

The United States raised tariffs on billions of dollars of Chinese goods, from 10% to 25%.

Now China will respond by cancelling agreements to import American agriculture.

These last two things really mess up the arrangement of multinational corporations who have toiled so diligently for so long to veritably erase supply / demand from global economic superstructure.

Supply / demand the essential tenet of economic comprehension is just so last century.

And now that Trump has created this dispute with China in an effort to attain a balance of trade between countries, the two largest economies in the world, a very real and profound effort at achieving fair trade, an actual economic war with the aim of zero tariffs both ways, that superstructure is trashed and we're right back to Old World supply / demand.

America will experience a surplus of agricultural production, for consumers the price will go down, but farmers will suffer from lower prices and Wall Street will be disrupted.

Wall Street wins coming or going. Wall Street wins when America fails. Wall Street wins with fair or unfair trade between nations. Wall Street wins through disruption on Wall Street and Wall Street wins when trade runs smoothly. And you can too. By embracing the suck.

Let's be of good cheer and draw a cartoon in our minds.

Chairman Xi Jinping and President Trump strangling each other with both declaring their enduring mutual friendship.

4 comments:

edutcher said...

Don't count on status quo ante bellum. The Reds can't feed their people, but we are the only ones who can.

PS Tenet, not tenant.

Amartel said...

I send birthday card
I ate rice one time.

Chip, you are a card!

ricpic said...

Trump doesn't believe in giving away the store. Revolutionary!

Chip Ahoy said...

Tenant changed to tenet. Thank you for the correction.