7/12/2018

Trade wars and trade imbalance - Another white man's lie

Daily the Americans have been crying out loud that they are suffering huge trade deficits in their trades with China and the rest of the world. And they conveniently blame China and the rest of the world for the huge trade deficits against their favours. Is this true or the real thing or another big white lie.

Take the case of US China trade imbalance for example. One of the biggest factor contributing to the trade imbalance is that the Americans want to buy all the cheap products Made in China but refused to sell to China what the Chinese want to buy, ie high value and high tech goods on the ground of security. Sticking to this American farce and make belief, what else can the Americans sell to China when everything the average or working class Chinese need could be made and produced in China? This only left with a few food items that the Chinese could not produce themselves or produced not enough ie soya beans, meat and wine. There is nothing else that the Americans can sell to China other than airplanes.  China wants to buy of lot of equipment and machinery from the Americans, but the Americans refused to sell. The main reason for trade is to create value and make profits from the exchange. There is no point for China to acquire all the US dollars if they don't use it to buy things from the Americans, converting them to value for its people. See the white lies in this argument?

Relating to the above, the Americans are all the time putting barriers to prevent China from spending their US dollars in the US. China has been prevented from buying many properties and assets and companies which would lead to a healthier trade balance for the Americans. It is the Americans that are refusing to let the Chinese buy or use their US dollars in America to benefit America.

Another major factor is that the Americans did not have to work to have money to buy and buy and buy. They just print money to exchange for goods. Thus there is no incentive for the Americans to want to sell things of value to the rest of the world, especially to China. It could be one of their cunning strategies, let the Chinese accumulate all the American dollars and made the American dollars useless, valueless in a way when the Chinese could not use them to buy American goods.

The fictitious trade imbalance which the Americans refused to admit is that many of the goods and products sold to America were actually sold by American companies operating in China. As the goods were made in China and exported from China, they become exports from China and registered as trade gains to China. An Apple iphone selling for a thousand US dollars would create less than US$10 to a Chinese worker. The bulk of the profits goes to Apple Inc owned by the Americans.

The white men are living with their white lies and using white lies to start another war, a trade war. The irony of this trade war is that ultimately the losers would be the average working class Americans. This is a war that the Americans could win on paper but end up as losers.

What would happen after the trade war?

China would lose the American market. It's products would have great difficulties selling in the USA.
Likewise the Americans would lose the Chinese market. American produces would not sell in China. America would also lose their manufacturing base in China. American companies would no longer make their products in China.

Can China live and continue to prosper without the 300m American market?
Can the American companies survive without the 1.4b Chinese market?
Can the American companies sell its products, NOT  made in China, that would be affordable to the rest of the world?

You make your own conclusion.

20 comments:

Anonymous said...

The US has triggered the trade dispute with China ostensibly to strike a balance in bilateral trade, but the real reason is to use a trade war to contain China's economic and technological development. It sees China's development as an attempt to grab global dominance from the US.

The success of the "Chinese model", which offers other developing countries an option different from the "American model" for economic development and turn them away from the US-brand of "democracy" has alarmed the US.

Virgo49 said...

The Americunts including their kind -the Whites had it good for the last century or so living lavishly on the Loots of Others.

Became 250 pounder like land whales and now find even difficult to move their arses WITHOUT help blamed One And Sundry for their woes.

They been living like Princes and in reality they are Paupers enjoying themselves extensively on others.

Now,they found that they are unable to compete start having all sorts of trivial accusations against the others.

The turn of tide that now will be their turn to live in poverty like the Asians been living the past century.

Karma had them wrangling and killing their own kind.

This is just the beginning and much more to come for their destruction.

Those bananas who worshipped them can also join them in their decadence lives.

Titiana Ann Xavier said...

The world is plunging into a massive trade war. Uncle Sam will be exponentially more isolated as China, Germany and Canada are fighting back. Trump is throwing all the soybean farmers under the bus because some big business lobby (possibly Jewish) in Washington is whining about China's term of doing business. President Xi is not backing down. He has secured the high ground in favour of free trade. Meanwhile, Uncle Sam is running short of cash. NATO countries are forced by Trump to pay more for defence.

Anonymous said...

The white warmongers must always have wars. They will find all kinds of excuses to start a war, any kind of wars.

Who is the fucker that said white men are peace loving animals?

Anonymous said...

Let the money talk...

Since trade war started:

China: http://schrts.co/B7HpBn

US: http://schrts.co/sysJ8r

Adam Of Eve said...

The US's Balance of Trade has always been in the red by deliberately generating debts. They believe in creating debts instead of creating wealth. (Singapore follows the same model). By creating debts, which is the easiest way, only benefits a few top people and the government, and enslave the citizens (as they have to pay and pay by monthly instalments all their bills and their DEBTS

As a result of suxh approach, the citizens buy and buy, spend and spend, on borrowed money. Therefore, the US import and import. When you import more than you export, you are bound to have a trade deficit.

But the US trade imbalance, as projected by Trump, does not tell the full picture. While China exports more to the US in terms of goods, China makes use of US's services more.

Another factor about the US trade deficit figures' inaccuracy is that they hide the amount of money they made from sales of weapons, as it is always classified as Secret or Top Secret.

Last but not least, the US's massive expenditure in conducting wars and regime changes, and maintenance of her more than 1000 military bases and troops deployed overseas all over the world (getting double pays). These expenditures contributed massively to their overall national debts and deficits.

So, this Trade War launched by Pussy-Grabing Dotard Trump is not about China's unfair trade. It is used as an excuse to suppress China from rising up in all fields of human endeavors, to challenge the US leadership and to dominate the world as the best leadership (not necessarily as the top superpower).

jjgg said...

Trade deficits have always gone to benefit the businesses at the expense of the consumers.. most of the profits from dow Jones companies come from chinese logistics one way or the other. NATO spending by n large have gone to feed American troops n American arms manufacturers.. so the Europeans can spend more but they so stupid to spend it all on the Americans? Dow is poised for its largest wreckage in history..get out!!!

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Titiana Ann Xavier said...

Chinese media have unleashed a news "blitzkrieg" slamming Trump's government behaving like a gang of hoodlums. The next move in the escalating trade war between Uncle Sam and China involved oil from Iran which has come under sanction by Trump. China has threatened to impose 25% duty on oil imports worth $1 billion from Uncle Sam. Chinese importers as well as those from India and Turkey are switching to Iranian oil. They are defying Trump's demands that all Uncle Sam's allies are to shut Iran out of oil markets. Trump's trade war with China could be a doomsday gamble and leads to MAD.

Anonymous said...

This scenario is exactly a repeat of old Chinese history. The Western countries wanted silk and porcelain from the Chinese then, and wanted to sell things to them in exchange, which the Chinese do not want.

Where they could not trade with the Chinese, they resort to using force or gunboat diplomacy to force the Chinese to open up their doors to the opium trade. Perhaps it is fate that China did not end up being 'discovered' by the Europeans, like America and Australia. Or else the Chinese would now be living in reservations like the Red Indians and Aborigines of Australia.

Trump looks bent on collapsing the world economy with his actions, perhaps doing the bidding of the elites. If the global economy collapses, the biggest beneficiary would be the 1% elites who control 99% of global wealth, with Trump and family included. Everything of monetary value, stocks, properties and personal assets, will all be under fire sale or suicide sale, and these elites will be mopping them up with glee. The losers will be the rest of the 99% whose wealth will all end up with the elites during the collapse, and the winners will again be the elites, when the world economy reboots, again under the hand of the elites. it is a cycle that has been repeating itself and, as always, benefiting the very top of the food chain.

A nuclear war is not to their advantage, because the elites know that they themselves may not survive. And if 99% of the world population gets wiped out in a nuclear world war, what advantage can all the wealth in the world do in the hands of the few that managed to survive? They still need the slaves, who will probably all be dead, to do all the hard work of agriculture, manufacturing and fighting yet more wars.



Anonymous said...

Trump playing his art of the deal lah.

If total global trade war, US will suffer but China will be devastated & very high risk of mass uprising.

Everyone knows this. Therefore there will be secret negotiations behind the scenes.

Latest indication is that China & US are starting to talk again, and India is mass importing oil from US like crazy.

PS: If prolonged trade war, Asia will suffer another financial crisis like 1997-1998. Govts & politicians know this too but are putting up a brave front to citizens.

Anonymous said...

The trade war is perhaps a blessing in disguise for China. China is
moving to open up its markets to the rest of the world, including the EU, and the Germans are already ready to step up trade. More trade with the rest of the world may mitigate the effect of the US trade war. At the same time the US continues to antagonise allies and erect trade barriers with them to China's advantage.

With the launch of PetroYuan in trade with Russia and some others, the One Belt One Road initiative and all the infrastructure developments in South America, Africa and South Asia, it is a worry for the US that they will become less important to the rest of the world. Hence the paranoia of the US and their fear of China rising too fast and must be stopped. Using trade was thought to be the answer.

Lao Tze said...

The US' economy is heading towards a full collapse. After years of propping up by the last four US presidents, it can no longer sustain. This is the reason why such an unscrupulous bastard like that Trump, who has low morality, no ethical values and abide by no laws, has been elected to where he is now.

A significantly large section of Christianx believe that Trump is the Anti-Christ. That means he has come to rule the world through the creation of chaos and havocs, through coercion, intimidation and destruction.

For those who are investng in the US stocks, don't be too quick to conclude that it is climbing. It is time to let go because the big fishes are not buying. They have already off-loaded and are switching to gold and silver. Yhey envisaged that the US stock market is going to collapse soon. Very soon. Followed by the collapse of the US Dollar as the medium of foreign exchange.

Russia, China, India and Iran, and some EU countries like France and Germany, are buyung and stocking gold.

The filthy rich like the Koch Brothers, the Rockefellers and the Rothschilds are also buying up gold and silver.

Why? There must be a good reason, isn't it? When was the last time people were buying up gold?

Virgo49 said...

Righto Anon 7.25 & Lao Tse.

They are putting up a BRAVE Front and knew disasters soon like the 1997-1998.

Why the Sudden ASD imposed on the purchase of Private Properties???

REAL daft Sinkies still do not catch the objective.

Many, not say I see them No Up truely cannot afford to service the mortgage and just jump at the bandwagon.

If they can afford, no need to rush down b4 the Law comes into effect.

If another 97-98 strikes Sinking Land, Cannot imagine the outcome.

That's why LowLan Wong is afraid of the Scenario.

Anyway, GOOD luck to the Private Properties investors and owners.

Anonymous said...

Trump administration is bend on stopping China rise to superpower status. Xi fired his 2025 vision too early.
China may soon go into a major painful recession or slow growth period.
Chinese related shares have declined a lot more than US shares since the trade war conflicts started. US for time being is winning.
China is not explaining the record trade surplus with the US well unlike RB..eg US MNCs from China are exporting huge amounts to USA, which are disguised as trade surplus for China.

Adam Of Eve said...
This comment has been removed by the author.
Adam Of Eve said...

Chinese stock markets are declining not because of the Trade War.

It is because of the silent, subtle devaluation of the Yuan. This is the silent counter-measure to off-set the US terroriffs (terrorist tariffs).

By lowering the Yuan, exports to US become cheaper. So, the 25% extra terroriffs will not be so painful to US importers.

At the same time, China's exports to the other parts if the World also become cheaoer. Therefore, importing Chinese products by other countries can also be expected to increase.

In the long run, China's stock markets would rise. It is now time to sell US stocks and buy Chinese stocks.

Buy low, sell high.

Don't follow Temasek CEO's strategy of buying high and selling low. She can afford to throw away good money for bad investments. You cannot.

Temasek CEO is using Other People's Money. You are using your Own Hard-Earned Money.

Her money - easy come, therefore also easy go.

Your money - difficult to come, therefore must never let go!

They barked at the wrong tree regarding the US Presidential Elections not once but twice. First was Obama. Then it was Trump. In 2008, they did not expect Obama to win. Again in 2016, they failed to see it coming. They bet on the Hillary Mare instead of the Trump Horse. As a result, they have to try very hard to recover their diplomatic relations with the US President.

Power leads to arrogance.
Arrogance leads to carelessness.
Carelessness leads to stupidity.
Stupidity has no cure.
It leads to downfall, hard, fast and furious.
It is only a matter of time.
Time is on the side of those who has patience and wisdom.
That's why Mother Nature never fails.

b said...

The commies are dangerous. They are trying to takeover the world by destroying democratic countries using refugees and fake news. Merkel and obama are good examples of commie infiltrator. Lucky whiteman Trump coming to the rescue. They did not overthrow the Qing or fought hard with the Japs, the commies stole china from chinese.

Anonymous said...

Wow commies so clever. White men so stupid and gullible. Clever commies must rule and deservedly so. Clever
commies eradicate poverty. Stupid white men make war.

Anonymous said...

White men never steal meh? When they steal they 'steal big time' from the Red Indians and Aborigines. Commies may steal from non commies, but at least China still belongs to the Chinese race.