12/04/2018

Trump’s double talk - Soya beans turning into waste

Earlier I wrote about the Australia iron ore and other raw material that have turned into rubbish, unwanted waste, when they could not find any buyer. Yes, any product that has no buyer will become waste, as good as worthless. And this is exactly what is happening to many of American’s crops, particularly soya beans and other seed products. Even their poultry products, sea food, like pork and lobsters, have become worthless to a certain extent as China is not buying. China is buying from Canada and elsewhere.
 

The agriculture and dairy farmers have been boosting their production to meet the growing demands of such products and growing rich happily until Trump’s reckless trade war with China. China’s purchase of these products has dropped by as much as 90%. The American farmers are desperate and trying to channel their goods to other countries but there are just not enough buyers that could buy at the same volume as China. China imports 60% of American soya beans.
 

The result of this trade war is that all the agricultural products are now turning into waste. The farmers stored as many as they could. The warehousing business has boomed. All the warehouses are full and they are furiously building more warehouses to cater for the demand, including cold stores for the meat and dairy products. But the volume laying in waiting is just too voluminous for the industry.
 

What could the farmers do but to let their crops rot literally in the fields. There is no meaning to harvest them as they have no place to store them and no buyers to take them away. The farmers are having a holiday, not tending to their farms. The livestock too are having a holiday, with extended life, thanks to Trump.
 

On the other side of the equation China is turning to other suppliers for their needs. Russia is offering China thousands of acres of land to plant soya beans. Other farmers around the world are doing roaring business with China. When the new suppliers and supply chains are established and met the needs of China, China would cease to depend on American farmers for good. The American farmers can have a long, long holiday, and maybe have to switch profession. Their products in the warehouses would be just be waste products with no buyer. And they would have to pay for their storage until they give up. And they would have to pay for removing and burning them away as dirt. China has also stopped importing American oil and LNG.
The American farmers have Donald Trump and his hawkish advisors to thank for their bad advice and bad policies. This is the beginning of the decline of the American Empire when bad and stupid men and women turned up in the White House and take charge.
 

Now there is a truce in Buenos Aires after the G20 Meeting. Trump declared victory. The Chinese are going to buy a lot of produce from America. What cock is Trump shouting? China wants to buy a lot from the US, and has been buying US poultry and farm produces all the while. 60% of American soya beans would to go China if not because of Trump’s silly trade war. Now Trump is happy, China is buying again…but never the same volume as China would have committed to buy from other sources.
 

China would not only want to buy again and buy more. But what is there to buy from the US other than farm produce and Boeings? China has everything and producing everything cheaper than the US? The only few things China wants to buy, and with a lot or American dollars, are high tech products, land, properties, but the Americans refused to sell hiding behind national security concerns. How much soya beans and meat can China buy to offset the trade imbalance? China has no use of the hoards of American dollars if it cannot use them to buy American products.
 

So, who is the idiot that caused the trade imbalance and what has the truce achieved in Buenos Aires? Nothing but going back to square one at most. This is quite like the Korean truce with a stalemate at the 38 parallel with the Americans claiming victory after being defeated by the PLA volunteers and chased all the way from the Yalu River to the 38 parallel. So this truce is another American victory because China continues to buy soya beans and American produce when China was buying all the while? What would happen is that China would no longer buy the same amount, but lesser as China has already bought what it needed and also developed new suppliers and supply chains.
 

Who is the loser and claiming victory? Many farmers would continue to go bankrupt as a result.

28 comments:

Ⓜatilah $ingapura⚠️ said...

@ sacrifice for the cuntry!

Aiyah, dun cry too many tears for the subsidized US farm sector lah. Decades of subsidies kept many crops going...and putting farmers in poor cuntries out of business because they couldn't compete, contributing to starvation in those cuntries, and impacting their economies. Little mention of those facts, because people from "sithole cuntries" don't have a voice.

Anyway...surpluses and shortages get sorted out in the commodities markets lah. Dumb farmers who don't hedge...that's their problem.

I remember when lamb prices collapsed to the point Aussie farmers had to destroy stock because it was too expensive to feed and transport the meat. Before that happened, the consumer gained as prices plummeted to around just a few bucks per kilo.

Every government in the world will "sacrifice" something in the local economy to attain their political ends. Trump is no different from any other cunt in power.

You only have to look in your own backyard to find a govt willing to sacrifice a local attribute to attain their policy goals. The PAP won't hesitate to make you "take one for the team" if they think it is best for the cuntry. In the political realm the cuntry is more important than its people or their stake in the economy.

Go ahead, cite some examples... ;-)

virgo49 said...

President Xi first gesture to Dotard. No traffics on American Cars.

How many American Cars into China??

He must have the statistics from his Trade Department that's its a minusule figure.

This Dotard so arrogant that China had conceded to his demands.

Boasted to the World that he is winning the Trade War.

Like a child been conned by the craftiness of a Chinaman.

European and Japanese and Korean and even Matland cars are more popular than American rocket shape cars.

American cars in Sinkieland?

Ⓜatilah $ingapura⚠️ said...

@ who is winning?

Trump is clearly "winning" at the moment. That statement will piss off a lot of people... He has a "temporary" win because the shit hasn't hit the fan yet. Trump is playing with HOUSE MONEY...and that is a YUGE (temporary) advantage. Being the type of egotistical asshole he is, he will naturally claim "victory", what you you expect? Humility? What fucking universe are you living in lah?

With every "controversial" policy there are winners and losers. The farmers lose. The consumer wins. The logistics industry for storage wins. The building industry wins---since they need to build more storage.

A local example: when Singapore govt went "immigration crazy", property and rentals went thru the roof. Landlords won big time. Employers also benefitted from lower labour costs due to an over supply.
Local wage earner...FUCK Spider lah.

The more tension there is between China and the USA, the richer our resident "war stocks" guy becomes. He is clearly a winner in this fight. Fucking good for him!

Chua Chin Leng aka redbean said...

Without the China car market, GM, Ford and Chrysler would have gone bankrupt, history. Who would want to buy these cars when there are better and cheaper cars from the rest of the world?

Ⓜatilah $ingapura⚠️ said...

@ RB

The car business is the worst business in the world. Mahathir wants to make cars for export. Good. He can give Jho Low the job for financing lah, because no one is going to lend money for another economic cluster-fuck Ala Mahathir.

Anonymous said...

Now their winter, American farmers' next harvest is more than 3 months away.

So this 90-day truce is a desperate US attempt to clear existing stockpiles of soybeans in their store houses which going to rot.

Virgo49 said...

Right Anon 9.44

Agricultural crops are perisable and voluminious cargo.

Compared to just others merchandise.

Even Taiwan's agricultural products hurt by China's imposed imports that now Blue Party ruled most counties.

So must have also hurts the American farmers.

Dotard gonna lose BIG time in next Presidential Election.

Titiana Ann Xavier said...

Trump knew that his trade war with China had been an abject failure and he is looking for a face-saving way to end it. The Chinese leadership is a good deal more pragmatic than Trump. President Xi does not want to seriously damage Sino-US relationship and he is throwing Trump a few crumbs so that he can claim a hollow victory.

President Xi had also agreed to designate Fentanyl as a controlled substance. Uncle Sam needed China's help as its opioid crisis is raging like California's wildfire. It is grim reminder of The Opium War.

Anonymous said...

Because of electoral political pressure, Washington needs to hype its win in the trade war. Beijing doesn't have to compete for public opinion with US.

US may be strong, but it knows well the strength gap between US and China is not as large as that between US and other countries such as Singapore, South Korea, Canada and Japan. Dotard Trump cannot undermine China's core interests and needs to tread softly when maximizing US interests and trying to further suppress China.

White House statement issued on Saturday didn't mention 'Made in China 2025' plan, which US used to be vehemently opposed. Beijing has also avoided talking about the plan for a while. This shows the two countries are seeking possibility of compromise on highly sensitive issues.

The trade war has lasted over half a year, from which both China and US have learnt each other's will, line of core interests and comprehensive strength to resist pressure. Now the two sides have a common will to start a new round of serious negotiations in the next 90 days.

Anonymous said...

Trump is winning temporarily. But I think the farmers do not think so, with rotting crops and farm produce going nowhere. Of course he does not care, with two more years to 'win', he knows he may not be in office at the end of two more years.

In the long term, US farmers particularly, will in all probability, lose the China market and that is going to be even more of a national security issue than steel and aluminium, if farming, like manufacturing, contracts so much, or becomes so invisible, that they have to import basic food products from other countries. Would it come to that, I wonder? Japan realised this danger, that is why rice farmers are heavily subsidised.

US cannot produce cheaper products than other countries. So, US complains all the time about unfair subsidies that the Chinese Government gives to its manufacturing sector, like solar panels, wind turbines etc. But the US is doing the same with subsidies given to its farm sectors, then and even more so now. So it's the pot calling the kettle black.

If the US cannot produce cheaper things, people in other countries will not buy their products other than weapons and war planes, so how could they ever have a trade surplus or a deficit when they consume more than they can produce for export? And they blame other countries for their predicament!

The dilemma is that to produce cheaper products, US wages and cost have to go down, which is impossible given that most lower income Americans already have problems with their current wage levels. Now the steel workers are asking for pay rises with steel tariffs impacting steel imports and giving US steel manufacturers higher profits, but steel worker's wages did not go up proportionately. In the end, tariffs only helps the rich and of course Trump's cronies.

In the end, Trump, tired of so much winning, will leave the oval office, a far richer man than ever before. The country will have to pick up the pieces after his departure. The people cannot do a damn thing to him!

Ⓜatilah $ingapura⚠️ said...

@ 1137

>> In the end, Trump, tired of so much winning, will leave the oval office, a far richer man than ever before. <<

If he is impeached, or leaves office (Mike Pence is already eyeing the job), you can bet that within 1 or 2 years there will be new Trump projects in China, Russia and N Korea. Trump has the drive of a graffiti artist. A graffiti artist has to "tag" public and private property with their initials or unique sign. Trump is exactly the same: he has to put his name on things EVERYWHERE. Even if the thing fails or ownership changes, no problem...the name "Trump" is still there.

Titiana Ann Xavier said...

The agreement reached by President Trump and President Xi to pause their trade war and work towards a pact appears to be aimed at giving the two leaders some political breathing room after an escalating trade war has begun inflicting economic damage on both countries.
The temporary truce does little to resolve the deep differences between the two nations and is more a political agreement than a substantive one. Both sides are tempered by a sense that the fragile peace may not last. But the tough road to a more comprehensive trade deal could be seen in the disparity between the official statements released by Uncle Sam and China.

Uncle Sam emphasized the 90-day window it has set for trade talks, while China made no mention of it. The White House, which has accused China of “stealing” technology from American companies, said that Mr. Xi had agreed to negotiate immediately on forced technology transfer, intellectual property protection, non-tariff barriers and cyber theft. The statement from China said only that the two countries would work together to reach a consensus on trade issues but did not mention intellectual property.

Anonymous said...

Trump's personality can be summed up as highly egoistic, narcissistic, boastful to a fault, thick skinned, tax cheat, ignorant and above all a professional liar.

No one can beat that! That is why he wins all the time and every time, in his warped mind!

Ⓜatilah $ingapura⚠️ said...

https://www.youtube.com/watch?v=e-vmShN8OtA

Chua Chin Leng aka redbean said...

More than 80 farmers filed Chapter 12 for bankruptcy so far and more coming.

Ⓜatilah $ingapura⚠️ said...

@ bankrupt but still going

That's a smart move. Lucky they have such laws. I tell you the American farmer is a well-protected species! They can still keep going. Trump is smart, he will bail them out. 80 farmers out of thousands is a very small number. Even if more file Chap 12, still can bail out lah, become "Hero President", win hearts and minds. Politics, its a game!

https://www.nolo.com/legal-encyclopedia/chapter-12-bankruptcy-farmers-fishermen.html

Anonymous said...

US farmers have been selling their soya beans to S. America like Argentina & Brazil, but at lower profits than if they could sell to China.

But pork farmers still ok ---- China has been quietly buying US pork despite the extra 10%-25% tariffs becoz no choice --- severe shortage. Oz pork not enough LOL!

It's made worse by the outbreak of African swine flu in many Chinese pig farms.

Anyway, I still prefer war stocks lah! Have given me lots of $$$$$$ over the last 20 years. And over the next 20-40 years will still provide comfortable retirement $$$$$$ --- unless human race wiped out.

Anonymous said...

US now sells soya beans to Argentina and Brazil, cheaper than what Argentina and Brazil now sells to China. Argentina and Brazil are making lots of money buying and selling the same product.

Who is the biggest winner? It is not Trump and it is certainly not US farmers. Ironic isn't it?

Ⓜatilah $ingapura⚠️ said...
This comment has been removed by the author.
Ⓜatilah $ingapura⚠️ said...

OFF TOPIC

Aiyoh, see how this GOP Republican Congressional Representative "copies" the Singapore's PAP policy to encourage Indian graduates to work in the USA. The US deal is even more sweet: Green Card for the worker AND their families. Democrat? Oh no, Rep Yoder is a Republican. 🤣, which is why it'll cost MONEY to jump the Green Card queue! 💰💲

300,000 Indian workers and their families

PAP should start charging fees for immigrants lah. How come so slack? Usually they charge for anything they think they can "makan" revenue. Wake the fuck up, PAP! 😜 Keep those reserves topped up!!

Practice GP Short Qns Paraphrasing for Prospective GP Students said...

Anonymous December 04, 2018 11:37 am
//But I think the farmers do not think so, with rotting crops and farm produce going nowhere.//



Paraphrase (GP style):

"But the peasants hold other views, what with rotting grass and paper output having worthLESS ZERO market value?"

Anonymous said...

Oops ... GP cannot repeat words used ...

Replace "rotting" with

"DECAYING"

or

"DECOMPOSING"

GP Paraphrase Practices said...

@ Virgo49 December 03, 2018 7:38 pm
//They themselves are just too swell headed like the Present Lot of 4 or 5 G-string leaders who had blunders after blunders.//



Paraphrasing:

"These Seow Ting Tong chose as their decomposing fish head from 4th or even 5th stringERS with blemish past history of JiakLiaoBeeness and despite their monumental failures are perched atop the food chain to leech on the peasants like PARASITES SHAMELESSLEE?"

Anonymous said...

@Martilar,

///PAP should start charging fees for immigrants lah///

Coz they lost GRC in 2011.

We used to also have cash-for-PR policy .... USD1M in the 1990s and early-2000s .... raised to USD5M in the mid-2000s when too many crass nouveau riche Cheenas kept throwing their millions at us.

PAPies stopped this program in 2013 or 2014. Eduardo Saverin (of Facebook fame) was one of the last to make use of it when he moved his billions here to escape US taxes.

If PAPies win by more than 65% in GE2019, expect to see some form of this cash-for-PR policy start coming back.

It's gonna be harder for S'pore to earn money with de-globalization & supply-chain disruption --- PAPies gonna resort to this type of bad old schemes to get the $$$$$$ to continue maintaining the increasing bribes e.g. PG scheme, Merdeka scheme, more subsidies for oldies, CHAS for younger people, more social programs, lower barriers to be able to access social schemes, etc.

Bad old schemes will eventually include re-opening floodgates wider for more foreigners. And probably also going back to old rules to make it easier for foreigners to buy resale HDB & to rent out HDB. This will really jack up HDB resale prices, which will make 80% of Sinkies very very happy. And give them an opportunity to sell their aging HDB flats if they wish.

Chua Chin Leng aka redbean said...

Matilah, your brain mati oredy or what?

Don't you know that a Singapore citizenship to these immigrants is like striking lottery?

They can immediately buy a HDB flat and sell it after 5 years and make a profit of a few hundred thousand Sing dollars. Convert this to rupees, rupiahs, RMB or any SE Asian currencies, these immigrants could return home very rich.

Only Silly Singaporeans cannot see this free lottery scam that is sure to strike and keep offering free citizenship to the hungry hordes. On top of this, cheaper education, cheaper medical etc etc. chiat buay leow. Only idiots allowed this to go on and on at the expense of Singaporeans.

Anonymous said...

@ Ⓜatilah $ingapura⚠️December 03, 2018 //Anyway, one day hopefully you'll be a senior too. The key is to wake up every day and keep breathing. �� One day there won't be any more breathing, and no waking up. As long as you can sustain those 2 simple prerequisites, you will eventually qualify as a senior.//




Paraphrasing:

"Unless YEW die an early via a road accident or during national slavery or some cancerous onset, YEW will grow old and in turn becum lao ah pek, lao tai po (aka ah hm)? But in case YEW permanently asleep and then trf from bed to quah cha, YEW will never have chance like bef?"

Virgo49 said...

Off Topic

Loong Loon Sued Leong Sze Han.

Clamped down Social Media and dissents before 2019.

Mathatair conferred Top Houours Sinkieland and now acted as Boeyman as favour to Loony Loon striking fears in Sinkies that in 2019 will be 90%.

These Boeymen ways been used during the last few elections of Matland and Sinkieland as bad relations to stir fears especially Sinkieland who are easily intimidated to believe them.

As for the Mats, it stirred their Malay Complex and Nationalism.



Ⓜatilah $ingapura⚠️ said...

@ 941 & RB 1042

I dun believe the population is blind. I think they choose to be selectively blind and deaf when it comes to voting, then later complain like fuck, until the next GE, where they'll do exactly the same thing again.

It is clear the PAP bribes whichever group they want favours from. It'll bribe the locals with "social programs" and foreigners with "winning lotteries", or "tax haven" for the rich like Eduardo, who apparently owes the US a lot in back taxes. (The US has an exit tax if you plan to renounce citizenship and fuck off. In Singapore, we give you ALL your CPF. Oh, the irony!)

Global supply chain disruption will be given a nice steroid injection once the OBOR starts operation. Singapore's relevance is going take a hit. How big, no one knows because luckily we are strategically located for global trade, and investment. But yeah, some jobs will disappear Forever and competition in labour markets will be FIERCE.

Given the culture of "strawberries" amongst our "have a jolly good time" millenials who've never experienced HARDSHIP, I think Singapore's societal future will be very interesting.

By that time, the older PAP won't have power, many would have died. The millenials will be RAIDING THE RESERVES, I am willing to bet on that outcome even though I may be long gone when it happens.

Temasek has been in existence since 1974; the GIC since 1981. Who is to say our "clever" govt won't "suddenly" create yet-another-sovereign-wealth-fund? What is to stop them? Your 1 vote? :-))

Nearly 40-50 years of sovereign wealth fund. Yo tell me only got 600 billion ah?

I'm calling BULLSHIT lah. Some of those reserves need to come out and help the oldies who really need assistance. Fuck the bloody government lah.

P. S. I am still a hard, 100% self-interested capitalist. Humans are capital assets too!