8/26/2019

US China Trade War entering new phase - the best outcome

WASHINGTON (AP) — President Donald Trump declared Friday that he had "hereby ordered" American companies with operations in China "to immediately start looking for" an alternative after Beijing announced a series of retaliatory tariffs....

The U.S. has said it plans to impose 10% tariffs on $300 billion of Chinese goods in two steps, on Sept. 1 and Dec. 15. China responded Friday with new tariffs on $75 billion of U.S. products in retaliation, deepening a conflict over trade and technology that threatens to tip a weakening global economy into recession.

China also will increase import duties on U.S.-made autos and auto parts, the Finance Ministry announced. Tariffs of 10% and 5% will take effect on two batches of goods on Sept. 1 and Dec. 15, the ministry said in a statement. It gave no details of what goods would be affected but the timing matches Trump's planned duty hikes....Yahoo News

The US China Trade War has a lot of similarities to the Korean War, aka the Anti American Imperialism War to the Chinese. In that war, the US under the command of Gen MacArthur, a personality not much different from Trump, entered the war with the full might of the American military power. The overwhelming imbalance in the forces of the two adversaries was stark and the North Koreans could only retreat. MacArthur marched towards the Yalu River in triump, beaming like an invincible war hero. Then China entered the theatre and struck back. The rest is history.

Trump started this war with China with guns blazing, shooting everything sight. For the initial phase of this war he appeared to be winning and China was being pushed back like the North Koreans. The war has reached a similar stage as the American forces at the Yalu River. China is digging and and fighting back. China is going to take the initiative and turn the table.

Are the Americans going to win or flee? Trump has ordered a withdrawal of all American companies in China, back to America just like MacArthur did when he was swarm by the Chinese Volunteer Armies. How would this turn out? Can American companies afford to retreat to the homeland, across the Pacific Ocean? What would happen to Ford and GM when they lose the biggest car market in the world and returned to a saturated home market that have grown sick of them and facing the onslaught of Japanese, Korean and European cars? Ford and GM's lives were extended and saved because of the move to China. Without the Chinese market these two American dinosaurs would have their lives ended in double quick time. So would many other American companies with operations in China, the electronics, computers and mobile phone and other high tech companies.

The outcome, Trump would raise its tariffs wall higher and banned all Japanese, Korean and European imports and the world would hit a recession that Trump has been working on for so long. Go ahead Trump, don't stop at 15%, go the max, 30% and what happens?

If the American economy is doing so well, Trump would not be so desperate to want to cut interest rate even to zero. Trump is so desperate that he even blamed Fed Chairman Jerome Powell as the enemy of the US, worse than Xi. Despite all his fake tweets of how well the American economy is doing, the truth is the opposite. More than 938 American farmers have gone bankrupt and more coming, and more farmers committing suicide because of Trump's reckless and unthinking policies promoted by the war hawks.

Trump will fail very badly. But the war hawks and their war industries would get a boost when the world goes into turmoil, rising tension and more wars. Well done Trump, this is the best outcome you can achieve in your presidency.

Thank you very much and bye bye the American Empire. Remember the Korean War?

22 comments:

Virgo 49 said...

Dotard Trump is now trying to save some of his Water Face in G7.

Wayang and already parkat with his White Cronies like Young Upstart and Empty Vessel Macron to step down the Trade War with Xi.

He will said that he be giving China's Face on the Beggings and Advice from the Other World's Leaders.

He has already taken a bite of the bitter fruit as dished out by China.

He just wants to siak tai without losing much Face.

Soonest, he be given way.

Anonymous said...

Hahaha...

This world is indeed getting very very very very very interesting!

All the best to all!?!

imho said...

Actually Trump no need to do trade war, just need to ban offshoring of jobs and imports of finished goods. It will make sure enough jobs for americans. Unfortunately he wanted to blame china instead of globalists. Maybe he will wake up next week.

Ⓜatilah $ingapura⚠️ said...

25th Amendment to the US Constitution. President? Going, going, GONE!

Akan datang. Slowly, more Republicans are turning "anti-Trump".

Enter stage-left: Anthony Scaramucchi, lawyer, kena fired by Trump after 11 days. He’s also a New York Italian (cannot lose face type), and successful hedge fund guy whose fund is a “hedge fund of hedge funds” i.e. he supplies capital to hedge funds.

As a lawyer he is focusing on the 25th Amendment. Also he has a personal beef with Trump: Trump did a nasty tweet (typical) insulting Scaramucci and his (very hot) wife. As a red-blooded NY Italian, that’s no-go, Trump crossed a line he should not have.

So yah, Trump is exhibiting crazy behaviour. If they can convince a court that he is unfit to be President, he’ll be gone! And he won’t go quietly. His Tweets will get nastier and nastier. Even his successor Mike Pence will kena.

This is my prediction. I hope I’m right, cos I love Political Combat 😭🤣

Anonymous said...

@All,

BRING IT ON!!!

My $450+K war chest waiting!! LOL!!!

I love this type of geopolitical economic dislocations because it's not cyclical or even secular, and is among the best times to make big $$$$$$$$$$$$$$$$$$$$$ over the long term.

All you need is patience ... which is a damn easy advantage today when you look at 99% of people LOL!!!

Anonymous said...

I live in California Americun. Anytime any day you see more foreign's cars on the roads than Americun’s cun. There are more trucks and SUV on the roads. Back in 2018 predicted to me frens within 4-5 years more than likely GM will either cease to exist or bought over by a foreign company. Ford and GM lifelines depend on China.

JC

Anonymous said...

Trump talk only, but never consider his actions and it's effects until he is sober. Then all the lying, twisting, conjuring and blaming will come out of his CB mouth.

Never in the history of the world has a leader been subjected to so much ridicule and the butt of jokes on social media. The office of the POTUS has been degraded so much in the eyes of the world. Why are the Americans not feeling shame?

Now even other G7 leaders find it difficult to recognise the US as the de facto leader of the group. They made decisions, like inviting the Iranian leader, without Trump even knowing it. And the joke posted by someone was that at the G7 meeting they gave Trump 'his happy meal and asked him to sit at the kid's table'.

China is set on the long trade war and will not back down. Xi has all the time in the world. Trump has until next November, and if he get re-elected, someone commented that the G7 will become G3 comprising US, Russia and North Korea.

Anyway, as Galloway commented - the G7 is a meeting of lame ducks without Russia and China. Merkel is no more leader of EU. Meanwhile the Italian leader just sent in his resignation. Britain just elected another clown running the show and France is still grappling with the Yellow Vest protest with 11 deaths so far and thousand arrested. Yet, no news on that, no condemnation whatsoever, and all the time the MSM focusing on Hong Kong, day in and day out.

Talking about Hong Kong, all the main agitators have already jumped ship, leaving the young Hongkies in the lurch and about to face the music. On YouTube, one angry middle-aged Hong Kong resident seeing a young man holding the US flag was so angry that he shouted at him and said - 'Why are you holding the US flag. Pathetic. You are a disgrace to Hong Kong'. I think that with the holding of the US flag, you can conclude why China said that the CIA is behind the protest.

Another thing, it has just been reported that Google had deleted hundreds of online postings pledging support for the Hong Kong Government and Police, that are deemed detrimental to the protestors. How can that be? Did they not say democracy means freedom of speech?

Anyway, what comes next is that Trump is going to blame the other G7 members if a recession sets in. He already indicated this by asking other G7 members to help improve the world economic landscape. Now why would he do that if conditions in the US are the best in it's history, from jobs to the stock market. Why would he be taking to task the Fed chair for not cutting interest rate fast enough, if the economy is really the greatest in US history?

Anonymous said...

Trump should hang on for another term. That will bigly Make Americunts Great Again. Great in what?

Great in:

1. Pussy-Grabbing.
2. Racism.
3. More mass shootings.
4. More job losses.
5. Unsurpassed Recession.
6. More trade deficits.
7. More national debts.
8. More antagonists countries.
9. More enemies.
10. More military mishaps and misadventures.

Anonymous said...

龙哥,

您是社交媒体的大哥大。

您的EngKok谋TuckTeng, 超棒!

您的红豆汤是极品!

Yum Yum.

Sedap!

越喝越上瘾。

可以再来几碗吗?

Anonymous said...

Trump's latest move against China is to label President Xi Jinping as "ENEMY", no more his "good friend". The he imposed higher tariffs on Chinese exports to the US. The immediate global reactions:

Stock markets plunged.
USD dropped.
JPY dropped.
Yuan plunged.
Gold surged.


Then came China's Vice Premier Liu. He told the world that China has enough macro-economic policy tools to ensure sound economic fundamentals.

Suddenly, market reactions:

Yuan spiked.
USD and JPY rose.
US Equity Futures surged.
Gold slides.

What do all these tell you?
Who is controlling the market now?

Anonymous said...

@All,

Hahaha cheena's cowed response has investors hoping 30% tariffs won't happen.

KNN like that my $450+K warchest will continue collecting dust.

My biz sources in cheena say already 25%-33% of low value cheena factories (e.g. clothing & shoes) are shut down, and workers on no-pay leave. Only minority of higher value workers in 1st tier cities won't be affected.

Just like US, those older or less educated in countryside or smaller towns and 2nd-4th tier cities will be hit hard by trade war.

Cheebye I think those want to buy property also hoping for full fledged trade war. Imagine SG going back to SARS level recession & can buy D9 2-bedroom condo for less than $600k.

Anonymous said...

I bought an old corner terrace at Hythe Road, Serangoon Gardens, for only $28k in 1973, freehold. I sold it for $385k in 1981, without renovation.

And I bought a brand new condominium at Paya Lebar for $275k in 1981, 999 years lease. I sold it "enbloc" for $1.5 million in 1995.

And I also bought a semi-D in Begonia area, upper Yio Chu Kang, for $640k in 1988, freehold. I put in $200k renovation. Now it is worth $million?


Anonymous said...

Present price for semi-D at Begonia is between $8.5 million to $10 million?

Bangalow is around $15 million.

Anonymous said...

6.21pm Knn u are one of those that pushes the real estate prices so high that young people now eat dust to own real estate. U should be sodomized jialat jialat for what u did.😀

Anonymous said...

@All, @Anon 621pm

The important question to ask is which property I can buy today that can turn every $1 into $10 in 10 years time?

So will the $15M bungalow be worth $150M in 10 years? If you think not plausible, then move on ... study next potential investment.

Anonymous said...

Washington (CNN)
President Donald Trump has floated multiple times the idea of thwarting hurricanes headed for the US by bombing them, including by dropping nuclear bombs on hurricanes to disrupt their course, Axios reported Sunday, citing conversations with sources who heard Trump's comments and were briefed.

This is not the first time Trump has wanted to use nuclear bombs to solve the US problems that he is incapable of solving.

This mad man, if given his ways, will cause the end of the world. He is a danger to all mankind, quite obviously.

Anonymous said...

Trigger-happy nuclear weapons madness must be inside Trump's DNA, since his grandpa was a Nazi and his father was a German migrant to USA who had hidden his country of origin until DT revealed it recently.

Anonymous said...

@ 1033 pm

Of course, it is possible to realise $150 million from $15 million in a ten-year period of investment in properties.

Location and Timing are the two key factors to consider.

My first investment in 1973 of $28k brought in $385k in just 8 years (in 1981) in Singapore. How many times ROI?

My investment in 2001 of two condominium units in Shanghai, China, at $50k each (3 bed-rooms) brought me $1.5 million each when I sold them in 2011. That was how many % returns?

Anonymous said...

still so proud to create asses bubble. Really needed to be sodomized😰

Anonymous said...

@Anon 728am

You haven't answered the question. Which specific properties TODAY???

So pls recommend which road in Singapore to buy properties & also which cities in other countries to buy!

I also want to 10X-100X my money in 10 years!!!

Anonymous said...

@ 10:12 am

YOU ALREADY REPLIED TO YOUR OWN QUESTION:

///If you think not plausible, then move on ... study next potential investment.///

YOUR QUESTION DID NOT STATE THE WORD "SPECIFIC" :
///The important question to ask is which property I can buy today that can turn every $1 into $10 in 10 years time?///

WHY YOU NOW ADDED THE WORD "SPECIFIC"?
///Which specific properties TODAY???///

WHO IN THE WHOLE WORLD, EVEN THE BEST REAL ESTATE, CAN PREDICT TO YOU IN TEN YEARS' TIME WHICH "SPECIFIC" PROPERTY CAN TURN EVERY $1 TO $10? EVEN GOD WON'T TELL YOU, IF HE IS SUPPOSED TO BE ALL-KNOWING.

THERE IS ONE FACTOR CALLED "LUCK".
HAVE YOU NOT HEARD ABOUT IT?




Anonymous said...

@1102am

That means your method is PURE DUMB LUCK.

You forgot to add ... you also got secure high-paying job to play this Dumb Luck game.

///The important question to ask is which property I can buy today that can turn every $1 into $10 in 10 years time?///

///Which specific properties TODAY???///

THE KEYWORD IS "TODAY" STUPID!!!!

NOT GRANDFATHER STORIES OF 20-50 YEARS AGO!!!