Trump forcing the return of sweat shops to America

 Trump eats, sleep and dreams about China approaching him and begging to negotiate. It is not going to happen and by repeating it will not make it happen either. Xi is now busily building more bridges than thinking about negotiating with Trump. It is driving Trump insane. The joke has gone too far.

Do we still remember that Trump also kept repeating that Mexico will pay for the wall during his first term. Who really paid for the wall? The whole world knows that Mexico did not pay for that wall. Trump also kept repeating that he will bomb North Korea to the stone age if Kim Jong Un did not comply with his de-nuclearization threat. Did Kim Jong Un de-nuclearize? If not, what did Trump do? Nothing! Absolutely nothing!

Trump kept gloating that he is bringing manufacturing back to USA using his tariff weapon and repeating this to support his arguments. Most analysts are saying that this is just a fanciful pipe dream that can never be fulfilled, an empty promise he made since his first term. In fact, the opposite is true with companies like John Deere moving a large part of its production to Mexico due to cost factors. And costs will be the decisive factor that those companies intending to move production to the USA will have to think carefully about. In addition to that, tariffs are going to inflate costs even more. With no plans, strategy, control of raw materials, supply chains to match, all that gloating is going nowhere.

Now the Chinese are making fun of Trump by making AI generated videos of the type of jobs that the Chinese were accused of stealing and which Trump is asking to be returned to the USA. Those were just sweatshop jobs that were pushed to China to benefit USA investors trying to make bigger profits. The Chinese 'peasants' were at that time hungry, prepared to endure hardship, prepared to work hard and bear with the humiliation. Today, Chinese manufacturing has come a long way with automation and robotics coupled with AI and needs fewer workers to run factories.

Trump can take such jobs to the USA for his MAGA base. But the obese MAGA voters are in no position to want to work in such sweatshop environment, having enjoyed the easy life afforded by the money printing mindset and waiting to exchange their toilet papers for the products made by 'peasants'.

Anonymous

Tariff war - USA consumers and USA businesses will suffer.

 Honestly, it is not just USA consumers that will suffer. USA businesses that have to depend on China's supply chain will possibly collapse without the parts and continued inputs. Walmart and Amazon depends on China's manufacturing to stock up on supplies and will find it impossible to do business as usual.

The shit has not hit the fan yet and the USA has yet to face the worst that is yet to come. Stock-piling may keep the problem at bay for a couple of weeks or months, but it cannot be avoided further down the road. That is why Xi is not going to negotiate and let the USA have a taste of its own bitter medicine. China knows that all that talk about luring manufacturing back to the USA is just hot air.

China has gone through worse setbacks and is still standing for more than five thousand years. It will not collapse that easily because of a trade war even if Gordon Chang continues with his cheering on a year-by-year basis.

Anonymous

The Great Wall of China will protect the Global South from the American bullying and tariff war

 China thinks long term, prepares for the long term and works for the long term. That means covering all angles - leveraging on the past, planning for the present and preparing for the future.

China remembers the century of humiliation and has learnt from it not to remain weak as before. China in its present state lifted more than eight hundred million of its 1.4 billion population out of poverty, adding a big boost to its domestic demand with the added spending power and powering along with its manufacturing domination. China knows that its future direction is de-coupling completely from the USA, which is the best bet for its smooth progress and is definitely serious about it.

China is telling the USA 'We don't care' talking about the tariff war and planning to fight to the very end. China is prepared to sacrifice the 15% of its exports to the USA, out of a total of US$3.6 trillion globally, if the worst happens. Will China collapse because of that? Some morons have been talking about China's collapse for more than 20 years and people are tired of it. Even Russia is standing tall in the face of a collective effort of more than 32 countries trying to bring it down. Did Russia collapse? Or for a wider comparison, did Cuba, North Korea, Iran or Venezuela collapse despite all the sanctions imposed, some for half a century. Some, like North Korea and Iran have even grown stronger.

Sanctions have been rendered ineffective. Tariffs will backfire and also be rendered ineffective as countries find alternatives to trade among themselves. As many have already been saying, the USA is not the only market for others to trade with. That is already an outdated mindset.

Anonymous

Low intellect Trump and his pick of low intellect cabinet

 With a low intellect, Trump still claims he is a 'stable genius'. He is indeed a stable genius - a stable genius in bankruptcies. Some are touting that bringing down the USA will be his 'mother of all bankruptcies'.

Trump has the 'Art of the Deal', which actually means the art of cheating others through declaring bankruptcies - six times in all, mind you. Trump has a long list of accolades that he is proud of - six bankruptcies, a convicted felon, scores of sexual misdeeds and yet here he is, the President of the USA. A wonderful country filled with wonderful voters.

Trump's cabinet pick is another gathering of clowns in a circus. We have seen the grotesque performance of J. D. Vance in Greenland and his racist remarks on China, Pete Hegseth over the security leaks, Peter Navorro and Scott Bessent on the tariff's confusion now unfolding.

What has not been on the news is the performance of Robert Kennedy Jr that has gone under the radar. He was an anti-vax proponent during COVID19 and now denying the undeniable. Now he is said to be doing another anti-vax move over the measles outbreak in the USA, claiming that vaccination provides no long-term effectiveness.

The other most ridiculous appointment was the Education Secretary, the 76- year-old former CEO of the World Wrestling Entertainment, Linda McMahon. Her main expertise is promoting a sports entertainment entity and education is nothing like entertainment promotion. She already made a blurred gaffe getting confused talking about AI and getting entangled with A1, a brand of sauce by Kraft.

The circus is getting more entertaining. Let us sit back and enjoy the clowns doing the rounds.

Anonymous

End of American dollar...Beijing instructs all Chinese banks to ditch the dollar

 Beijing has instructed all Chinese banks to ditch the dollar, ie not buying or accepting the dollar. What does this mean and what are its implications? The first reaction is that China does not need any more American dollar, either because it has too many or does not have any more needs for the dollar.

China has liquidated about $700 billion treasury bills and still holding on to about $750 billion, and still in the process of selling them off. China is also reported to have a reserve of more than $3 trillion, and unofficially the sum could be much more. Given the hostility of the American trade and tariff wars and the 245% tariff, the decoupling of the two economies is as good as complete. When China is no longer buying anything from the Americans, there is no more need to hold on to any American dollar as there is no more practical use for them. 

Another major reason is the dedollarisation process, to trade using local national currencies and the yuan. This means holding on to American dollar is unnecesary and a big risk with the American gangsters ready to confiscate them. The faster China gets rid of its holding of American dollars and treasury bills the better. 

The other big implication of not wanting to own American dollars is that there will be no need to sell Chinese goods to the USA in exchange for dollars that China does not want. The high trade tariffs that Trump's regime imposed on China makes selling to the American market irrelevant. Exporting to America would plunge to near zero.

Countries importing goods and services from China would also have to pay China in their own currencies or in yuan, not in American dollar. A complete decoupling and break from the American economy would become a clean break. And the dumping of treasury bills and the dollar would increase in speed in the coming days.

When China, the biggest exporter and trading partner of more than 125 countries in the world stops accepting the American dollar, whither the American dollar? Countries of the world would increasingly find that they do not need the dollar as well as they cannot use the dollar as payment for Chinese goods and services. Unless they need the dollar to buy expensive American goods and services, they too would follow China in reducing their needs and holdings of the dollar.

If this trend catches on, the dollar would turn into another banana currency, plenty in supply but no demand for it or to use it. It would be the final nail to the coffin of the American dollar.