A Trade War With China?

Discussion in 'Economics' started by Tom B, Sep 27, 2010.

  1. if I were Chinese leader, i would impose a tax exporting to US, thus reducing the the trade imbalance with US while average Americans pay more for everday life. the surplus from trading with US is useless for china now when china has 2.4 T dollars in balance, most of them invested in US bonds. with the dollar devalues at the current speed, it is very foolish for china people to pollute their river and environment to trade for toilet green papers.

    I am a chinese, and I support trade war with US since we do not need those money, we have too much.

     
    #11     Sep 27, 2010
  2. What? You don't think that if politicos had to choose between (1) condemning the US to a SHITHOLE, and (2) getting reelected... that they wouldn't choose the latter?
     
    #12     Sep 27, 2010
  3. Yours is a recipe for disaster and is a symptomatic of the hysteria that Obama has whipped around the nation to boost his flagging polls. Don't fall for that trap man.

    History bears out these theoretical observations. Thirty-five years ago it was Japan that the U.S. was lecturing to revalue its currency upwards.

    At the time one dollar fetched over 300 yen. During the intervening decades the dollar has duly been made weaker to the point that now the dollar fetches less than 100 yen. That is to say, the yen has appreciated more than threefold against the dollar. And what happened to the trade deficit of the U.S. vis-a-vis Japan?

    Sad to say, rather than approaching equilibrium, it has worsened tenfold!
     
    #13     Sep 27, 2010
  4. 377OHMS

    377OHMS

    Excellent observations. Few remember that we had Japan under an embargo and cut-off from Dutch-East Indian oil (Indonesia).

    China doesn't want a war with the USA in my opinion. They want propserity for their people and a fair "share" of natural resources. Its just that their culture has not fully embraced the concept of fair play. The USA has a highly developed sense of fair-play. The Chinese don't quite understand what all the fuss is about regarding their artificial currency value.
     
    #14     Sep 27, 2010
  5. China controls if the dollar remains the reserve currency of the world. What would happen to the US if they refuse the dollar and only accept Euros. Take a look at the Chinese ownership of companies based in the US that sell to China. In one pocket and out of the other. If they want our technology, products etc. they simply buy our companies and transfer the knowledge and know how back to the mainland.

    There was an interesting study a few years back when Motorola entered the Chinese market. They basically got raped and pillaged in a one sided transaction. Chinese laws and modes of operation are much different than ours. No anti-trust laws, price fixing is common practice.. Even their judicial system is shoot first and anyone else that questions the shooting.

    We are in Afghanistan because the Chinese were awarded contracts and access to all of the untapped mineral wealth... The Saudi Arabia of Lithium.. Our companies lost the bidding war in 2007. It just so happens our military is occupying these regions and the chinese are unable to get to work.

    Lets say an all out embargo of trade between the US and China were to start today. The Chinese would continue to sell the same products and volume but to Mexico and Canada who would mark-up the products and resell them to the US. Everything just costs more and our dollar loses its reserve status and value.

    Take a step back and look at 5000+ years of Chinese History versus the US 225 years. We've had less than 10 generations versus at least 250. We've really only carried the torch as a world power since WW II. 60 years... 3 generations ruled by the big nuclear stick.

    Our military dominance is questionable... Our technology may be superior but we are losing to amateurs throughout the middle east. The Chinese military is 3x the size of ours, they have nukes and the will and stomach to fight to the death.
     
    #15     Sep 27, 2010
  6. 377OHMS

    377OHMS

    Absolute tripe.
     
    #16     Sep 27, 2010
  7. Tsing Tao

    Tsing Tao

    someone please explain something to me so i can understand.

    if we place tariffs on chinese goods (like the poultry tariff they just put in play at 105% - so whoever above said that won;'t happen needs to rethink a bit) and make them more expensive coming into the US, what is to stop companies from simply buying from, or setting up manufacturing in every other poor asian country out there salivating for a piece of the pie? how does this result in an increase in american jobs?
     
    #17     Sep 27, 2010
  8. Tsing Tao

    Tsing Tao

    so was the rest of his worthless post. why stop at that one sentence :)
     
    #18     Sep 27, 2010
  9. It dosen't. Indonesia has 200 million people and Vietnam has a population of 90 million which is enough to soak up any demand for labour.
     
    #19     Sep 27, 2010
  10. Yes, it did, by opening a second front in China.
     
    #20     Sep 27, 2010