obviosly you are not educated. usofa exports one thing, above all else, $usd we had gold as monetary anchor since ww2 because we had nearly 60% of gold holdings and everyone else was broken by wars. then oil, oil producing countries trade surplus came back to buy us treasury. we print money and can buy anything we want even though we don't have to be skilled to make things. american money buy up shares of samsung, alibaba, tsmc, etc.
Of course. And the difference in budget deficit and total debt. Do you? We have to get this 37 trillion national debt manageable or we won't be able to pay the interest much less pay on the principle. Our politicians have run this up with: 1) waste 2) budget deficits from year to year 3) bad trade deals that screw us (trade deficit). We have the world's biggest trade deficit. 4) policing the world fighting these stupid wars 5) encouraging these stupid trade deals and attempting hegemony militarily and by using our money (actually becomes our debt) as power to overwhelm or pressure countries to our will. 6) outsourcing jobs, our production, our wealth. 7) aiding nations with millions and billions that end up getting ripped off by their politicians. 8) Following the dumb advice of economic professors that can't seem to use common sense.
Obviously you "think" you are. And apparently following the economic beliefs that got us in the terrible position we are in.
Um yes end the dollar as the reserve currency. We will just start over and build back. We will declare national bankruptcy then what will the world do? They hold a lot of our debt. "Poof" Gone.
you understand that 70% the debt is held domestically, if we default, social security will have money to make payments, and no food on the table, even the great recession in the 20s we didn't default on debts. and you think it is easy to reset, starting from the retirement accounts being zero first.
Look the world best get on our side and acquiesce or they will regret it greatly. The price they will pay for not doing so is huge. Canada is going to mess up their economy in a bad sort of way by being stubborn on this. China too. They will be in shambles. So far Mexico is being the only rational one in their response. Europe's pride and stubbornness will be their downfall. Understand the world does not have to go into a worldwide recession and wipe out their jobs, wealth, retirement...etc. They just need to give us a fair deal in trade. We have carried the brunt too long, and we are sick of it. Tired of it and we mean business. They best get to doing what is best for their interest and quit thinking they will win they trade this trade war. If they don't they will decimate their economy and of course blame us. But it will be their own "little red wagon" to pull.
they can bear more pain than we do and they can trade without us, that was the case before usa was founded. take exmaple of china, they make more than half of manufacturing goods, that is hard currency. when you wake up tomorrow and they ask walmart to pay for the purchase orders in chinese currency and not accepting dollars, walmart will scramble and call jpm/citi/boa for chinese rmb, in turn those commercial banks don't have enough rmb and will call the fed. even the fed doesn't have that much rmb in reserve and can only exchange with gold. puff, gold bars will be delivered to china and the chinese now can print paper and we have to use it. forget about mexican, their ex/im is balance, any excess they have now is brokering merchandises from china.
Um tariffs funded our gov until 1913. We will be just fine. Tariffs will pay. Unless the world decides to pretend like we don't exist and decide not to export to us or build here creating jobs and wealth for us (in order that they may avoid the tariffs). That would be unlikely but possible. If so, then we are screwed. See with tariffs we keep the jobs, make the product, use the product..export the product, keep the money and fund our gov including SS...military ...etc a win win for us. So, either the world will move manufacturing here (they want a slice of the american pie LOL) or they won't be able to export the products and tap into our markets. They have a choice to sell to us: Lower their profits to eat the the tariffs themselves. Or suffer the lack of demand from the American consumer who refuses to buy their product because of the high cost of the tariffs on the product. So, they will be cutting themselves out of the American market if they try to dump the tariff on the American consumer like they are all projecting. Why are they so worried if it is the USA consumer that will pay? What should it matter to them? Deep down they KNOW they will pay. If they do in fact move here (like some are already planning on doing just like in last few days and weeks) then more revenue for the gov too unless Trump can manage to do away with domestic income taxes.
there is no "they". "they" are s&p 500 companies outsourcing overseas, including the call centers in india back in the early 90s. if "they" can't equally access to outside markets, "they" will overthrow cheetos in a heart beat, as soon as mid-term.
We will see what happens. You got it all wrong. You swallowed hook line and sinker what the modern day socialistic economic professors preach and that is exactly what got us in this mess to start with. That is what all you naysayers want is for Trump to get out. You guys can't stand him and cannot see the good for the anger you are consumed with. Just like the Tesla's lawless bandits detest Musk (but at one time he was their darling could do no wrong) you guys want Trump out. Don't make the mistake those bandits made. It won't work. All these protests they are organizing will do no good. It is the socialist ideas and mindset that got us into this mess to start with and now it is D-day. Trump will not put up with it. It is a great and wonderful day for capitalism. A resurgence for America. We will rise again! All the way to the TOP! The freeloading on America IS OVER boys. OVER!