The US and China’s Trade Headlock

Sanctions and tariffs with China and the countries that China is sending their goods through to the US with fraudulent origins are a good thing for the US economy and it is not too difficult to explain how this is true. China manipulated their own currency in an attempt to overcome the tariffs and nearly crashed their financial markets and it is not the fault of President Trump. You have to go back a few years to see the whole picture so let’s do just that.

China has an export only market. What does that mean? It means that the population of China is too poor to be able to buy the things manufactured in China. China basically has no middle class, a clear result of Communism. There are very wealthy people, very poor people and unlike America there are not very many people in between. China makes roughly 80% of its income through export, most of that is to the United States through Canada, Mexico and direct trade. If a product is 1% assembled or packaged in either of those countries it is the host nation’s law that the product may be labeled made in Canada (or Mexico). This is why Bill Clinton created NAFTA, which was actually a Hillary idea years and years before Bill was elected in the fake Presidential election. NAFTA, the Clinton pay offs and Walmart's control over the physical market allowed China to explode economically. China continued this market build because it was successful. There was no reason to change, Obama for eight years and Hillary was supposed to follow. The status quo would have gotten worse for Americans with the Paris Climate Accord that had basically nothing to do with climate. It would have removed restrictions on all Chinese energy companies while America would have been paying trillions into a fund that elites would have used for who knows what while millions more jobs were transferred to China. In case you didn’t know, NAFTA allowed about 30 million production and manufacturing jobs to be moved to China since 1996. China pays their people communist wages and with NAFTA can ship the goods to the US far cheaper than they can be made locally.

What most of you probably do know is that Trump is playing hardball with China on trade. He needed jobs to come back to the states fast, very fast to help discredit all the things the MSM and Democrats say about him. He accomplished the jobs goal. The immediate investments made in the states by foreign companies were incredible. The tariffs on Chinese steel and aluminum allowed some of the largest steel manufactures in the US to reopen and take huge contracts that would pay their employees for years to come. Seeing the success of just the two tariffs, our President, left and right even agree he is good at negotiation, saw blood in the water. Knowing the financial world intimately as he does he knew that getting China to make a new trade deal would take a little time but would ultimately be a resounding success. China is a bully and a dishonorable trade partner. The Word Trade Organization(WTO) has fined them repeatedly, threatened to remove them as a member, they have lawsuits against them for stealing technology, ignoring patents and copyrights, corporate espionage, you name it in business and they are guilty. Couple that with having no consumer market of their own and you have a very weak enemy in the trade negotiations that currently have a trade deficit that favors them by the hundreds of billions annually. There is a lot of opportunity there for a man that likes to make money and congratulate himself.

China knew this when Trump got elected, they have spent some real money with media and Democrats trying to discredit him and his decisions regarding trade and tariffs. They even made a movie about it in their own country and forced people to buy tickets to see it. They blocked google access to their country shortly before that political stunt and allowed google access after they finished their propaganda campaign amongst their population. If you know American history as pertains to federal authority, you may know that the only legal way for the Federal Government to make an income is through tariffs. Income tax is not legal. There is not a single law in the country allowing income tax to be collected by the Federal Government. This in itself does not make tariffs a good idea, the market needs to be able to handle the sudden changes. Luckily Trump understands the Federal Reserve in ways the general public and most politicians do not. So far he has been able to force the Fed to lower rates at just the right time. Here is a very good article explaining how Trump has forced the Federal Reserve to back him up. Since this article does such a wonderful job explaining it I will not even try. https://www.zerohedge.com/news/2019-06-22/how-trump-outplayed-powell-and-heres-what-happens-during-next-weeks-critical-trump

Huawei is a very large Chinese technology company, they are built entirely off of stolen technology and dirty business deals with various countries political elite and Trump has sanctioned the hell out of them. He has seized their property in Alaska and has not given it back long after the deadline to do so, which he doesn’t have to as they are sanctioned for illegal activity. They are basically a dead company outside of China and have no real market inside their own borders. They are suing Trump to get their property back but with the sanctions for illegal activity you can count on them not getting a win in any way in US courts.

China just saw their lowest SHIBOR market values since 2008. Iran is has not been able to get its oil to China because of the fifty year plan of the pro-war psychos in our government and China is hurting. They have been manipulating their currency to adjust for the Trump tariffs, setting revenge tariffs of their own but what good does that do when China needs our products more than we need theirs? The people of China are not the people who can afford to buy the Chinese products. Wonderful. 

China is now demanding ahead of the G-20 Summit that Trump remove the tariffs or there can be no trade deal. We don’t need a trade deal with China, all we need to do is even out the trade deficit to an even balance and China is finished while America grows and grows. Our country is running just fine without one, the Chinese tariffs on American goods are being offset by all the money Trump has made for the country, all the “humanitarian aid” that he is withholding from corrupt nation states and offering it to the pork ranchers, corn and soy farmers etc. Side note, those farmers and ranchers do not want the relief money, they consider it welfare and do not want to be on the government tit because the government does not like to let you off of it once it has you. You can ask all of the inner city Democrats to see how many of them have been able to rise back up out of government inflicted poverty through welfare. 

We have tariffs on nearly 300 billion Chinese goods, some as low as 10% and some as high as 25% whereas China is tariffing our goods at rates like 100% and 120%. Which hasn’t accomplished anything. Trump did not create the conditions for the trade war to go so badly for China but he is certainly taking advantage of it. China also has a bad habit of sending their goods to Thailand, Taiwan and the Philippines and having the documents forged to say they were made in those nations and then sent on to the states. Trump has enacted some tariffs there too though you do not hear too much about it on the MSM sites. China gets caught selling food products with banned chemicals in them all the time, honey for instance. There are a number of insecticides that are illegal in the US that China uses, lies about in their inspections and sends on its way to our citizens for contamination. There are federal charges against a number of German nationals for that particular case who were fully aware they were aiding China in these practices right here in the US. Pharmaceuticals that are unregulated and untested by the Chinese government for accurate dosages and restricted compounds imported to the states for Stratton drugs. The list of bad business China commits is endless. Trump has President Xi in a headlock and Xi knows it. China cannot attack the US, our Navy is too damn strong and China was not planning on attacking the US for at least another twenty years. They want islam’s moohamheads and the (re)progressives to weaken America to an unrecoverable degree first. 

What America has is a situation that Trump cannot lose. Who can really say what damage the Federal Reserve has done to the market over the last twenty years of manipulation to the dollar and the market. It may all crash at some point like some economists say it will. The tariffs coming in and the aid having stopped going out may save the market. Trump is getting companies all over the world to come back to the states with the tax cuts and the tariffs imposed on imports, which means a lot more tax revenue over time even though the tax rate is lower. He is getting them to invest in the states by the hundreds of billions and build new companies all over the country. Even Apple is considering leaving China, maybe that is a negotiation tactic Apple is playing or maybe Trump has forced their hand, I don’t know but the result is that China is losing millions of production jobs fast, they cannot sell their goods to anyone else and if they do not come to some arrangement they are in big trouble. President Xi is a hardliner communist, he is not allowed to look weak on the world stage so he cannot back down but this is to Trump’s benefit. I disagree with Trump’s weapons deals with Saudi Arabia, I hate the lies he has told the American people about his plans for immigration control, since he has quietly made things worse, most Trump supporters do not know that, but I give that man all the credit he deserves for being a negotiation Titan. He may be one of the best negotiators in the world.