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re: Is the goal of the tariffs to negotiate free trade deals or is it to onshore jobs?
Posted on 4/10/25 at 10:23 am to SlowFlowPro
Posted on 4/10/25 at 10:23 am to SlowFlowPro
quote:
Not necessarily
They also hold it for stable investment purposes
They hold it along with other US assets to support the dollar vs their currencies so they can maintain their employment at the expense of ours, grow their industries at the expense of ours. Which is exactly what has happened
quote:
Few assets are as safe as UST
I've heard this before. If safe means you will get your dollars back, maybe so. If safe means you'll get a positive inflation adjusted return from that "investment", absolutely not safe. Monetizing debt is not a free lunch. The US has unsupportable debt and is accumulating more rapidly. We will default via inflation or directly. This isn't doomcasting, it's inevitable.
This post was edited on 4/10/25 at 10:29 am
Posted on 4/10/25 at 10:29 am to wdhalgren
Good post.
I used to view the trade deficit sort of as a benefit until it is not.
Meaning, as long as things run smoothly we get cheap consumer goods and in return other countries help finance our deficits, so we get to spend large amounts of money with very little penalty. no other country on earth can have the sort of debt we have, and we get to do that, in part, because of the large amount of foreign goods we consume.
But, if those foreign governments someday collectively decided it was not in their interests to continue propping up the dollar then we are in big trouble.
But with the sort of deficits we have been running for the last 20-25 years, it is just too much. It needs to be reigned in substantially. Just consider that 20 years ago we reached a record of foreign debt being 15% of GDP. Today it is 30%
I used to view the trade deficit sort of as a benefit until it is not.
Meaning, as long as things run smoothly we get cheap consumer goods and in return other countries help finance our deficits, so we get to spend large amounts of money with very little penalty. no other country on earth can have the sort of debt we have, and we get to do that, in part, because of the large amount of foreign goods we consume.
But, if those foreign governments someday collectively decided it was not in their interests to continue propping up the dollar then we are in big trouble.
But with the sort of deficits we have been running for the last 20-25 years, it is just too much. It needs to be reigned in substantially. Just consider that 20 years ago we reached a record of foreign debt being 15% of GDP. Today it is 30%
Posted on 4/10/25 at 10:33 am to Flats
quote:
You just said absolutely nothing other than admitting you buy cheap foreign clothes.
If Brooks Brothers, Vineyard Vines, and Tom Ford are cheap foreign clothes I’m guilty.
I look for American made but currently there are damn few options. Trump’s policies will changes that.
Posted on 4/10/25 at 10:38 am to wdhalgren
quote:
We run a trade (added for clarity) deficit by sending them dollars. Your response is to something I did not say.
Sorry. I misunderstood.
Posted on 4/10/25 at 10:39 am to JimEverett
quote:
But, if those foreign governments someday collectively decided it was not in their interests to continue propping up the dollar then we are in big trouble.
This is why my questions about this were based in relativity.
OK they want to attack the USD/USTs. What's the alternative? There is no close #2 right now, even with all of Europe combining to try to compete with the US/USD.
The other benefit of having lots of nations "invested", is that if one goes off the reservation (Say, China), it will hurt everyone else and incentivize them to act counter to China. We get to do it (for now) because we are the hegemon. Anyone who challenges that will hurt everyone else (the same way we can throw our weight around and hurt everyone at once).
Posted on 4/10/25 at 10:39 am to Mid Iowa Tiger
quote:
I look for American made but currently there are damn few options.
There are all sorts of websites that can point you to American made goods, clothing and shoes included. You could, if you wanted to, be typing on a keyboard made right here in Kentucky. You're probably not.
At least twice I've seen people here say "If we made XXX in the US", and it was something we do actually make in the US. They don't bother to find out what we make here, they just like to talk about making things here. If people don't pay for US goods now because they're expensive I don't know why they want the government to squash the competition and force them to do so.
Posted on 4/10/25 at 11:03 am to SlowFlowPro
I don't disagree.
But I also think you have to be prepared for the worse. There is no #2 right now, but that doesn't mean one cannot emerge and emerge relatively quickly.
One major international even could radically alter things
I am not sure what the Administration's goal in all of this is. And I don't thin shrinking or even eliminating the trade deficit will solve our fiscal problems. But it will help, and given the current political climate right now it might be the only real change an Administration can accomplish. I don't see House Republicans coming together to radically slash the deficit anytime soon, and I am sure there would be some Senators balk if the House miraculously managed to do so.
But I also think you have to be prepared for the worse. There is no #2 right now, but that doesn't mean one cannot emerge and emerge relatively quickly.
One major international even could radically alter things
I am not sure what the Administration's goal in all of this is. And I don't thin shrinking or even eliminating the trade deficit will solve our fiscal problems. But it will help, and given the current political climate right now it might be the only real change an Administration can accomplish. I don't see House Republicans coming together to radically slash the deficit anytime soon, and I am sure there would be some Senators balk if the House miraculously managed to do so.
Posted on 4/10/25 at 11:12 am to TROLA
quote:
Both. Fair trade not equal trade with a return to infrastructure manufacturing
In the 21st century there needs to be a middle.
Free trade allows us to get goods cheaper, but it hurts our jobs especially in manufacturing. It also allows countries to make cheap products with cheap labor.
Fair trade raises prices. 1 thing fair trade does is put more regulations on foreign countries that make products sent to America. The regulations make sure that their workers are getting paid fairly and that 10 year olds aren’t making our refrigerators. Regulations cause a rise in prices, because foreign companies have to pay more to make goods.
You can buy a good DeWalt impact drill that is assembled in America using Chinese goods or you can buy generic drill on Temu that looks the same for an 1/8th the price assembled in China. The products made in China are terrible and may last a few months. We need there goods, but need them assembled here.
One fix would be to charge a small tariff on finished products. This helps US manufacturing and gives us better American made products. They could have reciprocal tariff on our finished goods.
Right now we are paying a high tariff on their unfinished goods and it raises the price made here.
This post was edited on 4/10/25 at 11:14 am
Posted on 4/10/25 at 11:33 am to SlowFlowPro
quote:
Which country has increased their UST holdings the past 20 years?
According to the Federal Reserve, Foreign held Treasury debt increased from about $1T in 2001 to $8.5T end of 2024. About 55% of that $8.5T was held by private sector entities and 45% by central banks. It's not always easy to tell who owns that debt because some of it accumulates in financial centers (like Luxembourg or City of London) and governments aren't necessarily transparent about their activities on foreign exchange markets or their reserve holdings.. The top financial center area holders recently were Euro Area ($1.8T), Japan (1.06T) and China/Hong Kong (1.10T). Euro area has probably seen the largest single increase in holdings over that time period.
This post was edited on 4/10/25 at 11:46 am
Posted on 4/10/25 at 11:48 am to Flats
quote:
You could, if you wanted to, be typing on a keyboard made right here in Kentucky. You're probably not.
You’re talking about the mighty fine Unicomp keyboard?
The one that sales for around $150 depending on the model?
That’s a great example of an American company unable to compete with foreign competition because the foreign products while inferior in quality are subsidized by their own slave labor and tariffs in their home country.
Plus if you pull apart a Unicomp keyboard you will see a ton of parts manufactured overseas.
It would be more accurate to say they are assembled in America than made here.
Posted on 4/10/25 at 12:00 pm to DavidTheGnome
Economics is only one aspect though. This is far more nuanced since we have been bleeding jobs, have a debt crisis, have other countries with all of their hands in the proverbial cookie jar with no recourse, etc. In this case, tariffs are used as a negotiating tactic in the end. So, yes, both things can be true just not necessarily in tandem. Nor do they have to be. Especially if you can box China out.
Posted on 4/10/25 at 12:03 pm to rileytiger
And screw China.
The US is gonna have to fight the CCP eventually. Might as well be when we have cards to play.
The US is gonna have to fight the CCP eventually. Might as well be when we have cards to play.
Posted on 4/10/25 at 12:03 pm to SDVTiger
You're like a trusting puppy, aren't you?
Posted on 4/10/25 at 12:04 pm to Arkaea79
One thing trump is talking about right now is building energy plants.
We should be trying to go ham on energy. All of it, coal, oil, gas, hydro, nuclear.
Im not fond of solar farms, but if homes and buildings want solar, go for it.
Also, back on the ship building.
These are things you can do to help create jobs that we should be doing regardless of trade.
Don't take my word for it. Watch the cabinet meeting.
We should be trying to go ham on energy. All of it, coal, oil, gas, hydro, nuclear.
Im not fond of solar farms, but if homes and buildings want solar, go for it.
Also, back on the ship building.
These are things you can do to help create jobs that we should be doing regardless of trade.
Don't take my word for it. Watch the cabinet meeting.
This post was edited on 4/10/25 at 12:08 pm
Posted on 4/10/25 at 12:08 pm to DavidTheGnome
It’s a combination of both you moron!
This question & sarcasm, Tells us your dumb as a box of rocks without telling us outright!
It will take some time & it’s a balancing act! But the ENTIRETY of MAGA’s overall plan, re-establishes the USA from getting bent over!
Why in hell should we pay more on tariffs than we charge????
And pay for NATO?
And Social Security fraud?
All the DOGE FRAUD, USAID, NGO scams
Illegals making more money than many tax payers
All of our manufacturing shipped overseas and we are dependant on countries that hate us!
Our ENTIRE ECONOMY & Quality of Life is gonna flourish!
Maybe we pay more for certain goods? BUT pay no taxes or taxes slashed big time!
Do your research! Pre-1913/THE FED
There was no IRS!
I’d rather keep my tax money and pay for an American worker that will keep the money here
Some of you people on this board are straight ignorant or brainwashed liberal tranny lovers, and part of the problem
This question & sarcasm, Tells us your dumb as a box of rocks without telling us outright!
It will take some time & it’s a balancing act! But the ENTIRETY of MAGA’s overall plan, re-establishes the USA from getting bent over!
Why in hell should we pay more on tariffs than we charge????
And pay for NATO?
And Social Security fraud?
All the DOGE FRAUD, USAID, NGO scams
Illegals making more money than many tax payers
All of our manufacturing shipped overseas and we are dependant on countries that hate us!
Our ENTIRE ECONOMY & Quality of Life is gonna flourish!
Maybe we pay more for certain goods? BUT pay no taxes or taxes slashed big time!
Do your research! Pre-1913/THE FED
There was no IRS!
I’d rather keep my tax money and pay for an American worker that will keep the money here
Some of you people on this board are straight ignorant or brainwashed liberal tranny lovers, and part of the problem
Posted on 4/10/25 at 12:33 pm to DavidTheGnome
quote:
It doesn’t work like that though.
Go back to sleep. You're too stupid to be discussing this.
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