Yes, that is half of it. Certainly the US consumes a lot of cheap Chinese products.
If it were only that simple for me. I actually look at actions, repercussions, etc and try to form an opinion based off what I think is good, bad, or ugly. I have openly said "I don't know how this tariff issue is going to turn out". I'm staying optimistic and praying our leaders have a plan and they know what they are doing. This is a very multi-faceted issue and predicting it is almost impossible. We don't know how the other countries are going to respond and/or how long this back and forth with China and other countries is going to last. I do know it is common knowledge that we have made deals that have left us out in the cold in regards to tariffs and this is an issue that needs to be addressed. Doing it like we have always done it will only last for so long when considering the deficit growing larger and larger each year.
What education level do you believe Chinese workers in the Apple factory have?
An interesting assertion.
That is a good point. The money China makes in the trade surplus, the Chinese turn around and send back to the US in the form of T-Bill purchases. What happens when they decide not to purchase any more? I suppose other (non-Chinese) worldwide investors will look at global instability and place their money where they believe it is most likely they will get their principal back.
T-bills have a scheduled maturity date. The lender has no more power to demand immediate repayment than your mortgage holder can tell you, in year ten of a 30-year mortgage to pay it all now. The holder of a T-Bill may sell it to somebody else, I suppose.
I agree the markets do not like uncertainty.
Our government has been operating with an unlimited production mindset when it comes to printing dollar bills. Getting the money to them would be easy peasy. Now the value of said money after trillions hit the market is another issue. China would be fools to ask for money in a lump sum because they know that...
Corporate bankruptcy is a form of restructuring, which is precisely what Trump is trying to do now with the US economy.
Could also be a sign that other countries are in active negotiations and China isn't. This would send a strong message, either come to the table or nothing changes.
That's exactly what I was thinking. Trump didn't blink, this is pretty much what he was expecting to happen. The real question will be if he blinks vs China.
