EPThttps://www.wsj.com/articles/u-s-china-quietly-seek-trade-solutions-after-days-of-loud-threats-1522018524
US Politics Mega-thread - Page 46
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A3th3r
United States319 Posts
https://www.wsj.com/articles/u-s-china-quietly-seek-trade-solutions-after-days-of-loud-threats-1522018524 | ||
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GreenHorizons
United States23229 Posts
On March 27 2018 04:41 {CC}StealthBlue wrote: There is going to be a movie about this now, holy shit. As if the FBI didn't need to give critics any ammo to begin with. lol the same guy spotted front row at a Hillary rally iirc. Alex Jones is going to have a stroke. Glad I wasn't one of those people spending the last year caping for the FBI. | ||
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Plansix
United States60190 Posts
On March 27 2018 04:44 A3th3r wrote: Now that the tariff situation is resolved for the time being with these temporary exemptions, the US should raise the tax on Chinese automobiles from 2% to, say 8%. China taxes all automobiles that enter their nation at 25%. It's unfair that there is such an imbalance. That seems like a reasonable enough deal. https://www.wsj.com/articles/u-s-china-quietly-seek-trade-solutions-after-days-of-loud-threats-1522018524 Or we can just let the adults work on resolving the issue, rather than throw more rocks at glass houses. A full blown trade war will hurt us as much as it hurts China. | ||
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A3th3r
United States319 Posts
On March 27 2018 04:55 Plansix wrote: Or we can just let the adults work on resolving the issue, rather than throw more rocks at glass houses. A full blown trade war will hurt us as much as it hurts China. that is a resolution to that issue. There continues to be a pretty major trade deficit problem in America. That's what we are doing right now is proposing a solution to that exact problem (e: trade DEFICIT not DEBT) | ||
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WolfintheSheep
Canada14127 Posts
On March 27 2018 04:57 A3th3r wrote: that is a resolution to that issue. There continues to be a pretty major debt problem in America. That's what we are doing right now is proposing a solution to that exact problem How are tariffs supposed to solve government debt? | ||
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zlefin
United States7689 Posts
On March 27 2018 04:57 A3th3r wrote: that is a resolution to that issue. There continues to be a pretty major debt problem in America. That's what we are doing right now is proposing a solution to that exact problem what was the proposed solution? all I saw you say was a tariff on chinese cars (do we even import any of those?). and the article is behind a paywall so I can't read it. also not clear on how that would relate to the debt problem anyways. | ||
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Plansix
United States60190 Posts
On March 27 2018 04:57 A3th3r wrote: that is a resolution to that issue. There continues to be a pretty major debt problem in America. That's what we are doing right now is proposing a solution to that exact problem What debt problem are you referencing? | ||
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CorsairHero
Canada9491 Posts
On March 27 2018 04:57 A3th3r wrote: that is a resolution to that issue. There continues to be a pretty major debt problem in America. That's what we are doing right now is proposing a solution to that exact problem China owns 1.2 trillion of US debt. You sure you want to piss them off? | ||
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Mohdoo
United States15689 Posts
On March 27 2018 05:36 CorsairHero wrote: China owns 1.2 trillion of US debt. You sure you want to piss them off? And then there's "but they need us!" Then someone points out "we need them too!" Then we all come to realize we are all deeply interconnected and all benefit tremendously from each other and trade wars are stupid. | ||
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A3th3r
United States319 Posts
Trade deficit problem not debt problem, sorry. The US imports more goods than it exports by a large margin. That's considered problematic by economists. It is unclear what the solution to that is & there have been many ways to fix it that have been considered. https://www.thebalance.com/trade-deficit-by-county-3306264 | ||
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Mercy13
United States718 Posts
On March 27 2018 05:55 A3th3r wrote: Trade deficit problem not debt problem, sorry. The US imports more goods than it exports by a large margin. That's considered problematic by economists. It is unclear what the solution to that is & there have been many ways to fix it that have been considered. https://www.thebalance.com/trade-deficit-by-county-3306264 Do you have a source for this? | ||
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A3th3r
United States319 Posts
On March 27 2018 05:36 CorsairHero wrote: China owns 1.2 trillion of US debt. You sure you want to piss them off? Right, that's the debt problem that the US is facing at the moment. The only way to trim that down a bit is to do as the Germans do, which is save money, pay off bills, & think of the long term not the present term. Culture change can be difficult thing to do. In America there is a fixation on the "California mentality" which tends to emphasize taking out a lot of loans & trying to live in big houses. That tends to juice up the economy but the downside to that is that there are big debts which are owed to other countries. | ||
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IyMoon
United States1249 Posts
On March 27 2018 05:59 A3th3r wrote: Right, that's the debt problem that the US is facing at the moment. The only way to trim that down a bit is to do as the Germans do, which is save money, pay off bills, & think of the long term not the present term. Culture change can be difficult thing to do. In America there is a fixation on the "California mentality" which tends to emphasize taking out a lot of loans & trying to live in big houses. That tends to juice up the economy but the downside to that is that there are big debts which are owed to other countries. Whoa now, that was 12 years ago. We have a surplus now thank you very much! | ||
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A3th3r
United States319 Posts
Yes "My view is that the trade deficit is not a problem in itself but is a symptom of a problem. The problem is low national saving. Given that national saving is low, I am not eager for the trade deficit to disappear, because that would mean that domestic investment would need to fall to the low level of national saving. But I do think it would be good if the trade deficit were to disappear accompanied by an increase in national saving." N. Gregory Mankiw (2006) https://www.frbsf.org/education/publications/doctor-econ/2007/june/trade-deficit-exchange-rate/ | ||
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zlefin
United States7689 Posts
On March 27 2018 05:55 A3th3r wrote: Trade deficit problem not debt problem, sorry. The US imports more goods than it exports by a large margin. That's considered problematic by economists. It is unclear what the solution to that is & there have been many ways to fix it that have been considered. https://www.thebalance.com/trade-deficit-by-county-3306264 it's a hard problem to fix; and it's clear the republicans and trump don't really care about it since they voted to make it worse. it's really more of a social problem than an economics one in terms of what fixes need to be deployed. it's notoriously difficult to fix social problems. | ||
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IyMoon
United States1249 Posts
On March 27 2018 06:03 A3th3r wrote: Yes "My view is that the trade deficit is not a problem in itself but is a symptom of a problem. The problem is low national saving. Given that national saving is low, I am not eager for the trade deficit to disappear, because that would mean that domestic investment would need to fall to the low level of national saving. But I do think it would be good if the trade deficit were to disappear accompanied by an increase in national saving." N. Gregory Mankiw (2006) https://www.frbsf.org/education/publications/doctor-econ/2007/june/trade-deficit-exchange-rate/ Does he mean national saving as how much the people of the nation save? Or what the states save? The nation as a whole? Sorry I am just a bit confused | ||
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Plansix
United States60190 Posts
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A3th3r
United States319 Posts
On March 27 2018 06:05 IyMoon wrote: Does he mean national saving as how much the people of the nation save? Or what the states save? The nation as a whole? Sorry I am just a bit confused The savings rate of people in general. So if everybody stashed away ten percent from every paycheck, which is a normal amount to save, the problem would clear up overnight. People in America don't do that - they invest in stocks or buy houses or cars or new electronics. I guess I don't know how to make people not be foolish with their money except by maybe educating enough of them that it doesn't matter if there are a few dummies in the mix e: 10 percent, not a dollar | ||
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Sbrubbles
Brazil5776 Posts
On March 27 2018 06:12 A3th3r wrote: The savings rate of people in general. So if everybody stashed away a dollar from every paycheck, which is a normal amount to save, the problem would clear up overnight. People in America don't do that - they invest in stocks or buy houses or cars or new electronics. I guess I don't know how to make people not be foolish with their money except by maybe educating enough of them that it doesn't matter if there are a few dummies in the mix Buying stocks and houses is counted as saving. | ||
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A3th3r
United States319 Posts
On March 27 2018 06:06 Plansix wrote: Trade tariffs on China is not going to impact them investing in the US bond market. And its not like they can get in a fight with the US about it or try to accelerate the collection. I don't think that's an issue. In general, the US encourages other nations to invest in their debt & in US savings bonds & by buying property in US cities in such, much like Britain does. For example, Russian & Saudi Arabian princes with a lot of money tend to buy hotels in London or New York. I guess nowadays they are trying to discourage that in order to get locals to step it up instead. The trade tariffs are meant to protect local businesses & hurt "outside" businesses. I think the idea there is that there would be more trade done by local businesses when these rules are in place. Whether that's how things are going to turn out or not is unclear. International trade is good for businesses anyways so I guess I'm not too sure how things are going to pan out there. There aren't as many businesspeople in China as there are in the US so the state is trying to take a more direct role in managing the economy, whereas in the US it is thought that folks should trust the CEO's & encourage them to spend money in interesting ways. | ||
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