Walmart just leveled with Americans: China won’t be paying for Trump’s tariffs, in all likelihood you will

[nahtanbob]

Why does China want to export to USA? China exports $600 billion & imports $200 billion. China is getting treasury bonds in lieu of the $400 billion which just keeps accumulating endlessly over the years. China has a total surplus of $800+ billion a year and it is accumulating to be over $10 trillion over the years.

This means China is giving $400 billion on loans to USA every year. China has nothing to lose if it stops giving loans. China is not selling but loaning to USA. This means China has nothing to lose if it stops giving loans

All those Chinese factories shut down - there is little in the way of markets for the $400 billion

 

[Developereo]

Why does China want to export to USA? China exports $600 billion & imports $200 billion. China is getting treasury bonds in lieu of the $400 billion which just keeps accumulating endlessly over the years. China has a total surplus of $800+ billion a year and it is accumulating to be over $10 trillion over the years.

This means China is giving $400 billion on loans to USA every year. China has nothing to lose if it stops giving loans. China is not selling but loaning to USA. This means China has nothing to lose if it stops giving loans

There's an old joke: when you owe ten thousand to the bank, you have sleepless nights; when you owe ten million, the bank has sleepless nights.

 

[samejjangir]

All those Chinese factories shut down - there is little in the way of markets for the $400 billion

What is China's loss in it? Chinese govt is not converting all the foreign exchange surplus into domestic consumption. Instead it is hoarding the profits as forex reserves in various offshore accounts in addition to its official reserves. Most of the companies & factories are govt owned which means their profits are going to the state. China won't care if its profits is reduced as it is simply hoarding them without having any use.

There's an old joke: when you owe ten thousand to the bank, you have sleepless nights; when you owe ten million, the bank has sleepless nights.

But China is not a bank. It is giving loans to have political control rather than actually expecting a return. It is similar to an extended version of Marshall plan of USA which made USA gain political control of Europe. China already knows that there is no way USA will ever be able to have any goods worthy of being bought to cover the debts. China is still giving out loans because it wants complete industrial control

 

[nahtanbob]

What is China's loss in it? Chinese govt is not converting all the foreign exchange surplus into domestic consumption. Instead it is hoarding the profits as forex reserves in various offshore accounts in addition to its official reserves. Most of the companies & factories are govt owned which means their profits are going to the state. China won't care if its profits is reduced as it is simply hoarding them without having any use.

If the factories are not running China makes no money

 

[Developereo]

But China is not a bank. It is giving loans to have political control rather than actually expecting a return. It is similar to an extended version of Marshall plan of USA which made USA gain political control of Europe. China already knows that there is no way USA will ever be able to have any goods worthy of being bought to cover the debts. China is still giving out loans because it wants complete industrial control

Gold, or a similar physical object with intrinsic value whose quantity is limited by nature, is a tangible asset. Everything else is just a piece of paper whose value can plummet to a fraction.

 

[retaxis]

Only one thing is certain and that is manufacturing jobs are not ever returning to America until America becomes Brazil like demographically.

 

[samejjangir]

If the factories are not running China makes no money

China doesn't need money. It is making excess money which it is not using but instead keeping it as foreign exchange and loaning a part of it to others like Africa, Sri Lanka etc.

China has $800 billion surplus a year. Even if it gets reduced to $300 billion, China will still have surplus. Since Chinese factories are state backed, they don't have a profit targets and will not lay off employees. China will simply accumulate less of the foreign exchange and give out less loans than before. It will be very similar to how Russia handled sanctions. There was no mass layoffs (except for USA based companies like Mcdonalds, Exxon etc) and Russian government diverted its surplus funds to actually increase domestic demand

Gold, or a similar physical object with intrinsic value whose quantity is limited by nature, is a tangible asset. Everything else is just a piece of paper whose value can plummet to a fraction.

Absolutely correct. China is selling physical goods which is made from its natural resources like iron, copper, coal, minerals etc in return for paper dollars. This is not really a profitable scenario as dollar has no real value. Nevertheless, China is still going ahead with it because it wants to dominate global industry and create dependency on China.

 

[nahtanbob]

China doesn't need money. It is making excess money which it is not using but instead keeping it as foreign exchange and loaning a part of it to others like Africa, Sri Lanka etc.

loaning to Sri Lanka ... sure

 

[Mero]

Gold, or a similar physical object with intrinsic value whose quantity is limited by nature, is a tangible asset. Everything else is just a piece of paper whose value can plummet to a fraction.

While deepstaters want bitcoin to reach 100 million dollars per bitcoin and it to be the only global money, bitcoin is another fake thing such as paper money. "Oh... we set bitcoin at 21 million bitcoins to make fake scarcity out of it"

Bitcoin’s Biggest Hack In History: 184.4 Billion Bitcoin from Thin Air​

This was a hard fork, so two different versions of Bitcoin existed in the immediate hours after version 0.3.1 was released. Satoshi monitored the competing blockchains closely and urged miners not to mine the bad chain because doing so would make it take longer for the good chain to become the dominant chain.

Bitcoin’s Biggest Hack In History: 184.4 Billion Bitcoin from Thin Air | HackerNoon

On Aug. 15 2010, an unknown hacker nearly destroyed Bitcoin. The hacker generated 184.467 billion Bitcoin out of thin air in what has become known as the <a href="https://en.bitcoinwiki.org/wiki/Value_overflow_incident" target="_blank">Value Overflow Incident</a>.

hackernoon.com

 

[Developereo]

While deepstaters want bitcoin to reach 100 million dollars per bitcoin and it to be the only global money, bitcoin is another fake thing such as paper money. "Oh... we set bitcoin at 21 million bitcoins to make fake scarcity out of it"

Bitcoin’s Biggest Hack In History: 184.4 Billion Bitcoin from Thin Air​

This was a hard fork, so two different versions of Bitcoin existed in the immediate hours after version 0.3.1 was released. Satoshi monitored the competing blockchains closely and urged miners not to mine the bad chain because doing so would make it take longer for the good chain to become the dominant chain.

Bitcoin’s Biggest Hack In History: 184.4 Billion Bitcoin from Thin Air | HackerNoon

On Aug. 15 2010, an unknown hacker nearly destroyed Bitcoin. The hacker generated 184.467 billion Bitcoin out of thin air in what has become known as the <a href="https://en.bitcoinwiki.org/wiki/Value_overflow_incident" target="_blank">Value Overflow Incident</a>.

hackernoon.com

I understand the technology behind crypto, but I don't know much about the sociology of crypto. I assume the three main adopters are criminals, privacy nuts, and speculators.

Alternative cryptos, such as government backed cryptos and so-called stable-currency cryptos like AUDD, USDD, etc., might become the legally sanctioned crypto for privacy nuts, thereby relegating BTC and such to criminals and speculators only.

It will be interesting how it evolves.

 

[SaadH]

American made goods are 2 to 3 times more expensive than Chinese imports like here in the UK because of wages, unions and labor laws. Americans according to Media are living paycheck to paycheck cannot afford American made goods. If iPhones were made in the USA, they would cost about £5000 . So what do you propose they do Trump? Abolish their labor laws and create a lower working class society where people are forced to work for the same wages in China? These Trump MAGA supporters are absolute buffoons.

Correction, american goods are expensive because executive compensation, stock buy backs and dividend payments are through the roof. Whereas, worker pay hasn't kept up with inflation and haven't increased since the late 70's.

 

[Mero]

Since going off the gold standard, the US has sought to keep a lid on gold and silver prices. A significant rise in gold and silver prices signals a lack of confidence in the dollar.

Gold being the anti-dollar will reflect this devaluation and people feeling this in terms of inflation will flock to gold and drive its value.

Gold Set For $5,000? It's A Matter Of When, Not If

Is the price of gold at $5,000 per ounce a realistic prediction?

www.forbes.com

For decades the US government knew the dollar was strong when gold and silver prices were low. $4 for silver, $300 for gold.

The criminal banksters used their banks to suppress the prices of gold and silver.

JPMorgan to pay $920 million for manipulating precious metals, treasury market​

https://www.reuters.com/article/business/jpmorgan-to-pay-920-million-for-manipulating-precious-metals-treasury-market-idUSKBN26K321/

In 2006-2008, the public that hated Washington became aware that gold and silver investing was the way to defeat the zionists, Jews, freemasons, bankers, wall street crooks and the deep state.

A bank failed over the attempt to suppress the price of gold and silver.

Gold and Silver Industry & Investing News

Get the latest gold and silver industry news and market insights. Stay informed on precious metals prices, trends, and investment strategies.

goldsilver.com

Since the banks failed at keeping a lid on gold and silver and if trends continued, gold and silver would cause questioning the position of the dollar globally, the deep state invented bitcoin, after Bears Sterns collapse to divert gold and silver investing into the free money casino of bitcoin.

4 Reasons to Believe the Deep State (or the NSA) Created Bitcoin

Since 2009, there have been many theories of whom created Bitcoin. Some even think the NSA created it.

www.ccn.com

The populist resistance to defeat Washington crooks and return America to tradition and traditional money of gold and silver failed because it was co-opted with the Sarah Palin Tea Party takeover. It turned into hatred of Obama, not Washington. The resistance turned into a flock of idiots that got herded into voting for Republicans again. This is the role of Musk and Tucker. Trump replaced the Tea Party with MAGA, and the cia run a phony resistance.

 

[MH.Yang]

A lot of people in this thread are forgetting two things.

Firstly, the mainstay of China's economy is state-owned enterprises, and large factories are almost always owned and controlled by the Chinese government. If one of these factories wants to invest and build a factory overseas, it has to get approval from the Chinese government.

Secondly, the biggest cost of most goods is logistics not labour. Factories that are detached from the Chinese industrial chain will have extremely high costs and will not be competitive in the market.

By the way, China's Ministry of Commerce has announced the cancellation of export tax rebates. This means that China is charging an early tariff on exported goods. Doesn't the U.S. government think raising tariffs will solve the problem?OK, let's try it. China has taken the initiative to put a gateway tax up and take the initiative to decouple, so let's see if the US has inflation or China has foreign trade problems.

 

[Hamartia Antidote]

Correction, american goods are expensive because executive compensation, stock buy backs and dividend payments are through the roof. Whereas, worker pay hasn't kept up with inflation and haven't increased since the late 70's.

Executive compensation is usually in the form of stock options so yes it is an expense at the option offering but whether the stock is at $5 one day and then suddenly $50 the next and then back to $5 the day after usually doesn't impact sales revenue and direct salary expenses.