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Trump's Tariff's - Updates

Here is the unspoken problem with trade deficits. With the US dealing with an excessively large trade deficit with virtually all developed and emerging economies. It has created not just a trade deficit but a domestic budget deficit.
If the US does not reengage in manufacturing of goods and services for export. Our debt will continue to expand until it is untenable and our economy will at a minimum slip into a recession. Or worse full blown depression.

It does not matter if it is a business or a government. When the debt load exceeds the justified carrying cost. Then that entity will see a massive correction.
With that correction the ability to purchase goods and services with collapse as well.


As a non American you don’t like US tariffs? Ok then how will you feel when the purchasing power of the US economy is no longer purchasing your exports.
Or the exports of other nations you have economic ties with. And they too are no longer able to purchase your exports.
 
OReid said:
Here is the unspoken problem with trade deficits. With the US dealing with an excessively large trade deficit with virtually all developed and emerging economies. It has created not just a trade deficit but a domestic budget deficit.
If the US does not reengage in manufacturing of goods and services for export. Our debt will continue to expand until it is untenable and our economy will at a minimum slip into a recession. Or worse full blown depression.

It does not matter if it is a business or a government. When the debt load exceeds the justified carrying cost. Then that entity will see a massive correction.
With that correction the ability to purchase goods and services with collapse as well.


As a non American you don’t like US tariffs? Ok then how will you feel when the purchasing power of the US economy is no longer purchasing your exports.
Or the exports of other nations you have economic ties with. And they too are no longer able to purchase your exports.
Click to expand...
Trade deficits aren't necessarily problems that can be solved.
Think of it this way:
Country A is a poor, underdeveloped country. They have little purchasing power. They need food & natural resources. They produce say textiles.
Are they in a position to buy as much from the U.S. as the U.S. buys from them?

Their goods are going to be cheaper and easier for the U.S. to purchase with its extremely high purchasing power, but they won't be able to buy the same value of goods back from the U.S.
This applies to every country but to a varying degree since the U.S. is undoubtedly the economic powerhouse of the world.
 
7gtz said:
Trade deficits aren't necessarily problems that can be solved.
Think of it this way:
Country A is a poor, underdeveloped country. They have little purchasing power. They need food & natural resources. They produce say textiles.
Are they in a position to buy as much from the U.S. as the U.S. buys from them?

Their goods are going to be cheaper and easier for the U.S. to purchase with its extremely high purchasing power, but they won't be able to buy the same value of goods back from the U.S.
This applies to every country but to a varying degree since the U.S. is undoubtedly the economic powerhouse of the world.
Click to expand...
I don't think the EU or Asia (china) are poor underdeveloped countries. IMO
 
7gtz said:
Trade deficits aren't necessarily problems that can be solved.
Think of it this way:
Country A is a poor, underdeveloped country. They have little purchasing power. They need food & natural resources. They produce say textiles.
Are they in a position to buy as much from the U.S. as the U.S. buys from them?

Their goods are going to be cheaper and easier for the U.S. to purchase with its extremely high purchasing power, but they won't be able to buy the same value of goods back from the U.S.
This applies to every country but to a varying degree since the U.S. is undoubtedly the economic powerhouse of the world.
Click to expand...
It’s true trade deficits can never be fully eliminated. That is not the proposition here.
However if trade deficits are so imbalanced that it is placing an undue burden on another’s economy that it threatens it. Then there needs to be some kind of correction. Just as it’s argued how devastating it was when colonial powers sucked the resources out of their colonies. While providing very little economic return to the indigenous people who lived in the colonies.

One very loosely used argument goes as such. Nations who are supporting an excessive trade imbalance are in reality allowing their own debt, public and private, be used to economically support the economics and government institutions of nations who are the beneficiaries of this trade imbalance.

Again this is not an either or, winners vs loser issue. The US is always going to carry a neg trade balance with many nations. Simply because our economy is so large. The expectation is not some perfect parity. But cooperation in diversifying the flow of goods and service in both directions. That magical economic term equilibrium is the goal, not parity.
 
Trump has destroyed the credibility of this extraordinarily important source of information.

When Trump doesn’t like the message, he shoots the messenger and replaces the messenger with someone who will come up with messages that he approves. So we’re left without credible sources of information about what is really occurring.
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Wasn't sure where to put this. Figured here better than anywhere else. Also its his tarrifs that are causing the real/true numbers he just doesn’t like.
 
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