Loonie Slides As Canadian Officials Reportedly Doubt NAFTA Deal Will Get Done https://www.zerohedge.com/news/2018...als-reportedly-doubt-nafta-deal-will-get-done Rupiah Plunges To 1998 Asian Financial Crisis Low Amid Emerging Market Liquidation https://www.zerohedge.com/news/2018...l-crisis-low-amid-emerging-market-liquidation BOJ Bond Buying Tweak Sparks Fears Of Imminent Tapering https://www.zerohedge.com/news/2018-08-31/boj-bond-buying-tweak-sparks-fears-imminent-tapering US Futures, Global Markets Slide Amid Emerging Market Bloodbath https://www.zerohedge.com/news/2018...-markets-slide-amid-emerging-market-bloodbath Which Emerging Markets Will Run Out Of Money First: Here Is The Answer https://www.zerohedge.com/news/2018...-markets-will-run-out-money-first-here-answer
Turkey & Qatar are being punished for refusing to do Washington’s bidding on Iran https://on.rt.com/9dga
https://consortiumnews.com/2018/08/29/back-in-the-great-game-the-revenge-of-eurasian-land-powers/ Back in the (Great) Game: The Revenge of Eurasian Land Powers The Belt and Road Initiative (BRI) has not even begun; according to the official Beijing timetable, we’re still in the planning phase. Implementation starts next year. The horizon is 2039. This is China playing a long-distance game of go on steroids, incrementally making the best strategic decisions (allowing for margins of error, of course) to render the opponent powerless as he does not even realize he is under attack. The New Silk Roads were launched by Xi Jinping five years ago, in Astana (the Silk Road Economic Belt) and Jakarta (the Maritime Silk Road). It took Washington almost half a decade to come up with a response. And that amounts to an avalanche of sanctions and tariffs. Not good enough. Russia for its part was forced to publicly announce a show of mesmerizing weaponryto dissuade the proverbial War Party adventurers probably for good – while heralding Moscow’s role as co-driver of a brand new game.
China says it will levy retaliatory tariffs on September 24, simultaneously with Washington https://on.rt.com/9ehp
‘We have far more bullets’: Trump threatens China with more tariffs if Beijing dares to retaliate https://on.rt.com/9eta ‘Remedy the mistake or bear the consequences’: China hits back at US over sanctions on military https://on.rt.com/9eql
I don’t see what’s the big hooha on the 25% tariffs. Tariffs may temporarily increase prices but in the long run, consumers will adjust their spending habits. Instead of getting a 60 inch tv, they will get a 50 inch. With the sharing economy, people may even just share and reuse stuff. This will contribute more to the environment than any recycling effort.
^ there is no long run, when the goods stop...it stops the dollar gold convertibility had been a temporary measure since 1971 Russia’s largest energy companies preparing to substitute petrodollar in settlements https://www.rt.com/business/439135-russia-oil-companies-dollar/ world largest oil producer not taking dollar, wow Belt n Road full steam ahead
If it will stop eventually, better to stop now? This is what most people do not understand. Why wait?
Because artificially inflating the price of consumer goods destroys wealth. No. What happens is that in a business environment where prices are artificially set ie divorced from market reality, manufacturers and suppliers divert funds and effort toward the production of goods that have an economic advantage under the artifice pricing structure. This generally leads to increased waste.
Just the media being all doom and gloom. If china reduces the market price by 25% then America increase by 25% then the net change from original market price is 0%. For some reason most people struggle understanding this.
^ it doesn’t work that way. Tariffs have a genuine destructive effect upon wealth. Take Obama’s tyre tariff as an example: http://www.latimes.com/business/la-fi-tariffs-trade-analysis-20160724-snap-story.html#
How about total stoppage of trade then? Looking at the South China Sea, the conflicts over Iran and Crimea, it's obvious where we are getting to. The possibility that goods will stop flowing as Alor has suggested is not low. Geopolitical risks has been the highest since the 1930s as Ray Dalios has suggested.
All government meddling has a destructive effect, but my issue is that everyone seems to only have an issue with Trumps tariffs. All I'm saying is it's no worse then any other government meddling. So China artificially reducing the price of an item is equally as bad, as it redirects/waste resources to things people don't really want.
its just like apple phone, Chinese only value add to the product, buy why need to pay 25% of the final product price??? they must as well dumped the half finished apples into the south china lake its real funny, now when China purchased the Su 34 and S 400, they received the US sanction... what is this got to do with the US Crimea is Russia, the people there voted with their own free will ... why the US has any right of say at all, its none of their business http://www.atimes.com/article/here-comes-the-30-year-trade-war// Here comes the 30-year trade war
Tariffs in itself is not a big deal because spendings will adjust and supply chain will be realigned. The geopolitical threat is even greater than tariffs because it will completely disrupt trade, which will destroy wealth even more than tariffs. You don't want to depend on a single source of goods in the event of a geopolitical event.
Yep. But but that doesn't let Trump off the hook. He's a moron to believe in the trade deficit fallacy, he has enough advisors around him who would be counselling against it, he is only doing it to curry favour with voters who also happen to believe in the trade deficit fallacy.
Tariffs are a big deal even if they don't lead to geopolitical conflict. The only way that spending adjusts when tariffs are imposed is that consumer wealth is destroyed as they either have to pay higher prices or forgo satisfying their needs and wants. Either outcome is not good. What do you mean by the "supply chain will be realigned"? I agree with you there.