Trade Wars

Discussion in 'Markets & Economies' started by JulieW, Mar 23, 2018.

  1. alor

    alor Well-Known Member Silver Stacker

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    Loonie Slides As Canadian Officials Reportedly Doubt NAFTA Deal Will Get Done
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  2. alor

    alor Well-Known Member Silver Stacker

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    Turkey & Qatar are being punished for refusing to do Washington’s bidding on Iran https://on.rt.com/9dga
     
  3. alor

    alor Well-Known Member Silver Stacker

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    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.
     
  4. alor

    alor Well-Known Member Silver Stacker

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  5. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    Australian peso YTD would slide in between Russia and India.
     
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  6. alor

    alor Well-Known Member Silver Stacker

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    China says it will levy retaliatory tariffs on September 24, simultaneously with Washington

    https://on.rt.com/9ehp
     
  7. alor

    alor Well-Known Member Silver Stacker

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    ‘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
     
  8. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    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.
     
  9. alor

    alor Well-Known Member Silver Stacker

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    ^
    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
     
  10. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    If it will stop eventually, better to stop now?

    This is what most people do not understand. Why wait? :)
     
  11. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    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.
     
  12. leo25

    leo25 Well-Known Member Silver Stacker

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    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.
     
  13. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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  14. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    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.
     
  15. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    Sorry mate, I don’t follow, you were talking about how it’s not such a big deal.
     
  16. leo25

    leo25 Well-Known Member Silver Stacker

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    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.
     
    Last edited: Sep 23, 2018
  17. alor

    alor Well-Known Member Silver Stacker

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    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
     
    Last edited: Sep 23, 2018
  18. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    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.
     
  19. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    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.
     
  20. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    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.
     

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