Trade Wars

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
 
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.
 
thrashed_0.jpg
 
alor said:
‘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
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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.
 
alor said:
^
there is no long run, when the goods stop...it stops
the dollar gold convertibility had been a temporary measure since 1971
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If it will stop eventually, better to stop now?

This is what most people do not understand. Why wait? :)
 
sgbuyer said:
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.
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Because artificially inflating the price of consumer goods destroys wealth.

sgbuyer said:
With the sharing economy, people may even just share and reuse stuff. This will contribute more to the environment than any recycling effort.
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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.
 
sgbuyer said:
I don’t see what’s the big hooha on the 25% tariffs.
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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.
 
mmm....shiney! said:
^ 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#
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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.
 
mmm....shiney! said:
^ it doesn’t work that way. Tariffs have a genuine destructive effect upon wealth.
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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.
 
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leo25 said:
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.
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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
 
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mmm....shiney! said:
Sorry mate, I don’t follow, you were talking about how it’s not such a big deal.
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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.
 
leo25 said:
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.
Click to expand...

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.
 
sgbuyer said:
Tariffs in itself is not a big deal because spendings will adjust and supply chain will be realigned.
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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"?

sgbuyer said:
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.
Click to expand...

I agree with you there.
 
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