An Interesting Footnote

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China Gets It

Even if the general US population doesn’t understand what is going on, the leadership in China understands recent US moves. The bottom line is that China needs the US and US markets if it intends to march forward and engulf all of Asia, which are their aims. Asia in fifty years, Africa in fifty years (or simply drained of all mineral wealth) and Russia when they get around to it.
Treasury Secretary Steve Mnuchin spoke about the issue  yesterday on Fox News:
“We are going to proceed with our tariffs. We’re working on that,” Mnuchin told “Fox News Sunday” in an exclusive interview, while acknowledging the U.S. is also trying to reach a trade deal with China in which the country would reduce tariffs and further open its markets. 
“We’re simultaneously having negotiations with the Chinese to see if we can reach an agreement,” he also said. “As the president has said, we want to cut the trade deficit $100 billion over the next year. … I’m cautiously hopeful we reach an agreement, but if not we are proceeding with these tariffs. We are not putting them on hold.”

And that’s how it’s going

  • If China doesn’t leash back its North Korean dog, it there will be a nuclear war on its doorstep. They’re working to bring the Norks to the bargaining table. 
  • If China won’t stop dumping steel and is not capable of dealing with $100 billion in trade deficits next year (meaning it will need to buy more from US markets), they’ll be hit with tariffs and it will hurt them worse.
  • China is on a military build up for hegemony in the Pacific, the US is building 37 more warships with emphasis on submarines that can sink the Chinese fleet.
China played it’s hand early. Now President Trump is responding and their options are far more limited than it might seem – if they want to keep their agenda on schedule.

10 thoughts on “An Interesting Footnote

  1. They're stuck in, and Trump is breaking it off… They can't get out of the Chinese finger with us… LOL

  2. Let us hope Sec/Gen Mattis can kick those in the Navy in charge of shipbuilding to the street. A carrier that can't launch planes?

    This isn't a new Navy problem. Even those of us who walked to work know about the pre and early WWII torpedo blunders.

    Submarines? You bet. One question. Do they leave a thermal plume that can be detected from space or surveillance aircraft?

  3. No thermal plume. Essentially nothing more than a hole in the water that moves around. I know the classified side of that so must not say more. Very difficult to detect.

  4. I don't know that steel and aluminum tariffs are the right tool, but for the crowd screaming "trade war! trade war!" – we're in one now.

    We charge 2.5% import duty on Chinese cars and they charge 25% on American cars – and that's not a trade war? If an American car company wants to open a factory in China, they insist on 50% ownership of the American company's factory – and that's not a trade war? They're involved in around half of new venture capital funding for high tech companies in the US, so they can import the newest, best technology into China, skirting ITAR/EAR regulations – that's not a trade war?

    The Chinese know good and well that they've been pushing us around since the '80s. They don't want to lose that advantage – who would?

  5. But LL, why think about China when Andrew "I'm not a degenerate" Cooper has STORMY to interview?

  6. Yes, there is that.

    The steel roof on the house in AZ will be costing me more because of the steel tariff. I'm not upset. I just have to pony up a few thousand more on a $30K roof.

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