China’s Xi Jinping Plays Trade War

Posted April 4th, 2018 by Iron Mike

If you were basking these past two decades in the bliss of Globalism and World Peace,  – you should now realize that not all the ‘players’ are peaceful,  – and some are quite ruthless.

China has been growing militarily for these past two decades,  – financed on the incredibly naïve Americans who were willing to live with a huge trade imbalance.   Then along came President Trump,  – who actually understands finances and what makes up any nation’s national power,  – and he didn’t want us to become vassals of the Chinese,  – not in our lifetimes!

So the gloves are off!  China retaliates for Trump’s trade tariffs on steel and aluminum with their own tariffs on grains, pork, wine and soybeans – all stuff grown in Trump-friendly states.

The Chinese have studied us – done their homework – and think they know all our weaknesses.  It’s how they’ve won wars since the ancient days of Sun-Tsu.

But President Xi Jinping may be miscalculating both his own economic staying power,  and ours.

He needs massive agricultural imports simply to feed his people in the manner they’ve become accustomed to.   China doesn’t grow enough food for their own people.

So slapping tariffs on American food imports may rattle our stock market,  – but it will be felt quicker in the wallets and bellies of his 1,300,000,000 people – who can’t eat their iPhones.

It may even drop the price of food here for awhile,  as US farmers send their cows and pigs to market.

A so-called “trade war” between economic giants – like the US and China,  – hasn’t happened in recent times, – and in the age of instant satellite intelligence – it’s really an unknown animal.  

But with millions of Chinese employed in factories making goods for export,…this tit-for-tat tariff war could cause real political unrest in China’s industrial cities.

For you youngsters,  the LAST big trade war we were in involved the expanding Japanese Empire in the 1930s.  FDR slapped some export restrictions of goods going to Japan,  – stuff the Japs needed badly.

In desperation – rather than give up their expansionism in Manchuria and China,  – they decided on a plan to ‘neutralist’ the US Navy in the Pacific.  Their plan failed – miserably!

Like the Japs in the 1930s and 1940s , – the Chinese today lack enough oil to keep their machinery running – much less conduct a real shooting war.   They are dependent on imports,  which explains their interest in Southeast Asia, Persia, and Western Africa.

Once again,  there is the US Navy – standing in their way.

It’s time for Americans – particularly our business and manufacturing leaders,  – to understand that cheap Chinese labor and cheap Chinese-made goods come with a price-tag they may not be willing to pay.

It’s time to Make America Great Again!

China’s new modern navy was built on their (lop-sided) trade imbalance with the US. YOU paid for this new navy – even as our navy was rusting under Obama.

In all likelihood, President Xi’s attempt to bluff us with a ‘Trade War’ – is just that – a bluff.

He cannot afford to disturb his delicately balanced economy right now,  – cannot afford civil unrest,  – or a hungry army.  He has longer-term goals in mind.

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6 Responses to “China’s Xi Jinping Plays Trade War”

  1. Sherox

    The biggest problem with the stock market today is that in old times, people would look at the long term growth. Now, all they want is returns every single quarter, which has caused a lot of problems including so much going overseas and the explosion of HB1 visas. People must learn to look beyond their noses to their kids’ noses time frame so that we can actually rebuild our country.

  2. Hawk1776

    Program trading has a great deal to do with market volatility. Larry Kudlow’s comments on Fox Business fortunately had a calming affect on the markets.

  3. Kojack

    “China’s new modern navy was built on their (lop-sided) trade imbalance with the US.”

    The problem is that both individuals and companies put the bottom line ahead of loyalty to their country. I see it all too often at work. There are a lot of foreigners here on H1B visas and they buy cheaper Chinese made knock-offs from Staples vs better American made products.

    The VARI-DESK, which allows people to use their computers while they’re standing up, is a good example. The difference in cost is only about $10-$15. I have pointed this out at my company to no avail. It is extremely frustrating, especially with what is at stake.

    BTW the company tried to have some of our products manufactured in China about 10 years ago(way before I got there) but halted ops when the chi-coms demanded that proprietary technology be handed over.

  4. Catherine

    On another theme from the earlier comments, with the solar hibernation we are currently going into (see the work of Professor Valentina Zharkova) we will see decreased crop yields due to late frosts, early frosts and unseasonable snow. Europe has already had several years of moderate to severe crop losses (France lost a large portion of their vineyards a couple of winters ago – not crucial, but high-emotion for them.) Central Europe – the breadbasket – is still under multiple FEET of snow when they should be planting grain crops. Imposing tariffs on our grains will just make it that much harder for Xi. There won’t be cheap European foodstuffs available as replacements.

  5. Panther 6

    Interesting analysis and comments. I am far from an expert on the Market but for sure much of its volatility is caused by the need for short term gain – at least in the midget minds of the big traders.

    As for China our Navy as the bulwark has a lot of problems right now and they are not covering themselves with glory like at Midway in 42. China may not now have the oil needed to fight a Pacific battle but don’t sell them short.

  6. Jim Buba

    China will initiate conflict when contracts are not honored or reversed by some. This in fact is what brought us Pearl Harbor in 1941.

    There is also a big difference in having the biggest gun or fastest ship and knowing how to shoot it or sail it. In the vacuum caused by new strife, Russia is more likely to emerge at the top of the heap.

    10-year plan being what it is in its 14th year.