Trade war Trump style

It would make overseas investment in the United States less attractive and therefore probably lower the trade deficit because the current account+capital account have to add up to roughly zero in the long run. If he really wants to lower the trade deficit he should repeal Dodd-Frank and let Americans get mortgages in zoned coastal cities; that would lower capital inflows without reducing productive investment

Yes yes! Good Yankee goyim, destroy your relationships with your most important allies and drive them away. They will pursue independent foreign policies and no longer take orders from you, and seek closer relations with China and Russia!
Yes, yes! America first means destroying America's reputation and credibility as a partner and global leader! We don't need influence or power or money! Trump is BEST GOY!

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BASED
The really disgusting thing is the way May has cucked on Brexit, and cucked and agreed with Merkel over this.

why would you care more about having us as your slaves, rather than the well being of american workers?

>eurocrats face when
Nothing better then an external enemy to promote unity.

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What does Trump have against the trade deficit anyway? It's great for him. Reduces the borrowing cost on the massive deficit he decided to run, we get lots of free stuff in the short term, and by the time there are any consequences he and most of his voters will be dead

i think you posted the wrong pic

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Can't wait until Trump fucks EU and everyone starts jumping ship when he gives all the trade deals to the UK.

>Thinking short term
That is exactly what hes not doing
Trump is the first President thinking of the generations to come after him.

He's willing to take the pain now to save us later.

>implying
Bismarck knew German unification was deeply threatening to the other great powers; that's why he wanted to everything possible to soothe them. He even wanted to give up Lorraine to make France less inevitable opposed to German interests

don't think so
Americans always had a good tradition in steel manufacturing
i'm betting they will be able to meet internal demand in little time

Attacking German industry ain't going to do shit for our workers. It will only serve to damage our relations with Germany, which is one of our most important allies and base for force protection. And by proxy by losing influence over Germany, EU's largest economy, we will lose influence over the rest of Europe.
Our steel and aluminum industries are beyond saving, we should try and rehabiliate those workers to enter the new and emerging industries, like tech, as opposed to wasting our time rattling sabers with our best allies.
And trade deficits are NOT inherently a bad thing.
Because Trump has a room temperature IQ understanding of a trade deficit. He seems to think it means that those countries LITERALLY owe us money, and that America is "losing" money by having a deficit. This is literally what a middle school educated 40 year old man on unemployment thinks what a deficit is.
All it means is that America is crazy rich enough to buy tons of shit from other countries, and we buy more from them than they from us.

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that is after Germany was unified
Before that, he knew that for Germany to unite, a common enemy (France) was necessary

>we should try and rehabiliate those workers to enter the new and emerging industries, like tech
empty phrases. In reality, you and people of your political ideology don't care about the working class and their problems. You had your chance to fix their problems, but now it is too late, and they elected somebody who puts them first

I wonder if his reincarnation will ever come out of the shadows in Brussels or if he will not revel himself.

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It's really about the balance between domestic savings and investment. It's not free stuff we get for being so rich but the price foreigners (in the aggregate) need to pay to purchase a stake in future US production. Part of it is because American investors tend to get a better return on overseas investments than foreign investors get on their investments in the US but part of it just that Americans don't save as much as they should. Though, ironically, since the biggest reason there's a difference in returns is that such a large of share of the US capital account surplus is foreign purchase of US Treasures, Trump has done a lot to increase the trade deficit than to decrease it

He's fucking the UK too you delusional English teacher.

*Treasuries

>What does Trump have against the trade deficit anyway?

He is very influenced by Peter Navarro who claims that trade deficit boosts deindustrialisation of the USA and America would experience “conquest by purchase” if trade deficits aren’t addressed and foreign investors keep buying up chunks of the US economy.

>we should try and rehabiliate those workers to enter the new and emerging industries

Sounds lie social security and free education, fugging gommies.

well, isnt he right? if you buy more than you sell, you gonna run out of money eventually

Both EU and NATO parasite on Polish money, even Trump admitted it: youtube.com/watch?v=HKZqltfCw3s

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poor poland should leave NATO and EU, to stop the parasites

Economists are like rabbis: one rabbi would say "right", the other rabbi would say "wrong".

I'm a 20-something year old so don't blame me for what happened to the workers.
In reality, foreign competition is not the main factor for industry decline, mechanization is the real long term threat. The people who welded steel in the past just have obsolete skills now. The best thing we can do for them is help them move onto new industries that actually HAVE a future. Putting coal and steel and aluminum on life support will not help. Gov can provide vocational training for new jobs is probably the best option.
I really doubt that a man like Trump could possibly understand that kind of nuance.
Fact of the matter is he is just generally angry at all foreigners for perceived wrongs against us. I mean, even with a country we have a surplus with, Canada, he straight up lied, probably to himself too, that "if you include x and y" we actually DO have a deficit. He just makes up BS to justify his old man anger.
SEUL LE SOCIALISM PEUT SAUVER LES ETATS UNIS
AUX ARMES, CITOYENS!
美利坚人民共和国万岁!
#FeelTheBern2020

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That's where currency comes in.
Foreighn countries are accepting pieces of paper in exchange of goods.
Pieces of paper the US can print at will.
The US is never running out of money in a literal sense.
As foreighners have no issue holding on to those dollars this props thei currency up further.
Now if other countries decided the dollar was no good, they'd have problems.

You are not personally responsible for what happened to American workers, but the ideological party which you follow is
They once served the working class, but now they only care about feminism, minorities and college students. They outsource factory work to other countries, because it is cheaper, and then they blame the working class people,
But now it is too late, since those neglected people elected Trump, who promised to bring back their jobs

but the more pieces of paper the government prints, the poorer american people become, since their pieces of paper lose value

lol he really doesn't like merkel

>But now it is too late
nope
history never ends

They would have real problems if market finally concluded that the dollar is worth shit. That's why Trump tries to reindustrialize the USA and liquidate trade balance, so it wouldn't happen.

That only happens if the papers stay in the american economy.
As we already established, those pieces of paper are leaving the country.
If they all came back at once it would be a problem, but it would be as much of a lroblem for the foreighners who hold them now.

but the foreigners with lots of american papers can no buy real estate in america. That means that housing and all other form of capital will become really expensive in america, making americans poorer

The US isn't going to default on the national debt which is where most of the capital account surplus ends up. Since interest rates on Treasures are so low the costs are not likely to be large but they are real. Though they are not born by "America" but by specific Americans who would have invested in the US economy instead of foreigners, and the current account surplus also causes faster growth which benefits them indirectly
They use the dollars to buy assets, not to hold in a safe deposit box. Mostly this is federal debt and housing, specifically housing in cities where construction is illegal and prices are already high (New York, San Fransisco). If we changed the laws and let builders build foreigners will have overpaid for those houses by 3x or 4x and the trade deficit really will be free stuff we tricked you into giving us

how will you build if there is no room anymore?

There's plenty of room. There are places within sight of Metro-North stations where it's illegal to build an apartment and within the Five Boroughs where you can only build detached housing. The Bay Area is even worse

ok then why dont you change the law?

The people who live there like that they get to keep newcomers out and raise their property values at the same time

Go back to krautchan

Same reason london is full of two storey houses while it's the most fucking expensive place in the UK.
Owners lobbying.

so house owners and foreigners benefit, while everybody else becomes poorer

Yes how is that new have you never read any article about your bigger cities?
It’s like this all over the western world. Over here they give 0.6% interest loans so people can buy houses and rent them to expats

N*MBYS

In the sense that they have to live in Texas instead of New York. But it would have been like that whether we had a trade deficit or not

The point is that the locals become poorer because of foreign money investment. Which is an argument why trade deficit is bad

Anything that alienates Germany from the US is good. The end of Atlanticism will be the salvation of Europe.

It has nothing to do with a trade deficit.
If anything the fact that the richest country on earth (USA) has such a deficit shows us that in the end it’s apparently not that big of a deal. Americans whine a lot but they are rich as hell.

They become richer - in the short term, the stuff we get to consume without working for. In the long run, either from all the investment that wouldn't otherwise have been made, or when we reduce the value of the overpriced real estate you bought

some of them (capital owners) are rich as hell, while others (people who depend on paycheck) become poorer and poorer

MAYBE START PRODUCING THINGS WORTH BUYING, YOU FAT ENTITLED RETARDS

The housing market is the result of urbanization, globalisation and corrupt city governments that ‘didn’t want to further destabilize the markets’ during the crisis despite cities like NYC, SF but also Amsterdam and London already recovered within 1 year

Many Americans are home owners and they earn heaps of money for jobs that are low tier over here.

>Trump is the first President thinking of the generations to come after him.

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but you wont reduce the value of real estate, because home owners will lobby against it
i also dont understand how investment will make them richer

Yeah at double the price. If Americans we capable of producing steel competitively they would already be doing it.

but they own homes in areas where real estate value is very low. A working class american can hardly afford to buy real estate in big cities

I don’t understand what his problem even is. Europe is growing and the USA is doing good yet he pretends there’s a big problem.
Historically home ownership in cities has already been low to begin with

Yes, is that why he backtracked on China and said he might bring back the transpacific agreement he eliminated?

Very thoughtful and non-impulsive indeed

All part of his 30d chess strat.
Just like when he was going to ban European steel but then didn’t.

Most Americans aren't homeowners in the places that are actually affected by any of this stuff though.
If a foreigner builds a supermarket in the United States and because of the new buildings the price of groceries goes down 10%, it's Americans whose purchasing power increases

Apologies, I may never understand the art of his dealmaking

Brilliant. How refreshing is it to finally have a president who is not afraid to say AMERICA FIRST

but the problem of americans is that their dollar becomes less and less valuable. How will a place that allows them to spend even more money help with that?

When did Americans actually own appartments in New York though?
I doubt cities has ever seen high % of home ownership.

Dollar's plenty strong though? Inflation is lower than it's supposed to be; by definition USD is not losing purchasing power even as much as it should be
In the city itself it's not common but prices have increased greatly in the suburban areas too and homeownership is very common there

The dollar actually even had a bump recently, most of the world's currencies dropped a bit. The 2008 was created and triggered in the US, but even then they received the world's money from every single frightened investor because that's what everybody does in times of world crisis; pour their money on the US.
Unless half their carrier fleet sinks and some other country revs up their power projection, the dollar is going to stay.

>The 2008 was
2008 crisis*

but we both agree that spending more than you earn will have an effect on inflation sooner or later?

ok, so you are saying people have trust in dollar because USA rules the waves?

Why would that cause the Fed to print more dollars? The question is if it would lower real living standards

Most currencies need something to back them up and build trust. Most countries use Dollars nowadays, used to use precious metals, and crypto guarantees a limited supply outlined on a whitepaper. Americans back their currency with carriers, modern days big sticks.
If the expectation was that the US is going down, the demand for dollars would be nonexistent, and value comes from supply and demand, and given those expectations the dollar would be worthless. Given recent developments, it isn't.

There are more reasons than just military power that for why global investors generally view the US to be the safest place to protect your assests if the entire world is experiencing an economic crisis, but yeah, that’s certainly a major one.

so, for example, if russia managed to nuke the entire carrier fleet, would US economy collapse overnight?

The idea was that USA can operate at trade deficit by simply printing more money

>so, for example, if russia managed to nuke the entire carrier fleet, would US economy collapse overnight?

Yes in a sense because if Russia nuked the entire US carrier fleet the US economy will no longer exist due to every person in the world being dead from the Russians triggering MAD.

from a game theory perspective, what sense would it make for US to nuke Russia? The fleet is already gone, destroying Russia and getting destroyed in retaliation won't bring it back

>would US economy collapse overnight?
Probably. There's a reason the US invests heavily on defense. Besides, the cold war might be over, but both sides have always kept watch anyways. If Russia nukes the US, the US nukes Russia, so why would the Russians do it? Washington knows this, they want to make sure that they have a dead man switch.
The thing is, investors buy American bonds with their hard earned money, and everyone agrees that dollars are a good currency that most countries' currencies can easily convert to, and the American banking system is okay with taking the world's money. And the US ALWAYS pays back those bonds because they can print money out of thin air. So as long as the US endures, their printers will keep on shitting money. Care to guess why they are by far the biggest spenders on defense? The American government, the American people, and every country and person with tight connections with the Dollar, be it 90% of the world central banks or private investors have an interest in the US being there and printing money.

The current account ("trade") deficit is the mirror image of the capital account surplus. The overall balance of payments is not negative so there is no need to print money

doubt Germans steelworkers get half the pay Americans do

It would make Russia reconsider attacking in the first place. Launching nukes is guaranteed destruction. Sure, they'd take down the US, but what are they going to do after that? Party for the 10 minutes it takes American nukes to reach Russia? The uncertainty of not nuking eachother is better than the 100% unavoidable death of doing so.

Oh hai smart one
Where does the Euro leave the German taxpayer when PIGS default

^This. European labor is the world's most expensive.

Major Steel & Aluminium suppliers to the US:
Brazil and Canada, with the EU, Mexico and Argentina way behind.
Countries that are going to be included on the exemption:
Brazil, Canada, EU, Mexico and Argentina

>Our steel and aluminum industries are beyond saving, we should try and rehabiliate those workers to enter the new and emerging industries

I know, I know. I've heard it all before. We don't need to produce anything except marijuana and porn websites.

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The excemption is coming to an end.
Hence Merkel shitting her adult nappies.

You are in the same boat as we are, stupid bong

The USD is backed up by the existential stability of the US, it isn’t just one thing like carriers that gives the USD strength.

It’s a combination of military, control of oil, the general value of US land, highely skilled American workface, high levels of T&D, a population of 330 million people, Silicon Valley, powerful diplomacy, and it’s openness to allowing anyone in the world to live and invest there that give value to the Dollar.

China is the only other country in the world that remotely approaches a similar perception as the US in ability to weather problems in a global crisis, but they are extremely xenophobic and don’t allow non-Chinese to invest there.

We defeated Hitler and put a guy on the Moon, I'm pretty sure we can make a steel girder for a building.

>China is the only other country in the world that remotely approaches a similar perception as the US in ability to weather problems in a global crisis

China for its entire history has always been a barely-contained volcano that erupts into periodic civil wars that kill millions.

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>decrease America's standing and influence in the world
>America First

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Only because traitor May is a traitor cuck.
DJT's second country is the UK, I'm pretty sure he's even a citizen. And he hates the (((EU))) worse than our Nige does.