>Nothing much is wrong with having a trade deficit, except there is a lot of your own currency in everyone else's hands.
>so? that just encourages other countries to buy more from the states
It also means foreigners...really its multinational corporations but anyway... it means """foreigners""" therefore weld more power in the United States. Money (power) is concentrated too much into multinational companies hands and its getting out of control.
if my chink coins dont go up trump may as well nuke them since they have invaded california and canada already
The best thing about that trade deficit is it's mostly done by american companies. See Apple, doing all their manufacturing overseas and selling their shit at gold prices in the US.
>tariffs on China will hurt american companies
>retaliatory tariffs on the USA will hurt american companies
win-win for China
>a way to get the US to follow Greece's path without the EU to bail it out.
greece's situation is nothing like the US's. it's a completely different situation
>Money (power) is concentrated too much into multinational companies hands and its getting out of control.
what's getting out of control? what are you imagine other countries are doing with this "power"
russia had more say in US politics than china and they spent pennies in comparison to what china holds
Of course it is different, but the american banks exposed to treasuries and derivatives on treasuries will tank pretty hard if China starts dumping them.
treasury bonds don't work like company stocks. their price sticks pretty close the the coupon rate. china selling them cheaper than that is just hurting themselves
You are really fucking dumb. The massively skewed trade balance helps the U.S. in this case. China can't afford to lose the U.S. market because we account for fully HALF of the world's consumer market. There simply is no other developed country that can buy as many dildos and microwaves that we do. Any retaliation will be short lived because Chinese factories are already being reshored to the U.S. and Mexico (manufacturing costs have octupled for China in the last decade)
Another thing you must understand is the Chinese economy values thoroughput, not productivity. The Communist Party will do everything it can to ensure Chinese people are busy and employed. The government bribes people with jobs so they don't pull a Tiananmen. A full scale trade war is an existential threat to China, but Not the U.S.
The US makes up only 10% of the chinese exports my dude, don't overestimate it.
Also, factories are getting so much reshored to the US that steel prices rose by 50% since the beginning of the trade war, because america has no meaningful production capacity.
this just means Jow Forums should invest in Pennsylvania steel