Posted on 07/13/2018 9:05:22 AM PDT by 11th_VA
President Donald Trump is beating China in a trade war that could soon escalate, CNBC’s Jim Cramer said on Friday.
“I think we're winning," the "Mad Money" host argued. "The market is saying we're winning.”
On Tuesday, the White House released a list of 10 percent tariffs on $200 billion in Chinese goods, following through on Trump’s threat of additional punitive measures.
Tariffs of that magnitude, which now undergo a two-month review, would basically equal all the goods the U.S. imports from China, which promised retaliatory action and pledged to lodge a complaint with the World Trade Organization.
Cramer said in a “Squawk on the Street” interview he disputes the argument that there are no winners in a trade war. “That's completely false."
Look no further than the stock market for confirmation that the U.S. is getting the best of China on trade, he said.
The S&P 500 on Friday hit a four-month high after rallying nearly 1 percent in the prior session. The strong Thursday also saw the Nasdaq close at a record high. The S&P 500, Nasdaq and the Dow Jones Industrial Average were also tracking for their second straight week of gains.
The market’s resilience follows the U.S. and China just a week ago exchanging $34 billion worth of tariffs, in addition to the steel and aluminum duties that were already in effect.
“The intellectual property theft is not to be trifled with,” Cramer said, referring to the Chinese practice of forcing American companies to enter into joint ventures and share their technology in order to do business in the world’s second-largest economy.
(Excerpt) Read more at cnbc.com ...
Thank you President Trump for understanding the fundamental strategy for effective negotiation. When the other guy has more to lose than you, press the advantage until the other guy gives in. China has reaped fortunes of the trade imbalance against the US while imposing gangster-like restrictions for US companies. Now we use that advantage against them.
Can you imagine, President Trump knows what he is doing. News at eleven.
Trump is fixing the trade problem that nobody in Congress or other candidates would even acknowledge existed.
Trump looked at the trade balance and said ok so they match my tariffs - the volumes are so one sided we can accept that with minimal impact...they can only do so for a time... and then they’ll have to come to the table for real.
Mark my words: The combination of income to the Treasury(already up 9%) from economic activity, repatriation and tariffs will result in a surplus this year.
It’s not won yet. These are just the opening skirmishes. And China isn’t the only front in the trade war.
Duly marked.
The art of the deal is knowing the value of what you have vs what they have, what you want vs what they want, and where the pain points are. Trump knows these things, Obama did not give the US any value. Trump makes great deals on behalf of the US, Obama gave away the store to sh*thole nations like Iran.
How could we possibly lose such a trade war, if we were willing to stick with the fight? We have roughly a $500 billion/year trade deficit with China, largely because we have been unwilling to insist upon a level playing field and the protection of intellectual property. IOW, the Chinese have a LOT more to lose than us.
FWIW, it would be easy for us to win such a war - because anything that we gained would put us in a better position than when such “hostilities” began. If, for example, we can come to an agreement that reduces our deficit to a still huge $400 billion/year, we will have gained $100/billion/year for our economy (plus the 2nd, 3rd, etc. order benefits as that money was spent in our economy, producing more jobs, etc.). Even that paltry result of reducing the deficit by only 20% would be a massive win for us.
Cramer’s a reasonably smart guy...but here he is Captain Obvious.
I hope that is the case. My Nvidia stock would have been at $300 or more by now. Every time the stock starts going up there was trade war stories that brought it back down since March. Nvidia will report earnings in August. I hope no trade war talk is going on to interrupt the big jump it should do.
I had to look up what Nvidia Shield Pro was. I just use my Roku box or Plex from my pc that I can view my shows or photos etc on my tv.
Be careful. The Republicans are trying to sabotage it. Some of the people affected by the tariffs in the short term may threaten to vote Democrat which could lead the Republicans to join with Democrats to pass a bill to give trade authority to Congress.
IOW, Cramer is going to be fired by CNBC, and soon. Thanks 11th_VA.
Good possibility. MSM has a tendency to get rid of its people when they don't conform to the leftist line.
I don't watch Cramer that often, but from what I've seen of him as a financial guru, he's more style than substance.
“I don’t watch Cramer that often, but from what I’ve seen of him as a financial guru, he’s more style than substance.”
Cramer is a blatant shill for the major companies. You’d be better off doing the exact opposite of what he advises. The largest part of his job is making sure big investors can offload their dogs to a gullible public.
“The art of the deal is knowing the value of what you have vs what they have, what you want vs what they want, and where the pain points are.”
Agreed. Seems to me that Cramer is right about this.
China can’t cobble together any other combination of nations that can supply their import needs for American Soybeans.
We’re the ONLY place they can get what they need in Soy.
So what do they retaliate with?
They put their own tariff on American Soy Beans.
They WILL fold like the cheap suit they are because We are the only game in town.
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