Posted on 05/26/2019 9:49:14 PM PDT by vannrox
The only reason for weakening our economy or increasing prices is not Chinese tariffs, but effective taxes on our exports in the form of income taxes on US workers making goods that we export.
The people against Chinese tariffs are the civil servants getting an insured subsidized government pay free from the economic consequences of the cost they incur as normal workers would to a factory.
The French negociated for the Euro with germans precisely because they knew they would be paid in a high currency to boost their wage earnings immediately, at the expense of the private sector.
Let them do it. Its bound to happen sooner or later.
Its time we as a nation stopped knuckling under to China.
Live it up baby!!!
...from behind the Red firewall. The message(propaganda) was Approved by the Communist a Party of China.
While these marco economic retards shut up as you suggested, I wish they would read a history book or two.
The kind of ideas in this article keep cropping up at times of crisis. They are usually ignorant.
1. While it is true that China is currently the largest of the foreign holders of U.S. treasuries, ALL foreign holders of U.S. treasuries amount to a little less than 30% of all outstanding U.S. debt. 70% of U.S. debt is held by U.S. domestic private and government holders.
2. China could “dump” all the U.S. treasuries it wants to, and all it would do would be to make it easier for other foreign holders of U.S. debt to buy it up, and quickly they would.
I have not heard this before, how are they doing this (and who overall is the buyer from the Fed)?
Thank you for posting this.
“China would take an increasing loss the more they tried to get rid of...”
Cutting off their nose to spite their face.
Actually, I’d buy bonds once they’ve driven the price down with their sell-off.
Wouldn’t there be many investors world-wide that would jump in to buy bonds at a reduced price (and subsequent higher interest rate) which, in turn, would mitigate the perceived “catastrophe”? After all, US bonds are still one of the safest investments in the world.
Quantitative Easing was a policy of the federal reserve buying trillions of dollars of bonds, treasuries and even stocks, inflating the stock market by trillions. Now, the federal reserve is dumping those trillions back on the market.
I fear they have, history books written by Russians & Chinese “historians”. 8>)
As it is, this gambit by the Chinese is a big mistake for them... we ARE the world's reserve currency... and while command economies might not get the implications of that for their GDP, WE get it...
I probably was unclear in my question, who do they sell to, is it institutional buying, other governments, just private investors?
So there’s a price to pay for getting
other countries to finance our national
debt, eh? Who’d a thunk it.
The FED just buys them up at a discount. Trump is happy.
I don’t think it matters. They sell on the market.
Simple counter threat :
BOYCOTT EVERYTHING FROM CHINA
That would do FAR more harm to them and derail a huge chunk of their economy.
Seize Chinese assets/bank accounts in US to pay off any broken deals where Americans lose due to the boycott.
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Is it even possible to Reissue/Replace (one for one) securities held by all ‘friendly’ countries and refuse to honor the securities held by the ChiCom enemy nation ??
“...from behind the Red firewall. The message(propaganda) was Approved by the Communist a Party of China.”
and the DemocRat party ...
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