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Monday, May 13, 2019

(Trade) War.. What Is it Good For.. Absolutely Nothin (Say it Again..)

Seems over the weekend the big story in the news is the ratcheting up of the trade war between the US and China as even more tariffs will be placed on goods which come from our Asian friends

This of course will cause the prices of most everything to rise but the President is happy because it means more government revenue which can be used to re-pay the debt we owe China

The goal of course is to make the trade imbalance more fair and equitable since we buy half a billion dollars more in goods from China as they buy from us
But maybe its us, but if we took a devil's advocate perspective and saw this situation from China's point of view, our thought process is as follows:

'Why don't we (China) just stop lending the US money, call in the $2.2T which was already lent out and just be done with this enemy nation once and for all?'

Maybe its because China needs us more than it will ever admit

No nation on earth buys and consumes as much Chinese made product (or really merchandise from anywhere in the world) then the US
So guess its the 'kill the goose, kill the golden egg' principle at play

Destroy the economy of this most annoying, irritating, economically and morally bankrupt nation (that's how China sees us) and they would be cutting their own financial throats

So the game continues to be played - They keep lending and are content with the minimum payments with interest just like any capitalist western nation and will do the absolute minimum to ultimately get a trade deal done without having to compromise much of anything
Meanwhile everything will go up for everyday people and we're all supposed to celebrate this because it is supposed to mean jobs

Ha!

When you are laid off when its economically bad, its called 'recession'..   When you are laid off when its economically good, its called 'restructure'

And somehow we're all conditioned to want faceless, heartless corporations to grow and businesses to succeed, mainly out of absolute fear that if they lose a couple dollars, we'll get canned
This trade war is absolutely un-necessary and little to no good for normal everyday folk will come about from it

Like everything else.. just a continual con game to convince others to think positive of something that will adversely hurt them

Prices always quickly go up when there's ripples in the corporate financial waters and ever so slow to recover once things smooth
It would be so nice if consumers just stop shopping and spending so frivolously - to stop overpaying for everything because of convenience and comfort, but to really make the effort to save money and set personal lines in the sand of what one will spend on goods and services

But as long as there's credit cards and ApplePay,  everyone will keep spending without a thought or worry as to how much everything is and will go up, as long as minimum payments are made and there's still credit limit to play with, all's well

Kinda wish there was a way that magically all businesses would only accept cash or debit cards..

If there is no actual money behind the purchase, the transaction does not go through
Of course the national economy would then collapse completely in one 24 hour day but still, just in a daydream fantasy scenario, we wish it..

So endgame - what will ultimately happen with this trade war?

Well at this point what does it matter?

Prices keep going up..  They won't go down unless people stop consuming and its more a question of how much will costs rise then anything else
We're sure something will get done before 2020 - Re-elections have a way of motivating sitting Presidents to take care of problems so not to affect them come voting time

Until then, don't worry..  just keep charging or zapping your phone or whatever you do..

Or start choosing paths of greater personal budgetary resistance and unless a true necessity, don't keep shopping and feeding the US tariff beast