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China backtracked on almost all aspects of U.S. trade deal – sources

reuters.com

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Re: China backtracked on almost all aspects of U.S. trade deal – sources

#141

Earlier quoted context omitted.

A 25% tariff results in low-singe digits % price increase at in the store. The tariffs are on cost of goods, but cost of goods is usually a fairly small fraction of retail price.

Even a 5% increase in the monthly costs of a lower-income family is 5% too much in this era of stagnating real wages. And

Most families don't spend all that much money on stuff manufactured in China. Family budgets are largely comprised of rent/mortgage, food, and transportation. Then you have clothing and household goods, some of which is manufactured in China. So we're looking at a 5% increase in a small fraction of a family's monthly budget. As a point of comparison, families regularly weather much larger fluctuations in their monthly budget due to changes in the price of gasoline.

Re: China backtracked on almost all aspects of U.S. trade deal – sources

#142

Earlier quoted context omitted.

Another year and a half is a long time to make your people suffer. And a lot of the supply chains that moved out of China might not come back. Waiting is a hell of a gamble.

I'm not sure a year and a half of unfavorable trade means much to a dictator who declares themself dictator for life, imprisons millions of citizens in re-education camps and engages in mass censorship.

Good thing the Chinese people have no history of violently overthrowing their rulers.

Re: China backtracked on almost all aspects of U.S. trade deal – sources

#143

Earlier quoted context omitted.

If your currency is a reserve currency, this measure is unnecessary--you can just print more of it.

That has the unfortunate disadvantage of devaluing the currency your own citizens hold.

Only the rich ones. The citizens who have their debts devalued, and whose assets are mostly in residential real estate, would see it as a fortunate advantage.

Re: China backtracked on almost all aspects of U.S. trade deal – sources

#144

Earlier quoted context omitted.

Another year and a half is a long time to make your people suffer. And a lot of the supply chains that moved out of China might not come back. Waiting is a hell of a gamble.

Plus, there's a disaster brewing with the Chinese hog epidemic . Going to be lots of starvation in a year or two.

I just learned the source of this epidemic:

https://www.youtube.com/watch?v=EQ9bP6wo8rA&list=WL&index=49...

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