US and China are working toward a November meeting to settle the trade war

Chinese and U.S. negotiators are mapping talks and meetings that will lead to a planned trade summit in November where President Trump and Chinese leader Xi Jinping would resolve the Trade War.

The existing tariffs represent a relatively small portion of U.S.-China trade. That means the immediate economic impact of the trade war could be limited for both sides.

105 thoughts on “US and China are working toward a November meeting to settle the trade war”

  1. Instead of blabbering the usual things you’ve indoctrinated into, what about putting a little effort to see an alternative, for example: China simply buy more US products, say for example all this newfound fracked oil&gas, how does it sound? PS: a little necessary reminder: when a country has a commercial surplus, then it HAS TO export capital and viceversa. The US commercial deficit is also the reason why all the nation with excess savings pour money into this country. If you stop their commercial surplus, you’re gonna have to stop spending like a drunken sailor, because no one will fund your deficit. There’s nothing inherently wrong with readjustments in this sense, in either way, but just be aware of major changes in the way people live their day-to-day lives. Even more so in a historical moment when the entire planet is transitioning from a single major reserve currency to a multipolar system (good luck trying to slow this down).

    Reply
  2. There is no trade war. All that is happening is a fair realignment of trading patterns between the two nations. China will have to live with less exports to the US. That’s all. No ‘agreement’ is necessary from Beijing for the US to enforce this, either. “By Lingling Wei in Beijing and Bob Davis in Washington

    Reply
  3. Instead of blabbering the usual things you’ve indoctrinated into what about putting a little effort to see an alternative for example: China simply buy more US products say for example all this newfound fracked oil&gas how does it sound?PS: a little necessary reminder: when a country has a commercial surplus then it HAS TO export capital and viceversa. The US commercial deficit is also the reason why all the nation with excess savings pour money into this country. If you stop their commercial surplus you’re gonna have to stop spending like a drunken sailor because no one will fund your deficit. There’s nothing inherently wrong with readjustments in this sense in either way but just be aware of major changes in the way people live their day-to-day lives. Even more so in a historical moment when the entire planet is transitioning from a single major reserve currency to a multipolar system (good luck trying to slow this down).

    Reply
  4. There is no trade war.All that is happening is a fair realignment of trading patterns between the two nations.China will have to live with less exports to the US. That’s all. No ‘agreement’ is necessary from Beijing for the US to enforce this either. By Lingling Wei in Beijing and Bob Davis in Washington”” “””

    Reply
  5. Guess you don’t understand how international credit markets work or the US Federal Reserve. If the US wants to freeze you out its not hard. It only needs a few people to play ball. The US if it has Australia, Canada and the UK ready to cut off banking for whatever reason or screw with interest rates it can. See Japan early 90s to see how the US does things economically to other nations. Also, China still is reliant on the rest of the world for it energy and food. Nearly 255 of their coal is from Australia. This whole Belt and Road thing is to protect their trade routes and create backups. A good deal of the pipelines, seaports and other project are not actually useful and a waste at the moment. They are strategic. However, there is one thing China still cannot produce: jet engines. Go take a look at their civilian and military jet turbines, they are crap. Most are Russian copies made with inferior manufacturing techniques. When it come to high end jet engineering, go with the US or a major EU partner. Russia can’t make a civilian airliner and neither can China. Pretty much it GE, P&W or RR when it comes to a jet engine.

    Reply
  6. Why should China buy some costly US products when they can buy better in-house? If the US raises tariffs no problem, China will gradually dump their reserves (they are aready doing this), replace the US dollar with the yuan and trade with other countries. The world is much bigger than the US Thanks

    Reply
  7. China exports are either sold retailed or are used as parts for making products. As the tariff increase the price the demand will fall. And America’s economy will shrink and unemployment will increase. And no American manufacturing will not instantaneously replace the Chinese products and when they eventually will replace the Chinese good the price of the goods will be higher. The end result is that our economy will shrink.

    Reply
  8. 1) I don’t have to come up with an alternative simply because you can’t stand to admit we know live in a world where America has to buy crâp from China or anyone else. “If you stop their commercial surplus, you’re gonna have to stop spending like a drunken sailor” I have no problem with that. But again you are wrong. The rest of the world needs dollars to trade and somewhere to park them with a better return than 0%. And with 13 countries with huge debt denominated in dollars having problems (like Turkey & Argentina), parking it in the US looks better & better. And now with steel & aluminum plants opening/re-opening in Real America, that whole ‘you need foreign credit’ thing is translated into ‘no, what we need is more FDI’. Also, $300 billion of over $2 trillion parked overseas by American corps has already been repatriated and more at this rate continues to role in. All of this was why the Dollar rise in value even before the Fed started raising rates. We don’t need you, foreigner. Not nearly as much as you need us.

    Reply
  9. Guess you don’t understand how international credit markets work or the US Federal Reserve. If the US wants to freeze you out its not hard. It only needs a few people to play ball. The US if it has Australia Canada and the UK ready to cut off banking for whatever reason or screw with interest rates it can. See Japan early 90s to see how the US does things economically to other nations. Also China still is reliant on the rest of the world for it energy and food. Nearly 255 of their coal is from Australia. This whole Belt and Road thing is to protect their trade routes and create backups. A good deal of the pipelines seaports and other project are not actually useful and a waste at the moment. They are strategic. However there is one thing China still cannot produce: jet engines. Go take a look at their civilian and military jet turbines they are crap. Most are Russian copies made with inferior manufacturing techniques. When it come to high end jet engineering go with the US or a major EU partner. Russia can’t make a civilian airliner and neither can China. Pretty much it GE P&W or RR when it comes to a jet engine.

    Reply
  10. Why should China buy some costly US products when they can buy better in-house? If the US raises tariffs no problem China will gradually dump their reserves (they are aready doing this) replace the US dollar with the yuan and trade with other countries. The world is much bigger than the US Thanks

    Reply
  11. China exports are either sold retailed or are used as parts for making products. As the tariff increase the price the demand will fall. And America’s economy will shrink and unemployment will increase. And no American manufacturing will not instantaneously replace the Chinese products and when they eventually will replace the Chinese good the price of the goods will be higher. The end result is that our economy will shrink.

    Reply
  12. 1) I don’t have to come up with an alternative simply because you can’t stand to admit we know live in a world where America has to buy crâp from China or anyone else.If you stop their commercial surplus” you’re gonna have to stop spending like a drunken sailor””I have no problem with that. But again you are wrong. The rest of the world needs dollars to trade and somewhere to park them with a better return than 0{22800fc54956079738b58e74e4dcd846757aa319aad70fcf90c97a58f3119a12}. And with 13 countries with huge debt denominated in dollars having problems (like Turkey & Argentina)”” parking it in the US looks better & better. And now with steel & aluminum plants opening/re-opening in Real America that whole ‘you need foreign credit’ thing is translated into ‘no what we need is more FDI’.Also $300 billion of over $2 trillion parked overseas by American corps has already been repatriated and more at this rate continues to role in. All of this was why the Dollar rise in value even before the Fed started raising rates.We don’t need you”” foreigner. Not nearly as much as you need us.”””””””

    Reply
  13. The rest of the world needs dollars to trade”. This is exactly the point: the more the US (350m people, 4.5% of global population) bullies the other 7+ billion, the faster they’ll try to shed the dollar for trade. Look at what’s happening in China: yuan oil contracts with Russia, Iran and Venezuela (31% of world oil reserves combined). Soon you’ll see African commodities traded in yuan. Turkey is letting its country feel the pain in an (amateurish) attempt to break away from the US and de-dollarize the economy. Trump cozing up with headcutting Saudis and tastelessly creating issues with the EU, the largest trading partners of the US… All this dots are on a line. If dollar dominance has been the golden egg goose that has given the US its prosperity, well, it seems that now you’re hellbent on killing it.

    Reply
  14. As for the “civilian airliner” thing, you are deeply wrong. Google COMAC C919 And for jet engines, Google this Rolls Royce chairman predicts Chinese-made jet engines coming soon

    Reply
  15. Finally someone who can THINK!! Seriously, I am not ironic I agree with you that the whole deal about the US foreign policy is dominance and keepthe US$ as currency reserve Sorry, reserve currency Well, we can also agree that, at the moment, China can not produce jet engines, SO FAR But AFAIK, this is the only thing or almost the only product China cano not manufacture at the moment Virtually everything else they can do And they have a project to produce jet engines in – house , in one or two years After that, the US empire is done . Thanks

    Reply
  16. The rest of the world needs dollars to trade””. This is exactly the point: the more the US (350m people”” 4.5{22800fc54956079738b58e74e4dcd846757aa319aad70fcf90c97a58f3119a12} of global population) bullies the other 7+ billion the faster they’ll try to shed the dollar for trade. Look at what’s happening in China: yuan oil contracts with Russia Iran and Venezuela (31{22800fc54956079738b58e74e4dcd846757aa319aad70fcf90c97a58f3119a12} of world oil reserves combined). Soon you’ll see African commodities traded in yuan. Turkey is letting its country feel the pain in an (amateurish) attempt to break away from the US and de-dollarize the economy. Trump cozing up with headcutting Saudis and tastelessly creating issues with the EU the largest trading partners of the US… All this dots are on a line. If dollar dominance has been the golden egg goose that has given the US its prosperity well”” it seems that now you’re hellbent on killing it.”””

    Reply
  17. As for the civilian airliner”” thing”” you are deeply wrong. Google COMAC C919 And for jet engines”” Google this Rolls Royce chairman predicts Chinese-made jet engines coming soon”””

    Reply
  18. Finally someone who can THINK!! Seriously I am not ironic I agree with you that the whole deal about the US foreign policy is dominance and keepthe US$ as currency reserve Sorry reserve currency Well we can also agree that at the moment China can not produce jet engines SO FAR But AFAIK this is the only thing or almost the only product China cano not manufacture at the moment Virtually everything else they can do And they have a project to produce jet engines in – house in one or two years After that the US empire is done . Thanks

    Reply
  19. @ Warren : every tragedy in life begins with an error in judgement, like treating like a constant something that is actually a variable.

    Reply
  20. Even more so in a historical moment when the entire planet is transitioning from a single major reserve currency ” Hahahahahahahah…..Vittorio is posting on NBF while on drugs.

    Reply
  21. And America’s economy will shrink and unemployment will increase.” Yet, the EXACT opposite is happening…especially in Red State America. “And no American manufacturing will not instantaneously replace the Chinese products ” Yes they will. Already happening. In macroeconomic terms, ‘instantaneously replace’ means 12 – 18 months. And that is what is happening. “The end result is that our economy will shrink.” Hahahahahhaahah

    Reply
  22. @ Warren : every tragedy in life begins with an error in judgement like treating like a constant something that is actually a variable.

    Reply
  23. Even more so in a historical moment when the entire planet is transitioning from a single major reserve currency “”Hahahahahahahah…..Vittorio is posting on NBF while on drugs.”””

    Reply
  24. And America’s economy will shrink and unemployment will increase.””Yet”””” the EXACT opposite is happening…especially in Red State America.””””And no American manufacturing will not instantaneously replace the Chinese products “”””Yes they will. Already happening. In macroeconomic terms”””” ‘instantaneously replace’ means 12 – 18 months.And that is what is happening. “”””The end result is that our economy will shrink.””””Hahahahahhaahah”””

    Reply
  25. he faster they’ll try to shed the dollar for trade.” Nope. That would mean their dollar reserves would become worthless. So they can’t do that despite all the wet dreams you have otherwise. “Look at what’s happening in China: yuan oil contracts with Russia, Iran and Venezuela (31% of world oil reserves combined). ” oil reserves are not oil traded. And for some reason the Mandarins in Beijing are not listening to Vittorio! Gasp! They have quietly omitted US nat gas and oil from their ‘counter tariffs’. So much from buying from Russia and Venezuela. And who cares if China does do that? Doesn’t change the fact that the rest of the world will still use dollars. “Soon you’ll see African commodities traded in yuan” So what? The US can easily put a stop to this by simply cutting off Chinese banks and the banks of other nations from trading US dollars. INSTANTLY. “with the EU, the largest trading partners of the US” Hahahahah…what planet do you live on? The US’ largest trading partners are Mexico and Canada. About half of all of our trade is with them. Half of 8% of our GDP is…4%. So a whopping 4% of our GDP involves trade with non-NAFTA countries. We can easily live without that. EASILY. “well, it seems that now you’re hellbent on killing it.” Nope. Because despite your fantasies, the yuan is not replacing it. Neither is the euro. The entire world wide trading system as we know it won’t exist in as little as three years from now. The US isn’t propping it up anymore and now is starting to cash in. Those nations that want to have access to US markets will have to do so on a more fair footing or pay us in some other way. The US Navy will no longer be securing the sea lanes for Chinese and German shipping. Yet, other nations will need dollars more than ever simply because the US will be a big player — second only to Saudi Arabia — in the oil markets, which will continue to be dominated in dollar transactions.

    Reply
  26. he faster they’ll try to shed the dollar for trade.””Nope. That would mean their dollar reserves would become worthless. So they can’t do that despite all the wet dreams you have otherwise.””””Look at what’s happening in China: yuan oil contracts with Russia”””” Iran and Venezuela (31{22800fc54956079738b58e74e4dcd846757aa319aad70fcf90c97a58f3119a12} of world oil reserves combined). “”””oil reserves are not oil traded. And for some reason the Mandarins in Beijing are not listening to Vittorio! Gasp! They have quietly omitted US nat gas and oil from their ‘counter tariffs’. So much from buying from Russia and Venezuela. And who cares if China does do that? Doesn’t change the fact that the rest of the world will still use dollars.””””Soon you’ll see African commodities traded in yuan””””So what? The US can easily put a stop to this by simply cutting off Chinese banks and the banks of other nations from trading US dollars. INSTANTLY. “”””with the EU”””” the largest trading partners of the US””””Hahahahah…what planet do you live on? The US’ largest trading partners are Mexico and Canada. About half of all of our trade is with them. Half of 8{22800fc54956079738b58e74e4dcd846757aa319aad70fcf90c97a58f3119a12} of our GDP is…4{22800fc54956079738b58e74e4dcd846757aa319aad70fcf90c97a58f3119a12}. So a whopping 4{22800fc54956079738b58e74e4dcd846757aa319aad70fcf90c97a58f3119a12} of our GDP involves trade with non-NAFTA countries.We can easily live without that. EASILY.””””well”””” it seems that now you’re hellbent on killing it.””””Nope. Because despite your fantasies”” the yuan is not replacing it. Neither is the euro.The entire world wide trading system as we know it won’t exist in as little as three years from now. The US isn’t propping it up anymore and now is starting to cash in. Those nations that want to have access to US markets will have to do so on a more fair footing or pay us in some other way. The US N”

    Reply
  27. He has a good point Warrenthemonkeyboy, The USA’s trade deficit has to occur overall. Not necessarily with China, but with someone, or a group of someones. And the reason it has to occur is hog wild US spending on stuff like high speed nonexistent trains through california or $20k/year public schools that teach less effectively than one room, one teacher schools from the 19th century. The USA spends more than it makes, so that money has to come from somewhere. The people who lend the money need to get it from somewhere. So they need to run a trade surplus with the USA. If that stops then the values of the currencies and markets will move until it’s all balanced again. Just tackling one surplus country will just shuffle stuff around again, but the overall balance will end up driven by the overspending just like before (but a little bit LESS efficient because you just banned the previous most efficient option.)

    Reply
  28. He has a good point WarrenthemonkeyboyThe USA’s trade deficit has to occur overall. Not necessarily with China but with someone or a group of someones. And the reason it has to occur is hog wild US spending on stuff like high speed nonexistent trains through california or $20k/year public schools that teach less effectively than one room one teacher schools from the 19th century.The USA spends more than it makes so that money has to come from somewhere. The people who lend the money need to get it from somewhere. So they need to run a trade surplus with the USA. If that stops then the values of the currencies and markets will move until it’s all balanced again.Just tackling one surplus country will just shuffle stuff around again but the overall balance will end up driven by the overspending just like before (but a little bit LESS efficient because you just banned the previous most efficient option.)

    Reply
  29. They jut started But they can build planes and the duopoly Airbus-Boeing is now broken They will be able to get their engines soon After that,they will be more or less 100% independent from the US And Iran will be able to planes giving the middle finger to the US

    Reply
  30. COMAC has a total production of 12 planes built and all of them uses a GE engine. Boeing builds over 1000 commercial airliners, roughly 700 737s alone per year. The Chinese have yet to successfully build a jet engine. Every military jet engines they use are all Russian engines, since the ones they do build are Russian copies that they bought a licence to make themselves.

    Reply
  31. They jut started But they can build planes and the duopoly Airbus-Boeing is now broken They will be able to get their engines soon After thatthey will be more or less 100{22800fc54956079738b58e74e4dcd846757aa319aad70fcf90c97a58f3119a12} independent from the US And Iran will be able to planes giving the middle finger to the US

    Reply
  32. COMAC has a total production of 12 planes built and all of them uses a GE engine. Boeing builds over 1000 commercial airliners roughly 700 737s alone per year. The Chinese have yet to successfully build a jet engine. Every military jet engines they use are all Russian engines since the ones they do build are Russian copies that they bought a licence to make themselves.

    Reply
  33. I know how trade imbalances work, I juts do not understand what you say. Moreover, I do not understand what point Warren-the-troll is having

    Reply
  34. I did not understand much of what you saaid Just saying” in us-and-china-are-working-toward-a-november-meeting-to-settle-the-trade-war 1. Given this ridiculous comment system you have to quote what you are replying to or it’s impossible to find where the reply is from the notification email. 2. I concede that I tried to summarise a fairly complex, or at least subtle, idea, in too few words. Google up Michael Pettis who can explain far better than I why the US (or any country) deficit and the trade balance are linked, not just by influence but as a direct arithmetic equation.

    Reply
  35. I know how trade imbalances work I juts do not understand what you say. Moreover I do not understand what point Warren-the-troll is having

    Reply
  36. I did not understand much of what you saaid Just saying”” in us-and-china-are-working-toward-a-november-meeting-to-settle-the-trade-war1. Given this ridiculous comment system you have to quote what you are replying to or it’s impossible to find where the reply is from the notification email.2. I concede that I tried to summarise a fairly complex”” or at least subtle idea in too few words.Google up Michael Pettis who can explain far better than I why the US (or any country) deficit and the trade balance are linked”” not just by influence but as a direct arithmetic equation.”””

    Reply
  37. Chinese produced their goods by exploiting their people’s blood, sweat, and health and polluting their environment, then Chinese trade those valuable goods with USA’s virtual IOU fiat money which is not even printed on the paper. You are right, China is not an equitable trading partner to the USA, Chinese is a plain deplorable of the old days colonialism in the modern era, while the American is the same old greedy ungrateful of the old days colonialists.

    Reply
  38. Chinese produced their goods by exploiting their people’s blood sweat and health and polluting their environment then Chinese trade those valuable goods with USA’s virtual IOU fiat money which is not even printed on the paper. You are right China is not an equitable trading partner to the USA Chinese is a plain deplorable of the old days colonialism in the modern era while the American is the same old greedy ungrateful of the old days colonialists.

    Reply
  39. hear hear: the German foreign minister announces a push to shift away from SWIFT. You see what happen Warren? This is what happens when you go too far. Say hello to multilateralism. https://global.handelsblatt.com/opinion/making-plans-new-world-order-germany-us-trump-trans-atlantic-relations-heiko-maas-europe-956306 PS: IMF’s special drawing rights are the future reserve currency; the short term future of global reserve currencies may as well look more like the current SDR distribution (42% USD, 31% EUR, 11% CNY): https://en.wikipedia.org/wiki/Special_drawing_rights

    Reply
  40. hear hear: the German foreign minister announces a push to shift away from SWIFT. You see what happen Warren? This is what happens when you go too far. Say hello to multilateralism.https://global.handelsblatt.com/opinion/making-plans-new-world-order-germany-us-trump-trans-atlantic-relations-heiko-maas-europe-956306PS: IMF’s special drawing rights are the future reserve currency; the short term future of global reserve currencies may as well look more like the current SDR distribution (42{22800fc54956079738b58e74e4dcd846757aa319aad70fcf90c97a58f3119a12} USD 31{22800fc54956079738b58e74e4dcd846757aa319aad70fcf90c97a58f3119a12} EUR 11{22800fc54956079738b58e74e4dcd846757aa319aad70fcf90c97a58f3119a12} CNY): https://en.wikipedia.org/wiki/Special_drawing_rights

    Reply
  41. Nope. You’re just pushing bogus data. You are probably including services…which is bupkiss to consider when talking about issues such as tariffs and manufacturing. You don’t even know when to talk apples instead of oranges.

    Reply
  42. 1) I do not hate the US. As a matter of fact, I wish this country the best, not least because I have personal interests in it. 2) Bookmark your messages, they’ll be hilarious to read again in 10 years.

    Reply
  43. it’s your elementary-level back-of-the-napkin maths by Mr. Nobody vs. an official website of the US government. You’re simply not credible and keeping on pushing such statements designed for gullible audiences will not make them any truer… this would be a good time to accept it Warren.

    Reply
  44. Hear! Hear! So what about the German foreign Minister saying whatever? It’s all for domestic politics. China has said the same thing. So have the Iranians. Let them try to buy oil w/o dollars. IMF SDRs? They have been saying that for…um…since it they were created. You are singing a tune that is decades old…the dream of the America haters! The Euro is toast. The EU is toast. Both are products of the US propping up the global trading system and NATO — both of which are no longer happing. Keep blathering otherwise. I know the truth hurts and you — like the foreign minister —

    Reply
  45. No, Mexico/Canada are. Over 50% of US ‘international’ trade is conducted with those two countries. 50% of 8% of GDP equals 4% of GDP. So if the EU is top dog in that other 4%, it is still just a percentage of that 4%.

    Reply
  46. He has a good point Warrenthemonkeyboy” No, he doesn’t. He’s just blathering buzz words he learned from Paul Krugman. I already ripped it apart in my response to him. Very LITTLE of the US GDP is spent on trade. Very little.

    Reply
  47. Nope. You’re just pushing bogus data. You are probably including services…which is bupkiss to consider when talking about issues such as tariffs and manufacturing. You don’t even know when to talk apples instead of oranges.

    Reply
  48. 1) I do not hate the US. As a matter of fact I wish this country the best not least because I have personal interests in it.2) Bookmark your messages they’ll be hilarious to read again in 10 years.

    Reply
  49. it’s your elementary-level back-of-the-napkin maths by Mr. Nobody vs. an official website of the US government. You’re simply not credible and keeping on pushing such statements designed for gullible audiences will not make them any truer… this would be a good time to accept it Warren.

    Reply
  50. Hear! Hear!So what about the German foreign Minister saying whatever? It’s all for domestic politics. China has said the same thing. So have the Iranians. Let them try to buy oil w/o dollars. IMF SDRs? They have been saying that for…um…since it they were created. You are singing a tune that is decades old…the dream of the America haters!The Euro is toast. The EU is toast. Both are products of the US propping up the global trading system and NATO — both of which are no longer happing.Keep blathering otherwise. I know the truth hurts and you — like the foreign minister —

    Reply
  51. No Mexico/Canada are. Over 50{22800fc54956079738b58e74e4dcd846757aa319aad70fcf90c97a58f3119a12} of US ‘international’ trade is conducted with those two countries. 50{22800fc54956079738b58e74e4dcd846757aa319aad70fcf90c97a58f3119a12} of 8{22800fc54956079738b58e74e4dcd846757aa319aad70fcf90c97a58f3119a12} of GDP equals 4{22800fc54956079738b58e74e4dcd846757aa319aad70fcf90c97a58f3119a12} of GDP.So if the EU is top dog in that other 4{22800fc54956079738b58e74e4dcd846757aa319aad70fcf90c97a58f3119a12} it is still just a percentage of that 4{22800fc54956079738b58e74e4dcd846757aa319aad70fcf90c97a58f3119a12}.

    Reply
  52. He has a good point Warrenthemonkeyboy””No”””” he doesn’t. He’s just blathering buzz words he learned from Paul Krugman.I already ripped it apart in my response to him.Very LITTLE of the US GDP is spent on trade. Very little.”””

    Reply
  53. Nope. You’re just pushing bogus data.

    You are probably including services…which is bupkiss to consider when talking about issues such as tariffs and manufacturing.

    You don’t even know when to talk apples instead of oranges.

    Reply
  54. 1) I do not hate the US. As a matter of fact, I wish this country the best, not least because I have personal interests in it.
    2) Bookmark your messages, they’ll be hilarious to read again in 10 years.

    Reply
  55. it’s your elementary-level back-of-the-napkin maths by Mr. Nobody vs. an official website of the US government. You’re simply not credible and keeping on pushing such statements designed for gullible audiences will not make them any truer… this would be a good time to accept it Warren.

    Reply
  56. Hear! Hear!

    So what about the German foreign Minister saying whatever? It’s all for domestic politics. China has said the same thing. So have the Iranians. Let them try to buy oil w/o dollars.

    IMF SDRs? They have been saying that for…um…since it they were created. You are singing a tune that is decades old…the dream of the America haters!

    The Euro is toast. The EU is toast. Both are products of the US propping up the global trading system and NATO — both of which are no longer happing.

    Keep blathering otherwise. I know the truth hurts and you — like the foreign minister —

    Reply
  57. No, Mexico/Canada are. Over 50% of US ‘international’ trade is conducted with those two countries. 50% of 8% of GDP equals 4% of GDP.

    So if the EU is top dog in that other 4%, it is still just a percentage of that 4%.

    Reply
  58. “He has a good point Warrenthemonkeyboy”

    No, he doesn’t. He’s just blathering buzz words he learned from Paul Krugman.

    I already ripped it apart in my response to him.

    Very LITTLE of the US GDP is spent on trade. Very little.

    Reply
  59. hear hear: the German foreign minister announces a push to shift away from SWIFT. You see what happen Warren? This is what happens when you go too far. Say hello to multilateralism.

    https://global.handelsblatt.com/opinion/making-plans-new-world-order-germany-us-trump-trans-atlantic-relations-heiko-maas-europe-956306

    PS: IMF’s special drawing rights are the future reserve currency; the short term future of global reserve currencies may as well look more like the current SDR distribution (42% USD, 31% EUR, 11% CNY): https://en.wikipedia.org/wiki/Special_drawing_rights

    Reply
  60. Chinese produced their goods by exploiting their people’s blood, sweat, and health and polluting their environment, then Chinese trade those valuable goods with USA’s virtual IOU fiat money which is not even printed on the paper.

    You are right, China is not an equitable trading partner to the USA, Chinese is a plain deplorable of the old days colonialism in the modern era, while the American is the same old greedy ungrateful of the old days colonialists.

    Reply
  61. “I did not understand much of what you saaid
    Just saying” in us-and-china-are-working-toward-a-november-meeting-to-settle-the-trade-war

    1. Given this ridiculous comment system you have to quote what you are replying to or it’s impossible to find where the reply is from the notification email.

    2. I concede that I tried to summarise a fairly complex, or at least subtle, idea, in too few words.
    Google up Michael Pettis who can explain far better than I why the US (or any country) deficit and the trade balance are linked, not just by influence but as a direct arithmetic equation.

    Reply
  62. They jut started
    But they can build planes and the duopoly Airbus-Boeing is now broken
    They will be able to get their engines soon
    After that,they will be more or less 100% independent from the US
    And Iran will be able to planes giving the middle finger to the US

    Reply
  63. COMAC has a total production of 12 planes built and all of them uses a GE engine. Boeing builds over 1000 commercial airliners, roughly 700 737s alone per year. The Chinese have yet to successfully build a jet engine. Every military jet engines they use are all Russian engines, since the ones they do build are Russian copies that they bought a licence to make themselves.

    Reply
  64. He has a good point Warrenthemonkeyboy,

    The USA’s trade deficit has to occur overall. Not necessarily with China, but with someone, or a group of someones. And the reason it has to occur is hog wild US spending on stuff like high speed nonexistent trains through california or $20k/year public schools that teach less effectively than one room, one teacher schools from the 19th century.

    The USA spends more than it makes, so that money has to come from somewhere. The people who lend the money need to get it from somewhere. So they need to run a trade surplus with the USA. If that stops then the values of the currencies and markets will move until it’s all balanced again.

    Just tackling one surplus country will just shuffle stuff around again, but the overall balance will end up driven by the overspending just like before (but a little bit LESS efficient because you just banned the previous most efficient option.)

    Reply
  65. “he faster they’ll try to shed the dollar for trade.”

    Nope. That would mean their dollar reserves would become worthless. So they can’t do that despite all the wet dreams you have otherwise.

    “Look at what’s happening in China: yuan oil contracts with Russia, Iran and Venezuela (31% of world oil reserves combined). ”

    oil reserves are not oil traded. And for some reason the Mandarins in Beijing are not listening to Vittorio! Gasp! They have quietly omitted US nat gas and oil from their ‘counter tariffs’. So much from buying from Russia and Venezuela. And who cares if China does do that? Doesn’t change the fact that the rest of the world will still use dollars.

    “Soon you’ll see African commodities traded in yuan”

    So what?

    The US can easily put a stop to this by simply cutting off Chinese banks and the banks of other nations from trading US dollars. INSTANTLY.

    “with the EU, the largest trading partners of the US”

    Hahahahah…what planet do you live on? The US’ largest trading partners are Mexico and Canada. About half of all of our trade is with them. Half of 8% of our GDP is…4%. So a whopping 4% of our GDP involves trade with non-NAFTA countries.

    We can easily live without that. EASILY.

    “well, it seems that now you’re hellbent on killing it.”

    Nope. Because despite your fantasies, the yuan is not replacing it. Neither is the euro.

    The entire world wide trading system as we know it won’t exist in as little as three years from now. The US isn’t propping it up anymore and now is starting to cash in. Those nations that want to have access to US markets will have to do so on a more fair footing or pay us in some other way. The US Navy will no longer be securing the sea lanes for Chinese and German shipping. Yet, other nations will need dollars more than ever simply because the US will be a big player — second only to Saudi Arabia — in the oil markets, which will continue to be dominated in dollar transactions.

    Reply
  66. “Even more so in a historical moment when the entire planet is transitioning from a single major reserve currency ”

    Hahahahahahahah…..Vittorio is posting on NBF while on drugs.

    Reply
  67. “And America’s economy will shrink and unemployment will increase.”

    Yet, the EXACT opposite is happening…especially in Red State America.

    “And no American manufacturing will not instantaneously replace the Chinese products ”

    Yes they will. Already happening. In macroeconomic terms, ‘instantaneously replace’ means 12 – 18 months.

    And that is what is happening.

    “The end result is that our economy will shrink.”

    Hahahahahhaahah

    Reply
  68. “The rest of the world needs dollars to trade”. This is exactly the point: the more the US (350m people, 4.5% of global population) bullies the other 7+ billion, the faster they’ll try to shed the dollar for trade. Look at what’s happening in China: yuan oil contracts with Russia, Iran and Venezuela (31% of world oil reserves combined). Soon you’ll see African commodities traded in yuan. Turkey is letting its country feel the pain in an (amateurish) attempt to break away from the US and de-dollarize the economy. Trump cozing up with headcutting Saudis and tastelessly creating issues with the EU, the largest trading partners of the US… All this dots are on a line.
    If dollar dominance has been the golden egg goose that has given the US its prosperity, well, it seems that now you’re hellbent on killing it.

    Reply
  69. Finally someone who can THINK!!
    Seriously, I am not ironic
    I agree with you that the whole deal about the US foreign policy is dominance and keepthe US$
    as currency reserve
    Sorry, reserve currency
    Well, we can also agree that, at the moment, China can not produce jet engines, SO FAR
    But AFAIK, this is the only thing or almost the only product China cano not manufacture at the moment
    Virtually everything else they can do
    And they have a project to produce jet engines in – house , in one or two years
    After that, the US empire is done . Thanks

    Reply
  70. Guess you don’t understand how international credit markets work or the US Federal Reserve. If the US wants to freeze you out its not hard. It only needs a few people to play ball. The US if it has Australia, Canada and the UK ready to cut off banking for whatever reason or screw with interest rates it can. See Japan early 90s to see how the US does things economically to other nations. Also, China still is reliant on the rest of the world for it energy and food. Nearly 255 of their coal is from Australia. This whole Belt and Road thing is to protect their trade routes and create backups. A good deal of the pipelines, seaports and other project are not actually useful and a waste at the moment. They are strategic. However, there is one thing China still cannot produce: jet engines. Go take a look at their civilian and military jet turbines, they are crap. Most are Russian copies made with inferior manufacturing techniques. When it come to high end jet engineering, go with the US or a major EU partner. Russia can’t make a civilian airliner and neither can China. Pretty much it GE, P&W or RR when it comes to a jet engine.

    Reply
  71. Why should China buy some costly US products when they can buy better in-house?
    If the US raises tariffs no problem, China will gradually dump their reserves (they are aready doing this), replace the US dollar with the yuan and trade with other countries.
    The world is much bigger than the US
    Thanks

    Reply
  72. China exports are either sold retailed or are used as parts for making products. As the tariff increase the price the demand will fall. And America’s economy will shrink and unemployment will increase. And no American manufacturing will not instantaneously replace the Chinese products and when they eventually will replace the Chinese good the price of the goods will be higher. The end result is that our economy will shrink.

    Reply
  73. 1) I don’t have to come up with an alternative simply because you can’t stand to admit we know live in a world where America has to buy crâp from China or anyone else.

    “If you stop their commercial surplus, you’re gonna have to stop spending like a drunken sailor”

    I have no problem with that. But again you are wrong. The rest of the world needs dollars to trade and somewhere to park them with a better return than 0%. And with 13 countries with huge debt denominated in dollars having problems (like Turkey & Argentina), parking it in the US looks better & better.

    And now with steel & aluminum plants opening/re-opening in Real America, that whole ‘you need foreign credit’ thing is translated into ‘no, what we need is more FDI’.

    Also, $300 billion of over $2 trillion parked overseas by American corps has already been repatriated and more at this rate continues to role in. All of this was why the Dollar rise in value even before the Fed started raising rates.

    We don’t need you, foreigner. Not nearly as much as you need us.

    Reply
  74. Instead of blabbering the usual things you’ve indoctrinated into, what about putting a little effort to see an alternative, for example: China simply buy more US products, say for example all this newfound fracked oil&gas, how does it sound?

    PS: a little necessary reminder: when a country has a commercial surplus, then it HAS TO export capital and viceversa. The US commercial deficit is also the reason why all the nation with excess savings pour money into this country. If you stop their commercial surplus, you’re gonna have to stop spending like a drunken sailor, because no one will fund your deficit. There’s nothing inherently wrong with readjustments in this sense, in either way, but just be aware of major changes in the way people live their day-to-day lives. Even more so in a historical moment when the entire planet is transitioning from a single major reserve currency to a multipolar system (good luck trying to slow this down).

    Reply
  75. There is no trade war.

    All that is happening is a fair realignment of trading patterns between the two nations.

    China will have to live with less exports to the US. That’s all.

    No ‘agreement’ is necessary from Beijing for the US to enforce this, either.

    “By Lingling Wei in Beijing and Bob Davis in Washington” <-- establishment wu maus who make a living fluffing for globalists who sell out America "The existing tariffs represent a relatively small portion of U.S.-China trade." China exports at least 4 times as much to the US as the US exports to China. So it is a big deal for China, but barely a dent for the US.

    Reply

Leave a Comment