China: 2nd largest economy. Buys 8.6% of US exports. Doesn't depend on US for weapons. Needs us more than we need them. Saudi Arabia: 19th largest economy. Buys 1.1% of US exports. Heavily depends on US weapons and assistance. Can't be confronted because we need their purchases.
So? I run a trade deficit with the supermarket. My employer runs a trade deficit with me. It doesn't measure what you think it measures. You accidentally helped my point. Total volume of trade is an even clearer measure of the difference than just exports.
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You are not doing a merchandise trade with your employer or the supermarket so that’s not a trade deficit. We don’t need to thank the country who brought us more than 300B trade deficit which made the U.S. lost millions manufacturing job and resulting high divorce rates and1/
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millions families in financial struggle and kids can’t live with both parents. I’m not suggesting U.S. should value China or Saudi more; I’m simply suggesting that there is some problem on the
#unFairtrade practices that U.S. has to confront before it’s too late. -
China does stuff that's worth confronting--eg intellectual property theft-- but trade deficit doesn't inherently indicate a problem. Either way, my point is about Saudi Arabia. If the US can confront China because "they need us more than we need them," the US can confront anyone.
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In Trumpian economics , it means you owe China $300+ billion dollars. China also owns hundreds of billions in treasury bonds. If they decide to liquidate them all,your screwed.That $12 B that was paid to farmers for the stupid trade war,was borrowed from China. you need China.
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Talk about treasury bonds, you can check this one out. Selling U.S bonds will trigger RMB crazy inflation which brought ROC down between 1945-1949 https://www.marketwatch.com/amp/story/guid/02A0BCBA-3995-11E8-BF9C-7DE713DE7E08 …
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Great article. It is interesting that even since June when this was written,so much has changed,in the markets, inflation and the possibility of recession.
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This is a site I like, Good explanations of the why China does what it does regarding trade,and owning US debt. Interesting readhttps://www.investopedia.com/articles/investing/040115/reasons-why-china-buys-us-treasury-bonds.asp …
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