Pavanonline Posted April 24 Report Posted April 24 10 minutes ago, jpismahatma said: Or else you will have to sell your country to ccp. How? Quote
jpismahatma Posted April 24 Author Report Posted April 24 3 minutes ago, Pavanonline said: How? Economics 101 anna. you need to have something to buy something. You pay $ you get Chinese items. At some point China will have lot of $$$ what will they do with it ? your exports to China are less compared to imports slowly deficit grow and at some point it will be unsustainable. You will have to sell your country to keep up and China only becomes stronger and stronger. Question is what will China buy ? India China trade deficit is $100 billion every year. If one country only exports and another only imports, the exporting country experiences a trade surplus (more money coming in than going out) which can lead to economic growth and a stronger currency, according to Quora. The importing country experiences a trade deficit (more money going out than coming in), potentially leading to economic challenges, according to Wikipedia. The importing country also becomes reliant on the exporting country for goods and services it needs, as noted on Reddit. [1, 1, 2, 2, 3, 3, 4, 4, 5, 6, 7] Detailed Explanation: [1, 1, 2, 2] Exporting Country (Surplus): [1, 1, 2, 2] Increased Economic Growth: When a country exports more than it imports, it generates a surplus of foreign currency. This surplus can be used for investment within the country, boosting production and overall economic activity. [1, 1, 2, 2] Stronger Currency: The increased demand for the exporting country's currency due to its exports tends to strengthen its value, as discussed on Quora. [2, 2] Comparative Advantage: The exporting country likely specializes in producing goods or services where it has a comparative advantage, meaning it can produce them more efficiently than other countries. [8, 8, 9, 9] Importing Country (Deficit): [3, 3, 10, 10] Economic Challenges: A consistent trade deficit can strain a country's economy. It may need to borrow money to finance its imports or devalue its currency, as discussed on Reddit. [3, 3, 10, 10, 11, 12] Dependency: The importing country becomes reliant on the exporting country for essential goods and services, making it vulnerable to disruptions or changes in the exporting country's policies or production. [5, 5, 6, 6, 13] Potential Inflation: If the importing country's currency weakens, the cost of its imports can increase, leading to inflation. [2, 2, 14, 15] Overall: [1, 1, 5, 5] One-sided trade is unsustainable in the long run: While a trade surplus can be beneficial, a consistent reliance on only exporting can create vulnerabilities for the exporting country if its main trading partner experiences economic difficulties. [1, 5, 16, 17, 18] Trade is generally beneficial for all parties: Trade allows countries to specialize in what they do best, increasing overall efficiency and productivity, as noted by the International Monetary Fund (IMF). [8, 8, 19] Generative AI is experimental. [1] https://www.quora.com/What-is-the-impact-of-a-country-that-only-exports-but-doesnt-import-anything-at-all [2] https://www.quora.com/What-will-happen-to-a-country-that-has-more-export-than-import-Is-it-something-good-for-the-economy-or-is-it-bad [3] https://en.wikipedia.org/wiki/Balance_of_trade [4] https://www.investopedia.com/articles/investing/100813/interesting-facts-about-imports-and-exports.asp [5] https://www.reddit.com/r/AskEconomics/comments/1aq627l/why_would_a_country_export_something_that_they/ [6] https://www.reddit.com/r/NoStupidQuestions/comments/ud2yuf/what_happens_if_the_us_slowly_stops_all_imports/ [7] https://zabeelinstitute.ae/blog/import-and-export/ [8] https://www.imf.org/external/pubs/ft/fandd/2009/12/basics.htm [9] https://www.indeed.com/career-advice/career-development/import-vs-export [10] https://www.reddit.com/r/AskEconomics/comments/1gql381/if_the_usa_imports_1b_from_another_nation_and/ [11] https://www.investopedia.com/articles/investing/051515/pros-cons-trade-deficit.asp [12] https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=13620 [13] https://academic.oup.com/isq/article/58/1/79/1837526 [14] https://www.linkedin.com/advice/3/what-most-common-challenges-when-financing-s8whc [15] https://edunomics.co.uk/trade-globalisation/ [16] https://www.econlib.org/library/Topics/HighSchool/BalanceofTradeandBalanceofPayments.html [17] https://www.sciencedirect.com/science/article/pii/S2352484723012088 [18] https://www.pearson.com/channels/macroeconomics/learn/brian/ch-10-introducing-economic-concepts/introducing-concepts-trade-deficit-and-surplus [19] https://cei.org/blog/are-loser-states-responsible-for-the-us-trade-deficit/ 1 Quote
Pavanonline Posted April 24 Report Posted April 24 39 minutes ago, jpismahatma said: Economics 101 anna. you need to have something to buy something. You pay $ you get Chinese items. At some point China will have lot of $$$ what will they do with it ? your exports to China are less compared to imports slowly deficit grow and at some point it will be unsustainable. You will have to sell your country to keep up and China only becomes stronger and stronger. Question is what will China buy ? India China trade deficit is $100 billion every year. If one country only exports and another only imports, the exporting country experiences a trade surplus (more money coming in than going out) which can lead to economic growth and a stronger currency, according to Quora. The importing country experiences a trade deficit (more money going out than coming in), potentially leading to economic challenges, according to Wikipedia. The importing country also becomes reliant on the exporting country for goods and services it needs, as noted on Reddit. [1, 1, 2, 2, 3, 3, 4, 4, 5, 6, 7] Detailed Explanation: [1, 1, 2, 2] Exporting Country (Surplus): [1, 1, 2, 2] Increased Economic Growth: When a country exports more than it imports, it generates a surplus of foreign currency. This surplus can be used for investment within the country, boosting production and overall economic activity. [1, 1, 2, 2] Stronger Currency: The increased demand for the exporting country's currency due to its exports tends to strengthen its value, as discussed on Quora. [2, 2] Comparative Advantage: The exporting country likely specializes in producing goods or services where it has a comparative advantage, meaning it can produce them more efficiently than other countries. [8, 8, 9, 9] Importing Country (Deficit): [3, 3, 10, 10] Economic Challenges: A consistent trade deficit can strain a country's economy. It may need to borrow money to finance its imports or devalue its currency, as discussed on Reddit. [3, 3, 10, 10, 11, 12] Dependency: The importing country becomes reliant on the exporting country for essential goods and services, making it vulnerable to disruptions or changes in the exporting country's policies or production. [5, 5, 6, 6, 13] Potential Inflation: If the importing country's currency weakens, the cost of its imports can increase, leading to inflation. [2, 2, 14, 15] Overall: [1, 1, 5, 5] One-sided trade is unsustainable in the long run: While a trade surplus can be beneficial, a consistent reliance on only exporting can create vulnerabilities for the exporting country if its main trading partner experiences economic difficulties. [1, 5, 16, 17, 18] Trade is generally beneficial for all parties: Trade allows countries to specialize in what they do best, increasing overall efficiency and productivity, as noted by the International Monetary Fund (IMF). [8, 8, 19] Generative AI is experimental. [1] https://www.quora.com/What-is-the-impact-of-a-country-that-only-exports-but-doesnt-import-anything-at-all [2] https://www.quora.com/What-will-happen-to-a-country-that-has-more-export-than-import-Is-it-something-good-for-the-economy-or-is-it-bad [3] https://en.wikipedia.org/wiki/Balance_of_trade [4] https://www.investopedia.com/articles/investing/100813/interesting-facts-about-imports-and-exports.asp [5] https://www.reddit.com/r/AskEconomics/comments/1aq627l/why_would_a_country_export_something_that_they/ [6] https://www.reddit.com/r/NoStupidQuestions/comments/ud2yuf/what_happens_if_the_us_slowly_stops_all_imports/ [7] https://zabeelinstitute.ae/blog/import-and-export/ [8] https://www.imf.org/external/pubs/ft/fandd/2009/12/basics.htm [9] https://www.indeed.com/career-advice/career-development/import-vs-export [10] https://www.reddit.com/r/AskEconomics/comments/1gql381/if_the_usa_imports_1b_from_another_nation_and/ [11] https://www.investopedia.com/articles/investing/051515/pros-cons-trade-deficit.asp [12] https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=13620 [13] https://academic.oup.com/isq/article/58/1/79/1837526 [14] https://www.linkedin.com/advice/3/what-most-common-challenges-when-financing-s8whc [15] https://edunomics.co.uk/trade-globalisation/ [16] https://www.econlib.org/library/Topics/HighSchool/BalanceofTradeandBalanceofPayments.html [17] https://www.sciencedirect.com/science/article/pii/S2352484723012088 [18] https://www.pearson.com/channels/macroeconomics/learn/brian/ch-10-introducing-economic-concepts/introducing-concepts-trade-deficit-and-surplus [19] https://cei.org/blog/are-loser-states-responsible-for-the-us-trade-deficit/ Vadi dabbulatho vadu emina cheskuntadu who are we to question, there's always an option of not buying for buyers. Only concern should be with critical supplies. Which could be dealt with separately without economic suicide. Quote
jpismahatma Posted April 24 Author Report Posted April 24 Just now, Pavanonline said: Vadi dabbulatho vadu emina cheskuntadu who are we to question, there's always an option of not buying for buyers. Only concern should be with critical supplies. Which could be dealt with separately without economic suicide. . If you hate grump that is ok. Did you read what I shared ? There is nothing called free in world. Quote
Pavanonline Posted April 24 Report Posted April 24 49 minutes ago, jpismahatma said: Haha they don't have private ship building because businesses need to compete with bloated US navy contracts. US ship building is the most protected industry, read the Jones act and yet can't compete. See the video below to understand real world perspective instead of sound bites https://www.cnbc.com/video/2025/03/27/why-china-built-ships-fines-may-send-freight-rates-back-to-covid-peak.html Quote
Pavanonline Posted April 24 Report Posted April 24 38 minutes ago, jpismahatma said: . If you hate grump that is ok. Did you read what I shared ? There is nothing called free in world. Nothing to do with Trump, trade by definition is beneficial to both parties. Nothing in the shared article is relevant to USA. It says the deficit country will have weak currency but dollar was at it's strongest before trade war started, how come? China is ripping manufacturing industry oh but how come manufacturing output is at all time high? They are taking our jobs, oh but how are there 400k manufacturing jobs that are open and businesses are struggling to fill? Thing is US moved on from low tech manufacturing to high tech. US builds high end products from low cost imports and sells/exports higher margin products. US is not a victim but the beneficiary of current world trade order. What China has is a comparative advantage which means they are good at making stuff for less cost. As China's per capita purchase power increases they will lose it. In fact China lost lot of manufacturing jobs in past few years. US problem is with govt spending aka fiscal deficit not with trade deficits. Quote
jpismahatma Posted April 24 Author Report Posted April 24 1 hour ago, Pavanonline said: Nothing to do with Trump, trade by definition is beneficial to both parties. Nothing in the shared article is relevant to USA. It says the deficit country will have weak currency but dollar was at it's strongest before trade war started, how come? China is ripping manufacturing industry oh but how come manufacturing output is at all time high? They are taking our jobs, oh but how are there 400k manufacturing jobs that are open and businesses are struggling to fill? Thing is US moved on from low tech manufacturing to high tech. US builds high end products from low cost imports and sells/exports higher margin products. US is not a victim but the beneficiary of current world trade order. What China has is a comparative advantage which means they are good at making stuff for less cost. As China's per capita purchase power increases they will lose it. In fact China lost lot of manufacturing jobs in past few years. US problem is with govt spending aka fiscal deficit not with trade deficits. dollar to gold is depreciating. You are thinking you are getting cheap goods. Jobs are already gone from your country the taxes paid to government will be lost. You are pouring money in ccp. China is net producer to world not consumer. This is the problem. read this buffet article. He gives example of 2 villages in 2003 https://moneywise.com/news/economy/even-warren-buffett-warned-that-americas-trade-deficit-is-selling-the-nation-out-from-under-us Quote
Pavanonline Posted April 24 Report Posted April 24 46 minutes ago, jpismahatma said: dollar to gold is depreciating. You are thinking you are getting cheap goods. Jobs are already gone from your country the taxes paid to government will be lost. You are pouring money in ccp. China is net producer to world not consumer. This is the problem. read this buffet article. He gives example of 2 villages in 2003 https://moneywise.com/news/economy/even-warren-buffett-warned-that-americas-trade-deficit-is-selling-the-nation-out-from-under-us Not sure why you are comparing dollar and gold when you should be doing it against other currencies. Gold is an asset, not a trading fiat anymore. Thriftville, whose industrious citizens produce more than they consume and export the surplus, and Squanderville, whose inhabitants consume more than they produce, financing their excess consumption by issuing IOUs to Thriftville. Highlighted is the key you are missing, consumption is never a problem if you have the purchasing power. Problem is with US govt borrowing and spending, not private spending by people or businesses. So you have the diagnosis and not fixing the actual problem and messing up with a functional one. Jobs are gone antunnav when unemployment is at historical lows, low paid manufacturing jobs are gone and replaced by high paying ones. A worker at McDonald's in US makes a lot more than factory worker in China and has more purchasing power, I rest my case. Quote
DonnyStrumpet Posted April 24 Report Posted April 24 There is one famous dialogue in a Telugu movie. “Nuvvu nannu adukuntunnava or nenu innu adukuntunnana ani” This situation reminds me of that. China is not giving a crap about this guys. Period. Quote
jpismahatma Posted April 24 Author Report Posted April 24 34 minutes ago, Pavanonline said: Not sure why you are comparing dollar and gold when you should be doing it against other currencies. Gold is an asset, not a trading fiat anymore. Thriftville, whose industrious citizens produce more than they consume and export the surplus, and Squanderville, whose inhabitants consume more than they produce, financing their excess consumption by issuing IOUs to Thriftville. Highlighted is the key you are missing, consumption is never a problem if you have the purchasing power. Problem is with US govt borrowing and spending, not private spending by people or businesses. So you have the diagnosis wrong and fixing the wrong problem. Jobs are gone antunnav when unemployment is at historical lows, low paid manufacturing jobs are gone and replaced by high paying ones. A worker at McDonald's in US makes a lot more than factory worker in China and has more purchasing power, I rest my case. Dollar use to gold standard at fixed price. all that is gone. whose inhabitants consume more than they produce, financing their excess consumption by issuing IOUs to Thriftville. USA consumes more than they produce. who is Squanderville here according to you ? Why do you think buffet expressed his opinion if you think it is not america ? You are dragged to position that you cannot even build ships. You poured money in other country pocket. Your policies will be dictated by them. How long will this sustain ? Govt spending is problem. Pouring money to have trade deficits will kill you. If trade deficit continues what will happen ? in 10 years China will accumulate 5 Trillion dollars . What will they do with $ ? Refer to example I shared ? Read this anna. To drive the point home, he introduced a parable involving two fictional islands: Thriftville, whose industrious citizens produce more than they consume and export the surplus, and Squanderville, whose inhabitants consume more than they produce, financing their excess consumption by issuing IOUs to Thriftville. Over time, Thriftville accumulates substantial claims on Squanderville's future output, leading to a scenario where Squanderville's citizens must work harder just to repay the debt, effectively becoming economically subservient to Thriftville. Buffett took the analogy further, warning that Thriftville’s citizens might lose faith in Squanderville’s IOUs. “Just how good, they ask, are the IOUs of a shiftless island?” Buffett wrote. “So the Thrifts change strategy: Though they continue to hold some bonds, they sell most of them to Squanderville residents for Squanderbucks and use the proceeds to buy Squanderville land. And eventually the Thrifts own all of Squanderville.” @DonnyStrumpet. Economics 101. This will also happen to india and other countries slowly. We have remittances, so got some money to spend. Bessent is referring to this. You cannot have uneven trading policies/trade deficit for long time and needs trade rebalancing. Quote
DonnyStrumpet Posted April 24 Report Posted April 24 18 minutes ago, jpismahatma said: Dollar use to gold standard at fixed price. all that is gone. whose inhabitants consume more than they produce, financing their excess consumption by issuing IOUs to Thriftville. USA consumes more than they produce. who is Squanderville here according to you ? Why do you think buffet expressed his opinion if you think it is not america ? You are dragged to position that you cannot even build ships. You poured money in other country pocket. Your policies will be dictated by them. How long will this sustain ? Govt spending is problem. Pouring money to have trade deficits will kill you. If trade deficit continues what will happen ? in 10 years China will accumulate 5 Trillion dollars . What will they do with $ ? Refer to example I shared ? Read this anna. To drive the point home, he introduced a parable involving two fictional islands: Thriftville, whose industrious citizens produce more than they consume and export the surplus, and Squanderville, whose inhabitants consume more than they produce, financing their excess consumption by issuing IOUs to Thriftville. Over time, Thriftville accumulates substantial claims on Squanderville's future output, leading to a scenario where Squanderville's citizens must work harder just to repay the debt, effectively becoming economically subservient to Thriftville. Buffett took the analogy further, warning that Thriftville’s citizens might lose faith in Squanderville’s IOUs. “Just how good, they ask, are the IOUs of a shiftless island?” Buffett wrote. “So the Thrifts change strategy: Though they continue to hold some bonds, they sell most of them to Squanderville residents for Squanderbucks and use the proceeds to buy Squanderville land. And eventually the Thrifts own all of Squanderville.” @DonnyStrumpet. Economics 101. This will also happen to india and other countries slowly. We have remittances, so got some money to spend. Bessent is referring to this. You cannot have uneven trading policies/trade deficit for long time and needs trade rebalancing. Or another solution. Diversify your trade dependency. Don’t rely on just one country such as China. Let’s start building things in Vietnam and Burma. Even Africa for that matter. That way your leverage is well spread out. It won’t make you indebted to one country. @jpismahatma 1 Quote
jpismahatma Posted April 24 Author Report Posted April 24 3 minutes ago, DonnyStrumpet said: Or another solution. Diversify your dependency. Don’t rely on just one country such as China. That way your leverage is well spread out. It won’t make you indebted to one country. @jpismahatma Bessent is talking about it. It is already too late. Quote
DonnyStrumpet Posted April 24 Report Posted April 24 6 minutes ago, jpismahatma said: Bessent is talking about it. It is already too late. It’s too late for USA too. They don’t have a good in built framework to bring all manufacturing ecosystem here. Also, these guys are hypocrites Anna. They don’t control inflation, at the same time wages are not increasing. How do they expect people to spend extra money due to this tarrifs??? Things are not going in sync. This is an unplanned mess. Also, trade war will not just stop with China. They will come after India too. USA has imported a lot of services from Indians in the last two decades. Without foreign remittances from USA, India is no better than Africa at this point. My apologies for uttering crude truth about Indias economy. Quote
Pavanonline Posted April 24 Report Posted April 24 2 hours ago, Pavanonline said: US builds high end products from low cost imports and sells/exports higher margin products. As I was saying Quote
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