China needs to change simple.

[Coconut]

Trump will Cave anna…China is the king of supplier market…

other countries cant Compete with China or fight against China 

[Pavanonline]

39 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.

 

 

 

 

You are repeating same issues that I already gave an explanation. Bonds are from govt as I said, nothing to do with trade imbalance. Buffet analogy is suited for govt that is borrowing and spending. He also criticized tariffs recently not from 20 years back. 

Dollar is not pegged to gold since the establishment of federal reserve in 1913, so you're making up stuff or getting misinformed.

[Pavanonline]

29 minutes ago, DonnyStrumpet said:

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

There was actually a plan to diversify during Obama administration, it's called tpp trade deal, which was scrapped by none other than.........Trump. atluntadi tillu gani tho 

[jpismahatma]

2 minutes ago, Pavanonline said:

You are repeating same issues that I already gave an explanation. Bonds are from govt as I said, nothing to do with trade imbalance. Buffet analogy is suited for govt that is borrowing and spending. He also criticized tariffs recently not from 20 years back. 

Dollar is not pegged to gold since the establishment of federal reserve in 1913, so you're making up stuff or getting misinformed.

 

You did not answer my basic question anna.  Just picked what you liked.  Did you ask yourself why would china buy US govt bonds ?

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 ?

Gold/dollar convertability. https://en.wikipedia.org/wiki/Nixon_shock

[DonnyStrumpet]

32 minutes ago, Pavanonline said:

There was actually a plan to diversify during Obama administration, it's called tpp trade deal, which was scrapped by none other than.........Trump. atluntadi tillu gani tho 

On average there is 35% profit mark up here. I mean on all Chinese goods. He wants businesses to make profits using cheap Chinese goods, yet they don’t like trade deficit. Why this kolevaridiiii

 

Business will not get same profit margins if they manufacture here. @jpismahatma

[DonnyStrumpet]

19 minutes ago, jpismahatma said:

 

You did not answer my basic question anna.  Just picked what you liked.  Did you ask yourself why would china buy US govt bonds ?

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 ?

Gold/dollar convertability. https://en.wikipedia.org/wiki/Nixon_shock

It’s fair only no??
 

They are working hard in sweat shops for decades without holidays etc.

People here never endured such work conditions.

At some point, hard workers will thrive over mediocre people. It’s law of nature. Unfortunately it’s China. But what can we do. 

[Pavanonline]

8 minutes ago, jpismahatma said:

 

You did not answer my basic question anna.  Just picked what you liked.  Did you ask yourself why would china buy US govt bonds ?

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 ?

Gold/dollar convertability. https://en.wikipedia.org/wiki/Nixon_shock

you are mixing up 2 different things

1. China is eating up US lunch - which is the claim you started with and is demonstrably false. Both countries got benefitted by trade.

2. China is growing and will become a threat to US dominance - this is a much more valid concern. 

We can't mix both because the solutions to those are different. 

gold standard was removed long long back, What Nixon did is completely unplug it and it was before China trade deficits even began.  

 

[jpismahatma]

1 hour ago, Pavanonline said:

you are mixing up 2 different things

1. China is eating up US lunch - which is the claim you started with and is demonstrably false. Both countries got benefitted by trade.

2. China is growing and will become a threat to US dominance - this is a much more valid concern. 

We can't mix both because the solutions to those are different. 

gold standard was removed long long back, What Nixon did is completely unplug it and it was before China trade deficits even began.  

 

 

You did not answer any of the questions. you are saying both will benefit. 

When trade goes one way how will both sides benefit ?  benefit will be only temporary until it is balanced thats what bessent is saying.

What happens when trade deficit grows to 5, 10 ,20  Trillion Dollars and beyond ? What will china will do with this money ?  

 

What happens when there is trade deficit ? what happens in long term ?

 

Centuries old system: You need to give something to buy something. If China gets lots of dollars they buy your country. Influence internally and finally you will become weak. Thats what rubio tweet about.

 

 

[Pavanonline]

1 minute ago, jpismahatma said:

 

You did not answer any of the questions. you are saying both will benefit. 

When trade goes one way how will both sides benefit ?  benefit will be only temporary until it is balanced thats what bessent is saying.

What happens when trade deficit grows to 5, 10 ,20  Trillion Dollars and beyond ? What will china will do with this money ?  

 

What happens when there is trade deficit ? what happens in long term ?

 

Centuries old system: You need to give something to buy something. If China gets lots of dollars they buy your country. Influence internally and finally you will become weak. Thats what rubio tweet about.

 

 

ok anna enjoy 👍

[jpismahatma]

1 hour ago, Pavanonline said:

ok anna enjoy 👍

thats ok anna.