Morgan Stanley say China is in a strong position, so 'trade tensions will likely stay with us'

[Andhadhun]

Do you know what happens when 2 trillion dollars worth of bills get dumped? US depended on Saudi oil to maintain USD$ value and in return they used their military to maintain USd$ dominance. I am not saying the system will implode but the effects of that plus the second largest economy withdrawing from this US dollar based system would be dissatrous. US is worried China trading directly converting currency directly, they know once that happens, alot of country would be free. You seem to like to cheer for this colonial system. Talking like a loyal slave. Ask China why they dare to defy US, other than us nobody can compete and rival US.

2 Trillion is too large an amount to be dumped.

The T-bills you hold do not even generate any interest. So you are already at a loss holding them, but to dump them will wipe out a significant part of your foreign currency savings. US loss might be short term, yours will be long term.

If the US puts a sanction on you for attempting to dump the USD, who do you think the world will stand behind ?

Maybe Russia will stand behind china. Who else ? How else will you purchase non russian oil and gas ?

Stating the truth and Facts is not cheering the system. Neither is your boasting going to change the reality.

You are talking like a foolish ignorant nationalist attempting to punch beyond your weight so don't be surprised when the world tells you that you will fail. Thank fully your govt. knows this.

 

[beijingwalker]

Not too early to tell, China has said it is going to adhere to our sanctions and regardless of a very absurd claim of an imaginary US concession, China will and has kowtowed to the US demands.

BTW, Trump just hit China again with a ban against Huawei, a few hours ago. So much for concessions https://www.nytimes.com/2019/05/15/business/huawei-ban-trump.html

Good, China already retaliated, let's see who's gonna have the last laugh, it's just started and whoever already claims victory is simply stupid.

 

[Andhadhun]

So far so good. US exports to China dropped four times more than China's exports to US.

Of course, eventually, all sides will get hurt -- including bystanders. The questions not absolute gains, but relative ones.

If the US can subsidize and dump their goods around the world, they should start this afternoon.

Check out US global exports (800 billion or so). It is a resource/raw material exporting country, basically.

If the US cannot sell their own produce, they will consume it themselves. That is how it works.

Then continue to be a good customer.

Yes, look at their debt-driven growth with negative NIIP.

And yet they are the strongest currency in the world. And china continue to hold T-bills worth 2 trillion $ of this same deb driven growth with negative NIIP Nation. Have you ever wondered why ?

 

[beijingwalker]

China's market 1.5 billion, world biggest middle class country and still gets wealthier by the day. US market 300 million. So where the future lies for more trade?

 

[Foggy_Bottom]

Good, China already retaliated, let's see who's gonna have the last laugh, it's just started and whoever already claims victory is simply stupid.

Retaliated with $60 billion against our $200 billion rate hike upon you. My math says that the US has an upper hand.

Then to further retaliate, the US has more items worth $300 plus billion to levy more tariffs . While China is running out of US items to reciprocate.

 

[beijingwalker]

Retaliated with $60 billion against our $200 billion rate hike upon you. My math says that the US has an upper hand.

Then to further retaliate, the US has more items worth $300 plus billion to levy more tariffs . While China is running out of US items to reciprocate.

$200 billion paid by American customers, $60 billion paid by Chinese customers, good deal.

 

[Foggy_Bottom]

China's market 1.5 billion, world biggest middle class country and still gets wealthier by the day. US market 300 million. So where the future lies for more trade?

Where the future lies? You don't allow people access to your markets. Future is the same as is now. Secondly, your people's purchasing power far less than Americans.

 

[beijingwalker]

Where the future lies? You don't allow people access to your markets. Future is the same as is now. Secondly, your people's purchasing power far less than Americans.

So we can forget each other's market, China has the whole world to sell and we don't need US products that much either, and we'll see who lose more in the future.

US needs to buy a lot from China to sustain their standard of living, China doesn't buy much from US, so we don't need US products to function, I don't really know what we really need to buy from US which we can't find a replacement from somewhere else.

 

[Foggy_Bottom]

$200 billion paid by American customers, $60 billion paid by Chinese customers, good deal.

Wow, this must the new Chinese math that says you lose customers worth $200 billion is better than losing $60 billion.

Let me help you with some examples.

Chinese manufacturers, citizens who work for them sell over $500 billion plus surplus into the US on trade. If the prices of those goods go up in the US, what do you think will happen, will same or more people buy them in the US or will they hold off?

If we apply your logic, just as you have submitted in this case, then you should immediately shut all trade with the US, you will be winning bigly!

 

[beijingwalker]

Chinese manufacturers, citizens who work for them sell over $500 billion plus surplus into the US on trade. If the prices of those goods go up in the US, what do you think will happen, will same or more people buy them in the US or will they hold off?

We sell them somewhere else, trade war has been going on a year already, we only see big increase of surplus, it's a good opportunity for our manufactureres to shift their foucs on more countries, that's what they should have done long time ago.

US says no to a deal and China says no to a deal ,good for both, end of the story.

 

[Foggy_Bottom]

So we can forget each other's market, China has the whole world to sell and we don't need US products that much either, and we'll see who lose more in the future.

US needs to buy a lot from China to sustain their standard of living, China doesn't buy much from US, so we don't need US products to function, I don't really know what we really need to buy from US which we can't find a replacement from somewhere else.

Bravo! Xi should have voices like you immediately force him to push for such actions.

Btw, when you don't have the US market to sell, then what happens to the costs of your goods that Chinese manufacturers make, jobs it provides, when you have a monumental drop in the volume being purchased, forget wondering who has Americans like purchasing power. Who is going replace the US market that you are not already selling into now? Your friends in Iran, Sudan, Nepal, Russia, Pakistan?

 

[beijingwalker]

Bravo! Xi should have voices like you immediately force him to push for such actions.

Btw, when you don't have the US market to sell, then what happens to the costs of your goods that Chinese manufacturers make, jobs it provides, when you have a monumental drop in the volume being purchased, forget wondering who has Americans like purchasing power

Told you already, China has a whole world to sell, we can sell more to emerging market, US has to buy Chinese products course many of them have no replacement in the world market, so you have to pay for that tariff, even US economists admit that, but US manufactuerers will lose the world biggest retail market in the future. both suffer, but remeber, we are a communist country and we can tough it out, but Trump won't survive the next election.

 

[Foggy_Bottom]

Told you already, China has a whole world to sell, we can sell more to emerging market, US has to buy Chinese products course many of them have no replacement in the world market, so you have to pay for that tariff, even US economists admit that, but US manufacturers will lose the world biggest retail market in the future. both suffer, but remember, we are a communist country and we can tough it out, but Trump won't survive the next election.

What is that whole world? Who is going to replace the US market buying power close to 800 billion with China?

Where will you find $800 billion to replace. In Sudan, Iran, Syria, Pakistan, Turkey, Africa? Do you think they can return the $800 billion purchasing power?

What's with this biggest retail market will we lose when we are not allowed to play in your market, nor is cheap retail stuff something we manufacture.

Someone else will replace your cheap stuff in the US. Vietnam, Bangladesh, India many more emerging markets are willing and wanting to take your $800 billion share in the US.

But where will you find $800 billion to replace. In Sudan, Iran, Syria, Pakistan, Turkey, Africa? Do you think they can replace the $800 billion purchasing power?

While you are looking for someone to sell $800 billion, what happens to your factories, workers who now have $800 billion fewer orders coming in.

 

[beijingwalker]

What is that whole world? Who is going to replace the US market buying power close to 800 billion with China?

What's with this biggest retail market will we lose when we are not allowed to play in your market, nor is cheap retail stuff something we manufacture.

Someone else will replace your cheap stuff in the US. Vietnam, Bangladesh, India many more emerging markets are willing and wanting to take your $800 billion share in the US.

But where will you find $800 billion to go replace. In Sudan, Iran, Syria, Pakistan, Turkey, Africa? You think they can replace the $800 billion purchasing power?

While you looking for someone to sell $800 billion, what happens to your factories, workers who now have $800 billion fewer orders coming in.

Then try, talking is cheap, now no deal we both are happy, right? Good for both of us.

 

[Foggy_Bottom]

Then try, talking is cheap, now no deal we both are happy, right? Good for both of us.

I'm confused, it's you who are 'talking' about how this means nothing to China and how China should have zero trade with the US. It's your buster, it's your cheap talk, certainly not mine.