China Begins to Question Their Economic Ability To Withstand U.S. Trade Pressure – Bamboo Forest Too Dense For Local Panda Population…

There is an article from Bloomberg which finally concedes the obvious economic and trade dynamic within a U.S. -vs- China confrontation.  The media paradigm shift is based on new statements from Chinese Ministers admitting they cannot win a trade confrontation with U.S. President Trump.

The summary reason is simple, we have discussed it frequently:

China is a production-based economic model, they do not have the ability, or wealth, to consume their own durable goods production; they rely on exports.

The U.S. is a more balanced economy; we consume 80% of our own production.  We are self-sustaining, China is not.

Without a market to sell their products, the Chinese economy cannot survive.

Conversely, China has focused so intensely on durable-goods manufacturing, their consumable goods market (food) is dependent; they cannot feed themselves.  The U.S. can survive without exporting food, China cannot survive without importing food.  The U.S. economy can survive without importing durable goods; the Chinese economy cannot survive without exporting durable goods.  This is the unavoidable trade reality.  As a consequence President Trump has all the factual leverage.

In stunning, and carefully worded economic writings, Chinese academics and economic ministers are now talking about the inherent weakness of the Red Dragon policies:

(Bloomberg) Xi Jinping vowed to match Donald Trump blow for blow in any trade war. Now as one gets closer, some in Beijing are starting to openly wonder whether China is ready for the fight — an unusually direct challenge to the leadership of the world’s second-largest economy.

The essays have raised concerns that the ruling Communist Party underestimated the depth of anti-China sentiment in Washington and risked a premature showdown with the world’s sole superpower. Such views push the bounds of acceptable public debate in a nation where dissent can lead to censure or even jail time, and are particularly bold given Xi has amassed unrivaled control while leading China to a more assertive role on the world stage.

[…] “It seems like Chinese officials were mentally unprepared for the approaching trade friction or trade war,” Gao Shanwen, chief economist for Beijing-based Essence Securities Co., whose biggest shareholders include large state-owned enterprises, wrote in one widely circulated commentary.

[…]  The essays have been noticed by key officials. Gao’s piece was circulated last week among bureaucrats at the Commerce Ministry, which has been on the front lines of the trade dispute, said one agency official, who asked not to be named because the discussions were private.

Other officials expressed skepticism about the senior leadership’s strategy in discussions with Bloomberg News last week. One Finance Ministry official said the country had made a “major misjudgment” of the U.S.’s commitment to a long-term confrontation with China.

[…]  “People are going to look back at this year as the pivot point when Xi Jinping overreached and sparked an international backlash against the party and China’s development model on multiple fronts,” said Jude Blanchette, China practice lead at Crumpton Group in Arlington, Virginia, and a former Conference Board researcher in Beijing. “There can’t be a domestic backlash because most of what they spend their time doing is thinking about how to stop that.”  (read full article)

Plant your trees in another man’s orchard, and don’t be surprised if you end up paying for your own apples!

Again, the key dynamic: The U.S. economy can survive without importing durable goods; the Chinese economy cannot survive without exporting durable goods.  This is the unavoidable trade reality.

Now, frame that in a similar way for NAFTA.

The Canadian and Mexican economy (due to NAFTA) cannot survive without importing cheap durable goods from China to use in their assembly-based economies, and then trans-ship into the U.S market.   However, the U.S. economy can survive, it can actually expand BIGLY, without accepting trans-shipped assembled goods from Mexico and Canada

Put simply, without NAFTA, the assembly processes just moves INTO the U.S because the market *is* the United States.  We are the $20 trillion customer. We hold the leverage.


NOTE: “Donnelly said in his opening remarks that there was already a rise in product being diverted to Canada in recent years and signs of even more since the U.S. tariffs began this year.”..

This is evidence of multinationals exploiting the NAFTA loophole to avoid U.S. tariffs. This fatal flaw is at the very heart of the issue within the U.S. trade policy inside NAFTA.  As long as Mexico and Canada remain gateways for foreign good assembly and shipment into the U.S. there will never be a way for the U.S. to demand fair and reciprocal trade.

Canada knows their decades-long designed economic position as shipment/assembly trade-brokers is the central issue is the heart of the confrontation with USTR Lighthizer, Commerce Secretary Ross and President Trump.  As multinational corporations seek to avoid Trump tariffs they only exacerbate the issue.

If Canada and Mexico don’t try to stop their duplicitous NAFTA benefit scheme, they will end up with even bigger trade surpluses and become even bigger targets for President Trump.  In essence, the reason for Canada and Mexico being subject to even more encompassing Trump tariffs’ grows.

If Canada and Mexico do nothing to stop this influx; Trump will levy more than just steel and aluminum tariffs; he’ll likely tax their auto-sector.

As a consequence Canada moves do back-down Red Dragon:


The Canadian government is preparing new measures to prevent a potential flood of steel imports from global producers seeking to avoid U.S. tariffs, according to people familiar with the plans. The Canadian dollar weakened and shares in Stelco Holdings Inc. soared.

The measures are said to be a combination of quotas and tariffs aimed at certain countries including China, said the people, asking not to be identified because the matter isn’t public. The moves follow similar “safeguard” measures being considered by the European Union aimed at warding off steel that might otherwise have been sent to the U.S. It comes alongside Canadian counter-tariffs on U.S. steel, aluminum and other products set to kick in on July 1.  (read more)

The bottom line is U.S. market access is what all production countries need for their goods and the sustainability of their economies.  The same dependency dynamic applies to German autos and Angela Merkel.

Trump wants three key issues resolved with Germany and he’s holding all the leverage to achieve it.   1) He wants Germany to pay for more of NATO defense and quit shirking their own responsibilities.  2) He wants the EU protective trade restrictions removed; and 3) He wants full EU support for sanctions against Iran.

The way for Trump to achieve these three objectives against the EU is through the threats on the auto-sector (20% tariff); which mostly impact Germany.   Chancellor Angela Merkel is the EU:

EU Parliament



This entry was posted in ASEAN, Big Government, Big Stupid Government, Canada, China, Donald Trump, Economy, Election 2018, European Union, France, Iran, media bias, Mexico, President Trump, Secretary of State, Secretary Pompeo, Taxes, Trade Deal, Uncategorized, US dept of agriculture, US Treasury, USA. Bookmark the permalink.

402 Responses to China Begins to Question Their Economic Ability To Withstand U.S. Trade Pressure – Bamboo Forest Too Dense For Local Panda Population…

  1. Hillyard says:

    It is hard to comprehend any US-China trade war where China loses overall. The Bible has several old and new testament passages which refer to the Kings of the East. These obviously refer to China in some way. These are treacherous times. As successful as his presidency has been so far, any balancing of trade can only be delaying the inevitable. Let’s hope his presidency continues to be productive so the US survives a bit longer. It is really easy to see how the left, if they had they way, would bring an end to the US as a world power.

    Liked by 3 people

    • famouswolf says:

      The Bible doesn’t ‘obviously’ refer to ANYTHING. It’s all open to interpretation, so I wouldn’t worry about THAT.

      Liked by 17 people

      • Neil says:

        Well contrare…..many who say there is so much interpretation only say that out of lack of knowledge. If u don’t know what multiplication is then 2 plus 2 times 2 is a mystery. U get stuck on 4. Learn more and the guessing ends.


      • Nightstand says:

        Be careful, The Almighty does not care what you think. He cares what you do. And for your information He does say the book of Revelation 16vs.12 ” his Angel will pour out the bowl of his wrath on the great river Euphrates to dry it up so that the kings of the east can cross over” This will be in the later days , not any time soon.


    • LadyChurchill says:

      Better to read econ 101 than the Bible in this instance

      Liked by 14 people

      • mikedmccoy says:

        I’m kind of embarrassed to admit it but after my father passed away at an early age, my mother got involved with what is called pre-tribulation rapture. This movement gained currency when Israel became a nation in 1948. According to the believers, the Anti-Christ would lead an army against believers. Just before the 7 year battle begins, (tribulation) the true believers “are caught up in the air” (raptured) and taken to a safe place until Christ returns for the second time. The preachers, mainly from the Southern area our country, look at every historical event with the idea that the rapture could happen at any moment. The problem with this belief causes a definite lack of passion for America and an overwhelming passion towards the nation of Israel. It certainly is good to be a supporter of Israel but not to the extent of losing our hope of American transcendence. The belief in the rapture and belief in global warming seem to mirror each other. When it’s hotter than usual, or colder than usual, whether the hurricane season is earlier than usual or later than usual, whenever ice melts or farm animals seem to be farting more, it’s always a sign that global warming is the truth. It’s hard to convince people otherwise.

        Liked by 1 person

        • GB Bari says:

          OTOH….the simple explanation (!) is that our solar system is currently passing through one of the two intercepts of the the Photon Belt in the Solar Systems 26,000 year revolution around the good ol’ Milky Way galaxy. Lots of stuff & changes happening because of that – much of it good.

          Do a careful search on this topic and keep an open mind for some interesting information.

          Liked by 5 people

          • G. Combs says:

            Speaking of said…
            The Milky Way Galaxy’s Spiral Arms and Ice-Age Epochs and the Cosmic Ray Connection
            One of Dr Niv Shaviv’s more interesting articles. If you have not read any of his articles you are in for a treat.

            And a more recent article: Finally! The missing link between exploding stars, clouds and climate on Earth By Henrik Svensmark and Nir Shaviv

            “Our new results published today in nature communications provide the last piece of a long studied puzzle. We finally found the actual physical mechanism linking between atmospheric ionization and the formation of cloud condensation nuclei. Thus, we now understand the complete physical picture linking solar activity and our galactic environment (which govern the flux of cosmic rays ionizing the atmosphere) to climate here on Earth though changes in the cloud characteristics. In short, as small aerosols grow to become cloud condensation nuclei, they grow faster under higher background ionization rates. Consequently, they have a higher chance of surviving the growth without being eaten by larger aerosols. This effect was calculated theoretically and measured in a specially designed experiment conducted at the Danish Space Research Institute at the Danish Technical University, together with our colleagues Martin Andreas Bødker Enghoff and Jacob Svensmark[…]”

            Liked by 3 people

            • Mujhunter says:

              Interesting that you mention this.. I’ve been spending the past few weeks delving into the prospects of a Grand Solar Minimum and the likelihood of a long duration cold period.

              Svensmark’s work on Cosmic Rays and Cloud nucleation (which increases the Earth’s albedo, reflecting solar energy) has been interesting. They are also researching it at CERN (CLOUD project)..

              The ironic thing is that, if the hypothesis of impending cold is correct, we can expect to see Canadians fleeing to the US as their crops fail and the winters become unbearable. China and Europe will also get smashed as well by the colder temps and crop losses (think Maunder Minimum and Little Ice Age)..

              i suggest you watch Adapt 2030 on youtube.. He’s follows Svensmark’s work and provides a lot of documentation to back up his views on the Grand Solar Minimum..



          • snailmailtrucker says:

            Research “The Electric Universe” and “The Thunderbolts Project” on YouTube !

            Mind Blowing Facts that Blow the Big Bang to Smithereens !


            • jackokie says:

              Plasma Cosmology, and the more detailed Electric Universe, present a consistent and believable alternative to the “Standard Model” where gravity alone is thought to prevail. I have yet to find anyone who has been able to truly falsify the theory of the Electric Universe. Unfortunately all the criticism I’ve seen resorts to ad homs and / or misstating the points of the theory. Hmmm. Much like the thermageddonists (I saw that term the other day and have been itching to use it).


          • David A says:

            26k years is not our revolution around the Milky Way.

            You are thinking of the progression of the equinox.


            • kroesus61 says:

              it is the rate of our Solar System rotation actually it is slightly more than 26k…..God has a bit of a sense of humor…..Big Bang Theory postulates a swirling mass condensing to form the heavenly bodies…..not only is Sol spinning too slowly for this but recent discoveries of two comets that do not follow the crowd also speak against this….they rotate counter to the trillions of chunks of rock in our Solar System but only 2?…..known so far

              Liked by 1 person

        • squattybody says:

          First, for full transparency, I am a devout follower of Jesus. And I am also a pre-tribulation, pre-millinialist. However, let me be the first to say that doesn’t all go together. One is a practicing faith based on knowledge, the other is just what I believe. Second, I do support the nation of Israel but it’s because according to one of God’s promises, people who do so are blessed. As an American that may make me seem selfish but so far it seems to have worked for this country. And I didn’t say it, God did so if you have problems with that you’ll need to take it up with Him. Finally nothing man can do is going to destroy this planet. It will be destroyed but not until after the rapture, followed by 7 years of tribulation and after Jesus reigns on earth for 1,000 years. Then God will burn it up and replace it with something much better.

          Ok, I had to get the pre-trib, pre-millinialist part in there! 🙂

          But until then “read the bible, it’s great for your soul” and

          MAGA on!

          Liked by 5 people

        • Paul Paul says:

          Look up Ellis Skolfield… NOT Schofield.


        • kroesus61 says:

          whereas a mid or post trib rapture would give just a SLIGHT clue about the time of His second coming which the Holy Bible clearly tells us is NOT the case


        • Nightstand says:

          Don’t be embarrassed for what you don’t know. There will not be a free ticket , one way ride , rapture after a 5 coarse Sunday dinner. You are not getting out of this world alive. The 7 years ,of all the good people raptured , while all the bad people are suffering on earth for thier wrongs does not hold water. Read it for yourself, don’t let a paid religious expert tell you what he thinks you should believe it says.


    • jb says:

      Okay . . . no bad intent here . . . BUT –

      Questionable Biblical interpretation is not a measure of what’s what.

      Using a premillenial approach is hardly any assurance of, well – anything!. That heresy was condemned by the Church many centuries ago.

      China has a bit over half our GDP – like Europe, they are not a threat.

      And if they try to be a threat – well . . . that’s their call. I would not advise it.

      Liked by 1 person

    • Bastiat says:

      It always amazes me, people who have bought into the “China will pass the US” propaganda.

      The only way that happens is if we allow our “betters” to make it a reality. They are a subjugated people. They do not have the freedom to be creative and break the mold, to bring the new ideas that expand economies. The most they can do is copy what free people do. They will always be behind us as long as they are un-free.

      Liked by 2 people

    • Peter says:

      So now we’re into theology and not economic or geopolitics.

      Liked by 1 person

    • Rob says:

      Really, truly, even for those of us who believe in God, the Bible is NOT an economic textbook!


    • Louis Genevie says:

      Apparently, you didn’t read the article. Try again.


  2. ristvan says:

    There are two big reasons that won’t happen (IMHO as PhD level economist plus MBA plus JD).
    First, a reserve currency must be politically and financially ‘stable’. US with Fed Reserve and world’s largest economy is. China with manipulated yuan isn’t—politically maybe, but fiancially not—-China efforts to price oil in yuan (a step toward yuan as a reserve currency) are failing. EU euroobviously isn’t—see Greece, Brexit, and now maybe Italy. Nobody else is big enough to even try to play. And there is not enough gold in the world to be a dollar substitute, let alone after unpegging gold-dollar in early 1930’s gold isn’t sufficiently stable.
    Second, dollar as reserve currency is intertwined since WW2 in many very long term contracts (think oil, long bonds, airplane leases). So there is the old positive marginal returns to scale factor in the dollar that leads ‘inevitably to ‘natural’ monopolies like MS Office sw (which started with Excel) over Lotus 123, or VHS over Betamax as the videotape standard, or Google search over MS BING (although their increasingly evident search biases are foolishly opening opportunities for DuckDuckGo).

    Liked by 6 people

    • piper567 says:

      ristvan, thanks for your input. Helpful and comforting.
      always nice to hear from you.


    • PgtSndThinker says:

      @ristvan, all that lovely education, and a treeper to boot! Your parents must be proud. Could someone please refresh my memory on the concept of “positive marginal returns to scale”?


      • ristvan says:

        I will refresh it. Technically, says at least one of the normal slopes of classical microeconomic supply and demand curves are inverted. Usually, demand slopes down to the right (the more you eat, the less hungry you are) while supply slopes up right ( the hungrier you are, the more you will pay for food). Slopes are expressed as sign of first derivative of the supply/demand functions. Wiki has acceptable explanations and graphics.
        This ‘normal’ supply/demand stabilizing equilibrium where supply=demand in this math gets upended if the demand curve slope inverts. In the food analogy, the more you eat the hungrier you get. That actually happens (positive marginal rather than diminishing marginal return) whenever the more people use something the more valuable it gets for them. Take Betamax vs VHS videotape. Betamax was a technichally superior technical standard, promoted proprietary by Sony. VHS was everybody else, albeit inferior. So movie studies put out movies in both, but people bought much more VHS because many more different brand VHS players. The battle ended in less than 1 yr. VHS won decisively, because studios just wanted to sell as many movies as possible.

        Liked by 1 person

    • ristvan says:

      The pound lost because the British empire lost. A shared risk pool does not solve the pool political risk issues. Shared Euro risk has not stabilized the Euro. See exhibit 1 Greece.


  3. abdiesus says:

    I don’t know whether anyone else happened to notice, but as late as yesterday I recall seeing an article on Bloomberg which still said that the Chinese stock market was well-positioned to withstand a trade war with the U.S. Today, not so much.

    Of course, that previous article cannot be found an longer – typical of the anti-Trump media that they usually try to cover up their failed attempts to gas-light – at least once the cat is out of the bag.

    One article that did survive was this one from two days ago:

    Which, in the context of the general weakness of the Chinese economy described by sundance above, takes on added significance.

    Liked by 11 people

  4. Scott says:

    I’ll take winning for $2,000, Alex.

    And the answer is…Sundance and President Trump.

    Liked by 13 people

  5. magatrump says:

    Excellent explanation again SD. God bless you SD. Isn’t funny how none of these countries ever thought President Trump actually means what he says? MAGA

    Liked by 11 people

  6. hellinahandbasket says:

    I just realized what I love most about you, Sundance – with articles that make our blood boil, and articles that may us go “hmmm”, or articles that make us go “YAY YAY YAY” – You ALWAYS manage to insert a bit of levity, specifically through the photos/graphics you include.
    The Kung-Fu Panda slurping-up noodles, nailed-it for me! {wink}
    Thank You.

    Liked by 11 people

  7. MIKE says:

    Give me the dunce cap, as I am having a hard time figuring out what is so ‘durable’ about Chinese exports.
    And… Their seafood/shellfish taste like cardboard crap so I don’t buy it anymore. “Previously frozen, farm raised” kills my appetite.

    Liked by 6 people

  8. No_BlahBlah says:

    Want to really see China blink?

    Announce that in addition to the trade barriers to American food products sales to China,

    All present and Future food trades with the communist control economy will incur a 10% EXPORT tax collected by the U.S.
    Maybe higher

    Liked by 4 people

  9. Mercenary says:

    Bankrupt China.

    Bankrupt Iran.

    Destroy Germany’s auto sector and Frau Merkel’s seat of power.

    Drive Canada into recession.

    Make America Great Again.

    Liked by 1 person

    • Publius2016 says:

      Actually the plan is to reset the equation so there’s more balance…Iran needs to stop supporting terrorism too!

      Liked by 8 people

      • Mercenary says:

        Trump wants regime change in Iran. He’ll get it, too

        Liked by 4 people

      • The Demon Slick says:

        President Trump is going to make them be competitive. That means limited government and freedom, or failure.
        President Trump knows exactly what he’s doing. It’s time they stopped having so many luxuries, like global warming and open borders.

        Liked by 4 people

        • wheatietoo says:

          They can have all the luxuries they want…but we shouldn’t be forced to subsidize them.

          And that’s what has been going on.
          We protect them…at our expense.

          And yet, they screw us over with high tariffs on our goods.

          They should be paying for their *own* defense.
          And they should suffer the Same Tariffs on their goods that they put on ours!

          Liked by 8 people

    • David A says:

      That is NOT the plan.

      Liked by 2 people

      • David A says:

        The plan is real fair trade, and Trump already offered that.

        Liked by 3 people

      • Mercenary says:

        You do realize Trump wants 0 deficits, right? That means China loses 375 billion in trade. Period. Their economy is a mirage of mirrors and smoke, with hidden debts, front companies, and leverage everywhere. You think China can lose 375 billion in trade?

        Trump’s policies will lead a lot of nations to recession – he’s just not saying it. He’s openly bankrupting Iran to force regime change. The plan is obvious.


        • wheatietoo says:

          Bankrupting other nations is not his plan.

          It may be a By-Product…but it is not his plan.

          Mercenary, you are implying that it is somehow ‘our responsibility’ to pump up the economies of these other countries.

          Why are we required to be Broke…so that their economies stay healthy?

          If their economies have prospered by taking unfair advantage of us, then why is it wrong for Pres Trump to stop that predation?

          Let these countries figure out a way to prosper without preying upon the US.

          They have been putting their countries First.
          Why is it wrong for us to finally do the same thing?

          Liked by 8 people

          • Mercenary says:

            I actually think China should go bankrupt. Same with Iran. I have zero problem with what Trump is doing.

            Liked by 2 people

          • piper567 says:

            Gunny, I like your take, such like this:
            “Let these Countries figure out a way to prosper without preying upon the U.S.”
            THIS is what Trump offers us!
            The US prospering w/o preying on anyone. We can set the example here.
            China in particular, but also EU, have no CLUE as how to prosper w/ screwing Someone.
            I think they are in shock that the party is over. As Trump says,
            Not gonna happen any more.
            I believe this is what he’s talking ab when he says: Fair Trade.

            Liked by 5 people

        • Questioning says:

          It’s actually more than that, $375B is speaking only to the bi-directional trade imbalance between the USA and China. When you factor in counter trade the number is closer to $1.5T. The amount the Chinese GDP is over stated.

          Liked by 2 people

  10. Doug says:

    It’s truly amazing that Germany did through the EU what it fought many wars over… was genius on their part ill give them that …

    Liked by 3 people

    • Publius2016 says:

      It’s not Germany…it’s Globalism…West and East German unification had led to the demise of Germany.

      Liked by 1 person

      • Cuppa Covfefe says:

        Yep. The wall came down in the wrong direction. The globalists pulled a fast one on Kohl (who thought it would be his life’s achievement), as well as the rest of us.

        Many of those in the current, and last few German administrations are from the DDR (and/or lean heavily Marxist). But Mutti is in trouble, and the CSU is looking to go national (again – Kohl cut a deal with them to make them Bayern-only) so it could get really interesting. We “proles” are NOT happy. And September in Bayern (elections) is not that far off. Could be a nice Oktoberfest this year for Deplorables in Germany 🙂

        (And on the globalists’ menu: HHGTTG bangers and beer – “joyless tubes, full of gristle, accompanied by yellow water with gas in it” [-Douglas Adams])…

        Liked by 3 people

        • piper567 says:

          cuppa, don’t want to derail here, but I am interested in what you said ab the Wall coming down.
          Can you recommend any reading/sites which have actual info ab what happened when the wall did come down? I was unaware it was so obvious, what you have sia ab it being “a fast one”.
          really interested.
          Thanks for any help or guidance.

          Liked by 1 person

  11. citizen817 says:

    Even more winnamins!

    American money flowing back into America

    Over $300 billion was repatriated to the U.S. in the first quarter, according to the Bureau of Economic Analysis (BEA) — the most on record.

    The BEA notes the main driver of the repatriation surge is that companies are no longer taxed on foreign earnings when returning the funds to the U.S. “We fixed that really, really stupid thing” said Hassett. By comparison just $38 billion was repatriated during the same period a year ago.

    Liked by 8 people

  12. rmramerica says:

    Just a couple of comments; the conundrum with Canada and Mexico is that they desperately have to find other revenue streams to replace what will be lost with their brokerage advantage of NAFTA disappearing. That’s what they are looking for, some kind of revenue off-set. That’s the $64,000 question. How and what will it be in a revenue source to replace what they’re losing. Until then, they’re screwed. Also, this nonsense with China having some advantages by imposing grain (beans) tariffs to damage our exports. Where do you think China is going to get the beans? Brazil? And where do you think Brazil is going to get them? They will call Cargil, Bunge, ADM etc. and ask for us to barge the beans down there (like they always do). And if it’s a wet spring in Sao Paulo and 10% of their crop has disappeared, what then? They’ll plant the beans on the beaches of Rio? Brazil exports their beans, but they have established customers. Now they’re going to all of a sudden find an extra hundred million acres to just to satisfy the Chinese? Don’t think so. This will all work it’s way out in the markets. The real challenge is how all these international characters are going to save face. Trump will be winning too much by then.

    Liked by 13 people

    • GB Bari says:

      They only need those revenue streams to fund their “utopian” socialism. If they’d back off most of that never-successful economic model, they might suddenly find that a unencumbered and re-incentivized populace can actually provide much for itself.

      Liked by 8 people

      • piper567 says:

        GB, Trump’ll show them how.
        All they have to do is watch.


      • Rob says:

        But we all know that won’t happen, they would rather cease to exist as a functional, self-sustaining country than give up their socialist agenda. It’s driven by evil, by satan, and he doesn’t care.


  13. CNN_sucks says:

    The economic model of china is flawed. Centralized goverment and wealth concenrated to .01 % (government officials) does not work. The news about china’s emerging middle class is a myth. China continue to impoverished their people to keep that control.

    Liked by 6 people

    • Paco Loco says:

      I fully expect that the Chinese Communist Party will not live to see another decade. State control of the economy is a receipt for disaster. The old economic problem of business survival comes down to cash flow, cash flow, cash flow.

      As the balance of trade equalizes, the problem with Chinese economic models will be exposed as GDP will fall and unemployment will rise putting pressure on the CCP leadership to fix it. There won’t be sufficient cash flow to keep the state owned industries afloat without massive government subsidies. Eventually they’ll go broke.

      The danger for the world is the Peoples Liberation Army is huge and there’s a lot of mouths to feed. Chinese leadership has always tried to blame failures on the foreigner and the danger is that they will put the blame on the US.

      Liked by 3 people

    • Esperanza says:

      I was just thinking, and the Western democratic model proves its superiority again. They can’t even whisper hey you’ll bankrupt, starve us. Say what you like about the US, but dissent is HEARD. Also the Chinese copy our 19 th/ 20 th century model, but we consumed what we made. Our model made the lower classes comfortable.


  14. Patriot1783 says:

    “Bamboo Forrest too dense for local Panda population.”

    Liked by 4 people

  15. CMDCMRET says:

    I made another small investment in US Steel today…Springfield 1911A1…keep your head on a swivel treepers! More winnAmins!?

    Liked by 2 people

  16. Normally Quiet Observer says:

    To basically sum it all up, IMHO … most of the world’s economies RELY HEAVILY on their ability to sell in the US marketplace. Yet, up to now they have placed enormous restrictions of all kinds on US goods being sold in their countries. So we get massive Trade Deficits with them. President Trump is changing all that, and they don’t like it! It is slowly becoming evident to them that they either “play ball” with our President, or they can sit back, and watch their own countries reduced to a pittance of their former selves. What I think President Trump is saying to them, and I totally agree is: “Co-operate, and everyone wins. Fight us financially on this, and the American monetary boot on your necks will just add a little more pressure until your neck breaks. You choose.”

    Liked by 4 people

  17. Dutchman says:

    Just as people in dc did foolish things cause “she was supposed to win”, ALL these countries have put themselves in extremely foolish positions, cause they assumed not just that SHE would win, but that any admin. would continue trade policies of the past.

    And, without DJT, they would have been right. Rep or Dem, they would have been globalist.

    And so China, Germany/EU, Mexico/Canada, because of this now unwarranted overconfidence in the status quo, are well,….screwed.

    Nothing they can do, individually or collectively. Expect a lot of pressure on their quislings in Congress, and continued soros group ‘dump Trump’, red-hen tactics, which will have -0- effect.

    Great analyses as always, S.D.

    Liked by 4 people

    • MVW says:

      Subsidized, but touted, European Socialism has failed, been bailed out by the US many times. At this point the failed grand importation of millions of muslims whose subsidies will overload a sinking boat will have the unappreciated American subsidies pulled.

      The ‘Big Dream’ of World Socialism fake utopia is going down in flames.

      Soros should be proud. He has successfully killed Socialism in our lifetime. It only remains to be seen if Europe will follow Trump’s prescription to MAGA or if they will bury their collective heads where the sun does not shine.

      Reality is a harsh mistress.

      Liked by 7 people

      • Deplorable_Infidel says:

        ” if they will bury their collective heads where the sun does not shine.”

        That is the “default position” for all die -hard socialists and those following the Soros NWO.

        Liked by 4 people

    • 🍺Gunny66 says:


      Your post just about says it all and very accurately.

      In others words, your one of the “big boys”, and you look at the world and say;

      “Who has the most wealth, how do we get it, and who do we have to pay?”

      “America”. “OK” “Let’s make trade deals and create tariffs to isolate America so she only pays out”

      “Let as many foreign invaders in as possible so they can be put on Government support and not have the skills or motivation to enter the American work force”

      “Then we will just suck the country dry”

      But as said many times, she lost, and we elected a Patriot business man as President.

      Isn’t America just a great place to live?

      Liked by 4 people

      • piper567 says:

        Gunny, well said.
        and, yes, America is just a great place to live!


      • svenwg says:

        If I could I would live in the USA, work hard to become a citizen and contribute to making and keeping America Great even though since it’s inception it has been the Greatest Country on Earth.

        Sadly, I am a 60 year young amputee that has no country but works in a country that is trying it’s damndest to become a Caliphate. The country I grew up in is no more but for it’s name and my wife who was born a Rhodesian had her passport destroyed by bob McGarbage’s thugs does not even have a country in name as it was changed to Zimbabwe (Ruins).

        Liked by 1 person

        • pacnwbel says:

          Svenwg , how very sad to be dispossessed as you are. We do not hear enough about the ruination of Zimbabwe and latterly South Africa. The Rhodesias were prosperous functioning countries until they took on independence, all the knowledge and expertise put into bringing Africa into the modern world has been jettisoned for the sake of communistic socialism.


  18. Clarioncaller says:

    The Chinese government cannot deliver enough potable water to its citizens or farmers. This is their MASSIVE Achilles Heel.

    Liked by 4 people

  19. Lucille says:

    It’s going to be a sad day in Leftiedom when China has to play fair. Lefties have praying to Alinsky that China would box our President’s ears and give him a fatal gut punch. Ain’t gonna happen, losers!

    Liked by 4 people

    • piper567 says:

      Lucille…its really sad that these cretins would rather USA fail than succeed.
      I just today saw the clip of Maher (sp?) hoping for a new recession so we can get rid of Trump.
      I just don’t get it.
      In any other Country he would be unemployed.

      Liked by 2 people

  20. Deplorable_Infidel says:

    “President Trump has all the factual leverage.”

    I can barely wait for all these naysayers on the so-called “business channels” to try and spin that when “Joe Sixpack” in flyover USA realizes that he has been sold out by BOTH political parties the past few decades.

    There really cannot be a “trade war” like most people are yapping about. (Just like there can be no “Russian collusion”!)

    I wasn’t interested all that much in politics when I was a teenager in the 1970’s. However, I could not make sense of millions of dollars in “foreign aid” and “NATO subsidies leaving our country.

    Liked by 2 people

  21. Bill says:

    I don’t think people entirely grasp what President Trump is doing, but it’s a reminder of SunDance’s posts.
    Sure, President Trump is a realtor tycoon, but he is also a business man.
    Trump is running 50 different programs simultaneously in Washington. Trump has picked the best people to run these programs. A great deal of the he tax cut was hidden behind the scenes, last week suddenly President’s Trump’s team has a complete govt re-org plan for Dept of Education & Labor, then a North Korean summit to de-nuclearize the Korean, anyone remember that Dept of Interior was assigned to identify top strategic minerals that the US needed (and that report was already delivered).

    Trump is running his operations as a business giant would and does operate.
    How do I know…Because Larry Ellison runs Oracle in the identical manner. Running on ALL cylinders all the time….

    Liked by 1 person

  22. A2 says:

    This is an article from the businesses that will be affected by the US tariffs, particularly note in the quote below, how they intend on coping, exposing again the flaws of NAFTA and NAFTA-type trade agreements.

    “Exporters in China’s manufacturing heartland brace for impact of US tariffs”

    “Export-oriented businesses in China’s manufacturing heartland Guangdong say they are bracing for pain after the United States escalated trade tensions with the country.
    With Washington due to start imposing 25 per cent tariffs on the first batch of Chinese products next week, some exporters are worried that it could erode their price advantage, and that orders from their US clients will dry up, according to manufacturers and analysts.
    Those who will be hit directly by the duties are scrambling to find ways to manage the impact, including raising prices for US buyers, shipping products to another country before sending them to the US, and even relocating operations to other countries such as India, Vietnam and Mexico, they said.”

    Read more here:

    Liked by 2 people

    • TheWanderingStar says:

      Humm. “…trade hostilities…” No mention of trying to find a mutual equilibrium. To be sure, it will be an interesting match to watch over the next couple of years.

      Liked by 1 person

  23. A2 says:

    “China cuts tariffs on imports from South Korea, India and others as trade war with US looms
    Beijing will slash duties on a long list of goods from five countries”

    “China on Tuesday announced a long list of tariff cuts on imports from South Korea, India, Bangladesh, Laos and Sri Lanka that will take effect on July 1, amid an ongoing trade skirmish with the United States.
    The cuts are part of China’s commitments under the Asia-Pacific Trade Agreement signed by the members of a small regional trade bloc that China joined in 2001, before its entry to the World Trade Organisation. The six members agreed to the reduced tariffs in 2016 after a decade of negotiations.
    Beijing’s decision to put the agreement into effect next week – five days before US President Donald Trump will impose 25 per cent tariffs on US$34 billion worth of imports from China – comes as the Chinese government tries to rally support to fight “trade protectionism”.

    Liked by 3 people

  24. A2 says:

    “China must stop fooling itself it is a world leader in science and technology, magazine editor says
    Leadership has been hoodwinked by overblown claims of nation’s capabilities and achievements, editor-in-chief of state-run industry journal says”

    “China is fooling only itself if it thinks it will soon overtake the United States as a world leader in science and technology, according to the boss of a state-owned publication dedicated to the subject.
    With the world’s two largest economies embroiled in an escalating trade dispute, the comments made by Liu Yadong, editor-in-chief of Science and Technology Daily, which comes under the supervision of the Ministry of Science and Technology, were unexpected.
    “The large gap in science and technology between China and developed countries in the West, including the US, should be common knowledge, and not a problem.” Liu said.
    “But it became problematic when the people who hype [China’s achievements] … fooled the leadership, the public and even themselves.”

    (I wonder if Mr Liu will take a sudden vacation and disappear….).

    Liked by 5 people

    • piper567 says:

      wow, A2, thanks a million for this info.
      just wow.
      geez, how dumb can they be to ignore this Liu Yadong guy?
      and how brave is he?


  25. Cooper45 says:

    While some in the USA are feeling the trade tension, here are a few quotes from Canada regarding the pressure some in Canada are beginning to feel (just from the auto industry) while Justin sulks and Chrystia lectures on progressive ideals.

    –“Alarming testimony before the international trade committee suggested that without government assistance, previously healthy businesses will go under within weeks…There was an almost tangible sense of fear in the room about the consequences of Trump imposing a similar tariff on autos….The Liberal government’s time would be much better spent working out how to keep the fires burning at places like Patriot Forge — and preparing for the nightmare scenario of Canada’s largest manufacturing sector being decimated.”

    —“Bob Verwey, president of Owasco… said his house, his family and the jobs of his 220 employees are on the line. “I believe Trump is a bear and we shouldn’t be poking him too much. Please step quietly,” he urged the MPs.” (John Ivison June 26, 2018)

    Liked by 4 people

    • KBR says:

      “Trump is a bear and we shouldn’t be poking him”

      Actually the American people are awake, the Sleeping Giant Eagle has been poked enough already.


    • Esperanza says:

      This whole thing reminds me of a divorce. Hen pecked spouse saying enough. Partner laughing in their face. Spouse walking out the door. Partner re-reading watertight pre nup. Lol.

      This is econ 101.


  26. ForGodandCountry says:

    Liked by 4 people

  27. CNN_sucks says:

    From TGP, Crowley a 10th term incumbent lost to a commie/socialist. The democratic party are being purged by socialists fraud with promises of free for all. Oh, lordie.


  28. Lynn Martin says:

    I disagree that the Canadian economy can’t survive without the US. The sooner Trump strikes a trade blow the better. It will cause a temporary recession that will be better for Canada and decrease immigration.
    Provincial trade barriers are mostly removed. Trade will flow east to west in Canada. The idea of Canada as a branch plant economy shipping goods made with Chinese parts into the US needs to go. Canada needs to move away from the dysfunctional USA.
    Get out of NATO for a start and use the money to build Canadian nuclear weapons for defense. Then get out of free trade deals and negotiate one on one with other nations. Build the local economy in Canada and keep out imports so that the nation will be self sufficient.


  29. The Link pasted below, details what we have been going through while presidents and wars interrupted our lifestyle of peace, family and capitalism. Viewing for those not cognizant, courtesy of the military and their intelligence:

    Liked by 1 person

    • wheatietoo says:

      Excellent video…I had seen it before, but watched it again just now.

      Saw things in it this time that I had missed the first time.
      Now, I think I should watch it again soon.

      I love Q’s message.
      So I pray that he/they are for real.
      Love the “WWG1,WGA” motto, too.

      Liked by 2 people

  30. gda says:

    I do believe Pres. Trump is willing to do a fair deal with all countries.

    For China, his aim is not to go from $500B to $0 in the blink of an eye. He wants to see the deficit shrinking. The degree of shrinkage is negotiable, depending on the willingness of the Chinese to cooperate to slash the theft of technology etc.

    Similarly Canada. He’ll do a deal that won’t result in a Canadian recession, if only Justin would only put on his big boy pants, apologize, fire that infernal woman, and come back to the table.

    The trouble is, apart from being a liberal airhead, Justin and his merry band were pals with the Clinton/Obama crew, and they convinced the Canuck Crew that President Trump was just a temporary aberration.

    They are like the proverbial deer in the headlights now.

    Liked by 1 person

  31. Vincent Piotet says:

    Lets trust our President – he is smart and spends time where it counts.
    Lets rediscover a budget discipline personally and corporately.
    Lets rediscover God’s saving grace and common grace.
    All of which have proven to work well in our past.
    We have started to turn history around!


  32. cbjoasurf says:

    The “Great Awakening” and we’re WINNING!

    Liked by 1 person

  33. Pyrthroes says:

    Certain seemingly academic but in fact real-world economic principles underlie these import-export figures, plus the relative-wealth consumer scale, to America’s extreme advantage.

    First off, “centrally planned” collectivist/Statist economies such as China’s violate the Pareto Principle’s 80/20 “Law of Sparsity”, not to mention Pareto Distribution and Efficiency. As Adam Smith succinctly put it, manipulation fails– “(Carrying) a State from barbarism requires only peace, easy taxes, and a (tolerably impartial) administration of Justice” (Rule of Law).

    China with its belligerent military/naval policies (Tibet, Taiwan), five-dozen ineffably corrupt “ghost cities”, self-inflicted consumer-production imbalances due to absence of free-market entrepreneurial risk/reward, is ill-equipped to confront Trump’s creative political-economic/socio-cultural explosion.

    For all Xi’s grandiosity, China’s long-suffering people have seen his kind since Confucius’ Warring States millennia ago. But in Peking’s ChiCom fever-swamps, native ability, high intelligence and talent, count for naught. “The moral is to the material as three-to-one”… Trump cuts through pestilential Marxist claptrap like a katana blade.

    Liked by 3 people

  34. Stab, the unstoppable hero says:

    Just watched Larry Kudlow on Fox Business with Varney. Full of pizz & vinegar. Quoting Mark Twain on death & telling the truth about the tariffs.
    Don’t watch much TV but I hope he goes to some other cable channels & maybe a few daily briefings.


  35. moe grim says:

    Good thoughts, but China operates on 25-50 year plans and has for decades. They thieve significant amounts of proprietary U.S. technology AND industrial methods via forced “partnerships” with U.S. corporations who operate there. Many U.S. CEO/COO (those publicly traded) focus runs 90 days/quarter to quarter to please “analysts” who seem to know very little about the industries they “analyze”. Many are outright Fools. These CEO’s, COO’s, and just as much their boards of “directors” the same mentality. Thousands of chinese nationals attend U.S. universities where R&D partnerships are funded by U.S. corporations, and attend as virtual remote agents in support of China’s 20-50 year plan. Among them Cal-Tech; MIT; Rensselaer Poly; Texas Tech; USC; Texas A&M; Stanford; UC-Berzerkley; Purdue; UofI Urbana-Champaign; Columbia; and many more. If you study (C)arefully the latest generation of U.S. Fighter jets, perhaps the problem is most obvious in the comparison between our F-35 program ($406B and yet rife with initial problems) next to China’s J-20, the burgeoning threat is clear – and not simply related to the dictates of aerodynamic requirements and/or RF reflective coating technology (ours of course). The U.S. Navy’s USS Ford ($13B) and China’s sea borne hardware the same.

    If this continues are not the results obvious? And it won’t take another 25 years given the “policies” of bush/clinton/bush/0bama and damn near an electoral catastrophe called hclinton. President Trump has defined the issue clearly. We better hope and Pray he’s successful in stopping this. Cold. Right now he’s handicapped by an absolutely intransigent Michelle McConnelle and his House kindred ilk Squeaker Ryan. More its just been revealed McConnelle and wife Elaine Chao’s (DoT) financial interests, and gains, involving family machinations in China. And from Peter Schweizer who is nobodies fool: Aside from world wars no U’S’ President has ever been up against such profound threats, and more, but his Uniparty enemies may have finally met their Match in Trump. We better Pray it’s so.

    Liked by 1 person

    • mutantbeast says:

      Agreed, I have Schweitzers book. I wouldnt be surprised at all if detyails in his book began to leak out next fall(2019) when Mitch the Beach is up fro re-election. Im betting McConHO “retires” first, when the first news stroies start becoming public. I noticed Joe Bite Mes son also suddenly has decided politics isnt for him, either.


  36. mutantbeast says:

    what Bloom Turd WONT say is that RED China is going to starve to death w/o western factories there. Its a COMMUNIST country Bloomin Turd, they dont want to have prosperous consumemrs there. They NEED Western factories there since the COMMIES dont have the brains or desire to do whats needed to makle the average citizens life better. How many people died of starvation under the likes of Mao or Pol Pot? Thats what communism is, a fact that propagandist Bloom Turd conviently chooses to ignore.


  37. Wee2low says:

    It’s funny watching the uber free trade wonk’s (cough, Levin, cough Shapiro) pearl clutch over the steel and aluminum tariffs. I think they’ve spent the better part of 2 days talking I told us so’s over the announcement of Harley Davidson’s move overseas. One thing I think many Levin/Shapiro fanboys have failed to ask their fearless leaders is, how do you get to a free market environment with players who don’t want a free market? Cue the crickets. I think this announcement is Big Pandas, “uh oh PTRUMP ain’t playin'” moment. Sort of the like the showdowns in the old spaghetti westerns when the villain’s eye’s go from mean and nasty to soft and scared when he realizes that the hero is not only not bluffing, but faster.

    Liked by 1 person

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