Re: TRADE WARS

Posted by wisbaker on June 24, 2018 at 11:24:36 from (173.30.37.8):

In Reply to: Re: TRADE WARS posted by flying belgian on June 24, 2018 at 07:56:22:

I suspect we'll redirect most of the beans to other markets. The local CNH dealer sponsors a agricultural economic pontificater on the radio every morning. either the 3.5 and 4.0s I got in economics when I was in college was a lie, or the laws of economics have changed since I got out of school or this economic guru has a bigger hate for Trump than a knowledge of economics. Yes the tariff will reduce our exports to China, this doesn't mean the total market will be smaller, it means China will source their beans somewhere else. It might also mean the price China pays may be forced up if the supply of non US beans isn't enough to satisfy their needs. Other countries may export their beans at China market prices and buy our beans at sub-China market prices, eventually someone will get the bright idea to buy US beans wave their hands over them while mumbling some enchanting phrase and decide they are no longer US beans and sell them to China at a profit. We may be in the midst of a great learning experience here. I can see where the rational for "fair trade" is valid, BUT if trade becomes lopsided, if one side exports say 375 Billion more than they purchase it could be argued that that is not a fair trading relationship, the next thing is to examine the percentage of all exports you make and if you have one trading partner that accounts for more than 25-30% of your GDP and you're not balancing exports and imports with them you're setting yourself up to initiate a trade war that you're probably going to loose. If I'm not a complete moron I figure the US trade deficit with China amounts to about 28% of China's GDP and so much of the product China sells to us is manufactured so it might not be as easy for them to find a buyer for those goods, just about anyone in the world can eat soy beans but people who don't have cell service don't have much use for I phones, people with out cars don't need tires and other auto parts, parts made specifically for American cars aren't going to sell well out side of the US. It's nice to have a trading partner that runs a trade deficit with you, but it might not a sustainable plan for the long term and for you to maintain a fair trading relationship with another country may mean you establish a trading relationship where they need you as much as you need them.

On the bright side with all the whining I'm hearing from Washington about the Tariffs we may of finally found a tax that our politicians don't like! As long as both sides don't get involved in a standoff and ride the world economy into the ground waiting for the other side to fold we should be okay.

Replies:

Add a Reply! You must be Logged In to Post Name: E-Mail: Subject: Comments: Optional Link URL: Link Title: Optional Image URL: Optional Video Title: Optional Video URL: Advanced Posting Options Email Notification: If you check this box, email will be sent to you whenever someone replies to this message. Your email address must be entered above to receive notification. This notification will be cancelled automatically after 2 weeks. No political comments, hate speech or bigotry of any kind will be tolerated. Violations will be removed and posting privileges may be permanently revoked without notice.   Advanced Posting Tools   Upload Photo  Select Gallery Photo  Attach Serial No List  Return to Post  Upload Photos/Videos Choose Files from your local computer Upload one or more videos to your post. Photo filesizes should be less than 300K and Videos, less than 2MB. Formats allowed are gif, jpg, png, ogg, mp4, mov, and avi. Be sure to use filenames without spaces or special characters, and filetypes of 3 digits lower case.

TRACTOR PARTS	TRACTOR MANUALS

We sell tractor parts!  We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today. [ About Us ]