stock market was up today...

#6,676
#6,676
Thunder Good-Oil said:
Because trade adversaries aren't playing by the same rules and it's an effective incentive to leverage when pursuing an equal playing field. Plus US consumers expect the government to protect them from evil doers and that comes with a price. Why should consumers pay any tax when they buy those products?

But consumers aren't really having their rights taken away. The restriction is being placed on those on the outside coming inside our borders to conduct business. The government puts many regulations on businesses operating inside of the US and a lot of those infringe on consumer liberties even more in relative terms.
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If the U.S. puts a 20% tariff on foreign washing machines, it's not punishing the "evildoers." The washing machine manufacture isn't the one making trade policy. It's the foreign government.

And why should an American who's buying a washing machine care how much wheat country X is buying when he's shopping for a washing machine?
 
#6,677
#6,677
Velo Vol said:
If the U.S. puts a 20% tariff on foreign washing machines, it's not punishing the "evildoers." The washing machine manufacture isn't the one making trade policy. It's the foreign government.

And why should an American who's buying a washing machine care how much wheat country X is buying when he's shopping for a washing machine?
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The tariffs are all about putting pressure and exercising leverage on the Chinese for their unfair practices (stealing intellectual property, closing their markets, etc.), and trying to get them to change their ways. The tariffs aren't on every foreign country. They are on China, and were proposed on Mexico for leverage. We have been talking to the Chinese for 20 years, and that has not worked. What would you do?
 
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#6,678
#6,678
Velo Vol said:
If the U.S. puts a 20% tariff on foreign washing machines, it's not punishing the "evildoers." The washing machine manufacture isn't the one making trade policy. It's the foreign government.

And why should an American who's buying a washing machine care how much wheat country X is buying when he's shopping for a washing machine?
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It is working, it is forcing the Chinese, who basically run and own all of these companies, to lower their costs and as well, eat the import duty and taxes. Many are eating the freight as well.
 
#6,679
#6,679
Tariffs and economic sanctions are in the tool box used to change the bad behavior of certain, targeted nations. Better that the collateral damage is that some consumers are not getting all the dollar store chotskies as cheap as possible than civilians bleeding out somewhere.

A 20% tariff would be appropriate when governments subsidize domestic producer's foreign competitors.
US consumers also pay up to 9 or 10% for the privilege of buying any washing machine.
 
#6,680
#6,680
1972 Grad said:
The tariffs are all about putting pressure and exercising leverage on the Chinese for their unfair practices (stealing intellectual property, closing their markets, etc.), and trying to get them to change their ways. The tariffs aren't on every foreign country. They are on China, and were proposed on Mexico for leverage. We have been talking to the Chinese for 20 years, and that has not worked. What would you do?
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The tariffs haven't just been against China. We had them against Canadian metals until a month ago. Could be against European/Japanese cars in the future.

It's a blunt tool being applied to a hammer at a host of issues.
 
#6,683
#6,683
Velo Vol said:
The tariffs haven't just been against China. We had them against Canadian metals until a month ago. Could be against European/Japanese cars in the future.

It's a blunt tool being applied to a hammer at a host of issues.
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They are a tool. What tool would you use on China?
 
#6,684
#6,684
1972 Grad said:
They are a tool. What tool would you use on China?
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We're not going to be able to solve all the issues with China at once, as we were seemingly attempting to do. (I'm guessing the negotiating demands are being scaled back for any talks with the G-20).

Now it sounds like Trump's setting his sights on Vietnam, which is an alternative (and could place pressure) on China. Go figure.

Any substantive changes to China, if possible, are going to require collective pressure on multiple fronts. The U.S. isn't going to fix it alone. Yet we're continuing to throw our allies under the bus.
 
#6,685
#6,685
Not that I'd buy any, but I'm wondering what's up with bitcoin. This doesn't seem like a satisfactory explanation. You're concerned about uncertainty, so you buy bitcoin?

 
#6,689
#6,689
How low are interest rates going?

D-hQ44qUIAAzSAp.jpg
 
#6,691
#6,691
Velo Vol said:
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Traders. Buy on the rumor and sell on the news. Short term swings. Value in equities is built over a longer time horizon and it's driven primarily by bottom lines. Getting rid of the oppressive corporate tax policy really helped the markets and the economy. Promoting fair and free trade (by using tariffs to punish cheaters) can create short term resistance but will create long term benefits.
 
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#6,695
#6,695
#6,696
#6,696
Velo Vol said:
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What do companies do when they expect prices to spike? They buy more BEFORE the cost of the goods increase. Plus I would expect imports from Mexico to pick up as we wage war with China. With Canada, we can use their oil to feed our refineries as what Iran and Venezuela can't sell what they pump.

Don't forget. The intent with the non-Chinese partners is primarily establishing an even playing field. Trade imbalances aren't necessarily a bad thing (as some posters have pointed out earlier in this thread).
 
#6,698
#6,698
LMAO! Stronger than expected jobs report showing a still health economy.

Markets: “Oh no! We aren’t gonna get our rate cut!” Markets drop.
 
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