With hordes of overweight, single mother, future tax burdens bum rushing our near non-existent southern border, it’s easy to forget there is an economic war raging in the background. This is by design, because the j-left resistance to an America first agenda does not want you to know the Chinese are getting their teeth kicked in, financially speaking. If there is one thing that can be said about our dear glorious, golden-haired leader, it’s that he knows money.
A week before the midterms an article came out, presumably trying to scare anyone with investments in the region. According to Reuters, two thirds of American industries operating in China are considering leaving or investing elsewhere. This would be bad news for American hedge fund’s profit margins, but that is only part of the story. The article followed up by stating that roughly half of those companies’ Chinese counter parts were also considering relocating to other third world hell holes. This would be a seismic blow to domestic Chinese production and their labor market. This is a direct result of the “biting” tariffs, which continue to pummel any and all who challenge America’s economic dominance.
As far as the tariffs go, President Trump specifically targeted high margin items and those also produced in other countries. It’s hard to find details about specifics, because so few news outlets are bothering to provide coverage, but it seems clear that some of the best people in the Trump admin are those following through with his economic agenda. It is estimated that Americans may pay upwards of 4.5% more for goods that fall under the tariffs, while Chinese producers are expected to see costs increase nearly 20.5%. Under these circumstances there is one clear winner. This exemplifies President Trump’s focus on this issue, as well as his understanding of the metrics involved. Now, I don’t want to pay more for things, unless there is a reason. If Americans can coalesce around some kind of economic nationalism, that solidarity could be harnessed to knock down any challenger on this planet.
Last week, China gave in to a long-standing demand of foreign investors and local citizens alike; they will cut back the time trading can be halted from three months to 10 days. This system, while giving a lot of control, would tie up mom & pop’s money as they could not reinvest assets that are frozen or sell it if there’s an emergency. This scared off investors because of the uncertainty, but also because our stock market is a lot more fluid with big firms accustomed to trading in high volume. I am not qualified to remark on the merits of which system is better, and I think short sellers like Soros need to be reigned in, but this is forcing the Chinese to capitulate to our demands. The specific reasons mentioned are “capital outflow pressures” and a “cooling relationship with Washington.” No other politician in modern history has coerced this much policy change from a foreign competitor, with little more than the stroke of a pen. This is one of the least important alterations in the grand scheme of things (namely stopping IP theft), however this will force exposure to more unscrupulous, clasped hand participants who I believe will cause Chinese protectionists to recall in disgust. Contrary to popular belief, there is only one way to skin a cat. Just like there is only one way to harness America’s fabled “soft power” previous presidents have spoken of: you hit the other guy in the wallet.