IBTimes: Donald Trump Says China Must Not Be Allowed To ‘Rape’ The US
Republican presidential front-runner Donald Trump on Sunday likened America’s trade deficit with China to "rape," accusing the Asian nation of “the greatest theft in the history of the world.” Trump, who is currently leading the GOP nomination race by a wide margin, was speaking at a rally in Indiana ahead of the state’s critical, and potentially decisive, primary later this week.
“We can't continue to allow China to rape our country, and that's what they're doing,” Trump said. “We're going to turn it around. And we have the cards, don't forget it. We're like the piggy bank that's being robbed. We have the cards. We have a lot of power with China.”
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WNU Editor: Some are disagreeing what Donald Trump is saying .... Donald Trump Is Wrong On China--Again (Tim Worstall, Forbes). What's my take. I worked in China developing trade first as a representative of the Soviet government .... later as a private citizen. The Chinese are all about tariffs, trade restrictions, and when they do buy from abroad .... it is primarily raw materials or high tech that they cannot copy. Donald Trump is 100% correct .... and if the U.S. should adopt the same trade policies, tariffs, and currency manipulation as China's .... the Chinese would find themselves priced out of the U.S. market. And as for the hundreds in billions that U.S. companies have invested in China .... they will find themselves up "shits-creek".Will there be retaliation .... probably. But since the U.S. already has a multi-hundred billion dollar trade deficit with China, I fail to see how retaliating against the U.S. will change the current situation .... in fact ... it may galvanize even further U.S. restrictions against China. Donald Trump's remarks are important because he is warning the Chinese that they better change .... unfortunately .... at least from what I am hearing from my Chinese contacts .... they are still tone-deaf .... in fact many of them feel confident that the U.S. Congress will (in the end) block him. Hmmmm .... that is a risky strategy if you ask me.
More News On Donald Trump Accusing China Of Trade 'Rape'
Donald Trump Calls China’s Trade Practice the ‘Greatest Theft in the World’ -- ABC News
Trump: 'We can't continue to allow China to rape our country' -- CNN
Trump: 'Can't Continue to Allow China to Rape Our Country' -- VOA
Trump accuses China of 'raping' US with unfair trade policy -- BBC
Trump compares China trade policy to rape in Indiana speech -- FOX News
Donald Trump in Indiana Says China Is 'Raping' America -- NBC
Experts Warn of Backlash in Donald Trump’s China Trade Policies -- NYT
Donald Trump Is Wrong On China--Again -- Tim Worstall, Forbes
These trade deals absolutely need to be renegotiated. It really does appear the US is being raped by China as is the US being raped by most other countries. Many Americans have understood this for a long time. These same Americans are grateful to hear someone in a position of leadership acknowledge their pain at least in word.
ReplyDeleteAmericans have been treated like the world's doormat for tge last several decades. They've mostly given up on the idea that tgey will ever have the same rights and be treated with the same dignity that most people around the world take for granted. Then along comes Donald Trump, at least in word representing them. While he's not my first choice, I can understand the appeal.
Unfortunately where he gets this flat wrong is where he says we hold the cards. This is NOT true. China holds the cards here. The US depends on "made in China" far more tgan China needs "sold in USA." As such, if China gets "priced out" of the US in short order, the US has no replacement for the manufactured goods that are no ,lnger available. While such a situation is the economic equivalent of a broken arm for China, it's a broken back or even a brojen kneck for America. As such, I can see the Chinese saying something like "go ahead with tariffs or whatever, make my day stupid!!" If the US destroys itself economically, I'm sure tge Chinese and the Russians for that matter would love that!!
Very respectfully I think it's been a long time, if ever, that the deal maker has had to negotiate a deal where he didn't have the advantage. If he gets elected in order for him (and America) to be successful he's going to need to adjust his approach. Time permiting I will put some suggestions in another post.
I would suggest the following. 1.) Streamline the ridiculous regulatory environment that makes it cost prohibitive to manufacture in the US. 2.)Reform the US tax code especially lowering the corporate tax rate. 3.) Offer tax breaks and credits to US companies as they move their investments in China back to the US.
ReplyDeleteDoing these things will take sone time to implement, especially point 1 as in some cases the manufacturing infrastructure will probably need to be buikt from scratch. The deal maker once stated he would shut down the EPA. in this, he is one the right track, however, there are numerous regulatory that need to be shut down or at least streamline. Do this, and we may have some leverage to actually negotiate with China here.
Upon election the deal maker or whoever is the next POTUS needs to ask the Russians "how can we help you in Ukraine?" To the Chinese, "how can we help you in tbe South China Sea?" We desperately need help with Iran. Perhaps by helping them here or at least offering they will help us with Iran.
Also, the US $ will lose it's role as world's reserve currency sooner rather than later. The chances are 100% that the next POTUS will experience on their watch assuming Russia allows the United States to survive long enough. At the top of the agenda for the next POTUS should be negotiations with Russia and China on tbe transition with the goal of a "soft landing" as opposed to "hard landing." The "landing" cannot be prevented.
If properly managed, good outcomes for America are still possible.
WNU Editor,
ReplyDeleteSorry, but protectionism, import/export tariffs, Capital controls are now considered to be CommieSocialistDirtyF€ckingHippieFacist Economics.
Ain't gonna happen, just more "Free Trade" deals all the time.
Jay, I think with Trump there is at least a chance, as he is more independent than most and better able than most to ignore this tyranny of public opinion. Far from a guarantee, but it's still more of a hope than what you get with anyone else running.
ReplyDeleteDaniel,
DeleteWhile Saunder's might sink the TTP, der Furour and his Travelling Medicine Show, if he really means what he says, has to undo 40 years of bipartizan US Trade, Corporate and Economic Policy, give up on US Sanctions Policy, (which only works because of the Financial sides of the FTP's), and gut every State and Federal Branch of the US Government of both Neo-Cons, Neo-Libs , 10%ers and Corporate Lackeys.
Ain't gonna happen until after the revolution and Civil War.
Any attempt to do what der Furour say's he wants to do as policy, will gut the US Economy in the short term, ( 15 to 25 years), and while it could have been possible in the late '80's and early '90's, when the US Economy was the Whole Worlds Economic Engine, now that it's been surpassed by China, and closely chased by both the BRICS and the Eurozone, it's no longer "possible".
Jay .... do not underestimate the energy of the U.S.. They have risen before .... and very quickly .... civil war and depression come to mind. But you are probably right that nothing will change when it comes to trade policy. All of my Chinese contacts are too cocky and too sure of themselves right now that nothing will change, which tells me that they have been told to not worry.
ReplyDeleteUnlike Orwell's Oceanasia, you don't just flip a switch, do a 180 on 50 years of economic and trade propaganda, and reintroduce the "heresy" of Kenesian Economics,
DeleteNot when the top 20% and the Corporations have made their living looting the world with Chicago School "Economics",.
WNU,
ReplyDeleteCockiness seems to have always been a hallmark on the part of US "enemies", "strategic competitors", "adversaries", and the like. In contrast Americans and their leaders especially when dealing with foreign nations are typically and extraordinarily so today quite humble.
Arrogance cost the Soviet Union during the Cold War. The Russians and the Chinese are arrogant in the extreme today. Someday they will pay for such arrogance but probably not at the hand of the Americans. Arrogance on the part of Russia, China, and others will no doubt present opportunities but US leaders simply seem to stupid to capitalize on any of thing.
I wonder who would have told the Chinese not to worry and how they plan to control things. If America continues with the same trade policies, this is suicidal. As such, things have to change. Mr. Trump may simply be the firs to realize this among the so called elites.
While America has risen before and very quickly, it had several things going for it in the past. 1.) It tended to base its policies on the Judeo-Christian principles found in the Christian and Jewish scriptures helping to ensure God's blessings and protection. 2.)It had a work strong work ethic. 3.)Americans have always been a humble people who are able to learn. 4.) Government intrusion was kept to the bare minimum necessary to protect to protect property rights and life and liberty.
While 2 and 3 are still present in America, 1 is greatly diminished and 4 is almost entirely the opposite. Unless we can lessen the intrusion of government it's going to be very hard, if not impossible, for America to rise again. When the dealmaker suggested shutting down the EPA, he was on the right track. Also, without God's blessings its going to be problematic at best to confront many of these problems facing the country.
In short, there is nothing special about the United States other than policy and personal choices made by it's citizens. Furthermore currently America's adversaries are going to do everything in their power and their power is formidable to keep the country from "rising."
I do see potential with shale oil and gas production along with building more refineries. If we could take the "handcuffs" as one commentator correctly put it, off the US oil industry, I could see a scenario where the United States could replace Saudi Arabia as the leading oil and gas exporter. The US could become the go to country for this stuff, potentially making the US the wealthiest and most powerful country on earth. At a minimum, it would give us much leverage in dealing with foreign nations. At a minimum, it would make the US much more difficult to attack as other nations would be much more likely to rally to its defense when it is dealt with unfairly or worse because of the need to protect their oil supplies.
The Chinese have been cocky for a long time. After all they've been beating America like a gong for a very long time. Since the deal maker was dismissed as joke at the start and is reviled by the media and both major parties it's not hard to see why the Chinese have not caught on yet. Again, he's not first choice but I can understand the appeal.