Hello David, I see one way trip to TeoTwawKi
because making socks cost more and
bras valued more in the USA cannot be the answer
70% of China-originated export to USA is through US, Japan, Taiwan, and HK companies
Overall trade deficit between US and Asia (incl. Japan) did not rise
in fact Singapore just slipped into deficit with US, and rest of the region soon to follow
but trade surplus migrated to China only on accounting basis, as that is where much of the final assembly and testing is done
So, win-win-win will continue, as long as J6P keeps spending, until not, not so much by government regulation, but by financial exhaustion and economic bankruptcy
because government intervention to make the socks cost more at Walmart will only make the situation of J6P more dire, and exhaustion much sooner.
USA export to China actually increased by more than 100% since 2001, and China's share of US global trade deficit is actually decreasing.
The only reason China sells to the US is because US is buying;
US is buying because Fannie/Freddie/Greensputin/BurnAndKaput are doing their thing;
The above cabal is doing its thing because if they stop, sorry, I meant when they stop, TeoTwawKi arrives.
Should the USA turn back the clock on China trade, the victims will definitely include Fortune 500, J6P, ..., and the response will be global trade war, and a different TeoTwawKi arrives.
I think 'ergonomics', exchange rate, and all are simply the salad and the dressing. The beef is "return to the mean".
1 oz of monetary gold cost USD 550 worth of RMB at current exchange rate, and so, should China allow its currency to float, the hot money will flow out, along with bottled up savings, causing the RMB to devalue 20+% and see monetary gold in China sold at USD 450 per oz.
Chugs, Jay |
