| | | No need for talk. Everyone just do what is sensible for themselves
The Team Trump still waiting for Team Xi's call
Am having doubts if the call will happen
If USA wants to charge themselves lots of import tax, that's up to them. If China thinks it's a good idea to do similar, or not, that's up to them. It's so simple. No need to have trade talks. If somebody doesn't want to buy my products I sell them to somebody who does.
As I explained decades ago, the idea of trade balances is silly. I buy from supermarket, petrol station, airline, but they buy nothing from me. Trade balance 100% in favour to them or me whichever way around favour is. I sell mobile cyberspace to somebody and they sell to somebody else who sells things to supermarkets, airlines and petrol stations. It's surprising how hard it is for people to understand such simple things. Trade balances don't matter. Money goes around. It's always owned by somebody and they can go shopping.
It's a good idea to tax at the border rather than internally because the entity is the country and externalities can disrupt. Such as China deciding to cut off supplies to USA for malicious reasons. Or USA deciding to blockade China for malevolent ideas.
USA is mega$trillions overspending going bust so they have to charge taxes or cut spending bigly coz going Zimbabwe is a once off gone bust calamity. Tariffs is a good money collection method while they figure out how to stop the aortic blood loss. Unfortunately for them they are like drug crazed addicts and can't go cold turkey. Voting to keep spending, borrow and hope. $10,000 an ounce seems certain. Maybe as soon as Xmas because things can go cuspy, parabolic, hyperbolic, exponential and asymptotic.
Mqurice |
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