Trade War wipes out 6 months of growth

[1Clemson]

S&P at the same level now as it was in November.

I don’t like the trade imbalance. but if China wants increasingly worthless paper for finished goods, so be it. I am more worried about our spineless politicians inability to adopt a balanced budget. By having to always issue debt to cover current expenses we will start driving up the interest rates on bonds resulting in higher cost of funds for everything. Soon we will be ‘inflating our debts away’ which is almost a form of theft.

I would prefer balancing via expense reduction, but tax cuts in this budget environment are equally stupid. I almost think our plutocrats think the only way for the US to compete in the world is to run our dollar down to the equivalent of the peso. When all of your retirement savings become devalued via inflation, remember the cause.

 

[dzf664]

Lets pretend that hopefultiger13 is a sovereign country and follow this scenario.

1. You need money
2. China funds your debt note via buying your treasuries that you put up for sale to create the money
3. You then use that very debt note to purchase cheap China goods
4. You got your cheap goods and China ran up their production/exports
5. This is referred to as a positive sum game, i.e. both parties are happy

Explain how YOU are getting "screwed" exactly?

There is no reason for a country to borrow money. There is no reason a grown man should finance anything, unless it is a house.