[ZNPaaneah]

Originally Posted by awareness

Trump says ‘pain’ from China tariffs will make US ‘much stronger’

I guess we're so tired of winning that we need some pain. It will make us stronger. So says Spanky.

http://thehill.com/policy/finance/38...-much-stronger

The US constitutes 2/3 of China's exports, whereas China imports a tiny fraction of US GDP. We can survive a trade war with China, they can't survive a trade war with us. However, they could use the nuclear option, try to redeem all of their US bonds. If they did that our currency would crash, inflation would skyrocket, our bond market would collapse, and their major trading partner would go bust. The other option for China, of course, is to stop manipulating their currency and be a better WTO partner.

During the 70s it made sense to have a very favorable trade arrangement with China, that was when their trade amounted to $2 billion. But now that their trade amounts to $633 billion it is time to be a more equal partner. I agree with Trump.