Author |
Message |
Helfen Samba Member
Joined: January 19, 2009 Posts: 3450 Location: Vulcania
|
Posted: Mon Oct 22, 2018 7:37 pm Post subject: Re: Tariffs Going to Raise the price of EMPI parts |
|
|
If you have not been a paying attention, the Chinese stock market is far down, and possibly headed lower. The recent rally is likely due to the government intervening, but it is unlikely to last. Their economy is now suffering, and it is getting worse. And that is all before the real tariffs go into effect in two weeks. China is in difficult economic shape. The government is beginning to intervene by increasing liquidity for banks and supporting the stock market. But underneath all of that is a slowing economy, and more problems ahead once tariffs kick in fully. Don’t believe the official stats that the economy is still growing at 6.5%. They lie a lot about data. The private data show it is worse. The slowing economy has put a stop to the effort to reduce the massive over leverage, so the problems are just festering for China. Trump is letting them twist in the wind for now, which is exactly the right position to take for now. The US is in good shape for a trade fight, but China is not. Now that Brexit is again in difficulty, and Italy is creating serious problems, the EU cannot afford to fight the US on trade. That deal will get done soon in our favor. It really does not matter that China is reducing their Treasury holdings. They are doing it slowly, and it is not really impacting yields. They cannot just dump nearly $1 trillion of Treasuries. |
|
Back to top |
|
|
wcfvw69 Samba Purist
Joined: June 10, 2004 Posts: 13389 Location: Arizona
|
Posted: Mon Oct 22, 2018 8:03 pm Post subject: Re: Tariffs Going to Raise the price of EMPI parts |
|
|
I know The Samba frowns on politics so I'll go gentle. I do agree with our administrations position with China. They've been abusing us for years. The trade deficit is a national embarrassment. Previous politician's looked the other way because big business (who pays for their elections) wanted cheaper labor to improve their businesses margins. Of course, it trickled down to the executives compensation packages too which was the end game.
I think it's a slippery slope. Cheap products from China I think have clearly helped minimize inflation in many ways. No one wants to pay $40 for something they can pay $20 for now.
Personally, I'm willing to pay a bit more to get the trade balance straightened out. _________________ Contact me at [email protected]
Follow me on instagram @sparxwerksllc
Decades of VW and VW parts restoration experience.
The Samba member since 2004.
**Now rebuilding throttle bodies for VW's and Porsche's**
**Restored German Bosch distributors for sale or I can restore yours**
**Restored German Pierburg fuel pumps for sale or I can restore yours**
**Restored Porsche fuel pumps or I can restore yours**
**Restored Porsche distributors or I can restore yours** |
|
Back to top |
|
|
Tram Samba Socialist
Joined: May 02, 2003 Posts: 22711 Location: Still Feelin' the Bern- Once you've felt it you can't un- feel it.
|
Posted: Mon Oct 22, 2018 9:57 pm Post subject: Re: Tariffs Going to Raise the price of EMPI parts |
|
|
They should just ban EMPI shit altogether. Our roads would be safer. _________________ Немає виправдання для війни! Я з Україною.
Bryan67 wrote: |
Just my hands. And a little lube. No tools. |
To best contact me, please use the EMAIL function in my profile |
|
Back to top |
|
|
jspbtown Samba Member
Joined: January 27, 2004 Posts: 5156
|
Posted: Tue Oct 23, 2018 6:32 am Post subject: Re: Tariffs Going to Raise the price of EMPI parts |
|
|
Quote: |
The trade deficit is a national embarrassment. |
I have always wondered why people are so fixated on this. We are never going to not have a trade deficit. Other countries produce things cheaper. Again, primarily due to America's labor costs.
Americans love cheap things. And why not? Why force Americans to pay more for something? The whole concept of trying to manipulate world markets eludes me.
There was an excellent interview on NPR not long ago with the CEO of a lighting company (made industrial lighting for severe conditions) who spoke about how the Chinese tariffs were impacting his business. He bought parts from China and then assembled the lights in America with American labor. His suppliers in China were able to deliver the quality he needed at a price that was far better than any manufacturer in America could. When the tariffs hit the parts were no longer affordable. In order to stay in business he was going to move his assembly division overseas (can't remember the country) which had a "favored trading partner" designation with the US. He would import parts from China to that country tariff free, assemble the lights in that country with cheaper labor, then import the completed lights to America tariff free and make more money.
He really didn't want to do this but the tariffs made the decision to shut down completely or move.
So this is why I wonder.....what is so wrong with a "trade deficit"? Who cares if we buy more elsewhere as long as we don't ignore innovation here? |
|
Back to top |
|
|
KTPhil Samba Member
Joined: April 06, 2006 Posts: 33991 Location: Conejo Valley, CA
|
Posted: Tue Oct 23, 2018 8:52 am Post subject: Re: Tariffs Going to Raise the price of EMPI parts |
|
|
jspbtown wrote: |
So this is why I wonder.....what is so wrong with a "trade deficit"? |
It's a convenient "bogeyman" to cause fear and thereby gain support from ignorant masses for a regime that does not follow the rule of law or have any clue how international economics works. |
|
Back to top |
|
|
|