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Monday, July 9, 2018

U.S. Will Always Win a Trade War


This is a war China cannot win. Neither will Canada and neither will Mexico.

We were already losing the trade war when President Trump decided it was time to correct decades of trade missteps that cost the American consumer to the benefit of everybody else in an effort to gain 'good relations".

Well, screw that!

Now is the time to fix things and if the other nations don't want to renegotiate, well things are going to get tough...for them! We're running too many trade imbalances to remain polite. Not that our "Allies" have remained polite because they have not.

Don't let the hand wringing in the Leftist Press fool you, the U.S. is in great shape going into this trade war and regardless of all the defeatist talking down from the Democratic Party, the United States is going to put a hurt on the world if our trading "Allies" don't come back to the bargaining table.

The United States is the number one economy in the world. China is the 2nd but they are a distant second. Japan is the third biggest but they are a close third to China. Any slide by China and they're back to third place.

What these countries will do is pay the higher price. What the United States will do is buy local and pay the price also.

The difference is that the United States produces things that people around the world would rather have compared to their local product. What we will find in this contest is how much the U.S. product is valued around the world. Maybe patriotism will skew the numbers but not in the long run. And yes, this could take some time.

So let's take Kentucky Bourbon for instance. I'm sure China's version will be satisfactory to the growing affluent populace that craves high end booze. Or, perhaps, the Chinese populace that craves the real stuff will just pony up the dough and pay the extra money. What do you think will happen?

They will pay the extra money.

On the other hand, we don't need Chinese booze or their steel.

We may pay more for U.S steel, but we have the money. If we suddenly find that the local product is the same price as the import, we'll pay for the better product at the same price.

Yes, we'll have less money to spend or spend more for the product but we HAVE IT. What other countries around the world will not have is access to the largest group of mindless consumers in the history of the world up to this point. Fast forward 100 years and we STILL will have the largest group of mindless consumers in the history of the world.

Consumers in other countries are living in the Dark Ages. They still use faculties like Discretion and Logic when it comes to their purchases. They carefully mull over what they want and figure out the best product for the best price. But here in the U.S. we'll buy just about anything regardless of whether we can even PAY for it or not. All we know is that we want it.

And isn't that enough?

Who buys millions of $ 20.00 fish lures that twitch and makes buzzing sounds to, maybe, attract more fish? We do. Who pays $ 50.00 for a PILLOW, as in the popular American product "My Pillow"? We do!

Who made former heavyweight champion boxer George Forman a multi, multi millionaire by buying his electric hamburger grill?

We did!!

And why? We don't know!

Did this crazy shit happen in Russia? No. Germany? No. England? Nope!

It all happened in the United States. Why?

Because we'll buy anything!

And we also make at least 75% of all the good stuff in the world. Movies you want to see, cars you want to drive, booze you want to drink and other stupid crap you really shouldn't buy in the first place. But there it is.

We don't need YOUR stupid crap, we've got enough of our own.

But the rest of the world is catching up to mindless consumerism. They've developed a taste for Crown Royal, Jack Daniels and wines of Napa Valley. Bejing Bourbon just doesn't quite make it compared to the real deal from Kentucky. So if the price goes up, they're just going to pay it.

The corn produced in Iowa is a superior product. The U.S. is the world's leading producer. And it's a staple. You need corn, you need corn so you'll pay the higher price. That's just the way it is.

It's all passed along to the consumer. Yes, during a trade war the consumer loses.

But the United States will not.


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