5 big takeaways from Trump’s ‘phase one’ China trade deal

[transporter]

While the moron crew is trying desperately to defend Trump's request of foreign nations to interfere in our next election....or showing their homosexual tendencies by giggling over penis fish, there was some interesting news released yesterday.

Naturally, the entire crew of "informed somd.com voters" missed it. Here the WaPo tries to describe it...they are actually quite generous vs most of the financial reporting services accounts of it...so far..

5 big takeaways from Trump’s ‘phase one’ China trade deal

1. This is a modest deal. It’s called “phase one” for a reason. Trump couldn’t get the big deal he promised, so he went with the easy stuff.

This was never ever going to be anything but a modest deal. As a negotiator, Trump just sucks. His MO is to take a problem...make it infinitely worse...strike a deal that almost gets you back to where things were before he stepped in...claim victory...then move on and f*** up something else.

2. China didn’t give up much.

The Chinese have long wanted to buy more American meat, crops and energy to fuel their growing economy and expanding middle class. That’s why China, back in mid-2018, offered to buy more of these goods in exchange for Trump holding off on tariffs. Fast forward to the end of 2019, and that’s pretty much the deal Trump got.

Again it was always obvious that China would never give up much. Trump would have to actually know what the end game looked like and not change his position from day to day. No one in the entire world takes this man seriously.

The WaPo gives the deal too much credit here. China can only buy so much more...and buying anything now will not, ever, replace all the lost business...the soybeans that rotted can't be sold...the farms that went bankrupt won't come back.

3. This should help Trump politically.

Trump can say he got something done, even if it’s limited. He can spin it with his base — and likely independents — as evidence that he delivers on his campaign promises. He also has managed to shift the media narrative away from impeachment, at least on Fox News and the business TV channels.

Yes, this is a given...Ivy League Lite will be on shortly to proclaim the wonders of his business knowledge and what a massvely positive thing this is and how Trump is winning at everything!! (Note: this is the same dumbass who proclaimed how WONDERFUL the tax cuts were for all his employees. He thought the tax cuts actually gave his people 3 -3.5% more in their paychecks!!! He didn't understand---and probably still doesn't--that the withholding tables were reclaibrated to make it look like the tax cuts were larger than they were. This was done to fool the stupid....like Ivy League Lite)

4.

Farmers, bankers and Apple gain the most. Farmers and financial firms come out the best in the deal. The most agricultural products China has ever bought from the United States in a single year was about $26 billion worth in 2012. It’s likely China will surpass that next year.

On Friday, Trump told reporters, “I think in agriculture they will hit $50 billion.” Chinese officials refused to give a specific figure. When pressed about whether the $50 billion would happen next year, Trump said the buying would occur “pretty soon.”

Farmers lost the most should it should stand to reason that a return back to the landscape pre_Trump would benefit farmers the most. But it is highly unlikely China will buy anything close to $50B. No other proof is needed other than Trump said that is what it will be.

5. Biggest win for the economy is scaling back Trump’s tariffs.

For the past six months, companies have been too spooked by Trump’s unpredictable trade war to invest. This deal signals that Trump is unlikely to increase tariffs more in 2020, a relief to many business leaders. It doesn’t go as far as executives would like (most want the tariffs fully removed), but Trump is clearly hitting pause on the trade war.

Yes and no. Yes, because scaling back the tariffs is a good thing. No...who know's what Cadet Bone Spurs will do next week. Then, of course, there is this:

US weighing 100% tariffs on more EU products including whiskies and Cognac, according to documents

Reducing tariffs one place and massively increasing them elsewhere doesn't make much of a net difference to the overall economy.

 

[Makavide]

Seems the editorial board of the Wall Street Journal feels that phase one is "welcome economic news."
A U.S.-China Trade Detente

As for China, the most significant concessions concern its predatory trade practices. China is promising to stop conditioning business licenses or other permits on tech transfers to joint-venture partners. U.S. manufacturers have long complained about this extortion that requires them essentially to trade their IP for access to the world’s largest market.

Our sources say that China has committed to increasing U.S. exports in energy, manufacturing, agriculture and services by some $200 billion over the next two years. China imported $179 billion in U.S. goods and services last year, so this would represent an enormous increase.

China has already been increasing U.S. farm imports, partly out of necessity. Imports of U.S. soybeans doubled during the first 10 months of this year from last year and increased more than six-fold in October. Beijing is especially eager to import more U.S. pork amid an outbreak of African swine fever that has killed as many as half of China’s pigs.

All of these are for now merely promises, and the problem with China trade is that Beijing and its state-protected industries routinely cheat. That makes the deal’s new dispute resolution process especially useful.

Today when a U.S. company suffers an injury, it has no recourse but to appeal to the Chinese government. U.S. companies fear retaliation simply by speaking up. Businesses going forward will be able to consult the U.S. Trade Representative office, which would raise the complaints with Chinese officials for remedy. If the dispute can’t be settled, the U.S. can impose targeted slap-back tariffs.

 

[BOP]

Just call me "Toothless" because I never get tired of talking out my ass.

Or "Stinky." Stinky works.

 

[CPUSA]