It's just before the opening bell on Wall Street as I write this. The Dow futures are up about 240 points. In the commodities markets, there is a meteoric rise in soybeans. The best way to say this is that the markets are very pleased with the outcome of the latest talks between China and the USA.
Think about it. Six months ago, there were no real restrictions on Chinese good and services and no special tariffs on them either. President Trump and his administration announced since then a series of proposed tariffs and major restrictions on some Chinese businesses because of Chinese theft of American intellectual property. Democrats like Chuck Schumer went berserk when that happened and warned that the President was starting a trade war. Schumer kept saying that President Trump did not understand trade and would lead us to economic ruin with his moves. Now, the tariffs are on hold on both sides, China has agreed to buy something like an extra $200 billion in US goods this year and into the future, and the President is "considering" whether or not to reduce but not eliminate the sanctions on one major Chinese telecom company. Schumer is now outraged at the "weakness" shown by the President in considering reduced sanctions on that company. You have to admire Schumer's "flexibility". First, it was a terrible thing to put the sanctions on the Chinese company, and just a few months later it's a terrible thing to consider relaxing the same sanctions. The only thing consistent in those views is that Schumer opposes whatever Trump does without giving the matter much thought.
We were also told by other Democrats that the American farmer was going to pay the price for Trumps tariffs. The focus was on soybean growers and hog farmers. Those also happen to be two areas in which the Chinese are going to vastly INCREASE purchases from US sources now. Looks like it worked out ok in the end.
The media won't say it, but this is a great result for the USA. We have to listen to the markets for confirmation.
Think about it. Six months ago, there were no real restrictions on Chinese good and services and no special tariffs on them either. President Trump and his administration announced since then a series of proposed tariffs and major restrictions on some Chinese businesses because of Chinese theft of American intellectual property. Democrats like Chuck Schumer went berserk when that happened and warned that the President was starting a trade war. Schumer kept saying that President Trump did not understand trade and would lead us to economic ruin with his moves. Now, the tariffs are on hold on both sides, China has agreed to buy something like an extra $200 billion in US goods this year and into the future, and the President is "considering" whether or not to reduce but not eliminate the sanctions on one major Chinese telecom company. Schumer is now outraged at the "weakness" shown by the President in considering reduced sanctions on that company. You have to admire Schumer's "flexibility". First, it was a terrible thing to put the sanctions on the Chinese company, and just a few months later it's a terrible thing to consider relaxing the same sanctions. The only thing consistent in those views is that Schumer opposes whatever Trump does without giving the matter much thought.
We were also told by other Democrats that the American farmer was going to pay the price for Trumps tariffs. The focus was on soybean growers and hog farmers. Those also happen to be two areas in which the Chinese are going to vastly INCREASE purchases from US sources now. Looks like it worked out ok in the end.
The media won't say it, but this is a great result for the USA. We have to listen to the markets for confirmation.
No comments:
Post a Comment