Tarrif’s and Sanctions work folks. When you are the largest customer in the world for all nations the largest buyer consider this:

  1. Your nation can’t buy more than it sells without going bankrupt.
  2. Your nation can not charge other countries “A” tax when the other nations charge the USA – AAAAAAAAAA and more tax.

As you adopt a reciprocity tax – we tax you like you tax us – billions and billions of trade go off your table as we simply stop buying those billions. For China it is economic death no work around. For EU the longer a deal takes the worse the time is to recover. Both China and the EU are rapidly sinking into recession – while Russia and India are already there there. Deals heal. The economic prosperity of deals is up bubble economics.

The resistance from industries who fear with fair equal tax in trade they will no longer have advantage to supply as they have is wrong. Although if a state – like China – seeks to gain influence by economic war – the plan is to subsidize state industry in say steel – build up modern plants are levels far beyond world demand – dump steal on world markets to keep state employment high – and negotiate other trade deals to offset the loss on steal for the profit on the other deals. One hand washed the other while all hands hack and steal every IP imaginable with no firewall safe from state hackers.

China just won the digital battles it launched in world war III that is fully digital. But the USA now fully pissed off is winning the WAR and China leadership has two choices:

  1. Ego and Pontification of “dumb and dumber ” economics in which communist leaders now in a DEBT SUPER BUBBLE that makes Turkey look like a turtle pool on a child’s desk by comparison. China is in serious trouble if American buying moves as it is into massive withdrawal. A trillion in capital flight already – runs on banks – financial instutitons – the Chinese currency – the Chinese stock market all down to record decade LOWS that China has never experienced before all at once. To say they have their hands full is an understatement. To compete and move forward in a failed digital war the Chinese started but American’s are fully ending and right now.
  2. Make a deal and fresh start with new integrity both sides and lead the world into an age of forward prosperity.

The economy of China is a graph the instructor suggests as the line goes off the black board and chalk lines down to the base board on the floor – as the Chinese economist looks up at President XI and with a smile states his question….

….anyone having any trouble reading the 2018 trend in our economics….?

As they say in television ….DEAL OR NO DEAL …America prospers with or without China but China without American….is a debt default cascade into world markets as the Chinese economic dies and moves into full on revolution – all timing to Chinese leaders each holding a broken fragment of chalk from the down graph this summer……still going on to the floor…boards.