Two additional thoughts: (1) It is my understanding Tesla cars need those processed rare earth products so unavailability on that front should be interesting; (2) the Chinese hold huge amounts of U.S. debt, so if they did decide to play hardball by dumping debt, that would push U.S. borrowing costs sky high. Is it possible the administration didn't really think things through?
Good point about the treasury bonds. I meant to include that. As for thinking things through, I’m not seeing much of that across the administration. Rare earths are used all across technology- we are reliant on them.
"Talking our European allies into stopping their trade with China as leverage to bring China to the table"? Canada is already in talks with the EU to build a transcontinental economic 'superhighway' that leaves the U.S. totally out of it. And honestly, do we have any EU allies anymore? My bet is they're all talking economics and trade WITHOUT the U.S.
Can you blame them? The Trump people think bullying will work because it works on them, but our allies are not arrogant idiots and neither is Xi. I actually do not think that anyone in the White House thinks ahead at all. Skimming the news tonight, there is a lot of resistance emerging and it is serious. Finally.
Two additional thoughts: (1) It is my understanding Tesla cars need those processed rare earth products so unavailability on that front should be interesting; (2) the Chinese hold huge amounts of U.S. debt, so if they did decide to play hardball by dumping debt, that would push U.S. borrowing costs sky high. Is it possible the administration didn't really think things through?
Good point about the treasury bonds. I meant to include that. As for thinking things through, I’m not seeing much of that across the administration. Rare earths are used all across technology- we are reliant on them.
Economist Umair Haque (highly recommended!!) explains it all ...
https://www.theissue.io/why-trump-blinked-what-it-means-and-what-happens-next/
"Talking our European allies into stopping their trade with China as leverage to bring China to the table"? Canada is already in talks with the EU to build a transcontinental economic 'superhighway' that leaves the U.S. totally out of it. And honestly, do we have any EU allies anymore? My bet is they're all talking economics and trade WITHOUT the U.S.
Can you blame them? The Trump people think bullying will work because it works on them, but our allies are not arrogant idiots and neither is Xi. I actually do not think that anyone in the White House thinks ahead at all. Skimming the news tonight, there is a lot of resistance emerging and it is serious. Finally.
Agreed! Keep up the excellent writing.