American Economics Thread

[Gatekeeper]

@gadgetcool5 studied Economics at Harvard. Ivy level.

If he studied at Harvard then I went to West Point

Olympus, class of '09. My lightning toss was first in class and I still get holiday greetings from Dr. Zeus himself.

Don't forget guys, he was very careful when I asked about his economic qualification. He didn't say he's completed a degree in economics. He simply said he 'studied economics at Harvard' it may just be a weekend course at Harvard. Lol

Judging by his post, I doubt he learned much!

 

[BMEWS]

Don't forget guys, he was very careful when I asked about his economic qualification. He didn't say he's completed a degree in economics. He simply said he 'studied economics at Harvard' it may just be a weekend course at Harvard. Lol

Judging by his post, I doubt he learned much!

When I said I went to West Point, I should have qualified my remarks as well, I once walked on to West Point campus, I didn't actually attend /study there lol

 

[Gatekeeper]

US retail sales are now HIGHER than January and February, before the pandemic in the US.

(Meanwhile Chinese retail sales are still 1.1% lower than last July).

Tell me how China recovered better from the pandemic again? I'm sure this is great news for "recirculation"

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If my economic students hand this analysis in to me, I would mark them a big fat fail!

For any comparison to be made meaningful, it's basic standard practice for any economics/accounting/stats students to make sure data's used it is of the same period!

How can you make a comparison from Jan 2020 to now for one country and for another July 2019 to now? Mind boggles!

In addition , cherry picking retails sales. Any students worth their salt would've known that USA's economy is consumer based , whereas China's is manufacturing based!

Compares apples to apples, oranges to oranges is the basic requirement of any economic students. I think you need to get your money back from Harvard!

 

[Gatekeeper]

Guys, life is too short and time too precious to waste on idiots and trolls.

I know, but it's such a wide open goal, we can't resist....... But wait. Maybe that's his ploy all along! Oh no, we been dupe!

 

[Petrolicious88]

Contradiction again...

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Of course the Trump administration was satisfied because it was all so Trump can declare a fake victory in the first place to the American people. It's as superficial as claiming that Trump took on China like no other President... and he failed to achieve any victories despite it. The people who hate the trophy culture want to give Trump a trophy for trying...

He is satisfied with the deal because the Phase I deal was a lopsided deal for China. It’s forcing China to buy $200B worth of US products in just 2 years. This is a shockingly high amount, and a massive win for the US.

For comparison, Chinese investments in a group of African countries only totaled $120B from 2008 -2017.

China was forced to sign the deal. It was an extremely unfair deal. But China signed and hoped it would ease tensions between the two countries. We all know this didn’t happen. The US actually increased sanctions on Chinese companies. The Phase I deal bought China nothing. It was another unfair deal imposed on China by the West.

 

[manqiangrexue]

He is satisfied with the deal because the Phase I deal was a lopsided deal for China. It’s forcing China to buy $200B worth of US products in just 2 years. It is a shockingly high amount, and a massive win for the US.

For comparison, Chinese investments in a group of African countries only totaled $120B from 2008 -2017.

China was forced to sign the deal. It was an extremely unfair deal. But China signed and hoped it would ease tensions between the two countries. We all know this didn’t happen. The US actually increased sanctions on Chinese companies. The Phase I deal bought China nothing.

He's "satisfied" because what else can he say? If he says he's not, then he'd need to re-impose tariffs when America's economy is at its weakest. There was lots of data that said that China was not keeping up with that amount and not on track to meet the $200B agreement. That deal seemed lopsided, but the result is that the US continues to run a massive trade deficit with China (although actual effect on it is heavily obscured by COVID). China probably made the deal because it calculated it could extract more money out of the US this way than with the tariffs (and China still needs to buy its food somewhere anyway). A truly good deal-maker, unlike Trump, makes the deal sound in favor of the other side, but puts the devil in the details and in the end, the other side is unable to get the upper hand.

Trump's targeting of Chinese companies is due to their technological advancements, NOT because they're making too much money. If this was China's intended effect and it was not achieved, China can back out under the natural disaster clause, but China seems to want to keep it in place. Those are separate issues.

 

[AssassinsMace]

He is satisfied with the deal because the Phase I deal was a lopsided deal for China. It’s forcing China to buy $200B worth of US products in just 2 years. This is a shockingly high amount, and a massive win for the US.

For comparison, Chinese investments in a group of African countries only totaled $120B from 2008 -2017.

China was forced to sign the deal. It was an extremely unfair deal. But China signed and hoped it would ease tensions between the two countries. We all know this didn’t happen. The US actually increased sanctions on Chinese companies. The Phase I deal bought China nothing. It was another unfair deal imposed on China by the West.

Yes the Trump spin exactly for the audience it was aimed for...

 

[Franklin]

He is satisfied with the deal because the Phase I deal was a lopsided deal for China. It’s forcing China to buy $200B worth of US products in just 2 years. This is a shockingly high amount, and a massive win for the US.

For comparison, Chinese investments in a group of African countries only totaled $120B from 2008 -2017.

China was forced to sign the deal. It was an extremely unfair deal. But China signed and hoped it would ease tensions between the two countries. We all know this didn’t happen. The US actually increased sanctions on Chinese companies. The Phase I deal bought China nothing. It was another unfair deal imposed on China by the West.

If I was China I would just sell 200 billion dollars of US financial assets and buy the stuff. Put them in storage for later use. Better that than holding on to those worthless paper.

 

[AndrewS]

US retail sales are now HIGHER than January and February, before the pandemic in the US.

(Meanwhile Chinese retail sales are still 1.1% lower than last July).

Tell me how China recovered better from the pandemic again? I'm sure this is great news for "recirculation"

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That is a stupid comparison for the following reasons:

1. Retail spending crashes in January and February after the Christmas splurge

2. In terms of COVID-19 support, China has only spend 7% of GDP whilst the US has spent 13.2% of GDP.

So it's not a surprise that retail spending in the USA is holding up, considering it has been artificially boosted by handouts of $600 per week for 25 million unemployed, which has ended. Also consider that the US budget deficit is going to be close to $4 Trillion this year (20% of GDP), which is completely unsustainable. This may be the trigger for a debt spiral.

In comparison, China is conserving its resources for a recovery once a vaccine is available AND also has trillions of government owned assets in reserve.
nonfinancial state-owned enterprises alone have $30 Trillion of assets for example.

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.

 

[Petrolicious88]

Yes the Trump spin exactly for the audience it was aimed for...

This is not a Trump spin. In fact, the US has consistently stated that the Phase I deal is not enough. It’s constantly pushing China for more. On the other hand, the deal was an embarrassment for China. The terms of the deal was barely reported in Chinese media.

But the fact is $200B over two years is an enormous win for the US. If China doesn’t meet the terms of the deal, trump gets his pretext to slap China with more tariffs. If China does meet the deal, US just got $200 billion out of China, and narrowed the deficit.

What did China get? Sure it wants to buy US soybean and natural gas anyway. But it didn’t buy any favors with the administration. US piled on the pressure even more. Relationship is worse now than before the deal.

China should realize by now that singing trade deals, selling ticktock, or any other concessions is not going to appease the US.