American Economics Thread


This is why there will be no tariff exemptions.

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It would be admitting Trumps trade war was all for nothing.

The US is stuck with the system it created. Look at oil. During the Obama Presidency, he declared the US was energy independent because of fracking. Yes the US is oil independent but it doesn't have controlling influence in oil politics. That's why Saudi Arabia has so much power. Since the US likes its power in the world, it has to be actively involved like in the geopolitics of the strategic importance of oil in the world. Yes the US has many different resources within its own borders but it doesn't have everything meaning they still have to be involved in the world in order to get those things. This isn't a hundred years ago when the West was the only game in town.

Why doesn't China just cease to exist so the world can go back to 100 years ago? Because China is an alternative to the US. All those resources the US needs that it doesn't have is going to cost more because it's called capitalism. Other countries want China around because they'll get more money selling the raw materials the US needs. Go ahead and find rare earths somewhere else. It's still going to cost more. They threaten it like it's China's loss. China was ready to reduce rare earth exports to the US and its allies overall and they went running to the WTO to stop it. Do they know that's the same outcome? Outsourcing is like water. Water seeks to find the lowest level. In outsourcing that means where it's the cheapest. If it's in China and that's where they get it, it's because that's where it's the cheapest. It's not some humanitarian gesture from the West to give jobs to poor people around the world. When it comes to motive, it's quite the opposite where they're just exploiting cheaper sources.

Threatening to leave China will only cost them more. Those jobs don't have to go back to the US. They can exploit the next cheapest country... but it will still cost them more in ways beyond just labor. And just because the US abandons China or outsourcing all together, what makes Americans think the world will follow and not outsourced themselves like when Americans threaten war, they automatically believe the rest of the world blindly join them? All you have to do is look at the US's fight over 5G with China. US allies aren't following blindly. I'm sure they would rather not buy from China but what's the common reason why they have to open the door to China? They get more bang for the buck. Ideology doesn't beat cheap. If it were so simple like the US wants to believe, why don't they at least pay the difference for allies to turn their backs on China? Because the costs would be at the levels of the Soviet Union going bankrupt because they couldn't keep up with the US at the end of the Cold War. How many countries in the world are going to exploit the US and pull out the China card and get free money for not choosing China...

The latest is the US is going to impose on every country that uses their technology to make other technology restrictions on who they can sell it to namely China. China is the largest buyer for most of the chips that the world makes. A lot of those foreign companies are going to go bankrupt. The US thinks, again like everyone will follow the US blindly into war, everyone is going to do nothing and accept it. If some country told the US who they can sell their products to, Americans would not react well yet they think other countries will do nothing and just accept it. No, just as China will, everyone is going to develop their own technology to bypass the US having the final say.

When all is settled, it's the US that's going to be in a world of hurt because it will have themselves surrounded by walls built with import/export restrictions of their own making while everyone else is trading with one another. Again they're betting it all on the belief that the US is the only one buying things in the world.


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No country if given a choice would want to choose between these two big superpowers. In today's world, each country own interest comes first but circumstances decides why they have to choose one over the other. Best option for these countries is to be more united and independent, thus more freedom of choices, more competitions, more markets, foods security, techology independence etc. They must find ways to spread the risks from the big two or maybe three (Russia?) without taking sides.