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21 sats \ 11 replies \ @Undisciplined 9 Apr \ parent \ on: China announces 84% retaliatory tariffs on US goods econ
There's no replacement for US consumer demand. No one can rival our extravagant materialism. Those shelves full of Chinese goods are my point. It's largely stuff people don't particularly need, or can find replacements for, but China needs those products to move.
Don't forget, China can do pretty much whatever it wants with it's people.
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Until it can't. The Chinese people were willing to accept tyranny when it was accompanied by 10% annual prosperity increases. That was something like a social contract over there. I don't think they'll be as tolerant when the economic gains dry up.
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Sitting right next door to china, I totally approve that chinese people don't have good sentiments for tyranny now.
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True, but the comparison is with Americans ..
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I get it, but I'm not sure they have a ton more grace to work with. I could easily be wrong, of course. That's just the impression I've come to.
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Trump is killing US consumer demand and business propensity to invest in capital equipment, btw.
But you're correct about the consumer. However, isn't this where the shift is coming? More financially sovereign individuals, value moving to Bitcoin, time preferences lengthening...
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I hope there's a consumer shift coming, but we both know how deeply ingrained consumerism is amongst our fellow Americans.
I need to see more to evaluate what's going on with capital equipment and other major fixed cost investments. We're going through a major economic correction and it makes sense for investors/owners to keep their powder dry until the dust settles, regardless of their long-term expectations. Then, we'll see if they really are less willing to invest in American production.
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Consumerism goes away with a prolonged economic depression. In one generation.
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Probably so, but the question is whether Chinese production can more easily adapt to the loss of American consumption or American consumption can more easily adapt to the loss of Chinese products. I believe it's the latter.
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That's obvious.
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Have you ever tried manufacturing anything in the US?
Most products will cost 3 to 10X what you can out source production to China for.
China has won the trade war...you just can't accept it and its consequences.
It is delusional to think you can build a US manufacturing base that can compete with what China has built up over the last 35 years.
It is simply not viable.
Anyone with experience in manufacturing will confirm this.
And most of the imports from China are essential goods, not plastic toys.
Look at the massive dependence upon made in China goods across nearly all productive lines and supply chains. It is systemic.
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