Saturday, June 1, 2019
Washington, we have a problem
[warning: A lot of links]
If we're paying attention, then we should all be holding our collective breath because Trump is seriously escalating tensions with China.
See the problem is that China has a plan, and that plan was to grab American industrial manufacturing. The key issue is that China had seriously cheap labor, and so just to sweeten the pot, built the manufacturing sites to attract those underpaid, wishing the stock prices would go up Wall Street CEO's.
While in America, the quarter reports determined a companies value, in China, the viewpoint was, "are we making money, or spending it?"
You can say they took the 100 year view point. If you're steadily making money for a hundred years...hey, doing alright.
For the American CEO, that three month window made or broke you.
So, when China advertised their industry, the Wall Street said, "oh!"
And voila, American manufacturing moved to China.
Now, the question was, how could American's pay a work force so cheaply...like seriously, pennies on the dollar?
China's military was the manufacturing labor force for American industry, but when Obama came into office, the first thing that was obvious was that American Intellectual Property was being blatantly stolen by the Chinese, and knocks off sold. So, Obama set up TPP, the Trans-Pacific Trade Partnership which pointedly excluded China.
The TPP would give legal recourse to the US, and favorable trade advantages to any South East country signing on to it.
China didn't like that one damn bit.
So...China's military started becoming a Military...because...TPP was kind undercutting their theft of American IP.
So today, Trump has dumped TPP, because he think's it's bad for America.
Only problem is...once Trump backed out of TPP, China moved in, and opened up the American IP to the tune of several billion dollars loss of revenue.
But that's only a tip of the iceberg. China is modernizing their military.
And Trump is irritating China with this "trade war" in which we stand to lose billions, and billions of dollar, if not hunderds of billions.
And China, will just sell else where.
So, what makes China dangerous for us Americans?
They may get tired of our shit.
tl;dr We're pissing off the Chinese dragon, when we should be negotiating with them.