"My strategy going forward? Live my life, enjoy the State Fair, and when I shop - buy American. Yes, to pay more for a product, made by Americans in America - I will do that with a smile on my face, stretching from ear to ear."
Okay - for those nay-sayers who thought this was only bluster and show, now do you think this China thing is real? The President raised some eyebrows the other day when he said he was the anointed one. Some wondered where that come from. It came from this. There are few (if any) other people who could be living at 1600 Pennsylvania Avenue, who have the guts, the cahonas, to take the dragon head on. To win the China trade war, President Trump is the anointed one.
This trade war is something which is long, long overdue. The United States and China are like two street gangs who have had bad blood for years. Finally, a rumble ensued, to fix some bad blood issues. This is our economic rumble. Once it is over, we will either be totally divorced from China as a trading partner, or we will have a fair trading deal. There simply are no other outcomes.
Now is the time for all Americans to "man up". This is not going to be a fun ride, especially if you live off a 401k. However, as we have seen in the past, IRAs and 401k accounts can take a beating, yet still keep on ticking. I thought after the 2001 terror attacks, mine would never come back. It did. Same with the Great Recession.
Speaking of "manning up", the President is right on his call concerning the Fed. They are of zero help right now. If they had lowered the prime by 100 basis points (could have been phased in), or done some quantitative easing like they did for Obama, the market would not have nose dived. But the Fed did nothing (again). The market tanked, and the President blew a gasket.
Could it be the Chinese are going to stall and wait out the 2020 election? Maybe. Hope against hope to get rid of Trump, and have him replaced with another weak kneed Democrat, with round heels in trade negotiations. Then the status quo would be retained. Huge trade deficits, and IP theft galore. China would win, the United States would continue losing.
How do I feel towards the Chinese? I have gone from apathy to antipathy. I never have liked or tolerated bullies. And these guys are world class economic bullies. "Eff em" is what I say. Pull our stuff out of China and either bring it home, or find a trustworthy and fair trading partner to set up shop with. If I were Trump, I would tell Xi that our best offer has already been on the table. Every subsequent offer will not be as lucrative as the last one. If he does not like that - "see ya, would not want to be ya."
Like I said, this trade war is going to hurt. No sunshine in that remark. But one thing which as not been stressed enough, this trade war is really going to hurt China. If this ends in divorce with China and the United States each going separate ways, that will leave a gaping hole in China's economy.
My strategy going forward? Live my life, enjoy the State Fair, and when I shop - buy American. Yes, to pay more for a product, made by Americans in America - I will do that with a smile on my face, stretching from ear to ear.