Folks the Chinese this past week have seen all their lobbying efforts be destroyed by the Sledgehammer of Truth!
Another Treeper (Abdiesus) posted the following to my post on the previous thread:
In light of what Sundance has written about China’s normal public behavior in the article above, I wonder what underlying data or issue is causing China to escalate the verbal battle so sharply at this particular moment? It almost seems like they’ve been triggered by something, but what? Is it just the Chinese stock market dropping – and Trump tweeting about it? Perhaps that plus something else they know about the seriousness of their predicament that is causing the uncharacteristically harsh language? Maybe Trump (knowingly or unknowingly?) touched a sore spot?
He than said my post sharing the following might have answered his question.
Our President drove the Dragon 🐉 crazy 😜 yesterday when he let out a little secret about what will happen to our real GDP rate once he shrinks the deficit. He knows it and the Dragon 🐉 knows it!
China 🇨🇳 will see a reduction of 3% to 4% to their real GDP rate!
There is a cause and effect to our GDP and theirs. By squeezing them with tariffs of 10% on the first $50 billion coupled with the proposed 25% on the next $200 billion and what I believe maybe as high as 50% on the remaining $250 billion, our President is swinging our GDP up and killing China’s GDP.
Let’s look at the math:
USA 🇺🇸 Tariffs on China:
$50 billion x 10% tariffs = $5 billion dollars to our Government
$200 billion x 25% tariffs = $50 billion dollars to our Government
$250 billion x (being a bit conservative) 37.5% tariffs = $93.375 billion dollars to our Government
China 🇨🇳 Tariffs on USA:
$50 billion x 10% tariffs = $5 billion dollars to their Government
$60 billion x 25% tariffs = $15 billion dollars to their Government
$40 billion x (THAT IS ALL THEY HAVE LEFT) 37.5% tariffs = $15 billion dollars to their Government
That totals $148.375 billion dollars in tariffs for our Government versus $35 billion dollars to their Government.
That shrinks the trade deficit by $113.375 billion dollars a year.
What does that mean for each country’s real GDP rate?
Just last Quarter we shrunk the trade deficit by $53 billion dollars and it added 1.16% to the 4.1%. Please keep in mind with my math above, China 🇨🇳 and the USA 🇺🇸 brought in the same $5 billion in tariffs. They washed each other out.
However, going forward, that isn’t the case! Your talking about an additional 2.32% real GDP rate for each year using the tariffs on China 🇨🇳 and them losing that same percentage.
He was absolutely right that WE CAN’T LOSE!