From day one President Trump has been criticized by the Democrat Party, some in his own party, the media , and the global community for his tariff plan. Especially holding the line with China. Why is this so important to this president?
Look at this remarkable chart some genius put together. Japan began to close in on the US in the 80’s and 90’s as the world’s largest economy. China was a non-factor until 2005 when they passed Japan and then in 2011 began to close in on us. This trend shows that unless something changes they will pass us very soon. How is this happening? First, the population advantage they have gives them the capacity grow their economy faster. Second, we are the market for their goods and they make them cheaper so our jobs go to them. Third, they put tariffs on our goods so they have both markets to sell into.
What happens if they zoom by us as the graph indicates they will? It is unlikely the dollar will remain the world’s currency. For eight years of the Obama administration we just printed dollars when we needed to cover deficits. China bought a lot of those dollars. They have also been buying some of our companies. When you are the big dog you eat where and what you want. We have been the big dog for a long, long time.
Most politicians and 100% of the media pundits who criticize Trump for his hard line with China on tariffs have no clue why this is important. They just want to believe it’s wrong. Obama didn’t do it so it must be wrong. Obama couldn’t count his pocket change nor negotiate any deal favorable to this country. My case in point, the Iran nuclear treaty and the cash he shipped them. Or, Solyndra and those billions lost. Then there’s the French climate summit. Or, NATO members not paying their bills. Need more?
Take a minute and review this chart and make your own judgment on the tariff negotiations with China.
