President Donald Trump is bending over backward to use his economic prowess and sound economic doctrines to make America great, as he has often promised to do. One of the nations that have most tarnished the prosperity and greatness of the United States is China. Via NAFTA and other harmful agreements that have destroyed the American economy and caused an increase in the foul practice of outsourcing, China has been manipulating the U.S. workforce while laughing all the way to the bank.
Trump is putting an end to all of that and China is whining like a petulant child who just got their hand slapped. According to Bloomberg, “senior government officials in Beijing” are trying to stay the president’s hand by “slowing or halting purchases of U.S. Treasuries.” Years of Democrat endorsed practices are about to come back to haunt them.
We keep hearing talk about how, since our dollar is backed by nothing, if nations stop buying our worthless money, the U.S. will topple. While that is true in the short term, perhaps, it may be a blessing in disguise. If this were to happen, the U.S. would have to rely on themselves (which is better than relying on others, anyhow) and likely return to the gold standard in doing so. From there, America would flourish even if no treasuries were sold. They would be, however, since such money would be in high demand.
Nations have already stopped bond buying and caused other ripples of turmoil in the markets, long before Trump became America’s leader. There is no reason for the U.S. to cater to the Chinese since doing so has only led to misery anyhow. Wages have fallen, raises are non-existent for most, and the standard of living for the average citizen has fallen to levels not seen since the early 1970’s.
Bloomberg writes that China “holds the world’s largest foreign-exchange reserves, at $3.1 trillion, and regularly assesses its strategy for investing them.” They use this control and flaunt it as a weapon against those who rebel against the unfair practices which they engage in. Trump, thankfully, is not falling for their threats any longer.
“With markets already dealing with supply indigestion, headlines regarding potentially lower Chinese demand for Treasuries are renewing bearish dynamics,” said Michael Leister, a strategist at Commerzbank AG. “Today’s headlines will underscore concerns that the fading global quantitative-easing bid will trigger lasting upside pressure on developed-market yields.”
Others with a more stable economic mind have said differently, however. “The U.S. Treasury market is a deep, robust market within the world and so we are confident that our economy, with the economy strengthening, that it will remain a deep, robust market,” declared Under Secretary for International Affairs David Malpass.
This may prevent the U.S. from increasing its supply of debt, but that too is a blessing, as anyone grounded in economics can attest to. “It’s a complicated chess game as with everything the Chinese do. For years they have been bothered by the fact that they are so heavily invested in one particular class of U.S. bonds, so it’s just a question of time before they would try to diversify,” admitted Charles Wyplosz, a professor of international economics at the Graduate Institute of International and Development Studies in Geneva.
If this is true, why would America even want to do business with such a nation? It is better that we cut ties and rely on ourselves.
This action would also hurt China, a fact that few in the states fully understand. “If China ceases to be a net purchaser of U.S. Treasuries, this is unlikely to have a significant impact on the overall yield curve unless China divests a large share of its total holdings in a short time period,” Rajiv Biswas, a Singapore-based chief Asia-Pacific economist at IHS Markit has shown us.
The fact of the matter is that outsourcing and many other practices that have hurt the U.S. economy needs to end. Many have asked why President Trump has hired illegals in his business, yet is against the practice now. The answer is easy: the game is rigged so that no one can stay in business and not hire illegally or outsource. This is not hypocrisy, THAT IS WHAT TRUMP AIMS TO CHANGE! He clearly understands the problem, does not like it, and is changing it.
If doing so happens to anger China, let them be angry. America can surely to a much better job by themselves than by relying on such a hateful and oppressive regime, to begin with.