U.S. Is Signaling a Hard-Line Stance Toward China, Says Cornell University's Prasad

Nov.18 -- Eswar Prasad, senior professor at Cornell University, discusses U.S.-China trade tensions and his outlook for trade negotiations. He speaks on "Bloomberg Markets: Asia."

[aleaiactaest]

Amazing to see the worlds most powerful country behave like such a victim!? To point fingers and blame others for their own pain? Its really puzzling. Think it would be more effective for US to look at structural internal issues than pointing at everybody else.

[jamesw]

To deal with United Snakes, I suggest confrontation.

[strictly_truly_asia]

Chinese too friendly indeed, love and crazy for US brands stuff . U name it and for sure u can find in any city of China . It's time for China to stop them earning unbelievable amount of money from china

[NangongReng]

Just do your own things, China.I support u.Do well for Asia sake.

[JSLeow]

Great Asia said:

The US government debt is US$21, 745, 000, 000, 000 now. China and Japan are holding US$1, 200, 000, 000, 000 each. They don't have the appetite to buy more US treasury bonds; in fact, all the rich countries across the world won't be able to buy much more. In the future, the US government can only borrow from the children and grandchildren of the Americans. So, how long can the US continue to use debt to sustain its economic growth?

Moreover, China is the world's largest trading economy with more than 130 countries count China as their largest trade partner. China total global trade volume is slightly above US$4 trillion (only about 30% of its GDP), and trade with the US is only US$500bn of the US$4 trillion. Trump's 25% tariff on Chinese goods will make China feel uncomfortable but not painful. Sadly, the 25% tariff will be absorbed by the American consumers and importers. Where to find US$500bn alternate sources in such a short period of time? Searching for alternate sources will involve money, time and risk.

I have said many times, the US economy is a bubble economy that is being sustained by debts, even the mighty US armies are being sustained by huge debt. Because the war industry is also an important growth engine of the US bubble economy.

Stupid Trump and his incompetent team will have NO CHOICE but to hold back the tariff on the next US$250bn Chinese goods because this US$250bn are consumer goods. It will hit the American consumers directly and cause the inflation rate to rise. It will result in the Fed raising the interest rate. Raising the interest rate will burst the highly inflated US economy and stock bubbles. Implementing the tariff on the final US$250bn of Chinese goods is tantamount to detonating a nuclear bomb in the US economy.

[andtam]

China doesn't give a bleep! China and the developing world will keep marching forward.

[jasonjean]

It's such a joke how Bloomberg frames the situation among these economies. In purchasing-power-parity (the gold standard for comparing economies) China is already 125% the size of the U.S. economy. It is growing so fast that it became larger than Japan in 2011 and then larger than the U.S. in 2014 (according to the IMF and the World Bank). And it is still growing at 6.5% yearly! Over 115 countries have now signed up for the Belt & Road Initiative and trade between China and BRI countries increases at an average rate of 12% every year. It's debt is shrinking and its foreign reserves are growing, but this goof says "the Chinese economy is slowing down." (and he's a Cornell Senior Professor!). In comparison, the U.S. is engaging in a massive economic stimulus to grow at 2.3% in 2017. This financial year the U.S. federal government had a 1.3 trillion deficit! (and that was just at the federal level). Every economic analyst concludes that this spending situation is unsustainable. Also the U.S. has massive economic debt bubbles just waiting to pop and throw the economy back into recession (i.e. the student debt bubble, the sub-prime auto debt bubble, etc.). It's simply fascinating how it appears that neither the U.S. media, nor its academics seem to possess the intellectual capacity to put these variables together. Or, more likely, the U.S. government simply dictates what they can and cannot say.

[anon]

Give Trump a pat on the back for his Trade War with China, seriously, he’s ch... ch... choking 😉 Wait, no, he’s okay. What’s that Mr President, it’s the Democrats’ fault?

[originalideas]

T-r/U\m~P = The builder of global cooperation. The creator of new world.

[thadiussean]

this just looks like typical good cop, bad cop.

[silversurfergw]

US is unilaterally walking out of most deals.. some very recent ones and all drafted mainly by US.

[asthranick]

There will be no trade agreement. Is simple as that instead roving around.

[jamesw]

I always suggest that China should cut its diplomatic tie with that unrealiable us and stop all trade as well. BTW, 560billion trade is only 17% of China GDP. China can do business elsewhere.

[joeoo]

China at present is different from former ussr, u s cannot get any advantage in economy.

[commenter]

God Bless President Trump. Enjoy the next 6 years!

[brucesnell]

PRAYING JESUS, HELP US/ME RECEIVE YOUR PERSONAL/PROFESSIONAL REVIVAL AND MOST OF ALL WHERE YOU HAVE PLACED US,  OUR FAMILIES/HOMEPLACES AND OUR COWORKERS/WORKPLACES, BRINGING FORM TO OUR COMMUNITIES/CHURCH, , , JESUS TEACH US, THE PLACE WHERE WE PLACE OUR FEET IS A PLACE OF REVIVAL, ''DO WE HAVE THE FAITH OF REVIVAL'', JESUS HELP US IN OUR UNBELIEF, , , JESUS TEACH US ETERNITY STARTED THE DAY WE ACCEPTED YOU AS SAVIOR AND LORD, JESUS TEACH US TO LIVE LIKE IT, TO LOVE, TO FORGIVE AND PRAY TO STRENGTHEN, ENCOURAGE AND COMFORT OTHERS, BRINGING LIGHT TO SEPARATE THE DARKNESS... I AMen

[bennygpc]

꧁꧂𝐓𝐡𝐞 𝐔𝐒 𝐀𝐥𝐰𝐚𝐲𝐬 𝐈𝐧𝐭𝐞𝐫𝐟𝐞𝐫𝐞 𝐈𝐧 𝐓𝐡𝐞 𝐀𝐟𝐟𝐚𝐢𝐫𝐬 𝐎𝐟 𝐎𝐭𝐡𝐞𝐫 𝐂𝐨𝐮𝐧𝐭𝐫𝐢𝐞𝐬꧁꧂

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