What Happens During A Trade War..

Over the next few days some countries will find out how their trading relationships with US may be very different and will have a detrimental effect worldwide from bond markets down too the price of a metal can of beer..

What do people think ,will this have any effect on Australia?..

 

I'm not going to buy a Mustang or a Jeep.

Boycotting them already.

 

I was going to post the latest updates, but maybe just walk up the bottle shop a stock up on Wild Turkey..

 

apparently australia may have special exemption to a certian degree.. better than nothing i guess ??

the real trade war hasnt even begun yet.. this is just tip of the ice berg.


wait till the US issue the war on IP theft by chinese companies.. that is where the real modern warfare begins.

 

Bill Gates Believes Another Recession Is a 'Certainty'

Bill Gates: Another Recession Is A Certainty

has Bill Gates foreseen it already?

 

Nothing, we are all good, wont apply to Oz due to our relationship with US same as Canada

 

All simply bluster.

 

As far as Australia; I think the trade war is only applying to steel and aluminium?, so it will affect our steel making and aluminium industries I suspect...maybe we need to consider similar moves to protect our industries (what's left of them)?
But we also can't blame the USA for wanting to level the playing field..for years other Countries have been enjoying the better end of their trade deals with the USA (proof in the enormous USA trade deficit each year) - they have arranged a good deal for their own Countries as they should - and now the USA is wanting to do the same for their own Country - as they should.

 

JEEP...
Just Expect Every Problem

 

The problem with trade wars is they can affect Australia in other areas.
They are reporting today that Canada,Mexico and Australia will be exempt from the Tariffs.
But not China ,South Korea, Brazil and Russia
China (and possibly South Korea) source a lot of their high grade Iron Ore from Australia (and Brazil)
Brazil is the major competitor of Australia for selling iron ore to China and appears to be a big loser in selling steel to the U.S.
So what happens to their excess steel, and eventually iron ore.
Where will the U.S get the additional iron ore from , will they get that from Australia or Brazil or can they supply that internally.
There is already an oversupply of steel production worldwide, and China is sitting on large stockpiles of iron ore ,with the expectation that once winter is over they will ramp up steel production to normal levels.

 

I agree wit the above.
I think the USA are looking to rejuvenate their own internal industry..more factories and jobs so they don't have to source overseas product.

 

The US deficits have little to do with any "bad deals", they just spend more than they earn and borrow the rest. Their steel tarrifs will hurt them much more than help. Together with lopsided tax cuts and other misguided policies their deficit is going to blowout, pushing down the USD, pushing inflation up and increasing interest rates there and globally.

 

your avatar gives you away.
The tariffs should see the rebirth of their steel industry, provide more GDP through retained earnings and profits for Companies within their Country, more tax revenue through increased jobs (and lower welfare through lower unemployment)...the result will be the start of a reduction in deficits, and more funds available for much needed infrastructure projects (more jobs, more tax revenue, less welfare)

 

What happened when George Bush bought in a 30% steel tariff in 2002, was the government got $300m in revenue. 250,000 jobs were lost in the steel and machinery manufacturing industry alone. Private companies lost $700m in trade, all in one year, as it was apparent it was a stupid idea, it was scrapped.

 

When Bush brought in a steel tariff GDP fell so the tariff was scrapped.

 

I know a few good economists and they expect that this is the start of a slow, but hard to escape deterioration of the US economy. This is further compounded by the timing of tax cuts, which came at a time when the US economy was growing well and should be instituted in more negative times.

Watch US wage growth closely this year.

 

Impossible! Economists are nothing more than paid guessers who cover that fact with so-called analysis.

 

Lol... and they always get it wrong