China may be forced to buy US soy

[Woolfsmck 2,763]

https://www.yahoo.com/finance/video/china-may-forced-resume-soybean-192200158.html

Tarriffs increases caused Chinese companies to buy some ag products from Central America...

But the demand increased and the US suppliers are the only ones with a surplus for sale.

US prices dropped when the Tarriffs went into effect, so the actual cost of the soy beans is marginally higher.

Net result is the producers (farmers) get less for their crops, and the government gets a big tax revenue boost.....

So Trump's 12bil farmer bailout is meant to balance the equation for the farmers so they don't pay for the political snit going on....

[Economy 52,861]

Well, let's see how long this drags on for... China is one of the few Countries I can understand stern action with

 

but because their Government is very authoritarian and citizens don't cause the same kind of political pressure Western Nations do, in that sense China can withstand more damage if the Government chooses to be stubborn

 

If both Nations are severely damaged from trade war Trump would get politically attacked more than the Chinese Government would in their Nation

 

I just want this to end ASAP to remove uncertainty from economy

 

We are in a late stage of the economic cycle, equity trading valuations are high and imbalances starting to build macro-economically... Higher inflationary pressures will also force gradually higher interest rates which in turn eventually could trigger the next downturn

 

We need certainty so companies will invest and add productive capacity so the expansion can continue at a sustainable rate and when the next Recession innevitably comes it can also be a mild pullback that leads to only limited job losses and resumes growth shortly after, it does not need to be a severe downturn

 

But where we are now the economy is fragile, the expansion could end abruptly and recession hit if things are not kept stable

 

Where we are now with little spare capacity, even a year or two of reluctance by companies to expand would cause high inflation, rapidly rising rates and a big tumble in the stock market leading to a likely recession