This is a graph of non-food and energy commodities in the CPI. It is not a perfect vehicle for screening out tariffs effects but is the closest broad category that I can think of.
Does it include services?
Economics Thread
- Thread starter sturg33
- Start date
Does it include services?
nsacpi
Expects Yuge Games
No. Just goods.
chop2chip
Well-known member
I hope so! Meanwhile you have farmers firing warning flares that they aren’t getting orders on the books for the fall harvest. Sounds like you’re in better luck than them.
Funny thing about food - You can protest all you want but everyone needs it.
nsacpi
Expects Yuge Games
we'll i'm looking for an excuse to cut back...so the tariffs are a blessing in that regard
chop2chip
Well-known member
The problem isn’t Americans protesting foods. It’s China buying from Brazil instead of US.
zitothebrave
Connoisseur of Minors
Ding ding ding we have a wiener.
chop2chip
Well-known member
Soybeans Without a Buyer: The Export Gap Hurting U.S. Farms - American Soybean Association
Farmers can’t afford casual trade policies when China walks away from U.S. soy By the American Soybean Association China is the world’s largest soybean
soygrowers.com
Yeah and when those crops aren't as good as Americans and the Chinese people aren't thrilled decisions are made.
Great article - CCP diversifying their supply chains and making investments elsewhere to do so.Soybeans Without a Buyer: The Export Gap Hurting U.S. Farms - American Soybean Association
Farmers can’t afford casual trade policies when China walks away from U.S. soy By the American Soybean Association China is the world’s largest soybean
Smart....we should be doing the same.
zitothebrave
Connoisseur of Minors
I don't think US Soy Beans that almost certainly are just going to animal feed are much better than Brazil's.
chop2chip
Well-known member
It’s easy to diversify your supply chain. It’s harder to diversify your demand.
Good luck farmers. I’m sure they’ll be bailed out
It sounds like you're arbitrability blaming tariffs when its clear this was a long term vision of the CCP.
If we are being honest and all....
chop2chip
Well-known member
This is fair criticism. Point taken. It’s only incidentally related to the trade war. China could have decided to do this for any arbitrary reason (similar to how the US arbitrarily imposed tariffs).
It’s not a healthy thing if our farming industry is dependent on a single country. But the trend to cut economic ties with other countries decreases the incentive to play nice in other areas. For example, once the US secures its own rare minerals source (a good thing) our incentive to negotiate in good faith with China decreases. Similarly, the same will be true for China as they cut themselves off American dependence.
I think this inevitable state we are in with China was unavoidable and it was either allow them to wait it out while they built appropriate infrastructure alternative supplies so that we can't exert leverage or we do it now while we still have time.
nsacpi
Expects Yuge Games
Inadvertently, thethe has made a point against these tariffs and the manner they have been rolled out. No country, least of all China, would want to enter into a long-term reliance on a key crop like soybean with a country that makes policy in such a capricious manner. Long after any trade deals are made I think we'll see many countries reluctant to have too deep an economic reliance on the United States.
You've said this many times about the US standing with things like NATO etc....
It never comes to fruition.
China has been planning this for 20 years. What did Trumps 'unpredictability' have anything to do with that?
chop2chip
Well-known member
On the margins, this will be true but the countries you’re referring to (Europe, Canada, Japan I assume?) don’t have enough demand to support each other’s export market. They will need to choose China or the US and whatever anger they have towards the US is peanuts compared to China.
The world will always choose the US and our market. Thats why you have to use that leverage to hurt China at this moment.
nsacpi
Expects Yuge Games
If I was Canada, I would be investing in port facilities to ship natural gas to other markets. It is a national security issue for them, and they should diversify who they sell to.