I'm Boycotting Chinese Goods As Much As Possible

olroadbeech

Happy Verified UPSer
Let me try one more time with you. When it comes to feeling the need to boycott Chinese made goods, I ask you this question: What forces have combined to create that particular public sentiment?
My reason is I feel we are weakening our nation and strengthening China.
The trade deal we have is not equitable.
 

zubenelgenubi

Living for Lunch Break
My reason is I feel we are weakening our nation and strengthening China.
The trade deal we have is not equitable.

That's the down side of having our currency be the international reserve currency. We have to operate at a trade deficit to get enough dollars into circulation globally.
 

oldngray

nowhere special
Yes, I’m always happy ! 🤗
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Box Ox

Well-Known Member
My reason is I feel we are weakening our nation and strengthening China.
The trade deal we have is not equitable.
That's the down side of having our currency be the international reserve currency. We have to operate at a trade deficit to get enough dollars into circulation globally.

So would Trump be wrong to continue complaining about it if he runs for President in 2024?
 

zubenelgenubi

Living for Lunch Break
So would Trump be wrong to continue complaining about it if he runs for President in 2024?

No, we should probably allow the dollar to not be the reserve currency, at least not the only one. I think multiple commodity backed currencies, along with a debt based reserve currency would be better to level the playing field.
 

vantexan

Well-Known Member
That's the down side of having our currency be the international reserve currency. We have to operate at a trade deficit to get enough dollars into circulation globally.
Actually our money gets held by the central banks of other countries by their buying our bonds and are paid back in dollars. That's the meaning of being held in reserve.
 

zubenelgenubi

Living for Lunch Break
Actually our money gets held by the central banks of other countries by their buying our bonds and are paid back in dollars. That's the meaning of being held in reserve.

That's all fine and good, but they have to have dollars to buy our treasuries and they have to wait to get paid until the bonds mature. In the meantime, a US trade deficit enables the monetary system to function.
 

vantexan

Well-Known Member
That's all fine and good, but they have to have dollars to buy our treasuries and they have to wait to get paid until the bonds mature. In the meantime, a US trade deficit enables the monetary system to function.
Actually they could call in their debt at any time but doing so, in the case of major holders of our bonds, would weaken the dollar, make their currency stronger against the dollar, and hurt their exports. So there's a constant give and take. And in the case of China they take too much and Trump was trying to correct that.
 

zubenelgenubi

Living for Lunch Break
Actually they could call in their debt at any time but doing so, in the case of major holders of our bonds, would weaken the dollar, make their currency stronger against the dollar, and hurt their exports. So there's a constant give and take. And in the case of China they take too much and Trump was trying to correct that.


All I'm getting at is that controlling the world reserve currency, especially when that currency is based on debt and other financial instruments, has its down side. A trade deficit is one of those down sides.
 

DriveInDriveOut

Proud Deplorable
No, we should probably allow the dollar to not be the reserve currency, at least not the only one. I think multiple commodity backed currencies, along with a debt based reserve currency would be better to level the playing field.
Good luck with that.
The federal reserve is going to push a CBDC and eventually that will be a world currency.
 

zubenelgenubi

Living for Lunch Break
Good luck with that.
The federal reserve is going to push a CBDC and eventually that will be a world currency.

Could be. I don't pretend to know what's going to happen. Gas for Rubles is shakin' things up right now. There's a trend towards gold backed currency in the US, and there will probably be a big populist backlash against a centrally controlled digital currency, as it will be used to control every aspect of people's lives via a social credit system.
 
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