China Shatters Trade Records as Tariffs Fall Flat
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China breaks record on trade. Record trade surplus. Again, all expectations were, geez, the tariffs were gonna knock China’s surplus down to size. Export growth of 5.5%, surplus to 1.19 trillion. Yes, yes, exports to the United States without a doubt has fallen greatly.
But Europe is as they flooded Europe with items and the rest of the world one of the one of the goals behind the tariffs was to force China to become more of a a consumption economy so more of their economy be based on consumption rather than just exports and Obviously that failed but the funny thing is is that?
China wants the same exact thing. They’ve been pushing and trying to stimulate their economy for some time. There’s been a lot of worries inside China in regards to a deflationary spiral. Now, again, there’s good deflation and there’s bad deflation. Whenever people hear the word deflation, they automatically assume, that’s horrible. That’s terrible. Well, no, Deflation.
Items that you have to purchase every single day is a good thing Would you be upset if the prices of your food went down if the price of your car insurance went down? No, no, no, that’s good deflation Bad deflation is when it’s the price of things more like durable goods Are continuing to drop because in people if they can they hold off in the same way I explain it this way comes to deflation
If you need to buy yourself a lawnmower or you want a new lawnmower, you want to know the one you have works, but it’s just getting old and you see some of the new bells and whistles on a new lawnmower and you want that. But, know, you know, your little birdie tells you that next month there’s going to be a sale on lawnmowers. The price is going to come down. You’ll probably wait a month. OK, that’s what happens.
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with a bad deflationary spiral when the prices on everything continue to drop and people hold off on making purchases knowing that guess what, it’s gonna be cheaper next month. China’s been dealing with that. And they’re also dealing with the fact that again, their real estate market is still an abjunct disaster. People have way too much money tied up in real estate there and again, the prices continue to drop.
It didn’t work. The tariffs did, well, our tariffs most certainly didn’t work in changing their economy. Never thought it would in the first place. China’s gonna continue to do what it’s going to continue to do, and that’s make a lot of stuff. Watchdogonwallstreet.com.
