Tuesday, January 17, 2017

For those of you who don't know--

China's Presdt Xi (at Davos) was referencing Deng Xiaoping's famous words when he launched the 1978 Reforms, which has resulted in China's phenomenal growth over nearly 4 decades, and also China becoming an economic (and soon of course political) superpower.

"When you open the window a few flies (like rock music) might come in."

And in the USA owing so much money in Treasury Bills to China, so much so that if China were to cash in these Bills, the rug would be pulled out from under the US economy.

So I do not think d t can really "deliver" on his protectionism election promise.

A high % of what we buy is imported consumer goods, esp. from China.

And really, USA cannot offend its banker, which is just what d t is doing now, flirting with small (white) China, Taiwan.

At most, d t will be a tweeter spouting interference and keeping attention on "small" ie microeconomic or sectoral issues.

If he does not see economies of scale and advantages of international trade, I don't see what he sees (or maybe he sees, but this is all slick talk.)

Who wants to bet how many days he will last before impeachment or something else.

kmk
1-17-2017

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