As expected, trade negotiations with China concluded on last Friday with no trade deal in sight. Treasury Secretary Steven Mnuchin called the negotiations “constructive”, and that helped calm the financial markets, but there really isn’t any reason to be optimistic at this point. The negotiations that happened this week did not even come close to producing a deal, and neither side is attempting to claim that there will be an agreement in the near future between U.S And China. Instead, it appears that moves are being made that could lead to a protracted trade war. Unless someone backs down in a major way, this trade war is going to last for a very long time, and the Chinese have made it exceedingly clear that they are never going to back down on the core issues. So it looks like we should all get prepared for an extended trade war, and this trade war is going to affect you and your family in a number of different ways.
In this video I will show you 4 ways how the U.S. China trade war is going to affect you and your family in the near future:
First of all, we should all expect significantly higher prices at major retailers…
In particular, price increases will be felt most acutely at large retail chains such as Wal-Mart that purchase goods in massive quantities from China. Needless to say, this will hurt those at the bottom of the economic food chain the most.
Secondly, this trade war will potentially result in a loss of jobs and income for many Americans. In fact, the Trade Partnership estimates that 2.1 million U.S. jobs will be lost if Trump’s next round of tariffs is imposed…
Thirdly, economic growth would definitely be impacted by an extended trade war.
Fourthly, an extended trade war would mean big trouble for global financial markets. Over 2 trillion dollars of global stock market wealth has been wiped out so far, but that is nothing compared to what could be coming…
According to the latest numbers, we bought 539.5 billion dollars worth of goods from China last year but they only purchased 120.3 billion dollars worth of goods from us. For years they have been slapping enormous tariffs on us, stealing our intellectual property and making it exceedingly difficult for U.S. businesses to do business over there.
Meanwhile, they have been flooding our shores with cheap goods produced by government-subsidized businesses, and they have been getting exceedingly wealthy as a result.
So we can either allow them to keep taking advantage of us, or we can stand up for ourselves.
But let there be no doubt – standing up to China will be extremely painful economically. And at this stage of our society, Americans are not even equipped to handle a low level of economic pain.
A perfect storm is brewing, and this trade war is just a small part of it.
Sometimes you can try to do the right thing, but it turns out badly anyway. Standing up to China definitely needs to be done, but it is very difficult to see how this is going to end pleasantly. In fact, many believe that our relations with China are about to take a major turn for the worse.
We shall see what happens. As always, let us hope for the best, but let us also prepare for the worst.
Script written by Michael Snyder:
Books by Michael Snyder:
Music: CO.AG Music
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