Trade war threats get real as US and China impose tariffs

https://static.ffx.io/images/$width_1024%2C$height_577/t_crop_auto/t_sharpen%2Cq_auto%2Cf_auto/82bd7cbf08c3ea4e938372cfb341f3c7db1e417e

Donald Trump has turned his threats of a trade war into reality. (Photo: AP)

 

US President Donald Trump fired the biggest shot yet in the global trade war by imposing tariffs on $US34 billion ($46 billion) of Chinese imports. China immediately said it would be forced to retaliate.

The duties on Chinese goods started at 12:01 am Friday in Washington (2:01 pm AEST), which was just after midday in China. Another $US16 billion of goods could follow in two weeks, Trump earlier told reporters, before suggesting the final total could eventually reach $US550 billion, a figure that exceeds all of US goods imports from China in 2017.

US customs officials will begin collecting an additional 25 per cent tariff on imports from China of goods ranging from farming plows to semiconductors and airplane parts. China’s officials have previously said they would respond by imposing higher levies on goods ranging from American soybeans to pork, which may in turn prompt Trump to raise trade barriers even higher.

Continue reading

California Passes Stealth Law Banning Businesses That Aren’t Profitable and Fair Enough

Essentially, voters allowed themselves to be duped into voting themselves out of business. Look for the cannibalization of the economy through layoffs and closures of businesses to begin a little before 2018, when the law goes into effect.

 

Business owner who supported new minimum wage realizes math isn’t strong suit—layoffs now likely.

What would you do if some small-minded government bureaucrat told you that your coffee shop or widget factory didn’t make enough money to justify letting you stay in business, and you were hereby ordered to shut down?

You would probably show him the exit.

Continue reading

America’s Alice-in-Wonderland Economy

Debt is good, dollar is gold, and stocks only go up—things are getting curiouser and curiouser.

The phrase “mad as a hatter” refers to the 19th-century use of mercuric-nitrate in the making of felt hats. Long-term exposure to mercury caused hatmakers to experience mood swings, tremors and emotional imbalances that made them appear mad.

We live in a world gone mad. Money printing—today’s mercury—has poisoned the whole financial system.

Trusted relationships have broken down. Fundamental truths appear suspect, and economic laws no longer seem to hold true. In America especially, it’s as if the whole economic system fell down a rabbit hole into a world where up is down, debt is good, and people exuberantly celebrate unbirthday parties every day of the year but one.

Continue reading