How Can Trump DECREASE the US Trade DEFICIT? – VisualPolitik EN


There’s no doubt: the trade war is one of
the hottest topics in international politics. Here at VISUALPOLITIK, we’ve already spoken
about the consequences that this trade war may have – or which it may already be having. However, we should explore a question many
of you have asked – especially through our PATREON page – that is essential for analyzing
this entire matter. Why does the United States have such a large
trade deficit? Why do they have such a gigantic deficit,
which surpassed 550 billion dollars in 2017? And most importantly, how serious is it and
how can it be fixed? Yes, some of you may be thinking… Well, that’s easy… there’s a trade deficit
because the United States imports more than it exports, among other things because of
the evil unfair competition that has deindustrialized the country. Ergo, if we punish imports, the trade deficit
will decrease, right? After all, this is the stance of the White
House, of President Trump. Well… just a moment… because things aren’t
anywhere near as simple. Listen up. (THE EASY EQUATION) Step One: Choose, magnify and report a problem;
Two: place a large number on the table that we can all visualize; Three: create and blame
an enemy – whether it’s real or not… it doesn’t matter-; Four: warn everyone
of the consequences of this problem and, finally, end with a simple and electoral remedy…
that is also false. Folks, these are the steps for creating a
populist political discourse… a discourse that at the moment of truth may be worth nothing…
but which may help you win elections. Well, that’s exactly what the White House
is doing. With the aim of winning votes, they have created
a political discourse that, so to speak, is fundamentally based on a 3-element equation: But don’t worry, this has nothing to do
with math… at least not entirely. First element: the trade deficit causes terrible
damage; second element: this damage is due to the
other countries’ unfair competition, especially China; and third, the threat: due to the other countries’
bad behavior, the US’s industry and power is falling apart. However folks… discourse is one thing and
reality is another very different one. See, to magnify the problem, Donald Trump’s
commercial advisors alert us again and again about the negative impact that this whole
trade deficit has on the North American economy. To do so, they use the accounting entity that
you’re seeing on the screen, which is one of the formulas used to calculate the GDP. Thus, GDP equals Consumption, plus investment,
plus public spending plus exports minus imports. [I mean, this is economics 101.] Well, the fact is that seeing it this way
makes it look like the trade deficit is causing a huge amount of damage to the US economy,
and, of course, if the difference between exports and imports decreases, then the GDP
would increase. Prosperity for everyone. Easy, right? Well… just a second, because this all implies
simplifying things to the point where any resemblance to reality is purely coincidental. Why do I say this? Because relations with the rest of the world
have a lot, and I mean a lot of influence, on the other sections that make up the GDP. At the end of the day when a foreigner invests
in the United States or when US companies buy raw materials, capital goods or intermediate
goods, the effect on the economy isn’t exactly negative. Quite the opposite. If for example all these goods become expensive
because of tariffs then companies lose competitiveness. Here on VISUALPOLITIK we’ve already talked,
for example, about how tariffs have caused Harley Davidson to move its processes to Europe. In a similar way, more expensive import products
would also affect the retail sector… so that in the end… the relationship of this
supposed trade deficit with the GDP isn’t as direct as it might seem at first sight. The second element of political discourse
that the White House uses is that of unfair competition, especially in the case of China… And of course, supposedly because of Beijing’s
bad actions, China’s goods and services deficit alone exceeds 300 billion dollars
per year. And that’s when Trump thinks… let’s see,
if we decrease China’s trade deficit… then problem solved…. Well, folks, things don’t work that way
either. First, this unfair competition is at the very
least questionable. China has been blamed for manipulating its
currency. Well… it’s not true. In fact, it’s the opposite. In recent years the Chinese yuan has risen
a lot against the dollar. And do you know what happened to the trade
deficit with China when Beijing didn’t devalue its currency to export more? Well… it shot up. How can that be? Well, in reality, the US’s trade deficit
with East Asia in terms of manufactured goods has been more or less constant since the mid-90s. What has changed is that what once came from
Taiwan or Japan, among others, now comes directly from China, as it’s become a great assembly
center… And that’s precisely what has fattened the
US trade deficit with China so much. And regarding that last point… the one about
deindustrialization and loss of competitiveness due to unfair competition… well… it isn’t
true either. US exports – which remains the second largest
exporter in the world – are at record levels… just like industrial production. Check this out. No, I’m sorry, but China isn’t devouring
the American economy. But… just a second, then… if Trump’s arguments
aren’t true about the entire United States trade deficit… Why is there such an imbalance? What are the real reasons for it? Listen up. (THE REAL REASONS) You may be surprised to know that what caused
the US trade deficit wasn’t any country’s unfair competition. This time, all the fault stayed at home. Yes, leaving the theories that speak of evil
Chinese schemes to destroy the West aside may be much less exciting… but… I’m sorry… that’s the way things are. See, the commercial hole is due to the low
savings rate in the United States; the dollar is a reserve currency, which makes
it highly demanded and overvalued along with the huge amount of capital that
comes to the United States every year from abroad… for example, from China. As we’re going to see, this is what explains
why the United States spent more than 40 years with a trade deficit without the economy suffering. More than 40 years! In a row! Consuming more than it produces. Because folks, Trump always talks about the
trade balance… but never talks about the financial balance. And there’s the trap. (AN ABSOLUTELY LOST GAME?) There’s an economic law that the US President
seems to be unfamiliar with: the balance of payments, which measures the
monetary transactions of a country with the exterior, is always in equilibrium in a system
of floating exchange rates like the one that exists nowadays. Allow me to explain: when there’s a trade
deficit, it’s basically compensated by capital or financial account surpluses, which more
or less reflect the balance between the capital that arrives in the country and that which
leaves. That’s the money that comes in and the money
that comes out. ( A persistent current account surplus is
always balanced out by a capital account deficit. It’s one of the eternal laws of economics,
like gravity in physics”. – Konrad Putzier, a reporter at The Real Deal) Look at what happens, precisely, with the
United States Balance of Payments: As you can see, the trade deficit is offset
by surpluses in the financial balances. Now, does this mean that a country can buy
whatever it wants abroad, without limits? Well… obviously not. It can only import if it manages to finance
or compensate for its imports with capital that comes from abroad. Otherwise, first, its currency would depreciate
a lot – a pure law of supply and demand, high demand for foreign currency and little
for local currency – and then, eventually, the foreign currency reserves of the Central
Bank would dry up… unleashing an entire exchange crisis. This is something that in Latin America, especially
in Argentina, is very well known. Well ok… so what happens in the US’s case? Well, America is the greatest refuge for capital
on the entire planet, therefore every year huge amounts of capital enter the country. Practically half of the world’s savings are
spent investing in this country, either as loans; direct foreign investment or by buying
shares, bonds, etc., etc. Have you noticed, for example, the impressive
run that the SP500 has had in the last 9 years? Well… it’s precisely that enormous capital
flow arriving every year to the United States that allows Americans to consume more than
they produce and which, despite incurring commercial deficits for more than 40 consecutive
years, has led the country to practically always find employment, and record levels
of exports and industrial production. Now we can understand things like this: (“Whether it’s Japan in the 1980s, Germany
in the 2000s or China in recent years, countries that invest heavily in the New York real estate
market also tend to have a massive trade surplus with the U.S.” – Konrad Putzier, a reporter
at The Real Deal) Basically: thanks to the capital that comes
from abroad, the United States can afford to consume more than it produces. So in addition to exporting goods and services,
the United States also exports financial securities. This is the key. But, wait, does this mean that the fiscal
deficit can’t be reduced? Not at all. (HOW TO DECREASE THE COMMERCIAL DEFICIT) As you can see, sometimes things aren’t
as they seem at first. Having a trade deficit doesn’t have to be
bad. After all, the ultimate economic objective
must be to improve living conditions, that is, the ability to consume more and better
goods and services. But… yes, a bulky and continuing trade deficit
can have some drawbacks For one, it assumes more risk… a risk that
capital will stop flowing towards the country, which could lead to a huge crisis. And for another, it favors debt growth. A country flooded with money from abroad? That means abundant and cheap money, and who
doesn’t want cheap money? So let’s continue with the key question:
how can Donald Trump decrease the US trade deficit? Well, there are, mainly, 3 options… 2 that we should set aside and 1 that’s
highly recommended. The first two – those we don’t recommend
– would be either agreeing to devalue the dollar and stop it from being the hegemonic
currency of the world with the Federal Reserve, so imports would be much more expensive and
nobody would want to take their money to this country; Or the US could restrict the capital coming
from abroad, for example through taxes… of course that… in the long run, would be
a disaster. The other option, the one we recommend, is
consuming less, saving more and favoring productive investment. That way, fewer foreign loans would be demanded
and much more wealth would be generated, so that, in percentage terms over the GDP, trade
deficits would be much smaller. And to achieve this goal, stopping the government’s
growing fiscal hole would be a fantastic idea. But Trump, despite his speech, is going in
the opposite direction. It would also be a fantastic option to allow
American companies to fill the nearly 6 million vacant jobs that the North American economy
suffers today by bringing professionals from abroad. However… protectionist policies don’t
work… first because all the other countries tend to respond to tariffs with their own
tariffs, which reduces imports but also exports; and most importantly because the increased
costs led by tariffs make the United States a less attractive country to invest in…. And that, in the long term, is a very bad
thing. Perhaps, folks, the strongest proof that American
companies need to be open to the world is found in the Trump family itself. Yes, in the Trump family. See, Ivanka Trump, the President’s own daughter
and White House special adviser has just closed her clothing and accessories brand. Ivanka made this decision after suffering
a steep drop in sales and a huge amount of criticism for some alleged contradictions Do you know why she was so criticized? Well… can you guess where she was making
her products? Surely in the United States, right? Well… no, wrong… the correct answer is
in China! Most of her products were made in China! And also in countries like Vietnam and Indonesia. Has Ivanka Trump herself been an accomplice
of the evil entities that have been attacking the United States? I’ll leave that there. So I really hope you enjoyed this video, please
hit like if you did, and don’t forget to subscribe for brand new videos. And don’t forget to check out our friends
at the Reconsider Media Podcast – they provided the vocals in this episode that were not mine. Also, this channel is possible because of
Patreon, and our patrons on that platform. Please consider joining them and supporting
our mission of providing independent political coverage. And as always, thanks for watching!

100 thoughts on “How Can Trump DECREASE the US Trade DEFICIT? – VisualPolitik EN

  1. I simply do. Not. Get. The left and self proclaimed centrists' defense of China.

    China is killing the world's environment and economy and yet these people constantly defend them when the truth is out in the open and undeniable. Maybe Chinese spies and foreign agents have actually infiltrated the West, not Russian like the media pushes.

  2. You don't understand why Trump has established tariffs. He is using them to level the playing field.

    1. Example 1: We have no tariff on India. India has 100% tariff on us. So, if we make widget for the same price as India or better quality, our widgets will cost twice as much as an Indian widget. Trump plans to establish a 100% tariff on Indian goods. The hope is that India will agree to an agreement where both countries reduce their tariffs to 0%.

    2. Example 2: China and us have a tariff of 100% on each others cars. China sends the cars it builds to Canada without a rear view mirror. Canada says it built the car by combining a rear view mirror with a car that didn't have a rear view mirror. Thus China evades the tariff. We tell Canada that we will have 100% tariff on all cars from Canada. Canada is screwed because not only will Chinese cars from Canada be taxed, but Canadian cars, too. We tell them we won't put oon the tariff if they agree that all cars they send us from Canada are at least 60% assembled in Canada (thus stopping the Chinese evasion.) Canada agrees so that their own car industry is not hurt. This is what the new NAFTA did. The threat of tariffs stopped us being screwed by China.

  3. There are very few personal problems that cannot be solved through a suitable application of high explosives." – Scott Adams

  4. So money from abroad comes into the USA and buys up companies and everything else, this gives the US the money to buy the cheap goods from abroad that were made back in the states, that was until its workers earned too much! Then they wonder why people voted Trump!

  5. I love how This channel is a leftist propaganda. You forgot to mention the fact that China subsidies a ton of industries that then make it impossible for private business to compete like steel and coal esc….. you also conveniently forgot to mention he fact that China also steals billion of us technologies then sells them costing us more money. China uses the WTO when it’s convenient and then stops when it feels like it. They still designate themselves as a developing economy so that they do not have to conform to international environmental requirements which would surely not benefit them.

  6. Harley Davidson started planning their move way before trump

    Also trump seems to be doing some stuff right, it's time to start giving him some credit

  7. Trump is right. Trump is using tariffs as a tool to get bad actors like China to play fair and it's BS to claim that China is playing fair. China shields it's industries from fair competition in the form of government subsidies and tariffs on imports. Trump is hitting them with tariffs to force China to play by the rules and level the playing field. Look at it this way the USA produces more than China with only a quarter of the population. The USA is far more efficient so would benefit from free trade with everyone as they produce more for less they can beat the competition. Trump is forcing change through tariffs. Tariffs for Trump are a tool not the end game.

  8. GDP = C + I + G + (X – M) ……..2:49
    C – Private consumption includes spending on imports (M), so does I and G, that is why it is necessary to deduct M again, because GDP only measures the goods that were produced within the country.
    GDP is measured by looking at spending on C, I and G (all of which together contain total spending on M). To move from what money is spent on to what is produced, we have to deduct everything that is being spent on that is not being produced in the country (M) and add everything that is not being spent on, but is being produced in the country (X).
    If a consumer for instance spends money on a shirt that was made in China, this is counted as spending under C, but this is actually spending on an imported product and thus it has to be deducted from GDP, because this product was not produced in the USA.
    Thus by decreasing M there is no change to GDP, because although decreasing M will mean that less is being deducted from the equation, it also means that C+I+G will be less by the same amount that M will be less and thus cancel each other out.
    Imports have no effect at all on GDP in this equation.

    "Economics 101…" 2:54

  9. i dont think you can make the arguement that trade deficits dont matter if they didnt matter other countries would have no qualms in negotiating on them… the very fact that countries like china or germany dont want to reduce their trade surplus is obvious evidence that a trade surplus is always better than a deficit and a large deficit is always worse than a low one… you can try to complicate it all you want but the simple is countries need to manage their trade.

    chinas cheating on trade isnt jsut tariffs chinas laws on money leaving the country for foriegn investment means less money comes back from china to the us than it otherwise would. it also massively distorts chinas market and leads to weird bubble markets there.

  10. If the US fails to weaken the dollar then industry cannot return to the USA. Central Banks 'support' the dollar by buying bond and our politicians love spending. Screw the financial balance. We need to end the trade deficit. We need to finally have free floating currencies.

  11. I wish china can open up the market. Its pretty expensive for us chinese people to buy foreign goods after the tariff. I hate everytime i come to US i have like a million orders from relative and friends to buy stuff from milk powder to vitamins to freakin coach bags.

  12. Some are still don't get it. Nice explanation that's almost exactly what I have in mind.

  13. If USA wants to fix their trade deficit, then the US needs to MAKE QUALITY PRODUCT THAT OTHER COUNTRIES WANTS TO BUY. And they arent doing that. Nobody buys american products. While americans do buy European luxury and Chinese cheap plastic shit. So its a one way street.

  14. Respectfully I disagree with your political analysis on China/ Europe trade deficit with USA. There is a more profound reason behind this imbalance . Here is VDH short analysis. There is anther one hr lecture that he dissects it in more details.
    https://youtu.be/crIRKZAO-Eg

  15. Simon with this video I figured it out, you are a globalist! What Barbon calls it Party of Davos
    https://youtu.be/pcE5wvX8Xl0

  16. Trump cannot do anything but damage America and what he has already done will take decades to undo and some of it will never be fixed.

  17. When China steals all your factories , you have no factories , ergo no employment and 1/3 of the population of the US is on welfare. When 100 % of the population of the US is collecting welfare and 100 % of products are imported , the economy will still be healthy ?

  18. i watched the whole video but understood only 40 % of it. it must be trade deficit.i don't know he china was behind it.

  19. this guy just said china dont manipulate their currency!!!! he is a paid chinese stooge!

  20. A. By getting the heck out of politics, and go to jail where he and his cronies belong

  21. How to decrease trade defecit?

    1 Invade a country
    2 Occupy it
    3 Plunder its resources

    Repeat.
    Problem solved.

  22. China did use high tariffs to bar foreign imports, commercial malpractices, forced and theft of western technologies to make up its high trade surplus.

  23. Yeah, let's import millions of professionals into the USA, the poor corporations can't find enough workers! Ignore the fact that wages in America haven't risen in decades, we need to assure that America remains a safe investment for the global financial class. The American workforce is the most educated and productive it has ever been. There are already tons of H1B visas given to replace skilled American employees with lower cost labor. It was never about a lack of workers and was only ever about lowering wages.

  24. They regularly steal the intellectual property developed in America and elsewhere and make their knock offs without spending nearly anything on R&D. Have you seen the videos of their BMW ripoffs they drive around over there that are nearly identical? Someone needed to stand up to these thieves. Not to mention the fact that we are funding a slave state.

  25. great video! yanis varoufakis 'Global Minotaur' book is explaining this phenomena very nicely (but mostly from the perspective of function of currency and banking), the whole trick would not work without US army and banking functioning as 'world' money and army on the one hand without the production and capital surpluses of the whole world after WW II up until now on the other (USA can demand for other countries to invest in USA and accumulate capital in dollars – special privilege which goes back to WW II). USA is a symbol of the whole world not knowing what to do with the wealth and Trump is de facto 'leader of the free world' (seems funny now?), he is the most accurate representation of the whole western world. Maybe not the people, but the system.

  26. your a wanker chinas currency Is pegged not floating your argument is totally false

  27. All I know as a senior every thing I used to buy was made in the USA now everything including junk and knockoffs are made in China. So I stay away in supporting a communist country just my opinion

  28. America wiped out trade deficit with Japan by devalue the dollar against the yen from one dollar = 300 yen in 1977 to 110 yen now , America actually weakend japan economy so much and can do the same to China too .

  29. You dimsiss Chinese policy as a factor in trade imbalance? Talk about government-sanctioned IP theft by China and it's true cost to the US economy plus the CCP blocking American companies from doing business in China (Google, Amazon, Facebook, etc.) AND the Chinese companies counterfieting American products with CCP blessing.

  30. The simple fact that greedy corporations decided to eliminate high paying American jobs to have the same products made in china and elsewhere is not even a political issue or one politics can stop [at least not in a 'free market economy' ] because without violating a whole bunch of established traditions [with our without laws to back them up] with a whole lot of new and 'oppressive' fiscal laws [such as requiring that all American companies hir ONLY American workers, ON American soil], there is simply no way you can keep them from firing you and hiring some poor person in another country who will work all day for what you pay for a cup of coffee to go.

  31. WHAT A FRICK ,TRUMP IS A LIER !!COVERING UP,FOR THE $21TRILLION MISSING ,IT IS STOLEN ,BY THE FED/BANKERS/THE GOVERNMENT ,TAKEN OUT OF THE COUNTRY !IVANKE SWITCH ,HER COMPANY ,TO HER SISTER IN LAW !!ALL IN THE FAMILY !!

  32. Trading away our industrial capacity and selling securities. it isn't sustainable. it's bad economics.

    Protectionism won't fix it, but that doesn't mean it isn't a problem

  33. China devalues its currency by buying bonds on the market. They do this because they need to keep unemployment of their massive population down or else there would unrest. 10% of US unemployment is around ~30million. 10% unemployment in China is ~110 million. Huge difference.

  34. This is completely inaccurate in so many ways. Best described as an over simplification of an over simplification of geopolitics. The easiest thing to point out is that Trump's issue isn't necessarily the trade deficit but more the lack of free trade…maybe tariffs isn't the best way to get to free trade but at least he is addressing the issue.

  35. You forgot to mention that Consumption is 70% of USA's GDP. By reducing consumption as suggested would b political suicide because people believe that GDP growth is the ultimate measure of the state of the economy.

  36. They should change the Constitution so you could become president.

  37. You forgot to mention that the US buys $800B of disposable consumer goods, and china buys $800B of US cement factories, farms, ports, mines and tech firms. China: very smart, rest of world: foolish and naive. (And I won't even get into the currency pegging, restrictive currency trading, and banned foreign ownership, etc ) Consumption and savings are just a small part of solution.

  38. Yes,reduce subsidies of foreign governments!!!
    The US market is 50% of global consumption,we are playing to win!!!

    Breton Woods set us up,for this…

    Did you know Simon???

  39. Screw the GDP time to measure it with UBI Andrew Yang for president 2020 time too spend the money inside of America.

  40. The Middle East can get there money from everybody else besides America because the us greenback will soon be useless with dumbass Trump Americans allow these idiots too run the country to the ground if we don't get Andrew Yang in 2020 say goodbye to the fucked up world.

  41. americans commenting here, just like the putin videos. showing their ignorance. VAT IS NOT TARIFF WE PAY SAME FOR US CAR AS CHINA CAR. lol go stop innovating and complain more please. ignorance is bliss yanks

  42. giving up the usdollar and making usa like china was sinc e 1970s becoming the worlds crafting chamber

  43. The national debt is 22 trillion and growing. Total personal debt is 19 trillion.

  44. china is an assembly center/ you mean they use slave labor in reeducation camps for prisoners of conscience specifically to undermine the american ecoomy.

  45. wrong we have a trade imbalance with china because china doesnt let american companies compete fairly in china. china steals there intellectual property and gives it to a chinese business which is subsidized so it can out compete the american company. an estimate 6oo billion dollars of economic growth is stolen by china every year. trump is absolutely correct in saying the trade imbalance is due to unfair trade practices.

  46. You to do realize that American consumers make it powerful enough to sanction anyone right? I get it your European… but dont pretend the USA is not clever just because they tariff the EU.

  47. Be serious the ass holes that voted for Trump and will vote for him again cannot do basic math They are stupid.

  48. It survived 40 years because of America’s Savings that are consumed, also China has increased its real wages and are more and more focusing on their own market, as the purchasing power raised. Also China was pressured to do so by everyone in G20 meetings.

    After China its now Germany as they are “devaluing” their currency through wage dumping. On the cost of the Eurozone as their “currencies” (competitiveness) increased and can’t decrease their wages as it cause Deflation in the Eurozone.

    So Germany can sell cheap with high quality wich is giving everyone in the Eurozone trade debts.

  49. Everyone knows that Trump has a hard time holding onto Ivanka's hips with his tiny Russian hands.

  50. What caused the drop in Real Manufacturing Value Added from 3rd quarter 2007 to 2009 and what turned it around? That would be a fascinating video.

  51. So something that you didn't talk about but feels important to me is wondering why we have a trade deficit. It seems that we are wealthier. We buy more from other countries (as well as our own) because we as consumers have more wealth. It seems to make sense. What do you think? If so, it wouldn't be a bad thing, but just the opposite. A corollary is something that you did touch upon that we have very low levels of savings which equals high levels of consumption. It would complement this video which left it a bit vague what is going on from the point of a consumer.

  52. 4:00 Ah so import more and they will invest more – of course, Guardian readers because you're then a great investment, any business there will also be part of the importing more and decline just as much – brilliant. Also, China can manipulate currency and has but hasn't in years since we're watching.

  53. First, it's the U.S. problem, not Americas. And that is the problem of 'instant gratification'. China is known for it's patience. At least the older generations are.

  54. Hit the nail on the head in this video, consumption and fiscal irresponsibility at the micro level is the main problem of the US regarding its deficit. This stems from a lack of education of its youth or its unwillingness to be educated about conservative spending. Broadly speaking this is due to the epidemic of parenting failures that afflicts the entire nation.

  55. The trade deficit is a function of the Federal Fiscal deficit : the imposition of import duties won’t affect the trade deficit – they are two interconnected different issues

  56. I understand why you want to shove your political views in your videos but ignoring China's manipulation of the currency, huge taxes on imports and huge benefits to local industry and funding of shipments doesn't help your credibility.

  57. Traitor Trump has a hard time holding onto Ivanka's hips with his tiny Russian hands.

  58. Lies…Trump is stopping Million of uneducated,unskilled workers who drain public services but instead he wants a merit based LEGAL immigration system attracting foreign professionals…This is a fake anti Trump channel

  59. outside US people collect dollar money and keep it like a jewelry
    . just keep that condition and US will be alright

  60. i think you are a good presenter sometimes….. often you just present data with spin without even engaging with the multitude of factors that influenced data. Rhetorical question; do you have bias? if so what direction does it propagate?? Just kidding, I know you have a pro-establishment bias. I dont want to tear down the world and its systems but I think its pretty clear that you want to prop up control systems. I dont think you do anything on purpose but you clearly cherry pick and present that which confirms your bias. Learn critical thinking people!

  61. Hahaha… The dumb ignorant americunt trumptards are facing the reality. USA is fuck up, a country with LESS SAVING culture and value high consumerism will be doomed unlike China they have high savings rate yet due to very big population, a business can earn a high profit compared to US where americans purchasing power are weaker and weaker year by year. Lol. As the decades will come their country will become Brazil of North America, an irrelevant and fucked up country heavily in debt, lots of crime (well its happening already anyway) and outstanding corruption as seen in their politics.

  62. Finding a way to improve the savings rate in the US would likely go a very long way to tamping down on the growing dissent in the country too. Yet we, as a society, are addicted to debt.

  63. Think what the world could have done, if China didn't give subsidies, government shipping, theft of IPs and fairly opened its market instead of picking and choosing, all against the WTO, but it has helped America change to a more service and tech oriented economy.

    Tariffs just force the supply chain to be fixed, India will benefit the greatest, Foxconn is already moving.

  64. This is Typical liberal propaganda, full of facts. Still trump 2020, keep your reality

  65. How about the impact stolen technology has on trade deficits? Why not be honest about China's state sponsored technology theft? And as long as we're talking about GDP, let's be clear what China's theft costs the average American taxpayer.

  66. Simon you don't like Trump. You're just another lefty who over reacts to ANYTHING Trump does. Will you be man enough to do another video 2 years from now admitting your errors when Trumps policys work better than you assumed?

  67. Need to manufacture here in the usa….no matter what it is…..they want slave labor….since the mid 70s…..why did the steel mills go in the 70s….

  68. Well, it looks like Trump is fighting to stop China but not to make American manufacturing more competitive or trade deficit smaller. I used to think that it was obvious. It seems that Trump tries to stop the expansion of Chinese bubble economy to not let it to overtake the US, financially or technologically. China has a lot of problems and just try to imagine if it has become the largest economy, what's going to happen then. It's like a trade war with Japan with the only difference: under Reagan, Japanese corporations used to move their manufacturing from Japan to America, while here American corporations just remove manufacturing and assembling centers out of China for Vietnam, Mexico, India, US, ( Mexico has already become the largest trading partner for the u.s. replacing China and Canada), potentially creating economic miracles. So it doesn't seems like a War for America but war against China.

  69. Simon… you are looking at trade with China through a single lens. For example… The Chinese government subsidizes large companies by providing offsets in the shipping costs to the US. This encourages the purchase of Chinese goods because the shipping costs are next to zero. This is one example in many examples of unfair trade practices. I fear that whomever is writing your scripts has a political motive because your dialogue isn't showing the complete picture.

  70. Detach dollar from oil . Price of dollar goes down. Export. Profit?

  71. The real cause of the trade deficit is that China REFUSES to allow the yuan to seek its true market value which would be somewhere between 2 to 4 times its current value. Contrast this with the Japanese yen, whose value has steadily increased over the years in response to trade surpluses, in accordance with the laws of the free market. In order to look like they were doing something China, in the Bush 2 administration changed he peg of the yuan from the US dollar to a “market basket” of major currencies, so the ups and downs that it experienced are a result of the US dollar going up and down with respect to other currencies, affecting the value of the market basket. Also the recent fall of the yuan represents further manipulation in retaliation for the tariffs.
    There is supposed to be a free market of currencies that SHOULD cause the currencies of the trade surplus countries to rise and the currencies of the trade deficit countries to fall. There isn’t one because not only do countries hoping to develop an economy off of cheap labor manipulate their currencies but so do large banks based mostly in Europe (to allow insiders to profit from currency trades and to allow their friends to have cheap labor markets), outside the control of Trump or any other US president.
    I don’t know why the US hasn’t designated China a currency manipulator because it is so obvious. I can only guess that the Chinese have bribed someone in the US government.
    In the face of all this sabotage and inability to act because of lack of sovereignty over big banks in other countries, Trump has NO CHOICE but either 1) tariffs, as imperfect as they are. Yes, tariffs hurt everyone due to retaliation, but they inevitably hurt the surplus country more. Or he can 2) take measures to devalue the dollar, something you seem to admit would work but would obviously cause its own pains. I really don’t see any other choice but #2. However, I believe the tariffs are in fact meant as a negotiating ploy to get better trade agreements and are an attempt to solve well-documented Chinese unfair trade practices, and will need to be done first before #2. They also represent an attempt to politically justify #2 on the basis of #1 being tried and failing to solve the problem.
    Your observation that trade deficits are compensated for by monetary inflows ignores one basic thing –it basically is a short term fix that results in MORE long term debt to foreigners and thus cannot be sustained. The trade deficit MUST be fixed come hell or high water.
    Trump by himself cannot make up for 50 years of short-sightedness by previous presidents (starting with Nixon) but at least he is making a start.
    I WOULD suggest, if you haven’t done so, that you make a video about the Petrodollar. I believe that is another contributing cause of the high US dollar. Take that away and the dollars’ value will fall and help fix the trade deficit, at least with other developed countries.
    A third factor is the status of the US dollar as the world’s reserve currency.
    You are right about American consumers overspending but if the trade problem is solved then at least the money will stay in the country and enrich wealthy Americans instead of wealthy foreigners and the government will have a sovereign ability to do something about it through taxes on some of the accumulated wealth.

  72. People will always prefer to believe a simple falsehood to a complex truth. And every populist politician knows this.

  73. I think that you're missing the point. A lot of Trump voters suffer from investment coming from abroad. 1- They are making real Estate market unfordable in large cities like New York. This is so many Americans are leaving states like NY or California, real estate became unaffordable. 2- The Stock exchange is the other main receiver from foreign investors, and once again they do not benefit from it since most of them do not own stocks. 3- If you look at the companies with the largest valuation (Google and Facebook), they are not known for hiring people from West Virginia. But famous for shipping jobs abroad. I agree Amazon is a counterpoint at the moment but their main objective is to get rid of human employees as fast as possible. I don't think anyone is saying that cities like Seatle and San Francisco are doing poorly, what trump voters are saying is to try to think a little bit about lower-income families that do not have a degree in states like West Virginia or Idaho. 4 – Trade imbalance =/= Foreign investment, if it did the U.K, would not be the largest foreign investor in America. (Sorry for my English I am a French who recently moved to America)

  74. Who cares about all this? As long as China never becomes the worlds leading superpower I am happy.

  75. China was getting a free ride by us. This presentation excuses China for its action

  76. Adding more tariffs is going to make it a million times worse,,,,
    and if you thought poverty and unemployment are high now,,,, then wait till you see what kind of horror show is coming…..BETTER PUT YOUR SEAT BELTS ON,,,, its going to be a killer ride people ;-((

    The USA began applying trade tariffs right before the DEPRESSION OF 1929, the stock market crashed, because when the tariffs were applied then investor confidence went south….
    History is about to repeat itself, , , , the only problem is that nobody will recover from such a worldwide category 10 economic hurricane……..

    The US is going to be exporting a hell of a lot less now that he is slapping all these unnecessary tariffs that will kill the economy in the worst way……
    What so, is there not enough jobs being lost,,, not enough business closing down – and these tariffs are going to implode the economy world wide… and it is going to bring on marshall law and a lot of chaos worldwide ;-((

    .

  77. PRODUCE IMPORTS LOCALLY to reduce Trade Deficits Globally
    https://www.youtube.com/watch?v=3CZ1iuJCG3I
    #Ideas, #Innovations, #Economy, #TradeDeficit, #GlobalTrade, #CurrentAccount

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