Turn The Screws, Mr. President
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2019-09-13 11:22 by Karl Denninger
in International , 227 references Ignore this thread
Turn The Screws, Mr. President
[Comments enabled]

China is experiencing hyperinflation in pork prices.

Most of this is their own doing -- they banned US soybean imports as part of their "trade war", which are largely used to feed hogs.  In addition their overcrowding, poor sanitation practices and high-density farming of same have led to a nasty swine fever breakout that has decimated their hog population.  Oh, and they aren't importing pork from the US either.

Pork makes up roughly three quarters of Chinese meat consumption (!!) so there's no substitution available, and prices are up 76% this year.

The average Chinese -- never mind the poorer parts of the population, and there are a lot of them -- cannot afford this.

So what should we do in response?

**** 'em.

They don't want to quit ripping off our intellectual property and illegally subsidizing production, plus abusing the land and water, never mind child and slave labor?

TELL THEM THAT EITHER THEY AGREE RIGHT NOW AND HERE TO CUT ALL OF THIS CRAP OUT, ALONG WITH LEGALLY ENFORCEABLE VERIFICATION INCLUDING FULL-ON SEIZURE OF OFFSETTING AMOUNTS SHOULD THEY CHEAT AT ANY TIME IN THE FUTURE AND FULL COMPENSATION FOR THEIR PAST ACTS THROUGH VOLUNTARY SURRENDER OF THEIR BONDS AND OTHER FINANCIAL INSTRUMENTS, ENACTED INTO LAW ON THEIR PART, OR WE ARE PERFECTLY HAPPY TO LET THEM EAT DIRT.

China's Hu Xijin thinks this is a "reciprocal" goodwill measure -- that is, dropping their tariffs on hogs and beans.  Uh, no.  They have their backs against the wall.  This is not when you capitulate it is when you press your advantage, especially when your opponent has claimed all along you'd lose a trade dispute with them.

This doesn't look like losing to me -- it looks like it's time to go for the kill shot and decapitate their economic and political structure by allowing their own conduct to come back and bite them in the ass.

Help them?

Bah.

Stand back, raise the tariffs, let them starve and raise a toast while their political and financial systems collapse.

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Rollformer
Posts: 546
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Can you imagine what will happen to the Left's brains if he takes out the Chinese government with the trade war? I'll give credit for 26-dimension chess if that happens.
Maynard
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gig harbor wa
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Pretty sure the Chinese bought smithfield pork a few years ago. huh, kick it up a notch.
Acebarefoot
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I would really....really like to believe he will stay the course and "WIN" this one, but I think it is more likely he will snatch defeat from the jaws of victory. I've seen it time and time again.

If he does the right thing and finishes what he started here, I will gladly admit in print that I was wrong.
Spaceace
Posts: 17
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Let them twist in the wind. Their arrogance needs to bite them in the butt. In an old job I dealt with them. If I were Trump, I wouldn't even pick up the phone or answer an email from them.
Londoncat
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Kansas
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Might be time to "go long" dog/cat/donkey meat.
Bearcubs9497
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Huntsville, AL
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**** them. they can starve.
Aquapura
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South of Canada
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I really hope the President reads the Ticker and not just Twitter.

I know a lot of people that work in ag that have been pissing and moaning about the tariffs. Have told them to just give it time and the Chinese will be here begging for our exports. If there is a swing producer in the agriculture sphere it is the USA. Nobody can match our production and quality of arable land. Nobody. So if 1+ billion people want to not starve they need us a lot more than we need them.
Handyone55
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Recently, I attended two " Fentanyl Viewings " in my tiny, almost zero crime town. I cannot imagine what Baltimore must be like. I understand the addict willingly took the drugs, but, the Chinese are shipping tons of it here. I say let the scum starve.
Tdurden
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I'm divided on the IP theft issue. If the Chinese pulled corporate/industrial espionage here on US soil, then yes, roast them hard and insist on the thieves being handed over to US law enforcement. But if they stole designs and code from US companies who set up their manufacturing in China, well then boo ****ing hoo. Book the loss and hand it out to their dumb-ass shareholders and moron creditors. I hope they lose everything.

After the crash and Long Night, I hope there comes a point when order is being re-established that the titans of tech and Wall Street are summoned to get the rebuilding off to a good start. That's where the ones who off-shored their operations or forced their employees to train their H1B replacements get pulled aside and spend the rest of their lives turning big rocks into little rocks and working in soup kitchens of the neighborhoods they blighted by the above mentioned off and on shoring. That is, if angry mobs don't get their hands on them first ala Gaddafi or Ceausescu. "Sorry guys,but your skills of "unlocking synergies" and "delivering shareholder value" just aren't going to be needed going forward."

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"I'd like to live just long enough to be there when they cut off your head and stick it on a pike as a warning to the next 10 generations that some favors come with too high of a price." -Vir Cotto Babylon 5
Rollformer
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Just launched this to a group of friends. One mentioned he had been to the interior with his wife (a Chinese national), and that there is no pork on the shelves. If Trump can take out the Chicoms this way...
Stee_man
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So they'll graciously lift the embargo on badly needed commodities. Embargo now and don't stop until there's a representative gov't.

BTW, have you noticed that since last week's inflation print bonds have been down?
Click
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Let them starve. Yes, agreed.

On the other hand, the trade war has been good to me because of the glut of pork here in the USA.

Over the past six months pork prices here in Houston have been as low as 69 cents per pound for nice pork chops at Sellers Brothers. So I pressure canned 1200 pounds, and froze an additional 500 lbs.

I can't raise my own pork for as cheap as I can buy it right now.

Oldno7
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RECALL STATE USA
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Yes it is time for the USA to get a fair deal with China. Hold strong for a fair deal. If not let them suffer.

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IT'S THE SPENDING STUPID The US must become less a government of men, and more a government of LAW.When people lose everything and have nothing left to lose they lose it -Gerald Celente
Eleua
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A True American Patriot!
N 47.72/ W 122.55
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Given that I can't contribute anything intellectual above what KD posted, I'll add this



If DJT can get a fair deal with China, that would be yuge.


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"Me and my homies woulda been stackin' bodies by now."
-George Washington
Themortgagedude
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Saint Charles MO
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Reagan defeated Russia by outspending them and bankrupting them. Trump brings down China with a trade war.

I'm starting to think this President stuff isn't that hard.

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I think its time we ask ourselves if we still know the freedoms that our founding fathers intended for us. Ronald Reagan 1964
Tinman
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Did you mean to leave the latest post no-comment? Looks like they are locking people up... at least in Wisconsin.

https://www.wdio.com/news/wisconsin-man-....
Tickerguy
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A True American Patriot!
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No - fixed it. And it's about ******ned time although they'll charge him with the wrong thing.

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Winding it down.

Jazen
Posts: 3889
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****cago
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Im wondering if china dumping their 10 year Ts will******of Bozo enough to do just what you say Karl

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I hate our Government, but I still love America.
Ee4fire
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Quote:
I'm starting to think this President stuff isn't that hard.



Its only hard if you are a progressive liberal democrat.

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(Politicians), 536 commoditized temple monkeys pawing through the ruins of America in search of bribes. (The District of Corruption) works like a vending machine. You put coins in the slot, select your law, and the desired legislation slides out." Fred Reed. Some editting by me.


Redjack
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Iowa
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It isn't just the embargo, it is the fact that domestic Chinese producers are facing a disease that has totally destroyed their pork industry. To the point that it no longer exists in some areas.

The US has the largest pork supply on the planet, but Brazil, Russia, and Argentina will pick up the slack in a year to two.

Chinese view their pork the way the US views gasoline. Once things get low, people get angry. It is going to get interesting.

I understand this just fine. Negative interest rates no so much.
Amused
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Let me play Devil's Advocate for a moment.

I've argued that this game we've been playing might not actually be in our interest, and we might better served with the Status Quo, even with the problems of the forced technology transfers and the dumping of plastics on us like opium on them.

I know, it sounds crazy, but what I worry about is, what if the Chinese actually do reform? I mean, the Left already talks about China running the world in the next Century, but right now, due to the institutional flaws they have, the lack of a rule of law, the human rights violations (which I am not arguing for), means they are handicapped.

But let's say we actually got what we claim to want, we have a magic wand and tomorrow China becomes a Multiparty Free Republic with a Rule of Law and Free Trade with the world.

I know we are in make believe land here, but anything is possible.

When that day comes, just on the population Demographics alone, the United States would lose in a fair fight.

I'm not saying this is an overnight thing as they still have a lot of poverty and age and gender demographic problems due to the prior Communist polices, but in the long game if we were to actually get what we claim to want, it seems like it is almost better to leave them as they are, so they are limited by their own handicaps.

It kind of reminds me of that old saying: Be careful what you ask for, you just might get it.

In that future world, the United States would become like the former British Empire to a new Republican China.

Maybe it doesn't matter, all humans should be free, and we don't have to be #1 anymore than Norway or Denmark do, but if we do want to remain #1, the only way that can happen is by China not reforming.
Amused
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And then this news, well I don't know what to make of it. How the **** did China get 18 months ahead of us in 5g tech, to the point they are basically offering to open source it for a one time fee.

https://www.forbes.com/sites/jeanbaptist....
Fumei
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Amused, ni keyi fangxin ba, zhina yijing gaige le, danshi bushi gen ni de lixiang yiyang de. Ruo na ge laji daguo biancheng bi Meiguo huo Ouzhou hao de duo, zamen yanghuaren dou meitian xiangshang qu. Danshi, name hao shi buhui fasheng. Shuangfang de guomin bushi zaogao le, jiushi wandan le.

Reason: Autocorrect became Autowreck
Idiom
Posts: 202
Incept: 2015-02-20

New Zealand
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With Xi going hardline, HongKong going nuclear and the tradewar tightening the screws... It would be amazing for China to roll over to become a liberal capitalist democracy.

The world would probably be better off if the USA California and Texas were three separate countries. The competition would lead to them being #1,2 and 3 in no time.
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