Tariffs Explained - Pyramyd AIR Insyder

[BSJ]

I find it kind of funny that the ChiCom leaders speak of just getting new/replacement trading partners. Like it would be simple - turning on a light switch. But if it was so easy, it would have been done before.

There is so much that I do not know. But I do know that US consumers like to spend money, and US & OUS economies benefit significantly because of this. And when prices go up, savvy US consumers (where possible - not daily necessities) reduce their buying. Reduced buying means demand for fewer goods. Demand for fewer goods means fewer manufacturing jobs (which seem, these days, to be mostly OUS). Fewer manufacturing jobs means less money in workers pockets, which leads to their questioning their dear leaders. Dear leaders don't like to be questioned by the masses (especially coming off things like a (China) push to go into debt to get a college degree followed by no good paying jobs, and huge failures in the real estate development market because folks could no longer afford to even think about purchasing the millions of homes being built).

No, if it was quick, easy, economical and feasible to lose your ability to sell in the US market and fill that void with a different market, it would already have been done. But the reality is that the US market is just too large and valuable to lose.

So if things don't sell, prices will have to be brought down, and I see that having to come from the manufacturing (more than distribution/sales) side.

Or a route will have to be found by the leadership to deal with the current US administration, without losing face. Too much questioning by the masses, who are out of jobs, for too long a period can lead to revolutions.

It is a bit of a shame that US companies aren't really poised to increase production at US facilities, mainly due to so many regulations and restrictions. I never understood why the government in states like CA wanted to regulate things like cattle due to their polluting methane emissions. Great, regulate more businesses to death and send more of our food supply out of the US and into, say, Mexico. That way all of the methane emissions would no longer effect us as they would be stopped at the International Border?

Note: This all comes from a Biologist, not an Economist. But then again, I seen some things...

I've heard the US only accounts for 14% of the Chinese economy.
As our Dear Leader cuts us off from the rest of the world, whom do you think will fill that vaccum?

 

[silvershooter589]

Having the dollar as a reserve currency has gutted our manufacturing base, but shifting away from it will be devastating. We've basically had access to endless amounts of cheap debt and the ability to expand our money supply recklessly for decades now.

For those of you who haven't given it much thought, (speaking to the general audience), the US dollar is what's called a reserve currency. It's basically what the entire world wants to trade in. When Saudi Arabia sells oil or Brazil sells soybeans they don't want to get paid in Rupees or Pesos, they want dollars and when investors around the world want a safe and stable investment, they want US treasuries. Because the dollar is in demand, it's value gets pushed up much higher than it otherwise would be and that makes our wages here in the US much higher compared to other countries around the world, and that incentivizes industry to manufacture products abroad where labor is cheaper.

On the other hand, since everybody wants US treasuries, we get a great interest rate when we finance our national debt. Other countries would have to pay much more interest to do the same thing and would find their economies in crises. We can also print more money than we should be able to. If Japan prints money, they are just printing money for their population of 120 million and if they print too much inflation will go wild. When we do the same thing however we're not just printing money for the 340 million Americans. There is an entire world that wants US dollars, so we can print much more money than our population would warrant and not see nearly as much inflation as we otherwise would.

If the US dollar stops being the worlds reserve currency, then we can expect to see our interest rates go up significantly and the cost of financing our national debt will explode. At that point we'll be in the same kind of position that Greece was in about a decade ago.

USA has the most gold according to public figures. Others estimate that we have a lot more than is acknowledged.

Someone famous recently said "The Golden Rule. He who has the gold makes the rules."

Just speculation. For now it appears USA wants to keep USD dominance via proliferation of USD-backed stablecoins, which easily cross borders, anyone can hold in a digital wallet, require 1:1 backing with actual USD or Treasuries, and are often preferable to other currencies which can be suffering from a lot more inflation or other issues of credibility. So USD can be the defacto global "currency of choice" without necessarily being an official reserve currency of sorts.

That is why the stablecoin legislation "STABLE Act" and "Genius Act" (in the House and Senate, which will be combined into the "Stable Genius Act") is being rushed and ought to pass and be signed within a month or two.

For the role of global reserve currency, considering we are moving toward a "level playing field" and multipolar economic order, it will need to be something that can convert all currencies and actually be the backbone and base layer of the Internet of Value. Which all signs point to being either XRP or something else issued by Ripple on XRPL (which happens to be an American company), but of course I encourage anyone who understands what I'm talking about to do their own research.

Long story short, I think we can transition in a way where USA stays dominant for a long time to come, yet other countries can feel like they are treated fairly and fully participate, insofar as they are willing and able to.

 

[Troy Bakel]

USA has the most gold according to public figures. Others estimate that we have a lot more than is acknowledged.

Someone famous recently said "The Golden Rule. He who has the gold makes the rules."

Just speculation. For now it appears USA wants to keep USD dominance via proliferation of USD-backed stablecoins, which easily cross borders, anyone can hold in a digital wallet, require 1:1 backing with actual USD or Treasuries, and are often preferable to other currencies which can be suffering from a lot more inflation or other issues of credibility. So USD can be the defacto global "currency of choice" without necessarily being an official reserve currency of sorts.

That is why the stablecoin legislation "STABLE Act" and "Genius Act" (in the House and Senate, which will be combined into the "Stable Genius Act") is being rushed and ought to pass and be signed within a month or two.

For the role of global reserve currency, considering we are moving toward a "level playing field" and multipolar economic order, it will need to be something that can convert all currencies and actually be the backbone and base layer of the Internet of Value. Which all signs point to being either XRP or something else issued by Ripple on XRPL (which happens to be an American company), but of course I encourage anyone who understands what I'm talking about to do their own research.

Long story short, I think we can transition in a way where USA stays dominant for a long time to come, yet other countries can feel like they are treated fairly and fully participate, insofar as they are willing and able to.

The US does not have anywhere near the gold reserves to cover its national debt, even at today's current value at 1300 GMT.

As such, America's debt makes the above dollar replacements non starters in the IMF SDR for the US.

The US has backed out of mBridge so the US making one of the above dollar replacements at the world level very improbable.

 

[markhooper]

Mark,

The tariffs being discussed are import tariffs. That's where they apply. So your transaction with someone for a product that is already within the US, should not be subject to an import tariff.

If you were to purchase something from another country that is shipped directly to you, the way duties/tariffs are collected can vary. In my experience, I have been given a bill directly from the US based shipping company that handled the package stateside to pay upon receipt of the goods or shortly after receipt (have had this happen with both UPS and Fedex). Sometimes, USPS will hold a package at the local PO and you will have to pay those fees when you pick it up.

Hope that helps.

Tyler

yes that's a very good explanation.. but is it the same when you purchase something used out of the country.. say I am here in Oregon and I find a add in the classifieds that I just have to have.. in Canada for instance.. is it the same as you described for a used gun? from just another person selling something used that they have?
thank you so very much Tyler.. you such a great source of goo honest information.. your video was very good because lots of us , well at least me, didn't know how this all might affect us..
also just like you said that as things are negotiated everything will change..
I hope it doesn't hurt places like pyramid air too much.. I'd hate to lose places to shop.
Mark

 

[Ratzy]

USA has the most gold according to public figures. Others estimate that we have a lot more than is acknowledged.

Someone famous recently said "The Golden Rule. He who has the gold makes the rules."

Just speculation. For now it appears USA wants to keep USD dominance via proliferation of USD-backed stablecoins, which easily cross borders, anyone can hold in a digital wallet, require 1:1 backing with actual USD or Treasuries, and are often preferable to other currencies which can be suffering from a lot more inflation or other issues of credibility. So USD can be the defacto global "currency of choice" without necessarily being an official reserve currency of sorts.

That is why the stablecoin legislation "STABLE Act" and "Genius Act" (in the House and Senate, which will be combined into the "Stable Genius Act") is being rushed and ought to pass and be signed within a month or two.

For the role of global reserve currency, considering we are moving toward a "level playing field" and multipolar economic order, it will need to be something that can convert all currencies and actually be the backbone and base layer of the Internet of Value. Which all signs point to being either XRP or something else issued by Ripple on XRPL (which happens to be an American company), but of course I encourage anyone who understands what I'm talking about to do their own research.

Long story short, I think we can transition in a way where USA stays dominant for a long time to come, yet other countries can feel like they are treated fairly and fully participate, insofar as they are willing and able to.

A consumer economy that is under, what will be, heavy inflationary pressure will not benefit from crypto.

Explain how crypto will prevent the deleterious effects of broad based tariffs.

 

[Tpatner412]

yes that's a very good explanation.. but is it the same when you purchase something used out of the country.. say I am here in Oregon and I find a add in the classifieds that I just have to have.. in Canada for instance.. is it the same as you described for a used gun? from just another person selling something used that they have?
thank you so very much Tyler.. you such a great source of goo honest information.. your video was very good because lots of us , well at least me, didn't know how this all might affect us..
also just like you said that as things are negotiated everything will change..
I hope it doesn't hurt places like pyramid air too much.. I'd hate to lose places to shop.
Mark

Whether the product is used or not doesn't matter in this case. My understanding is that it would be subject to import duties UNLESS you had proof it was purchased from a US source initially. But I am not sure how you would go about fighting that with customs in the first place if that was the case.