US Singles Out China and Five Others For Special Monitoring

[Echo_419]

This is the truly scary part.

So many people do not know about this massive "tax" on the unborn.

I did a full independent investigation personally some months back to look up the US unfunded liabilities (both federal + state)....its quite an impressive deadly amount amounting to by my estimates....about 120 trillion gross and around 30 - 60 trillion net. The US needs to produce a bunny out of the hat in the next 10 years....20 years is the absolute deadline....or its going to be in for a world of hurt down the road.

This is BTW why the Trump economic plan has been deemed to add to the debt more than hillary because he wants to cut taxes and something like 60% of the spending is commited to such liabilities (mostly servicing the debt accrued to pay for them). Means you can only reduce spending by 40% of the total budget (i.e spend on absolutely nothing else!) already....and of course you cannot do that (someones gotta pay the essential bills)....so you can cut spending by maybe 10% at most (hence why trump wants to defund NATO etc). But the other side just wants to pretend like nothings wrong and continue abominations like Obamacare.

How has this been allowed to happen in a country so rich and wealthy? The whole system has been hijacked by the wealthy and corrupt since the cold war ended.....and the greenspan financial "miracle" started. Its sad because Greenspan was originally quite a laissez faire guy, but he conveniently deserted his principles and theory....and in practice printed what was needed to be printed to back up the financial bubbles....part 1 of the deflating we saw......and many more parts to come in future.

Maybe this is as good as it gets given fair neutral capitalism simply is not allowed to take root because of vested interests in preserving quite "socialist" and inefficient edifices....mostly based around the govt. A very nasty pact has been signed between the top capitalists and top govt bureaucrats to create glass ceilings in many areas to preserve what they have and not risk it for the greater good. The problem is the massive toll this takes on the average person....the US median wage has not increased appreciably in real terms since the 70s oil crisis and meanwhile all kinds of political prestige (social welfare) have mounted up and are defrauding the whole country.

There are real lessons for China and others here. I hope they learn them! Prevention is better than cure.

Canada will be safe from this, right?

 

[Nilgiri]

Canada will be safe from this, right?

No we are messed up long time ago given we have no real party on economic right (Conservatives are centre at best).

Just we will have little effect on the rest of the world when the mess finally implodes here down the road.

Its worth watching for an intro....take with pinch of salt and verify whatever you want....but overall I found this one to be a decent summary of what Canada faces if there is not drastic change down the road.

 

[Jlaw]

View attachment 345893

Report: China Better; Still Must Cut Trade Surplus With US
By Marcy Gordon, AP business writer
WASHINGTON — Oct 14, 2016, 4:35 PM ET

China has improved its position by reducing its current-account surplus relative to its economy but it remains one of a handful of countries that need to trim their large trade imbalances with the U.S., the Obama administration says.

The assessment came in a report sent to Congress on Friday. The twice-yearly report, submitted by law by the Treasury Department, doesn't designate China or any other nation as a currency manipulator. But it singles out the six countries, all major U.S. trading partners — China, Germany, Japan, Korea, Switzerland and Taiwan — for special monitoring and U.S. pressure on their governments to change practices.

In the new report, Treasury added Switzerland to the list, saying its trade with the U.S. is now large enough to make it a major trading partner and subject to the Treasury's analysis.

Being on the list opens the way to U.S. negotiations over lopsided trade balances with the countries' governments.

Under a process Congress established this year, if the negotiations fail, the U.S. can seek to impose trade sanctions such as penalty tariffs, though those sanctions must win approval of the World Trade Organization.

There are three criteria for putting a country on the list: The size of the country's trade surplus with the U.S., the size of the country's current-account trade surplus overall, and the frequency with which it intervenes in currency markets.

In the case of China, Treasury said it met only one of the criteria, the large trade surplus with the U.S., compared with two in the last report issued in April. China's current-account surplus fell to 2.4 percent of its gross domestic product for the last four quarters through June, below the 3 percent critical level, the report says.

In addition, China has intervened in the currency markets to prevent a rapid depreciation of its currency, the renminbi, that would have had a negative impact on the Chinese and global economies, the report notes. The renminbi recently hit a six-year low against the dollar.

It's important for China to continue market-oriented change of its currency system, Treasury says.​

The last country designated a currency manipulator by the U.S. government was China in 1994 during the Clinton administration.

The large U.S. trade imbalances with countries such as China, Japan became an issue in the presidential campaign.

Republican presidential nominee Donald Trump has contended that the Obama administration and previous administrations have failed to enforce U.S. trade laws. He has said those failures have allowed foreign countries to run huge trade surpluses with the United States, costing millions of American jobs.

Trump has said he would direct his Treasury secretary to immediately declare China a currency manipulator as a way to bring the country to the bargaining table to change trade practices that hurt U.S. workers and companies.

http://abcnews.go.com/Business/wireStory/report-china-cut-trade-surplus-us-42815228

impossible! Americans love China made products. They just stop buying!