The Shape of U.S. Restrictions on Chinese FDI

Re-Blogged From Stratfor

Highlights

  • In hopes of forcing China to open further, the United States is considering investment restrictions that would mirror those imposed by China.
  • China’s investment goals are to cement its position in the stable, developed U.S. economy and fuel growth in sectors key to its economic transition.
  • As such, China has two concerns: Sectors where its own restrictions will mean harsh U.S. measures and those sectors of high priority to Beijing.

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2017 Trade Deficit Worst since 2008

By Wolf Richter – Re-Blogged From Wolf Street

Trade deficit in non-petroleum products hit a record of $734 billion.

2017 was a banner year for the US trade deficit, according to the Commerce Department’s report today. Corporate America’s supply chains weave all over the world in search of lower costs. Other countries have an “industrial policy” designed to produce trade surpluses for them. This combo ballooned the US trade deficit in goods and services to $566 billion, up by $61 billion, or 12%, from 2016. It was the worst trade deficit since 2008.

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Brexit – The Battle For Ideas

By Alasdair Macleod – Re-Blogged From GoldMoney

The battle for ideas in the Brexit debate comes down to two basic economic approaches. The neo-Keynesian macroeconomists in the permanent establishment, who manage the state as economic planners and regulators are on one side. They are naturally sympathetic with the policies and ideals of their EU counterparts. Against them are those who argue that in economics free markets must have primacy over the state.

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At Davos, Geopolitics and Business Dance a Winding Waltz

Re-Blogged From Stratfor

It’s that other time of year again. The time when the world’s business and political elites gather at an Alpine resort in Davos, Switzerland, to compare notes on the challenges they face. The top risks under discussion this year, released in advance by the World Economic Forum, are cybersecurity and “a deterioration in the geopolitical situation.” The first of these two risks, cybersecurity, represents merely the latest in a long line of threats that have emerged from technological development as states and private actors jockey for an edge over one another. But the second risk, geopolitical deterioration, has not been much of a focal point for several decades. And because geopolitics is the platform on which many other things rest, its deterioration is a threat that affects not only Davos attendees, but also the entire global population.

(FABRICE COFFRINI/AFP/Getty Images)

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The Truth About Trade

By Alasdair Macleod – Re-Blogged From http://www.Silver-Phoenix500.com

The one subject, which became a headline issue last year, and even divides experts is trade. It will become increasingly important in 2018 as the US develops her trade policy, particularly with respect to China, and as the UK negotiates her Brexit terms with the EU.

Ignorance dominates this subject. Surely, people say, industry should be protected from unfair trade practices, such as goods manufactured in foreign sweat-shops, or unfair dumping of commodities, such as steel. If President Trump can protect American business from unfair competition, it would be good for the American economy. Then there’s the business of currency rates. Doesn’t a lower currency help restore the trade balance, by making exports cheap, and imports expensive? And surely, Britain leaving the EU risks trade tariffs being set up against British business. This means sterling must fall against the euro to rebalance trade.

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Greatest Transfer Of Wealth

By Rory Hall – Re-Blogged From  http://www.Gold-Eagle.com

The past few days I have been reminded of how important silver is to our world and how silver is the one asset the world needs in order to function to a high level. Actually, silver is necessary for our world to function at even the most basic level where power/energy/information is running through wires. Silver makes it possible.

With all these Western nations, basically, invading, destroying China were about silver. China was importing all the world’s silver even though they had no natural mines they owned 25% of the world’s silver. England had massive trade deficits with them. When England couldn’t balance it back because the Chinese didn’t want the British finished goods they (Britain) imported opium into there and destroyed China. Which led to the rise of Mao and communism and all this other stuff. ~Chris Duane, The Daily Coin

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A 2018 Investor Wild Card That’s Not Priced In: China-US Trade Tension

By Bloomberg – Re-Blogged From Newsmax

There’s a risk that tough trade talk between the U.S. and China will return with gusto in 2018 and investors may not be prepared.

Trade disagreements between the two nations were something of an afterthought in 2017 as concern about North Korea’s nuclear weapons program dominated the political relationship between the two nations. That could soon change, according to Exante Data LLC Chief Executive Officer Jens Nordvig.

Image: A 2018 Investor Wild Card That's Not Priced In: China-US Trade Tension
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