By Stephen Dinan - The Washington Times - Sunday, December 4, 2016




President-elect Donald Trump vowed to whiplash companies that offshore jobs then try to sell goods back into the U.S. with a 35 percent imports tax, in a series of Sunday-morning Twitter posts.
Just hours after using Twitter to complain about the most recent “Saturday Night Live” skit mocking him for his tweeting habits, Mr. Trump turned his account to more serious matters of American business.

He promised to “substantially reduce” regulations and taxes on American corporations, but those companies that have a U.S. presence but build factories or plants elsewhere and then try to sell back here will be punished for that decision.

“There will be a tax on our soon to be strong border of 35 percent for these companies wanting to sell their product, cars, A.C. units etc., back across the border,” he tweeted.

He said companies can move within the U.S. with no penalty, but said woe to those who move outside.

“Please be forewarned prior to making a very expensive mistake!” he said.
Last week Mr. Trump and Vice President-elect Mike Pence, the governor of Indiana, helped negotiate a deal to keep air conditioner manufacturer Carrier in Indiana, preserving what the company said was 1,100 of the 1,400 jobs it had planned to cut. Carrier had been poised to move its plant to Mexico.

Democrats blasted the deal, saying it involved promises of millions of dollars in tax incentives to keep Carrier local — which Mr. Trump’s critics said amounts to corporate welfare.

And he's going to slap tariffs on ebay purchases as well??

So the 'invisible hand' of the market - the conservative capitalist's omniscient, and omni-benevolent god, their 'deus ex machina' is to have its tables overturned in its own temple by acceding to a leftist ideology?

It's like amateur hour on a daily basis with Trumps next thoroughly stupid and dangerous idea. This actually makes USA manufacturing LESS affordable. If companies move offshore their goods become more expensive. If the stay, their goods become... more expensive.

And if they dont move offshore they cannot compete globally either.

Idiot Trump.

longweekend58 wrote on Dec 5^th, 2016 at 5:47pm:

It's like amateur hour on a daily basis with Trumps next thoroughly stupid and dangerous idea. This actually makes USA manufacturing LESS affordable. If companies move offshore their goods become more expensive. If the stay, their goods become... more expensive. And if they dont move offshore they cannot compete globally either. Idiot Trump.

One thing Trump is not - is an idiot!

The problem with Chinese made goods entering the US apart from the fact that they end up as landfill almost as soon as they're sold. Is that the Yuan is too low against the USD. It should be rising as Chinese wages increase but its falling. The Chinese are manipulating their currency to undercut foreign markets. Which is OK but the US should be able to do the same. Something that Trump intends to work on.

Richdude wrote on Dec 6^th, 2016 at 1:34am:

longweekend58 wrote on Dec 5th, 2016 at 5:47pm: It's like amateur hour on a daily basis with Trumps next thoroughly stupid and dangerous idea. This actually makes USA manufacturing LESS affordable. If companies move offshore their goods become more expensive. If the stay, their goods become... more expensive. And if they dont move offshore they cannot compete globally either. Idiot Trump. One thing Trump is not - is an idiot! The problem with Chinese made goods entering the US apart from the fact that they end up as landfill almost as soon as they're sold. Is that the Yuan is too low against the USD. It should be rising as Chinese wages increase but its falling. The Chinese are manipulating their currency to undercut foreign markets. Which is OK but the US should be able to do the same. Something that Trump intends to work on.

I think the one thing that is becoming increasingly clear is that Trump is way over his head. He is an idiot. His opinions on any topic are basically those of the last person he spoke to.

NorthOfNorth wrote on Dec 5^th, 2016 at 10:56am:

And he's going to slap tariffs on ebay purchases as well?? So the 'invisible hand' of the market - the conservative capitalist's omniscient, and omni-benevolent god, their 'deus ex machina' is to have its tables overturned in its own temple by acceding to a leftist ideology?

You should see that mining guy on Paul Murray on Foxtel go: he thinks it's a win for whatever he's prattled on about in every media commentariat he's ever been a part of, apart from every media commentariat he's ever been a part of....  :o :o :o :o

Baseball fan I think he is:  :-[

Those friggin' baseball fans are so full of it: America this and America that and guess what I'm also into NFL and talking loud  ;D ;D ;D ;D ;D Hey: I LIKE TO TAKE MY SHIRT OFF AND TELL EVERYONE TO GET bugger**

** methinks even Paul Murray is secretly ashamed of him  ;)

longweekend58 wrote on Dec 6^th, 2016 at 11:40am:

Richdude wrote on Dec 6th, 2016 at 1:34am: longweekend58 wrote on Dec 5th, 2016 at 5:47pm: It's like amateur hour on a daily basis with Trumps next thoroughly stupid and dangerous idea. This actually makes USA manufacturing LESS affordable. If companies move offshore their goods become more expensive. If the stay, their goods become... more expensive. And if they dont move offshore they cannot compete globally either. Idiot Trump. One thing Trump is not - is an idiot! The problem with Chinese made goods entering the US apart from the fact that they end up as landfill almost as soon as they're sold. Is that the Yuan is too low against the USD. It should be rising as Chinese wages increase but its falling. The Chinese are manipulating their currency to undercut foreign markets. Which is OK but the US should be able to do the same. Something that Trump intends to work on. I think the one thing that is becoming increasingly clear is that Trump is way over his head. He is an idiot. His opinions on any topic are basically those of the last person he spoke to.

longy knows nothing about everything: trump backflipped on all the lies he made during the campaign as he knew the media could never call him a hypocrite.

longy doesn't know what trump stands for because everything he said was to make the media look like a fool and longy is the media.

Richdude wrote on Dec 6^th, 2016 at 1:34am:

One thing Trump is not - is an idiot!

I beg to differ. Trump has loaded his administration with Jews, financial market manipulators and insiders.

The Chinese government is not manipulating the currency down, it is manipulating it up. After Trump election Japan's currency fell by 10% while China's currency fell by only 1% because of Chinese government support of its currency.

China has implemented policy restricting capital outflow which would otherwise force the currency down. Restricting capital outflow forces China's currency to rise.

http://www.forbes.com/sites/timworstall/2016/12/02/proof-that-china-is-a-currency-manipulator-as-donald-trump-says-so-subsidise-imports-from-china/#26d27d906127


Quote:

Donald Trump, and to be fair some others, have been telling us for a long time that China is a currency manipulator. And it would appear that The Donald, now President-elect, and those others have in fact been correct. The unfortunate thing for their claim though is that, as I've remarked before, the evidence is that China is manipulating the yuan up, exactly the opposite of the original assertion. All of which leads to a most interesting policy proposal. If everyone really does mean to go through with this idea of designating them as such, as manipulators, and then doing something to sort it out, then logically the US should subsidise Chinese imports into the US. No, I'm not a great fan of Trump's views on trade nor of all too many other people at present but even I don't think they're going to do that. Despite it being the logical outcome of what they have been saying. Here's the latest news: Alarmed at rising capital outflows from the country, China is said to have tightened the rules related to fund repatriation by multinational firms. The State Administration of Foreign Exchange has instructed banks to sharply limit the money that companies can move out of the country and into their other operations around the world, according to the Wall Street Journal. Until this week, it was possible for big firms to “sweep” US$50 million worth of yuan or dollars in or out of China with minimal documentation. But now, the cap has been reduced to the equivalent of US$5 million, the report said, citing bankers and officials familiar with the matter. The important thing to understand here is that capital leaving the country lowers the exchange rate. Quite obviously, to get the money out of the Chinese economy (if not just out of China) you have to sell the yuan and buy some other currency. That, in and of itself, lowers the yuan exchange rate. China has been restricting the ability of people to move money out of China for some time now, this is just the latest tightening of the screw. As that original WSJ report states: Beijing is fighting an increasingly vicious cycle of capital outflows that weaken the yuan. Most dramatically, the State Council, China’s cabinet, intends to tighten scrutiny of overseas acquisitions by domestic companies, The Wall Street Journal reported last week, which could result in deal delays or outright cancellations. Until now, few of China’s capital-control measures took obvious aim at foreign businesses. So, the rules that China is deploying mean that China really is a currency manipulator. But it is manipulating the value up, not down as is the usual claim. And that makes the policy response, if we want to have one at all, rather more difficult. For the usual claim is that the manipulation is downwards--meaning that Chinese exports to America are cheaper for Americans. This, some say, is unfair competition and good Americans lose those "guhd jahbs" that Bernie Sanders keeps going on about. Myself I look at that the other way around. Manipulating the yuan down does indeed make exports to America cheaper and imports into China more expensive. Which means that such manipulation, if it is occurring, makes Americans richer (they must pay less for what they want) and the Chinese poorer (they must pay more). True, not many see it this way but that really is the way that it is.