The Unfortunate and Inconvenient truth about Donald Trump’s trade war with China – May 8, 2019,

The very inconvenient truth about tariffs, especially in a fiat based monetary system, which allows financial wizardry which would be allowed in a financial system where money was backed by something tangible like Gold is that minimum wages undermine a countries ability to start a trade war. It should be noted that the world has been in a trade war long before Trump arrived, however, Donald Trump gave the words “Trade War” life. There are a number of countries that have already abolished minimum wages and in many respects replaced minimum wages with consumption-based taxes.

America, unfortunately, hasn’t gotten the memo and this is why the longer this trade war lasts, the more moronic Donald Trump will look. It’s important to understand something about the rise of China and their currency manipulation. It exists because of minimum wages in the United States, you see if your country doesn’t have minimum wages, your tariff system is ironclad.

Because remember if you in Europe or the U.K for example, the US dollar has less market value than your currency has, but if you were to base this lower value strictly on market value, than it would be fair to look at the regulations governing the United States vs. the regulations that govern your nation. If there are price or wage control mechanisms in the United States that don’t exist in your nation and both countries are selling the exact same item in a particular instance, thereby competing for market share, in fairness a tariff could be levied to keep a level playing field, now obviously the larger a company gets, the more likely it is for that company to branch out, but tariffs can be used to protect individuals from unfair competitive trading practices. However, if your country is also guilty of market manipulation, well now you’re simply playing a game of who will back down first.

Unfortunately, Donald Trump has placed himself in a position that allows China to manipulate the value of its currency and there’s really noting Trump can do about that except for pressure=ing the Federal Reserve to stop raising interest rates are demanding they cut interest rates. This is obviously the reason why you’ve heard Trump complain about Jerome Powell over and over again. It’s also becoming increasingly apparent why Trump hasn’t been focusing on the Democrats as much of late. Donald Trump whether like him or hate him, he has a very balanced approach to dealing with complicated financial matters. I doubt the average woman or man would be able to juggle this many things at once, while President.

The difficulty in what Trumps doing revolves around crashing the Chinese economy, which will basically evolve into a worldwide currency crisis. Where America has the upper hand in all of this is that America has the least amount of CONSUMPTION related taxes. In some U.S States, sales taxes are 0%, this approach to taxation sounds crazy to most Europeans, but it’s one of the reasons why consumer goods are so cheap in the United States, it also creates a whole different type of feel as a consumer.

Despite how people vote, humans hate sales taxes, sure humans will accept sales taxes, but sales taxes cause people to make fewer purchases, which also forces retailers to purchase fewer goods, which also forces prices for goods higher, because if you know anything about bulk purchases, the larger your bulk purchase the less you’ll pay. This is why if you live in Europe or Canada and you wonder why prices are so much higher in your country vs. most U.S States it’s because the American system is based on STIMULATING consumption.

Te very harsh truth about America is if it abolished minimum wages, the U.S would experience such an economic boom, that it would force the entire world to change. If I were Donald Trump, I’d abolish minimum wages effective immediately. Sure, I know it’s unlikely it would happen, but on the Federal level, he could send a message and use China’s currency manipulation as the reason for doing it. But you know, greed exists in the hearts and minds of the Bernie Sanders types and they’d view a minimum wage abolishment at the Federal Level as Donald Trump looking out for his rich buddies. But, the truth of the matter is a lot of the so-called socialist countries that Bernie Sanders loves so much don’t have minimum wages at the Federal Level. If I were Trump I’d point this out the list below are countries with no Federal minimum wage.

Countries without a Federal minimum wage

• Iceland,
• Norway,
• Sweden,
• Finland,
• Denmark,
• Austria,
• Germany,
• Italy,
• Switzerland

If you want a justifiable tariff system, abolish minimum wages, when you do this a country can’t undermine your tariff system. As an example, the United States was able to bring Canada to the negotiating table, because in Canada they have quite a few subsidized industries that fundamentally have no justifiable market valuations. Now, the reason why Canada was able to retaliate in some instances was based on similar subsidies occurring in the United States. However, once America relieves itself of unnecessary price and wage controls, it puts the world on notice that if you put tariffs on us we’ll put tariffs on you. But you see, what I’m offering here is a house cleaning and I’m not so sure America is ready for a house cleaning yet.

With that said abolishing minimum wages on the federal level, will etch Donald Trump in the history books. Now, obviously certain U.S States can keep their minimum wages but abolishing the $7.25(as of 2019) federal minimum wage would prevent other countries from undermining U.s jobs, but with that said, the reality is most people don’t understand economics and will create conspiracy theories and fake news stories about Trump trying to help out the rich elites.

Hope, all works out well for the United States because if China becomes the worlds largest and most dominant economy, global economies will be at risk, because China doesn’t follow the rules and the larger China gets and the more powerful its military gets, the more the world becomes dependent on it while it’s a Communist dictatorship, the more likely that the world economy will be forced to be under Chinese hammer and sickle.

Interesting times ahead.