Dear Mr. President: How Much More "Winning" Can We Take?

US cotton producers will take a hit in the US-China tit-for-tat trade war. We call this "winning".

India's cotton shipments to China could grow five-fold to 5 million bales (850,000 tonnes) in the next crop year as exporters rack up orders amid a trade war that is forcing the world's top consumer to look for other sources of supply.

The United States, the world's biggest exporter of the fibre, has cornered the bulk of Chinese imports for at least a decade. But China's decision to impose a 25 percent import tax from July 6 on American farm commodities, including on cotton, in retaliation for tariffs enacted by the administration of U.S. President Donald Trump will allow India to grab a bigger share of the Chinese market.

"In the last few weeks we are getting good inquiries from China for the new season crop," said Arun Sekhsaria, managing director of D. D. Cotton, an exporter that earlier this month sold cotton to China for shipments in November and December.

"If the 25 percent duty stays there as announced, then India could export 5 million bales to China," he said.

"India will benefit not only because of the tariffs, but because emerging nations' currencies have generally lost value against the dollar in the last couple of months," said Gabriel Crivorot, an analyst at Societe Generale in New York.

Winning by Losing

Trump believes China will lose more. This we call "winning".

Mike "Mish" Shedlock

Whoa Nellie! That's quite a claim there. Would be very curious what you're basing that statement on.

Could hear a needle scratching a record as I read that!

even if the tariffs come down, it will be hard to win back the business

Historically low unemployment, lower taxes, the numbers when asked if satisfied with the direction of the country... Can you name a state that went for Trump that he'd lose if an election were held tomorrow? I don't know of any Trump voters that he's lost but I know a few Democrats so disgusted with the fake hysteria who plan on voting for him in the future out of protest. Not many but it only takes a few percent for him to win re-election in a landslide.

Unemployment numbers are bogus ,as discussed on here many times. The BLS is perhaps the most crooked of government indicators, and that's saying something. Trump himself claimed 42% unemployment a few months before he was elected.

The point is that we have many more trillions in debt than we did decades ago and the central bankers have run roughshod on us and the rest of the world. We also have a society where we absolutely despise each other. Lengthy periods of artificially low interest rates from the Fed have spurred a breathtaking amount of malinvestment and the debt has become so onerous that normalizing rates is no longer possible.

You can like Trump or dislike him, whatever. But if you think anybody's "saving" the US from its mathematical fate, you need to flush out your headgear.

Amazing. Even Americans realize that they despise each other. And Trump is making sure that the rest of the world despises Americans too. You can’t make this stuff up!