Tentative trade deal with Japan encourages U.S. farmers, ranchers

[TU Curmudgeon]

From United Press International

Tentative trade deal with Japan encourages U.S. farmers, ranchers
​

EVANSVILLE, Ind., Aug. 27 (UPI) -- Word that the United States has reached a tentative trade deal with Japan has given U.S. farmers and ranchers a bright spot in an otherwise dismal year.

President Donald Trump announced a tentative trade accord with Japan on Sunday near the end of the G7 summit in France.

Japan is America's fourth-leading buyer of agricultural products -- and ranks even higher for certain commodities. It is the top importer of U.S. beef, for example, and the second leading buyer of corn.

There had been real concern that U.S. farmers would lose the Japanese market entirely this year after that nation entered into trade agreements with several Asian and European nations and not the United States.

COMMENT:-

It is 100% true that the US and Japan have reached an agreement on a trade agreement between the two countries. BOTH countries have agreed that "There should be trade between the US and Japan.".

However, the details of the penalty that Japan will have to pay if the value of the goods that the Japanese sell to Americans exceeds the value of the goods that Americans sell to Japan have still not been worked out.
​

 

[Ikari]

Well hopefully something positive can be worked out. The farmers have been walloped by Trump's trade war.

 

[Drawdown]

Good for farmers but I am not sure that this is a big picture smart move. Japan parks its extra cash in US treasuries. If they have no extra cash from trade, they won't be buying debt and we kind of need people to continue to buy those bonds.

 

[Exquisitor]

From United Press International

Tentative trade deal with Japan encourages U.S. farmers, ranchers
​

EVANSVILLE, Ind., Aug. 27 (UPI) -- Word that the United States has reached a tentative trade deal with Japan has given U.S. farmers and ranchers a bright spot in an otherwise dismal year.

President Donald Trump announced a tentative trade accord with Japan on Sunday near the end of the G7 summit in France.

Japan is America's fourth-leading buyer of agricultural products -- and ranks even higher for certain commodities. It is the top importer of U.S. beef, for example, and the second leading buyer of corn.

There had been real concern that U.S. farmers would lose the Japanese market entirely this year after that nation entered into trade agreements with several Asian and European nations and not the United States.

COMMENT:-

It is 100% true that the US and Japan have reached an agreement on a trade agreement between the two countries. BOTH countries have agreed that "There should be trade between the US and Japan.".

However, the details of the penalty that Japan will have to pay if the value of the goods that the Japanese sell to Americans exceeds the value of the goods that Americans sell to Japan have still not been worked out.
​

Trump's not all bad so he must be all good.

 

[Mycroft]

From United Press International

Tentative trade deal with Japan encourages U.S. farmers, ranchers
​

EVANSVILLE, Ind., Aug. 27 (UPI) -- Word that the United States has reached a tentative trade deal with Japan has given U.S. farmers and ranchers a bright spot in an otherwise dismal year.

President Donald Trump announced a tentative trade accord with Japan on Sunday near the end of the G7 summit in France.

Japan is America's fourth-leading buyer of agricultural products -- and ranks even higher for certain commodities. It is the top importer of U.S. beef, for example, and the second leading buyer of corn.

There had been real concern that U.S. farmers would lose the Japanese market entirely this year after that nation entered into trade agreements with several Asian and European nations and not the United States.

COMMENT:-

It is 100% true that the US and Japan have reached an agreement on a trade agreement between the two countries. BOTH countries have agreed that "There should be trade between the US and Japan.".

However, the details of the penalty that Japan will have to pay if the value of the goods that the Japanese sell to Americans exceeds the value of the goods that Americans sell to Japan have still not been worked out.
​

What makes you think that penalty you speak of will be part of the deal? Or even needs to be part of the deal?

In any case, this deal with Japan undercuts China's attempts to put pressure on Trump by enacting tariffs on US AG. Smart move by Trump, I'd say.

 

[bluesmoke]

Good for farmers but I am not sure that this is a big picture smart move. Japan parks its extra cash in US treasuries. If they have no extra cash from trade, they won't be buying debt and we kind of need people to continue to buy those bonds.

"Japan parks its extra cash in US treasuries."

So does everybody else. What else can they do with US dollars? Put them into German bonds at a negative yield? That's why the trade imbalance isn't too big a deal. Something Trump can't cognate.

 

[TU Curmudgeon]

Well hopefully something positive can be worked out. The farmers have been walloped by Trump's trade war.

Hog WASH!!!

Not one single American is going to suffer the slightest inconvenience over the fact that the Chinese are paying "The Greatest Tariffs In American History".

Not only that, but the boost to the US economy from all of the money that Mexico pays to build "The Wall" will be fantabulous!!!

 

[TU Curmudgeon]

Good for farmers but I am not sure that this is a big picture smart move. Japan parks its extra cash in US treasuries. If they have no extra cash from trade, they won't be buying debt and we kind of need people to continue to buy those bonds.

Not in the least, "The Fed" can simply print the money to buy them and everyone will get rich.

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[TU Curmudgeon]

What makes you think that penalty you speak of will be part of the deal? Or even needs to be part of the deal?

In any case, this deal with Japan undercuts China's attempts to put pressure on Trump by enacting tariffs on US AG. Smart move by Trump, I'd say.

Ummm, you do know that the Japanese haven't actually heard of this "deal" don't you?

 

[TU Curmudgeon]

"Japan parks its extra cash in US treasuries."

So does everybody else. What else can they do with US dollars? Put them into German bonds at a negative yield? That's why the trade imbalance isn't too big a deal. Something Trump can't cognate.

Actually one of the things that you can do with US dollars is buy things that the US sells. If you want to "downsize" your holdings of US dollars then you have two options:

1. don't accept payment in US dollars unless you are already compelled to do so; or
2. don't offer to sell things in US dollars.

 

[Mycroft]

Ummm, you do know that the Japanese haven't actually heard of this "deal" don't you?

Your response is irrelevant to my points.

 

[TU Curmudgeon]

Your response is irrelevant to my points.

Indeed, your "point" that Mr. Trump has negotiated a trade deal with the people who have never heard about it is quite sound and totally unaffected by fact.

 

[Mycroft]

Indeed, your "point" that Mr. Trump has negotiated a trade deal with the people who have never heard about it is quite sound and totally unaffected by fact.

Are you saying Abe hasn't heard of the trade deal? Are you saying that Trump's negotiators and Abe's negotiators haven't heard of the deal?

Tell me about that, eh?

 

[SmartCat]

However, the details of the penalty that Japan will have to pay if the value of the goods that the Japanese sell to Americans exceeds the value of the goods that Americans sell to Japan have still not been worked out.
[/INDENT]

Why should the Japanese pay any penalty at all? We buy Japanese cars, motorcycles and consumer electronics because they are better made than similar goods manufactured in the United States, and they are sold at reasonable prices.

 

[TU Curmudgeon]

Are you saying Abe hasn't heard of the trade deal? Are you saying that Trump's negotiators and Abe's negotiators haven't heard of the deal?

Tell me about that, eh?

I only go by what the Japanese government says.

I have no doubt that Mr. Abe and the Japanese government have heard that Mr. Trump WANTS to have a trade deal with Japan. What I doubt is that either of them has heard about Mr. Trump ACTUALLY HAVING a trade deal with Japan. (Well, much beyond "Yes, indeed, we are, in principle, agreed that there should be a trade deal between the US and Japan. All that remains to be worked out now are the actual details of what will be in that trade deal." I mean.)

 

[TU Curmudgeon]

Why should the Japanese pay any penalty at all? We buy Japanese cars, motorcycles and consumer electronics because they are better made than similar goods manufactured in the United States, and they are sold at reasonable prices.

All of those cars, motorcycles, and consumer electronics SHOULD be being made by American workers in American factories owned by American companies and with all of the profits going to rich Americans.

When all of those cars, motorcycles, and consumer electronics are once again being made by American workers in American factories owned by American companies and with all of the profits going to rich Americans they will STILL be "sold at reasonable prices". (After all, it wouldn't be realistic to expect those American companies to sell their products at a loss, would it?)

The fact that they aren't means that the Japanese aren't trading fairly and THAT is why the Japanese should be paying penalties.

Jeeze - don't you follow the news at all?

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[bluesmoke]

Actually one of the things that you can do with US dollars is buy things that the US sells. If you want to "downsize" your holdings of US dollars then you have two options:

1. don't accept payment in US dollars unless you are already compelled to do so; or
2. don't offer to sell things in US dollars.

Yes, there’s a number of choices.

By far, there are more US dollars than any other national currency, with the Euro being #2, and then financing is by far US based, which if so financed, trade would have to be in USD (as you said, "already compelled to do so" as with other compelling reason). And, lastly and most importantly, the best investment is still US Treasury Notes, which means any such investment must be converted into or made to begin with in USD. It will be last touched as USD and so used in the US. Whether your choice #1, #2 or other choice, it will most likely end-up USD than anything else.

 

[TU Curmudgeon]

Yes, there’s a number of choices.

By far, there are more US dollars than any other national currency, with the Euro being #2, and then financing is by far US based, which if so financed, trade would have to be in USD (as you said, "already compelled to do so" as with other compelling reason). And, lastly and most importantly, the best investment is still US Treasury Notes, which means any such investment must be converted into or made to begin with in USD. It will be last touched as USD and so used in the US. Whether your choice #1, #2 or other choice, it will most likely end-up USD than anything else.

That, indeed, is the approved mantra.

However, things do change "UPDATE 1-U.S. dollar share of global currency reserves hits near 5-year low - IMF". What the eventual change will be, and when that will happen I am in absolutely no position to guess.

HOWEVER, if the US proves that it is going to be an "unreliable" trading partner and/or if the US economy takes a significant hit (pulling other economies down with it) then the odds that the rest of the world isn't going to be overly keen on letting the US dollar continue to dominate the economic future of the world increase.

 

[SmartCat]

All of those cars, motorcycles, and consumer electronics SHOULD be being made by American workers in American factories owned by American companies and with all of the profits going to rich Americans.

When all of those cars, motorcycles, and consumer electronics are once again being made by American workers in American factories owned by American companies and with all of the profits going to rich Americans they will STILL be "sold at reasonable prices". (After all, it wouldn't be realistic to expect those American companies to sell their products at a loss, would it?)

The fact that they aren't means that the Japanese aren't trading fairly and THAT is why the Japanese should be paying penalties.

Jeeze - don't you follow the news at all?

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I do not see why I should pay more for second rate American goods just so some beer bellied morons with MAGA caps get their factory jobs back. If those idiots had not dropped out of high school they would have learned that factory jobs only became desirable because of Democratic economic reforms during and after the New Deal.

 

[TU Curmudgeon]

I do not see why I should pay more for second rate American goods just so some beer bellied morons with MAGA caps get their factory jobs back. If those idiots had not dropped out of high school they would have learned that factory jobs only became desirable because of Democratic economic reforms during and after the New Deal.

You should be overjoyed at the thought that you are contributing to the wealth and prosperity of the United States of America. Your slanderous statement about the quality of American made goods (which are actually the world's best by any test of quality) and the honest, hard-working, family loving, country supporting, patriotic, American worker, have been noted.

[The above officially approved and endorsed by "Devoted Online Lovers of Trump" Inc. (a non-partisan, independent, research and analysis organization exempt from federal taxation that is dedicated to bringing you the true truth and not the false truth that anyone who doesn't believe 100% of what Donald Trump says tries to tell you the so-called "facts" are), "Pro-Life United Gun Enthusiasts and Manufacturers for Jesus", and “The ‘First Amendment Rights Trust’ Foundation”.]

 

[bluesmoke]

That, indeed, is the approved mantra.

However, things do change "UPDATE 1-U.S. dollar share of global currency reserves hits near 5-year low - IMF". What the eventual change will be, and when that will happen I am in absolutely no position to guess.

HOWEVER, if the US proves that it is going to be an "unreliable" trading partner and/or if the US economy takes a significant hit (pulling other economies down with it) then the odds that the rest of the world isn't going to be overly keen on letting the US dollar continue to dominate the economic future of the world increase.

If Trumpenomics continue, we could lose position as the single-most dominant currency. Trump's fits and starts plan of Amexit has us withdrawing from world moral and democratic leadership and exiting economic relations as countries question our credibility as affects economic alliance, security reliance and trade deals. Otherwise, what you speak of is just temporary stuff. Now, it could get real to an extent that takes years to recover, if ever completely.