US-China Trade War Is Gaining Momentum

The United States and China are clearly on a collision course.

For the last few decades, the Chinese government was playing bumper car game with us when driving behind our stretch limo and grabbing whatever has fallen out of its trunk. Our drivers have never reacted to it out of fear of making the situation worse. Until now. We finally managed to hire limo driver with balls. He pulled over, jumped out the car with a baseball bat in his hand and is straightening things out.

Pres. Trump’s tough stand on China’s unfair trade practices is starting to bring some positive effects.

HP and Dell, the world’s No. 1 and No. 3 personal computer makers who together command around 40% of the global market, are planning to reallocate up to 30% of their notebook production out of China, several sources told the Nikkei Asian Review.
Microsoft, Google, Amazon, Sony and Nintendo are also looking at moving some of their game console and smart speaker manufacturing out of the country, multiple sources told the Nikkei Asian Review. Other leading PC makers such as Lenovo GroupAcer and Asustek Computer are also evaluating plans to shift, according to people familiar with the matter.

Nikkei Asian Review – 7/3/19

Beijing might talk tough, pledging “fight to the end,” but major tech companies can see more and more problems threatening their bottom lines like unfair trade practices, national security concerns, and rising labor costs to list just a few and are fleeing the country.

We are winning. More and more companies move their production to U.S.-friendly countries in Eastern Europe and Southeast Asia. Apple Inc has asked its leading suppliers to estimate the cost of relocating 15-30 percent of their production capacity from China to Southeast Asia. Sooner then later, China will have to decide whether to trade fairly with the United States or to risk seeing its economy shrink.

Off course there are some hiccups in the stock market, and every time numbers go down anti-Trump crowd goes crazy hoping the US economy will finally go down the tube and their candidate will take over the white house in 2021.

So far, even with all the liberal media outlets working very hard trying to create a panic and scare people into a recession, the stock market is doing OK.


(As of Aug 23, 2019)

S&P 500 INDEX – +13.57%

Now, at the end of this post, I’m going to be as optimistic about the stock market and our economy as anti-Trumpers are pessimistic. I predict that by the end of 2020, Trump will beat Xi Jinping, and DOW JONES is going to hit 35,000.

Thank You For Reading

15,000 Mexican Troops Deployed To US Border

In an attempt to stop the flow of illegal immigration into the United States and avoid tariffs from the Trump administration, Mexico has deployed approximately 15,000 military personnel to its northern border.

We have a total deployment, between the National Guard and army units, of 14,000, almost 15,000 men in the north of the country,

Mexico’s Defense Minister
Luis Cresencio Sandoval

After multiple attempts to work with the US Congress in securing our southern border and realizing that Congress has zero interest in doing so, President Trump decided to enlist the help of Mexico. As an incentive, he delicately hinted that if our southern neighbor doesn’t take action to stop the uncontrolled influx of illegals from Central America to the United States, he will put tariffs on all Mexican products exported to the US. Merely speaking, will tax living daylights out of them.

Tariffs don’t work. Really?

Because of the threat of tariffs (which could reach as high as 25%), after few days, which Mexican leaders needed to think about it and our Congress used to scream bloody murder and criticize Mr. Trump for starting another trade war, on June 7, Mexico signed an agreement with the Trump administration. They got 45 days to show significant results in their efforts to counter the surge of migrants from Central America entering the United States.

Fifteen thousand troops deployed to the border is a good start. Future will show how serious the Mexican government is about controlling its northern frontier.

Last month (May 2019), US officials detained 144,000 migrants at the border, up 32 percent from April and 278 percent from May 2018. The total included a record 89,000 families. If they manage to cut these numbers to one third over the next 30 days, I will consider it worthwhile.

Thank You For Reading