How did the US get into such a bad trade deal with China?

With the tension between China and the United States, it’s easy to forget that the two countries have been top trading partners for years. Less than five years ago, China overthrew Canada as the United States’ largest and most lucrative trading partner.

Totaling nearly $500b in total goods traded, and making up nearly 15% of the total U.S. trading market. Despite the recent rise in prevalence of China into U.S. trade, the United States has always been the top trading partner for China since the 90s. Although trade relations between the two economic powerhouses has not always been smooth, things dramatically changed recently and within the past years, the U.S. entered a pretty bad trade deal with China. Here’s what you need to know about it:

In 2017 the U.S. and China reached a strategically structured trade deal that opened the market to credit and debtor agencies and credit card companies. The deal also has lifted the ban on beef imports from China to the United States and allows the U.S. to accept shipments of natural gas in their liquified. In return, the Chinese banks are permitted to enter the U.S. market. The hopes with this new deal were to reduce China’s surplus of trade with the U.S. by last year.

These results seem to be an indication that President Donald Trump was open to being less confrontational with China and the U.S. trade market deals. Last year, around the time of the deal, Trump threatened to call China as manipulators of world currency and impose unreasonable tariffs on goods, making foreign trade with the U.S. non-profitable for the Chinese markets. It appeared last year that Trump had softened his approach.

This is no longer the case with a trade war now imminent between two of the largest markets imposing taxes and tariffs on one another which is only worsening the effects of the failed trade deals between the two countries. The equalizer may be more simple than we could imagine though.

The self-destructive tit-for-tat tariff and tax escalation is in neither country’s best interests. The current tariffing system is only hardening positions rather than producing any meaningful results to the world market. Ultimately, the taxes make American producers less competitive and the side effects fall almost exclusively on the consumers.

Stopping this tit-for-tat escalation is the most beneficial way to equalize the trade hardships. By putting these trade war policies in the rearview mirror, the U.S and China could focus on long-term goals and results and work toward a better and more lucrative deal between the two markets.

China could effectively neutralize disagreements by opening up in sectors such as financial services and technology. By doing so, the country would be able to take unilateral steps that would benefit the economy domestically and also be welcomed by Americans and American leaders. The two economic powerhouses can’t disengage fully, regardless of the actions of either administration.

To equalize the trade deficit the two economies must compete and compliment each other in many different areas. The joint goal, though, must be to eliminate irritants, be open to trusting one another, allow mutually beneficial collaborations. It is also going to be very important that the two countries come to an agreement on the competitive guidelines in areas such as the open internet, data mobility, intellectual property, and open investment.

How to make American Industries Thrive Again?

Peter Schiff, the famous America radio spokesperson, and financial analysts have brought about a lot of policies that has revolutionized the American economy. The framework for his economic policies has directed America towards a better economic future. Here, we will be talking about some of Peter Schiff’s economic policies which can lead American industries back on track.

As we have seen in the recent times in the month of March how there is a clear-cut drop off for the third consecutive time in the entirety of sales by retail. Credit card balances are falling down, in comparison to the previous year, 2017. People’s purchasing power is also going down. All of this is an indicator of a declining economy and Peter Schiff’s policies can rescue the Americans and help in its all-around economic growth.

Talking in terms of inventory, produced by industries, Peter Schiff has identified how there is a sudden decline in the number of goods being produced. Since the production is minimal, it leads to an increase in price. With increase in price, only the very privileged are consuming such products and this is creating a void that needs to be fulfilled by the workforce and the machinery of the industries to create more goods so that a nominal value is maintained and goods are purchased, and there is a normal flow of cash in the economy.

In connection with the above policy, Peter Schiff is against the idea of minimum wages for the workforce of any industry. He doesn’t believe in the concept, as this idea of minimum wages, takes down a workman’s efficiency and productivity to work well and produce more goods in the economy. Since all of his money is invested in his other needs, so he hardly has anything left to invest in acquiring a new skill to be more employable.

This way many of the American workforce labor stay in the present company because of lack of skill and hence provide work with lesser motivation and lower efficiency. The point of reiterating all of this is to make understand that how Peter Schiff is asking industries lagging behind to come up and take the initiative of making most of the production by removing the concept of minimum wages.

Peter Schiff’s taxation policy is very interesting and can raise insurgency in the economy. To understand his taxation policy we have to keep in mind three types of taxes, namely:- sales tax, income tax, consumption tax. He is pro a whole understanding of sales tax than personal or income tax. He is of the view that personal and income tax will not be a positive accelerator for the workforce, which is in conflict with the consumption tax.

He has clearly mentioned that the government should not provide the subsidy to its people for buying their own homes in comparison to renting it out. This leaves the buyers or the consumers to decide a better allocation of resources, and the purchase is higher, thus saving the industries and giving them the incentive to grow.

Stock Brokers have taken interest in Peter Schiff’s policies and have found a lot of convincing power in his ideas. If all of these factors are taken into account and worked upon, it can save our economy.

How to make American Industries Thrive Again?

Peter Schiff, the famous America radio spokesperson, and financial analysts have brought about a lot of policies that has revolutionized the American economy. The framework for his economic policies has directed America towards a better economic future.

Here, we will be talking about some of Peter Schiff’s economic policies which can lead American industries back on track. As we have seen in the recent times in the month of March how there is a clear-cut drop off for the third consecutive time in the entirety of sales by retail.

Credit card balances are falling down, in comparison to the previous year, 2017. People’s purchasing power is also going down. All of this is an indicator of a declining economy and Peter Schiff’s policies can rescue the Americans and help in its all-around economic growth.

Talking in terms of inventory, produced by industries, Peter Schiff has identified how there is a sudden decline in the number of goods being produced. Since the production is minimal, it leads to an increase in price. With increase in price, only the very privileged are consuming such products and this is creating a void that needs to be fulfilled by the workforce and the machinery of the industries to create more goods so that a nominal value is maintained and goods are purchased, and there is a normal flow of cash in the economy.

In connection with the above policy, Peter Schiff is against the idea of minimum wages for the workforce of any industry. He doesn’t believe in the concept, as this idea of minimum wages, takes down a workman’s efficiency and productivity to work well and produce more goods in the economy. Since all of his money is invested in his other needs, so he hardly has anything left to invest in acquiring a new skill to be more employable.

This way many of the American workforce labor stay in the present company because of lack of skill and hence provide work with lesser motivation and lower efficiency. The point of reiterating all of this is to make understand that how Peter Schiff is asking industries lagging behind to come up and take the initiative of making most of the production by removing the concept of minimum wages.

Peter Schiff’s taxation policy is very interesting and can raise insurgency in the economy. To understand his taxation policy we have to keep in mind three types of taxes, namely:- sales tax, income tax, consumption tax.

He is pro a whole understanding of sales tax than personal or income tax. He is of the view that personal and income tax will not be a positive accelerator for the workforce, which is in conflict with the consumption tax. He has clearly mentioned that the government should not provide the subsidy to its people for buying their own homes in comparison to renting it out.

This leaves the buyers or the consumers to decide a better allocation of resources, and the purchase is higher, thus saving the industries and giving them the incentive to grow.

Stock Brokers have taken interest in Peter Schiff’s policies and have found a lot of convincing power in his ideas. If all of these factors are taken into account and worked upon, it can save our economy.

What is the cause for the recent hype in the Fintech sector?

Access to financing has become a matter of seconds and has been on a demand basis, all thanks to the evolution and innovations in technology in the finance sector such as mobile and cloud computing over the recent years. This has been a widely-accepted financing method by most customers as it provides an easier way to manage funds and businesses online.

Most traditional finance institutions in turn have made enormous investments in fintech to keep up with the competition posed by startup businesses to offer several finance services and products at a faster and more efficient rate. This quest of customer retention and acquisition has resulted in a general increase in technical innovations. This increasing trend in innovation has resulted in a hype in fintech in the finance sector.  

The trend in fintech has been procrastinated to keep increasing in subsequent years, here is why:

• A large number of clients are turning to fintech systems. Acting like venture capitalist, most clients are beginning to invest in fintech with the hope of finding solutions to social problems like high transfer rates incurred when transferring funds from one person to another and when making payment. An example of the social problems solved by fintech is Peer-to-peer lending which has made possible money lending at very cheap rates.    

• Eliminating the third party. The hype in fintech is also due to its potential to eliminate third parties such as central banks. Elimination of the third party has given costumers a sense of security due to a loss in customer trust towards central banks considering the 2008 financial crisis in America. There’s so many companies doing interesting things, whether it’s related to invoice discounting technology, accounts receivable financing, bitcoin, insurance, personal finance, and much more.

• New technology. The introduction of new technologies like machine learning artificial intelligence and data-driven marketing has made users to believe in its promise to considerably improve on their saving and spending habits and business management techniques by systematically analyzing data on their finance decisions and by doing so revealing habits to hidden even to themselves.    

• Security One factor that has led to the hype in fintech and is anticipated to maintain an uptrend is the fact that it is secure and transparent. Its large digital leger is highly traceable by security agencies and has reduced the tendency of fraud. Its digital ledger audit trail has also eliminated the ability of a third party to alter transaction rules.     In as much as fintech has improved the ability of quick financing for clients, this has cause a growing concern amongst regulators on how to force more innovation in the industry and at the same time protecting the interest of all stake holders.

Many regulators have been seeking smart regulation techniques a “not too much not too little” kind of approach. Most regulators have been watching developments keenly giving enough room for players to keep performing their duties, but at the same time regulators also want to be actively involved in the process and not only responding to it.        

Fintech has been causing changes in existing architecture and creating new deployment and implementation challenges. This has been raising concerns like which issues or problems are we solve first and how can they be solved without affecting other businesses. Now financial executives must figure out how to incorporate the new technologies effectively taking into consideration their short and long term impacts to existing systems and processes.

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