1/Americans get addicted to #consumption
2/#Manufacturing goes overseas for cheap #labor/trade deals
3/The US imports cheap goods in exchange for #dollars (creates deficit)
4/Foreign countries take excess dollars & buy US #debt (#treasuries)
5/Debt demand suppresses #interestrates
6/Low interest rates encourage more consumption
7/Stagnant #wages/consumption based jobs encourage more debt
8/Foreign countries end up with excess dollars & US in debt
9/US ends up with low paying jobs, debt & cheap consumer goods
10/Consumption based #economies are overloaded with debt & low paying jobs
11/ 🔄 Low paying jobs make people dependent on cheap goods
12/Cheap goods produced overseas keeps the US from competitive manufacturing 🔄
13/US exports subjected to very high #tariffs
This is what has occurred over the last 40-50 years, & we are seeing an attempt at reversing this process.
There is no telling what will come of the #TradeWar, short term or long term pain? Or maybe relief from the pain already suffered.