There’s plenty of demand for manufactured goods. They can just sell to other markets. US foreign policy is causing demand spikes everywhere.
For instance, I read 300M people are projected to starve to death this year. I’m sure China will happily send some of them any excess food, especially since it’s not going to sell it into US any more.
I think you mean there are not enough US dollars in those markets. There are at least two easy solutions: (1) Intentionally tank the dollar to increase the relative purchasing power of other countries (which they have probably been doing - someone is, but the “who” is a bit opaque). (2) Stop dealing in US currency entirely and switch the world economy to a new reserve currency. I suspect that the Euro and/or Yuan will win that war, though some argument could be made for crypto.
I agree Trump may as well be running around naked at this point. It wouldn’t affect most people’s opinion of his competence or professionalism (domestically or overseas).
Anyway: To answer the question that is the article title: Because the US is (was) rich, and has (had) a high but sustainable standard of living.
> There’s plenty of demand for manufactured goods.
This is not true. The US is by far the largest consumer of final household goods at 18 trillion, the EU at 10 trillion, China at 6.7 trillion, Japan at 2 trillion, UK at 2 trillion, India at 2 trillion, the rest of insignificant. You would more of less need to combine every other significant market to match the loss in exports to the US market.
And that won't happen, because of these markets are export driven economies, hence their economies are not structurally designed to suddenly take on mass deficits without mass unemployment coming at hand. Nobody wants to take on the world's surpluses as a deficit country save for the USA, which people in this thread seem quite ardent in convincing Americans to do so, even if they won't support similar policies in their own countries.
Don’t confuse desire with demand. Economic demand is desire coupled with the ability to pay.
Nothing to do with dollars. The system is limited by world income.
China is not going to send anything to people who can’t pay. Otherwise they’d continue shipping to the US for absolutely nothing in return rather than the vague promise they are currently taking
And if they can pay then supply will already have expanded to service them.
For instance, I read 300M people are projected to starve to death this year. I’m sure China will happily send some of them any excess food, especially since it’s not going to sell it into US any more.
I think you mean there are not enough US dollars in those markets. There are at least two easy solutions: (1) Intentionally tank the dollar to increase the relative purchasing power of other countries (which they have probably been doing - someone is, but the “who” is a bit opaque). (2) Stop dealing in US currency entirely and switch the world economy to a new reserve currency. I suspect that the Euro and/or Yuan will win that war, though some argument could be made for crypto.
I agree Trump may as well be running around naked at this point. It wouldn’t affect most people’s opinion of his competence or professionalism (domestically or overseas).
Anyway: To answer the question that is the article title: Because the US is (was) rich, and has (had) a high but sustainable standard of living.