http://dcwhispers.com/remember-when-fauci-was-telling-all-of-america-to-not-worry-about-the-coronavirus-we-do/
As more and more Americans now realize that what so many in the media were reporting regarding the coronavirus threat was vastly overblown and that the panic that ensued that resulted in a punch to the face of the U.S. economy that might in fact prove far more deadly than the virus itself, the Trump administration is moving toward some major economic responses intended to punish China and further strengthen America as the one true global super power.
Read on to learn more…
Via Forbes:
Kudlow: ‘Pay The Moving Costs’ Of American Companies Leaving China
Call the moving company, Washington’s picking up the tab.
The same day Japan announced that it would spend upwards of $2.2 billion to get its corporations out of China and either back home or spread throughout southeast Asia, White House National Economic Council Director Larry Kudlow said the U.S. should “pay the moving costs” of every American company that wants out of China.
“I would say, 100 percent immediate expensing across the board for plant, equipment, intellectual property, structures, renovations… In other words, if we had 100 percent immediate expensing, we would literally — literally pay the moving costs of American companies,” Kudlow said on the FOX Business Network’s America Works Together Town Hall which aired on Thursday.
The Japanese government announced that it would provide direct loans 220 billion yen ($2 billion) for companies shifting production back to Japan and 23.5 billion yen for those seeking to move production to other countries, according to details of the plan posted online.
Kudlow told one of the people in attendance, who had asked about America’s over-reliance on China, what could be done to change the commercial relationship post-pandemic.
Kudlow said that one way was to provide them with moving cost payments, though he did not get into specifics.
Most U.S. companies that manufacturer in China do not have their own greenfield assembly line. For example, Apple AAPL has long used Foxconn, a Taiwanese multinational with massive assembly plants in mainland China. Other U.S. companies simple contract Chinese firms to do the work, whether they’re making kitchen cabinets for Lowes or pots and pans for KitchenAid.
In other words, it is not a matter of putting widgets and office furniture in a pod and shipping it across the Pacific Ocean.
To bring the supply chain back to the United States would, in most cases, require hefty capital expenditures — entire new factories, or additions to existing ones. It means any profit companies are counting on due to lower costs in China would be erased as they shift gears out, spending millions of dollars more to do so. It’s a headache. And it’s one reason why businesses and Wall Street hated the trade war; it required them to redo the math. Nobody likes homework on the weekends.
But if the U.S. economy remains only partially opened in the busy summer months, then some sort of “new deal” like public-private partnership may be needed to get the country out of an even steeper recession.
Getting some of them to manufacture in the U.S. is one possibility.
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(A very BIG possibility and one that would strike a major blow against what has been China’s decades-long move to consolidate the vast majority of global production. This in turn would return hundreds of thousands, perhaps even millions, of jobs to the U.S. that would mark a tremendous resurgence in the “Made in America” label that would fit quite nicely with President Trump’s now longstanding “America First” position.
Win-Win.)
http://dcwhispers.com/trump-administration-eyes-major-economic-actions-against-china-following-coronavirus-panic/
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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