US Manufacturing contracts for the first time since 2009.

[theeedude]

https://www.cnn.com/2019/08/22/economy/manufacturing-pmi/index.html

American manufacturing activity is slowing as rising tariffs have made materials more expensive. The sector shrunk for the first time since September 2009, according to IHS Markit.
Markit's flash manufacturing purchasing managers' index for August fell just below 50, indicating a contraction. It was a 119-month low for the index. A number below 50 means a sector is contracting, while a number above 50 denotes growth.

Tired of winning yet?

 

[Mai72]

Get ready for the next recession. And, with student loan debt, people living paycheck to paycheck, young people unable to buy homes, average car note being $500 for 6 years, and automation threatening low tier jobs we are in for some very difficult times. Maybe I'm wrong.

 

[kage69]

Sorry America, you enjoyed the Obama recovery long enough. The GOP swamp isn't content with the pace of wealth concentrating on their end. Please wait for the looting spree to end before getting another Democrat president and Congress to fix the mess. Thanks.

 

[s0me0nesmind1]

Manufacturing will never come back. Everyone with half a brain knows this. Everyone knows manufacturing automobiles in Mexico will be always have cheaper labor which easily compensates for the transportation costs. Everyone knows labor for consumables will be cheaper in China/Taiwan/India/<insert developing country> and shipped here to the states.

What DOES need to happen though is that manufacturing DOES need to come back here to the US in the form of automation.

At minimal, we have to fight against China with their stealing of patents and American ingenuity. I hate to burst your bubble, but it is working. Is it the best way? Maybe not, maybe so. Either way China can fuck off. I would rather see our economy take a slight knock in order for it to disrupt their government and labor abuse for the betterement of other developing nations. If you think the American consumer will notice in the slightest, you're sadly mistaken. The trade war has been ongoing for over a year now... and you know... AAAAAAANYDAY now the consumers will notice and stop emptying their wallets... Aaaaaaaaaaaanyday now...

If you're one of the ignorant fools that just says "DUR HUR AMERICUHNS WILL PAY FOR IT DERRRR!" then you simply have no clue as to how basic global economics work today. If tarrifs are 100% bad and will only result in a negative loss (as librools love to portray it as), then why is China answering our tarrifs with tarrifs of their own? The answer is simple - they are making their cheap products more expensive in an effort to prop up and help competing products (be it domestic or other international competition).

Global economics is very similar to electricity - it naturally takes the path of least resistance.

https://www.cnbc.com/2019/08/20/home-depot-says-suppliers-are-moving-manufacturing-out-of-china.html

Home Depot says suppliers are moving manufacturing out of China to avoid tariffs

https://www.cnbc.com/2019/07/18/mor...production-out-of-china-due-to-trade-war.html

More than 50 companies reportedly pull production out of China due to trade war

 

[sandorski]

Manufacturing will never come back. Everyone with half a brain knows this. Everyone knows manufacturing automobiles in Mexico will be always have cheaper labor which easily compensates for the transportation costs. Everyone knows labor for consumables will be cheaper in China/Taiwan/India/<insert developing country> and shipped here to the states.

What DOES need to happen though is that manufacturing DOES need to come back here to the US in the form of automation.

At minimal, we have to fight against China with their stealing of patents and American ingenuity. I hate to burst your bubble, but it is working. Is it the best way? Maybe not, maybe so. Either way China can fuck off. I would rather see our economy take a slight knock in order for it to disrupt their government and labor abuse for the betterement of other developing nations. If you think the American consumer will notice in the slightest, you're sadly mistaken. The trade war has been ongoing for over a year now... and you know... AAAAAAANYDAY now the consumers will notice and stop emptying their wallets... Aaaaaaaaaaaanyday now...

If you're one of the ignorant fools that just says "DUR HUR AMERICUHNS WILL PAY FOR IT DERRRR!" then you simply have no clue as to how basic global economics work today. If tarrifs are 100% bad and will only result in a negative loss (as librools love to portray it as), then why is China answering our tarrifs with tarrifs of their own? The answer is simple - they are making their cheap products more expensive in an effort to prop up and help competing products (be it domestic or other international competition).

Global economics is very similar to electricity - it naturally takes the path of least resistance.

https://www.cnbc.com/2019/08/20/home-depot-says-suppliers-are-moving-manufacturing-out-of-china.html



https://www.cnbc.com/2019/07/18/mor...production-out-of-china-due-to-trade-war.html

Why would Automated production in the US be better than production in China?

 

[s0me0nesmind1]

Why would Automated production in the US be better than production in China?

1. Morals - China abusing human labor

2. Not supporting an oppressive government.... and a clear enemy of the US. They (along with Russia) are a clear enemy of the US that is ramping up military production. It's pure stupid to not combat this.

3. Automated production has its jobs as well - taxation benefits, jobs, robot productions, etc...


Or I mean, do you want to prop up China more and their oppressive regime?

 

[sandorski]

What makes China a "clear enemy"? It seems to me that the US is giving China no choice in the matter and that increased Military spending is a necessity for them. Not sure about #1, at least in comparison to other Low Wage nations.

 

[Mai72]

Manufacturing will never come back. Everyone with half a brain knows this. Everyone knows manufacturing automobiles in Mexico will be always have cheaper labor which easily compensates for the transportation costs. Everyone knows labor for consumables will be cheaper in China/Taiwan/India/<insert developing country> and shipped here to the states.

What DOES need to happen though is that manufacturing DOES need to come back here to the US in the form of automation.

At minimal, we have to fight against China with their stealing of patents and American ingenuity. I hate to burst your bubble, but it is working. Is it the best way? Maybe not, maybe so. Either way China can fuck off. I would rather see our economy take a slight knock in order for it to disrupt their government and labor abuse for the betterement of other developing nations. If you think the American consumer will notice in the slightest, you're sadly mistaken. The trade war has been ongoing for over a year now... and you know... AAAAAAANYDAY now the consumers will notice and stop emptying their wallets... Aaaaaaaaaaaanyday now...

If you're one of the ignorant fools that just says "DUR HUR AMERICUHNS WILL PAY FOR IT DERRRR!" then you simply have no clue as to how basic global economics work today. If tarrifs are 100% bad and will only result in a negative loss (as librools love to portray it as), then why is China answering our tarrifs with tarrifs of their own? The answer is simple - they are making their cheap products more expensive in an effort to prop up and help competing products (be it domestic or other international competition).

Global economics is very similar to electricity - it naturally takes the path of least resistance.

https://www.cnbc.com/2019/08/20/home-depot-says-suppliers-are-moving-manufacturing-out-of-china.html



https://www.cnbc.com/2019/07/18/mor...production-out-of-china-due-to-trade-war.html

I know that their are Chinese companies who are moving to Vietnam to avoid the tariffs.

 

[s0me0nesmind1]

What makes China a "clear enemy"? It seems to me that the US is giving China no choice in the matter and that increased Military spending is a necessity for them. Not sure about #1, at least in comparison to other Low Wage nations.

No choice? Of course there is no choice when you want to start doing offensive things like claiming artificial islands in waters that do not belong to you.... Yeah, you better start ramping up military because anyone with half a brain would understand that that is an offensive move akin to Russia annexing Crimea.

The entire continent of Europe for the most part doesn't feel the need to ramp up their military - why does China have "no choice in the matter" and that "increased Military spending is a necessity for them"?

Come on dude, think a little. China is a CLEAR fucking enemy. If WW3 were to happen tomorrow being able to determine the sides would be a no-brainer.

 

[sportage]

Naw.... the next recession wont happen before 2020's November election.
It never works any other way except during GW Bush when GW earned what he had created. And we suffered.
What will happen is Trump will lose in 2020, and a democrat will be elected and THEN Trump's recession will hit home.
And like with every other time, Fox News will blame the newly elected democrat administration for the Trump's recession and republicans will get away that. And then come 2024 the stupid people will once again re-elect republicans back into office.
So, what we have been experiencing thus far in this robust economy was actually created during Obama.
And what will hit hard after 2020 will be the Donald Trump recession.
There is always a lag. Economies never happen over night or on the day after an election.
And again like I said, the newly elected democrat president will get all the blame.

 

[K1052]

I know that their are Chinese companies who are moving to Vietnam to avoid the tariffs.

Yeah, squeezing China just pushed production to Southeast Asia. Not back to the US like Trump claims. Also won't do diddly for the trade balance that drive him insane.

 

[sandorski]

No choice? Of course there is no choice when you want to start doing offensive things like claiming artificial islands in waters that do not belong to you.... Yeah, you better start ramping up military because anyone with half a brain would understand that that is an offensive move akin to Russia annexing Crimea.

The entire continent of Europe for the most part doesn't feel the need to ramp up their military - why does China have "no choice in the matter" and that "increased Military spending is a necessity for them"?

Come on dude, think a little. China is a CLEAR fucking enemy. If WW3 were to happen tomorrow being able to determine the sides would be a no-brainer.

What do islands in Asia have to do with it? Protip: The US doesn't own the World. The US, especially under Trump, has been very aggressive towards China. Europe is seriously considering ramping up their Military at this time for similar reasons, as the US is increasingly belligerent to even its' Allies. What is clear is that the US is becoming a problem for everyone, including itself.

 

[Jhhnn]

Manufacturing will never come back. Everyone with half a brain knows this. Everyone knows manufacturing automobiles in Mexico will be always have cheaper labor which easily compensates for the transportation costs. Everyone knows labor for consumables will be cheaper in China/Taiwan/India/<insert developing country> and shipped here to the states.

What DOES need to happen though is that manufacturing DOES need to come back here to the US in the form of automation.

At minimal, we have to fight against China with their stealing of patents and American ingenuity. I hate to burst your bubble, but it is working. Is it the best way? Maybe not, maybe so. Either way China can fuck off. I would rather see our economy take a slight knock in order for it to disrupt their government and labor abuse for the betterement of other developing nations. If you think the American consumer will notice in the slightest, you're sadly mistaken. The trade war has been ongoing for over a year now... and you know... AAAAAAANYDAY now the consumers will notice and stop emptying their wallets... Aaaaaaaaaaaanyday now...

If you're one of the ignorant fools that just says "DUR HUR AMERICUHNS WILL PAY FOR IT DERRRR!" then you simply have no clue as to how basic global economics work today. If tarrifs are 100% bad and will only result in a negative loss (as librools love to portray it as), then why is China answering our tarrifs with tarrifs of their own? The answer is simple - they are making their cheap products more expensive in an effort to prop up and help competing products (be it domestic or other international competition).

Global economics is very similar to electricity - it naturally takes the path of least resistance.

https://www.cnbc.com/2019/08/20/home-depot-says-suppliers-are-moving-manufacturing-out-of-china.html



https://www.cnbc.com/2019/07/18/mor...production-out-of-china-due-to-trade-war.html

Nice rant & so what? Manufacturing is down. The Ag sector is down. The service sector is flat. Construction is down. Financials are down. It's worse internationally. Consumer spending is still strong, but they're always the last to know.

 

[brandonbull]

What makes China a "clear enemy"? It seems to me that the US is giving China no choice in the matter and that increased Military spending is a necessity for them. Not sure about #1, at least in comparison to other Low Wage nations.

I'm sure you say that about Russia as well.

 

[Vic]

Nice rant & so what? Manufacturing is down. The Ag sector is down. The service sector is flat. Construction is down. Financials are down. It's worse internationally. Consumer spending is still strong, but they're always the last to know.

The admin has been leaning on the banks to loosen underwriting standards to spur consumer spending, while at the same time refusing to provide any assurances for the increased risk of doing so. So.. not budging.
Trump is going to have to hope for aggressive rate cuts from the Fed. Which he'll probably get because the other central banks have already cut even more aggressively.