Leading up to the latest round of tariffs against $200 billion worth of Chinese goods, mainstream political pundits played a curious game. They suggested that President Trump will somehow demonstrate restraint, that he wasn’t intending to engage in a full-on trade war. After all, Chinese investments represents big dollar signs for us too.
But all objective indications foretold the present path we’re traversing. For one thing, Trump has consistently vocalized his “America First” message. Inherent in that argument is the idea that we must suppress “the others,” namely, the Chinese. Both during the campaign trail and in the White House, Trump had repeatedly blasted the Asian powerhouse.
Naturally, China stocks fell under a cloud of doubt, even as most had breakout performances in 2017. The issue was that despite the bilateral positives associated with Chinese investments, Trump valued nationalistic sentiment more so than money. That’s incredibly ironic for someone who once hosted the acclaimed TV program, “The Apprentice.”
So while it’s jarring that Trump would take harsh measures against China that will hurt our economy, it’s not surprising. Yes, he is a businessman at heart, and going after Chinese investments with severe tariffs is bad for business. But in the longer run, the move is a necessary measure to protect American interests.
Chinese Investments No Longer a Sentimental Panacea
The other irony I can’t ignore is this: the very people who voted for Trump were the same ones pushing Chinese investments. These folks gleefully welcomed the fall of the American empire while they hoarded precious metals, waiting for their yellow saviors.
This scenario might have happened were it not for one crucial detail: the yellow-haired one told them to take a hike. Trump’s administration will play by its own rules, as evidenced by the increasingly-harsh tariffs. And now, China stocks no longer represent safe havens. Instead, they’re dangerous money.
Those who previously supported Chinese investments now have to rethink their thesis. Under the Obama administration, it was easy to believe that China stocks were the future. The U.S. had significantly lost its standing and respect from the world’s eyes.
Now, Trump is restoring pride in the American way. But in doing so, he revealed America’s ultimate trump card, no pun intended. Our economy isn’t built on worthless fiat, but rather, the impervious strength of our military industrial complex.
You see, we can get away with having a bully as President because no one is going to stand up to us. Perhaps the ultimate irony is that your money was safest here all along.