Re:Morgan Stanley Slashes Worst-Case Price for Tesla to $10
by djsweet on Wednesday May 22, 2019 @12:49AM
(#19977865)
Forgive my ignorance, but how does the trade deficit in favor of China necessarily entitle China to acquire ownership of US companies? The best explanation I could think of is that China is using the liquid capital obtained by US trade to turn around and purchase ownership stakes in US companies the same way pretty much anyone within the US would, which means there’s no special arrangement outside of China having money to spend and the US being in need of investments.
If my hypothetical explanation is correct then the implicit goal of “fixing the deficit” ends up reading as ultimately somehow ensuring China has less money, and just that China has less money, when I think that the legitimate national security concerns around the trade deficit would be better addressed by some actual investment oversight.
But, again, maybe there’s something about the deficit entitling China to stakes in US companies that I’m not seeing.
Re:Morgan Stanley Slashes Worst-Case Price for Tesla to $10
by godzillabrennus on Tuesday May 21, 2019 @11:57PM
(#19977625)
Then old white people voted to change that and Trumped the status quo.
This is something people don’t understand about the trade deficit. Most people think the trade deficit means that China sends the US way more stuff than the US sends to China.
That is not true. Of course China doesn’t send stuff without asking for things in return. China sends stuff and then has the right to buy pieces of American companies and future cash flows of those companies (and government entities).
The US is getting a bunch of stuff and giving away little pieces of it’s future. This is just a visible example