Trump to add a 5% tariff on all imports

what will all the Trumpsters be saying? (Probably it will be Obama's fault).

This will end up costing more for all Americans at a time when our economy is beginning to show some strength. It's a bad idea; even a first year Econ student would know better, and Trump supposedly graduated from Wharton.
It will slow down trade, and it will cost American jobs.

In fact, the bulk of America's money is now stashed away in offshore tax havens.

How Did China Become One of America's Biggest Bankers?
China is more than happy to own close to a third of the U.S. debt.


Owning U.S. Treasury notes helps China's economy grow by keeping its currency weaker than the dollar. That keeps Chinese exports cheaper than U.S. products. China's highest priority is to create enough jobs for its 1.4 billion people.

The United States allowed China to become one of its biggest bankers because the American people enjoyed low consumer prices. Selling debt to China allows the U.S. economy to grow by funding federal government programs. It also keeps U.S. interest rates low. But China's ownership of U.S. debt is shifting the economic balance of power in its favor.

Why Does China Own So Much U.S. Debt?

China makes sure its currency, the yuan, is always lower than the U.S. dollar. Why? Part of its economic strategy is to keep its export prices competitive. It does this by holding the yuan at a fixed rate compared to a basket of currencies, the majority of which is the dollar. When the dollar falls in value, the Chinese government uses extra currency to buy Treasuries, which increases demand for the dollar, increasing its value.

Also, China promises to redeem dollars for yuan at the fixed rate. It must keep a good supply of Treasury notes in reserve.

China's position as America's largest banker gives it some political leverage. Now and then, China threatens to sell part of its debt holdings. It knows that, if it did so, U.S. interest rates would rise, which would slow U.S economic growth. China often calls for a new global currency to replace the dollar, which is used in most international transactions. China does this whenever the U.S. allows the value of the dollar to drop, which makes the debt China holds less valuable.