Today’s quote comes to us from financial guru Jim Cramer.
Mr. Kramer, while on CNBC’s “Squawk Box” show, was trying to explain to host Melissa Lee why President Trump’s hardline China trade policy made sense. Here is how he framed it:
“Look, the Chinese are rapacious, the Chinese they’ll do anything to stop us, the Chinese are trying to take our intellectual property. At least we have a president that’s going to do something about it even if we don’t like him and I hear that over and over again and I keep listening to talking heads who act like, you know what, we’re at the mercy of China and we better start realizing we’re at the mercy of them but the business people don’t feel like that at all.
The game over thing is starting to really bore me. Yes there are some retailers that are going to have to raise prices a little but you know what, the Chinese have been eating most of these tariffs because they want the business. Why are they suddenly going to stop? You know, the Chinese are companies. It’s bad capitalism that they use. They cannot dictate to us. We can dictate to them because they don’t have a market for this stuff. But again I hear people come on and they say that we are a paper tiger. We’re not. They need our business. They will have to cut prices of what they give to us. Why is it, Melissa, that that’s never talked about?
The short form? “China has one hell of a lot more to lose in a trade war than we do. President Trump knows it, and, at least as importantly, China knows it. That’s why Trump is doing it and that’s why it should be a winning strategy.”
Jim Cramer wins Quote Of The Day honors, because he is 100% right about this…
…which is a lot more than I can say about so many of the policy’s critics, who would rather subordinate our economy to an enemy nation for short-term gain than substantially benefit it for the long term.