Trump’s China Shock

104 views 1 replies
Reply to Topic
freemexy

Age: 2019
Total Posts: 0
Points: 10

Location:
,
I didn’t know that the Dow was going to drop 750 points, so my latest column is El Paso-related. Probably the right choice anyway, because
US-China is moving so fast that anything in the print paper would be out
of date.To get more china breaking news, you can visit shine news official website.
But it does look as if I should try to explain (a) what I think is happening (b) why the markets are going so nuts. By the way, given
Mnuchin’s declaration just a few minutes ago that China is a currency
manipulator, tomorrow’s market action should be … interesting.
So here’s the thing: neither Trump’s tariff announcement last week nor, especially, the depreciation of China’s currency today should
objectively be that big a deal. Trump slapped 10 percent tariffs on $200
billion of Chinese exports, which is a tax hike of 0.1 percent of US
GDP and 0.15 percent of Chinese GDP.
In response, China let its currency drop by about 2 percent. For comparison, the British pound has dropped around 9 percent since May,
when it became clear that a no-deal Brexit was likely.
So why are these smallish numbers such a big deal? Mostly because we’ve
learned things about the protagonists in this trade conflict, things
that make a bigger, longer trade war seem a lot more likely than it did
even a few days ago.
First, Trump really is a Tariff Man. Some naïve souls may still have been hoping that he would learn something from the failure of his trade
policy so far. More sensible people hoped that he might do what he did
with NAFTA: reach a new deal basically the same as the old deal,
proclaim that it was totally different, and claim a great victory.
But no: it’s pretty clear now that he refuses to give up on his belief that trade wars are good, and easy to win; his plan is to
continue the beatings until morale improves. What may have looked like
temporary tariffs designed to win concessions now look like permanent
features of the world economy, with the level of tariffs and the range
of countries facing them likely to expand over time.
Second, China is clearly signaling that it’s not Canada or Mexico: it’s too big and too proud to submit to what it considers bullying. That
slide in the renminbi wasn’t a concrete policy measure as much as a way
of saying to Trump, “talk to the hand” (no doubt there’s a good Chinese
expression along these lines.)
Incidentally — or maybe it’s not so incidental — while there are many valid reasons to criticize Chinese policy, currency manipulation isn’t
one of them. China was a major currency manipulator 7 or 8 years ago,
but these days if anything it’s supporting its currency above the level
it would be at if it were freely floating.
And think for a minute about what would happen to a country with an
unmanipulated currency, if one of its major export markets suddenly
slapped major tariffs on many of its goods. You’d surely expect to see
that country’s currency depreciate, just as Britain’s has with the
prospect of lost market access due to Brexit.
In other words, the Trump administration in its wisdom has managed to accuse the Chinese of the one economic crime of which they happen to be
innocent. Oh, and what are we going to do to punish them for this
crime? Put tariffs on their exports? Um, we’ve already done that.
So how does this all end? I have no idea. More important, neither does anyone else. It looks to me as if both Trump and Xi have now staked
their reputations on hanging tough. And the thing is, it’s hard to see
what would make either side give in (or even to know what giving in
might mean.)
Posted 07 Aug 2019

vipinkumar says
We are Professional Plumbers in Toronto with experienced plumbers, they build us Toronto plumbing company, we have many years of experience in solving all kinds problems of Drain Repair and Sewer Replacement, Basement Waterproofing, Drain Cleaning, Water Line Repair, Sump Pump Installation. Hire plumbing company Toronto or Plumber Toronto for plumbing work today! Our company is located in Mississauga but we work with clients in all GTA including Toronto, Etobicoke, North York, Mississauga, Scarborough, Oakville, Thorn Hill, Vaughan and Brampton.
Our team of devoted and because we work for perspective. One thing you have to pay attention to is that whether you go on working with us or not, we’ll consider your detail and it’s absolutely free Hire best plumbing companies in Toronto Today!
Of course you have seen multiple Plumbing Service Toronto advertisements. So how can you find the best Plumber in Toronto near me among all the offers and discounts out there? Follow our advice and you will never have to deal with a “cowboy” plumbing companies in Toronto in your life.
The trustworthy and loyal plumbing company. Plumber mississauga  has representatives all over the town so you can have a Plumber service Toronto near me in your neighborhood within a few hours. Try out our Plumbers Toronto services all you need is to call the hotline and we shall make sure the best Plumber near me arrives in a few hours. Plus we work 24/7 so you can have professional help whenever and wherever you need it. The Toronto Plumbing Group takes the customer loyalty seriously and we have thousands of references to prove it.
Call girls in Gurgaon | Best and affordable Gurgaon Escorts 8586890809
Call @ 8586890809, We serve for the VIP clients who are seeking the most astonishing, delightful and splendid model-independent Call Girls in Gurgaon
https://rishikeshgirls.in/call-girls-in-gurgaon/ 
https://www.oyobook.com/
Call girls in Rishikesh 9999416576 Independent Escorts Service Rishikesh
Are feeling exhausted and tired without Call girls Rishikesh 9999416576 Book High Profile Call girls in Rishikesh, Escorts in Rishikesh VIP russian escort.
https://rishikeshgirls.in/
High Profile Call Girls in Gurgaon | 8586890809 | Escorts in Gurgaon
Beautiful High Profile Call Girls in Gurgaon. As escorts in Gurgaon Service offer satisfied service for you & get a perfect choice
https://muskangirlsdwarka.in/high-profile-call-girls-gurgaon/
Best escorts in Gurugram | 9990069753 | high profile call girls Gurugram
We offer our great VIP deals independent escorts Gurugram & high profile call girls Gurugram who will give you deep lusty lovemaking session.
https://muskangirlsdwarka.in/gurgaon/
VIP call Girls in Gurgaon | 8586890809 | Independent escorts
Best high profile call girls in Gurgaon 8586890809, beautiful call girls Gurgaon & independent Escorts in Gurugram, Haryana. Hire sexy girls models Gurgaon.
https://www.singledate.in/
Call girls in Gurgaon Call @ 8586890809 & get bets Gurgaon Escorts
100% Authorised call girls in Gurgaon booking. Call 8586890809 for booking escorts in Gurgaon, get best Call girls in Gurgaon
https://www.singledate.in/call-girls-huda-city-center/
Call girls in Dwarka Book now 9990069753 Dwarka Escorts Service
We are hot & sexy Independent Escorts in Dwarka call 9990069753 for VIP Call girls in Dwarka, feel deep sex @ High Profile call girls Dwarka.
https://muskangirlsdwarka.in/
Escorts in Gurgaon | Book 9990069753 Gurgaon Escorts
We are VIP & High profile Escorts in Gurgaon best service available at a doorstep. If you want to hire Gurgaon Escorts.
https://muskangirlsdwarka.in/sikanderpur-gurgaon/
Posted 07 Feb 2020

Reply to Topic