Posted on 08/05/2019 9:35:04 AM PDT by NRx
A devalued currency nearly makes a tariff a non-issue.
This will get their attention: Close our ports to all Chinese goods and lets see who blinks first. Suspend all Interest payments to the U.S. Bonds they hold and let them burn.
The yuan fell because the Bank of China stopped supporting its value. That policy was based on trying to make the yuan broadly reliable and accepted as a trade and reserve currency. In effect, the Chinese have decided that goal matters less than countering and punishing the Trump tariffs.
“The USA is saddled with the FED, a construct that should never have happened, why would any government allow it’s currency to be controlled and priced by an outside group of bankers?”
Better bankers than politicians, which isn’t saying much.
Hate to pour cold water on your woodie there Mikey; but America is fighting back for the first time and winning. Manufacturers are running away from China which is being exposed as a paper tiger.
There’s something here I’m not understanding. It’s a 10% tariff. It doesn’t matter if the widget is valued at 20 yaun or 40 yaun back in China, it’s still 10% of whatever it is.
The only way the Chinese could fudge around the tariff would be to have one of their front companies in the US import the item (declaring it to be worth $X), and then re-selling it to the ultimate buyer for much more.
The Fed doesn't determine the value of the USD.
The market does and the Fed's setting of the discount rate is a relatively minor part of the equation.
Chinese Government centrally-manages the whole currency and trade process = the entire economy.
If you want to precipitate a financial crisis that would make 2008-09 look like a walk in the garden and plunge the world into a second great depression, your suggestion sounds great. Otherwise defaulting on our sovereign bonds would perhaps not be a great idea.
Quit thinking about "them" and think about US(A).
With #1 Lemon T-Bills you get egg roll and wanton soup.
They have NO hand to play. We're their primary customer/client.
Without us they're dead. Without them, we just buy cheap shit from somewhere else.
OR MAKE IT HERE!!!!
The problem with raising tariffs on China is an hour later want to raise them again.
Even better.
Bingo!
China needs our money far more than we need their junk in our thrift stores.
I read label when shopping and avoid “Made in China” when ever I can. Especially anything that has to do with food preparation.
China is waiting for election 2020 and listens to the US media saying Trump won’t win
They want a beta male or a woman to win in 2020 instead
so where is the twitter army saying buy MADE IN THE USA
also there should be everyone eat meat on Fridays or something to help the farmers..(more cows..more feed grain needed)
A Default is coming sooner or later. I said quit paying Interest only on the what the Chinese Hold.
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