[Red] China blinks first. Now US stocks are bouncing back

CNN ^ | 08/06/2019 | Anneken Tappe

[BenLurkin]

China priced the yuan's reference rate at 6.9683 to the dollar on Tuesday, a hair above the key 7:1 ratio to the US dollar. Although that was the weakest level for the yuan in 11 years, many Wall Street investors feared China would price the yuan below that psychological 7:1 barrier.

The managed yuan continued to slide Tuesday, but the pace of its decline slowed. One dollar last bought $7.0200 yuan in China, anld 7.0490 yuan in the offshore market, where the currency trades more freely

China devalued its currency on Monday, leading it to fall below a key threshold that had last been breached during the financial crisis. Global stocks sold off in response and the Dow, S&P 500 and Nasdaq Composite logged their worst day of 2019. The Nasdaq was the worst hit, because tech stocks would be hit particularly hard by an escalation in the trade war.

[central_va]

As far as agricultural products go, we do. This sector produces MUCH more than the American public can consume on it's own.

Wow, sound trade and industrial policy has been held hostage for WAY too long by subsidized, and IMO pampered, farmers that represent 2% of the workforce and 5% of the US GDP. Even in "heavily agricultural" Iowa manufacturing there is 3.5 times as large as agriculture.

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Agriculture, food, and related industries contributed $1.053 trillion to U.S. gross domestic product (GDP) in 2017, a 5.4-percent share.

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However, as a direct result of falling commodity prices, in 2016, the contribution of farm production to U.S. GDP fell to $136.7 billion, down 6 percent from 2015, and the lowest level since 2010. As a share of the total U.S. economy, the farm contribution was less than 1 percent and the lowest level since the series was first recorded in 2007. Importantly, farm-level GDP is down nearly 30 percent from the 2013 record of $187 billion, and after declining for three consecutive years, the farm share of agricultural GDP, at 13 percent, is at the lowest level since the series was first recorded in 2007, Figure 1.

[metmom]

Imagine that......

For all the criticism Trump got, he knew, again, what he was doing.

And now it will be dropped into a black hole of forgetfulness, never to see the light of day again as they focus on something else Trump has allegedly done bad or wrong.

[Texan]

So, you point is.....just completely wipe out the entire agricultural sector? Which would in turn wipe out all the related agricultural machinery and agricultural support sectors as well? 25% of farm products are exported each year.

Agriculture aside, 39 million American jobs depend on international trade and that trade is critical to the success of many sectors of the American economy.

98% of the roughly 300,000 U.S. companies that export are small and medium-sized businesses, and they account for one-third of U.S. merchandise exports.

You may think that America can survive trading only within our borders but it would be a far poorer America.

[nathanbedford]

The real questions are, what is China doing and why?

China's obviously buying market share, or, more accurately, protecting market share to compensate for the tariffs with lower prices. Why is China doing this? I believe it is motivated by more than the obvious need to hold onto its market share in exports, it is a signal that China is not going to come to an agreement before 2020.

I think it tells us that China believes that its downside risks of inflation and loss of reserves can be managed very easily in this command economy, at least until 2020. It tells us that China is keeping its factories open by reducing prices so that civil unrest-the biggest chronic fear of China's elite-can be managed, at least in the short term.

Most importantly, this move tells us that China is not in this game as a game but as a existential war. I think they know they can survive very well until 2020 and if Trump is reelected they can go on until 2024.

[DungeonMaster]

Exactly. Their forced human organ harvest program should make them the pariah of the world.

Oh man I either forgot or never even knew about that one!

[numberonepal]

The boys over at Edge of Wonder did a fantastic video serioes on Communism. In that series they address the Chi-coms organ harvesting.

Organ Harvesting: Darkest Era of China’s Deep State [pt1]
https://www.youtube.com/watch?v=mVbuvlPi3tg

Organ Harvesting: Clinton, & China’s Hospitals from Hell [Pt2]
https://www.youtube.com/watch?v=qrgcyBERJ8M

To get to those Chi-com videos it’s best to check out their series on communism first. Episode 5 below gets into the Chi-coms.

Why Communism is the Deep State’s Mind Control Cult [Ep1]
https://www.youtube.com/watch?v=Q3exFTTQHFY

The Secret Societies Behind Communism [Ep 2]
https://www.youtube.com/watch?v=YitTdmzFF90

Socialism: An Inconvenient Truth [Eps 3]
https://www.youtube.com/watch?v=uglrjNA4DGE

Russian Revolutions: Deep State Communism Hidden Origins [Eps 4]
https://www.youtube.com/watch?v=fY6nhEU0uXM

Chinese Communism: Deep State Evil Incarnate [Ep5]
https://www.youtube.com/watch?v=Led0Un9uiIc

[Vermont Lt]

I wonder what Xi’s trading account looks like.

Sunday night. “Wong, I am selling the Dow short. How about we devalue just a tad.”

Monday afternoon: “Wong, I am all set now. Put it back where it was.”

[DungeonMaster]

Thanks!!!

[Chickensoup]

Exactly. Their forced human organ harvest program should make them the pariah of the world.

__________________

Why? This is not something that the elite would ever be against. It benefits them.

[MacNaughton]

6 China is loathsome.

10 Exactly. Their forced human organ harvest program should make them the pariah of the world.

25 Oh man I either forgot or never even knew about that one!

29 Why? This is not something that the elite would ever be against. It benefits them.