I’m with Trump and we do let our trade partners like China get away with too much, but this sequence doesn’t really demonstrate his larger point, IMO.
We import four times as much from China as we export. When they devalue, it helps the importers, and hurts the exporters. It isn’t uniformly good or bad.
Exactly. Stock markets correct. It’s part of a healthy economic process.
People seem to say all sorts of things when the market corrects. And I will say that in some instances, like an Obamadorq move, some of them might be warranted. Most times they aren’t.
China's currency is going to be over-valued no matter how much they devalue it. By definition, the currency of a country with a closed, state-run economy is pretty much worthless.
If anything, this move by the Chinese government should end up working in our favor -- by demonstrating to global firms that their Chinese assets aren't worth sh!t. Caterpillar, for example, has more than two dozen plants in China -- and every time China devalues the yuan, the value of those assets (as measured in U.S. dollars) gets marked down. This is one of the factors in the U.S. stock market correction that hasn't gotten a lot of attention.