Posted on 05/22/2019 9:23:43 PM PDT by bobk333
Tensions escalated between the United States and China when Trump wrote in a tweet on May 5 that he would increase tariffs on $200 billion Chinese goods to 25 percent from 10 percent. Trump accused Beijing of backtracking on its commitment to deliver structural reforms.
The dispute revealed the vulnerability of China’s stock market, with the Shanghai Stock Exchange Composite Index falling nearly 6 percent on May 6, the day after Trump’s tweet. The stocks haven’t recovered since then.
The total outflow from Chinese stocks by nonresidents since tensions escalated reached $6.2 billion, according to IIF, which has tracked capital movement in emerging market equities on a daily basis since 2010.
(Excerpt) Read more at theepochtimes.com ...
This is a war to stop an evil nemises, just like we stopped Germany in WWII and the Soviets in the cold war.
It has to be done.
Does that mean ours goes up?
Next time around the window for sneaking up on us will be easier to get through. An 8 year sleepwalk through 2 Clinton/Obama terms may do us in. Electorate will not be informed enough. Bush was no help either.
Not necessarily, if people are scared of US equities they can just pile into bonds.
Taiwan
Justin Amash is deeply saddened.
The very big problem, is that a huge set of Americans bought into China, at 49% ownership. Or more accurately, they sold out.
Lots, and lots, and lots of American minority ownership, is now Chinese. A LOT.
For the last 30 years, everyone has been entirely sold out to China.
There is a HUGE amount of Chinese supply of everything. Everything.
Trump, this is why you won.
For real. Act.
From the article:
“Recent outflows are different than what was observed during the 2015 market crash. The capital that left China went to other emerging markets in 2015. However, this time, the money is flowing into developed markets, bonds, and crypto assets, Fortun said.”
There are different effects:
1) Where does the money fleeing Chinese stocks go? It could go into the U.S. stock market or other markets, it could go into other assets like gold, real estate, etc, or more likely into something safer like bonds.
2) How much will the U.S. stock market and economy be hurt? In the short term, we will be hurt; but our economy is so strong, we won’t notice nearly as much as the Chinese
THE CHINESE ECONOMY IS FRAGILE. They grew too fast. It’s like the fragile building boom in Beijing and Shanghai. Go outside many of the impressive looking sky scrapers and smell the sewage emanating from the shoddy sewage systems that were built too quickly.
The Chinese don’t realize how fragile economies are and how sensitive they are to downturns. They could easily fall into a free fall, a downward spiral that grows and grows until they hit rock bottom. Once it starts, people panic, and there is not much the government can do. A Chinese crash is actually the most dangerous risk to the U.S. and world economy, but it is how we win.
As Margaret Thatcher said to George Bush, don’t get wobbley on us, President Trump. This is a serious fight and the best thing to do is to hit them hard right on the nose and keep hitting them hard until we win.
IT HAS TO BE DONE. The Chinese are dangerous. They are arrogant and tell the world they are going to dominate us both economically and militarily by 2025.
They currently have 1.5 to 3 million Muslims from their northern territories in concentration camps. They are aggressive militarily in Asia. They are supporting rogue nations around the world. They are stealing technology. They had completely one sided trade barriers against foreign companies.
Evil is not too strong a word for what China is doing.
As usual, ignore the mainstream media’s coverage of the trade war, especially the Europeans. Many of them just want Trump to look bad. They focus on the little bit of pain we might experience and completely ignore why the war is necessary.
Maybe in some cases, sewage is the least of their worries. They have to make sure the whole apartment building, doesn’t come crashing down on their heads. 😁
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