China’s Yuan Devaluation Poses a Major Reelection Risk to Donald Trump

Intelligencer ^ | 08/06/2019 | Josh Barro

[teeman8r]

confronting china about their currency manipulation was bad for trump’s reelection, now china’s deevaluation of their over priced currency is bad for trumps reelection... can it be both ways bad for trumps reelection?

[SeekAndFind]

CHINA HAS ONE ADVANTAGE WE DO NOT HAVE, WHICH IS THIS -— THEY PLAY THE LONG GAME WHILE OUR ELECTIONS GO IN CYCLES.

Sure, their economy will be hurt as well, but what do they care? Can their party be voted out of office? Nope. They are a ONE PARTY system where the Communist Party will be in power whether their economy is good or bad.

What about us? We hope that a recession will not occur during Trump’s tenure. If God forbid, the economy takes a bad turn next year as a result of this lingering effects of the trade war, there is no guarantee that Trump will be re-elected ( factor in voter fraud ).

So, China can wait us out hoping that with their interference in the world economy, it will cause things to turn bad for us ( never mind them, they don’t worry about the fate of their party ) which will result in a change of American administration, which for China, hopefully will result in a more docile President they can deal with ( remember, Joe Biden was already in their pockets when he was VP ).

[central_va]

Trump in a landslide. More tariffs please!!!

[Macoozie]

Take the medicine.
This is the fight that needs to be fought.

The RINO squishes will give in when they come back, so don’t worry Globalists, if we don’t win this in the current timeline, the world will be shiite anyway.

Roll MAGA, roll!

[Macoozie]

The other piece to this is that China is not one country.
It’s like the old Soviet Union.
A bunch of cultures hammered together by force.

With a little push and a shove, it would split into 3 to 6 autonomous regions.

[Skywise]

No it wont.

Now if he kowtows to the anti-gun crowd he’ll lose in a heartbeat as will the GOP.

[CincyRichieRich]

Uh, no, actually it doesn’t. We’ll cling to our guns, bibles and vote for him.

[House Atreides]

China STUPIDLY walked right into TRUMP’S TRAP. They manipulated their currency thus providing proof they engage in currency manipulation. They have provided Trump what he needs to get changes made in how the WTO and IMF treat China. I predict that, as a result of Trump’s actions, China will be recategorized from being designated a “developing nation” (which is ridiculous for the world’s 2nd largest economy). Losing that will also cost China all the special considerations it is currently UNFAIRLY allowed because of that categorization.

WAY TO GO MR. PRESIDENT! I’m not yet tired of WINNING.

[sarge83]

Trump has to push China to the limit in two terms because the GOP and the Democrats are in cahoots with the chicoms and sold their souls long ago. He must break them.

[blueplum]

The title is wishful thinking. The United States owes no one an apology for trying our best to maintain our place as the number one world power. Deplorables know that Trump is dealing with China (and the rest of the world for that matter) like nobody else can or would or has. China is just one of the nations playing games and counting on our elections securing their own dominance. Well, we’re not going to let them win that game because we are going to keep Trump firmly behind the Resolute Desk.

[Mariner]

“Back in May, I wrote that Trump’s China tariffs will only “work” if Americans pay them.”

Prima facie proof the author is an idiot that nobody should listen to.

Tariffs only work IF they reduce demand, not if people keep demand constant and just pay the tariff.

So raise the tariffs as high as necessary to reduce demand.

We’re in the fight now now. Committed. We must prevail, or surrender.

We cannot lose and remain a sovereign nation.

[Buckeye McFrog]

Uh, no, actually it doesn’t. We’ll cling to our guns, bibles and vote for him.

There IS NO OTHER OPTION. Not unless you're willing to be governed by AOC and The Squad.

[Aevery_Freeman]

Trump, quit picking on Xi and the People’s Bank of China.

They're nice guys; they never did anything to us.

[Dogbert41]

“There IS NO OTHER OPTION. Not unless you're willing to be governed by AOC and The Squad. ”

Governed or murdered? Asking for a friend...

[Paladin2]

"There IS NO OTHER OPTION. Not unless you're willing to be governed by AOC and The Squad. "

If so, we'll all be Squaw-d.

[Intolerant in NJ]

That, in turn, makes American-made products relatively more expensive and hurts U.S.-based manufacturers — the opposite of Trump’s professed goal in all this...except that's not the only outcome of the tariff-devaluation game being played - cheaper goods for China means less money coming into their economy and they become a poorer country overall - we drive them into poverty if they play too long - and more important, companies now based in China leave there to avoid the cost of tariffs on their goods and head for better environments like, hard as it is to believe, Vietnam, so China loses that business base forever to come - some people call it 3D Chess.....

[Gen.Blather]

This is from the linked article below.

“How China Affects the U.S. Economy
China is the largest foreign holder of U.S. Treasurys. In May 2019, it owned $1.11 trillion in Treasurys. That’s 27% of the public debt held by foreign countries. The U.S. debt to China is lower than the record high of $1.3 trillion held in November 2013.

China buys U.S. debt to support the value of the dollar. This is because China pegs its currency, the yuan, to the U.S. dollar. It devalues the currency when needed to keep its export prices competitive.

China’s role as America’s largest banker gives it leverage. For example, China threatens to sell part of its holdings whenever the United States pressures it to raise the yuan’s value. Since 2005, China raised the yuan’s value by 33% against the dollar. Between 2014 and 2016, the dollar’s strength increased by 25%. The rise forced China to devalue the yuan. This ensured its exports would remain competitively priced with those from Asian countries that hadn’t tied their currency to the dollar. “

https://www.thebalance.com/china-economy-facts-effect-on-us-economy-3306345

[Alberta's Child]

China's move to devalue their currency is proof that Americans won't even have to pay the tariff in most cases ... because China's willing to undermine their own living standards to offset the tariff costs.

[LS]

Trump can, and wi, adjust tariffs upward accordingly.