Posted on 08/09/2019 12:59:08 AM PDT by cba123
President Donald Trump on Thursday took a step closer to sparking a currency war in the escalating conflict with China, saying he is not happy with the strong US dollar.
Trump has pursued a policy of maximum pressure, including subjecting all Chinese goods to punitive tariffs as of September 1, and accusing Beijing of manipulating its currency to gain a competitive edge.
In a move that breaks with decades of US policy, Trump on Thursday seemed to call for a weaker dollar to help American companies compete.
(please see link for full article)
Pretty long bit, not quoted here.
You mean, America might just compete?
For the first time, on HOW LONG ??
Wow.
Trump is just making noise about the currency. It’s out of his control. I completely agree with him about how the Fed is being mis-managed but I’m not sure taunting them helps his cause. But, who knows...he seems to get a lot done through shear force of will.
Make that “sheer” not “shear.” I knew that didn’t look right when I wrote it.
When you look at his reach on twitter and facebook, he can get a lot of people to put a lot of pressure on his target very quickly.
Well, keep raising the tariffs. The media is hysterical anyways. When did a country not lower their currency when it became less competitive... Italy did it all the time... oh wait, that is now illegals amongst globalists to do, Italians must be pegged to the Euro...
Sheepishly, I have to admit I missed it until you corrected it.
Well, shear actually works OK too :-)
shear/SHir/
verb
cut the wool off (a sheep or other animal).
break off or cause to break off, owing to a structural strain.
noun
a strain in the structure of a substance produced by pressure, when its layers are laterally shifted in relation to each other.
““He really is in a kind of a box, because they’re not going to do what he wants and there’s not an easy way out,” he told AFP.”
Okay, what about denying China access to US markets? We are 18% of their exports. Suddenly, they would have a huge excess supply which would drive down prices across the board for them. The disruption would kill their economy. US trade with China is already being hampered. Having said that, they are our third largest trading partner after Mexico and Canada. The question is, who can stand it longer. I think the US can. Trump has to make the case that it’s win now or forever end up financing China’s military expansion.
Why not set up, say, three teams to war game the issue. Each of the teams would be a complete war game with finance, trade, voters and military representatives. See if there is a potential winning scenario.
I think you’re correct. The economics are creating instability inside China. Many Chinese got a taste of the good life.
h, how DARE America want a level playing field in trade....why the NERVE!!
For the sake of arguent, to whom is the President’s message directed?
To make their products competitive in spite of the tarrifs, China devalued.
Thump can up tariffs again or he can jawbone the devaluation of the US$. That will make the China devaluation still uncompetetive.
China can devalue again.
Repeated devaluation after being double teamed with tariffs and $ devaluation cna be economy wrecking
Just an axtrapolated thought
Here is a thought. The Chinese artificially devalue their money. Americans buy it up. Latter when it rises turn it in for profit. That is a patriotic thing to do. In agovernment financial war money if the weapon! ARM YOURSELF!
China’s devaluation is not pain free. It leads to bad inflation. What do Marxist countries do when prices start to rise?
They institute price controls.
And thus begins the path to Venezuela.
Perhaps someone can explain how I’m wrong here, but here are my thoughts.
If you devalue your currency, doesn’t that make it worth less overseas? Wouldn’t that mean everyone holding dollars around the world would be able to buy less with them?
Couldn’t that cause flight from the U. S. dollar?
We are only able to support our excess spending due to people’s trust in the value of the dollar, and their wish to hold them.
How does that work domestically?
Would everything we buy cost more?
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